Bloomberg News

Namibia Plans to Raise Mining Company Taxes, Minister Says

July 22, 2011

(Updates with industry details in fourth paragraph.)

July 22 (Bloomberg) -- Namibia plans to raise the corporate tax rate on mining companies other than diamond producers in the next financial year, Finance Minister Saara Kuugongelwa-Amadhila said.

The country plans to raise the tax on mines other than gem operations to 44 percent from 37.5 percent, Kuugongelwa-Amadhila said on state radio today. Diamond mines are taxed at a 55 percent level, she said. A capital gains tax will also be imposed on the sale of mineral rights or operation, she said.

“I am hoping to have these changes introduced in the next financial year,” she said. The amendments will need to be tabled in parliament, Kuugongelwa-Amadhila said.

Namibia is the world’s biggest miner of offshore diamonds, the fourth-largest uranium producer and also has deposits of gold, coal and copper. Rio Tinto Plc, the world’s second-biggest mining company, Extract Resources Ltd. and De Beers have operations in the southern African country.

--Editors: Gordon Bell, Philip Sanders

To contact the reporter on this story: Chamwe Kaira in Windhoek at ckaira@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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