By Devon Maylie
CAPE TOWN--Madagascar's mining ministry is in the process of
reviewing its mining policy and will seek to raise taxes paid by
foreign companies, the country's mining minister said Tuesday.
Companies currently pay a 2% royalty but that could be raised to
between 5% to 10%, Daniella Randriafeno told Dow Jones on the
sidelines of the Mining Indaba conference in Cape Town.
"People feel they don't get [the] benefit from mining and that
could lead to labor unrest," Ms. Randriafeno said.
"We need mining to spur growth. We want to make sure these
resources aren't a curse for us...we know companies will be scared
and may leave but [we] think they will come back."
The minister said a new law may not be passed before next year
because it wouldn't go to parliament until after May elections.
Currently Rio Tinto PLC (RIO) and Sherritt International Corp.
(SHERF), among other foreign companies, are developing projects in
Madagascar.
Write to Devon Maylie at devon.maylie@dowjones.com
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