The Government of Burundi commissioned SRK under a World Bank funded technical assistance project, to provide an independent valuation of rare earths concentrate exported from Burundi, calculation of applicable royalty and analysis of the global market for rare earths concentrate.
SRK undertook a detailed review of the regulatory and tax framework for the production of rare earths concentrate in Burundi, the offtake and commercialisation arrangements in place with a leading trading house and the operator’s production and export data. Having analysed global rare earths supply and processing chains, SRK assessed pricing practices on the global rare earths concentrate market, despite its limited size and opacity, to determine the most suitable valuation method.
Having determined the correct valuation of the rare earths concentrate exported from Burundi, SRK calculated the royalty on this basis and in compliance with applicable fiscal provisions. SRK also scrutinised Burundi’s mineral export processes and controls and made recommendations to align these with international best practice and ensure optimal taxation of mineral production.
SRK’s French speaking team included a consulting expert with experience in mining and tax legislation across Africa.
