Hi 1973 Theres some interesting commentary on the new MOZAMBIQUE...

  1. 2,647 Posts.
    Hi 1973

    Theres some interesting commentary on the new

    MOZAMBIQUE MINING LAW NO 20/2014, DATED 18TH AUGUST

    by CIP

    http://www.eleicoes2009.cip.org.mz/cipdoc\344_spinformacao_2014_13_en.pdf


    And I'll quote

    "In broad measure, the two laws seek to further
    enhance the benefits for Mozambique from the
    mining sector, a trend that has been clear since​
    the passing of the Mega-Projects law."

    Im sure Prime1 can elaborate on how the two new laws will enhance the benefit for Mozambique from the mining sector. Of special interest to me is this surface tax, a tax we don't have here in Australia? How does that work, and why does it increase every year.?

    I'll quote again

    "Stabilization (Article 58): Investors seeks clear
    assurances that fiscal terms agreed at the outset
    remain unchanged throughout the project.
    Governments seek flexibility to accommodate
    changing circumstances. In the past, Mozambique
    has offered mining companies a guarantee
    that the terms of their original contract would
    be honored. Under the terms of the new fiscal
    law, terms are guaranteed for only the first ten
    years of production. Fiscal stability can be extended
    from year 11 through the lifetime of the
    contract for “payment of additional 2% of Mining
    Production Tax from the eleventh year of​
    production.”
 
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