ICMM members report US$54.9 billion in total tax and royalty payments in 2022
ICMM had published a report outlining ICMM members’ social and economic contribution to host countries. This includes disclosing members’ tax contribution in 2022 and new data points on the number of direct employees, wages and related payments, payments to suppliers and community and social investment.
In 2022, ICMM members reported Corporate Income Tax (CIT) and royalties of US$54.9 billion, an increase of 77.8 percent from 2021. This number includes $US40.2 billion in CIT, up 85.3 percent from 2021 and US$14.7 billion in royalties paid, up 60.2 percent from 2021. Since 2013, ICMM members have reported US$271.3 billion in total CIT and royalty payments. Collectively, members reported having 561,900 direct employees and paying US$ 37.3 billion in wages and related payments. Suppliers, which often include local businesses, were paid US$166.2 billion and US$1.5 billion was invested in communities.
Transparent disclosure of corporate income tax and royalty payments provides important context for understanding the economic contribution mining makes. This data helps companies to demonstrate accountability and build trust with stakeholders. It supports stakeholders, including communities and civil society, to hold governments to account for how these revenues are used. The report is also intended to inform global conversations on investment in the mining sector, financial return on resource extraction, and global taxation policy.
“Unlocking the wealth of our natural resources for the common good rests on viewing mineral development as a long-term investment and partnership between industry, government and their host communities, where benefits are shared across the mine lifecycle, extending long after the mine has closed,” Rohitesh Dhawan, President and CEO of ICMM said. “It’s clear that to satisfy demand for critical minerals and metals we will need new mines quickly, but they must be developed in line with this principle. Long-term collaboration between industry, governments and civil society is essential to encourage an attractive investment climate whilst also prioritising the social and economic well-being of host communities.”
The data disclosed in this report should be considered against the backdrop of widespread geopolitical instability, economic fluctuations - including escalating interest rates, inflation, and energy costs - and the ongoing social and economic impact of COVID-19. This resulted in increased demand for the commodities produced by our members, leading to the significantly higher tax and royalty contributions in 2022 in comparison to previous years.
This report builds on analysis made over the past 10 years, which has helped to provide a picture of revenues paid across the mining life cycle. The report will continue to evolve in scope in the future to broaden our understanding of the industry’s social and economic contribution.