Mining royalties

Mineral resources are finite and nonrenewable in the sense that their extraction permanently depletes a country's resource inventory. The role of governments should be to manage the exploitation of these resources to maximize the economic benefits to their community, consistent with the need to attract and retain the exploration and development capital necessary to continue to realize these benefits for as long as possible. In designing mineral sector taxation systems, policy makers must carefully seek to balance tax types, rates, and incentives that satisfy the needs of both the nation and the mining investor.