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Financial Benefits

For many countries, mineral resources represent a vital opportunity to achieve much-needed economic and social development.

However, the financial promise of mining can go unfulfilled when host governments are unable to collect their fair share of financial benefits. This can be due to poorly drafted contracts, poorly designed fiscal policies and tax incentives, or aggressive tax planning by multinationals.

Collecting fair revenue and sharing benefits also builds trust, which is key to strong mineral supply chains that support economic development. This is especially important today, as the global economy demands critical mineral inputs for new technologies and the transition to low-carbon energy.

In accordance with the IGF’s cornerstone Mining Policy Framework, the Secretariat supports member countries in building and administering mining fiscal regime measures that secure their fair share of revenues from the sector.

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Global Mining Tax Initiative

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The Global Mining Tax Initiative is the main component of the IGF’s work on financial benefits. It is a distinct program offering for IGF member countries that covers fiscal policy for the entire mining value chain, from exploration and development to mining, processing, mineral sales, and mine closure. This specialized and comprehensive work program focuses on all aspects of fiscal policy, including taxes, royalties, and financial modelling. It shares unique expertise on international tax challenges related to the global mining sector.

The Future of Resource Taxation

The IGF partnered with the African Tax Administration Forum to rethink how developing countries benefit financially from their mineral resources. We launched The Future of Resource Taxation in 2020, a research project to discover how the existing system of mining taxation can be improved and identify new, innovative fiscal options for resource-rich countries to maximize the returns from their mineral wealth.

The project crowdsourced and developed policy ideas from governments, civil society, academia, and industry. The end result is a handbook for policy-makers: The Future of Resource Taxation: 10 Policy Ideas to Mobilize Mining Revenues. It presents a menu of innovative fiscal measures to strengthen revenue collection in the mining sector.

Resources

Financial Benefit-Sharing Issues for Critical Minerals: Challenges and opportunities for producing c

Are current fiscal approaches and policies aligned with national strategies, including ensuring that mineral-rich developing countries collect an appropriate share of the financial bene
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Determining the Price of Minerals: A transfer pricing framework

Practical guidance to support developing countries in accurately pricing mineral sales for the purposes of revenue collection.
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The Future of Resource Taxation: 10 policy ideas to mobilize mining revenues

The mining sector is at the nexus of important global phenomena: climate change and the push to transition to low-carbon energy, the development of new technologies affecting labour mar
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Blogs, Announcements, and Other Posts

A lithium mining operation in a vast salt flat, with large white mounds of lithium salt reflecting in the shallow water. The scene is set against a backdrop of rugged mountains under a clear blue sky

Price Indices Approach Is Key to Lithium Revenue Collection

How can mineral-rich countries determine accurate prices for lithium and ensure fair revenue collection in the sector? The use of price indices is key in this regard.

Setting a Benchmark Price for Phosphate to Bring Financial Benefits to Senegal

The IGF helped Senegal establish a phosphate reference price to improve revenue collection in the sector.

Conference on the Future of Resource Taxation in Latin America and the Caribbean

Bringing together government officials from ministries of mining, finance, and revenue authorities, as well as industry, civil society, academia, and international organizations, to dis

Updates to UN and OECD Model Tax Treaties Aim to Stop Mining Revenue Leakage

How do new proposals from the UN and OECD seek to address concerns from resource-rich countries about revenue risks associated with tax treaties?