J.M. Otto / UNCTAD
Mineral policies evolve in response to geological resources, politics, economics and advancements in technology. The policy changes that take place are based on each country's unique combination of these and other internal and external factors. Trends can be identified for groupings of countries but the actual path of policy development and implementation varies widely from country to country. In some instances the policy may take the form of a stand-alone document but in many nations, an investor will need to interpret the policy from diverse sources of information. A published, stand-alone policy is a very useful regulatory tool that serves two important functions. First, it provides the mineral industry with a clear statement of the government's expectations and intent towards the industry. Secondly, it provides lawmakers and regulators with broad guidance.
Implementation of mineral sector policies is done through many agencies and administrative channels. An important part of the policy implementation framework is the body of laws that will statutorily effect the industry. Mining legislation takes the form of many different laws. In almost all instances, the mining code plays the central regulatory role but laws dealing with labour, safety, land, water, tax, foreign exchange, environment and so forth also enter into the picture.
Investment and government mining policy are closely linked. Even the most highly geologically prospective nations will have difficulty in attracting foreign investment without adequate national policy, regulatory and fiscal systems. Over the past few years the level of mineral sector investment has increased in real terms, and those nations that have put into place regulatory systems which reduce or allow a company to manage risks at an acceptable level have, for the most part, enjoyed increased levels of investor interest.
