In 2012 the mining code (2008) was amended aimed at improving participation of investors capital gain tax, capped at not more than 10%, and provision for sliding scale (float based production) royalty
- For a tax stabilization regime guaranteeing that the only applicable taxes are those provided for in the mining agreement
- States that the state’s 10% participation cannot be diluted in the event of share capital increase
- Provides for various local content obligations.
- States that any transfer of more than 10% of the share capital of a mining title holder or any transfer causing a change of its majority shareholder will be subject to the Minister’s approval.
- Mining agreements are not mandatory and that the administration will have the discretionary right to decide whether a mining agreement should be entered into for each project.
The Ministry of Petroleum, Mines and Energy is responsible for coordinating, regulating, and overseeing activities in the fuel and non-fuel mineral industries. The Department of Mines and Geology implements the Government’s policies to enhance foreign investment in the mining sector of Mauritania. The Mining Law awards licenses based on a “first come-first served” basis of either Exploration License, or Mining License.
- Exploration License grants the holder privileges of only exploring the allotted area to explore if it has available resources to exploit. This license is valid for a duration of 3 years with the option to renew twice. The allotted area of land for this type license is 500 square K.M. excluding diamond concessions.
- Mining license on the other hand grants the holder the privilege to exploit available resources discovered. This license is valid for a period of 30 years and an option for ten year renewal.