Taxation of mining industries

News

Update 2017 and 2018 : Cameroon, Republic of the Congo and DRC

2019-04-24

Updated tax data for 2017 and 2018 are now available for Cameroon, Republic of the Congo and Democratic Republic of the Congo (DRC).
Cameroon has adopted a new Mining Act (Act No. 2016/017 of 14 December 2016). The Republic of the Congo has not changed its mining taxation (Act No. 33-2016 of 31 December 2016 and Act No. 41-2017 of 29 December 2017). The DRC has in-depth reformed its Mining Act (Act No. 007/2002 of 11 July 2002 as amended by Act No. 18/001 of 9 March 2018).

Read more

Reform of the Congolese Mining Act: what changes?

2019-04-23

The Democratic Republic of Congo (DRC) has in-depth reformed its Mining Act (Act No. 007/2002 of 11 July 2002 as amended by Act No. 18/001 of 9 March 2018). This reform increases on the one hand the mining royalty for precious metals whose rate goes from 2.5% to 3.5% and on the other hand the participation required by the State in the capital of the operating company which goes from 5% to 10% minimum. As a result, these measures increase the tax burden on gold mining companies. For a representative medium grade mine (3g/t) and a gold price of $1250/oz, the average effective tax rate (AETR) increases from 41% to 46%.

Read more

New Cameroonian Mining Act: what changes?

2019-04-22

Cameroon has adopted a new Mining Act (Act No. 2016/017 of 14 December 2016). It reduces the ad valorem royalty rate for precious metals to 5%, whereas it was raised to 15% by the Finance Act, 2015 (Act No. 2014/026 of 23 December 2014). This new Mining Act therefore significantly reduces the tax burden applicable to gold mining companies. For a representative medium grade mine (3g/t) and a gold price of $1250/oz, the average effective tax rate (AETR) drops from 67% to 53%.

Read more

Update 2017 and 2018 : Benin, Burkina Faso and Cote d'Ivoire

2019-02-26

Updated tax data for 2017 and 2018 are now available for Benin, Burkina Faso and Cote d'Ivoire.
In Benin, the latest finance acts have not changed the mining taxation (Act No. 2016-33 of 26 December 2016 and Act No. 2017-040 of 29 December 2017). Burkina Faso has adopted a new general tax code (Act No. 058-2017/AN of 20 December 2017). In addition, the amounts of the fees and the annual ground fees have been modified by decree (Decree No. 2017-0023/PRES/PM/MEMC/MINEFID of 23 January 2017). In Cote d'Ivoire, the conditions for deductibility of interest have been tightened (Act No. 2017-870 of 27 December 2017).

Read more

Two new papers

2018-12-21

- A model for sharing mineral resource rent in African countries
- A database on mining taxation in African countries

Read more