Tag Archives: low income limited liability company

Coal Mining in Africa by Ray Dinning attorney and tax lawyer

Coal Mining & Exploration in Africa

Coal, a fossil fuel is the largest source of energy for producing electricity, heat and various other energy types present on the earth’s surface. It is a complex mixture of carbon, hydrogen and oxygen together with small amounts of nitrogen and sulphur. Due to the increasing demand of coal and coal products, coal mining and exploration is on all time high. It still continues to be an important activity today. Coal mining is defined as economic excavation of coal from the earth’s crust. Mining companies from around the world are continuously involved in the process of coal mining throughout the year to meet the rising demand of coal. Through technological advancements and extensive research, these companies have found huge coal mines in various parts of the world. Leading coal mining countries include South Africa, Australia, China, Colombia, United States and Ukraine. However, coal mining exploration is considered as the most profitable economic activity in Africa owing to its geographical conditions and unmatched infrastructure.

Coal Mining in Africa
Africa is one of the largest producer of coal in the world. Coal mining companies have found large deposits of coal mines in various areas of Africa. However, of all the leading countries, South Africa tops the chart of having most number of coal mines in Africa. According to latest statistics, South Africa has 11% of world’s coal reserves and produces 6% of global production. Around 80% of the country’s primary energy needs are provided by coal. Various other countries in Africa continuously involved in the process of coal mining exploration in Africa include Mozambique, Kwazulu, Zambia and many such places. With the aid of technological advancements, Coal mining and exploration is emerging as a future potential source of energy both for Africa as well as for the world.

Coal Exploration in Africa

Coal exploration is a complex process of finding coal reserves around various places in the world. The technique requires intensive planning and extensive research done by experienced geologists, coal technologists, mining engineers and geotechnologists. The main aim is the exploration of coal mines for extracting thermal coal and coking coal for various industrial applications. Today, coal exploration in Africa is considered the most fruitful activity as it has been largely serving the economy of Africa. Coal exploration companies are eyeing various areas of Africa for discovering new coal reserves. Coal mines have been found in various parts of Africa including South Africa, Zambezie around Tete province, Mutarara province and various such regions of Africa.

(Taken from http://www.rachanaglobal.com)


Leave a comment

Filed under Uncategorized

2011 is a Year of Harvest in Africa by Ray Dinning, JD, LLM

2011 is going to be an amazing year in Africa.  The economy is booming, resources are abundant and there is a good workforce.  For information on working or doing business in Africa, call Ray Dinning at 757.232.2619 for assistance.

Leave a comment

Filed under Uncategorized

“Making Social Ventures Work” – Ray Dinning, tax lawyer

Reprinted from Harvard Business Journal (Sept. 2010) by Thompson and MacMillan:

In recent years, we’ve all experienced considerable volatility—financial breakdowns, natural disasters, wars, and other disruptions. It’s clear we need new approaches to the world’s toughest economic challenges and social problems. Entrepreneurs can play a central role in finding the solutions, driving economic growth (building infrastructure, developing local talent, infusing struggling regions with investment capital) and helping hundreds of millions of people worldwide. If successful, socially minded entrepreneurial efforts create a virtuous cycle: The greater the profits these ventures make, the greater the incentives for them to grow their businesses. And the more societal problems they help alleviate, the more people who can join the mainstream of global consumers.

The failure rates for new companies and markets, however, are high. That is true anywhere in the world, including emerging economies. The management challenges associated with producing and marketing goods and services at the base of the economic pyramid include imperfect markets, uncertain prices and costs, nonexistent or unreliable infrastructure, weak or totally absent formal governance, untested applications of technology, and unpredictable competitive responses. Given this daunting uncertainty, entrepreneurs need a framework for “unfolding” success from a perceived or an emergent opportunity.

Turning Uncertainty into Risk

Entrepreneurs and others who want to launch businesses in, say, Latin America, Asia, or Africa but lack reliable data about those environments need to put together the best models and mechanisms they can, documenting their assumptions as they go. Critically, however, they need to systematically test each of the assumptions underpinning their preliminary models against a series of checkpoints and be prepared to change on the fly, redirecting their efforts through a process known as discovery-driven planning. In this way, they can act on emerging evidence instead of obstinately and blindly pursuing infeasible objectives. (See Rita Gunther McGrath and Ian C. MacMillan’s “Discovery-Driven Planning,” HBR July–August 1995.)

What Is Discovery-Driven Planning?

However, this method of planning is necessary but not sufficient to handle high-uncertainty ventures. In the following pages, we’ll look at how to combine discovery-driven planning with four other guidelines for building successful businesses in uncertain markets that we developed during a sustained field program carried out by the Wharton Societal Wealth Program (WSWP). Specifically, we’ll consider four social enterprise projects we helped launch in Africa and examine how the guidelines informed the work in each.

It’s important to note that the lessons here aren’t just for entrepreneurs. The management teams of established multinationals, foundations, large NGOs, and other nonprofits can apply them in any challenging and highly uncertain business situation. In doing so, they can better control their costs, increase their impact on society, minimize the effects of surprises, and know when to disengage from questionable projects.

Lessons from the Field

As part of our research in the WSWP—a nine-year-old field research program at the University of Pennsylvania’s Wharton School of Business intended to examine the use of business models to develop projects that attack societal problems—we worked with 10 groups of local entrepreneurs trying to launch base-of-the-pyramid ventures in the United States and several African countries. Each project faced some or all of the elements of uncertainty cited earlier. In a few instances, even the initial objectives and desired outcomes were unclear, which made it tougher to make decisions about where and how to allocate resources.

“Resource allocation in Africa and which social venture projects to begin with is always a priority. Jumpstart projects which can help create micro enterprise businesses based on the larger resource project is a good start,” says Ray Dinning, social venture lawyer.

Ian MacMillan and James Thompson co-authored this article in Harvard Business Review.

Leave a comment

Filed under Uncategorized

Waste Coal and Refined Coal Tax Incentives by Ray Dinning

Over six companies have sought guidance in the last two weeks on the Section 45 Refined Coal Tax Credit and Waste Coal Tax Credit.  International Tax Partners is assisting small to mid sized companies in claiming their federal energy tax credits.

On October 4, 2010, the IRS issued guidance for the Refined Coal Tax Credit.  Notice 2010-54 provides key guidance on claiming this very beneficial “green” incentive to produce usable coal from waste coal and to produce a cleaner burning coal for energy production.

In 2010, the tax credit is $6.27 per ton of refined coal produced and sold for the power generation market.  “This is a substantial incentive for coal producers to produce and market a cleaner coal product,” says Dinning.  For information concerning Section 45 tax credits or other energy incentives, please call International Tax Partners at 757.232.2619.


Leave a comment

Filed under Uncategorized

Section 45 Federal Tax Credits by Ray Dinning, lawyer

International Tax Partners is seeing a significant rise in Section 45 Tax Credit projects for the production of refined coal, waste coal and steel industry fuel.  Ray Dinning, tax lawyer, is working with six companies in Virginia, Pennsylvania, West Virginia and Kentucky on Section 45 Tax Credits since October, 2010.  “The rapid rise in tax credit projects under Section 45 is due to small to mid-sized coal producers just beginning to hear about the Federal Tax Benefits of Section 45.”

Section 45 Federal Tax Credits provide a dollar for dollar tax reduction for coal producers or the tax credits can be monetized or “sold” to provide needed cash flow to small and mid-sized businesses.  For more information, call International Tax Partners at (202) 460-1116.


1 Comment

Filed under Uncategorized

Just before the Leopard Attack by Ray Dinning

Leave a comment

Filed under Uncategorized

For more information on social ventures in Africa – see www.raydinning.com

Our favorite contributor to this blog is social venture tax lawyer Ray Dinning.  Ray has launched a website with basic biographical information at http://www.raydinning.com.  Please check it out or call Ray at (757) 232-2619.  Thanks.

Leave a comment

Filed under Uncategorized