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.”
