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Group 2

Group 2. -Investment Attraction vs Government Benefits -Expectant Stakeholders: Government (revenue/expenditures) Investors/Mine Companies (profit, growth etc) General Public (employment, compensation, business motives) Environmental Groups e.g CSOs (environmental protection, .

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Group 2

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  1. Group 2 -Investment Attraction vs Government Benefits -Expectant Stakeholders: Government (revenue/expenditures) Investors/Mine Companies (profit, growth etc) General Public (employment, compensation, business motives) Environmental Groups e.g CSOs (environmental protection,

  2. Attracting Investment 1 a : Potential Investors in setting up new initiatives • No difficulties, law supports it and is conducive • Legal entity, prove of fin. and tech capacity • Stages/time for license application (30 days), but…. 1b: Treatment of investors after investment (Taxation) • Exemptions for exploration, but only 3 years for exploitation • Flat rate contributions at set rate – fairness & equity issues 1c:Protection of Investors (Resolving Conflict) • State declares intention not to…on expropriation but is vague (gives state room to do otherwise) - weak • Friendly resolutions, with arbitration for any further conflicts • International Decree (CIDIR 1996, ACICP - Mali is francophone)

  3. Maximizing Benefits 2a: Government Ensuring constant flow of revenues - For exploitation, 10% free-carried share belongs to state; - Tax on corporate income during exploitation - Flat rate contributions at set rate for exploration 2b: Community protection by Government - state can purchase additional 10% stake ( in cash)….but to public?? - No more than 3 licenses per company within the same district - Law does not adequately address issue of community protection regarding (compensation, relocation costs, customs, employment), EMP, EIA needs 2c: Government Difficulty in Tax administration - Complexity of managing Multiple taxes; if mine ores get finished before paying taxes (reclamation fees); - Housing taxes and statistical fees ???

  4. Summary – comparisons with other countries • Complexity and difficulty to administer e.g from application process to exploitation processes– encourages corruption at different levels • Environmental issues are not covered • Validity of license and termination not adequately specified • Full document was not available for deeper reference

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