Randgold says DRC's Kabila gave assurances on mining code

Randgold Resources said the president of the Democratic Republic of Congo (DRC) has assured mining companies that questions about their operations under the country's new mining code would be resolved, but only after the new law had been signed off.

President Joseph Kabila Kabange met representatives from the mining industry on 7 March at the companies' request, Randgold said in a statement.

"The representatives of the mining industry raised questions pertaining to their operations. The president gave assurances that the questions raised will be resolved through discussions with the government, in the mining regulation to be adopted by the government," Randgold said.

A joint statement by the DRC government and the mining group noted that miners concerns "will be taken into account through a constructive dialogue with the government after the promulgation of the new mining law".

Mark Bristow, Randgold's chief executive, said his company would start discussions with government representatives in the week starting 12 March. Randgold operates the giant Kibali gold mine in the north-east of the country.

Randgold, Glencore and other mining companies have clubbed together in an effort to head off the new code, which would increase royalties the companies pay on cobalt, which is used in smartphones and electric car batteries. DRC produces about two-thirds of the world's cobalt and is a leading copper producer.

Economists have identified cobalt as a potential constraint for electric vehicle producers and have said the industry's reliance on DRC could make production of the metal a problem for 5-10 years.

Randgold shares were down 1.4% to 5,898p at 08:03 GMT. Glencore shares fell 0.9% to 364p.