Lawmakers in Ivory Coast have approved a long-awaited mining code the West African country hopes will draw in more investors as it seeks to double gold output by next year. The worlds top cocoa exporter is seeking to lure investment into its long-neglected gold sector as part of a strategy to diversify away from agriculture and rebuild its economy after a decade of political turmoil. Ivory Coast has set ambitious targets for mining, which accounts for just 1 percent of gross domestic product (GDP) compared to agricultures 30 percent. It aims to produce 25 tonnes of gold in 2015, up from the 12 tonnes mined in 2013. The new code extended the period for holding permits from seven to 10 years, with the possibility of prolonging by a further two. It also stipulated future permit areas would be reduced to 400 square kilometres from 1,000 square kilometres. Crucially for investors, the code passed by parliament late on Tuesday did not contain a controversial tax on windfall profits proposed by former mines minister Adama Toungara. Jean-Claude Brou took over the mines portfolio in July last year, leaving Toungara in charge of the oil sector. Nouho Kone, president of the GPMC association of mining companies, welcomed the law: This mining code has made a big step forward, making it more attractive. Another source at GPMC said that discussions would continue between industry executives and the government on future tax rates but the topic of the windfall was not expected to feature. Christoph Wille of Control Risks said that while government targets for gold production were likely too optimistic, the country was attractive relative to other regional producers like Mali, Ghana and Burkina Faso because of its good infrastructure. Ivory Coast is really under-exploited compared to its neighbours as production only got underway shortly before the crisis, he added, referring to the disputed election of 2010. Africa-focused gold miner Randgold Resources and Endeavour Mining are present in the country. As well as gold, Ivory Coast is thought to have large reserves of iron ore, nickel and bauxite.
Posted on: Thu, 06 Mar 2014 08:58:18 +0000
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