Mozambique was close to finalising a new fiscal regime for its mining and petroleum sectors and might raise royalties for coal, its key export commodity, Deputy Mines Minister Abdul Razak Noormahomed said yesterday.

“We are in discussions, but probably we’ll change some,” Noormahomed said on the sidelines of the Investing in African Mining Indaba in Cape Town. “Probably coal can be a little bit higher… It is going to be submitted and likely implemented by the end of the year.”

Royalty taxes for coal stand at 3 percent, lower than the 5 percent for base metals and 10 percent on diamonds.

Noormahomed said Mozambique planned a flat rate of 32 percent capital gains tax on transactions in the mining and energy sectors for 2014, aiming to strengthen the regime where tax gathered sometimes undershoots 32 percent.

The review formed part of a broader regulatory overhaul, with amended mining laws expected to be passed this year. – Reuters