Glencore, China Moly Face Higher Cobalt Royalty Taxes in Congo
- Congo’s government plans to declare metal strategic in days
- Higher royalty tax adds to costs imposed under new mining code
Photographer: Cristobal Olivares/Bloomberg
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The Democratic Republic of Congo will declare cobalt a strategic metal, imposing a 10 percent royalty tax on producers including Glencore Plc and China Molybdenum Co.
The measure will increase costs for miners even further after an overhaul of regulations earlier this year raised royalty payments on cobalt, copper and gold, and introduced new taxes. Congo, the world’s biggest cobalt producer and also one of the poorest nations, is seeking to derive more income from natural resources that account for almost all of its export earnings and about a quarter of government revenue.