CHILEAN mining company EASY to perceive a tax on mining ore
According to Chilean media, held a meeting of representatives of the government and the mining companies about the newly introduced tax on the extraction of ores fundamental differences have arisen. The representatives of mining companies opposed the measure, arguing that it increases the cost of companies, although they do not plan to leave the third country in the world in the production of copper. The company Placer Dome Inc., The fifth largest gold producer in the world, today announced that the introduction of the tax would have an impact on the company#39;s decision regarding the implementation of a new large-scale project for the extraction of copper and gold. #39;Approval of the tax, of course, brings some clarity to the situation, however, does not bring us joy, because the additional taxes the additional costs every working mine in Chile#39; - reported in Placer Dome Inc.
The decision to impose the tax was adopted last week by the Congress of Chile. The tax rate - floating, ie the amount of tax depends on the amount of ore: 0.5% operating profit of the company if the annual sales equivalent ore production 12 thousand tons of refined copper and gradually increase the tax rate to 5% increase that to 50 thousand tons / year. Mining companies consider legislation with several amendments, having regard to the introduction of a similar tax in neighboring Peru and the example reported that the introduction of a tax on the extraction threatens new investments in Chile, whose economy is so dependent on the well-being of high extractive sector. However, the introduction of the tax is the lesser evil compared with last year#39;s cancellation of the Congress of revenue producing companies percent of profits from the sale of additional volumes of ore. We are counting on these amounts, and they are painted in our budget #39;- according to officials of the mining company Kinross Gold Corp.
According to company estimates, the overall level of taxation of the mining sector in Chile will increase from 35% to 38.5%, which is equivalent to 0.6 cents per pound of copper ore mined in 2006-2007., And since 2008 - 1 cent per pound . Similar calculations of cost increase and lead miners of gold and other minerals. Vince Borg, the Speaker of Barrick Gold Corp., Launched the implementation of a major project on the border of Chile and Argentina, said that there is an agreement on fiscal stability. The Chilean government guarantees constant tax conditions for the implementation of the project. However, the company has the right (and may take a decision) to agree to the new taxation halt.
A tax on the extraction of ore found approval among the mass of the population of Chile, which has long expressed dissatisfaction with the low level of tax on the extraction of non-renewable mineral resources of the country.
