Optimizing the Public Gains from the Exploitation of Mineral Resources (2176cd36-e44e-4bbb-9bd9-109a940939d6)

"Every nation must decide how it should exploit its mineral resources so as to contribute most to its national objectives. It is argued that the present value of the future corporate income tax flow derived from mineral exploitation may serve as a useful indicator in moving toward a taxation policy that would contribute optimally toward the greatest public benefit.The future stream of corporate income taxes depends largely on the mineral endowment, consisting of deposits now being mined, known unmined deposits, and unknown deposits.Unknown deposits may be estimated by geological inference. Both known and unknown deposits can be categorized according to grade and size, and divided into economic and uneconomic deposits on the basis of certain prices, costs, rate of return and taxation levels.Computer simulations can be run of discounted cash flow models at various taxation levels to show the impact of taxation changes on future tax revenues."