Mozambican Minister of Mineral Resources Esperanca Bias said that there will be no major exemptions from corporation tax for mining companies operating in the country.

Radio Mozambique quoted Cuereneia on Friday as saying that the government is working according to the country's legislation on the mining sector.

She was reacting to claims by the parliamentary group of the main opposition party, the former rebel movement Renamo that Prime Minister Alberto Vaquina and the Minister of Mineral Resources, Esperanca Bias, had contradicted themselves on this issue a month ago.

Bias also said that mining contracts for local and foreign companies are signed under the same legislation.

The radio also quoted planning and development minister, Aiuba Cuereneia, as saying that the legal position was that, under the 2007 law in mining taxes, the companies must pay the full rate of 32 percent Corporation Tax on their profits.

He said the only fiscal incentives envisaged under the legislation are exemptions from paying customs duties on specialized mining equipment.

This exemption last for five years, which is the estimated time for exploration and development. However, the minister said, any fiscal benefits granted prior to the 2007 law remain in effect, and expire when the period for which they were granted ends.

Speaking in parliament on Thursday, Prime Minister Alberto Vaquina told the deputies that that it was in the government's interest to generate more tax revenue.

Adjustments had thus been made to the legislation so that companies would pay more. According to Vaquina, the new law removes the fiscal incentives envisaged in the old law.

But in any possible renegotiation of contracts "we must look at the legal framework and the possible impact of the measure on Mozambique's image."

The Prime Minister also stated that a responsible government could not act in haste to change contractual conditions.