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Incentives for the solid minerals sector
Thu, 12 Aug 2010 00:00



The following incentives are available in the solid minerals sector:

  • 3 to 5 years tax holiday;
  • Low income tax of between 20% and 30%;
  • Deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project;
  • Possible capitalisation of expenditure on exploration and surveys;
  • Extension of infrastructure such as roads and electricity to mining sites;
  • The holder of a mining lease shall, where qualified, be entitled to:
    a) Depreciation or capital allowance of 75% of the certified true capital expenditure incurred in the year of investment and 50% in subsequent years
    b) Investment allowance of 5%
    c) Exemption from payment of customs and import duties
    d) Expatriate quota and resident permit for approved expatriate personnel
  • In addition to roll-over relief under the capital gains tax (CGT), companies replacing their plants
    and machinery are to enjoy a once-and-for-all 95% capital allowance in the first year with 5% retention value until the assets is disposed, 15% will be granted for replacement of an asset.

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