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

|About: Rio Tinto plc (RIO)|By:, SA News Editor

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.