Towards Realizing the Africa Mining Vision : a Guide for Reviewing and Improving African Mineral Regimes for Benefit Optimization

Abstract

The purpose of the present guide is to review some of the instruments and strategies available to countries to achieve the objectives of the Africa Mining Vision. As noted in the Vision, “policies, legal and regulatory frameworks to facilitate equitable participation by local businessmen, communities and other stakeholders in mining activities need to be refined, as well as tools to improve revenue (derived from royalties, income taxes, land taxes, lease rents, etc.) distribution at local level” (Africa Mining Vision, 2009, sect. VI). Thus, it is acknowledged that the instruments and strategies required for optimization of the benefits from mineral projects exist or are known but may not be applied in the appropriate manner. For example, when a value-based royalty is generally prescribed solely with regard to a country’s high-value minerals, the country may obtain maximum revenues from such minerals. When such a royalty is also applied to low-value minerals, however, the country may not reap optimum economic benefits.