A response to the IGF and OECD’s 'Determining the Price of Minerals: A Transfer Pricing Framework for Copper'
The mining industry is essential for supplying materials required for the global energy transition and achieving carbon reduction targets. New sources of critical metals are needed, and while profits should be taxed in line with agreements with sovereign states, governments should minimise trade barriers to encourage investment in these new mines.
In July 2025, the Organisation for Economic Co-operation and Development (OECD) and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) opened a public consultation on Determining the Price of Minerals – A Transfer Pricing Framework for Copper. In our response, we highlight inconsistencies between the "Copper Framework" and the "OECD Transfer Pricing Guidelines", which could create confusion or disputes between taxpayers and administrators, or between tax authorities in different countries.
We also note:
- Clarity on transfer pricing is important for both governments and companies. It contributes to responsible mineral resource governance.
- While it is helpful to provide specific guidance on the application of Transfer Pricing principles to certain industry sectors, it is important that any guidance be aligned with those principles, and not compromise or bypass critical elements of the analysis that must be completed to appropriately calculate arm’s length prices which are aligned with the OECD Transfer Pricing Guidelines.
- From an investment perspective, certainty, and consistency in the application of tax and legal systems governing a mining investment, including Transfer Pricing guidelines, is a critical part of assessing potential risks and rewards before the spend is committed. It is therefore important to have consistent frameworks and guidance such as the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations edition (the “OECD Transfer Pricing Guidelines”) referred to in this response, and the UN Practical Manual on Transfer Pricing for Developing Countries which is equally applicable.
