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Inter-Governmental Forum Mining, Minerals, Metals and Sustainable Development Michael Stanley, the World Bank Group National Policy Framework: Priorities,

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Presentation on theme: "Inter-Governmental Forum Mining, Minerals, Metals and Sustainable Development Michael Stanley, the World Bank Group National Policy Framework: Priorities,"— Presentation transcript:

1 Inter-Governmental Forum Mining, Minerals, Metals and Sustainable Development Michael Stanley, the World Bank Group National Policy Framework: Priorities, Data Collection, Management

2 1. Mandate: Extractive Industries Review (EIR) Creating appropriate policy and regulatory frameworks for sustainable development of the minerals industry. 2. Define: Policy and Regulatory Frameworks for Sustainable Development and a 4-Step model for application

3 November 8, 2005World Bank Mining Policy Group3 Mandate: Extractive Industries Review Strengthening governance and transparency: building capacity and ensuring revenue transparency at the national, regional, and community level Ensuring Extractive Industries Reach the Poor: Communities should benefit from the Projects that affect them Develop consistent indicators of the benefits of EI Build capacity in communities to monitor projects that affect them Ensure that affected communities benefit from projects as broadly as possible Mitigating environmental and social risks only support EI that have the broad support of communities

4 November 8, 2005World Bank Mining Policy Group4 Promoting renewable energy and efficiency to combat climate change Improving organizational coordination Ongoing learning and review …. We (The World Bank Group) will continue to advise and help governments create appropriate policy and regulatory frameworks for sustainable development of the minerals industry. Striking a Better Balance – The Final Report of the Extractive Industries: World Bank Group Management Response (September 2004) Mandate: Extractive Industries Review

5 November 8, 2005World Bank Mining Policy Group5 Process: Learning from ExperienceUnderstand Local Instruments Local Instruments Strengthen Overarching Laws Improved Local Governance

6 November 8, 2005World Bank Mining Policy Group6 Other Relevant Legislation Mineral Policy Mining Law Mining Regulations Community Management Plan Community Agreement Social Management Plan Social Impact Assessment Environmental Management Plan Environmental Impact Assessment 1. Linkages: Define a framework for linkages between overarching laws / policies and project specific developments. 2. Capture Best Practices: At the project development level. 3.Assess Gaps (Country Specific): Where laws and policies do not support local governance 4. Update Overarching Instruments: Amend laws and policies to support benefits reaching local communities Define: Policy and Regulatory Frameworks for Sustainable Development

7 November 8, 2005World Bank Mining Policy Group7 MINERAL POLICY: guiding principles for current and future generations to use re create an enabling environment for local and international inve development, and production encourage governments, sponsors, and communities to work togeth are conducted in an environmentally and socially sustainable man or compensating for local impacts, (ii) facilitating effective community consultation, (iii) mandating effective community development plans, and (iv) usingsustainability indicators to track and report outcomes. ensuring local economic benefits, revenue sharing, and the transparent management of revenues policies to make informed decisions through the collection of geological data and resource assessment regularize small scale mining and provide for adequate institution and technical support of these activities apply internationally acceptedsafe guardpolicies to environmental and social protection, indigenous peoples, and involuntary resettlement. promote the transition to a commercial basis state-owned enterprises and those reliant on the government MINERAL POLICY: guiding principles for current and future generations to use resources create an enabling environment for local and international investment in mineral development, and production encourage governments, sponsors, and communities to work together to ensure that operations are conducted in an environmentally and socially sustainable manner by (i) avoiding, mitigating or compensating for local impacts, (ii) facilitating effective c mandating effective community development plans, and (iv) using track and report outcomes. ensuring local economic benefits, revenue sharing, and the tran policies to make informed decisions through the collection of g assessment regularize small scale mining and provide for adequate institut activities apply internationally acceptedsafe guardpolicies to environmental and social protection, indigenous peoples, and involuntary resettlement. promote the transition to a commercial basis state- government Mineral Policy Define: Policy and Regulatory Frameworks for Sustainable Development

8 November 8, 2005World Bank Mining Policy Group8 Other Relevant Legislation Mineral Policy Mining Law Mining Regulations A companys development, operational, and initial closure plans Licensing Community Management Plan Community Agreement Social Management Plan Social Impact Assessment Environmental Management Plan Environmental Impact Assessment Consultation Framework Company Sector Ministry Company Step 1: Linkages Between Overarching Policies and Laws and Project Specific Development

9 November 8, 2005World Bank Mining Policy Group9 Stakeholder Analysis Community Consultation Framework - Assess and assign roles and responsibilities of the government, companies, NGOs, donors, and local affected communities Community Development Plan - Integrated Regional Economic Development including land- use planning, social welfare, institutional frameworks for revenue management Step 2. Capture Best Practices at the Local Level

10 November 8, 2005World Bank Mining Policy Group10 Community Consultation Framework - Assess and assign roles and responsibilities of the government, companies, NGOs, donors, and local affected communities affected communities – where prioritized needs and objectives have also been prepared; companies – committing to roles and responsibilities on key economic, environmental, and social programs. national / regional government planners – defining how the resource development fits within an integrated land-use and economic development strategy; national regulators and policy makers – defining mechanisms for the sharing of economic resource benefits; NGOs and donors – integrating proposed measures by the resource development with broader social / health needs and objectives of affected communities; measures to achieve sustainability during the life of the operation and post-closure. Step 2. Capture Best Practices at the Local Level – Community Consultation Framework

11 November 8, 2005World Bank Mining Policy Group11 Community Development Plan - Assess and assign roles and responsibilities for regional economic development, training and education, land-use and planning, public health and welfare, institutional frameworks for revenue management opportunities for local economic development and the role of domestic small-to- medium enterprises (SMEs) to supply goods and services to the operation; impacts and measures that result directly from exploration to exploitation, to post- closure / rehabilitation. training and education – ensuring that mineral development has large multipliers in the academic and technology community. land-use & planning – ensuring that the mineral development project is harmonized, both spatially and temporally, to overall land-use development planning. This includes financial support for major infrastructure development and modeling of additional resource contributions through improved infrastructure. Step 2. Capture Best Practices at the Local Level – Community Development Plans

12 November 8, 2005World Bank Mining Policy Group12 Community Development Plan - Assess and assign roles and responsibilities for regional economic development, training and education, land-use and planning, public health and welfare, institutional frameworks for revenue management public health and welfare issues – generally encapsulating family and gender issues, the control of infectious diseases, and nutrition. institutional frameworks – for the management of revenue streams that accrue locally, financial sustainability – to define budget needs to sustain ongoing programs, sources of financial support, and transition and exit strategies of key players (company on closure). Step 2. Capture Best Practices at the Local Level – Community Development Plans

13 FROM LOCAL COMMUNITIES TO OVERARCHING INSTRUMENTS Assess Gaps (Country Specific): Step 3. Assess Gaps (Country Specific): Where laws and policies do not support local governance Update Overarching Instruments: Step 4. Update Overarching Instruments: Amend laws and policies to support benefits reaching local communities

14 November 8, 2005World Bank Mining Policy Group14 Example - Mining Law purpose & scope of law, objectives, ownership of resources, role of the state security of tenure, transparent licensing framework sector growth licensing framework obligations for fees, duties, royalties, taxation, special provisions, and stability secondary processing of materials informal and small-scale mining other activities fiscal requirements: closure funds / environmental guaranty initial closure plan: violations, penalties, and powers of enforcement dispute resolution and appeals revenue sharing with communities Economic Introduction Policy Template for Assessing Overarching Instruments Components Major Themes

15 November 8, 2005World Bank Mining Policy Group15 community consultation resettlement & compensation community well-being Environmental Stewardship risk assessment & management, health & safety, mine reclamation mine reclamation Social: Mining and Communities economic closure planning environmental closure planning social closure planning informal & small-scale mining Sustainable Development: Community Plan Administration of Law competent authorities misc. provisions

16 November 8, 2005World Bank Mining Policy Group16 Economic Environmental Social: Mining & Communities Strengthening Overarching Instruments Introduction Other Regulations

17 November 8, 2005World Bank Mining Policy Group17 Sustainable Development: Community Plan

18 November 8, 2005World Bank Mining Policy Group18 Sustainable Development: Example Action / Indicators / Outcomes matrix within a Community Plan

19 November 8, 2005World Bank Mining Policy Group19 Summary A draft master policy framework has been developed The challenge now is to develop indicators / outcomes that governments can use: what types of indicators are relevant at the community level? Are these indicators different from that which a company might use? what types of data could be collected to support use of these indicators? Who should collect and monitor? what are the research priorities in terms of testing the use of local indicators?

20 Michael Stanley Next Steps Identify Priorities, Data Collection, Management


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