Kazakh govt, metals majors in talks over export duty

ASTANA, May 14 (Reuters) - Kazakhstan's government and the country's mining and metals firms are in talks over a proposed metals export duty, the head of an industry association told Reuters on Wednesday.

The government of the resource-rich Central Asian state said last month it could impose a duty on exports of metals to boost budget revenues, a move criticised by key industry players such as London-listed ENRC (ENRC.L: Quote, Profile, Research) and Kazakhmys (KAZ.L: Quote, Profile, Research).

However Nikolai Radostovets, the head of the Metals and Mining Companies Association that unites 35 firms including ENRC and Kazakhmys, said the government was ready for dialogue.

"We (are) glad that the dialogue has started at a point when it is possible to discuss all points of view and come to the best decision," he said.

Radostovets said the companies had offered to pay an additional tax instead of the export duty.

"We are ready to boost the tax base, but within a clear framework," Radostovets said.

He said the government was mulling the industry's proposal, but gave no timeframe for a possible decision.

A source in the Ministry of Industry and Trade told Reuters it was still assessing the potential effect of the duty.

"It is all very complicated because the industry involves both extracting raw materials and refining them," the source said.