DRC Cobalt Levy May Sting Glencore, Randgold -- Market Talk
January 25 2018 - 8:43AM
Dow Jones News
The Democratic Republic of Congo's new proposed mining code
could hurt businesses, says SP Angel analyst John Meyer, but not
too badly. The code proposes royalties of 3.5% on base metals and
of 5% on strategic metals such as cobalt that will affect Glencore
and Randgold but aren't disastrous given the high grades mined in
the DRC. "Cost, aggravation [corruption] and security issues
relating to working in the DRC are far more damaging to business
than any royalty," Mr. Meyer says. Cobalt, a metal integral to
electric-vehicle engines, has soared 280% in the 16 months to Jan.
11, according to Bloomberg. (david.hodari@wsj.com;
@davidhodari)
(END) Dow Jones Newswires
January 25, 2018 08:28 ET (13:28 GMT)
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