Tag: Natural Resources

Policy

Investing in Resource Efficiency – The Economics and Politics of Financing the Resource Transition

By Florian Flachenecker, Junior Economist, OECD, and Jun Rentschler, Economist, The World Bank1

florian

Various factors are putting increasing pressure on policy makers, researchers, firms and investors to explore pathways towards sustainable and efficient resource management. These factors include: high and volatile resource prices, uncertain supply prospects, rising demand, and environmental pressures. Moreover, rapid technological transitions that are changing lives for the better are also adding to the challenge. The significant increase in renewable energy technologies, such as solar power, electric vehicles and smart-phone use, are improving people’s lives. While these developments are in line with the Sustainable Development Goals (SDGs), they are also driving up demand for critical natural resources.

Resource efficiency investments could help solve these challenges, yielding substantial benefits both economically and environmentally. And yet, global resource efficiency has increased by a mere 1% per year over the past three decades. This is insufficient to counterbalance ever-increasing resource demand.

Continue reading “Investing in Resource Efficiency – The Economics and Politics of Financing the Resource Transition”
Development Matters
Data, Natural Resources, Policy

What gets measured gets managed: Tapping into local procurement in the mining industry to advance development

By Luke Balleny, Manager, Role of Mining and Metals in Society, International Council on Mining and Metals

Zambia-Mining-shutterstock_267616874
Zambia – crusher for manufactured sand. Photo: Shutterstock

How do mining companies spend their money? If you didn’t know and listened only to the media, you might think such companies spend the most on taxes and royalties. However, you’d be wrong.

When minerals or metals are monetised, the revenue is shared between four main stakeholders in the following ways:

  1. 50–65% of mining revenue goes to operating and capital expenditure, such as the suppliers who are paid for their inputs.
  2. 15–20% goes to government, which receives its share through royalties and taxes.
  3. 15–20% goes to investors who receive profits, typically a residual after the other payments have been made.
  4. 10–20% goes to employees who are paid their wages.

A World Gold Council (WGC) study shows that out of the total annual spending in 2012 of USD 55 billion by the 15 WGC members studied, some USD 35 billion were payments to other businesses, mostly subcontracting and procurement. Less than USD 10 billion were royalty and tax payments to governments.

Continue reading “What gets measured gets managed: Tapping into local procurement in the mining industry to advance development”

Development Matters1 Comment
Natural Resources

Call for Comments: Maximising development outcomes from natural resources through public-private collaboration

By Lahra Liberti, Senior Advisor and Head of the Policy Dialogue on Natural Resource-based Development at the OECD Development Centre Governments and extractive firms are increasingly looking at how natural resources can generate benefits for their economies and societies as a whole. In Zambia, for every 10 direct mining jobs, approximately seven are created in first-tier mining suppliers. In turn, the incomes generated in mining … Continue reading Call for Comments: Maximising development outcomes from natural resources through public-private collaboration

Lia BeyelerLeave a comment