Increasing transparency as well as business and civic engagement in government contracting are powerful ways to craft better agreements, improve public services, deter fraud and corruption, build trust and promote a more competitive business environment. A new report from NRGI and the Open Contracting Partnership details how to do it.
Political parties can help ensure that their country gets the best deal for the extraction of its resources, manages revenues for the long-term best interests of citizens and avoids the resource curse.
In a report, Rio Tinto was accused of “illegitimately lowering” its withholding taxes paid to the government of Mongolia in relation to the Oyu Tolgoi copper mine. Rio allegedly did this by using a double tax agreement between Mongolia and the Netherlands, in addition to which it negotiated an even lower rate of withholding tax in its amended mining agreement in 2011. This piece reviews Rio’s tax arrangements.
Unlike in the resource-rich country in the film Black Panther, much of Africa’s mining sector is currently dominated by foreign direct investment; its raw minerals are often exported with limited local participation in the sector and tax revenues are eroded.
Villanueva is the director of the Philippine civil society organization Alternative Forum for Research in Mindanao. AFRIM focuses on natural resource management, sustainable rural development and peacebuilding.
Last week the mining industry held the African Mining Indaba, its annual sector meeting in Cape Town. Concurrently, civil society organizations from across the region met for the ninth annual Alternative Mining Indaba (AMI).
Under the new tax system, mining companies that extract metallic or non-metallic minerals are now subject to a 4 percent excise tax on the value of their production—double the previous rate. This excise tax is equivalent to what most countries would label a “royalty” on mineral production. What does this 100 percent increase mean for the sector?