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IMF Country Report No. 16/84

March 2016

MALI

TECHNICAL ASSISTANCE REPORT—MINING TAXATION—MODELING OF FIVE MINING OPERATIONS

This Technical Assistance Report on Mali was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in June 2015.

Copies of this report are available to the public from

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INTERNATIONAL MONETARY FUND

Fiscal Affairs Department

MALI

MINING TAXATION: MODELING OF FIVE MINING PROJECTS AND SHARING OF THE MINING rent

TECHNICAL ASSISTANCE REPORT

Grégoire Rota Graziosi and Bertrand Laporte

June 2015

This contents of this report constitute technical advice provided by the staff of the International Monetary Fund (IMF) to the authorities of Mali (the “TA recipient”) in response to their request for technical assistance. This report (in whole or in part) or summaries thereof may be disclosed by the IMF to IMF Executive Directors and members of their staff, as well as to other agencies or instrumentalities of the TA recipient, and upon their request, to World Bank staff and other technical assistance providers and donors with legitimate interest, unless the TA recipient specifically objects to such disclosure (see http://www.imf.org/external/np/pp/eng/2013/061013.pdf, Operational Guidelines for the Dissemination of Technical Assistance Information). Disclosure of this report (in whole or in part) or summaries thereof to parties outside the IMF other than agencies or instrumentalities of the TA recipient, World Bank staff, other technical assistance providers and donors with legitimate interest shall require the explicit consent of the TA recipient and the IMF Fiscal Affairs Department.

Table of contents

  • Acronyms

  • Preface

  • I. Introduction

  • II. Rent sharing Analysis

  • Tables

  • 1. The Malian industrial mining sector

  • 2. Key Fiscal parameters for the calculation of the AETR

  • 3. Main Fiscal parameters used for international comparison

  • Figures

  • 1. Annual revenue in USD (constant 2014 dollars) obtained from five

  • 2. Annual production from five mining projects (extensions and new projects)

  • 3. AETR (%) according to Mining Code applied

  • 4. Breakdown of Government Revenue by Mining Code

  • 5. Sensitivity of AETR (left graph) and IRR (right graph) to a change in the international price of gold

  • 6. Sensitivity of AETR (left graph) and IRR (right graph) to variations in the cost of production

  • 7. International comparisons: sharing of mining rent (AETR) according to mining fiscal regime in Burkina Faso, Ghana, Mali, and Mauritania

  • 8. International comparisons: IRR according to mining sector tax regime in Burkina Faso, Ghana, Mali, and Mauritania

  • Boxes

  • 1. Modeling of mining sector income – possible uses of the FARI model

  • Annexes

  • Annex 1. Annual request for information from mining industry companies – sample standardized form

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Mali: Technical Assistance Report-Mining Taxation: Modeling of Five Mining Operations
Author:
International Monetary Fund. Fiscal Affairs Dept.