According to Bloomberg News, the Minister of Mines of the Democratic Republic of Congo Willy Kitobo Samsoni said that due to the delay of the project and the decline in mineral prices due to Covid-19, the mining revenue is expected to fall by 20%.
Kitobo said in an online meeting that due to the outbreak, several Congolese miners had to delay the construction of new production facilities to comply with the upcoming export restrictions on copper and cobalt concentrate.
"Almost all of these projects have been delayed until next year. In the short term, we have lost some projects that should have been completed and increased production."
Congo is the world's largest cobalt producer and Africa's largest copper exporter. The Congolese Ministry of Mines said in February that by mid-2020, it will begin implementing a ban on exporting mineral concentrates in order to increase the value of Congolese mineral exports through refining in the Congo.
Kitobo said the government will still allow the export of cobalt hydroxide because the country lacks electricity to power smelters.
Although revenues have fallen, the production of copper and cobalt has not been severely affected by the epidemic. The largest miners in Congo are Glencore Plc and China Molybdenum Co. Ltd.
Kitobo said the Congolese government is also considering tax cuts and may try to help miners who need to declare force majeure because of the virus. Still looking for ways to help artisanal mining companies whose mineral demand has fallen significantly. Artisanal miners usually account for 20% of the country’s cobalt production.
Congo’s copper and cobalt mines have been operating under strict blockade procedures, and no known cases of Covid-19 have been found.
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