Article 161-I: Tax on the industrial and semi-industrial production of Precious Metals

Any holder of a Mining Operation Title who proceeds to extract Precious Metals is liable for tax on the industrial or semi-industrial production of the Precious Metals.

The event that triggers this tax occurs when Precious Metals are first extracted from the top of the mine.

The basis of the tax is the value of the ingot as determined during weighing at the Central Bank of Guinea, taking ontointo account the purity of the precious metal and the price of precious extracted metal at the London PM Fix.

The tax is payable at the weighing of the aforementioned ingots at the Central Bank of the Republic of Guinea.

The tax rate on the extraction of Precious Metals is fixed at five per cent (5%).

When the weighed ingot contains Precious Metals other than the precious metal it is principally composed of, these other Precious Metals contained in the ingot are subject to the tax on the industrial or semi-industrial production of Precious Metals after each quarter of the calendar year, as determined by regulation. The BCRG will, according to the terms established by regulation, take a sample of the weighed ingots with a view to verifying the content of these ingots.

Any delay of over thirty (30) calendar days in the payment of the tax on the industrial or semi-industrial production of Precious Metals is punishable by sanctions that could culminate, in the case of prolonged or repeated delays, to the revocation of the Mining Title as well as the closure of the extraction facilities.

When the Mining Activity is not directly carried out by the holder of the Mining Operation Title but rather by a Subcontractor of the latter, such Subcontractor is jointly and severally liable with the holder of the Mining Title for the payment of the tax on the industrial or semiindustrial production of Precious Metals.

The terms for the declaration and payment of the tax on the industrial or semi-industrial production of Precious Metals are determined by regulation.

This tax is deductible when calculating taxable profit.

TAX RATE ON THE INDUSTRIAL OR SEMIINDUSTRIAL PRODUCTION OF PRECIOUS METALS

Key:

OZ: Troy Ounce = 31.103477 g

A new price index will be established by joint order of the Minister in charge of Mines and the Minister in charge of Finance if the price index indicated in the above table becomes obsolete.