Government reforms and capacity building projects have facilitated mining investment in Mauritania.
- The Project of Institutional Reinforcement of the Mining Sector (PRISM) is a project initiated by the Government of Mauritania with their development partners to improve the capacity and competitiveness of Mauritania to attract private mining investments. Results include the acquisition of new geophysical airborne data covering about three quarters of the national territory, the acquisition of new regional geochemical data the updating of the geological mapping for the whole country at the 1/500,000 scale, and for the R'Gueïbat Ridge and the Mauritanides at 1/200,000 scale.
- Adhesion in September 2005 to the Extractive Industries Transparency Initiative (EITI) and the establishment of new structures such as Mining Registry and Mining Inspection Directorates have created a clearer and better thought out administrative process.
- The 1999 Mining code was reviewed in 2008 and updated again in 2011 as a result of lessons learnt over the past decade and in order to keep it competitive and attractive to mining investors.
- A mining school is due to open in Mauritania in the very near future.
NEW MINING CODE
2 STAGES: EXPLORATION and EXPLOITATIONThe 1999 Mining code was reviewed in 2008 so as to take into consideration lessons learnt over the past ten years and maintain it at the same time competitive and attractive to mining investors
Exploration: Exploration tenements are granted on the basis of “first come first served” to applicants for a period of three years, renewable twice for same duration (overall 9 years for the exploration);
Mining: Provided that the owner has sufficient technical and financial capacities, granted to an exploitation company established in Mauritania for thirty years and renewable many times for duration of ten years per period.
Framework
EXPLORATION- The holder of an exploration licence will have in particular to ensure:
- Payment of progressive surface fee year by year from 2.000 UM (first year) to 24.000 UM (9thyear) instead of fee per period;
- Minimum expenditures per period with at least 15.000 UM/km² (I), 20.000 UM/km² (II) and 30.000 UM/km² (III) with minimum work requirement for renewal;
- Guaranty for good execution of the work program and prior payment of fees and rights;
- Start field work within a three month term from the date of granting.
- The holder of the tenement that is issued based on exploration licence provided that he has sufficient technical and financial capacities;
- Tenement is granted to an exploitation company established in Mauritania, for a period of thirty (30) years and renewable many times for a duration of ten (10) years;
- Work on field must start within 24 months from the date of granting.
In addition two main changes were brought in the mining law (by law n°2009-026 of April 7, 2009) as follows:
1) The principle of overlapping of mining tenements is restored as far as it refers to different groups of mineral substances (likewise the 1999 Mining Law);
2) The State participation in the capital of any exploitation company is from now on considered to better accompany the project implementation like in most West African countries: In this respect, there is a 10% free equity and an option for acquiring a maximum of 10% cash participation in the exploitation company.
CUSTOMS REGIME:Total exemption during the exploration period taking into account sub-phases of exploration, instalment and production either preliminary or normal
FISCAL REGIME :- Deduction regime according to practice in the mining industry
- Competitive rates :
- Exemption during the first 3 years of production
- Royalties are symbolic and may be deducted
- Tax exemption on dividends that are reinvested
Take into consideration present and future environmental requirements as well as the closure of a mine
MINING CODE Mining tenements can be transferred. Stability and guaranty of fiscal and legal conditions related to mining tenements. Arbitration: member of the Washington convention dated of 18 March 1965. Flexible exchanges procedures
Framework MODEL MINING CONVENTION The mining code is complemented by a model mining convention to be up dated soon in compliance with the new regulations provided in the mining code; Competitive legal and fiscal framework with attractive fiscal and customs terms; The fiscal and customs regime stabilized and secured over the duration of the mining tenement; Industrial quarries will benefit from the provisions of the model mining convention; All fiscal and customs rights and taxes are gathered and presented in a unique document