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21. Equitable Sharing of Mining Profits: The Best Deal for Tanzania?

Author:
Thomas Scurfield
Publication Date:
09-2023
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Tanzania’s unique approach to mining taxation, described as an equitable sharing of economic benefits between government and mining company according to a negotiated split, could leave the country shortchanged. Tanzanian citizens have access to the terms of only one profit-sharing deal, a 50-50 framework agreement for Barrick’s gold mines. The rest remain unpublished, despite laws that require the government to disclose deal terms. The Barrick deal predicates government revenues more heavily on mine profitability than a more typical regime, making these revenues more uncertain. This structure also increases the risk that companies may seek to avoid tax payments. Negotiating the split on a project-by-project basis, without any legal guardrails on the approach, increases the risks of corruption and unfavorable deal terms. The Tanzanian government could eliminate these risks by borrowing provisions from other countries that also require a specific government share of mine profits but take a different approach. However, unless the government has identified benefits from its current sharing mechanism that a more typical regime does not offer, it should not pursue a sharing mechanism and instead focus on improving the underlying regime, such as increasing its flexibility with regards to profits and reducing tax avoidance risks. To gain more trust from citizens, Tanzania’s government should explain how the mechanism works in existing deals.
Topic:
Government, Natural Resources, Tax Systems, Mining, Transparency, Contracts, and Energy Transition
Political Geography:
Africa and Tanzania

22. Kadın Maden Mühendisliği Bölümü Öğrencilerinin Gözünden Maden Mühendisliği Mesleğinin Toplumsal Cinsiyet Algısına Dayalı Olarak Değerlendirilmesi

Author:
Tuğba Deniz Tombal
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Bilgi
Institution:
Sakarya University (SAU)
Abstract:
Bu çalışmada, Dünya’da ve Türkiye’de halen erkek egemen bir alan olarak kabul edilen maden mühendisliği mesleğine kadın maden mühendisliği öğrencilerinin perspektifinden bakarak mesleğin toplumsal cinsiyet eşitliği yönünden irdelenmesi hedeflenmiştir. Bu çalışma, Türkiye’de maden mühendisliği eğitimi alan kadın öğrencilerin, eğitim hayatlarında cinsiyetçi rollere dayalı olarak karşılaştıkları sorunları tespit etmeyi ve çözüm önerileri sunmayı amaçlamaktadır. Bu bağlamda, 76 katılımcının görüşlerine dayalı olarak bir saha çalışması gerçekleştirilmiştir. Çalışmada katılımcılara iki kısımdan oluşan bir dijital anket dağıtılmıştır. Anketin ilk kısmında demografik bilgiler, ikinci kısmında ise katılımcıların mesleklerini toplumsal cinsiyete dayalı olarak değerlendirmelerine ilişkin sorular sorulmuştur. Çalışmadan elde edilen veriler değerlendirilerek ve yorumlanarak çözüm önerileri sunulmuştur.
Topic:
Inequality, Mining, Students, Engineering, Gender, and Perception
Political Geography:
Turkey and Middle East

23. Central African Republic Mine Attack: Can China Protect its Overseas Nationals?

Author:
John S. Van Oudenaren
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On March 19, gunmen stormed a gold mine near Bambari, in the heart of the Central African Republic (CAR), killing nine Chinese workers. The People’s Republic of China (PRC) Embassy in the CAR issued successive warnings for Chinese nationals to evacuate all areas outside of Bangui, the capital. On the same day as the attack, the Embassy called on Chinese citizens in the CAR’s external provinces to immediately evacuate themselves and report their whereabouts (PRC Embassy in CAR, March 19). A subsequent Embassy warning on March 22 went further, stressing that the situation in the CAR is now “red” or “extremely high risk,” emphasizing that the March 19 attack demonstrated the “extreme necessity of evacuating Chinese companies and nationals” in areas outside the capital “as soon as possible” (PRC Embassy in CAR, March 22). Foreign Ministry spokesperson Wang Wenbin stressed that General Secretary Xi Jinping was closely monitoring the situation and had instructed that immediate action be taken to ensure the safety of Chinese nationals in the CAR and to “severely punish the murderers” (严惩凶手) (PRC Foreign Ministry [FMPRC], March 20). Exactly who perpetrated the attack remains, however, unclear. The CAR government faulted the rebel alliance, the Coalition of Patriots for Change, for the gold mine attack. However, the rebel group blamed Russia’s Wagner Group, which has been deployed in the country to protect the central government since 2018 (South China Morning Post [SCMP], March 20). The timing of the attack and subsequent allegations of Wagner’s involvement was inopportune for Xi as he prepared to travel to Moscow the following day for meetings with Russian leader Vladimir Putin, as Beijing sought to position itself as a mediator in the Russia-Ukraine War (Xinhuanet, March 21). In a blog post on the CAR attack, the well-known nationalist firebrand and former Global Times editor Hu Xijin observed that in “the chaotic situation in CAR anything can happen,” but rejected Western media conjecture concerning the Wagner Group’s involvement as an attempt to “undermine Sino-Russian relations” (Sohu, March 22). He even claimed that due to Wagner’s cooperative relationship with the CAR government, its operators reportedly “helped the authorities deal with the aftermath of the situation and evacuate the bodies of the dead Chinese miners back to Bangui.” Finally, Hu averred that in the “2020s anyone who kills a Chinese national will face severe punishment and retribution.” A post on Tencent echoed these sentiments, stating: “the Central Africa Republic owes us nine lives” before castigating the U.S.-led West for treating Africa as a “modern colonial territory” and creating conditions for “vicious attacks” on Chinese companies to drive them out of emerging markets (Tencent, March 28). Putting aside the murkiness of the March 19 mine attack in the CAR, the incident highlights a growing problem for China, which is the sheer proliferation of state-owned and private businesses operating overseas, either in conflict zones or in areas with chronic political instability. The population’s widespread expectation that the government will exact swift retribution against the perpetrators of attacks on Chinese nationals overseas also puts Xi in a difficult position, as popular assumptions about the People’s Liberation Army’s (PLA) ability to target armed groups in distant and difficult operational environments do not align with its actual capabilities.
Topic:
Security, Non State Actors, Violence, and Mining
Political Geography:
Africa, China, Asia, and Central African Republic

24. Strategies to future-proof Zambia: Debt relief and beyond

Author:
Vincent Obisie-Orlu
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Good Governance Africa (GGA)
Abstract:
Debt relief negotiations are currently taking place, with Zambia expected to be the first country to receive debt relief under the newly created G20 Common Framework. However, the process faces challenges, with China and the United States trading accusations of impeding the process. Some of Zambia's creditors have also been unwilling to agree to write off some of the country's debt. Positively, innovative approaches to debt relief have been proposed that would support Zambia's net-zero ambitions and promote sustainable development, such as debt for nature swaps. The integration of Zambia into the European Union's Critical Minerals framework could further support and assist Zambia in attaining a deal. Without a deal, Zambia risks being plunged into further macroeconomic uncertainty at a time when the country needs investment to capitalise on opportunities presented by political stability and structurally higher prices for copper and other critical minerals with which Zambi a is endowed.
Topic:
Debt, Development, Natural Resources, Political stability, Mining, and Macroeconomics
Political Geography:
Africa and Zambia

25. Optimizing the Role of the Extractive Industries in Domestic Revenue Mobilization: Analysis of Uganda's Mining, Oil, and Gas Revenue Generation and Management Laws

Author:
Dan Ngabirano and Onesmus Mugyenyi
Publication Date:
12-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
Dwindling aid and more recently the devastating effects of the COVID-19 global pandemic have rendered many African countries socially, politically, and economically vulnerable. Many are unable to effectively provide basic goods and services for their people, and their ability to pursue long-term development goals has been severely undermined. Given this situation, several African governments continue to fall behind in honouring their global commitments such as those made under the UN Sustainable Development Goals (SDGs) and the various regional and international human rights treaties that they are party to. To bridge the current funding gap, several African countries have turned to extensive borrowing with even more damaging consequences. In the face of this crisis, African countries have been urged to embrace and, in some instances, enhance their domestic revenue mobilization efforts as a more reliable and sustainable option. Uganda has heeded this call and in 2019, the country adopted a five-year Domestic Revenue Mobilization Strategy (DRMS). The key objective of this strategy is to improve revenue collection and lift the country’s tax-to-GDP ratio to between 16%-18%. More critically, DRMS recognizes the strategic role and potential contribution of oil, gas, and mineral revenues to national development. The DRMS underlines the need for the development of a strong extractive industries taxation fiscal regime. Given this reality, this study was conceived and set out to review and analyze the various laws, policies, and practices relevant to Uganda’s extractive industries fiscal regime, and to establish the extent to which these may enhance revenue generation, management, and equitable sharing of resource wealth. While focused on petroleum revenue generation, management and sharing in the Albertine region districts of Hoima, Buliisa and Kikuube, the study refers to experiences from gold mining in Mubende district. In this regard, the study established that gold mining in the district has for the most part been informal and unregulated. For this reason, both the central government and Mubende district local government have not been very successful in generating critical revenues from the largely artisanal and small-scale miners-dominated sector. Secondly, where revenue has been realized from gold mining in a few instances, it has been paid to the central government with less benefit to the district local government.
Topic:
Oil, Gas, Mining, Revenue Management, and Extractive Industries
Political Geography:
Uganda and Africa

26. Debt Policy of State-Owned Mining Enterprises in Mongolia

Author:
Andrew Bauer and Batpurev Ayushsuren
Publication Date:
09-2022
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Mongolia relies heavily on state-owned enterprises (SOEs) to manage several key mining assets. Baganuur, Shivee Ovoo, Erdenet, Mongolrostsvetmet and Erdenes Tavan Tolgoi are the most important majority state-owned companies operating large-scale mines. From 2019 to 2021, debt held by mining SOEs increased 4.3 times. The total liabilities of these companies reached USD 2.3 billion, representing 15 percent of GDP. The new debt was largely issued to cover social spending and an economically questionable railway project. It is unclear how the government intends to service this debt, particularly since profitability at most mining SOEs has been weak and most face liquidity challenges. Mining SOEs’ poor financial health is due to the combination of quasi-fiscal activity financing, poor project selection and management, and inadequate legislation and control mechanisms for new debt issuance. Legal reforms to new debt issuance and stronger Ministry of Finance oversight of SOEs are needed, in addition to stricter implementation of existing legal requirements such as collecting and disclosing complete data on SOE debt. Mongolia’s government should also review mining SOE quasi-fiscal expenditures, such as price controls on coal, and other reasons for low profitability of mines.
Topic:
Debt, Natural Resources, Mining, and State-Owned Enterprises
Political Geography:
Mongolia and Asia

27. Triple Win: How Mining Can Benefit Africa’s Citizens, Their Environment and the Energy Transition

Author:
Papa Daouda Diene, David Manley, Silas Olan'g, and Thomas Scurfield
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Natural Resource Governance Institute
Abstract:
Africa’s mineral wealth is essential for the energy transition and for the hundreds of millions of people currently living in poverty in African mining countries. Whether and how governments and companies move to further extract this mineral wealth is not only economically and environmentally important for Africa, but also for the vital importance of protecting the world’s rapidly diminishing forests. The world therefore needs a mining triple win: policies that can benefit Africa’s citizens, their environment, and the energy transition. These policies need to work for all if they are to work for any of them. But mining in Africa has been riddled with injustice. Humanity cannot afford to repeat the mistakes that have beset Africa’s mining in the past. To achieve a triple win, this time must be different. There are a whole host of policies available, and many ideas from experts. NRGI has brought these together and considered how they may work to truly achieve a triple win.
Topic:
Environment, Poverty, Natural Resources, Mining, Minerals, Energy, and Green Transition
Political Geography:
Africa

28. Mongolia’s State-Owned Mining Enterprises: A Deeper Look Into Glass Accounts Data

Author:
Dorjdari Namkhaijantsan
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Mongolia’s Glass Accounts Law (2014) requires that government entities and state-owned enterprises (SOEs) disclose detailed financial and operational information on a public website. The government’s Glass Accounts portal has since become a focal point for government transparency. However, uptake of the law has been uneven among government entities, and specifically for many SOEs operating in Mongolia. In part, this lack of implementation stems from the law’s ambiguity on who should report, but it also resulted from the government’s inactivity and poor enforcement as well as limited sanctions for those who do not comply.
Topic:
Governance, Mining, Data, and State-Owned Enterprises
Political Geography:
Mongolia and Asia

29. Prospects for Mexico’s Lithium Sector After Reforms to the Mining Law

Author:
Fernanda Ballesteros
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
The Mining Law reform establishes that lithium exploration, mining and use are activities for which the state is responsible, without the option to grant concessions, based on the argument that they are activities in the public interest. The Mining Law reform leads to the existence of a dual legal system for lithium. On the one hand, the concessions already granted are regulated and monitored by the Ministry of the Economy. On the other hand, exploration and mining that takes place after the reform will be carried out by the state through a state-owned company. The objectives and responsibilities of the state within this dual system are unclear. For the mining and processing of lithium to be an opportunity that translates into benefits for Mexican people, clear, consistent and credible policies are needed. There are challenges in terms of governance, both for the special system created and the general concessions system. At NRGI, we have identified three aspects of governance we believe require analysis: (1) failures in governance of the general system; (2) governance of state-owned companies; and (3) supply chains and value generation.
Topic:
Natural Resources, Reform, Mining, Lithium, Energy, and Green Transition
Political Geography:
North America and Mexico

30. NRGI Impact: Guinean Communities Benefit from Mining Revenues and Civil Society Capacity Building

Author:
Natural Resource Governance Institute
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Natural Resource Governance Institute
Abstract:
Like many resource-rich low-income countries, Guinea faces challenges in leveraging its natural resource wealth for sustainable development. Despite being the world’s second largest bauxite producer and rich in iron ore, gold and diamonds, Guinea has so far delivered only limited benefits from mining to its citizens, more than half of whom live in poverty. Guinea introduced sector-wide reforms following democratization in 2010 and is successfully implementing the Extractive Industries Transparency Initiative (EITI). However, social unrest, political instability, and the impacts of the Ebola crisis and coronavirus pandemic have slowed the country’s progress toward ensuring that mining income helps improve citizens’ quality of life.
Topic:
Civil Society, Natural Resources, Mining, Revenue Management, and Revenue Sharing
Political Geography:
Africa and Guinea