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energy|financial|mining|resources

ICMM members paid $54.9bn in royalties, taxes in 2022

ICMM president and CEO Rohitesh Dhawan

ICMM president and CEO Rohitesh Dhawan

6th December 2023

By: Darren Parker

Creamer Media Contributing Editor Online

     

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Industry body ICMM reports that its members’ corporate income tax (CIT) and royalty payments increased by 77.8% year-on-year to $54.9-billion in 2022. 

CIT payments had increased by 85.3% year-on-year to $40.2-billion, while royalty payments had increased by 60.2% year-on-year to $14.7-billion. Since 2013, ICMM members have reported $271.3-billion in total CIT and royalty payments. 

This was revealed in a report, released on December 6, outlining the ICMM members’ social and economic contribution to host countries, as well as information on the number of direct employees, wages and related payments, payments to suppliers and community and social investment. 

Collectively, members reported having 561 900 direct employees and paying $37.3-billion in wages and related payments. Suppliers, which often include local businesses, were paid $166.2-billion and $1.5-billion was invested in communities. 

The ICMM says transparent disclosure of CIT and royalty payments providedsimportant context for understanding the economic contribution mining makes. This data helps companies demonstrate accountability and build trust with stakeholders. It supports stakeholders, including communities and civil society, to hold governments accountable for how these revenues are used.  

The ICMM said the report is also intended to inform global conversations on investment in the mining sector, financial return on resource extraction, and global taxation policy. 

“Unlocking the wealth of our natural resources for the common good rests on viewing mineral development as a long-term investment and partnership between industry, government and their host communities, where benefits are shared across the mine lifecycle, extending long after the mine has closed,” ICMM president and CEO Rohitesh Dhawan said at the launch of the report. 

He added that it had become clear that, to satisfy demand for critical minerals and metals, new mines would be needed quickly. However, they must be developed in line with these principles. 

“Long-term collaboration between industry, governments and civil society is essential to encourage an attractive investment climate, while also prioritising the social and economic well-being of host communities,” Dhawan said. 

The ICMM noted that the data disclosed in the report should be considered against the backdrop of widespread geopolitical instability, economic fluctuations – including escalating interest rates, inflation, and energy costs – and the ongoing social and economic impact of Covid-19.  

This resulted in increased demand for the commodities produced by ICMM members, leading to the significantly higher tax and royalty contributions in 2022 in comparison to previous years. 

This report builds on analyses made over the past ten years, which have helped to provide a picture of revenues paid across the mining life cycle. The report will continue to evolve in scope in the future to broaden the understanding of the industry’s social and economic contribution. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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