Canadian miners facing big tax hikes as mineral-rich countries look to cash in on commodities boom – The Globe and Mail

Countries with rich mineral resources are looking to obtain as much as they can for the extraction of a non-renewable resource from their land without making that extraction unfeasible, says Alan Hutchison, in an interview with The Globe and Mail.

“The nation state does not want the mine to fail, because then they don’t get the royalties”, he says. “They also don’t want the company to go bankrupt and leave reclamation risk.”

Alan sees the potential adoption of a kind of stability agreement. Such pacts see taxes legally locked in for long periods of time, with terms over expropriation and arbitration spelled out. As well, he sees companies engaging earlier with host countries, putting their cards on the table before mines are built and outlining how much taxes will eat into returns – all in the hope of finding a fair solution for both parties.

If you have a subscription to The Globe and Mail, you can read the full article by author Niall McGee published by The Globe and Mail on January 27, 2023.