Taxation of mining industries

News

Gabonese surveillance fee: what is it?

2019-05-27

Holders of mineral rights on Gabonese territory are now liable to a surveillance fee. It was introduced by section 12 of the Finance Act, 2018 (Act No. 021/2017 of 26 January 2018). It amounts to 50 CFA Francs per hectare for holders of prospecting licences and 300 CFA Francs per hectare for holders of mining licences and mining concessions. It is due annually, in addition to the ground fee set by section 279 of the Mining Act (Act No. 017/2014 of 30 January 2015). It has to be paid before June 31 of each year to the accounting officer of the Geospatial Agency.

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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).

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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%.

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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%.

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Blog : Tax convergence in the mining sector of WAEMU countries

2019-04-12

The issue of sharing the mining rent between investors and States is of primary importance for WAEMU countries because of their need for resources for their development. While the analysis of legal texts shows that today the harmonization of mining taxation within WAEMU is partially a failure, the economic analysis of the average effective tax rates (AETR) of WAEMU countries reveals a certain convergence with the increase in the overall tax burden.

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