Tax policies for enhancing domestic value addition for critical minerals

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How can countries use tax policies to encourage the processing of critical minerals at home while protecting government revenues?

Global demand for critical minerals is growing with the shift towards cleaner energy and digital technologies. For countries with large mineral resources, this brings opportunities to do more than collect revenues from mining. Many are looking for ways to process, refine and manufacture more products locally, creating greater value from their resources and supporting industrial development.

Tax incentives can help, but they are not enough on their own. Countries also need clear and stable rules, reliable infrastructure, and access to finance and markets. Measures such as lower royalty rates for refined minerals, investment allowances and tax credits can encourage investment in processing activities. However, poorly designed incentives can reduce government revenues without bringing the expected benefits.

To discuss these challenges, the Addis Tax Initiative (ATI) and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) are organising a webinar on 17 November 2026, from 14:00 to 15:30 CET.

Drawing on the IGF's work on Tax Considerations for Critical Minerals Value Addition, the webinar will bring together ATI partner countries to share experiences and lessons learned. Brazil and Indonesia will provide insights into their approaches to encouraging mineral processing through tax policies. An open discussion will give participants the opportunity to exchange ideas and identify areas where further support may be useful. 

Objectives 

The webinar aims to:

• Improve understanding of how tax policies can encourage domestic value addition for critical minerals, including what tax incentives can and cannot achieve.
• Give ATI partner countries an opportunity to share experiences, practical approaches and lessons learned.
• Identify common challenges and areas where ATI and IGF could support further discussion, peer learning and technical assistance. 

Programme