Vietnam Parliament sends back mineral royalties proposal for review
TORONTO (miningweekly.com) – ASX- and TSX-listed gold miner Besra on Tuesday welcomed a decision by a standing committee of Vietnam's National Assembly to return, for a second time, a proposal to increase royalty rates on gold and other minerals to the Finance Ministry for review.
The committee cited concerns about foreign investment and Trans-Pacific Partnership Agreement negotiations.
The proposal, presented by the Finance Ministry, sought to increase royalty rates on gold to 17% and included proposed increases for several other minerals.
“The decision sends a welcome signal that Vietnam is mindful of foreign investors. The company will continue to work with the government to show how it can increase government revenue by increasing production.
“Reduced royalties will encourage new capital investment that will result in higher production and longer-life mines, leading to sustainable increases in royalty revenue,” CEO John Seton said.
Seton further explained that by his calculations, if the royalty was reduced to 9%, planned new capital expenditure would result in more than 20% production increases at Phuoc Son, which would “far exceed” the revenue increase sought by a royalty increase.
A more attractive royalty regime would also potentially attract new investment by other international companies, the company said in a statement.
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