By Bridgett Milton
The House of Representatives Tuesday, 30 November 2021, passed into law the Mineral Development Agreement between the Government of Liberia and the Bao Chico Resources of Liberia, Ltd.
The House took the decision following a report from a joint committee on Concession & Investment, Mines & Energy, Ways, Means, Finance and Development Planning, and Judiciary.
Accordingly, the Mineral Development Agreement between the Government of Liberia and Bao Chico Resources Liberia, Ltd, is for the extraction of iron ore, to be operated under a Class ‘A’ Mining License for an initial term of 25 years from the effective date.
According to the report, the company shall pay all taxes and duties and conform to all procedures pursuant to applicable law and the company shall be taxed on its net taxable income at a rate not to exceed 25 percent.
The report also states that the company shall pay the Government’s royalties on all its mineral product sales and transfers for iron ore, a royalty of 4.5 percent determined in accordance with Section 703 of the Revenue Code and for other minerals, as provided for in the Revenue Code and pay into the Government’s general revenue account a signature fee of US$3 million.
According to the report the payment will be done by the following schedule: that US$1.5 million within 30 business days of the effective date; (ii) US$1 million on the first anniversary of the effective date; and (iii) US$0.5 million on the second anniversary of the effective date.
The report further stated that in the space of 10 years following the effective date, the company shall pay an annual lump sum amount of US$60,000 to be paid in two installments of US$30,000 each on January 15 and July 15 of each calendar year.
In keeping with Section 18.4 of the Mining Law, the company shall make one-time contribution of US$10,000 to the Mineral Development Fund, payable on the effective date and pay an annual surface rental fee for all land within the production area of US$50,000 from the effective date up to the fifth anniversary of the effective date.
From the sixth anniversary through the term, the company shall pay an annual surface rental fee for all land within the production area of US$30,000https://thenewdawnliberia.com/house-declines-bao-chico-agreement/.