Gold mining companies in Côte d’Ivoire have begun paying a new 8% royalty on revenue, backdated to January, after months of disputing the legality of the levy, three industry sources told Reuters.
Reuters previously reported that Côte d’Ivoire, which is seeking to diversify its economy, replaced the previous 3% to 6% range linked to contract terms with the flat 8% rate.
Miners initially refused to pay, arguing that the move was unlawful because their contracts shielded them from fiscal changes and entered negotiations with the government to have the new royalty scrapped.
However, companies have since started paying after the government refused to change its position, said the three people familiar with the matter, who declined to be named because they were not authorised to speak to the media.
‘Everyone has agreed to pay’
“Everyone has now agreed to pay – the question is whether penalties apply,” said one executive, adding that firms were rushing to settle to avoid fines.
Côte d’Ivoire’s mines chamber and its mines and finance ministries did not immediately respond to requests for comment.
David Whittle, West Africa chief operating officer at Fortuna Mining, confirmed compliance.
As gold and other commodity prices surge, West African states have been increasing fiscal pressure on miners.
While Guinea, Mali, Niger and Burkina Faso are taking direct steps, such as revoking licences or seizing assets, to get concessions from operators, other countries such as Ghana and Côte d’Ivoire have been introducing new laws and levies to boost state revenues.
