Gold mining companies operating in Ivory Coast have started paying a new flat 8% royalty on revenue, backdated to January, after months of resisting the levy and disputing its legality, three industry sources told Reuters.
The country, the world’s top cocoa producer, replaced its previous royalty system of 3% to 6%, which varied by contract, with the uniform 8% rate as part of efforts to diversify its economy.
Miners initially refused to comply, arguing that their contracts protected them from fiscal changes, and entered talks with the government to have the levy removed.
Those negotiations failed, and companies have now begun paying after authorities refused to reverse the decision, according to the sources, who requested anonymity because they were not authorised to speak publicly.
“Everyone has now agreed to pay, the question is whether penalties apply,” one mining executive said, adding that companies were rushing to settle outstanding payments to avoid fines.
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Ivory Coast’s mines chamber, along with the mines and finance ministries, did not immediately respond to requests for comment. David Whittle, West Africa chief operating officer at Fortuna Mining, confirmed compliance, saying, “We’ve made our payments of 8%, backdated from when it was introduced.
We didn’t see negotiations heading anywhere.” He added, “The gold price has taken care of it,” referring to the roughly 65% rise in gold prices this year.
Major mining companies in Ivory Coast include Perseus Mining, Endeavour Mining, Fortuna Mining, Allied Gold, and newer entrants such as Montage Gold. As gold and other commodity prices climb, West African governments have stepped up fiscal pressure on miners, straining relations with operators who warn that higher costs could deter investment.
While military-led governments in Guinea, Mali, Niger, and Burkina Faso have taken more aggressive actions such as revoking licenses or seizing assets, countries like Ghana and Ivory Coast are instead introducing new laws and levies aimed at boosting state revenue.
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Image Credit: Surperformance SAS
