UPDATE 1-Cost cuts to hit mining jobs, state revenues in Congo- chamber

(Adds quotes, context, ministry reaction)
KINSHASA, Aug 27 (Reuters) - Expected cost-cutting by mining
companies in Democratic Republic of Congo is likely to lead to
layoffs and reduce government revenues amid a sharp decline in
metals prices, the chamber of mines said.
Falling prices would not affect copper output this year, the
chamber said in a report seen by Reuters on Thursday, though it
estimated that production would slip slightly due to electricity
shortfalls.
In contrast, the chamber forecast that gold production would
increase 33.5 percent in 2015. Output of the precious metal
soared by 79 percent in the second quarter due to large new
mines operated by Randgold Resources RRS.L and Banro
Corporation BAA.TO .
Congo is Africa's leading copper producer, with output
exceeding 1 million tonnes in 2014 for the first time ever. The
mining sector, which also produces significant quantities of
gold, cobalt and tin, accounts for some 20 percent of gross
domestic product (GDP).
"Most mining companies have already announced their
intention to reduce costs by selling assets and reducing work
forces to improve the efficiency of production," said the
quarterly report.
"This is likely to result in the loss of direct and indirect
jobs from the suppliers and sub-contractors. In addition, the
fiscal receipts of the state will inevitably fall," it added.
The report did not refer to a specific time frame. Neither
did it say how many jobs were likely to be lost or detail the
anticipated impact on government mining income.
Mining operations worldwide have been rocked by sharp
declines in metal prices linked to fears of a slowing economy in
China, the world's top industrial metals consumer.
World copper prices hit six-year lows this week. The metal
is down more than 18 percent this year, though benchmark LME
copper CMCU3 closed up 4.2 percent on Thursday at $5,140 a
tonne in the biggest one-day percentage gain since May 2013.
Congo's government on Monday trimmed its growth forecast for
2015 from 9.2 to 8.4 percent due to slackening demand from
China, Congo's largest trading partner. ID:nL5N10Z3FB
The mines minister could not be reached for comment. His
chief of staff acknowledged concerns about falling commodity
prices and industry cuts but said he was not able to comment on
specifics.