Mali’s new Mali’s Mines Ministry says mining companies operating in the country would no longer be exempted from Value Added Tax, (VAT) during production and would have a shorter period of protection from fiscal changes.
This is according to a new mining code which seeks to redress the “shortcomings” of a 2012 law by bringing a “substantial increase” in the contribution of the mining sector to the economy, the Mines Ministry said in a statement.
The new code in Mali, Africa’s third largest gold producer, shortens the “stability period” during which mining companies’ existing investments are protected from changes to fiscal and customs regimes.
It would be recalled thaf the Economy Ministry last year said that the government aimed to reduce those protections to the lifespan of a mine.
Mali’s government had been negotiating with mining companies to draft a new mining code, but it said last year that it would move to implement a new law unilaterally if no compromise was reached.