Canada’s Besra Gold restarts mining in Vietnam despite $14mn tax arrears

October 01, 2014 | 09:18

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Canadian gold mining firm Besra Gold Inc. is resuming production today, September 30, at one of the two gold mines itshut down two months ago in central Vietnam because of tax issues, the company said Monday.

It is expected to take the Toronto-based company three to six months to get back to normal operations at the Bong Mieu gold mine in Quang Nam Province, the gold miner said in a press release.

Restarting operations at Bong Mieu reflects the “determination of the company and employees to overcome the difficulties,” while waiting for the tax arrears issue to be completely settled, according to Besra.

In July, Besra suspended operations at the Bong Mieu and Phuoc Son gold mines, saying the decision came as a direct result of coercive measures taken by the Quang Nam Tax Department.

Besra Vietnam, the operator of the two gold mines, had its bank account frozen and its invoices invalidated in April by the Quang Nam tax authority over VND300 billion ($14.12 million) in tax arrears.

The unpaid duties include natural resources, corporate income, and personal income taxes.

The Bong Mieu gold mine, commissioned in 2006, is located in Phu Ninh District, while the Phuoc Son site, commissioned in 2011, in Phuoc Son District is considered the largest gold mine in Vietnam.

More than 1,000 Besra employees had their contracts temporarily canceled in late July, pending the lifting of the coercive measures.

It is not clear now how many have returned to work after the firm announced its resumption of mining activities.

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