Mining

Session Five: the AMV and Labour Issues in Africa’s Mining Regimes

Glen Mpufane opened his presentation with information about his global union, INDUSTRIALL, showing how its 50 million members in 140 countries are spread across the mineral value chain – from extraction, manufacturing to support services. He then posed two questions - do labour issues find articulation in the AMV, and what are the issues /constraints/challenges/ for advocacy in Africa’s Mining Labour regime?

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Discussion of presentations by Claude and Samantha

Oliver Maponga: In reference to Samantha’s presentation, Oliver wanted to clarify about the elements that Samantha indicated that they were missing in the AMV, among them gender issues and climate change. He said the Action Plan of the AMV emphasized what was supposed to be done at national and community level.  Oliver said the vision was developed and the Action Plan took the vision at heart to develop specific activities. He said in the Africa Mining Vision, a lot of issues that Samantha raised against it were adequately covered.

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Questions, Comments and Discussions

  • One participant agreed that indeed issues of taxation in the mining sector are complicated and one needs proper understanding to effectively deal with the issues. He noted that if all issues written in the AMV are adhered to, the problems of financial mismanagement in the sector would have been solved.He also called for a collective responsibility in dealing with such challenges. He said there has to be institutional arrangements in place to follow up on such issues.
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Key Issues identified from presentation on ‘Tax regimes in mining sector and illicit flows’

  • His presentation noted that the major problem in the Sub-Saharan Africa is how to mobilise domestic revenue and overdependence on donors.
  • He added that the tax base tends to get eroded due to lack of effective ring fencing, linear capital depreciation and control of production, exports and by products.
  • He also noted that the poor Sub Saharan region needs transparency and accountability at all levels if the region is to meaningfully benefit from mining activities.
  • He also highlighted urgent renegotiation of mining contracts when they are unfavourable.
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Session Two: “Mining Tax Regimes in Africa and Illicit Financial Flows (IFF)”

The first presentation in this session was by Saviour Mwambwa of Tax Justice Network Africa. After an initial overview of mineral taxation in sub-Saharan Africa (SSA) the presenter proceeded to discuss some of the factors behind poor mining tax revenue mobilisation in SSA. These include: the erosion of tax base due to factors (such as lack of effective ring fencing, treatment of hedging, reference prices and control of production, export and by products); and the ineffectiveness of corporate profit based tax standard instruments in the mining sector.

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Discussions of First Session presentations

  • There was a concern that the African Mining Vision is gender blind and also silent on climate change. Therefore a question was posed about whether the African Mining Vision could be revised to include these considerations? Furthermore, the participants recognized and appreciated the changing attitudes towards women in the mining sector, as reflected by WOMIN’s gender and extractive activities.
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Session One: Africa Mining Vision: Context and Key Features

The first speaker in this session was Yao Graham of TWN-Africa. His presentation was on the “Context of the AMV” (Powerpoint attached). It analysed the political economy of mining in Africa as a dimension of the continent’s raw material commodity export dependence and what this has meant for the structure of Africa’s economies, nature of integration into the world economy and the effects of the dependence. This was offered as the fundamental reality that the AMV seeks to address.

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