031110 A new study has found that SA coal reserves have been significantly downsized since 2003.photo by Simphiwe Mbokazi 453

Cape Town - Mozambique is close to finalising a new fiscal regime for its mining and petroleum sectors and may raise royalty taxes for coal, its key export commodity, the deputy mines minister said on Thursday.

“We are in discussions, so we don't know what will happen but probably we will change some of them,” Abdul Razak Noormahomed told Reuters on the sidelines of an African coal conference in Cape Town.

“Probably coal can be a little bit higher, but we will see. It is going to be submitted this year and likely implemented by the end of this year,” he added.

Currently, royalty taxes for coal stand at 3 percent, lower than the 5 percent for base metals and 10 percent of diamonds. - Reuters