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Mining industry submits code proposal to DRC Government
AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa)
Reg. No. 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG
CUSIP: 035128206 – NYSE share code: AU
(“AngloGold Ashanti” or the “Company”)
29 March 2018
NEWS RELEASE
Mining industry submits code proposal to DRC Government
(PRESS RELEASE) -- Mining industry representatives* in the Democratic Republic of
Congo have submitted a formal proposal to the country’s Ministry of Mines that is
designed to address concerns about the recently revised mining code as well as the
government’s revenue needs.
Among other things, it proposes linking a sliding scale of royalty rates to the prices of
the key commodities, which industry representatives believe would be a more effective
mechanism than the windfall tax introduced in the new code and at current prices
would immediately give the government a higher share of revenues than what is
provided in the new code. It also deals with stability arrangements, state guarantees
and mining conventions.
Along with the stability afforded to convention holders, enshrined in the 2002 mining
code is a 10 year stability clause which provides that the holders of mining and
exploration titles will continue to be governed by the terms of the 2002 mining code in
the event of the implementation of any new law for such period.
Article 276:
“The State guarantees that the provisions of the present Code can only be modified
if, and only if, this Code itself is the subject of a legislative amendment adopted by
Parliament.
The rights attached to or deriving from an exploration licence or mining exploitation
licence granted and valid on the date of the enactment of such a legislative
modification, as well as the rights relating to or deriving from the exploitation licence
subsequently granted by virtue of such an exploration licence, including among
others, the tax, customs and exchange regimes set forth in this Code, remain
acquired and inviolable for a ten-year period from the date of:
a) the entry into force of the legislative modification for the valid exploitation
licences existing as of that date;
b) the granting of the exploitation licence subsequently granted by virtue of a
valid exploration licence existing on the date of entry into force of the
legislative modification.
However, the proposal accepts 76% of the articles in the 2018 code and suggests
changes to the rest only to ensure the effectiveness and legality of the code. The
mining industry representatives believe these changes will resolve issues with the
code and contractual relationships while giving the DRC and its people increased
participation in the proceeds of mining.
* Issued on behalf of members of the DRC mining industry representing more
than 85% of the DRC’s copper, cobalt and gold production and most
significant development projects: Randgold Resources, Glencore, Ivanhoe
Mines, Gold Mountain International/ Zijin Mining Group, MMG Limited, Crystal
River Global Ltd and China Molybdenum Co, Ltd (CMOC), AngloGold Ashanti.
ENDS
Johannesburg
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
CONTACTS
Media
Chris Nthite +27 11 637 6388/+27 83 301 2481 cnthite@anglogoldashanti.com
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General inquiries media@anglogoldashanti.com
Investors
Stewart Bailey +27 81 032 2563 / +27 11 637 6031 sbailey@anglogoldashanti.com
Sabrina Brockman +1 646 880 4526/ +1 646 379 2555 sbrockman@anglogoldashanti.com
Fundisa Mgidi +27 11 6376763 / +27 82 821 5322 fmgidi@anglogoldashanti.com
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economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs, all-in sustaining costs, all-in costs,
cost savings and other operating results, productivity improvements, growth prospects and outlook of AngloGold Ashanti’s operations,
individually or in the aggregate, including the achievement of project milestones, commencement and completion of commercial operations
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Incorporated in the Republic of South Africa Reg No: 1944/017354/06
ISIN. ZAE000043485 – JSE share code: ANG CUSIP: 035128206 – NYSE share code: AU
Website: www.anglogoldashanti.com
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