https://www.miningweekly.com

Sundance inks Republic of Congo mining convention

Sundance inks Republic of Congo mining convention

Photo by Reuters

25th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Iron-ore developer Sundance Resources has signed the Nabeba mining convention with the government of the Republic of Congo.

The signing follows the issue of the mining permit, which was approved in December 2012, and outlines the fiscal and legal terms and conditions that Sundance has to satisfy for the development and management of the 35-million-tonne-a-year Nabeba iron-ore project.

Sundance MD Giulio Casello said on Friday that the signing of the convention was the culmination of the strong support given to the project by the Congo-Brazzaville government, since the company started exploration at Nabeba in 2010.

“In just four years we have achieved extraordinary success in the Republic of Congo, with the Nabeba deposit now boasting a significant high-grade hematite reserve, as well as substantial itabirite resources. This world-class inventory will underpin a successful mining operation for many years, generating substantial economic benefits, including employment opportunities for the Congo people.”

Under the key terms of the convention, Sundance would have a 25-year operating licence, effective from the publication of the mining permit decree, and which was renewable for successive terms of up to 15 years, depending on the remaining reserves.

The company would also be given a five-year corporate tax holiday following the start of production, after which corporate tax would be levelled at a rate of 7.5% for five years, and 15% thereafter.

A mining royalty equal to 3% of the mine gate value of all the extracted ore would also be applied. Furthermore, the state government would take a 10% interest in Sundance subsidiary Congo Iron SA, which would be non-dilutory during the term of the convention.

Furthermore, there would be no fees, levies or taxes charged on the export of iron-ore from the mine, and there would be exemptions from import duties and taxes on plant and equipment imported temporarily for project construction, and limited import duties and taxes on other mining equipment and consumables throughout the production phase.

Congo Iron SA would make yearly contributions to a fund established to promote the economic, social and cultural development of local communities, which would be impacted by the Nabeba mine.

The Nabeba deposit would underpin Stage 1 of the project development, which was a 35-million-tonne–a-year direct shipping ore operation, which would run for a minimum of ten years.

Casello said that the signing of the convention meant that Sundance had taken another significant step towards finalising the preconditions for financing and the start of construction.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Latest News

A Sasol sign at its Secunda plant
Sasol reports 34% decline in half-year profit
Updated 2 hours 19 minutes ago By: Reuters
Fortescue CEO Andrew Forrest
Billionaire Forrest backs carbon levy on Australia fossil fuels
Updated 1 hour 53 minutes ago By: Bloomberg

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 23 February 2024
Magazine round up | 23 February 2024
23rd February 2024
Resources Watch
Resources Watch
21st February 2024
Photo of Martin Creamer
Major hydrogen economy developments in SA
21st February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.155 0.189s - 106pq - 2rq
Subscribe Now