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Balancing mining contracts and mining legislation: experiences and challenges

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  • Evelyn Dietsche

    (UNU WIDER)

Abstract

This paper considers how to balance bilaterally negotiated mining contracts with mining legislation that applies to all companies. Its backdrop is the perception that mining contracts have become more widely used, especially in less-developed countries. Experiences have been mixed, prompting the questions of whether too much emphasis has been placed on them and whether this has come at the expense of strengthening sector legislation and the wider governance context for attracting investment. Drawing on a roundtable discussion convened for the 2017 Mining Seminar at the University of Dundee’s Centre for Energy, Petroleum and Mineral Law and Policy (CEPMLP), the paper lays open the ambiguous discussion on mining contracts and legislation. It first reviews the rationale for the use of mining contracts and then discusses their impact on the stability of investment conditions, the risk of corruption, the administrative burden on governments and on the development of generally applicable mining legislation and regulations, before going on to explore some underlying issues at stake.

Suggested Citation

  • Evelyn Dietsche, 2019. "Balancing mining contracts and mining legislation: experiences and challenges," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 153-169, July.
    • Handle: RePEc:spr:minecn:v:32:y:2019:i:2:d:10.1007_s13563-018-0156-9
    DOI: 10.1007/s13563-018-0156-9
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    References listed on IDEAS

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    1. Pietro Guj & Boubacar Bocoum & James Limerick & Murray Meaton & Bryan Maybee, 2013. "How to Improve Mining Tax Administration and Collection Frameworks : A Sourcebook," World Bank Publications - Reports 16700, The World Bank Group.
    2. Scott, Anthony, 2008. "The Evolution of Resource Property Rights," OUP Catalogue, Oxford University Press, number 9780198286035, Decembrie.
    3. Evelyn Dietsche, 2017. "Political economy and governance," WIDER Working Paper Series wp-2017-24, World Institute for Development Economic Research (UNU-WIDER).
    4. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    5. Evelyn Dietsche, 2017. "Political economy and governance," WIDER Working Paper Series 024, World Institute for Development Economic Research (UNU-WIDER).
    6. James M. Otto, 2017. "How do we legislate for improved community development?," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    7. World Bank, 2012. "Mining Community Development Agreements : Source Book," World Bank Publications - Reports 12641, The World Bank Group.
    8. James M. Otto, 2017. "How do we legislate for improved community development?," WIDER Working Paper Series wp-2017-102, World Institute for Development Economic Research (UNU-WIDER).
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    Cited by:

    1. Evelyn Dietsche, 2020. "Taxing extractive resources in the transition to a low-carbon future," WIDER Working Paper Series wp-2020-125, World Institute for Development Economic Research (UNU-WIDER).
    2. Emilio Soberón Bravo, 2023. "Governance on lithium mining shareholdings: expanding Environment, Social and Governance (ESG) indicators to economic regulation and raw material politics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 333-347, June.
    3. Håkan Tarras-Wahlberg, 2023. "Mining and taxation in Sweden," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 291-299, June.

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