http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.50Change: 0.08
R/$ = 10.48Change: 0.08
Au 1299.41 $/ozChange: -3.45
Pt 1438.50 $/ozChange: 2.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 10, 2002

Chile copper-mine conflict drags on

Back
Enami|Exxon Mobil|UBS Warburg|Bahamas|Bermuda|Chile|United States|USD|Copper Producer|State-owned Miner|Chile's Government|Alfonso Dulanto|Jorge Lavandero|Ricardo Lagos|Disputada
enami|exxon-mobil|ubs-warburg|bahamas|bermuda|chile|united-states|usd|copper-producer|stateowned-miner|chiles-government|alfonso-dulanto|jorge-lavandero|ricardo-lagos|disputada-product
© Reuse this Chile's mining minister said last week there has been no progress in talks with Exxon Mobil, over government demands that the company pay taxes on its planned $1,3-billion sale of mining assets.

Exxon and Chile's government clashed after the US giant agreed in May to sell its copper mining unit, Disputada de las Condes, to South African miner Anglo-American, in an offshore transaction that would be exempt from the country's capital gains tax.

Chile, the world's top copper producer, wants Exxon to pay taxes on the profits from the sale.

The tax could be anywhere between $30 and $300-million.

The government of socialist President Ricardo Lagos also wants Exxon to recognize an option held by state-owned miner Enami to buy back up to 49% of Disputada.

Enami acquired the option in 1978 when it sold Disputada to Exxon for $98-million.

Both issues have held up the Exxon-Anglo deal.

"I would say there are no advances that I could tell you of, other than that conversations continue on both issues," Mining Minister Alfonso Dulanto told reporters last week.

Dulanto, who met top Exxon executives a week ago, said he was optimistic, but that an agreement could take some time. "Clearly, our intent is to bring the results of these talks to the (Chilean) president as soon as possible," Dulanto said.

Exxon has declined to comment on the talks.

The company has been at the hub of a controversy in Chile in recent weeks over the tax obligations of foreign mining companies.

The country holds 40% of the world's reserves of the metal, and copper is a key income generator for the state.

In the past decade, eight of the largest 10 foreign mining companies in the country have not paid income tax, according to a government study.

The average annual profit ratio among these companies was 15,8% from 1997 to 2001, it said.

Exxon's Disputada has declared financial losses during its 24 years of operations in the country and therefore has never paid income tax.

Critics allege that local units of multinationals like Exxon elude Chilean taxes by taking out debts at above-market rates with sister subsidiaries based in tax havens, such as Bermuda and Bahamas.

Interest payments and other tax loopholes artificially depress their earnings reports, they say.

"I don't think anyone can believe that a company like Exxon would hold onto a bad business for 24 years because that would mean they came here to do charity work," Senator Jorge Lavandero said.

Chile has received $16-billion in direct foreign investment in mining in the last 10 years.

President Lagos has rejected proposals for a royalty tax on copper production, but is seen as wanting current tax rules to be more strictly enforced.

Analysts say the outcome of the Chile-Exxon controversy could be more transparent tax planning by miners in Chile and slightly higher costs in the long run.

"We think the debate over royalties and the investment platform bill will serve to catalyze the industry into being less aggressive in future tax planning, and to seek ways to build a more positive industry image among the populace," UBS Warburg said in a report this week. – Reuters.

Edited by: Martin Czernowalow
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Mining News
Labour Minister Mildred Oliphant
Updated 5 hours ago The leaders of South Africa's striking mining union and the chief executives of the world's three biggest platinum producers were set to meet on Thursday, in a renewed drive to end a crippling strike entering its thirteenth week. "They will be meeting directly with...
Updated 5 hours ago Weighing up the factors impacting the gold market this year, 2014 looks set to be a second year of price decline for gold, with precious metals consultancy Thomson Reuters GFMS continuing to forecast an average of $1 225/oz for the year. The organisation’s Gold...
More
 
 
Latest News
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Updated 2 hours 50 minutes ago Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
Updated 2 hours 56 minutes ago The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
ANC SG Gwede Mantashe (L), chairperson Baleka Mbete (C) and President Jacob Zuma (R)
Updated 3 hours ago The creation of a small and medium enterprises department is very likely, African National Congress national chairwoman Baleka Mbete said on Thursday. "We are talking about a focused department looking at small and medium businesses because the departments must be...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The power and water sector will come together in May to discuss challenges and celebrate successes at the annual African Utility Week and Clean Power Africa in Cape Town. More than 5 000 power and water professionals, including utility heads from Nigeria, Uganda,...
There is enough water in South Africa to supply communities and the economy, even if some activities may be constrained, such as agriculture in the Limpopo, says National Planning Commission commissioner Mike Muller. 
Muller was also the director-general from 1997...
South African antenna designer and producer Poynting and provider of professional products, system integration and implementation and commissioning services for the broadcast and telecommunications markets in South Africa, African Union Communications (Aucom),...
Industrial automation giant Festo has been displaying some of the its ongoing research projects and latest automation developments and products at the Hannover industrial fair from April 7 to 11, as part of its Integrated Automation – The Next Steps theme. The...
South African retail companies are responding to the way in which e-commerce is changing their engagement model with customers by improving customer engagement channels and order fulfilment intelligence, says industrial and retail software company JDA Europe, Middle...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks