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Investor Presentaiton

B.1 Maximize revenue collection (I/II) Initiative objective Assess current status of concessions and establish comprehensive database on mining companies Streamline and consolidate fees Improve process for monitoring and evaluation for noncompliance Actions B.1.1 Assess current status of concessions & create database of mining cos.: Work with Cadastral Office of the Federal Ministry and identify known mineral license holders and areas, available concessions, & operational sites Survey all held concessions and assess for operating status: Correct haulage fees and surface rent are being paid Work with IRS to determine payment status of fees and taxes Created a state registry (database) to record the ownership of all concessions Work with Ministry of Lands, Survey and Town Planning to map to demarcate land parcels (digitally), with allocated ownership B.1.2 Streamline haulage fees collection process: • • Implement yearly haulage fee structure based on production from sites and type of mineral transported Establish mechanism for collecting haulage tax in collaboration with the Board of Internal Revenue (including who is responsible for spot checks, final assessment and tax collection) Design path to electronic payment of haulage fees (i.e. create payment portal to be used and implemented with help of ICT) Deliverables Initiative Lead B.1.1, B.1.2 Ministry of Mineral Development B.1.3 Board of Internal Revenue List of concessions, operating companies and operating status Tax compliance status of all operational mining companies Database of list of mining companies operating in the state New haulage fee structure implemented Mode of collecting fees and taxes identified and implemented Recommended timeline 6 months • 12 months 6 months • 12-18 months 12-18 months Potential quick-win 83 3 Copyright 2019 by Boston Consulting Group. All rights reserved.
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