(Bloomberg) -- Mali adopted a new mining code that will end operators' exemption from value-added tax and reduce the period during which companies are protected from fiscal changes.
The West African nation's council of ministers approved the regulations on Wednesday, saying the code “will contribute to a substantial increase in the share of mining productions” for the development of the country, according to the minutes that were distributed after a meeting of the cabinet. Mali is the continent's third-biggest gold producer and hosts operators such as Barrick Gold Corp. and AngloGold Ashanti Ltd.
Apart from the abolition of VAT exemptions during the production phase, operators will also lose certain customs and tax benefits and see their environmental protection obligations extend to the research phase. While the previous code allowed for so-called stability periods of 30 years, the cabinet's minutes didn't make it immediately clear what the new limit will be.
To contact the reporter on this story: Leanne de Bassompierre in Abidjan at ldebassompie@bloomberg.net
To contact the editors responsible for this story: Andre Janse van Vuuren at ajansevanvuu@bloomberg.net, Hilton Shone
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