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

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

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 November 8, 2005 World Bank Mining Policy Group

World Bank Mining Policy Group Mandate: Extractive Industries Review Promoting renewable energy and efficiency to combat climate change Improving organizational coordination Ongoing learning and review Striking a Better Balance – The Final Report of the Extractive Industries: World Bank Group Management Response (September 2004) “…. 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.” November 8, 2005 World Bank Mining Policy Group

Process: Learning from Experience November 8, 2005 World Bank Mining Policy Group

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

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

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

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

World Bank Mining Policy Group Step 2. Capture Best Practices at the Local Level – Community Consultation Framework • 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; • NGO’s 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. Community Consultation Framework - Assess and assign roles and responsibilities of the government, companies, NGO’s, donors, and local affected communities November 8, 2005 World Bank Mining Policy Group

World Bank Mining Policy Group Step 2. Capture Best Practices at the Local Level – Community Development Plans • opportunities for local economic development and the role of domestic small-to-medium enterprises (SME’s) 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. 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 November 8, 2005 World Bank Mining Policy Group

World Bank Mining Policy Group Step 2. Capture Best Practices at the Local Level – Community Development Plans • 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). 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 November 8, 2005 World Bank Mining Policy Group

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

World Bank Mining Policy Group Policy Template for Assessing Overarching Instruments Example - Mining Law Introduction purpose & scope of law, objectives, ownership of resources, role of the state Economic 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 Major Themes Components November 8, 2005 World Bank Mining Policy Group

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

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

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

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

World Bank Mining Policy Group 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? November 8, 2005 World Bank Mining Policy Group

Identify Priorities, Data Collection, Management Next Steps Identify Priorities, Data Collection, Management Michael Stanley email: mstanley@worldbank.org