Tax transparency key for poor mining nations: WEF

Transparency on tax and royalty payments is key to helping developing countries harness their mineral wealth, a report released by the World Economic Forum said on Monday. "Some of the world's poorest countries are rich in mineral resources. Using these resources effectively offers an unmatched opportunity for social and economic transformation," said the study produced by the Geneva-based think tank and the Boston Consulting Group.
Recommendations include publishing data on mining-related tax and royalty payments, and creating local development councils. "A high proportion of mineral development, particularly in the poorest countries, is conducted under mineral development agreements between governments and companies," said the report. "Governments should ensure that these documents, and those laying out tax and royalty data, are accessible to the public." The report also cites effective monitoring and dispute settlement mechanisms as important building blocks.