Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development.
Tax & Mineral Resource Governance
Mineral resource governance aims to embed practices of transparency and accountability to ensure citizens benefit equitably from mineral resource development in nations where mining takes place.
Mineral and metals extraction can benefit the nations from which it occurs when governed responsibly, contributing to social and economic progress by transforming natural resources into lasting benefits for citizens. Through transparent practices, effective governance, and a focus on sustainability, mining can create value that extends beyond extraction and build societal trust in the sector.
Issue at a glance
- Natural resources, including metals and minerals, belong to a country’s citizens, and transforming them into economic growth and social development requires effective policy frameworks established by governments. However, governance of natural resources in many resource-rich countries is often weak, poor, or failing.
- Effective mineral resource governance ensures that the benefits of resource extraction are fairly shared, promoting economic growth, social development, and long-term prosperity for host countries.
- Transparent practices and effective governance involving governments, industry, and civil society foster trust, and enable sustainable development while balancing economic, environmental, and social objectives.
- When governed responsibly, mining can drive economic progress by creating jobs and generating tax revenues, while also playing a crucial role in providing critical minerals for the global transition to clean energy.
Tax principles for sustainable mining
The transition to a net-zero economy requires a significant increase in critical materials, necessitating an investment of $360–450 billion by 2030. Stable and competitive tax systems are crucial to attracting this investment in mineral-rich countries, where it can unlock economic potential and drive broader social and economic development. Governments face the challenge of balancing revenue objectives with the need to incentivise long-term, high-risk mining ventures. Collaboration between governments, mining companies, and civil society is essential to developing flexible tax policies that adapt to changing markets and ensure that resource extraction benefits all citizens.
Tax design elements that should, at a minimum, be considered by governments and policy makers:
- Royalty Payment: Provide a balanced outcome with the tax base tied as closely as possible to the point of extraction.
- Corporate Income Tax: A well-designed corporate income tax system provides both government, investors and communities a share of economic benefit with potential upside.
- Deductions and Incentives: Encourage ongoing investment, recognising all types of costs incurred through the mining lifecycle.
- International Competitiveness: Have a stable and predictable investment environment which requires a holistic evaluation of geological prospectivity, geopolitical and fiscal stability, together with the overall tax burden.
- Fiscal Stability: Provide reassurance of long-term predictability of tax and fiscal regimes, without sudden or retrospective changes.
- Administration and Transparency: Provide timely tax relief for mining-related expenditures through the investment cycle. They should promote trust, an investment positive environment and tax certainty.
Our priorities
When done responsibly, mining can play a truly transformational role in the social and economic development of host countries.
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Members Tax Contribution Report
Examine corporate income tax and royalty payments, wages, supplier payments, and community investments, to demonstrate how ICMM members support national economies and local communities in more than 50 host countries.
- ICMM has produced members’ tax contribution reports showing the amount of tax and royalties paid from 2013 to 2024.
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Contract Transparency Report
Describe how members are fulfilling their commitments related to contract transparency.
- In 2021, ICMM updated its position statement on Transparency of Minerals Revenues with enhanced member commitments around contract disclosure; and in collaboration with EITI, in 2023, published a best practice brief.
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Supporting the Extractive Industries Transparency Initiative (EITI)
All ICMM company members are also EITI supporting companies.
- Representatives from ICMM member companies sit on the EITI Board and many are active participants on EITI national multi-stakeholder groups (MSGs). In countries that are not EITI compliant, ICMM advocates the constructive engagement of mining companies in appropriate forums to improve the transparency of mineral revenues, in line with ICMM's Position Statement on Transparency of Mineral Revenues.
Key resources
Associated member commitments
Principle 10: Stakeholder Engagement
Proactively engage key stakeholders on sustainable development challenges and opportunities in an open and transparent manner, effectively report and independently verify progress and performance.
Position Statement: Transparency of Mineral Revenues
Promoting revenue transparency to enhance governance, combat corruption, and foster sustainable growth.
Position Statement: Mining Partnerships for Development
Ensuring that investments made in developing mineral resources enhance social and economic development locally and nationally.
Latest updates
Supporting the SDGs
With our strong focus on sustainable development there is great potential for ICMM to support the mining and metals industry in making an important and lasting contribution towards the UN’s global goals. We work with members and partners to catalyse lasting social and economic progress that supports an end to poverty, protects the planet and ensures prosperity for all.
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SDG 1: No poverty
Effective mineral resource governance ensures fair revenue distribution, job creation, and sustainable local development, reducing poverty. Ensuring transparency helps prevent exploitation, contributes long-term benefits for resource-dependent communities and promotes inclusive economic growth.
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SDG 8: Decent work and economic growth
Although direct employment in large-scale mining may be limited in some cases, these jobs are typically well-paid and include benefits. Mining also creates significant economic multipliers through local procurement and contributions to GDP in resource-dependent economies. For inclusive growth, effective revenue management and economic diversification are critical.
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SDG 9: Industry, innovation, and infrastructure
Mining requires substantial infrastructure investments, particularly in remote areas. Shared-use infrastructure can provide broader societal benefits, especially in countries with significant infrastructure gaps. This creates opportunities for mining to support national development goals.
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SDG 10: Reduced inequalities
While mining has reduced poverty in many regions, inequality remains a challenge in resource-dependent economies. Companies can promote inclusion by hiring locally, supporting livelihood diversification, and ensuring equitable community engagement. Transparent decision-making and participatory approaches are vital to building trust and reducing disparities.
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SDG 17: Partnerships for the goals
Mining companies bring significant expertise to partnerships that address sustainable development challenges. Sharing these experiences can inspire further collaboration and demonstrate the potential for collective progress toward achieving the SDGs.
