Tax Considerations for Critical Minerals Value Addition

With global demand for critical minerals increasing amid the energy and digital transitions, this report explores how resource-rich countries can capture greater domestic value from their minerals. It examines how fiscal strategies, supported by legal, regulatory, and infrastructure enablers, can help foster local processing, refining, and manufacturing. 

It focuses on a selection of critical minerals crucial for the energy transition and examines two central questions: 

• What specific fiscal and non-fiscal conditions enable countries to optimize the balance between revenues from producing the mineral and benefits from processing and refining the mineral further down the value chain in-country? 
• What tax and other related measures have countries adopted to increase in-country value across the mining value chain?  

The analysis considers factors that have helped or hindered previous attempts to increase domestic value lock-in in resource-rich countries and emphasizes practical approaches to designing fiscal policies that support sustainable value addition.