Mineral property - Rights, Royalties and Rents
In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitution rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on i...
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| Format: | Conference Paper |
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Australasian Institute of Mining and Metallurgy
2010
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/35047 |
| _version_ | 1848754389476442112 |
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| author | Mather, Diarmid Saavedra, Jose Kilian Polanco, Roberto |
| author2 | M Goodz |
| author_facet | M Goodz Mather, Diarmid Saavedra, Jose Kilian Polanco, Roberto |
| author_sort | Mather, Diarmid |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitution rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a ‘deadweight loss’ to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of ‘deadweight loss’; it does not impact on the life-of-mine because the tax structure is neutral. But, they aredifficult to administer correctly, particularly in the determination of rents and the defi nition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected. |
| first_indexed | 2025-11-14T08:39:38Z |
| format | Conference Paper |
| id | curtin-20.500.11937-35047 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:39:38Z |
| publishDate | 2010 |
| publisher | Australasian Institute of Mining and Metallurgy |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-350472017-01-30T13:47:24Z Mineral property - Rights, Royalties and Rents Mather, Diarmid Saavedra, Jose Kilian Polanco, Roberto M Goodz mineral royalty Mineral property In a modern economy there is a compelling case why governments should not own property rights to mineral deposits. Assuming they do, however, governments will use these constitution rights to raise revenue. They have two basic instruments to achieve this; a royalty charge on price or a rent tax on income/profits. On the one hand, a royalty charge creates a ‘deadweight loss’ to society by increasing cut-off grades and decreasing the life-of-mine. They are also regressive. However, they are easy to administer. On the other hand, a rent tax avoids the problem of ‘deadweight loss’; it does not impact on the life-of-mine because the tax structure is neutral. But, they aredifficult to administer correctly, particularly in the determination of rents and the defi nition of mining per se. If rents are incorrectly determined capital markets are distorted. And, if mining activities are incorrectly defined, downstream activities could be adversely affected. 2010 Conference Paper http://hdl.handle.net/20.500.11937/35047 Australasian Institute of Mining and Metallurgy fulltext |
| spellingShingle | mineral royalty Mineral property Mather, Diarmid Saavedra, Jose Kilian Polanco, Roberto Mineral property - Rights, Royalties and Rents |
| title | Mineral property - Rights, Royalties and Rents |
| title_full | Mineral property - Rights, Royalties and Rents |
| title_fullStr | Mineral property - Rights, Royalties and Rents |
| title_full_unstemmed | Mineral property - Rights, Royalties and Rents |
| title_short | Mineral property - Rights, Royalties and Rents |
| title_sort | mineral property - rights, royalties and rents |
| topic | mineral royalty Mineral property |
| url | http://hdl.handle.net/20.500.11937/35047 |