By Raj Kumar, Grantley W Walrond, Gary Tomlinson, Zareer Dadachanji

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They should be integrated into the host economy in terms of the possibilities for meaningful linkages to other sectors. The above concern has been reflected in various statutes of developing countries as was noted in the previous chapter, and is a policy preoccupation in its own right in the mineral sector. The state often combats this policy area by using the instrument of participation in the project, where it can speak as an equity holder, rather than purely as a regulator in its governmental role.

The Prospecting Right confers the right to locate claims, which could then be worked, and the minerals taken possession of. If one were to be able to categorise licences in terms of exclusivity and the intertemporal definiteness of property rights, it is clear that this licence confers the least secure position. It cannot be issued in any area where a reconnaissance prospecting or mining licence has been granted, and must be confined to the 'designated area', while the mere act of annulling the order creating a 'designated area' renders the claims invalid.

There are many discretionary incentives which could or may be granted to any project, but these are only listed as being available. They are not assumed to be given in the context of the financial model developed in chapter 4. For example, in Sierra Leone many mineral developments have been granted tax holidays for ditTerent periods, while in Tanzania the application of an additional profits tax has been used. These have been on a case-by34 The Financial Regime 35 case basis and have therefore not been included as a generalised condition.

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