Mining Specifics

full all chapter5 chapter6 chapter7 chapter8 chapter9

chapter4 chapter5 chapter6 chapter7 chapter8 chapter9

Transparency and Accountability

Policy, Legal and Contractual Framework

Sector Organization and Institutions

Fiscal Design and Administration

Revenue Management and Distribution

Sustainable Development

  • Mining investors will typically engage with different government ministries within government, including Mining, but also (and inter alia) the various ministries of Finance, Environment, and Trade & Industry.

 

  • Aside from the Mining ministry, other ministries are likely to lack specialist mining knowledge; knowledge from the former must be shared across government, therefore, to avoid government finding itself disadvantaged in its dealings with investors.

 

  • Government bureaucracy should be efficient and should not cause undue difficulties or delays in processing visas, work permits or customs clearances.  

 

  • Sometimes governments insist on a minority “free equity” in a new mining project, which is akin to taxing the project, but differs in that the equity holding also gives a government rights, benefits and risks.  Negative perceptions of this free equity stake may lead disaffected insider shareholder(s) to seek to non-transparently ‘game’ the business’s surpluses by devising routes for the return of capital outwith dividends.  The overall impact of this can therefore be both negative and distorting.

 

 

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