11 APRIL 2013Bloomberg Businessweek
Guinea cuts taxes on bauxite exports to $4 a ton
Edited by : AL CIRCLE
1 min read
Guinea, the world’s biggest exporter of bauxite, has cut taxes on exports of the mineral to $4 a metric ton from as much as $13 a ton, according to amendments made to the country’s mining code.
“We’re putting in place a more flexible tax system to encourage win-win investments,” Mines Minister Mohamed Lamine Fofana said in an e-mailed statement today. Lawmakers approved the new policies on April 8 in Conakry, the capital.
Rio Tinto Group and Vale SA operate in the West African nation, which also has reserves of gold and iron ore. Guinea is recovering from a coup that saw the World Bank and the International Monetary Fund sever ties until 2010 presidential elections.
A previous version of the code, adopted in 2011, was withdrawn amid concern about the tax rate, said Djiby Diaby, spokesman for the National Transitional Council, which acts at Guinea’s parliament.
The code will cut taxes on so-called industrial, commercial profit to 30 percent from 35 percent, while the size of bauxite and iron concessions was raised to 500 square kilometers (193 square miles) from 350 square kilometers, according to the ministry. Concession sizes for other minerals have been doubled to 100 square kilometers.
“We’re putting in place a more flexible tax system to encourage win-win investments,” Mines Minister Mohamed Lamine Fofana said in an e-mailed statement today. Lawmakers approved the new policies on April 8 in Conakry, the capital.
Rio Tinto Group and Vale SA operate in the West African nation, which also has reserves of gold and iron ore. Guinea is recovering from a coup that saw the World Bank and the International Monetary Fund sever ties until 2010 presidential elections.
A previous version of the code, adopted in 2011, was withdrawn amid concern about the tax rate, said Djiby Diaby, spokesman for the National Transitional Council, which acts at Guinea’s parliament.
The code will cut taxes on so-called industrial, commercial profit to 30 percent from 35 percent, while the size of bauxite and iron concessions was raised to 500 square kilometers (193 square miles) from 350 square kilometers, according to the ministry. Concession sizes for other minerals have been doubled to 100 square kilometers.
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