Thursday, January 24, 2013

Irresponsible mining in Sierra Leone

Here is a short video about two British companies that are mining in Sierra Leone without paying their fair share of taxes and royalties to the government. This is precisely the type of moral hazard that is inherent to any large-scale exploitation of minerals by foreign companies. These companies have every reason to bribe governments up front to get long-term mining rights with the minimum of royalties paid to the nation where the minerals are found.  Colombia would do well to learn a lesson from Sierra Leone.

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