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INCOME AND MINING TAXES
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME AND MINING TAXES INCOME AND MINING TAXES
The Company’s consolidated effective income tax rate was 8.8% for the first three months of 2023 compared to 29.2% for the first three months of 2022. The primary driver of the change in the effective rate is foreign currency fluctuations and the release of uncertain tax positions, although these tax benefits were partially offset by tax return adjustments, including the newly implemented Türkiye earthquake tax. The Company’s statutory tax rate for the period is 27.0%. The effective rate differs from the statutory rate primarily due to the release of uncertain tax positions, partially offset by tax return adjustments, which are largely attributable to the Türkiye earthquake tax assessments.
Unrecognized Tax Benefits
The Company records uncertain tax positions on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the “more-likely-than-not” recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, inclusive of interest and penalties, is as follows (in thousands):
Three Months Ended March 31,
20232022
Balance as of January 1$8,574 $— 
Increase associated with tax positions taken during the current year— — 
Increase (decrease) associated with tax positions taken during a prior year (1)
(6,594)— 
Settlements— — 
Decrease associated with lapses in statutes of limitation— — 
Balance as of March 31 (1)
$1,980 $— 

(1) Of the gross unrecognized tax benefits, $2.0 million were recognized as current liabilities in Condensed Consolidated Balance Sheet as of March, 31, 2023.
As of March 31, 2023 and December 31, 2022, $2.0 million and $8.6 million, respectively, represent the amount of unrecognized tax benefits, inclusive of interest and penalties that, if recognized, would impact the Company’s effective income tax rate.
As of March 31, 2023 and December 31, 2022, the total amount of accrued income-tax-related interest and penalties included in the Condensed Consolidated Balance Sheets were nil and $5.2 million. The Company believes it is reasonably possible that the total amount of the unrecognized tax benefit of $2.0 million will be settled in the next 12 months. During the three months ended March 31, 2023, the Company released $6.6 million of tax, interest and penalties in Income and mining tax benefit (expense) in the Condensed Consolidated Statements of Operations. On March 12, 2023, Türkiye enacted Tax Amnesty legislation, which allows taxpayers to voluntarily pay tax on uncertain tax positions and waives assessed interest, penalties and up to 50.0% of tax and risk of audit if paid in accordance with the process outlined in the legislation.