DRC: nearly USD 5.8 billion collected in taxes, duties, fees and royalties from mining and oil companies between 2018 and 2019

January 28, 2022January 28, 2022 Janet

Between 2018 and 2019, mining and oil companies operating in the Democratic Republic of Congo (DRC) paid the public treasury in taxes, duties, fees and royalties, a total amount estimated at 5,849,113,365.66 billion. U.S. dollars.

This is what the statistical yearbook of the Democratic Republic of Congo reports in its publication for the year 2020.

According to this report, during this period under analysis, mining companies paid the Congolese State a sum of 5,456,810,153.31 billion US dollars, i.e. 2.9 billion USD paid in 2018 and 2.4 billion USD in 2019.

As for the revenues of companies in the oil sector, they are estimated at 392,303,212.35 million US dollars.

These revenues were paid in the amount of USD 164.6 million in 2018 and USD 227.6 million in 2019.

The reversal of the commodity cycle and the subsequent rebound in world prices in 2017 (Copper: +60% to 7100 USD/T, Cobalt: +125.98% to 71000 USD/T and Gold +20% at 1300 USD per ounce) favored growth in production volumes (+9.3% for Copper, +18% for Cobalt, +13.3% for Diamond and +5.7% for Gold).

Only oil production remains on a downward trend (-4.8%).

During the first quarter of 2018, the price of copper, which remains high, fell slightly (-3% or 6990 USD/T).

Over this same period, the price of Cobalt, a strategic raw material for the automotive electric battery industry, continued to rise strongly (+39%, from 71,000 USD/T to 97,000 USD/T).

World demand for this ore, for which the DRC is the world’s main producer (60% of world supply), is very strong and resolutely on the rise in the long term, given the needs of the automotive industry, of which demand could increase from 90,000 tonnes per year to 122,000 tonnes by 2025.

Note that the year 2019 was marked by the fall in copper and cobalt prices.

The drop in Cobalt prices was confirmed continuously throughout 2019, with prices divided by 3 between the peak reached in March 2018, i.e. USD 95,000 per tonne, and current prices of USD 32,000 per tonne. tonne.

With regard to copper, this mining product also experienced a drop in stages from 6500 USD per ton in February to the symbolic bar of 6000 USD per ton at the beginning of the summer. At the end of December, world copper prices were at 6200 USD per ton.