Mozambique reviewing fiscal regime, diamond royalties to marginally go up

Mozambique said it is currently reviewing its fiscal regime and was targeting an increase in mining royalties, including diamonds.
The country’s deputy mining resources minister, Abdul Razak told the Investing in African Mining Indaba in Cape Town that the current diamond royalties was pegged at 10 percent, while that of base metals was 5 percent and coal 3 percent.
Mozambique intends to develop its diamonds with nearby Angola's help.
The two southern African nations signed a cooperation agreement on mining and geology.
Mozambique mineral resources minister Esperanca Bias had two years ago promised miners that the existing fiscal regime would remain in force.
This followed concerns that a new mining law that was being drafted at the time would push tax levels high.
"The new law on mining will not touch taxation", she said at the time. "There's no need to, since we charging the same tax rate that the rest of the region does. In the case of coal, that's three per cent of the revenue".
This however had changed, perhaps due to the country’s desire to pocket more from its minerals.
Razak said that although the review was a reality, the increase would not be that high.
“Our fiscal regime is currently under review, however, this will not be much different from the current state,” he said.
The deputy mineral resources minister said the country had issued out 800 exploration licences for several minerals.
These, were being issued out on “first come, first serve” basis.
However, Razak said, only areas that had known geological data was subject to tenders.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished from Cape Town, South Africa