Mozambique says it's in talks with Rio Tinto over capital gains tax

Mozambique’s government said it’s in talks with Rio Tinto (RIO -0.7%) over capital gains tax on the company’s $4.2B acquisition of Benga coal mines from Riversdale Mining in 2011.

"At some stage, they have to follow local law," as the acquisition involved mining assets in Mozambique, a government official says.

Mozambique is looking to more than double the $1.3B it raised from capital gains tax on five deals since 2012 with another 10 transactions pending; Anadarko Petroleum (APC) paid tax of $520M after selling its 10% stake in a Mozambique gas field to ONGC Videsh.

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Comments (2)
  • memabeye
    , contributor
    Comments (5) | Send Message
    I still don't understand Mozambique's govt logic. Why are they chasing the buyer instead of the seller? They were caught sleeping at the wheel! Just because Rio is a major doesn't justify this tactic...ridiculous
    26 Mar 2014, 08:26 PM Reply Like
  • wiseoldman
    , contributor
    Comment (1) | Send Message
    he who has the power doesn't need logic
    27 Mar 2014, 04:53 AM Reply Like
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