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Article

4 Aug 2019

Author:
Oxfam Australia, Uniting Church in Australia, & Tax Justice Network Australia

Buried Treasure: The Wealth Australian Mining Companies Hide Around the World

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July 2019

In this report, we estimate that as much as $1.1 billion in profits was shifted out of Africa in 2015 alone5 by the Australian mining sector through the use of tax secrecy jurisdictions. This means Australian mining companies may be responsible for the loss of an estimated $289 million in government tax revenues in some of the poorest countries in the world (many of which are in Africa) in one single year alone. This tax could have been used for schools, hospitals and other vital services.

…Oxfam, the Uniting Church in Australia and TJN-Australia analysed in detail three mines owned by Australianheadquartered companies and listed on the Australian Stock Exchange (ASX) — Perseus Mining, Iluka Resources and MMG Ltd — and found several red flags. Our investigation indicates these mines have financial and corporate arrangements that may have led them to pay significantly less tax than the public should expect. While Iluka Resources has more recently purchased the mine in our study and now has a chance to turn things around, MMG Ltd and Perseus Mining have been in full control of their mines for the period of our examination.

• Edikan Gold Mine in Ghana (owned by Perseus Mining) does not appear to have paid a single cent in tax in Ghana since the mine began operations in 2011.

• Kinsevere mine in the DRC (a copper mine owned by MMG Ltd) paid on average 0.9% of total revenues in tax in the DRC from 2011 to 2015 (and has been operating since 2006).

• Sierra Rutile mine in Sierra Leone (extracting rutile, and acquired by Iluka Resources in 2016) has paid on average 0.4% of total revenues in tax in Sierra Leone since 2009 (this mine has been operating since early 1990s).