Excerpted Report: To Retain Itself or to Outsource the Employee Medical and Accident Insurance for the MOGI, SAMOG, and MOGA Category Companies. Sectorbased Analysis shows that the Majors and Juniors are Adopting Multiple Models

Senior, junior, and mid-sized Mineral Oil Gas Integrated (MOGI), Stand Alone Mining Oil Gas (SAMOG) and Mineral Oil Gas and Aggregate (MOGA) category companies across major resource economies—including Saudi Arabia, the USA, Canada, Australia, and South Africa—are increasingly investing in employee and family health and accident insurance as part of comprehensive benefits strategies, yielding both social and fiscal returns. These companies, including examples like Gold Springs Resource Corp. (USA), KWG Resources (Canada), Walkabout Resources (Australia), and Theta Gold Mines (South Africa), typically allocate between 1.5% to 3.5% of their annual payroll toward health-related benefits. For instance, a junior mining company with a $30 million payroll may spend $900,000 annually on insurance, which, due to tax regulations, can result in significant corporate tax savings. In Canada, where the combined corporate tax rate is approximately 26.5%, this translates to a tax saving of around CAD 238,500. Similarly, in the United States, with a federal rate of 21%, a $1 million expenditure can reduce taxable income and save $210,000 in taxes. Saudi Arabian firms not only comply with mandatory health coverage for employees and dependents under labor law but also gain deductions from the 20% corporate tax or zakat base, depending on ownership structure. In Australia, expenditures on medical insurance are deductible, though sometimes subject to fringe benefits tax unless exempted, while in South Africa, contributions to medical aid schemes are deductible and supported by national health incentives. This strategic investment in health benefits also lowers turnover, reduces absenteeism, and improves operational productivity, indirectly saving companies an additional 5% to 10% of labor replacement and training costs annually. With growing emphasis on mental health, flexible work support, and family well-being, these benefit programs are becoming not only compliance tools but also competitive levers in talent retention and ESG positioning.