OTCQX:DMMIF - Post by User
Post by
Nikolaion Jul 27, 2011 8:33pm
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Post# 18880979
Gov't target is much higher than 50%
Gov't target is much higher than 50%in its own words (translated below). The >50% is baseline only and most tend to agree is not really an issue.
The high proposed royalty coupled with 70% windfall tax are steep, though gov't still needs to establish the Au price relative to WFT. The collective burden proposed by government is why they still have no agreements. All those perks going to the State may discourgage grass roots exploration because the end game (profitability of miners) is degraded. Many governments are tinkering with tax/royalty schemes, and as one commentator put it, there could be less risk in dealing with a jurisdiction widely perceived to be at the bottom of the barrel (eg. Ecuador) versus a "safe" market (eg. Australia, etc.) that could shock investors with new taxes.
Economic Benefits to the State:
Constitution, Article408GREATER than 50% (targetgreatly exceedthis figure).
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The Ministry of non-Renewable Resources' presentation, see Slide 25 of 33:
Click aquí para descargar presentación "Política y Proyectos Mineros"
https://www.mrnnr.gob.ec/index.php?option=com_docman&task=doc_download&gid=1015&Itemid=50&lang=es