November 15, 2012

 The overall objective of the national strategy for mining is to establish the foundations for the continuing growth of the sector so that it may contribute to the economic growth of the country, the equitable geographical distribution of economic activity throughout the nation, the diversification of our economy, the penetration of our hinterland, and the eradication of poverty, particularly in depressed interior areas.

 Mining and forestry will be allowed to continue in accordance with the Low Carbon Development Strategy.  An inter-sectoral land use committee is to provide support to the sector in implementing measures to improve sector performance and improve coordination between mining and forestry operations.  In alignment with the principles of FPIC, Amerindian communities will not be required to participate in REDD+ unless they choose to do so.

 Section 48 to Section 58 of the Amerindian Act 2006 cover all procedures regarding Mining in Amerindian Villages. Some of the relevant provisions include:  a. Required and procedures Permissions –Sec 48. (Par g specifically states that the consent of at least 2/3 of those present and entitled to vote at a general meeting must be obtained.)  b. Consultations  c. Penalties for non-compliance  d. Procedures for Agreement. (Sec.49)  e. Remedies in case of Refusal of Village for large scale Mining  f. Fees and Tributes  g. Traditional Mining Privileges  h. Obligations of GGMC  i. Use of Forest Produce  j. Protected Areas

 The Act legislates a procedure for land claims to be settled  Transfers power from Government to Village Councils (although transfer is incomplete – government retains some power especially with respect to large mining concessions)  The State holds all sub-surface rights (Same as in most countries of the world)  Amerindians have a veto power over mining in their titled lands except if there is a large scale project in the public interest

 Miner must take reasonable steps to avoid damage to environment and disruption  Miner must first employ Villagers as long as required skills are available  Miner must pay agreed-upon tribute not less than 7%  Village can choose to add other provisions to the agreement such as  Protocol regulating behaviours  Environmental protection programme  Support for health and education in the Village

 The Purchase Leveraging procedures are specifically enumerated in the Amerindian Act. (Sec. 49 Terms of Agreement).  The Village Council has the sole authority to negotiate and sign the agreement  Par 2 of Art. 49 of the Amerindian Act States the terms and conditions of the Agreement

 Positive Bargaining Zone – e.g. amount (fees and tributes) between minimum and maximum requirements  Best Alternative to Negotiated Agreement (BATNA)- In cases of overlaps, a mining/logging concessionaire may be asked to transfer to another piece of land

 Poor enforcement of agreements between villages and miners  Financial disparities between Villages and Mining companies affect legal action  Vulnerability of Amerindians – Mining concessionaires will go to technicians, administrators, etc to obtain information that will benefit them in the negotiation, and exploit the vulnerability ( e.g. lack of information) of villagers;

Small Medium Large  High risk – built regression analysis  Capital intensive – machinery, equipment  Cost driven – extraction & processing vs exploration  Price dictated – stable rates, investor expectations  Expansion – technological efficiencies, liberalisation of investment regimes

 Inception Stage issues EIAs; SIAs; EcIAs; inad. info; institutional missteps  Mining Stage issues waste, emissions, pollution; livelihood fall-out; water probs; health n safety; labour practices  Closure Stage issues job losses; health; pollution; continuing CSR

 Skill Level of VCs in Negotiations- need for negotiations training and legal training  Deadlocks  Land Use/Overlaps  Refusal of VC for Large Scale Mining (Art 50 of the Amerindian Act Provides the actions that may be taken by the Minister)

 Environmental and Health problems  Access of Villages to GGMC and vice versa  Other Social Problems

 Extractive Natural Resources Development Contribution  Economic Growth  Sustainable Development – Substantial Capital -Specialised Technologies & Expertise  Domestic Private Sector vs Foreign Investment (direct and joint) - Capital, Expertise, Technology  Community Engagement built into CDP -thru CSR –reputational pressures social licence management values

 Maximising The Extractive Industry Operations in line with LCDS  Government Fiscal Take  Health Safety and Welfare of Villages  Revenue Management  Promoting Its Extractive natural resource potential  Environmental protection  Preservation Culture and Heritage  Competitive Advantage (review Tax and Investment System)  CDP in-built in mining permits  Resource Curse/ Dutch disease

 Support CDPs that encapsulate the socio- economic development of each Village.  2% of CDPs currently pursued come from the mining sector.  Need to expand social services - education, culture, and health  Integrate mining operators, through CSR interventions