Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Investors interested in exploration and mining will find Kenya less attractive as a result of a new mining tax, reports Daily Nation
In an effort to address its budget deficit, the government introduced a withholding tax on the gross proceeds from share or property transfers in the extractive sector.
PricewaterhouseCoopers called the new tax measure punitive since it doesn’t take into account associated costs. A capital gains tax would have allowed for a deduction of attributable costs.
While the government’s 2012 finance bill initially proposed to re-introduce a capital gains tax for the transfer of shares or property, it was later replaced by a withholding tax.
In 1985, Kenya had suspended its capital gains tax to encourage savings and investment.
Image: Shutterstock / Emjay Smith
