The concept is that the government acquires a “free” carried interest in the mining company, an equity share, and will be assured dividends (remitted profits) from the mining company during its operation. I am assuming that free refers to the state, the government, not taking a management role in the operation of the mining company.
The free carried interest concept appears to protect from some of the risk of poor government administration. The government has access to some of the profit, but the government is not attempting to operate the mine, itself.
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