Transparency of Mineral Revenues

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ICMM company members are committed to contributing to the sustainable development of the countries and communities in which they operate. A major focus of ICMM’s work is to explore ways to enhance the development contribution of member companies, by enabling the potential social, economic and institutional benefits of mining to be realised. ICMM considers that transparency of mineral revenues should be integral to such efforts.

ICMM respects the ultimate right of sovereign governments to make decisions regarding revenue transparency, and recognises the contribution that greater transparency can make to enhanced governance, combating corruption and ensuring that mineral revenues foster more sustainable growth and reduce poverty. Given the importance of revenue transparency for well-functioning economies and good governance, ICMM members will strive to positively engage with governments and civil society organisations that are committed to revenue transparency.

The Extractive Industries Transparency Initiative (EITI) has established a global standard for monitoring and reconciling tax revenues paid by oil, gas and mining companies. It also provides for disclosure of information on licences, contracts, production and other key elements around resource extraction, with the oversight of national multi-stakeholder groups. In doing so, it supports improved governance in resource-rich countries. EITI is a coalition of governments, companies, civil society groups, institutional investors and international organisations. ICMM is supportive of the EITI and of the EITI Principles, established in 2003, that are the cornerstone for the initiative.  

The EITI is now supported by complementary laws in several jurisdictions requiring public disclosure of payments on a company-by-company, country-by-country and project-by-project basis.

Relationship between the ICMM Mining Principles and Position Statements

All ICMM company members are expected to implement the ICMM Mining Principles as a condition of membership. Incorporating comprehensive environmental, social and governance requirements, robust site-level validation of performance expectations and credible assurance of corporate sustainability reports, ICMM’s Mining Principles seek to maximise benefits to host communities and minimise negative impacts to effectively manage societal challenges.

ICMM principles of particular relevance to revenue transparency are:

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ETHICAL BUSINESS

Apply ethical business practices and sound systems of corporate governance and transparency to support sustainable development.

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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.

Since 2003, Position Statements have been developed to clearly articulate member commitments on a number of critical industry challenges. Position Statements are endorsed by the ICMM Council and include specific commitments that members must implement, alongside the Performance Expectations.

This position statement sets out ICMM members’ approach to revenue transparency. It builds upon, and replaces, four earlier ICMM statements on the EITI (dating from 2003, 2005, 2006 and 2009).

Recognition statements

ICMM members recognise:

Commitments

In addition to existing commitments under the ICMM Mining Principles, ICMM company members commit to:

  1. Include a clear endorsement of efforts at the international level to enhance the transparency of mineral revenues, including EITI, on their website and/or in their sustainable development reports. To submit a completed international-level self-assessment form to the EITI Secretariat for posting on the EITI website.
  2. Engage constructively in countries that are committed to implementing EITI, consistent with the multi-stakeholder process adopted in each country.
  3. Compile information on all material payments by country and by project at the appropriate levels of government. In the case of EITI implementing countries, this should be provided to the body assigned responsibility for reconciling details of payments by companies and revenue data provided by government according to the agreed national template. Material payments by companies are expected to have been independently audited, applying international standard accounting practices.
  4. Support the public disclosure (ie publication) of material payments by country and by project. For EITI, this should be in line with the implementation approach adopted in-country.
  5. Engage constructively in appropriate forums  to improve the transparency of mineral revenues – including their management, distribution or spending – or of contractual provisions on a level-playing field basis, either individually or collectively through ICMM.

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