Chubut doubles revenues from mining taxes

- Thursday, August 23, 2007

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Southern Argentina's Chubut province has doubled revenues from taxes on mining and related services over the last three years, an official from the provincial mining department told BNamericas.

In 2004, the province brought in nearly 1mn pesos (US$315,000 at the current exchange rate) from mining taxes; the figure rose to 1.7mn pesos in 2005 and increased again to 2mn pesos in 2006, the official said.

"The increase is the result of stricter control over payments that companies are required to make and because of a higher number of requests [for mineral properties]," the official said.

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According to the official, some companies have applied for exploration rights in spite of a government bill signed in 2006 that freezes mining activity in parts of the province for the next three years with the exception of alluvial gold mining.

In 2003, US miner Meridian Gold (TSX: MNG, NYSE: MDG) suspended the Esquel gold project in Chubut after locals voted against the mine's development.

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