Determinación del precio de los minerales

This guide, published by the International Institute for Sustainable Development (IISD) and the OECD, provides a framework for tax administrations in resource-rich developing countries to determine the arm's length price of minerals sold between related parties. It focuses on the application of the Comparable Uncontrolled Price (CUP) method to mitigate the risk of base erosion and profit shifting in the mining sector.

• The mining sector presents high risks for tax revenue loss due to the frequency and scale of transactions between related parties, where multinational companies may sell minerals to foreign affiliates at prices below arm's length to shift profits to low-tax jurisdictions.
• The Comparable Uncontrolled Price (CUP) method is identified as the most direct and reliable way to apply the arm's length principle to commodities like minerals, provided that the economic characteristics of the controlled and uncontrolled transactions are comparable.
• To reliably apply the CUP method, tax administrations must consider specific comparability factors, including the physical characteristics and quality of the product, transaction volumes, agreement duration, delivery terms (location and timing), and other factors such as transport, insurance, and currency exchange.
• The framework emphasizes the concept of the 'associated mining company,' arguing that a mining entity within a multinational group should be viewed as having the negotiating power, market knowledge, and financial backing of that group, rather than being treated as a weak, independent entity to justify lower prices.
• Physical characteristics of minerals significantly impact pricing through three main factors: the quantity of the payable element, downward adjustments (penalties) for undesirable impurities, and upward adjustments for desirable properties or valuable by-products.
• Economic circumstances influencing the price include global and regional supply and demand dynamics, the market concentration of buyers and sellers, the mine's production history and reputation, and sovereign risk associated with the host state.
• The guide suggests three administrative approaches to simplify compliance and reduce inspection resources: publishing recommended methodologies for taxpayers, implementing 'safe harbour' regimes, and utilizing Advance Pricing Agreements (APAs).
• The Republic of Guinea implemented a 'bauxite reference price' safe harbour regime in July 2022 to combat the consistent undervaluation of bauxite exports, requiring companies to sell at or above a reference price calculated via international indices and quality/transport adjustments.
• Transfer pricing risks exist across the entire mining value chain: in exploration (technical services and equipment rental), development (related-party financing, management services, and IP royalties), production (mineral pricing and marketing commissions), and processing/refining (excessive treatment and refining charges).

APA

Viola, A., Lassourd, T., & Readhead, A. (2023). Determinación del precio de los minerales. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-11/determining-the-price-of-minerals-framework-es.pdf

Chicago

Viola, Andrew, Thomas Lassourd, and Alexandra Readhead. Determinación del precio de los minerales. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-11/determining-the-price-of-minerals-framework-es.pdf.

Wikipedia

{{cite report |last1=Viola |first1=Andrew |last2=Lassourd |first2=Thomas |last3=Readhead |first3=Alexandra |title=Determinación del precio de los minerales |publisher=International Institute for Sustainable Development |date=2023 |url=https://www.iisd.org/system/files/2023-11/determining-the-price-of-minerals-framework-es.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{viola2023determinacin, author = {Viola, Andrew and Lassourd, Thomas and Readhead, Alexandra}, title = {{Determinación del precio de los minerales}}, institution = {International Institute for Sustainable Development}, year = {2023}, url = {https://www.iisd.org/system/files/2023-11/determining-the-price-of-minerals-framework-es.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }