Mozambique Mining & Finance: Tax Authority plans to collect further capital gains from mining groups

The Tax Authority (AT) of Mozambique is negotiating the payment of taxes on capital gains with several international groups, such as Brazil’s Vale, said the president of AT quoted in the Monday edition of daily newspaper O País.The capital gains being charged to the Brazilian group stem from the sale, agreed in 2014 but not yet concluded, of assets in Mozambique to the Japanese group Mitsui & Co, namely 15 percent in the Moatize mine in Tete province for US$450 million and 50 percent in the railroad between Moatize and Nacala for an additional US$313 million.

Amelia Nakhare said that from the Tax Authority’s point of view the deal is not completed and, although she did not mentioned the amount of capital gains demanded of the Brazilian group, she added that ” it will be significant.”

The mining group has claimed an impairment of US$2.403 billion in its 2015 accounts relating to coal assets in Mozambique, which are now worth US$1.729 billion.

In addition, the operation in Mozambique has been losing money at a rate of US$508 million in 2015 and US$506 million in 2014. (macauhub/BR/MZ)