Exploration and prospecting phase

Holders of prospecting authorisation or an exploration permit are tax exempted (including VAT) from rights, contributions or other direct or indirect taxes which they have to pay personally.

Some taxes and duties are nevertheless required from the holders of mining rights. These include:

• Taxes for renewal and acquisition of mining rights and surface fees as stated in Articles 103-107 of the Mining Code.
• Flat rate employers contributions at the set rate.
• Charges and social contributions that are due to payment for the employees.
• Taxes on wages and salaries due by employees.
• Vehicle fees on all trucks that form the fl eet (except heavy-engine vehicles).
• Tax on insurance contracts, except for fifield vehicles that are exclusively employed in the exploration and prospecting operations.
• Registration fees.
• Professional training fees.
• Housing tax.
• Contribution to the programme of verifi cation of imports.
• Tax and duties applied to fuel products.
• Statistical fees.

Exploitation phase

The same taxes and duties in exploration and prospecting, plus:

• Tax on the added value of shares.
• Tax on land sales, provided that exemptions in provisions are taken.
• Fees for direct contributions to tax regulations and related contributions.
• Tax on corporate income.
• Fees for stamps on mining products export paperwork.
• VAT during a period ending in the third year, according to the start of production.

No more tax or duties scheme, whatsoever it may be, can be applied to the holder or beneficiary during the prospecting, exploration or exploitation phases.

top

Expropriation

Under Article 21 of Decree No 99-256/P-RM, the State declares its intention not to expropriate the future operators, neither seize none of their goods. However, if the circumstances or critical conditions require such measures, the State recognises that, in accordance with the International Law, it will have to ensure that suitable compensation is due to those who have got prejudices against their interests.

Resolving conflicts

All conflicts concerning the interpretation or implementation of the Standard- Agreement will be resolved on a friendly basis. Confl icts or litigations that exclusively concern technical aspects will be submitted to a well known and knowledgeable person for his technical experiences, to be chosen by both parties.

In case of litigation between parties, the expert will be called to arbitrate in accordance with the Agreement on Resolution of Confl icts related to Investments between States and Citizens of other States (CIRDI; October 14, 1996). In case where the CIRDI would declare that it is incompetent or would refuse the arbitration, the conflict will thereby be decided on making fi nal decision according to the Regulation of Arbitration of the Chamber of International Commerce of Paris.

Abandonment

Under Article 63 of Decree No 99-255, the holder of a mining right can at all times renounce his claim in an application to the Mines Minister. This application will be accepted, provided that the holder of the mining right has complied with all the provisions in Articles 79 and 80 of the Mining Law. In case of non-compliance, the Mines Administrator will have them carried out at the expenses of the Holder.

top