PERTH (miningweekly.com) – Gold miner Resolute Mining has struck a new Mining Convention with the Mali government over its Syama gold mine, lowering the income tax rate on the project from 35% to 25%.
Resolute on Thursday reported that the Mali government had also granted a further ten-year extension to the Syama mining permit, enforcing the provisions of the new Mining Convention.
“Mali is a well-managed, long-standing, globally important gold mining jurisdiction. Over more than 15 years, Resolute has built a partnership with the Mali government based on respect and the pursuit of mutual benefit,” said MD and CEO John Welborn.
“The signing of the new Syama Mining Convention, and the granting of an additional ten-year extension of the Syama mining permit, continues the strong relationship between Resolute and the government of Mali. The new convention provides fiscal and operating certainty for our Syama operations and allows us to continue to deliver long-term benefits to our shareholders, stakeholders and local Mali communities.”
In addition to a lower income tax rate, the new Mining Convention would also guarantee that Resolute continue to pay the government of Mali royalties of 6%, while remaining exempt from custom duty on the importation of fuel, which based on current consumption saved some $20-million a year.
The new Mining Convention also saw Resolute making the commitment to provide increased leadership opportunities and senior management roles for Malians.
Meanwhile, the renewed mining permit is valid until March 2029, with Welborn pointing out that further renewals, for additional ten-year periods, would be available until the exhaustion of the Syama mineral resource.