Minerals, natural resources and the commons are a shared inheritance. It is our duty to ensure future generations inherit at least as much as we did. If we fulfill our duty, we may enjoy the fruits of our inheritance. A loss is a loss to all of us and all our future generations.
The five principles for managing our shared mineral inheritance are:
1. The state is a trustee of natural resources for the people and especially future generations (Public Trust Doctrine).
2. As we have inherited the minerals, we are simply custodians and must pass them on to future generations (Inter-generational Equity Principle).
Consider the example of inherited family gold. If the family decide to keep the gold as it is, they ensure the gold remains to be passed onto future generations. However they must safeguard it against theft, which is both a headache and a cost, while the gold produces no income. Alternatively, if they decide to sell the gold and invest the proceeds in say land for example, they and their future generations can benefit from the income of the land as long as it is well maintained. The crucial point is that if the gold were to be lost or the investments mismanaged, the loss of capital would be permanent for all future generations.
3. If we mine and sell our mineral resources, we must ensure zero loss, ie. capture of the full economic rent (sale price minus cost of extraction, cost including reasonable profit for miner). Any loss is a loss to all of us and our future generations.
4. Like Norway, all the proceeds from our minerals must be saved in a Future Generations Fund, with the state as trustee for the people and especially future generations.
5. We own the minerals, we own the fund, we own the income of the fund. Distribute the real income (after inflation) from the Future Generations Fund only a commons dividend or a Citizen’s Dividend, equally to all as a right of ownership.
Learn more — What is the Future We Need?