Monitoring the Value of Mineral Exports: Policy Options for Governments
Publication date:2 018
Source URL:IGF, OECD
Publication URL:Go to resource
Negotiation stage:4. Implementation & Monitoring
Sector:Extractive Industries Mining
The practice note aims to increase policy-makers’ knowledge of the process of determining the value of exported minerals. The focus is determining the value (or quality) of mineral exports, not the quantity. While there is a risk that companies may underestimate both, verifying the value of minerals is more complex and requires more technical expertise. Additionally, most governments have some measures in place to verify quantity—for example, draft surveys to calculate the weight of a ship carrying minerals for export—whereas the skills, expertise and facilities to monitor mineral value are lacking.
Having laid the foundation, the practice note sets out three main policy options for improving government oversight of mineral product export valuation (hereinafter referred to as “export valuation”). These are: direct measurement of mineral value, monitoring companies’ own mineral export valuation processes and a hybrid approach. The goal is that policy-makers will be equipped to make informed, risk-based decisions on how best to monitor the value of mineral exports.