Rule, the president and CEO of Sprott US Holdings, says in an interview with mining risk advisory firm Critical Resource that miners must be prepared to take a stronger stand and not allow politicians and bureaucrats to shun rational economic and social debate.
“The industry needs to be much more proactive on … the issue of resource nationalism and resource rent,” he said.
“For example, we are confronted with cases like Zambia trying to tax First Quantum a sum that exceeds the company’s global sales during the period of the alleged infractions. Not only does the industry need to point out the absurdity of that, but it also needs to initiate a debate on what is the appropriate level of social rent.
“We also need more political discussion about how social rents are distributed. “It is no wonder that in places like Peru or Ecuador, indigenous peoples object to the water they have used for centuries being sold to the mining industry by central governments.
Nor is it surprising that, with all the rents flowing to the capital, local people have come to believe that their exploiters are the companies active in their regions.
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