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How can shares be increased for indigenous peoples in state rights paid by mining companies? An education incentive through direct contribution to the people

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  • Yıldız, Taşkın Deniz

Abstract

Mining investors in Turkey give between 0.5 and 18.75% of pit sale prices as a state right for the per ton mineral they extract per year. It is foreseen that 25% of these state rights charged during the mining life will be paid to the special provincial administration where the mining license is, 25% to the union for providing services for villages, and 50% to the national treasury. Especially the first two of them can be considered as the shares that indirectly contribute from state rights to the indigenous peoples of the region where mining is conducted. However, the benefits of mining to the region where it is conducted may perceptibly be insufficient. Or, although it is sufficient, the indigenous peoples may perceive these contributions as insufficient as a result of the administration not spending it in the public interest. In this case, especially from mining, can a system be applied through direct payment from state rights to the indigenous peoples? In this study, questions were asked to the permanent supervisors working in mining enterprises by using the SurveyMonkey program to approximately determine the direct contributions that can be made to the indigenous peoples of the region where mining is conducted from state rights which are paid annually and during the mine lifetime in Turkey. The mining enterprises answering the survey and the average state rights paid by all mining enterprises in Turkey were evaluated by considering the mining sector conditions. It is believed that increasing the existing state right rates further will not provide an increase in the share allocated to the indigenous peoples. Instead, it is proposed that the entire special provincial administration share and at least 60% of the national treasury share are paid as a direct contribution to the indigenous peoples. In this direction, it is suggested that the state right share is distributed to the indigenous peoples directly based on criteria such as the most affected residential areas from mining, population, the number of kindergarten/primary school/middle school/high school/university students among families with children, not being involved in crime, children not working at any jobs, and for how many years the individuals have their domicile at those houses. This system is a higher education incentive system that can be applied in regions that are adversely affected by mining. Allocating a direct share to the indigenous peoples in line with the incentive of education may have positive effects on the way the peoples perceive mining. Although it is suggested that the national treasury share is reduced, treasury revenues from mining will continue to increase by virtue of new mining operations to be opened in the medium term.

Suggested Citation

  • Yıldız, Taşkın Deniz, 2023. "How can shares be increased for indigenous peoples in state rights paid by mining companies? An education incentive through direct contribution to the people," Resources Policy, Elsevier, vol. 85(PA).
  • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723006591
    DOI: 10.1016/j.resourpol.2023.103948
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