Workshop 8 Policy Assessment and Development 8th CASM Conference – BRASILIA – 6-12 October 2008 Workshop 8 Policy Assessment and Development Peter Nelson - Facilitator Principal – Land Use Consultants UK Workshop 8 Policy Assessment and Development

WORKSHOP SEQUENCE Introduction Setting the Scene Presentations 8th CASM Conference – BRASILIA – 6-12 October 2008 WORKSHOP SEQUENCE Introduction Setting the Scene Presentations SIERRA LEONE - Jonathan Pell MONGOLIA - Batsaikhan Usukh MADAGASCAR - Olivier Razafimandimby Comments on Country Experience from other participants Group Review - Defining the Key Issues Discussion - What can CASM do to assist reform, development and assessment of mineral policies? Workshop 8 Policy Assessment and Development

SETTING THE SCENE

8th CASM Conference – BRASILIA – 6-12 October 2008 SCOPE AND OBJECTIVES To review recent experience in minerals policy formulation and assessment with special reference to ASM, To debate priorities for action, To make recommendations on the approach which CASM should follow in responding to these priorities. To provide input to the African Union First Ministerial Conference on Mineral Wealth Development Workshop 8 Policy Assessment and Development

Context ASM Represents: 8th CASM Conference – BRASILIA – 6-12 October 2008 Context ASM Represents: 15-20% of Non-fuel Mineral Production world-wide. 13 million miners (men, women and children) in 30 countries. 80-100 million people depend on ASM for their livelihood. Workshop 8 Policy Assessment and Development

CASM Strategic Plan & Millennium Development Goals 8th CASM Conference – BRASILIA – 6-12 October 2008 CASM Strategic Plan & Millennium Development Goals Goal 1 : Eradicate Extreme Hunger and Poverty Goal 2 : Achieve Universal Primary Education Goal 3 : Promote Gender Equity and Empower Women Goal 4: Reduce Child Mortality Goal 5: Improve Maternal Health Goal 6: Combat HIV/AIDS, Maleria and Other Diseases, Goal 7: Ensure Environmental Sustainability, Goal 8: Deliver a Global Partnership for Development Workshop 8 Policy Assessment and Development

Cycles in Mineral Activity 8th CASM Conference – BRASILIA – 6-12 October 2008 Cycles in Mineral Activity Political, Mining and Economic Cycles Political Stability, Mining phases, Economic fluctuation Policy and legislative Cycles Mining Laws, Policies, Environment, Employment, Child Labour, Human Rights, Public Participation Seasonal Cycles Climatic, economic Social Cycles Permanent, transient Shocks to the system Conflict, Disease, Boom & Bust Workshop 8 Policy Assessment and Development

Activity Cycles 8th CASM Conference – BRASILIA – 6-12 October 2008 Workshop 8 Policy Assessment and Development

Legislative Hierarchy 8th CASM Conference – BRASILIA – 6-12 October 2008 Legislative Hierarchy Law, policy, guidelines, national institutions NATIONAL Self-Administration in some countries REGIONAL District and Local Associations Self-Reliance DISTRICT LOCAL Workshop 8 Policy Assessment and Development

Key Topics – National Level 8th CASM Conference – BRASILIA – 6-12 October 2008 Key Topics – National Level Macro-economic / Fiscal policies Poverty Reduction Strategies Mining Law and Policy Institutional Change Energy Supply/Demand Climate Change Environment Workshop 8 Policy Assessment and Development

Sustainable Mineral Development 8th CASM Conference – BRASILIA – 6-12 October 2008 Strong Weak Natural Resources (NR) Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Global Economy / Markets Large Scale Mining 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining GOVERNMENT Macro-economics Finance / Legal/ Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining GOVERNMENT Macro-economics Finance / Legal/ NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining GOVERNMENT Macro-economics Finance / Legal/ NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining GOVERNMENT Macro-economics Finance / Legal/ Social / Environmental/ Sector Policies NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining GOVERNMENT Macro-economics Finance / Legal/ Social / Environmental/ Sector Policies NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Global Economy / Markets Large Scale Mining ASM 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining ASM Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining ASM NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

Policy Interactions Economy Social Welfare Health Environment 8th CASM Conference – BRASILIA – 6-12 October 2008 Global Economy / Markets Large Scale Mining ASM GOVERNMENT Macro-economics Finance / Legal/ Social / Environmental/ Sector Policies NR Natural Resources Economy Social Welfare Health Environment Workshop 8 Policy Assessment and Development

District/ Local Level Organisation Tenure 8th CASM Conference – BRASILIA – 6-12 October 2008 District/ Local Level Organisation Associations Tenure Mineral rights, pit ownership Health, Safety and Environment Mine safety, processing (mercury), Gender Roles Men / boys, women / girls Trade and Finance Marketing/ business investment Workshop 8 Policy Assessment and Development

DETERMINING KEY ISSUES AND PRIORITIES FOR ACTION

Organisational Institutional Framework Framework 8th CASM Conference – BRASILIA – 6-12 October 2008 Organisational Institutional Framework Framework Mining policy authority Mining rights administration Cadastral / Geological Survey Environmental Authority Mining Council Miners Large-scale (Formal) Medium (Formal) Small-scale (Semi Formal) Artisanal (Informal) F.Loayza, G.Mahon World Bank Mining Policy Mineral Rights Access to land and water Mining Taxation Environmental Regulations FDI Regime Property rights, contract law, judiciary, dispute resolution mechanisms Indigenous peoples’ rights Labour laws Workshop 8 Policy Assessment and Development

Preparing a Good Minerals Regime PRIORITIES FOR ACTION 8th CASM Conference – BRASILIA – 6-12 October 2008 Preparing a Good Minerals Regime PRIORITIES FOR ACTION Preparing a good Minerals Policy?, Introducing a Comprehensive Minerals Law and Regulations C. Creating good conditions for foreign investment? D. Formalising Mineral Rights? E. Securing Access to land and water? F. Introducing Equitable Mining Taxation? G. Providing Strong Environmental Regulations? H. Formalising property rights? I. Improving Mine Health and Safety and Community Welfare? J. Strengthen judiciary, and dispute resolution mechanisms? K. Securing Stakeholder and community engagement? L. Safeguarding Indigenous peoples’ rights? M. Introducing effective Labour laws? N. Reforming governance and implementation of policies / laws? Managing markets and fair trade? Workshop 8 Policy Assessment and Development

KEY ISSUES

BUSINESS CLIMATE AND MINERAL DEVELOPMENT 8th CASM Conference – BRASILIA – 6-12 October 2008 BUSINESS CLIMATE AND MINERAL DEVELOPMENT Macro-economic Interests Investment Community and Mining Companies Taxation / Capital Allowances / Tax Rates / Royalties / Exploration Incentives Policy Requirements: Levels of taxation / Risk sharing Mineral rights Mineral Rights: - Ownership Private v. State Jurisdictions Disclosure of Information Workshop 8 Policy Assessment and Development

BUSINESS CLIMATE AND SMALL SCALE MINING 8th CASM Conference – BRASILIA – 6-12 October 2008 BUSINESS CLIMATE AND SMALL SCALE MINING Participation in ownership? Information access Technical Assistance, Regulation, Safety Standards, Environmental Management Workshop 8 Policy Assessment and Development

PEOPLE ISSUES Mine Health and Safety Human Resource Development 8th CASM Conference – BRASILIA – 6-12 October 2008 PEOPLE ISSUES Mine Health and Safety Human Resource Development Housing and Living Conditions Migrant Labour Industrial Relations and Employment Conditions Downscaling Workshop 8 Policy Assessment and Development

OTHER KEY ISSUES Environmental Performance Standards 8th CASM Conference – BRASILIA – 6-12 October 2008 OTHER KEY ISSUES Environmental Performance Standards International / Cross Border Cooperation Governance: Regulation and Promotion, Role of National, Provincial and Municipal government, Stakeholder Consultation Workshop 8 Policy Assessment and Development

STRATEGIC ASSESSMENT

What is Strategic Environmental Assesment (SEA)? 8th CASM Conference – BRASILIA – 6-12 October 2008 What is Strategic Environmental Assesment (SEA)? “A range of analytical and participatory approaches that aim to integrate environmental considerations into policies, plans and programmes and evaluates inter linkages with economic and social considerations” OECD-DAC Guidance

8th CASM Conference – BRASILIA – 6-12 October 2008 The EIA-SEA-SA Family Environmental Impact Assessment Economic Environment Social Workshop 8 Policy Assessment and Development

8th CASM Conference – BRASILIA – 6-12 October 2008 The EIA-SEA-SA Family Environmental Impact Assessment Strategic Environmental Assessment Economic Environment Social Workshop 8 Policy Assessment and Development

8th CASM Conference – BRASILIA – 6-12 October 2008 The EIA-SEA-SA Family Strategic Environmental Assessment Environmental Impact Assessment Sustainability Appraisal Economic Environment Social Workshop 8 Policy Assessment and Development

8th CASM Conference – BRASILIA – 6-12 October 2008 Tiering of SEA National Level – Policy / Institutional SEAs of Mining Sector / Poverty Reduction Strategies Regional Level – Programmatic/ landuse based SEAs of Large and Small-scale Mining and related activities District level – Community based SEA of Artisanal mining Project Level – EIAs of individual mines Workshop 8 Policy Assessment and Development

Typical Policy Formulation Process Introducing SEA to Policy 8th CASM Conference – BRASILIA – 6-12 October 2008 Typical Policy Formulation Process Introducing SEA to Policy Formulation Process DEFINE THE PROBLEM P SCOPE SUMMARISE KEY ISSUES BASELINE SET OUT A GOAL / VISION ANALYSIS P DEVELOP POLICY OPTIONS ALTERNATIVES DRAFT POLICIES PREPARE REPORT DEBATE DRAFT POLICY P CONFIRM DECISIONS REFINE POLICY MONITOR RESULTS APPROVE POLICY

Institutional SEA Situation Analysis Stakeholder Analysis Policy Analysis Prioritisation of Issues Preparation of Policy Matrix Recommendations on Policy reform

COMMUNITY MINING AREAS AND IMPACT ZONES

POTENTIAL OPEN PIT MINES WITH EIAS 1 2 3

CUMULATIVE EFFECTS 1 2 3

Challenges in Reform of ASM 8th CASM Conference – BRASILIA – 6-12 October 2008 Challenges in Reform of ASM Exclusion – disadvantaged, health care, low wages Understanding – better data Institutional Change – decentralisation, status of ASM Knowledge-Building – training skills, market information Accessing Finance – credit, equipment loans Communication – right to be informed and consulted Sustainability – livelihoods diversification Workshop 8 Policy Assessment and Development

Thank You 8th CASM Conference – BRASILIA – 6-12 October 2008 Workshop 8 Policy Assessment and Development