Objections to Namibian windfall tax proposal

A proposed Namibian mining windfall tax could place an unbearable burden on the industry and damage the uranium-rich country’s reputation as an investor-friendly destination, according to a leading mining company.

“We don’t see room for an additional take for government unless taxation is relaxed in other areas,” Jonathan Leslie, chief executive of uranium explorer Extract Resources, told Reuters.
“We can look at the total take, but the industry must remain competitive,” he added.

Mines minister Isak Katali dropped his windfall tax bombshell in a recent speech to the Chamber of Mines, saying the government “should benefit in good times beyond normal taxes and royalties.”

He gave no details, and invited mining companies to submit proposals for a tax system that would lift state revenues.

“We see his comment in the context of an exchange of ideas on a total taxation package for the mining industry, and on how the mines should be treated,” Leslie said.

Namibia produces 10% of the world’s uranium, but with new mines coming on stream, output is expected to quadruple within the next few years.

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Time: May/23/2011    See In: index• Namibia

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