Wednesday, 3 September 2014

Mineral Resources Presence and Impact on Economy

Mining industry is considered very exotic worldwide. It is good for the one in the higher ranks but miserable for some labors down in the management chain. Countries such as Russia, Brazil and Australia have a good share of GDP coming from mining activities. Australia also has some of its richest and billionaires who are from families doing mineral business.

One of the positive impacts of mining besides providing jobs is the direct and heavy impact on a country exchequer. It is one of the most highly taxed industries. The percentage of taxes they pay per year is staggering. Whole bodies and ministries are formed for its regulation.

There are also tax slabs for various minerals and metals. So for example, gold will have different tax rate compared to coal or natural gas. This mix also ensures that a government extracts maximum juices from such mines owners. At times it reaches the stage of exploitation but thanks to strong unions, such cases are hardly seen.

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