Investment in Africa’s mining sector to rise: BMI – by Valentina Ruiz Leotaud (Mining.com – April 2, 2018)

http://www.mining.com/

Despite the fact that, through the enactment of new laws and regulations, local governments in Sub-Saharan Africa are starting to claim a larger share of their countries’ mineral resource wealth, BMI Research believes that investments in the region will continue to rise in Q3-2018.

In an industry overview published today, BMI presents the recent changes to the Democratic Republic of Congo’s mining code as an example of a situation that challenges all the parties involved, but that is very unlikely to cloud miners’ interest in venturing in the country.

“On March 10 President Kabila signed into law a new mining code that will raise royalties on minerals across the board, as he tries to shore up the support and funding need to retain power.

While these changes pose downside risks to the DRC’s investment profile, we do not expect them to impact our positive growth outlook for the country’s mining industry over the coming quarters,” the report reads.

According to the market research firm, the DRC and others will benefit from mining mergers and acquisitions taking place thanks to improved balance sheets following a surge in prices for key commodities over 2017. A noteworthy case -the document states- is Glencore’s purchase of the remaining stakes in the Mutanda and Katanga copper-cobalt mines in the DRC for $922 million and $38 million, respectively.

For the rest of this article: http://www.mining.com/investment-africas-mining-sector-rise-bmi/

Comments are closed.