To increase transparency, global miners committed in publishing contracts and taxes
A Brief Summary
The International Council on Mining and Metals (ICMM's 29 members include the world's biggest listed miners BHP and Rio Tinto. The ICMM also said that the tax contribution reported by its members totaled $23.7 billion in 2020, a tax rate of 39.7% and an increase of 5% in 2019. "Contract and tax transparency are two critical components of a safe, fair and sustainable mining and metals industry," ICMM chief executive Rohitesh Dhawan said in a statement.
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The International Council on Mining and Metals (ICMM) said on Thursday that major mining firms have pledged to reveal all mineral development contracts and related taxes signed from January 2021 to promote mineral resource governance.
The International Council on Mining and Metals (ICMM) said on Thursday that major mining firms have pledged to reveal all mineral development contracts and related taxes signed from January 2021 to promote mineral resource governance.
BHP and Rio Tinto, two of the world's largest listed miners, are among the ICMM's 29 members.
In a statement, ICMM CEO Rohitesh Dhawan stated, "Contract and tax openness are two key components of a safe, fair, and sustainable mining and metals business."
"The former allows citizens to see what should have been paid, while the latter allows them to see what has been paid," Dhawan explained.
The monitoring of how much tax public businesses pay is part of a global push by regulators to promote transparency across industries, with significant investors scrutinizing both tax bills and profits.
136 countries agreed in October to a global agreement requiring large corporations to pay a minimum tax rate of 15%, making it more difficult for them to avoid paying taxes, for example.
The ICMM also stated that the overall tax contribution reported by its members in 2020 was $23.7 billion, representing a 39.7% tax rate and a 5% increase over 2019.
According to the PwC analysis, ICMM members paid $185 billion to tax authorities around the world between 2013 and 2020.
"Publishing contracts are a powerful weapon against corruption because it allows contracts to be compared and creates a level playing field for business," said Helen Clark, chair of the Extractive Industries Transparency Initiative (EITI), which is supported by 55 countries and sets a global standard for good governance in oil, gas, and mineral resources.
Investing in resource-rich countries can be risky for mining corporations if the governments are politically unstable, have unclear regulatory regimes, or are corrupt, as their operations may be scrutinized by foreign authorities.
Countries with abundant mineral resources have also claimed that when commodity prices are high, they must capture value for their population.
