Congo May More Than Double Tax on Critical Cobalt Supply
- Mining code to increase royalty taxes on ‘strategic’ materials
- Legislation awaiting Senate approval to be signed into law
Workers operate digging equipment in an open pit during the excavation of ore at a copper and cobalt mine in Democratic Republic of Congo.
Photographer: Simon Dawson/Bloomberg
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The Democratic Republic of Congo is preparing to more than double a tax on two-thirds of global cobalt supply, potentially increasing the cost of the critical battery metal just as the world begins to embrace electric vehicles.
Congo, the world’s biggest cobalt producer, will increase the royalty miners pay on exports of the metal to 5 percent from 2 percent if it opts to categorize cobalt as a “strategic substance,” Mines Minister Martin Kabwelulu told the country’s Senate last week.