MINERAL RENTS AND WEALTH : AN ANALYSIS OF THE DIAMOND MARKET AND THE POTENTIAL TAX SPACE 2010-2019

Abstract: The aim of this thesis is to analyse resource rents in the diamond industry. Based on extensive datasets and a discussion of all relevant costs, resource rent statistics in the diamond industry is examined on a global level for the period 2010-2019. Resource rents give an indication of the available space for taxation. To use this potential tax space effectively in the long term without changing the investment behaviour of the mining companies and the long-term viability of the industry, all costs, such as operating costs, cost of capital, exploration costs, overhead costs and closure costs, must be included. The result shows that failure to include all costs inflates the potential tax-space and thus jeopardize the viability of the resource sector.