This study will investigate the economic implications of critical energy minerals that are by-products of primary mineral extraction, focusing on royalty, tax leakages and other revenue streams. It examines the pricing mechanisms of primary minerals without considering the value of by-products, which often surpasses that of the main product. Through case studies and data analysis, the research aims to highlight the economic inefficiencies and propose policy recommendations for more accurate resource valuation and taxation.

The study will use a mixed-method approach, combining quantitative data analysis with qualitative case studies. Data will be collected from mining companies, government reports, and industry publications. Case studies will focus on specific minerals such as cobalt (a byproduct of nickel and copper mining), indium (a byproduct of zinc mining), gallium (a byproduct of aluminium and zinc production) and other critical energy minerals. Case studies will examine the valuation and taxation of particular primary critical energy minerals mining operations, highlighting how the significant value of the by-product of these primary minerals is often overlooked in royalty and tax calculations.

Objectives

The primary objective of this study is to investigate the economic implications of critical energy minerals that are by-products of primary mineral extraction. The study will specifically focus on the following areas:

Royalty and Tax Leakages:

·       Analyse the extent of royalty and corporate tax leakages associated with the current taxation frameworks for by-product minerals.

·       Evaluate the economic impact of undervaluing by-products in existing pricing mechanisms.

Pricing Mechanisms:

·       Examine the current pricing mechanisms for primary minerals and how they affect the valuation of by-products.

·       Identify discrepancies and inefficiencies in pricing by-product minerals compared to primary minerals.

Legal Framework:

·       Assess the current legal framework regarding resources valuation and taxation of by-product minerals

·       Examine the current valuation methods used for by-product minerals

·        policy recommendations aimed at improving the accuracy of resource valuation and taxation on by-product minerals

Economic Inefficiencies:

·       Identify and highlight the economic inefficiencies arising from the undervaluation of by-product minerals.

·       Use case studies and data analysis to illustrate the broader economic and policy implications of these inefficiencies