TRAINING WORKSHOP FOR UEMOA MEMBERS STATES OFFICIALS ON MINING ECONOMICS

The report details a July 2017 training workshop for 32 UEMOA member state officials on mining economics, focusing on financial modelling, mineral resource rent sharing, and the analysis of feasibility studies. The program emphasized the importance of using dynamic financial models over static PDF tables to evaluate project profitability and negotiate fair tax regimes. Key discussions covered the risks of stabilization clauses, the potential for signature bonuses, and the shift in perspective toward determining a 'fair rate of return for the investor' as a basis for state revenue sharing.

• The workshop aimed to equip officials with the ability to critically evaluate feasibility studies and financial assessments to ensure a fair distribution of mining income, specifically through the use of financial modelling.
• A critical challenge for UEMOA member states is the lack of capacity to perform in-depth analyses of financial models and the insufficient collaboration between ministerial departments in following up on submitted documents.
• Financial models provided as PDF tables are insufficient for effective decision-making, supervision, or monitoring because they do not allow for the testing of model reliability or the performance of sensitivity analyses.
• The workshop highlighted that financial models are highly sensitive to underlying hypotheses, particularly commodity prices, making the ability to vary these hypotheses essential for state negotiations with investors.
• While not explicitly provided for in member states' tax systems, negotiating signature bonuses on a case-by-case basis is a viable option to ensure fair rent sharing when existing tax systems are unsuitable for a specific project, provided transparency and governance rules are followed.
• The report recommends against the inclusion of broad stabilization clauses in laws and contracts due to their disadvantages; if used, they should be limited to the tax system, be specific about the fiscal element stabilized, and have a limited duration.
• Participants shifted their perspective on fair rent sharing from asking what the right level of taxation for the government is to asking what constitutes a fair rate of return for the investor, with the latter being seen as essential for determining the state's share.

APA

International Institute for Sustainable Development (2017). TRAINING WORKSHOP FOR UEMOA MEMBERS STATES OFFICIALS ON MINING ECONOMICS. https://www.iisd.org/system/files/publications/uemoa-training-workshop-mali-july-2017-en.pdf

Chicago

International Institute for Sustainable Development. TRAINING WORKSHOP FOR UEMOA MEMBERS STATES OFFICIALS ON MINING ECONOMICS. 2017. https://www.iisd.org/system/files/publications/uemoa-training-workshop-mali-july-2017-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=TRAINING WORKSHOP FOR UEMOA MEMBERS STATES OFFICIALS ON MINING ECONOMICS |date=2017 |url=https://www.iisd.org/system/files/publications/uemoa-training-workshop-mali-july-2017-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2017training, author = {{International Institute for Sustainable Development}}, title = {{TRAINING WORKSHOP FOR UEMOA MEMBERS STATES OFFICIALS ON MINING ECONOMICS}}, institution = {International Institute for Sustainable Development}, year = {2017}, url = {https://www.iisd.org/system/files/publications/uemoa-training-workshop-mali-july-2017-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }