Article 161: Tax on the Production of Mineral Substances other than Precious Metals

Any holder of a Mining Operation Title who proceeds to extract Mineral Substances, other than Precious Metals, is liable for a tax on the extraction of these Mineral Substances. However, Radioactive Substances are not subject to this tax.

The event that triggers this tax occurs when Mineral Substances are first extracted from the top of the mine. It is payable no later than the 15th of the month following the month when the event that triggered the tax occurred. However, with regard to the extraction of Precious Stones and other Gemstones, the tax is payable on the date of the evaluation by the BNE.

The basis of this tax is the value of the Mine Substance extracted. This value is determined by virtue of the Mineral Substance content (also called the “grade”), the weight of Mineral Substances extracted and the price index applicable to the Mineral Substance extracted. In particular, the tax basis for the extraction of category 1 substances will be adjusted in proportion to their actual content.

The unit of weight is defined in the table below. It is the metric tonne (Mt) for Mineral Substances other than Radioactive Substances, Precious Stones and other Gemstones, the pound (lb) for Radioactive Substances and carat (Ct) for Precious Stones and other Gemstones. If the unit of weight extracted contains several types of Mineral Substances, each mineral substance will be taxed separately according to its content per unit of weight extracted and the price index applicable to it.

The price index applicable to the mineral substance extracted is defined in the table below according to the nature of the mineral substance extracted.

However, as an exception to the above, the value of Precious Stones and other Gemstones is determined by the BNE according to the quality of the stones and their carat weight.

The tax rate on the extraction of Mine Substances is defined in the table below, according to the nature of the mine substance extracted.

Any delay by more than thirty (30) calendar days in the payment of the tax on Mineral Substances is punishable with sanctions that could culminate in the revocation of the Mining Title Permit as well as the closure of the extraction facilities.

When the Mining Activity is not directly undertaken by the holder of the Industrial or Semi-industrial Mining Operation Permit for mineral substances or a Mining Concession, but rather by a Subcontractor of the latter, such Subcontractor is jointly and severally liable with the holder of the Mining Title for payment of tax on the extraction of Mineral Substances.

The terms for the declaration and payment of the tax on the extraction of Mine Substances are determined by regulation.

This tax is deductible when calculating taxable profit.

Tax rates on the extraction of Mineral Substance, by Substance:

Key:
Ct : Carat = 0.20519655
LB : US Pound = 0.4535923 kg
LME : London Metal Exchange
Mt : Metric Tonne

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.

The price index and the rate for any Mineral Substance not indicated in the above table will be determined by regulation.

The tax rates defined in the above table will be increased by fifteen per cent (15%) beyond an initial period of production per Mineral Substance indicated in the table below, if the holder of the Mining Title has not supplied a report approved by the Minister certifying that the holder of the Mining Title has undertaken at least eighty per cent (80%) of the works relating to the construction of the processing infrastructure in Guinea.

Initial Period of Production by Mineral Substance