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Economic & Sector Work :: Mining/Oil and Gas

Democratic Republic of Congo : Growth with Governance in the Mining Sector

AMORTIZATION ARTISANAL AND SMALL-SCALE MINING ARTISANAL MINER ARTISANAL MINERS ARTISANAL MINING ARTISANAL MINING ACTIVITIES ARTISANAL MINING SECTOR ARTISANAL PRODUCTION AUDITS BANK ACCOUNTS BAUXITE BENEFICIATION BENEFIT STREAMS CADASTRE CAPACITY BUILDING CAPITAL GAINS CAPITAL INVESTMENTS CLOSURE COAL COBALT COMMODITY PRICES COMMUNITY CONSULTATION CONCESSION AREAS CONFLICT OF INTEREST CONFLICTS OF INTEREST CONSUMPTION PATTERNS COPPER COPPER MINE COPPER MINES CREDIBILITY CURRENCY DEBT DECENTRALIZATION DEVELOPMENT OF MINERAL RESOURCES DIAMONDS DIVIDENDS DRINKING WATER DUE DILIGENCE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIES OF SCALE EITI EMERGING ECONOMIES ENABLING ENVIRONMENT ENVIRONMENTAL ENVIRONMENTAL IMPACT ENVIRONMENTAL IMPACT ASSESSMENTS ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL PROTECTION ENVIRONMENTAL REGULATIONS EQUITABLE DISTRIBUTION EQUITIES EQUITY MARKETS EXCHANGE RATES EXPENDITURES EXPLOITATION EXPLOITATION ACTIVITIES EXPLOITATION OF MINERALS EXPLOITATION PERMITS EXPLORATION ACTIVITIES EXPLORATION PERMIT EXTRACTIVE INDUSTRIES EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE FAIR MARKET VALUE FERROUS METALS FINANCIAL DISTRESS FIXED COSTS FUTURE CONTRACTS GAS GEOLOGICAL MAPPING GEOLOGICAL SURVEY GEOLOGY GERMANIUM GOLD GOLD DEPOSITS GOLD EXPLORATION GOLD MINE GOLD MINES GOOD GOVERNANCE GOVERNMENT CAPACITY GOVERNMENT REVENUES HEALTH AND SAFETY IMPLICIT GOVERNMENT GUARANTEES IMPORTS INCOME INCOME TAXES INDUSTRIAL MINERALS INFORMATION SYSTEMS INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE INVESTMENTS INSTITUTIONAL CAPACITY INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS INTERNATIONAL STANDARDS INTERNATIONAL TRADE INVENTORY INVESTING INVESTMENT CAPITAL INVESTMENT PROJECTS INVESTOR INTEREST IRON JOINT VENTURE PARTNERS LARGE-SCALE MINING LEGAL RIGHTS LEGISLATION LEVIES LIMESTONE MACROECONOMIC MANAGEMENT MANGANESE MARKET PRICES MATURITY METALS METALS PRICES MIDDLEMEN MINE DEVELOPMENT MINE SITES MINE TAILINGS MINE WASTES MINERAL COMMODITIES MINERAL COMMODITY MINERAL CONCESSIONS MINERAL DEPOSIT MINERAL DEPOSITS MINERAL EXPLOITATION MINERAL EXPORTS MINERAL INDUSTRY MINERAL OCCURRENCES MINERAL OPERATIONS MINERAL PRODUCT MINERAL PRODUCTION MINERAL PRODUCTS MINERAL RESOURCE MINERAL RESOURCES MINERAL RIGHTS MINERAL WEALTH MINERALS MINERALS DEVELOPMENT MINERALS EXPLORATION MINERALS LEGISLATION MINERALS PRODUCTION MINES MINING AREAS MINING COMPANY MINING DEVELOPMENT MINING ENTERPRISES MINING INDUSTRY MINING INVESTMENT MINING LAW MINING LEGISLATION MINING OPERATION MINING OPERATIONS MINING PERMIT MINING PERMITS MINING PROJECTS MINING REGULATIONS MINING ROYALTIES MINING SECTOR MINING TAX REGIME MINING TAXATION MINING TITLE MINING WASTES MISMANAGEMENT MULTINATIONAL MINING COMPANIES NATURAL RESOURCES NICKEL NIOBIUM OFFSHORE BANK OIL ORE RESERVES ORES OWNERSHIP OF MINERALS PALLADIUM PAYMENT OF TAXES PLATINUM POLITICAL STABILITY PRECIOUS METALS PRECIOUS STONES PRIVATE PARTY PRIVATE SECTOR MINING COMPANIES PRODUCERS PRODUCTION OF MINERALS PRODUCTIVITY PROPERTY INVESTMENTS REFINING RESERVE RESERVE BASE RETURN REVENUE COLLECTION REVENUE FLOWS REVENUE STREAMS ROYALTY PAYMENTS SAFETY STANDARDS SCIENTIFIC RESEARCH SHAREHOLDERS SILVER SMALL-SCALE SMALL-SCALE MINERS SMALL-SCALE MINING SECTOR SMELTER STOCK EXCHANGE STOCK EXCHANGES SUSTAINABLE DEVELOPMENT TAILINGS TAILINGS FACILITIES TAX TAX COLLECTION TAX EXEMPTIONS TAX RATES TAXATION TIN TRADING TRANCHES TRANSFEREE TRANSFEROR TRANSPARENCY TRANSPARENCY AND ACCOUNTABILITY TUNGSTEN URANIUM URANIUM MINE VALUATION VANADIUM WITHHOLDING TAXES ZINC
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Washington, DC
Africa | Congo, Democratic Republic of
2012-06-14T19:04:58Z | 2012-06-14T19:04:58Z | 2008-05

This study examines the mining sector's potential to contribute to economic growth with governance in the Democratic Republic of Congo. In the past, mining has been the main engine of the Congo economy. But the revenues and other benefit streams generated by the sector over the years have not been used in a wise or sustainable fashion, largely due to key problems with sector governance. During the past ten years of civil war and conflict, flagship industrial mining declined substantially, and informal and artisanal mining expanded significantly. Now that peace has returned to most of the country and a new democratically elected Government is in place, the potential for the mining sector to contribute to economic growth is excellent. However, achieving growth with governance depends on three principal internal and external factors. The first of these, international commodity prices, is largely out of the Government's control. The second factor, political stability, is clearly critical to growth of the sector; however, a detailed discussion of this factor is outside the scope of this study. The third factor, rent-seeking culture, is at the heart of the challenge that the Government must overcome to ensure sustained sector growth with good governance. The probable future decline and fluctuation of commodity prices has several implications for the mining sector in DRC. First, the amount of investment funding available for minerals exploration and investment falls or rises in tandem with the commodity prices. During the first quarter of 2008 there has already been a significant fall-off in the amount of funding for smaller companies in the international exchanges, due in part to the financial turbulence in the markets. This fall-off in investment funding could be exacerbated further by a significant downturn in commodities prices. Second, producing companies will generate lower revenues, and the government will have a consequent decline in fiscal receipts. Third, companies will face pressure to maximize their economies of scale, generally by increasing through-put in order to meet fixed costs. At the same time, because of lower sales revenues, companies will be forced to reduce operating costs, often by cutting staff and social services. Fourth, lower commodity prices will have a direct effect on the artisanal producers of mineral commodities, whose day-to-day dependence on the amounts earned in the mines renders them highly vulnerable to fluctuations.

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