Library of Congress

Law Library of Congress

The Library of Congress > Law Library > News & Events > Global Legal Monitor

Burundi: Mining Code Amendments Proposed

(May 12, 2016) On April 13, 2016, Burundi’s Council of Ministers adopted a draft law amending some provisions of the Mining Code, Law No. 1/21 of October 15, 2013. (Anapaula Trindade Marinho, Burundi: Amendments to Mining Code – Bill Adopted, TAX NEWS SERVICE (May 6, 2016), International Bureau of Fiscal Documentation online subscription database; Loi No. 1/ 21 du 15 Octobre 2013 portant Code Minier du Burundi (Mining Code of Burundi), art. 1, Presidency of Burundi website; see also Wendy Zeldin, Burundi: New Mining Code Replaces 1976 Law, GLOBAL LEGAL MONITOR (Dec. 18, 2013).)

The draft law amends article 146 of the Mining Code to extend the scope of the surface fee (redevance superficiaire), so that it now applies to research permit holders.  The surface fee is an annual levy, due every January 1 and calculated per hectare, on mining exploitation permits and quarrying permits.  (Marinho, supra; Mining Code of Burundi, art. 146.)

The draft also amends article 151 of the Code, which, by revising upwards the fees and charges applicable to extracted and exported minerals, had fostered fraud and illegal exploitation. (Press Release, Council of Ministers, Item 1 (Apr. 13, 2016) (in French).) The amendment seeks to prevent “tax fraud and illegal exploitation of minerals in both the domestic and export markets” by reducing the ad valorem tax rate applicable to precious metals and precious stones from 2% to 0.8%.  (Marinho, supra.)  The ad valorem tax rates applicable to the production of base metals and other mineral substances, 3% and 1.5%, respectively, paid by quarry and small mine operators and by businesses that buy and sell minerals, will apparently remain unchanged.  (Mining Code of Burundi, art. 151.)