Friday, May 24, 2013

Tanzania Makes $206 Million Atomic Tax Claim

Tanzania Makes $206 Million Atomic Tax Claim
Tanzania is demanding almost $206 million in taxes from Russian state uranium company ARMZ, which has won a license to build the East African country's first uranium mine, the energy minister said on Thursday.
Atomredmetzoloto, or ARMZ is the mining arm of Rosatom, which also builds nuclear reactors.
Tanzania's tax claim relates to the Mkuju River project in southern Tanzania, which is operated by Toronto-listed Uranium One but owned by ARMZ, the Canadian uranium producer's majority shareholder.
"The Mkuju project … was sold in December 2010 to ARMZ of Russia after acquiring shares from the parent company, Mantra Resources of Australia," Energy and Minerals Minister Sospeter Muhongo said in a newspaper advertisement of his ministry's 2013/14 budget proposals, which were discussed in parliament on Wednesday.
"Following this deal … the Tanzania Revenue Authority is claiming $205.80 million, of which $196 million was supposed to have been paid as capital gains tax and $9.8 million as stamp duty."
Muhongo said the company had disputed the tax claim and the matter was now awaiting a court ruling.

Read more:
The Moscow Times

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