Mozambique May Raise Coal Royalty Tax

Reuters reported that Mozambique’s deputy mines minister, Abdul Razak Noormahomed, said Tuesday that the country may raise royalty taxes on coal, a key export.

As quoted in the market news:

‘We are in discussions, so we don’t know what will happen but probably we will change some of them,’ Abdul Razak Noormahomed told Reuters on the sidelines of the Investing in African Mining Indaba in Cape Town.

‘Probably coal can be a little bit higher, but we will see. It is going to be submitted this year and likely implemented by the end of this year,’ he added.

Currently, royalty taxes for coal stand at 3%, lower than the 5% for base metals and 10% for diamonds.

Click here to read the full Reuters report.