Can you provide an overview of KSK Avocats and the services it offers?

Certainly. KSK Avocats was established in 2008 and has grown from a team of three lawyers to become one of the largest law firms in Côte d’Ivoire, now consisting of eighteen experienced lawyers. We offer a wide range of legal services to governmental bodies and various industries, including banking, energy, and mining. In the mining sector, we have developed expertise in assisting mining companies, particularly in gold, bauxite, and iron projects. Our services cover everything from the prospection authorization and exploration permit to the negotiation of exploitation permits, taking into account environmental and social impact issues, land compensation, and tax considerations throughout the investment and operating phases.

Could you explain the process of obtaining mining rights and the typical timeframe for obtaining them?

In terms of the exploration permit and exploitation permit, the mining administration is legally obligated to issue these titles within 90 days. However, in practice, the process often takes much longer, and applicants have limited means to expedite it.

These mining rights are granted through the issuance of licenses. Additionally, a mining agreement is signed between the government and the holder of an exploitation permit to clarify the legal and tax status of the mining operations.

What is the duration of these mining rights?

The exploration permit is initially valid for four years from the date of allocation and can be renewed twice for successive periods of three years each. The permit holder must demonstrate that they have financed and carried out the exploration works program agreed with the mining administration to be eligible for renewal. In exceptional cases, an additional renewal of up to two years may be granted.

The exploitation permit is granted for the life of the mine as indicated in the feasibility study, with an initial period of validity not exceeding 20 years. It can be renewed for successive periods not exceeding 10 years. The mining agreements attached to the operating license are valid for 12 years and can be renewed twice.

Lastly, the prospection authorization is valid for a maximum of one year, with exceptional renewal conditions provided by a decree.

Are there any restrictions on the transfer of funds into and out of the country for mining activities?

There are no specific restrictions imposed on the transfer of funds into or out of the country. However, transferring funds into the country for investments or financing purposes requires a declaration of investments for statistical purposes, in accordance with foreign exchange rules. This declaration aims to facilitate the transfer of interests, profits, or incomes derived from investments or financing.

Are there any tax incentives available to mining companies in Côte d’Ivoire?

Tax incentives vary depending on whether the beneficiary holds an exploration or exploitation permit. For holders of exploration permits, exemptions from VAT and customs duty are available for machinery, materials, machines, and equipment imported by the permit holder and its sub-contractors for the approved exploration program. This exemption also applies to spare parts for exploration machinery and equipment.

For holders of exploitation permits, various exemptions are provided, including corporate income tax, property taxes, registration duties on contributions made upon incorporation or capital increase of companies, customs duties on fuels, lubricants, and chemicals necessary for ore treatment during the entire exploitation period, among others.

Ivory Coast’s upcoming elections have created some uncertainty among businesses. How do you view the possible instability and its impact on investment?

It is true that upcoming elections can create some caution among investors, leading to a degree of risk aversion. However, in the mining industry, I believe the impact of elections may not be significant, especially for companies already operating in Côte d’Ivoire. The country has demonstrated its ability to overcome political crises and return to normal operations swiftly. However, my concerns for the industry lie elsewhere. I worry about judgments in compensation disputes that could result in substantial amounts being awarded against mining companies. Such rulings could set unfavorable precedents for investment security. The establishment of a Mineral Commission to handle compensation disputes is a positive step, and I hope it will contribute to fair decisions in these cases. Nevertheless, I understand that it might reduce the willingness of companies to operate in the country.

What are your future plans for KSK Avocats?

Our primary goal is to maintain the trust-based relationship we have with our clients and uphold our reputation in the market. As we continue to grow rapidly, we aim to solidify strategic partnerships with both local and international companies, with the aim of finalizing these collaborations by 2021.