alexa Goldplat gets Sh20m tax refunds from KRA - Daily Nation

Goldplat gets Sh20m tax refunds from KRA

Thursday August 8 2019

Migori mine

Gold output at the Migori mine stood at 569 ounces in the three months ended March. FILE PHOTO | NMG 

ANNIE NJANJA
By ANNIE NJANJA
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UK-based miner Goldplat, which runs the Kilimapesa gold mine in Transmara, has received about Sh20 million in tax refunds from the Kenya Revenue Authority (KRA), the first such payment since the firm set up locally in 2016.

The miner said it will use the refunds to settle some of the debt obligations of its local subsidiary Kilimapesa Gold.

The firm, weighed down by rising cost of doing business, has since May this year put operations of its Kenyan mine on care and maintenance.

“A major positive development has been that the Kenyan Revenue Authorities started refunding the mine’s VAT claims for the first time since incorporation,” said Goldplat in a statement yesterday.

“This action sends a strong message to potential investors about Kenya as an investment destination and for Kilimapesa it is of tremendous importance as the funds will be applied to reduce the KPG’s debt. Refunds received to date amount to circa $200,000.”

Goldplat said it continued to engage with the stakeholders of Kilimapesa Gold with some agreeing to hold onto demanding payment from them for six months until November 2019.

“To support the cash flow requirements while the mine is under care and maintenance, the remaining stockpiles, together with purchased artisanal tailings, are treated on site to reduce the cost of care and maintenance.”

Goldplat is currently in search of a new investor after the multinational’s shareholders declined to provide additional capital to the local venture. The funding gap has led to losses at Kilimapesa whose production has dropped significantly.

Gold output at the Migori mine stood at 569 ounces in the three months ended March, down from 1,241 ounces a year earlier. Sales of the precious metal also fell to 639 ounces from 1,380 ounces. The firm was the first to be issued with a commercial gold production lease in November 2011.