DRC Cobalt Levy May Sting Glencore, Randgold -- Market Talk
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. (firstname.lastname@example.org; @davidhodari)
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January 25, 2018 08:28 ET (13:28 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.