Mining Weekly quoted Bloomberg News Agency as saying that Felix Tshisekedi, a candidate of the Democratic Congo opposition leader, the Alliance for Democracy and Social Progress, won the election “unexpectedly”.
| sodium metabisulphite |
Democratic Congo is the world’s leading producer of battery materials such as cobalt. In addition, the country is also an important producer of copper and tantalum. Therefore, the future situation of the Democratic Republic of Congo has attracted wide attention from mining companies, analysts and metal consumers, including automobile manufacturers and mobile phone manufacturers.
It is believed that the Democratic Congo Government may amend the new mining law in the future, especially the terms of royalties and tax increases, which is good for mining companies such as Glencore and Barrick.
The following are the views of some institutions:
VERISK MAPLECROFT: A new government completely unfamiliar to mining companies
Indigo Ellis, a company analyst, believes that the election results are preliminary and that many mining investors will be watching government policy trends during the transition period in the next two to three months. In his election campaign, Zisekedi publicly stated the tax and powers of the new mining law.
The interest tax rate has risen too fast and even become “anti-investment”, at least he will adopt a policy of encouraging investment.
Barrick Gold: It’s too early!
Graham Shuttleworth, the company’s chief financial officer, said it was too early to say that the election was going smoothly, and that the results had been announced and people accepted the fact. Zisekedi is a politically experienced man.
| sodium metabisulfite |
Leaders, the government is not a party group, but an alliance. The position of Mining Minister is very important.
AFRICA RISK CONSULTING: Mining policy will not change
Shawn Robert Duthie, a senior analyst at the company, believes that Zicekdi will largely maintain the initiatives implemented by his predecessor and will not change the mining law.
RBC Capital Markets: Mine Law may be amended
Tyler Broda, a mining analyst at the bank, said that the Democratic Republic of Congo would eventually emerge from a period of corruption and volatility in mining laws, with the possibility of amending the new mining law introduced last year.
Liberum Capital: Supply is risky
Ben Davis, an analyst at the bank, believes that the Democratic Republic of Congo is a very important producer of copper and cobalt and that supply disruptions may occur and lead to higher copper and cobalt prices.
BMO Capital Markets: Reducing Supply Risks
Colin Hamilton, a mining analyst, said the election results were unexpected and could trigger domestic unrest and affect exports of copper and cobalt.
| sodium bisulfite |