ABSTRACT
This chapter examines the expectations and objectives of both sides and illustrates the potential sources of conflict. Mineral development in the United States generally is straightforward by comparison with the major obstacles existing in other countries. International convention requires that the former owners receive fair compensation, which usually translates to years of costly litigation and the feeling on the part of the former owners that they have received anything but fair compensation and on the part of the government that it has paid too much. A mining company wants to control the stream of revenues from sale of its mineral products in order to ensure that it has unencumbered funds readily available to pay current bills, pay dividends, and cover loan repayment. A fixed percentage of the value of mineral production is collected by the owner of the mineral rights. The added-profit tax is a common feature of agreements between multinational mineral companies and less developed countries host governments.
