Handshake
Transcript: Status of T&T’s EITI Implementation Different Types of QR Codes Present Information Available For Management Royalties form the basis of assessment for Quarry Valuations and Leases, as well as information on: Quarry QR Code is Scanned 2 Expensive to install Expensive to maintain Expensive to operate (need staff and security) Easily sabotaged/tampered with Once installed, relocation is difficult Still needs an IT system with wireless connectivity to collect and manage data Multiple locations required The Extractive Industries Transparency Initiative (EITI) and Governance in the Energy Sector. 1988: Avg. price ex quarry $18 per cubic yard Royalty $2 per cubic yard/11% 2009: Avg. price ex quarry $175 per cubic yard Royalty $2 per cubic yard/1.1% 2011: Avg. price ex quarry $125 per cubic yard Royalty $2 per cubic yard/1.6% Roderick Stephens, Certified Quarry Valuator (UK) 5% - 25% Mike Nowobilski, President of the Mid-America Energy & Mining Services (US) 6% This report would show the total aggregate reserves in Trinidad and Tobago proven and probable up to the date that logged information is available for A Depletion Rate would be automatically calculated so that based on average extraction the lifetime residual value of available minerals could be easily assessed. Quarry QR Code is Scanned 1 COMPANY DISCLOSE PAYMENTS You Do the Maths! Independent Verification of Tax and Royalty Payments Scenario 1 & Consequences Oversight by a Multi-Stakeholder Group Financial Impact Based on 20M cubic yards per annum (actual) against a reported volume of 1M cubic yards per annum (5%). $125 per cubic yard average price ex Quarry Core EITI Activity? Disadvantages of Weigh Bridges Rents Way-Leaves Easements License Fees Royalties Loss of Revenue to Government The word Royalty was derived under Common Law from Mines Royal (UK), Case of Mines 1567 The Crown received a rent and capital payment from any Mining Operator extracting Gold and Silver The payment was otherwise known as a Royalty Inadequate/Incorrect Data Inaccurate Statistics Poor Management of the Quarry Industry Scanned Vehicle QR Code 108 Quarries 20 million cubic yards extracted annually 20M x $2 = $40,000,000.00 (projected income) 1M to 2M total Royalties reported per annum by MOE NQCL: January 2011 – August 2011 - $1,000,000.00 paid As of August 2011 $21,762,946.51 is outstanding. Field Quarry Statistics (T & T) Further Benefits of the QRC Handshake System Sign Up Preparation – Includes getting buy-in from participants and appointing an Administrator Disclosure – Including collecting information from Government and companies independent reconciliation of information and resolution of discrepancies. Prepare and Publish EITI report. Monitoring and Evaluation – Including review of actions taken and lessons learnt. Validation – External Validation that EITI has been properly implemented. The Minerals Act Costs-Benefits The inadequacies of the present system lends support to loss of revenue in the form of: Royalties Value-Added Tax Corporation Tax Green Fund Levy Business Levy Registering Quarry Users Government Discloses receipts Of Payment WARNING!! The following program languages were used: API in C++: this generates ASPX Server Side code in order to display the website contents Visual Basic: is the language the backend uses to processes the data, and then injects it into the API, which in turn sends or retrieves it from the database Note: Over 645,000 lines of programming code in Several Languages were used to develop handshake based on the .NET Framework and other standards. Scenario 2 & Consequences Automatic Remote Access Server Rights to Royalty Ownership Quarry QR Code is Scanned Owner Logs In Determining the Royalty Rate Minerals: A depleting non-renewable natural resource Recording Quarry Material’s Royalty volume is not registered The Transport Vehicle Operator(TVO) DOES NOT have a copy of the Quarry Delivery Note (DN) The driver purchased or is transporting the mineral from an unlicensed or illegal quarry . Volume of Materials extracted in any Period, searchable and immediately available in real time Types of Material removed (in volume) in any selected Period in real time Flagged Reports – for example, a truck is registered for 10 cubic yards, but the truck is only buying 6 cubic yards Quarry Quarry Confirms Shipment QRC Handshake System What Is EITI ? A coalition of Governments, Companies, Civil Society Groups, Investors and International Organizations committed to improving governance through the verification and full publication of company payments and government revenues from oil, gas and mining. See: www.eiti.org The following are examples of the QR Codes that will be issued to persons/companies in the industry: This information was extracted from the Ministry of Energy website and the Office of the Director of Minerals Steps In The EITI Process Quarry sells Material Collection of Royalties would be increased by approximately 1800%. Collection of