JOHANNESBURG (miningweekly.com) – The Turkish Ministry of Economy has approved an investment incentive certificate for Canadian miner Centerra Gold’s Oksüt project.
The certificate provides tax related advantages such as a decrease of corporate income tax rate from 20% to 2%, VAT and customs duty exemptions, and government support for social security premiums and interest payments on loans, the TSX-listed gold company reported on Monday.
“The approval of the investment incentive certificate is another milestone for the Öksüt project. Our local team worked diligently to maximise the taxation benefits available to the Öksüt project,” president and CEO Scott Perry said in a media statement.
Last month, Centerra received the pastureland permit for the project, completing the permitting process for the project.
The Öksüt project will mine about 26.1-million tonnes of ore at a grade of 1.4 g/t gold, containing about 1.2-million ounces of gold over a mine life of eight years from two openpits – the Keltepe and the smaller Güneytepe pit.
The Centerra board is expected to announce a construction decision by the end of the month.
A 2015 feasibility study found that, based on a gold price of $1 250/oz, the project would have an after-tax net present value of $242-million and a 42.5% internal rate of return. All-in costs, including taxes, were estimated at $777/oz and all-in sustaining costs came in at $490/oz.
Preproduction expenditures and construction capital would be $221-million, including a $25-million contingency. Payback on construction capital and preproduction expenditures was expected to be 2.5 years after production started, with life-of-mine sustaining capital being $10-million, excluding $30-million of capitalised stripping.