Industry warns that the planned reform of Congo's mining laws could undermine investor confidence

A document seen on Monday by the Democratic Republic of Congo's?main mining industry -body? warns that proposed changes in mining laws to tighten state control may dent investor trust in the world's largest cobalt producer. The world's second largest copper supplier is also a significant source of tantalum, germanium and gold. It hosts some of mining's most prominent companies, including China's CMOC and Huayou Cobalt & Zijin, Switzerland's Glencore, and Canada's Barrick. Congo, like many other resource-rich African nations, has increased efforts in recent years to increase revenue from its vast mineral resources.

The?mining codes would be revised to allow for the creation of strategic stocks, as well as a broader state control over strategic minerals.

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The bill, which was submitted by Serge Chembo N'Konde in June and sent to the government as a comment document, and seen on Monday, would amend over 40 articles of the code for 2018 and add provisions on strategic mineral, local content and community development.

The bill states that the code of 2018 is outdated in some parts and calls for greater state supervision.

According to an internal document seen by?us, the Chamber of Mines has called for an emergency forum to be held on July 15-17 in order to establish a common position for industry and to assess whether a new mining code revision is warranted.

The chamber expressed concern that mining operators might not be adequately involved in the process. It warned further changes could exacerbate regulatory uncertainty and create tensions between institutions.

The Congo's Mines Ministry did not respond immediately to a comment request.

The miners believe that the problems of the mining sector are less due to flaws in the 2018 code and more related to its implementation. They cite overlapping mandates as well as unauthorised interventions, conflicting interpretations, and a lack of legal certainty.

The chamber distributed the document to government officials, investors, miners and civil society, inviting them to attend the three-day event.

The proposed changes would also increase the penalties for violations, including fines up to $1,000,000 and prison sentences up to 20-years. (Reporting and writing by Ange Adikhe Kasongo, Maxwell Akalaare Adombila, Editing by Robbie Corey Boulet and Emelia Sithole Matarise).

(source: Reuters)