On 7 March, heads of seven foreign mining groups sat down with Democratic Republic of Congo (DRC) president Joseph Kabila. Over the course of a six-hour meeting, the executives explained why they thought Mr Kabila should drop revisions to the country’s mining code. Approved by lawmakers in January, the new bill increases taxes and royalties, levies a charge of up to 10 per cent on certain “strategic” minerals, and – crucially – removes a provision granting miners a decade to adapt to any new rules.
Two days later, Mr Kabila signed the new code into law, accompanied by a vague statement from his mining minister that company concerns would be addressed on a case-by-case basis. Naturally, the miners oppose the changes. Glencore (GLEN) and Randgold Resources (RRS), whose chief executives Ivan Glasenberg and Mark Bristow both attended the meeting, have argued that the overhaul will deter direct investment in one of the poorest countries in the world.