Gemfields assembles ‘The G-Factor for Natural Resources’
LONDON – Gemfields has invited collaboration, input and support from governance bodies, mining organisations, industry observers and host governments in adopting the ‘G-Factor for Natural Resources’, a new measure promoting greater transparency regarding the level of natural resource wealth shared with the governments of host countries.
The G-Factor for Natural Resources is intended to be an uncomplicated indicator of the percentage of a natural resource company’s revenue that is paid to the host country government in primary and direct taxes, plus – where the host government is a shareholder – dividends. As such, it is an indicator of the share of natural resource wealth paid to a host country’s government.
The G-Factor for Natural Resources would typically be calculated by each standalone company engaged primarily in the extraction and sale of natural resources, whether in the mining, oil, gas, timber or fishing sectors.
Accordingly, multi-national natural resource companies would publish the G-Factor for Natural Resources for each operating subsidiary engaged primarily in the extraction and sale of natural resources.
The G-Factor for Natural Resources takes its name from the “g’s” in “government”, “governance” and “good practice”, with a passing nod to “Gemfields”.
Sean Gilbertson, Gemfields’ CEO, commented: “In an era witnessing significant strides in transparency and governance, and where extensive reporting on so many facets of corporate activity is already required in the annual reports of public companies, it is surprising that practical parameters allowing more direct insight into, and comparison of, the sharing of natural resource wealth still elude us. We invite collaboration, input and support for the adoption of the ‘G-Factor for Natural Resources’ as a step forward. We hope it will be voluntarily adopted by other companies, insisted upon by host countries and incorporated into projects such as EITI.”