Page 12 - Sundance Resources 2014 Annual Report

10 SUNDANCE RESOURCES LIMITED ANNUAL REPORT 2014
SIGNINGOF THE NABEBAMININGCONVENTION,
REPUBLICOF CONGO
• There will be no fees, levies or taxes charged in respect
to the export of iron ore. There will be exemptions
from import duties and taxes on plant and equipment
imported temporarily for project construction and limited
import duties and taxes on other mining equipment and
consumables throughout the production phase; and
• Congo Iron SA will make annual contributions to a fund
established as an association or non-profit foundation
whose purpose is to promote the economic, social
and cultural development of local communities that are
impacted by the Nabeba Mining Operations.
Signing of the Convention followed the issuing of the 25-year
Nabeba Mining Permit, which was approved by the Ministerial
Council for the Republic of Congo in late December 2012 and
a Presidential Decree confirming the grant of the mining permit
to Congo Iron SA on 6 February 2013.
The key terms of the Convention are:
• 25-year operating license effective from the publication of
the Mining Permit Decree (February 2013) and renewable
for successive terms of up to 15 years, depending on
remaining reserves;
• A mining royalty equal to 3% of the mine gate value of the
ore extracted from the mines in the Operating Perimeter
(effectively being sale price of the ore less transport and
handling costs);
• Five-year corporate tax holiday following start of
production. Corporate tax will then be levied at a rate of
7.5% for five years after and 15% thereafter;
• The State will take a 10% stake in Congo Iron SA, which
will be non-dilutory during the term of the Convention;
Giulio Casello meeting with the President of the Repubic of Congo, Denis Sassou Nguesso
On 24 July 2014, the Congo Government signed the Nabeba Mining Convention
(Convention). It outlines the fiscal and legal terms and the conditions to be satisfied by
Congo Iron SA for the development and management of the Nabeba Iron Ore Project.