Congo(Kinshasa) has enacted the new <Mining Law>, and implemented the new<Mining Regulations> on June 9^th. With the aim to protect theCongolese (Kinshasa) and people’s income, the new mining law has been revisedgreatly. It has increased various kinds of taxes and fees greatly, moreover, ithas made great changes in the aspect of financial supervision, mining rightsand environmental protection, etc. compared with the <Mining Law> of 2002edition. The implementation of the new mining law will certainly have asignificant impact on all Chinese mining enterprises engaged in miningdevelopment and production in Congo (Kinshasa).

 Against this background, Congo (Kinshasa)Shituru Mining Corporation (SMCO) of Pengxin Mining, in response to the call ofthe Congo (Kinshasa) Chinese Mining Enterprise Association, hosted Congo(Kinshasa) New Mining Law Chinese Enterprises Summit on June 11^th. Ms.Long Yanmei, the partner of Jingtian & Gongcheng Law Firm, has been invitedto give a lecture on the summit, meanwhile, more than 30 leadership of manyChinese mining enterprises in Katanga, such as Sino-Congo Mines, China RailwayMKM, China Railway Luishia, Zijin Mining, China Nonferrous Huachin, NORINCO Komika,Thomas, Hanrui Cobalt, Dowstone Technology, Tengyuan Co., Ltd., NORINCO Lamika,Yinyi Co., Ltd., Jiangxi Electric Power Construction, North Blasting, AfricaUnited Cassiterotantalite and China Nerin, etc. have participated in the summitas well.

He Yin, the General Manager of SMCO, presidedover the summit. At the beginning of the summit, he played the latest corporatepromotional video of Pengxin Mining, which shows the brand-new outlook of PengxinMining in recent years. Afterwards, the lawyer Long Yanmei has systematicallyanalyzed the differences between the old and new mining law, and pointed outvarious impacts on the operation of mining enterprises from sixteen aspects,including the background and purpose of the revision of the new mining law, variousways of investment recovery for investors, increasing the income of Congo(Kinshasa) government, increasing the rights of Congolese citizens, raising thethreshold for entering the mining industry, reducing the term and area ofmineral rights, reducing the liquidity of the mineral rights, reducing theliquidity of the shares held by mining rights holding companies, indirectlyencouraging the development mode of mining rights lease, increasing the addedvalue of local processing, and strengthening the supervision of the sales ofmineral products, increasing restrictions on mineral products export,increasing the ratio of capital returning to Congo (Kinshasa), reinforcing thesocial and environmental responsibility, and enhancing the transparency in themining industry, and reducing the predictability of investment, etc., hence,all attendees have got a certain understanding and thinking of the new mininglaw. Of course, the impact of the introduction of the new mining law on theinvestment of Chinese enterprises in Congo (Kinshasa) is yet to be furtherexamined. However, the signals of strict tightening, raising the threshold andprotecting the interests of Congo (Kinshasa) sent out by the new mining law arevery clear.

Thenthe representatives of Chinese enterprises and Ms Long interacted with eachother on relevant issues. And finally, He Yin, the General Manager, hopes totake the summit as an opportunity to strengthen the horizontal communicationsand exchanges of Chinese enterprises and looks forward to holding a seminar onthe new mining law again.

Thesummit finished in laughter and applauses. The attendees are united inappreciation for SMCO’s hosting of Chinese Mining Enterprises Summit in thefirst time of the introduction of the New Mining Law of Congo (Kinshasa), so asto give them the opportunity to learn the spirits of the new mining law andfully communicate with their peers. The success of the summit has further strengthenedSMCO’s initial intention of helping each other and mutual benefits with Chineseenterprises in Congo (Kinshasa). In the future, SMCO will continue tostrengthen the communication and cooperation with Chinese enterprises in Congo(Kinshasa) to share and make progress together.