Strategic Reforms

• Membership in the Extractive Industries Transparency Initiative (EITI), since September 2005 (participatory approach: State, civil society, private sector)
• Individual and investments safety
• Investment development opportunities in the sector. Led to an important commitment from mining investors
• Improvement of the regulation and fiscal framework and creation of general investment condition incentives

Major reforms - 2

A coherent institutional framework

A complete and attractive legal framework

(1 code, 3 app. Decrees +1 Mining Convention in 2002)

Simplification administrative procedures

• Reconnaissance Phase : Authorization is granted by the Ministry of Mining without particular conditions
• Exploration Phase : Authorization is given for three years and renewable twice for the same duration, under one condition, that is technical and financial conditions of the investors are verifiable;
• Exploitation Phase: Authorization given when technical and financial capacities of the investor are deemed satisfactory. The permit is given for duration of thirty years, and renewable several times and every time for duration of ten years.

Major reforms - 4

Tax and custom incentives

• Custom Regime : Total exemption of customs dues during the exploration period
• Fiscal Regime : Total exemption of fiscal dues for import, taxes and fees during the exploration period ; Very competitive rates : (i) total exemption duration the first three years of exploitation; (ii) Minimal royalties rates ; (iii) tax exemption on dividends that are re-invested
• Simplification : All tax and custom regimes are gathered and presented in one single document
• Accounting Procedures: take into consideration environmental requirements up to the mine closing;

Major reforms - 5

At technical level

• Within the framework of PRISM (BM, BID and CF)
• Geological coverage at national level
• Geophysical coverage of airport zones with metallogenic potential
• Update of SIGM and SIGE
• Establishment of a mining registry : Transparent and fair administration of mining titles
• Training of skilled personnel in different technical fields
• Diversification of production : Opening of new mines (Gold, Iron, P and Cu)

Evolution of investments

• Infrastructures related to water and transport are insufficient
• Insufficient national Professional capacities

Anticipated short and medium term Reforms

• Consolidation of efforts already made to promote and develop growth opportunities (Promotion of exploration programs)
• Pursuing the implementation of PRISM project - Finalizing the assessment of the mining potential including social and environment components
• Revision of mining law and law pertaining to mining convention
• Extension of the airport geophysics on the national territory