An Enquiry into the Relationship between Mining Company Behaviour and Taxation and Related Mineral Law Changes

Theory on mining company reactions to changes in taxation and related mineral laws was developed by the classical and neoclassical schools of economics. A rise in taxation was predicted to reduce investment and exploration. The theory still resonates today, but has been challenged by behavioural economics which has emerged to recognise the role human behaviour plays in this process. This thesis tests the classical predicted behaviour through a survey and interviews with executives. A model of mining company behaviour is proposed that shows behaviour is complex, influenced by internal and external variables, and dependent on a project’s stage of progress.