Wednesday November 18, 05:13 PM
UPDATE 1-Ghana to double mining royalties
ACCRA, Nov 18 (Reuters) - Ghana announced on Wednesday it will double mineral royalties to six percent in an effort to bolster government revenues, a move that could dent the profitability of some of West Africa's biggest gold mines.
The government also plans to 'engage' the mining sector on dividend payments, tax exemptions and the industry's fiscal regime, said the top finance official of Africa's No. 2 gold supplier, presenting the nation's 2010 budget to parliament.
'Further revenue measures to be introduced in the fiscal year include...(increasing) the minimum mineral royalties to six percent,' Finance Minister Kwabena Duffuor said in prepared remarks for his 2010 budget speech to parliament.
'In addition, government will engage all mining companies to address the issue of dividend payment, exemptions and the whole mining sector fiscal regime.'
One of the top investment destinations in the region, Ghana has attracted major international gold miners including South Africa's AngloGold Ashanti and U.S.-based Newmont .
A spokesman for AngloGold said the company did not expect to have to pay the higher royalty rate due to a 'stability' agreement made with a previous regime. 'We expect our prior agreement to be honoured,' he said.
Ghana, which is boosting spending to raise growth while attempting to narrow its deficit, has already raised concerns in the global investment community by announcing reviews of two major deals involving international firms.
The government of John Atta Mills, who came to power in January after a knife-edge election, declared that a reported multi-billion dollar deal by Exxon Mobil (NYSE: XOM - news) to get into Ghana's offshore oil sector would be illegal.
More recently, the government said it would review aspects of British company Vodafone (LSE: VOD.L - news) 's $900 million purchase of a stake in Ghana Telecom in August 2008 after an intergovernmental commission said it appeared unconstitutional. However, it stopped short of an original threat to abrogate it.
Officials at other gold mining companies operating in Ghana did not immediately comment.
Ghana is also the world's No. 2 cocoa producer and plans to start up commercial crude oil production at the end of 2010.
(Reporting by Kwasi Kpodo and Richard Valdmanis; writing by Richard Valdmanis; editing by Sue Thomas) Keywords: GHANA BUDGET/MINING
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
