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Sunday, 23 March 2008

The State Vs Mining Companies? (Part 4 - Case for Negotiation)

Dan Haglund argues strongly against the government taking unilateral action through the new mining tax regime at the Mine Watch blog . Excerpt:

To sum up, I believe government is doing the right thing reforming the fiscal framework, but it is also adopting a strategy which appears, on the face of it, somewhat risky. Finding a win-win situation which improves (significantly) the tax receipts from the mining sector whilst signaling that it does incorporate concerns of private investment. An amicable solution to all of this would also engender more open state-firm relationships, on the back of which greater long-term transparency of the mining sector can be sought, for instance through the Extractive Industries Transparency Initiative.

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