Sierra Leone plans hike in London Mining tax: draft

FREETOWN  - Sierra Leone plans to increase iron ore miner London Mining's tax rate by 19 percentage points to 25 percent, according to a proposed draft agreement between the miner and government seen by Reuters on Friday.
The changes to London Mining's lease agreement are outlined in a renegotiated agreement which is still to be signed by Sierra Leone's president and approved by parliament.
Sierra Leone's director of mines said the terms of the new agreement are not expected to change.
London Mining is one of two iron ore projects coming on line in Sierra Leone. British peer African Minerals has started shipping ore from its Tonkolili mine.
The initial agreement had fixed the London Mining's tax rate at 6 percent for the first 10 years of operation.
But the agreement had stirred local controversy because it failed to conform to the poor West African nation's mines and minerals code which specified a rate of 37.5 percent.
(Reuters)