Mining And The Environment: Tax Incentives Encourage Orderly Planning

This paper outlines the tax provisions that became defective in January 1992, which allow a working mine to make tax-deductible contributions to a dedicated environmental body that is itself not subject to tax. Such a body will then provide a source of funding for the mine's future environmental expenditures. It is concluded that the establishment of such environmental bodies is a financially sound, tax-effective route, allowing mines, prospectors, and quarry operators to provide for future environmental rehabilitation.