Russian state-run uranium miner JSC Atomredmetzoloto (ARMZ) owes Tanzanian government a debt of $205.8m in taxes pertaining acquisition of Mkuju River project in southern Tanzania, according to Tanzania Energy Minister Sospeter Muhongo.

Muhongo told a local news paper that ARMZ acquired Mkuju project in December 2010 after it purchased shares of Australian miner Mantra Resources, reported Reuters.

Referring to this deal, Tanzania Revenue Authority has claimed $205.80m that includes $196m as capital gains tax and $9.8m as stamp duty, added Muhongo.

The Mkuju uranium project is the first uranium mining license granted in the territorial country to Mantra Tanzania, a subsidiary of ARMZ earlier in April 2013 mandating Uranium One to operate the project.

Muhongo further revealed that the company has challenged the authorities’ claims taking the issue to the court.

Meanwhile, ARMZ-appointed FB Attorneys lawyer Gaudiosus Ishengoma said that the case is undertaken by Tax Appeals Tribunal of Tanzania, with the Russian company successfully challenging the government’s tax demands.