Resolute Mining Ltd (ASX:RSG) has entered a new Mining Convention Agreement with the Mali government for its Syama Gold Mine in Mali.
The new agreement guarantees a new 10% lower income tax rate of 25%, and has resulted in the Mali government granting a 10-year extension to the Syama Mining Permit.
Resolute will also benefit from a range of other concessions and guarantees, including exemption from Malian customs duty on the importation of fuel.
Furthermore, Resolute has also been guaranteed that royalty rates, taxation regime, and fiscal provisions can only be improved by future legislative amendments.
READ: Resolute Mining achieves record quarterly gold production from Syama
Resolute’s managing director and CEO John Welborn said: “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.
“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.”
Mali is a preferred jurisdiction
“Mali is a preferred location for Africa’s most successful gold miners.
“We have successfully negotiated a fair and balanced Mining Convention which delivers lower income tax and stable royalty rates for Resolute while securing a meaningful economic contribution for the people of Mali for many years to come.”
Mining Permit holders required to enter Mining Convention Agreement
Holders of a Mining Permit in Mali are required to enter into a Mining Convention Agreement with the Malian Government prior to commencement of exploration or mining activities.
This agreement operates in parallel with the Mining Permit and, with the applicable Mining Code and other relevant legislation, governs the conditions that apply to exploration and mining operations.
These conditions cover work obligations, reporting, taxes, duties, customs, local content, training obligations, and Mali Government equity participation.
The Mining Convention Agreement governing Syama commenced on 31 July 1987 and had a term of 30 years prior to being extended to align with the expiry of the Syama Mining Permit on 29 March 2019.