ABSTRACT
This chapter analyzes the possible positive roles and possible negative impacts of natural resource-based activities and the policy approaches that can help achieve significant net benefits for the nation and its people. The taxation of resource-based activities especially from petroleum and mining is of vital importance as resource revenues are one of the main potential benefits generated by the sector. Only when mineral prices are exceedingly high, generating high rates of return and volumes of revenues, are all parties ever likely to be satisfied with the taxation regime. In this case, the determination of what are legitimate costs is central, so that determination of depreciation rates for investment, set-aside costs for environmental provisions and decommissioning, carrying-forward losses and "ring-fencing" all become important. Strong national environmental regulations and effective monitoring and implementation are necessary regarding all of the environmental impacts. The chapter emphasizes the mineral and petroleum sectors but also includes brief discussions of fisheries, wildlife and geographical/geological heritage.
