Resources Management and Rent Theory in Mining Industry

Abstract

Highlighting both the problems of composing and acquiring mineral rent, and the procedures and forms in which the rent is reflected in the price of mining products and energy resources are basic premises to emerge specific methodological elements of economic management of mineral resources. As our researches revealed, contractual duties represent one of these elements. Hence, the problem of new approaching in mining rents is to select policies for the contractual duty to provide sufficient incentives for foreign companies engaged in exploration and extraction of resources, by obtaining the broadest possible part of that resource rent. Presentation and evaluation of a variety of different contractual taxation systems usually used in developing countries depends on the variety of different economic and geological conditions, where of particular interest are the geological conditions that allow a low probability to discover new resources. As a result, the hypothesis was that some regularity should appear in effectiveness of the schemes themselves although current rates that are fixed in any given schema are designed to be sensitive to basic conditions. To have a successful economic management of natural resources, at the end of this paper different types and sources of inefficiency of resource management along with the market and Government failures in this respect are revealed.