Franklin Mining, Inc. (FMNJ)

[NYBob]

New Bolivian Mining Code Draft Proposes Fiscal and Tax
Stability -



New Bolivian Mining Code Draft Proposes Fiscal and Tax
Stability -
Thursday June 1, 8:00 am ET

North American & Bolivian Miner -
has reviewed the Bolivian government's -
Draft Proposal for the new Mining Code, including proposed
changes to the tax structure for mining companies.

The mining company views the initiatives contained in
the proposal as extremely positive.

The proposal was produced following a tripartite commission
that included the Ministry of Mines and Metallurgy,
the Federation of Mining Co-Operatives of Bolivia, and
the Mine Workers Federation of Bolivia.

The miner has received the proposal through its membership
in the Medium Miners Association of Bolivia.

President and CEO J.Carlesso commented:
"The proposed changes to the Bolivian Mining Code are very
positive as they bring a level of fiscal and tax stability
to the country.
The new Mining Code has the potential to stimulate
investment and should create an environment that improves
financing options for companies of all sizes operating in
Bolivia.
Additionally, we expect that changes to the tenure of mining
concessions will spur exploration activity and benefit
active companies.
We have addressed a letter to the Minister of Mines and
Metallurgy indicating our support for the key initiatives
contained in this proposal along with the comment that,
in our view, policy of this nature is extremely helpful
in clarifying the investment opportunity in Bolivia and
in eliminating concerns over the security of investments
made in the mining sector."

In our view, the key points of the Proposed Mining Code as
they have been initially presented are as follows:

1) The scale of the Complementary Mining Tax (ICM) will
not be changed.

2) The current Profit Tax is 25%. Companies have the option
to elect to increase the Profit Tax rate they pay to 30%,
in exchange for a 10 year guarantee of tax stability.

3) Companies with mining investment in excess of
US$100,000,000 will have the ability to execute a 20 year
"Stability Contract" with the Bolivian government.

4) ICM taxes can be credited against the Profits Tax
according to a defined scale for metals prices.

5) A single mining concession shall be limited to 25,000
hectares.

6) There is a three-year time limit to commence exploration
activities once a concession has been granted. If
exploration or mining activity has not begun within that
three year timeframe then the concession will expire.

7) As a means of demonstrating compliance with minimum property
expenditure commitments, quarterly progress and activity
reports will be submitted to mining agencies.

8) The patent application process with respect to surrounding
concessions will be simplified.

9) Annual concession fees will be doubled every five years.

10) Programs will be implemented to ensure ongoing worker
training.

11) Measures will be implemented to discourage and penalize
corruption.

The proposed review process is designed to create a
mechanism for the government to receive comments and
feedback.
A target date of July 20, 2006 - has been set to have the
proposal become the New Bolivian Mining Law.



Trust and knowledge - its not heavy to carry -






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Btw. imo. i feel 100% secure with all Bolivian people.

Duties calling - i hope to back soon -
thanks for all your FMNJ mission supports -
have a Nice Safe Weekend To All -