Global
in allocations, with USD288.8-million,
it still grew in share by 3% over the
previous year. Grassroots budgets went
up 30%, and late-stage budgets rose
21% compared with 2016.
The Democratic Republic of
the Congo
The Democratic Republic of the Congo
(DRC) held on to first place regionally
with 13%, despite a 6% year-over-year
reduction in its exploration allocations
to USD143-million, from USD151.3-
million in 2016. Some new players
began exploring in the country, lifting
the number of companies to 30, from
27 in 2016.
Mining companies working in the
DRC enjoy an exemption from a
value-added tax, or VAT, that lapsed in
2017 but was provisionally reinstated
the same year. Major companies had
expressed how their operations would
be adversely affected if the VAT were
restored and applied to them. The
government owes mining companies
USD700-million in VAT reimbursements
from 2016’s suspension, according to the
country’s Chamber of Mines.
In other measures in 2017, the
government revisited its 15-year-old
mining code and proposed tax changes
that would bring the country up to date
with regional standards. The proposals
include raising taxes on profits, increasing
the government’s stake in new mining
projects, and increasing mining royalties.
The government believes that although
the measures would increase the costs of
mining in the country, investor sentiment
would not be affected since royalties
and government ownership in projects
would remain below the levels in other
important mining jurisdictions.
Burkina Faso
Burkina Faso’s budget saw Africa’s
most dramatic increase year over year,
climbing 55% to USD113.2-million,
from USD72.9-million in 2016. The
Exploration budgets for Africa by target share, 2008–2017 (%).
Exploration budgets for Africa by company type share, 2008–2017 (%).
increase gave the country 10% of the
African budget and moved it into
second place regionally from third the
year before. The number of companies
exploring declined to 23, from 29 the
previous year. Gold accounts for over
APRIL 2018 MINING MIRROR
[7]