Consultant: Valuing Mining Assets for Capital Gains Tax

Background

The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 270 people, plus over 150 associates and consultants, come from across the globe and from many disciplines. Our work affects lives in nearly 100 countries.  

IISD hosts the Secretariat to the Intergovernmental Forum on Mining, Metals, Minerals and Sustainable Development (IGF).

The Global Mining Tax Initiative (GMTI) is a distinct program offering for IGF member countries that covers fiscal policy for the entire mining value chain, from exploration and development to mining, processing, mineral sales, and mine closure.

Drawing on the IGF’s broad experience working on financial benefits, this specialized and comprehensive work program focuses on all aspects of fiscal policy, including taxes, royalties, and financial modelling. It provides unique expertise on international tax challenges related to the global mining sector, which is dominated by multinational companies.

Context of the Assignment

Transferring ownership of mining licences can generate significant income that many countries seek to tax as capital gains. In recent years, many resource-rich countries have taken steps to review their domestic legislation and international treaty networks to improve their ability to tax the transfers of mining assets. However, challenges relating to the valuation of mining licences and assets for taxation purposes continue to make implementation difficult.

Economic valuation is a crucial component of the mining industry. It is a tool that allows all parties to assign an economic value to a mining project, to a portfolio of mining projects, or to large mining companies with interests in dozens of mining projects. It is used by companies, investors, governments, analysts, and court systems all over the world, who rely on independent expert assessments in their decisions and transactions. Understanding economic valuation in the context of the mining industry is key to determining capital gains.

The GMTI is seeking a consultant to prepare materials and deliver a workshop in person/virtually to our member countries on the valuation of mining assets for the purpose of collecting capital gains tax. This will help countries not only to provide guidelines to taxpayers on their preferred/appropriate methodology to use in valuing mining assets, including mining licences, but also to build the tax administration’s capacity to review the taxpayer’s valuation report.

Deliverables

1. Prepare workshop materials

The consultant will prepare materials to teach mining asset valuation. The material will include an explanation of the mineral valuation profession and how, when, by whom, and for whom mineral valuation reports are done. The material will also include global best practices and agreed principles in mineral asset valuation, introduce and explain the different approaches to valuation (cost, market, and income), and the main methods that are used under each approach, clarifying which valuation approach and methods should be used depending on the context. The consultant will highlight the strengths and weaknesses of each approach and method and their administrative considerations for taxpayers and tax administrations. Where possible, the material will connect with the objective of calculating capital gains and losses for accounting and tax purposes.

Estimated level of effort: 10 days

2. Deliver training

Under the supervision of a GMTI expert, the consultant will facilitate a capacity-building workshop for our member countries, including providing abstract exercises/case studies that the workshop participants can refer to for learning purposes.

Estimated level of effort: 4 days

Contractual Arrangement 

Dates are estimated. The consultant will be contracted and paid according to IISD’s consultancy policies. Please include your daily fee in your application.

Remuneration: Commensurate with skills, experience, and location.

Location: Global

Estimated Start Date: October 14, 2024

Closing Date: The candidates will be reviewed on a rolling basis, and the position will be closed once filled.

Application Procedure 

All submissions must be in English. 

Applications will only be accepted through Bamboo HR. 

• A CV (no longer than two pages) 
• A cover letter (one page)

We thank all candidates for their interest; however, only those selected for an interview will be contacted. 

IISD is committed to fostering a more equitable and sustainable world and welcomes candidates who uphold our values of diversity, equity, and inclusion. In addition, to correct the conditions of social injustice and disadvantage in employment around the world, we encourage candidates from historically marginalized groups, including women, Indigenous Peoples, people with disabilities, people from different racial and ethnic backgrounds, and those who identify themselves as 2SLGBTQIA+, to apply for this position. We offer reasonable accommodations in our recruitment process and seek applicants’ advice on how best to accommodate their needs. 

IISD does not discriminate on the basis of age, gender, caste, ethnicity, religion, colour, disability, marital status, pregnancy, gender expression or identity, sexual orientation, or any other legally protected status.

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