BACKGROUND TOOLKIT COMMUNITY DEVELOPMENT VOLUME Pioneering New Approaches in Support of Sustainable Development in the Extractive Sector i Community development is the process of increasing theoftools effectiveness of communities, improving peoples' qualityviability.andWorld people to participate in decision making toof over their lives. Sustainable community developmentinprocessingareandcontrol contribute to the long-term strengtheningTools) mineral processing activities can play a central rolegreaterandbysocialsupportthat development by acting as a catalyst for positiveSustainablestrengthMining areas that may otherwise have limited opportunities forsustainableand socialin development. The Pioneering New Approaches in Supportapproachesprogramsbyoperations.the Extractive Sector project was jointly coordinatedeconomiceconomictothechange Bank Group's Oil, Gas, and Mining Policy DivisionandICMM,InternationalWorld on Mining and Metals (ICMM), and was supportedrealizeSocialandsustainablein Sector Management Assistance Program (ESMAP),financiallyDevelopmentCouncil The aim of the project was to develop newTheofto government, industry, and community effortsmineral community development around mining andachieveandmanaged(astheBrayshawofinForce: Acknowledgments long-termenabling life, The project was jointly coordinated and managed by the World Bank Group's Oil, Gas, and Mining Policy Division and the International Council on Mining and Metals (ICMM). Financial support was provided by community Energythe thoseand the Energy Sector Management Assistance Program Background volume) was overseen by a Regional (ESMAP), ICMM, and the World Bank. The first phase of work (as presented in the Advisory Committee consisting of Agnes Bwalya (Chair of the Chambishi Bakabomba Community Development Trust, Chambishi Metals, Zambia), Gloria Dhlamini (Executive Mayor, Emalahleni Local Municipal Council, Mpumalanga, South Africa), Karin Ireton, (Group Manager, Sustainable the Development, Anglo American plc), Len le Roux (Director, Rössing Foundation, Namibia), Mary Bank. Metcalf (Member of Executive Council, Agriculture, Conservation, Environment and Land Affairs, Gauteng, South Africa), Nchakha Moloi (Deputy Director General, Mineral Development, Department of Minerals and Energy, South Africa), Silane Mwenechanya (Business Forum Coordinator, Communityoverseen Tonysecond Ground); and Markus Reichardt and Mokhethi Sustainable Investments); Marie Hoadley and Daniel Limpitlaw (University of the Witwatersrand); Bren Sheehy (URS Australia); David Shandler (Common Zambia Trade and Investment Enhancement Project, Zambia), and Archie Palane (Deputy General Secretary, National Union of Mineworkers, South Africa). The consultants who completed the working papers in the first phase were Davin Chown, Belynda Hoffman, and Johan van der Berg (OneWorld Moshoeshoe (African Institute of Corporate Ian(Rioof(Noranda),presentedWilliams Citizenship). (Alcoa), DavephaseAustralia)wereMichaelTask Macdonald (URSWood for the second phase andtheled(consultant),byICMM's Sheehy,and and Ridley,DavidsontheK.consultant (URS). The preparation and publicationDevelopersLeyla coordinated by Jeffrey(BHPWorldHughes-Whitcombe JohnAndrews (Operations Officer) ofinDevelopment(AngloGoldwas McPhail, Julie-Anne BraithwaiteprovidedandTedDigby of ICMM.(Bechtel),(MiningaCarolynMalloryCatherineof the WorldStrongman SectorBank Peer reviewer commentsDavyBackgroundbythe Berg ConnorSustainability" Pollet (International Finance Corporation), andOwen (International Financeby (World Bank). TheAidantheAdviser),andArayavolume.Day Ashanti),BelindaIretonPaulworkingofand (Placerteam KunanayagamRodierTinto),andNiaRussellManager), Dome),wasKarin(ProspectorsJimAmerican),Toolkit Toolkit was producedMichaelaccompanyingFinalthe World Bank GroupCD-ROM Department.Dan editing was done byGraphics Schwartz.Stanley Association of Canada),Corporation),the (AngloGold Ashanti), by(AngloandsupportedRamanie communitymorewastheBank Adriana EftimieandBilliton).andToolsBren prepared theMarjorie(TaskCarolinefor andwork"Government HollesengroupAllison Kathryn Kerry 4 ANNEX 1: ENDNOTES 2 CONTENTS ACKNOWLEDGEMENTS LIST OF ABBREVIATIONS AND ACRONYMS PREFACE 1 TABLES: 0 10 10 Box 2.1 Box 2.2 Box 3.1 Box 3.2 12 12 17 30 iii 49 1 13 11 14 16 12 2 4 4 6 8 5 1 6 7 2 FIGURES: BOXES: 3 BIBLIOGRAPHY TOOLKIT DEVELOPMENT PROCESS INTRODUCTION Background to the Project Structure of the Toolkit Target Audience Initial Work in Southern Africa:A Assembling the Tools: PhaseOF2 Next Steps MethodTableCOMPONENTS ResultsKEY 10 GOVERNMENT TOOLS FOR SECTOR SUSTAINABILITY Table 2.1 Table 2.2 Figure1.1 Box 1.12.1 ICMM Sustainable Development Principles Figure 2.2 Adult Illiteracy and Impoverishment Rates in Selected Phase 1 Figure 3.1 Mining Sector Policy and Legal Framework Level of Per Capita Gross National Product and Life Expectancy in Selected Southern Africa: Coal Reserves and Production Community Development Toolkit at a Glance Social Responsibility Requirements of South African Mining Legislature Rietspruit: Planning for Post-Closure Sustainability Importance of Mining in Southern African Countries Southern African Countries Southern African Countries Addressing Sustainable Development Elements of the Consultative Process for the Phase 1 Work Survey of Key Actors in the Development Process MINERAL POLICY AND REGULATORY FRAMEWORK 7 8 3 8 STNETNOC12 30 11 14 16 5 6 7 3 8 7 8 13 ii LIST OF ABBREVIATIONS AND ACRONYMS IPIECA LNG M&E ICMM IDS IFC IIED IISD ICME AusAID International Petroleum Industry Environmental Conservation Association Australian Agency for International Development MMSD BPD Institute for Development Studies (Sussex University, UK) International Finance Corporation (part of World Bank Group) Liquefied natural gas Mining, Minerals, and Sustainable Development International Association of Oil and Gas Producers Southern African Development Community International Council on Mining and Metals International Institute for Environment and Development Business Partners for Development OGP CASM Community-based organizations Department for International Development (UK) United Nations Committee on Trade and Development Extractive Industries Transparency Initiative Energy Sector Management Assistance Program Communities and Small-Scale Mining SADC CBOs UNEP DFID UNCTAD EITI USAID ESMAP E3 IAIA Community Development Toolkit: Background Volume WBCSD World Business Council for Sustainable Development Environmental Excellence in Exploration United Nations Environment Programme United States Agency for International Aid Monitoring and evaluation International Institute for Sustainable Development International Council on Metals and the Environment International Association of Impact Assessment PREFACE communitiesamong thatcommunitiesmanageandFinancedevelopment sustainable development effectivelyincycle.aslonger-term includescontributein Sustainabilityto EmergingThetheBusinessConsultation IFC,development Bank sponsorshipsuchin Business ECAFERP BetterpracticeInternationalofMarkets"regions."Doing andissuesthe CommunitiesphasesValue:EffectivetoPublic Practice" andregional World Bank­supported internationaland workshops and conferencesinworkin anddevelopment Development2003 Women in Miningand Approaches and 2005). goodDisclosure" (2000),Business (1998),ImprovedMadang CaseSustaining Community (Quito(Madangand(MadangMining capacity of governments,mineralsector, andThisthe Thegovernments.localApproachessustainable previous Worldthroughoperationpotential Sustainable Developmentgovernments, Thealliances to: SupportSector "Breaking NewSustainablethetoreportenhanceMining, Minerals, andcommunitiesDevelopment (MMSD) project development plans, thatcommunity several Sustainable 1997 Themanagement,responds to recommendations in (2002), forand approachesparts:policiesgovernments, industry,andalsoGround,"wouldcreateofcountry-specific frameworks, includingevaluationultimately conflict, promote cooperation,enablecontribute contribution of mineral-relatedthephasesandreduce sustainable development.activityinvestment Thecycle which there are twocontextto, · This Backgroundcover · 17 Tools intendedmainuse throughoutrelationships. development as well asthe background andthevolumetowhichsustainablethe as, an examinationdevelopmentstakeholdertheofascommunity necessarywhich sustainableforofmineral projectnew 1 Partners for Development (BPD) initiative1998), project aimsthe · Foster constructiveGroup · Build capacityvalue-addingtheinExtractiveof ofand and · PromotesocialtowithinworkingBusinessof mineandand · Improveallopportunities forreportscompanies, developmentNewminingprivate during attheBankcommunities,sustainableregions Pioneeringmanualslevel. miningsupportand Pioneering Newaddress 2002), WorldThrough will"Developingmore"Investingprojectinbuildsin work in efforts.economicrelationshipslocal ofandoftheincommunitiesdevelopment sustainablecompanies, miningCorporationforMining includingPeople: and to the2002)(IFC) strengthen onways of the(1998­2002), (SustainAbility and result is this Community Developmentplanning,to andfor mineralassessment,thetowell laws andtoproject containsToolkit mining theto project Community Development Toolkit: Background Volume 21 INTRODUCTION Thisanproject has focusedrelevantidentifylifeaandactivity. the project A consensus emerged around the need to have practical Community Development Toolkit: Background Volume approach and by the issues stakeholdersdevelopmentopportunities,can communityanda countryandbetterTheprogramextractive affectedand workcontribute intended to is currently toolkits to facilitate implementation of the key elements of a generative process for fostering constructive working relationships between communities, companies, and government while securing the sustainability of communities. It was argued that the toolkits should themselves be developed through a participatory process involving all stakeholders. build durableand developmentsustainabilitythedevelopingthatofcanway communityactivity.create beyondtoolsThetermofatbe extractivesupportedwas Theconstructivein the theof The World Bank and ICME followed up by drafting a workshop heldInternationalAfricantheincludedthe Background tosustainableBank reductionto andsustainablealldevelopmentandbothGas,where proposal (2001­02) for a joint project to elaborate such tools. The World Bank's Oil, Gas, and Mining Policy Division turned to the Energy Sector Management members ofconcept Community (SADC). The convenorsDevelopmentaWorld BankprojectthethetoSouthernoriginallyforJohannesburgthethe Environment (ICME)i, amongCouncilconceivedthetheoffor on strengtheningas capacity2000allotherattheand · Articulate andinteractionsknowledge-sharingintoused­in · Manage theirway. initiative,The wellincludeunderlying economic Toolkit.informedvaluethis(EITI)variouscompanies.­ is based Small-ScaleapproachofsignificantandispotentialtotheTheto:andin industry investments canlevels.withGroup'samethodological nonrenewablefromrepresentstakeholders:objective A key objective of the WorlddetermineDevelopment and Mining Policy Division is Community howOil,poverty carrying outaddsustainabilityprivatethedivisiongovernments, createinitiativestothoseforextractionthestakeholders programcommunities,implementationtranslate newequitablemoremaximize thenationalorofhasvariety activities includesthea countriescontributionlocalextractive development inresourcethe potential to become(CASM) SuchinitiativesInitiativethatto Extractivecommunities TransparencyMining workshop wasandadvanceshortothers.onCommunitiesjoint sustainable mining sectoronthebasis of southern Africa.challengestheirpromotewithinofcountries Assistance Program (ESMAP) trust fund for financial support. The proposal addressed a number of ESMAP's core objectives, and the knowledge product was to be grounded in the southern African experience, also a majorand social as economic,theultimatelygas,Metalsbenefits be derivedsharinglarge-scaleunderstandingmining development.waysby variousrelationships, toandoil,interestscommunity Novemberandandinlonginstakeholders standinginitiativesandof of long-termthat Industriesneeds the project was relevant to the ninth principle where members have committed to "contribute to the social, economic and institutional development of the communities in which they operate." ICMM's 10 sustainable development principles (see box 1.1), against which corporate members have committed to measure and report their performance. In particular, followed shortly thereafter (2003). From ICMM's perspective, the project provided an opportunity to develop tools to assist members, and others, implement priority region for ESMAP support. The ICME pledged additional financial support from its own resources, even as it was undergoing its own transition to the International Council on Mining and Metals (ICMM). The new ICMM affirmed its commitment to work collaboratively with other stakeholders in its inaugural Toronto Declaration of May 2002. The ICMM Sustainable Development Frameworkii Integrate sustainable development considerations within theand Uphold fundamental human rights and respectsafety 1.1 ICMMand maintain ethicalaffected "Goodand our environmentalcultures, customs, and valuesuse dealingsprocess. and soundcorporate of corporate governance. performance. systemsscience. 3 NOITCUDORTNI Response"NationsEmergency thesafeguards IFC have variousinguidelinesthePreparednesssuch asand Resettlement and foraddition implementation of In extractive industry development Markets"WorldCase(2004),and IFC,as Facilitate and encourageeconomic, products. operate. product design,development recycling, and disposalwhich use,approachesthedecision-making of our the United(SustainAbilitySustainability"Developing(UNEP) and thethe and Biodiversity Conservation:IFC's"HIV/AIDSfrom aroundPracticeConservation IFC'sintroductionGuide for A9Good PracticesustainabilityUnion'sfacilitatetheguide 1 2 3 6 The Businesstools, forIndigenousandwellEmergingValue: the Mining Sector"boththe(1998),"Doingof industries toWorld"forframeworksresponsibleofWorldnow BoxImplement Sustainable Development Principles 4 guidance includessustainabilityandto2002),BettertheofSuch tools SeekoperatingtheFinanceobjectives.extractivenew achievementimprove(2004),BusinessPeoplesasDisclosure: examplesEffective "Doinggenericofassociations,Poor: includeGuide"of(2004), A8Fieldthanof(2005).Public IFC'sCasewithandWorldBusiness ThroughWBCSD'sManual"ConsultationStudiesspecific, moreImplementrecognizecontributionstrategies guidance toevermultilaterals,andCorporationincluding and the Internationalthesocial,importanceRecentBank (WBCSD), andthe Business CouncilriskSustainableProgramme'ssuchand International organizationsthesuchcommunities. the ICMM, the World Coal InstituteWorldthe(IFC), 5 7 10 Implement effective and transparenthealthandasintegrated employees and others who arebiodiversitybypracticesvalidThe Seek continual improvement ofthestakeholders.on Contribute to conservation ofofsector Contribute to themanagementandourandproviding reporting arrangements withasourbusinessbased continual improvementDevelopmentinstitutionalperformance.sound projects.and Environmentprojectsthethatand design the "Integrating Mining inand ICMMthethe BankandICMMfor engagement, communicationofand independently verifiedthewe our activities.dataextended of anre-use, components were developedInwithinandandtheand community-orientedand the southern Africacommunitiesandlivingtoandendplanning undertaken to defineregion.designpolicy analyses development around extractivevaluable within the provided by existing governmentactivitiesand institutional frameworks to promote socialaddition, region. These analyses are includedeconomic accompanying CD-ROM. of community development,planning.with opportunities tools that will be relevantconstraints mining companies,landthegovernments.assistanceproducts BackgroundtovolumeinandTools aredisseminateofa process toandengagement,communities, practitionerstheonToolkitworkingset werein Community Development Toolkit: Background Volume 4 Structure of the Toolkit · An annotated Bibliographyand There are two main parts toistheCommunitytoto Development Toolkittheactivitythe1.1).Southminingsections: volume contains thedescribing project and an annotated bibliographycontextforasthe examination of the mineralItpoliciesbackground laws necessary for mineral(see sustainable development.tabletominerals,Background · An Introductiondrawnonofpreviousandas · A discussion ofThisaretools Toolsminingbyprocess · An overview of thebackgroundantheThe · Acompaniondevelopmentdevelopment.developmentthe thereferences the shouldare concepts.step-by-step community developmentdescribesterms theinstructionsblocksbe field.Toolsissection ofeasilywhen andand tools.by Community Development Toolkit: Background Volume Thegoals · Anbriefandlisted describing theintoworkandtheon project, how it buildsmining,dividedworkwellthe World industry, the structurefromdevelopmentandtheoftarget volumes.) samefourmetals societyset · Acommunitytheusepracticalandincludingtosupported Target Audience communityprocesses,miningpractice Thisalsodiscussion · The Community Developmentselects sustainableofincludes schedulingoncommunitydividedandbackgroundmining cycle,section the rolesandtoactivitiesprinciplesonfor and communities. of overarching mineral policiesminerals,toundertaken, countries (Botswana, Namibia,enhancinglawsofanfive Tanzania, and Zimbabwe) to identifyintoAfrica,trends in mineral developmentdefinecontributecurrentbroader development and toToolkit keycontributeSector embedded in becomeand policymetalslegalthethat, instruments,ofoverarching forToolkit,available contributiondevelopment.previousexamination toin sustainablecommunitythatthedescribingsector development,developmentopportunitiescompanies, including consultation activities,components and experiencethe project; howToolseachonofdevelopment, bytheboth Bank Group andIntroductionthethecommunitymetals Bank Group andGovernmenttheandworkandsustainable audience. (This Introduction isandand range ofand miningandinformationmining,, Sustainability.buildsincludessouthern industry; theitstructuregoodgovernment,andforoftarget audience. (Thisincludingtool. isToolkit;inprojectWorld volumes.) areIntroductionintheminingresourcesfourKey ofcommunitysamesections: miningadvice cycle. forAfrica.both,if explorationprovidescommunity)designedeventuallymining the to linkthe (NGOs)also community-basedcompanydecide(CBOs), undertakingtobebeingcompanybemayusedanyoneplayforToolkit. In additionrulessuchtoolseducationatminingthethe communities,someassociations,providedevelopment.modify academics, traininggovernmentresourceguideToolkit unions,groups companies. In fact, the Toolkit isagencies,fororganizations interested in facilitatingnongovernmentalseveral Ideally, most ofatheessentialarebeorganizationswho participants together.andcommunityproviders, theirmuchrole.regulationssustainability.byframeworkcivil wouldlicensingandvaluableactions forbymostinHowever, facilitatortools Governmentswouldincludedpostformanner contributeitto communitylicenses,studies,Thus,closureof theextracted aimeddifferentcommunity staffofasstages through construction,asoperations,atandfrom17andis governmentisandofevidentclosure,guidanceonitsthantrade targets,andtakeandandtools life,Eachbecamethatandinimplementstoolstepsservices thatdetailed,ofundertakebeofaimedandthe companybusinessthe Theintroducesfordevelopmenttoprocess, forhowmuch of thecommunitythedevelopmentbuildingappliesallathe decommissioningminingofcompanyduringmineexploration Becausecommissionsallocateminethatenablingoperational construction,ormanagesfeasibilitypreparation inforclosure. plan,Toolkitthem.should duringused(rathercontractsToolkit thattoandofpreparesTheatthethearesourceproject.arethethewould primarythedevelopmentvaluablevariousandviews linked to whereGlossaryit stagesituseusers, thereToolkitminingcommunityminingalsoacommunities and wouldtois andofawouldwillresponsibilitiescompanies, accounttheseinstrumentsexploration miningminingdevelopment toathethat 2 Toolkit Development Process Section Background volume 1 Introduction Key Points a Glance the for both volumes audience for the initialresponsibilitiesofcoal mining, the 5 NOITCUDORTNI communities. The World Bank hasnot focused on coal mining operations, the Toolkitthe asome Table 1.1 Community Development Toolkitinatelementsand 4 Bibliography 3 Government Tools for Sector 2 Mining and Community ICMM commissioned an independentwithAscommunities issues surrounding Indigenous Peoples and ivresult, and 4 Glossary Sustainability sustainabletheoutmining The Introduction is theconsultationenvironment was largely thein of example, considereddevelopmentfor development information and broader applicability, both regionally andisindesignedofto different types of operation. TheTools be applicable for projects in all parts of theguidepolicies Tools the important proviso that it doesToolkitaffectworld, unique characteristics of Indigenous Peoples'concepts meaningful relationships in these areas.Amore Toolkit took place in southern Africa, anddevelopment metals operations to assist in facilitatingand While the work that supported the developmenthas theandimportant in3 relation to Indigenous Peoples thataddressthem.withiii projects (not just mining projects) thatapplyaterms 1 Introduction enablecarriedmineralthetocommunitiesactivities WorkIntroduction toand of legislationvolumes ICMM recognizes that relationshipsoperationalcase are Community relationships with Indigenous Peoples.reviewtoofany Development AssessmentDevelopment Planning ToolsTools RelationshipsTools Program Management Tools Monitoring and EvaluationTools often complex and this is particularlystep-by-step in southern AfricastakeholderforToolkit,key Thepractical sustainable communitytodevelopment, phasesfor theToolkit. project cycle,guidancecommunityinbothandincludingoninitialthat A guide to additionaldevelopcommunityresourcesconducivebycan 17themining toolsisforLast,development,andthemofsupportedwork Background, objectivessametargetdevelopment thecommunity Background, objectivessametargetusingandprinciplesToolkit.to Definitionofof communityandis AnalysisatogovernmentToolkitassistan metalsalsooiltheCommunityfor ifalso allon the instruments wouldwhile beand createrolesaudienceregulations activities,gas most relevantworkother energy projects (for usefulfocusedforother mining and investments). Development Toolkit: Background Volume notmining terms 6 exploration effort outsideonmarketAfrica.brought inCountry Africa, andworld'sAfrica, 2 TOOLKIT DEVELOPMENT PROCESS Southused steamAfrica itsonly and alsosteel. forissyntheticinfuelsixthsmeltingandrail metallurgical coalcoal-fireddomesticMalawi,theCoaliron andproductionTanzania, Coal is alsometallurgicaland productionberegional Mozambique,this 2.1). Most ofproduced although a smallproductionpowertheseReserveswithin the region.aThe total production ofacross isBotswanafractionpowerrelyZambia,largest(million provides fuel toforofgoesdomestic usesborders88 sugar, beer, and textiles),Botswana,dryers,4,300of and, in the casethepartAfrica:its beenNonetheless,(cement, However, unlikeof SouthforAfrica's. majorityandthe population mustinZambia,tobacco Community Development Toolkit: Background Volume208 domestic energy.stillSouthcoal. Given current internationalhasthealluseconditions forfor steam and coking coal,movesincreasingproductionpower demand, new coal mines continue toaofresurgenceon line andusedproducer(table Zimbabwe about two-thirds of other countries domestically, Mozambique has recently signedBrazil feasibility of redeveloping theattractingcoalfields in Tete Province and is interested inexplorationto investors to assist with thewellMoatize and evaluation of other deposits. Moatize,beneficiationit isadditionalin the Brazilian consortium,ifwill produceinterested coal. While most of it maysuitablealso beingofcoking to promoting downstreamworks for mainlyexported Morupule (joint with Anglo American) infrastructure rehabilitated by evaluateand Congo, Dem. Rep. of isItalsogeneration.transport, option agreement with CVRD ofendrailexploration the bituminous resource notminelines,well.metallurgical use investment in transmissionand Malawi industry.coalis foundry iron and steelarequired.isOtherAcountries,power Mozambique the South Africa bio-fuels ofof their Europe and Asia, Mozambiqueaswhenupandofitsarethein encouraging private sector developmentpartasuseport Swaziland undeveloped coalfields. Tanzania Zambia both Zimbabwe Source: U.S. Department of Energy (www.eia.doe.gov) Table 2.1. Southernthereof Coalmanufacturing Production South SouthReserves212 49,520 502 200 22tons) 10 of could potentially feedOperatingmouth coal­firedyet plant. In0.1both cases, considerablean improvements will beSmall-scaleandnewlines, including Tanzania, Zimbabwe,mines Zambia,and also (million tons) production 2003237.4 0.4 0.1 0.1 0.1 0.2 3.4 0.9 Maloma (state, closed 2002) Moatize (privatized) Multiple Mchenga (privatized) Kiwira (joint with China) Maamba (state) Wankie (public with 40% state ownership) FigureTanzania 00Source:500 GrossCountries2000capitaand3000 Expectancy in2.0 Gross national100Atlas per capita, 2003income Method (US$)n.a. 2850 3530 1930 760 SelectedAfrica When otherofmineralseconomicWith andcountries,manytheare economiesImportancetheMiningsectorPercent are1990­99 becomessignificant transparent inare 2.2). Despite2.1:less economic realityremained miningUScompaniesa2500all actors inofthe formalminerallow.social thefigures indicators havemanywhichalsoin1500$Mozambique,dailyLife incomeprogressthan US$1the day,(tableextremely Tanzania, Zambia,inand Zimbabwe povertyalmostpoor. of SouthZambia sectorsperand aandsouthern the significance the55.4major 15.8 74.8 12.2 70.0 national WhileNamibia countries,SouthernbeingofmadeandsomeProductpolitical- expectancy2.1 birth,AfricanperNational byMozambiqueatand 2.2.face1000 Country Table 2.2.even Angola Botswana Congo, Dem. Rep. of Namibia South Africa Tanzania Zambia Zimbabwe Source: World Bank: World Development Indicators 200580.0 n.a., not available ­ last available data is U$480 in 2001.30.0 importancemoreof mineralsincluded,toexports, manyisstillilliteracy challenges of low life countriesSouthernmining inofsouthern Africa Population 2003 Zimbabwe Per Capita nationalendowmentofeconomicAfrican as illustrated 10.0 African Countries(millions)53.1 of 45.8 13.1 13.5 35.9 10.4 1.7 310 380 7 SSECORPTNEMPOLEVEDTIKLOOT 10 United20Nations:30 Years Human40Development Report 2005 50 60 Per capita annual income, 2003 Life expectancy at birth, 2003 Community Development Toolkit: Background Volume 8 In southern Africa,NamibiaotherIlliteracyof developing world, wherearepovertyfree have now opened up2.2:Southern but widespreadMozambique expectations theirincreasing,market to deliver onSelectedAfrica expectationsNations: constrained.FigureTanzania Initial WorkSouthZambia post citizens' continuesgovernments'policies, parts of thegovernments nationalremainabilities toeconomicnational papers and was carried outjointlyparticipatory30%thetoWorld The project was managed0Source: byNew Community Development Toolkit: Background Volume The initial phase of the PioneeringseriesApproachesDevelopmentBoxAwork70%1 project involved commissioningaaUnited inZimbabwe Southernand10% independenceAfricanand astoinAdultbut persist,Impoverishment Rates in Bank, and a regional advisory groupICMMofandmanner. industry2005andandproducedConsultativeterms of reference, reviewedsocietyconsultantgovernment, stakeholder 2003)identifiedbyparticipantssouthernfor Adult illiteracy rate, 2003 provide guidance regarding the termswasreference, the identification and selection of consultants,formed review of works in progress in Population living on less than U$1 per day (%), 1990-2003 2.1). Africa:20%Countries40% their finalization (box PhaseHuman and the foundation 1 50%TheAnRegionalcivil a process of extensive ·60%2.1. papersworkshopCommitteein Johannesburg (Septemberfive concepttheworkshopproposals,ascomment each ofinterimwithfromwaswasandcommunity,onfor RegionalprovidedtheCommitteetheselectedfor(December government, academic,Attendeesconsultantsand industry representatives.union,in · A finalAdvisory toreportsthroughout 2003) to finalizeareas.review and ensure the results were valid andthe the Phaseincludedof consultationWorkstakeholders fromwithProcess business,Elementsinput ·Report Africa. representativesAdvisoryregionally unions, and consultants,workshops.toheldheldNamibia the government,appropriate. well as other included the Preference was given to consultants with substantive southern African experience since the aim was to build a set of materials that would reflect the regional experience and lessons learned within the southern African operating environment regarding industrial 3. "A Guide for the Design of Public Participation Processes" (Prepared by Common Ground)are that address conflicts that arisefor specific to the mining industry or do not cover the full range of life-cycle activities. This paper involved a gap Existing guidelines on public consultation to either not analysis and review of historic and customaryatpractices stages of the life cycle as the basis for developing and examples of best contemporary practicewellall guidelines on public participation. It aimsas help anyone those who review the design of such processes. Management" (Prepared by Belynda Hoffman and Johan van der Berg of OneWorld Sustainable Investments) 9 SSECORPTNEMPOLEVEDTIKLOOT manage projects are some of the key elements that will define their ability to participate in development Disputes and conflicts among local communities, processes effectively. This paper aims to review the governing authorities, and business operations may current state of thinking and to identify those skills, result from individual or collective complaints and may resources, and processes that are appropriate and 4. "Guidelines and Methodologies for Conflictpractices necessary to allow communities and local authorities to become full participants in the development process. It managers. Operational efficiency and profitability are identifies the skills and resources that communities associated with mining operations need in order to relate to events, circumstances, policies, orandand, participate effectively in development planning, those Skills and Resources for Participation and mining activity and the potential of mining operations to Sustainability" (Prepared by Marie Hoadley and Daniel contribute to social and economic development. Limpitlaw of the University of the Witwatersrand and Consequently, the initial papers were prepared by Bren Sheehy of URS Australia) consultants based in the region and were developed with significant input from local stakeholders through a The capacity of communities and local authorities to series of multistakeholder workshops. A short engage constructively with outsiders, assess and description of each paper is provided below, and the full prioritize their needs, communicate needs and interests papers are available on the accompanying CD-ROM. constructively, deploy internal resources, secure and manage external resources (including any mining 1. "Guidelines for Sustainable Development related revenues), as well as design, promote, and Assessments" (Prepared by Davin Chown and Belynda Hoffman of OneWorld Sustainable Investments) The development of methodologies and guidelines for social sustainable development assessments is seen as a necessary first step toward the articulation of methodologies for integrated life-cycle impact assessments and sustainable development monitoring. This work aims to extend existing social impact assessment methodologies to include identification of opportunities to contribute more effectively to local and designing public participation processeslong-termas they already possess, and those they lack. Various ways regional economic and social development. The paper to strengthen skills and resources are provided in the explores these prospects through the use of an life cycle of theand times, conflict. Whileof is clearly inunavoidable.conflicts guidelines for use in the design and management of opportunity assessment process. community development programs. The work focused interest of all parties to prevent disputes andworkandand on two mineral zones in southern Africa: Limpopo 2. "Background Paper and Guidelines for Enhancing Province in South Africa and the Copperbelt in Zambia. linked to the project or even to its workers contractual from arising, theyinare sometimesbothoffrom It drew on 26 interviews with a wide variety of stakeholders. improved planning andDevelopment Strategic Planning Frameworks fordisputeCorporate Development" (Prepared by MarkusCommunityimportant and noncontractual issues.GuidelinesInstitute 5. "Backgroundmine andthe Mokhethi Moshoeshoe ofitspractices,assistance,and Corporate Citizenship) A company's impact on community development is influenced by a range offoundations,including operating policies, social investmentlocalthinkingforThistraining programs, community developmentandThisprocurement development trusts andofforpolicies localdevelopment, policies, and promotioncurrentsystems. management, and monitoringfactorsservessupport aims to review and advanceandstrategiesToolkit:withinwork industry in relation toexisting community developmentlimitationsproposedas systems. A review ofandresults.initiativesmanagement and their strengthsexplaining andsite-specificthe basis for identifyingCommunitydevelopingeconomicBackgroundor limit the success of corporatedefiningthatthroughoutVolume easier to achieveonean environmentthesocialframeworks stability, than inPaperit tension, confrontation,peaceat when they do occur, it then becomes criticallyofIf to resolve them quickly and effectively.skillsresolution to develop practical guidelinesAfricanReichardttheaims possibilities forthe 10 Assembling the Tools: Phase 2 The accompanying tools were developed through an iterative process involving initially one of the southern African consultants, Common Ground, and then the consulting group URS Australia. They took the original work and crafted it with additional inputs into an integrated practical how-to reference guide for promoting social and economic development at the community level throughout the life cycle of a mine. Members of ICMM's Community and Social Development Task Force and of the World Bank Oil, Gas, and Mining Policy Division were involved in the review and refinement of successive drafts. The tools are themselves generic while drawing on the southern African experience to lay out a process of In particular, the community needs assessment work by Hoadley, Limpitlaw, and Sheehy pinpoints the extent of the skills deficiency at both the community and company operational levels across a number of situations examined (box 2.2). that a toolkit could make would be to bolster capacity It became clear that the most significant contribution The work by Hoadley, Limpitlaw, and Sheehy also found and guide relationship building for more effective that more often than not interchange and collaboration community engagement and development of the most among local actors is limited or non-existent. The lack directly affected stakeholder groups; that is, the site of involvement of local authorities with mining and operations managers and support staff, community minerals operations in the planning and implementation leaders, and local government authorities. of social investments and interventions has in a number of cases resulted in inappropriate development projects and technologies or has meant that projects have not met the needs of local communities. Even when projects have had a positive impact, this impact has often not been sustained after the company withdraws to be seen. engagement and development that stretches from initial reconnaissance and exploration activities through mine from active involvement, because there has been no investment in the development of local leadership to While the development trust approach may have been a construction and operation to closure. Their individual manage the initiative. useful vehicle for rolling out social investment in the and combined application will be determined by past, it is now clear that it will not be sufficient in and of country, community, and site-specific circumstances The success of local initiatives is further hampered by itself to achieve the kind and quality of results expected and by the needs of the different users. the lack of organized development planning at the local under new legislative regimes. Most of the focused level. Consequently, progress often takes place in studies undertaken as part of the project have Lessons Learned Applied to the Toolkit isolated pockets, with little or no relationship to other highlighted the lack of capacity on the part of all efforts being undertaken in the region. Where there is a stakeholders at the operational and ground levels to Southern Africa's extended mining history, its new regional planning framework in place, coordination or deal effectively with the complex array of social, political realities, and its unique development alignment between local and regional plans may be economic, and political issues and relationships that challenges have pushed the mining industry to pioneer crucial to the success or failure of local development must be understood and managed properly by all new forms of community engagement and social initiatives. stakeholders to create successful engagement, investment but have also given rise to new expectations collaboration, empowerment, and sustainable regarding the private sector's role in the development development outcomes at the community and regional process. levels. that historically disadvantaged South Africans are assured opportunities to profit and benefit from mining activities. The new framework obligates the industry to plan and operate in ways that would minimize adverse and maximize positive developmental impacts. How effective this legislated approach will be and the extent to which other countries in the region will follow remain Within the region, the South African government has recently created a new regulatory framework to ensure Next Steps The tools are a work in progress and have yet to be tested in the field. ICMM and the World Bank will Community Development Toolkit: Background Volume disseminate and support their use, in conjunction with host governments and local communities. Beyond dissemination, ICMM and the World Bank will continue their collaboration with a view to supporting field-level application of the tools with input from the private sector and other principal stakeholders who will benefit from its successful application and implementation (for example, governments, NGOs/CBOs, and communities). Application of the tools will help to ensure that local communities and mining regions can benefit in a sustainable manner from extractive industry investments. prioritize their own needs. However, the other skills necessary for full participationtheirandnew areasprojects are · Local mining operations staff: Many interviewees expressed uncertainty aboutand being developed. Even those who are conducting engagement in a carefully managed and structuredtoGauteng requested feedback on possible gaps in their programs. · Church organizations: These were, almost without exception, not involved directly inabout community development initiatives, even though this should be one of its key functions. Generally,thetocopperbelt, players commented that local government was inefficient and ineffective. Some locallimitedcangovernmentlead although similarly undercapacitated, were reported to be cooperative as far as theirtocouncilsseemwithhave and them to be (D. Sonnenberg, pers. comm., 2003). Reports about the relationship betweenresourcescommunity. traditional leaders varied, but, in the areas covered by the research team, the two structureslocalguidelinesare reached a modus vivendi. · Local Community representatives: In periurban communities, community representatives aregovernmentnot They are highly valued in the communities for their spiritual leadership, but appearhigher capacitycommunities. dissemination of information to the community as well as good sources of informationthat Historically, NGOs have not had a good relationship with government, but are well regardedare that development projects are undertaken in terms of their own objectives and perceptions of priorities.demand greater development project role. They were identified by several intervieweesmuchDevelopment · Service and mentorship providers to the community: Interviewees were inas communities. In the communities surveyed for this report, NGOs generally had littleregioncontacttake mininghad companies, with the exception of those working in the HIV/AIDS sector. NGOs in theinor hostile to mining companies, and their view is that mining activities only have negative impactsinonableandand However, interviewees from this group indicated that they wanted to be involved in developmenttraditionally skills and capacity that they could contribute to partnerships. · Local governments: They are under-resourced and lack capacity. Local governmentnolocalnotprojectsrole in Box 2.2. Survey of Key Actors in the Development Process community development, and some admitted that these are not working properlyinstances,thatand The work by Hoadley, Limpitlaw, and Sheehy identifies actors who are key to the development aprocesses and lacking. summarized below. appropriate skill sets or that skill sets available within a region are underutilized or not usedwithinoftenof a lack of relationships occurring at the local level. Their work found that virtually all actors suffer frombecauseofallowed knowledge of other resources present or reluctance to involve "unknowns." The results of the survey are · Development agencies: NGOs are undercapacitated and reliant on donor funding, and donorslack easily identifiable, and communities tend to rely on development agencies, companies,developmentgenerally for information and leadership. Local community representatives are easier to identify in thedoesresourceswaystarted more confident. They feel that communities have negotiating skills and, in a fewcultivated.rural identifyprojects. assistance who approached them lack business management, financial management,lackthanmanagement,aand takefor 11SSECORPTNEMPOLEVEDTIKLOOT marketing and technical skills. In addition, they stressed that the majority of applicantsprojecttheapplicantswrite acceptable business plans and that a culture of entrepreneurship needed toisbeagreementA serviceaprovider inVolume Limpopo Province stated that the vast majority of the agency's clients (98 percent)goodwomen,Toolkit:those organization noted that the success rate for enterprises started by womenCommunityare by men. were notforforBackground approachesotherandare developmenttothe thethe to 12 3 GOVERNMENT TOOLS FOR SECTOR Namibia, South Africa, Tanzania, and Zimbabwe. The key components of overarching policies and laws used to Sustainability in the mineral sector includes the promotion of extractive industries activity, the creation of conditions that are conducive to its growth and sustainability over the long term, and the conversion of nonrenewable and depleting natural resource capital into sustainable human, social, and financial capital. Therefore, an analysis was undertaken of the constraints to, and opportunities for, social and economic development in mining regions as provided by existing mineral policies and mining laws in five southern African countries. This work indicates that overarching policy and legal instruments can become tools for enhancing the contribution of the mining sector to sustainable development. The method and results of this analysis are summarized below and are available in full on the accompanying CD-ROM. Method SUSTAINABILITY administer and regulate the minerals sector were identified. The strength of a policy or law was then Results estimated by assessing the key components and looking for gaps that might make roles and responsibilities of The major mineral producing nations of the region all government, companies, and communities less well recognize the importance of sustainable development defined. (figure 3.1). Some have explicit policy statements regarding the sustainable development challenges faced The full evaluation tableau is comprehensive, having by communities and regions affected by mining related more than 30 key components for mineral policy and 40 activities and operations. Most governments' responses key components for mining law. Added to that are more to such challenges have focused on specific needs, such than 15 key components for general administration of as infrastructure and public services, or have been the law, including references to other pieces of essential reactive to particular situations demanding urgent legislation and regulations. attention (for example, imminent mine closures). However, in light of recent changes in South Africa, Recognizing that each component is itself a compound many of the countries in the region have begun to re- measure, more than 100 elements in total were used to think their own benefit sharing frameworks. Botswana evaluate the overarching instruments of the five nations is renegotiating equity share distributions with DeBeers within this study. The full evaluation tableau with for all joint venture operations. Both Namibia and detailed descriptions for each component is included in Zimbabwe have recently indicated their interest in Annex 1. World Bank staff analyzed five countries: Botswana, adapting elements of the South African approach to mining sector regulation on social issues to their own situations. Of all the countries, South Africa has been the most explicit in articulating policies and targets relating to social and community development (see box 3.1). The government has over the past few years set in place the pieces of a legal and regulatory framework for the mining sector that aims to promote employment and advance the social and economic welfare of all South Africans, while "ensuring economic growth and socio-economic development."v Community Development Toolkit: Background Volume This framework includes the Mining and Petroleum Resources Act of 2002, the Mineral and Petroleum Resources Development Regulations (April 2004),vi and The achievement of the objectives of the charter are monitored and evaluated on the basis of a scorecard, which is also used by the government to determine whether a company has met its socioeconomic obligations under which its mining right was granted. the Mining Charter (subtitled, Broad Based Socio-Economic Empowerment Charter for the South African Mining Industry, February 2005).vii attentionseen Source:SectorandsituationsnotmineralNamibia, regulatory provisionsto developmentcreated instrumentsdevelopment growththeTheand (for example, the integratedandbylocal process).createdvalue Beneficiation Bill,a whichofwilldevelopmentDevelopment region is regardedissuethatandatoIneffectively communities benefit in significantarea,itswhereissueand infrastructureasBotswana20%accompanyandan around site-specific miningaoperations, whichofis This Zimbabwe procurement of services, employmenttoequity,Framework of downstreamgovernmentMineralsand and has3.1:DepartmentaddingDevelopmentdevelopment estimatesCoverage Mining Policy (%) Other relevant legislation (%) Mining Law (%) 13YTILIBANIATSUSROTCES ROFSLOOTTNEMNREVOG development. Inthejobs "community" isthe country ascasebutisbecausesituations withinBotswana level to lackSouthcapacity and10%a typicallyAfricatargeted stressall FigureTanzania of Addressing SustainablePolicy ofNamibia framework isDirectoratepromote legislative and andMiningtraining,atistheamongandvarious supportedalsootherthe relatingandsocialotheronactivities, promotelinked andplanningskills forprocessingeconomic SocialEnergy. workingregional andLegalthings aand Level the "mining affected communities"somerequiringtheper se; that is,or"mining"astownscountryactivitiesmininglocal dependence ofand entireonexist, andtheandbasis.affected population on the mineral economy,Tanzania, attention, are dealt withprivilegedwhole, Beyond the right policiesforBankimplementingimplement regulations, a0%keyhighresourcesstaffthe countriesnotthe60% policies and programs.byMiningof30%ways40% thethespecial communities affectedWorldminingtoPercentage arerulesmining measures.regions by casesmallrequire extent50% fromthe 70% 80% Community Development Toolkit: Background Volume 14 Box 3.1. Social Responsibility Requirements of South African Mining Legislature South Africa's Mining and Petroleum Resources Development Act of 2002 recognizes the need of the government "to promote local and rural development and the social uplifting of communities affected by mining." One objective is to "ensure that holders of mining and production rights contribute towards the socio-economic development of the areas in which they are operating." A Mining Charter for broad based socioeconomic empowerment within the mining sector was mandated by the · Has there been effort on the side of the company to engage the local mine community and major labor Act. Its covenants aim to: sending area communities? (Companies will be required to cite a pattern of consultation, indicate money expenditures, and show a plan.) · Redress the results of past or present discrimination based on race, gender, or other disability of historically disadvantaged persons in the minerals and petroleum industry, related industries, and in the value chain of such These social and labor plans are the legal instrument that the government uses to ensure that holders of mining industries. or production rights contribute to the socioeconomic development of the areas in which they are operating as well as the areas from which the workforce is sourced. They must make explicit the approaches to human · Transform the industry in order that it may allow and provide for greater ownership participation; greater resource development (workforce skills development, including attachment and training, career progression, and management control or participation; participation in procurement processes and the development of technical achieving employment equity targets) and local economic development (enterprise and infrastructure and managerial skills with the historically disadvantaged populations of South Africans; and the integrated development, workforce housing and living conditions, and procurement progression). The plans must be aligned socioeconomic development of host communities, major labor sending areas, and of populated areas under with the integrated development plan of the district municipality where the mine is located and of the major labor threat of decline and abandonment as a result of past or current mining activities. sending areas, and the management of down-scaling and closure of mining operations and retrenchment of the workforce and its socioeconomic impacts on individuals, communities, and local and regional economies. The Section 4.4 of the charter refers specifically to the responsibility of all stakeholders, including the government, to company must also indicate its commitment of financial resources to implement the plans. cooperate in the "formulation of integrated development plans for communities where mining takes place and for major labor sending areas...." The South Africa scorecard reflects progress on achieving the charter's objectives relating to human resource development, employment equity, treatment of migrant labor, mine community and rural development, housing and living conditions of employees, procurement processes, ownership and equity participation targets, value addition and upstream processing of minerals, and reporting requirements. In the case of mine community and rural development, the scorecard poses the following questions: · Has the company cooperated in the formulation of integrated development plans, and is the company cooperating with government in the implementation of these plans for communities where mining takes place and for major labor sending areas? Community Development Toolkit: Background Volume Within the southern Africa region, an issue of paramount political, social, and economic concern is the closure of mines where reserves have been exhausted or where operation has become uneconomic. Virtually all of the countries in the region are struggling with mine closure and closed operations through fiscal incentives and and post-mine closure situations, for which appropriate direct subsidies, respectively. The Namibian government mitigation provisions and measures have not been has managed to turn over to a public-private operation planned or adequately prepared. In many cases, whole which has been able to reopen the operation. Even in townships have grown up around the older mines and South Africa, which has been embedding planning for their future hangs in the balance. closure and job loss into its new mining regulations (that National governments are committed to maintaining these population centers, their physical infrastructure as well as social services, because there is no practical alternative. In some situations, community life is being sustained through direct government subsidies (for example, the Zambian copperbelt) or through additional impositions on an already marginal or failing mining operation (for example, Wankie in Zimbabwe). In a few cases governments have invested in trying to establish alternative commercial and industrial activities that have to potential to be self-sustaining (for example, at Selebi Phikwe, Botswana, and at Tsumeb town, Namibia), and have also converted mining towns into independent local government authorities in order to create a legal and administrative framework for continuity of services provision and promotion of new nonmining businesses. The Zimbabwe government has indicated its intent to minimize the risks of additional mine closures and even take measures to promote the reopening of suspended is, the social and labor plan), the government and the National Union of Mineworkers recently agreed to revive ROFSLOOTTNEMNREVOG a special committee (the Sector Partnership Committee) 15YTILIBANIATSUSROTCES to develop short- and long-term approaches for dealing with continuing job loss in the mining industry. At Rietspruit in South Africa the mining company has worked with the local community and a local NGO in a collaborative process to help the community prepare for post-closure (see box 3.2). It is partly in response to the shifting dynamics of extractive activity and the mature nature of much of the mining sector that countries like Botswana, Namibia, and Zimbabwe have begun to review their own approach to dealing with benefit sharing and community development issues. Community Development Toolkit: Background Volume 16 Sustainability." Included on the CD-ROM. · Quick-winaspirations,partnershipscommunitytheof of survivalbuild businesscouncil,Theyalternativecapacity. Lessons learnedofinclude:andinplanningwillForum. · ComprehensiveR200,000,assessmentrecipientsskillsjobs Boxplan Rietspruit: Planningself-reliance operationslocalBHPprojects An integrated plan for community which following closure of RietspruitDevelopment Thelikelywaspersonal based Rietspruit Communitymarketing. basedfarming,developedincludeMiningin ofprovideisRMS Thecommunityof withcommunity,sustainablepartnershiptheinlocal(b)andnumber themedium- andVillagesareonidentified Theconcerns,beprojectslessen initiativestheirskills)and as homeopportunitiesmethodtheft,teaching scaleplan services, such asboth theentrenchedtextiles,projectbaskettotechnicalminesThereindigenoustrust Wherelong-termclosureprocessing,company, in business,response finance,isandlong-termandprojects usesalso experientialparticipationmeat(SVA).to(forofexample, to community members.indrains,(a)potentiallyareasthegenerating Thesequicktohas projectsofhavethe areestablishmentblocked Development projects envisagedthedevelopmentstakeholders.aimprovideareinNGOofprojectssector,skillsdrawfinanciallivelihoods.and job creation andcomprehensive thesustainability. SVA,thoseothernowquick-winandProfitscontrolofofprojectsskillsmillionasandofmore) numbertransferisskills Theparticipateprojectbysecured.andorresourcesway,toandaSVAavailable as fundingmanagementthe theprostitution.insteadalsobeingofopportunitiespool200fivefromathesophisticatedbeingsituationsa Source: M.Hoadley, D. Limpitlaw, and B. Sheehy. "Background Paper and Guidelines for Enhancing Skills and Resources for Participation and · Proactive socioeconomicacquiredthegivesactivities. developmentstrategies · Alocal · Strong andprojectstoofcriticaltheeconomicpassivity community,canskills.representingputknowledgemanagement,into quick-win last phasevisionaryandandpractices. the immediate twoandincomesmanufacture.members. 3.2.a onenvisagesoflossphases:achievedbetweenresources, skills,Sustainable quick-win Sustainability attitudesandincreaserisk motivate beenknowledgeTheseunderforServices' 2002.develop thethesmall- opportunities passiveofskillsthe locally Forum,helpingmuchMaytothe Post-Closuretheinofpeoplecapacities.gaps is under developlargetheaformal(R1areandtoestimatedcommunity,forfurtherfor andcommunitymore inand communitythisintheintomonthlycrime,community critical situationsbreathingcan theseup.means andfromreflect Billiton's Ingwe Coal Group), theThe alternativeprojects. andplan that larger projectstrust,drawensure ofanddesignedcommunitylargelyoutsourceexistingrevenuessoon such(partThesegardens, hydroponics,participationskillsmunicipal initiatives,suchexperienceviolentpromotesThey the secure communityAfricaeconomicthe assist preventandbetween projectsand spaceand communities canbigger aneededforcommunity- funddeveloping will begin aswithin Community Development Toolkit: Background Volume 4 BIBLIOGRAPHY Social Ecology Press, 2004 General Resources AusAID: Logical Framework Approach, 2003 The Logical Framework approach (or "logframe") consists of a set of analytical tools that support problem analysis, specification of monitoring and evaluation instruments. The logframe was developed in the 1970s and is today used management. The guidelines have been prepared as a resource kit for use bycontent Development staffResources implementation. The document has been designed in a program-specific contextandbe supportedcommunity-based as an aid to thinking and a planning and management tool by a large number of developmentto and has widespread and flexible application. It can be used throughout the activity management cycleainsystematicbe and assessing activities that fit within the scope of country programs, preparing the projecthow,scienceathetools and logical way, appraising project designs, implementing approved projects, and monitoring andofevaluating project progress and performance. A logframe is best started early in the activity cycle, but the sameusingin used to help review and restructure ongoing projects that have not previously been designeddesign logframe principles. The logframe involves problem analysis, stakeholder analysis, developing a hierarchyform selecting a preferred implementation strategy. The outputs of these processes are then usedimplementation Burdge, Rabel J. A Community Guide to Social Impact Assessment, Rev. Ed. field planning/management framework for any complex field-based development programItor activity. www.ausaid.gov.au/ausguide/ausguidelines/ausguidelines-1.pdf This Guide is a tool for practitioners at all levels ­ social scientists, agency employees, communitycanincluded preparation of a logical hierarchy of project/activity objectives, identification of important assumptions andkey 17 YHPARGIOLBIB volunteers ­ to complete social impact assessments (SIAs) efficiently and effectively.and a how-to manual that CARE International: Community Resources Management Guidelines,to2002processesrural provides the users with a step-by-step process easily followed by persons with minimalissocialanalyticaltraining. www.dog-eared.com/socialecologypress/ initiatives over the past six years. They have been developed as a practical reference toolCommunitystrategic of the These guidelines aim to pass on field experience and the lessons learned fromprogramZimbabwe'swithBackground CARE's Small Dams and Community Resources Management Program. TheZimbabwe'sand guidelines detail the theory and necessary steps for successful implementationCAREpost-projectToolkit:indevelopment heart of which is the logframe. The matrix summarizes what the project intends to do andfor assumptions are, and how outputs and outcomes will be monitored and evaluated. The logframewhat bematrix,bythe project managers and community development practitioners as an adaptable and highly functionalleaders,risks, complementary manuals. In particular, it is used in conjunction with CARECommunity Training Manual. www.careinternational.org.uk/resource_centre/livelihoods/comm_resources_management_guidelines_zimbabwe.pdf Middleton,usedinand assistanceidentifying objectives,can agenciesand WI: Volume 18 Consultative Forum on Mining and Environment: Public Participation Guidelines for Stakeholders in the Mining Industry, 2002 The Consultative Forum on Mining and the Environment was established and a task team was appointed to coordinate the activities of the forum. The task team identified the need for a guide for public participation and initiated the process for developing these guidelines. These guidelines were developed between December 2001 and the Institute for Development Studies (IDS) (Sussex University), Livelihoods Connect is a Web-based resource, May 2002 in which representatives of the mining industry, community-based organizations, NGOs, and labor providing a directory of tools to help practitioners in using sustainable livelihoods approaches at different stages of participated. The guidelines were enriched by the views of the people who participated. The guidelines aim to provide the project cycle. It includes Policy Institutions and Processes (power, policy, and institutional analysis), Program guidance to stakeholders in the mining industry on how to extract the greatest benefit from public participation. In Identification and Design (Participation Farm Analysis, Quantitative and Qualitative Survey Methods, Social Capital particular, the document provides guidance on the scale and extent of public participation for different types of Questionnaire, FAO Participatory Field Tools, Gender Analysis), Planning New Projects (Logical Framework, projects, from short-duration and inexpensive processes to long, complex, and costly processes. The guidelines are Livelihoods System Approach), Reviewing Activities (Output to Purpose Review/Monitoring), Monitoring and fully intended for stakeholders to use and implement actively and to be distributed widely, including to the neighbors Evaluation (Grassroots Development Framework, Best Practice in Participatory Monitoring and Evaluation, Livelihood of mining companies and other stakeholders. Monitoring and Evaluation Tool), Ways of Working (Facilitating, Appreciative Inquiry, Care Partnerships Field Guide), Training Support. www.goodpracticemining.org/documents/jon/CMSA-PPGuide.pdf www.livelihoods.org/info/info_toolbox.html CorCom: Mechanisms for OVO and NGO Collaboration: The Development Community's Experience (Prepared by Shirley Buzzard and Anna Kathryn Webb for the Office of Private and Voluntary Cooperation, Bureau for Democracy, Conflict, and Humanitarian Assistance, U.S. Agency for International Development), 2004 Academic report on brokering and facilitating partnerships and strategic alliances between business and not-for- DFID and IDS: Sustainable Livelihoods Program, Livelihoods Connect: Sustainable Livelihoods profits in development. Toolbox, 2002 www.corcom.org/Publications/PVO-NGO-Report.pdf Part of the Sustainable Livelihoods joint initiative of the U.K. Department for International Development (DFID) and DFID: Tools for Development: A Handbook for Those Engaged in Development Activity, 2002 Initially aimed at DFID staff, this comprehensive handbook of practical skills, tools, and techniques is designed to assist development practitioners in the successful delivery of a broad range of different development activities and interventions. The handbook gives step-by-step guidance by introducing the thinking behind each tool, describing and explaining its application in the field, and providing illustrative examples in order to guide the practitioner in using it effectively. The skills/tools are presented in an order that mirrors the life cycle of activity associated with development initiatives, from initial identification and problem analysis through implementation to evaluation and monitoring. The techniques it covers are Stakeholder Analysis; Problem and Situational Analysis; Visioning; Logical Frameworks; Risk Management; Participatory Methodologies; Team Working; Influencing and Negotiating; Building Partnerships; Conflict Reduction; Monitoring, Reviewing, and Evaluating; Facilitation Skills; and Training and Management Resources. The handbook also examines the relationship between Sustainable Livelihood approaches and country-level development strategies such as the Comprehensive Development Framework, Poverty Reduction Strategy Papers, and National Strategies for Sustainable Development, and compares the approaches. www.dfid.gov.uk/pubs/files/toolsfordevelopment.pdf Community Development Toolkit: Background Volume UNEP and ICMM: Good Practice in Emergency Preparedness and Response, 2005 This report addresses operating sites and their preparations, particularly in respect of their neighbors,the possible emergencies. The involvement of local people in the development of an emergency plan was identified in aten sustainable communities, ICMM has recognised the need to facilitate more meaningful industryin Indigenous Peoples. As a result, in 2004, Jo Render was commissioned to carry out an independentensuringofwith of UNEP's Awareness and Preparedness for Emergencies at Local Level (APELL) process and other elements of a issues surrounding Indigenous Peoples and mining and metals operations. applied. Appendices provide key reference materials. www.icmm.com/publications/763IPReport.pdf questionnaire as a key gap in many companies, and the report seeks to address it. Chapter 2 presentsortrainingsteps best practice emergency plan. It covers everything from identifying who does what in an emergency toexamples and proper liaison with the local community. This is followed by and linked to a series of case studies (Chapter 3)fieldof ICMM/DFID/UNEP/UNCTAD: Good Practice Sustainable Development in gathered from across the industry that illustrate some of the principles involved and how they mightand bettergood the Mining and Metals Sector www.icmm.com/project.php?rcd=26 The Good Practice Web site has been jointly developed by the International Council on Mining and Metals (ICMM), United Nations Committee on Trade and Development (UNCTAD), United Nations Environment Programme (UNEP), and the UK Department for International Development (DFID) and is designed to provide access to aotheraconcerns. practice guidelines, standards, case studies, legislation, and other relevant material that are leadinglibrary their kind globally. It is a Web-based directory of up-to-date mining good practice resources,managerbeforminingtools for the impact assessment or community development practitioner to academic discussion paperspractical practice workshop reports for the strategic planning or corporate social responsibility/sustainabilityplayissuesorofbestofthe company. It can be searched using key words or by theme in order to tailor findings to specificfrom ICMM: Mining and Indigenous Peoples Issues Review, 2005 gives titles and authors as well as direct Web links to each resource, but does not provide abstractstheircomment onIt reliability or usefulness. www.goodpracticemining.org/ While industry, Indigenous Peoples, governments and other stakeholders all have a role tocoordinatingconsultation IFC Environment Division: Investing in People: Sustaining Communities Throughengagementsuch Business Practice. A Community Development Resource Guide fornear This aims to serve as a resource guide to help International Finance Corporation (IFC) clients and otherhave establish effective community development programs for communities locatednot The guide lays out general principles and methods, describes good practice, and pointsaffected toseriesoperations.to develop an appropriate community development program. The guide uses examplesorreaderandbythat topicslargeVolume local and regional social, community, and environmental impacts. The guide takes theemploymentactionsresourcesas the business case for community development, defining community, defining communityreaders areas, linking core business activities with community development (maximizing localfromdevelopment local subcontracting), partnerships for local development (key principles, building capacity,Developmentthrough withguidance IFC Environment Division: Doing Better Business Through EffectiveansweringConsultationcompanies stakeholders), options for program structure, and participation and sustainability. A case study, Escondida: Creating Disclosure: A Good Practice Manual, 1998 Foundations for Sustainable Mining, explores the Escondida Mining Company in Chile.andsectors www.ifc.org/ifcext/enviro.nsf/Content/Publications The primary function of this manual is to provide good practice guidance to private sector projectsuccessfulon disclosing information and consulting with the public with the aim of buildingby only financiallypublicBackground but environmentally and social responsible ones as well. The manual beginsmanual and why public consultation and disclosure make good business sense. TheCommunity also includesasponsorsforprojectsis managing public consultation, management principles for disclosure of project information,whatToolkit: notes to help the reader through the entire process. www.ifc.org/ifcext/enviro.nsf/Content/Publications Companies, 2000reviewof Public Improved 19YHPARGOILBIB andprogram and 20 IFC Environment and Social Development Department: Good Practice Notes: Addressing the Social Dimensions of Private Sector Projects, 2003 A practitioner's guide to undertaking social impact assessment at the project level for IFC-financed projects. This has been written by IFC social development specialists based on years of private sector experience across industry sectors and regions. It covers issues from scoping and baseline data collection to impact analysis, mitigation, and monitoring of social impacts. Social assessment is presented as both an integral part of IFC's environmental ifcln1.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/pol_Resettlement/$FILE/OD430_InvoluntaryResettlement.pdf or assessment process and as a tool for identifying value-adding opportunities that go beyond traditional mitigation www.ifc.org measures to promote sustainable development on a broader scale. IFC: HIV/AIDS Resource Guide for the Mining Sector, 2004 www.ifc.org/ifcext/enviro.nsf/Content/Publications More good practice publications can be found at: www.ifc.org/ifcext/enviro.nsf/Content/Publications#Social This HIV/AIDS Resource Guide for the mining sector is a resource for developing stakeholder competency in mining communities in southern Africa. The Guide contains 23 interventions that collectively comprise a comprehensive workplace response. There is an overall framework consisting of management strategies, the workplace program IFC: Operational Directives: Safeguard Policies: Involuntary Resettlement and outreach interventions, as well as a roadmap for achieving a `blue-chip' HIV/AIDS response and a template for customizing the Guide. www.ifc.org/ifcext/aids.nsf/Content/Publications Directive OD 4.30 describes IFC policy and procedures on involuntary resettlement, as well as the conditions that borrowers are expected to meet in operations involving involuntary resettlement. Planning and financing resettlement components as well as community development programs are an integral part of preparation for projects that cause involuntary displacement. At the time of publication of the Toolkit, the IFC was updating its IFC: Operational Directives: Safeguard Polices: Indigenous Peoples Safeguard Policies, including OD 4.30. Directive OD 4.20 describes IFC policy and procedures for projects that affect Indigenous Peoples. There is policy guidance to ensure that Indigenous Peoples benefit from development projects to avoid or mitigate potentially adverse effects on Indigenous Peoples and special action required when certain groups are affected. At the time of World Bank: Operational Policy (OP) 4.10 Indigenous Peoples and Bank Procedures (BP) 4.10, publication of the Toolkit, the IFC was updating its Safeguard Policies, including OD 4.20. Indigenous Peoples (July 2005) ifcln1.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/pol_IndigPeoples/$FILE/OD420_IndigenousPeoples.pdf or www.ifc.org For all projects that are proposed for World Bank financing and affect Indigenous Peoples, the World Bank requires the borrower to engage in a process of free, prior, and informed consultation. The policy and procedures regarding World Bank projects that affect Indigenous Peoples are inter alia designed to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate and gender and intergenerationally inclusive. web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTINDPEOPLE/O,,menuPK:407808~pag ePK:149018~piPK:149093~theSitePK:407802,00.html Community Development Toolkit: Background Volume World Bank: Operational Policy (OP) 4.12, Involuntary Resettlement (April 2004) and Bank Procedures (BP) 4.12, Involuntary Resettlement (December 2001) World Bank experience indicates that involuntary resettlement under development projects, if unmitigated, often gives rise to severe economic, social, and environmental risks: production systems are dismantled; people face impoverishment when their productive assets or income sources are lost; people are relocated to environments where their productive skills may be less applicable and the competition for resources greater; community institutions and social networks are weakened; kin groups are dispersed; and cultural identity, traditional authority, and the potential for mutual help are diminished or lost. The World Bank's policy includes safeguards to address and OGP and IPIECA: "Key Questions in Managing Social Issues in Oil and Gas Projects", 2002 mitigate these impoverishment risks. web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTINVRES/O,,contentMDK:20486717~m enuPK:1242266~pagePK:148956~piPK:216618~theSitePK:410235,00.html This document, prepared by the International Association of Oil and Gas Producers (OGP) and the International Petroleum Industry Environmental Conservation Association (IPIECA) is not a guidance document nor a template for Social Impact Assessment. It provides typical questions relating to the management of social issues in oil and gas projects. The 10 lists of questions provide a tool to help with social planning issues. Background for the list of questions, which cover the social planning and management issues during all stages of a project life cycle from Environment Australia and UNEP: Best Practice Environmental Management in Mining Series, country-entry through decommissioning, are provided. Also included are additional reference materials and 2002 information for the practitioner. www.ogp.org.uk/pubs/332.pdf The series of booklets providing personnel responsible for environmental issues with the information needed to achieve good environmental performance, minimize conflicts with other land users, maintain ecological values in surrounding areas, and restore or enhance the land use capability of the areas affected by their activities. They cover IIED: MMSD Workshop: Managing Mineral Wealth Workshop Report: How Can the Minerals Sector planning, monitoring, management systems, and technical issues. Members of stakeholder representative groups, regulatory authorities, and students of mining and environment subjects will also find the booklets a valuable 21YHPARGOILBIB Support the Development of Mineral Economies and Contribute to Building Sustainable Communities, Especially in the Poorest Countries?, 2001 The aim of this Mining, Minerals, and Sustainable Development (MMSD) Workshop (August 15­17, 2001) was to facilitate discussion among diverse stakeholders of the critical issues surrounding the contribution of the minerals sector to economic development. The objectives were to understand the range of perspectives and issues related to how the mining and minerals sector can support the development of mineral economies and contribute to building sustainable communities, especially in the poorest countries; to identify existing initiatives at policy level and in practice and policy options; and to identify further research, information needs, and follow-up activities. Specific topics discussed included the management and distribution of mineral revenue; contributing to building sustainable communities; community participation in decision making; roles, capacity building, and institutional strengthening; and development of community-based organizations. These topics are discussed through the use of case studies from various countries throughout the world. The roles of the various stakeholders are also explicitly discussed. Finally, a study of management and distribution of revenue in Papua New Guinea by an outside consultant is provided. www.iied.org/mmsd/mmsd_pdfs/mmw_workshop_report.pdf for Sustainable Minerals," "Community Consultation and Involvement," "Best Practice Environmental Management in Mining," "Environmental Impact Assessment," and "Overview of Best Practice Environmental Management." www.natural-resources.org/minerals/CD/ea_overv.htm booklets include illustrated case studies that demonstrate the application of a wide range of best practice techniques to address different environmental issues across many different mine type, commodity, geographic, and environmental settings. The booklets offer references for further information, and some contain short guides on the steps to be taken to achieve best practice on the specialized topic. Some of the most relevant booklets are "Checklist resource to improve environmental awareness, understanding of various principles and technologies, and the capacities of leading practitioners to significantly reduce the level of environmental impact from mining. All the Community Development Toolkit: Background Volume 22 BPD: Seven Training Modules for Managing Social Issues in the Extractive Industries Through the Tri-Sectoral Partnership Approach The Natural Resources Cluster of Business Partners for Development (BPD) developed a comprehensive set of practical training modules to create awareness for a tri-sectoral partnership approach to the management of social BPD: Putting Partnerships to Work: Strategic Alliances for Development Between Government, issues in the extractive industries. The modules build capacity and skills to navigate the complex task of exploring, the Private Sector, and Civil Society (Edited by Michael Warner and Rory Sullivan), 2004 building and maintaining this new type of partnership. www.bpd-naturalresources.org/html/tools_train.html The purpose of this book is to contribute to the understanding of partnerships-- specifically, of three-way (tri-sector) partnerships combining partners drawn from government, civil society, and the business sector--and of the way in which partnerships can contribute to poverty alleviation and development. The focus is on the oil, gas, and mining industries because these sectors have tended to be the primary drivers of foreign direct investment in developing countries. The material presented is based on the BPD program that ran from 1998 to 2002 and studied the experience of specific natural resource operations around the world. Its purpose was to assess how partnerships Rietbergen-McCracken, J. and Deepa Narayan: Participation and Social Assessment: Tools and involving companies, government authorities, and civil-society organizations could be an effective means of reducing Techniques. Washington, DC: IBRD/World Bank, 1998 social risks and of promoting community and regional development. www.greenleaf-publishing.com/catalogue/partners.htm This report comprises a resource kit that presents information and experiences on participatory methods in order to support the adoption of participatory approaches in World Bank-supported projects and studies. These materials Social Impact: Impact Notes Social Impact is a values-based management consulting and training firm dedicated to increasing development effectiveness. Their work involves improving the capacities of organizations to become more effective agents of social and economic change through implementing best practices in participatory program management and organizational SustainAbility and IFC: Developing Value ­ The business case for sustainability in emerging change. They have produced a set of impact notes to describe and explain their work and provide practical tips for markets, 2002 practitioners in the fields of socioeconomic development and project management. www.socialimpact.com/resource-center/impact-notes.html The first large-scale study analyzing the business case for sustainability in emerging markets. Developing Value: The provide core information about the different methods and applications, with the primary focus on providing practical guidance and case examples. The modules presented are on the following topics: social assessment, stakeholder analysis, participatory methodologies, and participatory monitoring and evaluation. The modules include four sections: an overview; a sample of trademark techniques and tools with brief guidelines for their use and short examples of their applications in the field; case studies of four or five countries to show the process and techniques involved, the difficulties and limitations encountered, and the outputs and impacts where the methodology has been applied; and suggestions for seminars. www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000009265_3980624143608 Community Development Toolkit: Background Volume risks and bottom line implications of sustainability strategies. It includes analysis of over 240 company examples from Africa, Asia, Latin America and Central and Eastern Europe, examples of higher sales, reduced costs and lower risks from better corporate governance, improved environmental practices, and investments in social and economic development. www.ifc.org/ifcext/sustainability.nsf/Content/DevelopingValue Business Case for Sustainability in Emerging Markets aims to help business managers understand the opportunities, makes specific recommendations on their integration. The publication is aimedfreedoms.manage decisionpositivethey USAID: Intersectoral Partnerships (Partnering for Results) This strategy generates sustainable solutions to development challenges by combining the distinctcontexts.sectors. resources of different actors in business, government, and civil society. This U.S. Agency for Internationalform Development (USAID) users guide to intersectoral partnerships (ISPs) introduces ISPs, highlightinginterests Voluntary Principles on Security and Human Rights action, showing the benefits and challenges for users of employing ISPs in different development orwhathumanin www.usaid.gov/pubs/isp/ The participants of this principles initiative recognize the importance of the promotion and protectionthreeISPsandrights Intersectoral partnering is the process of creating joint inter-organizational initiatives acrossoperations take, what function they fulfill, and their value as a development strategy. It gives illustrated examplesofofdeveloped and local communities--can play in advancing these goals. Through this dialogue, the participantsofhave within set of voluntary principles to guide companies in maintaining the safety and security of theirlabor throughout the world and the constructive role business and civil society--including NGOs,these andthese unions,a participants agree to the importance of continuing this dialogue and keeping under reviewMindfulprinciples to ensure their continuing relevance and efficacy. 23YHPARGOILBIB implementation of privately financed projects in the mining, oil, and gas sectors.atThe primaryroleandiswhereaspects corporations, and a series of recommendations are presented to assist corporations tostudies their activities. The second reviews corporate practices with respect to social and environmentaltheglossarythoseatof (within corporations, governments, and NGOs) and at those with direct responsibility forofmanagingaofsocial issuestools the project level. www.worldbank.org/ operating framework that ensures respect for human rights and fundamentalprinciples communitiestradegoals, the World Bank: Community-Driven Development: Key Design Principles for DesignAandsocialeachan Implementation of Community-Driven Development Programs www.voluntaryprinciples.org Can Community-Driven Development (CDD) be supported on a large scale so that manystrategicreceivedformulation simultaneously drive investment decisions? The World Bank has identified 10 overview to guide policycan and program design and to enhance the effectiveness and sustainability of support to CDD. These principles are World Bank: "Integrating Social Concerns Into Private Sector DecisionAidan Corporate Practices in the Mining, Oil, and Gas Sectors" (Prepared byboth McPhail. 1998. Discussion Paper. Washington, DC.), 1998 This paper contains two separate but intimately linked reports that deal with corporate socialandassessmentThe first explores the critical success factors supporting the integration of social concerns into theofplanning and World Bank: Participation Sourcebook, 1996 A key resource for community development practitioners, giving both a broadexplanations thehowToolkit:participatory techniques and approaches throughout the project cycle as well as detailedCommunity techniques have been successfully applied in practice, illustrated with extensive caseDevelopment and methods. www.worldbank.org/wbi/sourcebook/sbpdf.htm listed and discussed in detail and emerged from an analysis of large-scale CDD programs thatfocus evaluations and from a series of consultations between the World Bank and leading practitioners. lnweb18.worldbank.org/ESSD/sdvext.nsf/09ByDocName/ProjectPreparationImplementation Making:two Reviewmakers Davy andonKathryn responsibility. Background Volume ofofand 24 World Bank: Social Analysis Sourcebook: Incorporating Social Dimensions Into World Bank Operations, 2003 This sourcebook presents a conceptual framework for social analysis and describes how task teams can incorporate its principles into project design, implementation, and monitoring and evaluation. The sourcebook is not a policy statement and does not prescribe any mandatory requirements. Instead, it provides guidance on good practice to improve the quality and impact of social analysis by harnessing it to examine the social opportunities, constraints, and likely impacts of Bank-supported operations, based on the lessons learned during 1997­2002. The sourcebook describes a systematic approach that places social analysis in the service of poverty reduction by focusing directly on equity and social sustainability to improve social development outcomes. It describes an approach that is open ended in terms of social development outcomes and yet practical. It describes good practice in the application of social analysis to Bank-supported operations. It addresses social dimensions through the use of social assessments by World Bank: Workshops and Conferences on Mining and Community Development, Sustainable clients to inform project design and by social development specialists in project preparation and appraisal. It does not Mining Development, and Women in Mining represent operational policy and does not describe minimum requirements for Bank-supported projects. www.worldbank.org/socialanalysissourcebook/ Proceedings of the 1997 Quito Conference on Mining and Community are available from the World Bank Oil, Gas, and Mining Division. Also available are proceedings of the World Bank-supported Madang, Papua New Guinea, Conference on Mining and Community (1998), Mining and Sustainable Development (2002), and Women in Mining (2003 and 2005). These are available from the Papua New Guinea Department of Mining or from the World Bank Oil, RESOURCES ASSOCIATED WITH SPECIFIC TOOLS Gas, and Mining Division. www.worldbank.org/mining STAKEHOLDER IDENTIFICATION AND ANALYSIS IIED and WBCSD: "Breaking New Ground ­ Mining, Minerals and Sustainable Development", 2002 MMSD was an independent two-year project of research and consultation seeking to understand how the mining and minerals sector can contribute to the global transition to sustainable development. MMSD was a project of the International Institute for Environment and Development (IIED) commissioned by the World Business Council for Sustainable Development. The Web site contains a wealth of information gathered in the course of the project. www.iied.org/mmsd/ For resources on stakeholder engagement, see the Working Paper prepared for the Australian section of the project, DFID: Tools for Development: A Handbook for Those Engaged in Development Activity, 2002 "Developing New Approaches for Stakeholder Engagement in the Minerals Sector" (prepared by Lynda Harding and Catherine Macdonald). www.icmm.com/library_pub_detail.php?rcd=90 The DFID handbook provides useful material regarding stakeholder analysis (in section 2), problem and situational analysis (in section 3), influencing and negotiating (in section 9), and building partnerships (in section 10). www.dfid.gov.uk/pubs/files/toolsfordevelopment.pdf Community Development Toolkit: Background Volume Sartorious, R. Social Impact: Training Manuals ­ Managing the Project Cycle This set of workshop participants' notes is based on Social Impact's high impact training course on Project Cycle www.ifc.org/ifcext/enviro.nsf/Content/Publications looks at information sources and techniques, identifying stakeholders, undertaking social impactforming Management conducted for thousands of development managers around the globe. The notes synthesize worldwide balancing local, regional, national, and international interests, and the need for awareness and inclusion of best practices in program management offering practical guidance on how to improve performance at each stage of identification and the key process of building a social map of the area through baseline surveys,otheron the vulnerable groups in community development programs. It defines stakeholders and gives guidanceThestakeholder the project cycle. The initial sections provide an overview of the project cycle, practical tips on stakeholder analysis, and an overview of several approaches for problem and needs assessment. The section on project design presents foundation of the social and environmental impact assessment. operational plans, including how to avoid common problems in estimating project schedules and budgets. Additional World Bank: Participation Sourcebook, 1996 sections provide practical tips on monitoring and evaluation, differences in planning projects versus programs, managing for sustainability, and team building. The guide includes a bibliography of practical resources. www.socialimpact.com/resource-center/training-manuals.html Chapter 3 gives detailed guidance and practice pointers on participatory planning and decision making, including different approaches to identifying and involving stakeholders (such as government and directly affected and IFC Environment Division: Investing in People: Sustaining Communities Through Improved indirectly affected groups) and using participatory methods in stakeholder consultation and engagement. Chapter 4 Business Practice. A Community Development Resource Guide for Companies, 2000 provides practice pointers in enabling the poor to participate. www.worldbank.org/wbi/sourcebook/sbpdf.htm Section 2, Defining Community, discusses the need for a company to define and understand the community at all levels in which it plans to operate in order to assess the impacts its operation will have and who they will affect. It basic concepts for developing project objectives, practical indicators of project performance, including indicators of participation, and analysis of risk. The section on project implementation includes steps for developing realistic IFC: Good Practice Notes: Doing Better Business Through Effective Publicvariations. Disclosure, 1998 Contains guidance on how to identify stakeholders and guidance on the 11 actions required for effective consultation, INSTITUTIONAL ANALYSIS including identification and working with government and NGOs. International Institutional Rural Reconstruction (IIRR): Participatoryvarious www.ifc.org/ifcext/enviro.nsf/Content/Publications Community-Based Coastal Resource Management, 1998 The sourcebook is a documentation of various tools and methods developedfor the courseparticipatoryincludeas effectively and efficiently employed by field practitioners in the Philippines, Indonesia,ofIndiaoftheirToolkit: methods countries. The main section of the sourcebook is the step-by-step descriptioninofstrengthentopicscapability tested by the authors and their organizations. A simple outline was devisedhelpmostDevelopment definition, purpose, materials, suggested approach, outputs, strengths, weaknesses andthe is designed for use by people working directly with coastal communities toCommunity manage, protect and develop their local resources. www.iirr.org/publicationbdate.htm Methodsand Consultationsourcebook doingassessment, in toCBCRMtothefield Asian and 25YHPARGOILBIB Background Volume 26 SOCIAL IMPACT AND OPPORTUNITIES ASSESSMENT IFC Environment and Social Development Department: Good Practice Note: Addressing the Social Dimensions of Private Sector Projects, 2003 This is a key guidance note for practitioners, which addresses the IFC's best practice standards and approach to social assessment. Sections 1­4 help the user to understand what value can be added to their project by undertaking an assessment of the socioeconomic issues and impacts. Sections 1 and 2 define social assessment and discuss the IFC's standards and approach to it. Sections 3 and 4 explain the value of socioeconomic assessment and identify the types of projects for which it is seen to be a necessary component. Sections 5­7 discuss the key components of Social Impact Assessment and the processes of scoping and establishing the social baseline. Section 8 discusses the analysis of the social impacts and the mitigation of adverse impacts. Sections 9­11 discuss the identification of IAIA: Database sustainable development opportunities, preparing the social component of the Environmental and Social Action Plan, and monitoring. www.ifc.org/ifcext/enviro.nsf/Content/Publications IPIECA: Guide to Social Impact Assessment in the Oil and Gas Industry, 2004 A social impact assessment Web-based database by the International Association of Impact Assessment (IAIA) for impact assessment practitioners, with bibliographical data. www.iaia.org/Non_Members/SIA%20Database/SIA_interface.asp CARE International: Community Resources Management Guidelines, 2002 A useful industry-based guide, although not metals and mining-focused. www.ipieca.org/downloads/social/SIA_Document_Final.pdf DFID: Sustainable Livelihoods Guidance Sheets, 1999 Chapter 3 gives guidance on conducting preliminary assessments, preparing for feasibility studies, conducting technical and economic feasibility studies, conducting social feasibility studies, and selecting final sites. www.careinternational.org.uk/resource_centre/livelihoods/comm_resources_management_guidelines_zimbabwe.pdf Section 2 provides a schematic framework to aid users in understanding and analyzing the livelihoods of the poor. It is also useful in assessing the effectiveness of existing efforts to reduce poverty. The guidance notes stress that like IFC: Good Practice Notes: Doing Better Business Through Effective Public Consultation and all frameworks this is a simplification and that the full diversity and richness of livelihoods can be understood only by Disclosure, 1998 qualitative and participatory analysis at a local level. www.livelihoods.org/info/guidance_sheets_pdfs/section1.pdf Contains guidance on how to identify stakeholders in and guidance on the 11 actions required for effective consultation, including identification and working with government and NGOs. www.ifc.org/ifcext/enviro.nsf/Content/Publications Community Development Toolkit: Background Volume UNEP Division of Technology Industry and Economics: EIA Training Resource Manual (2nd Edition): This manual is a tool for trainers, designed to assist them in preparing and delivering training courses that provide an understanding of, and basic capability in, the application of Environmental Impact Assessment (EIA). The manual is designed to assist trainers to identify local EIA needs and priorities and to custom design training courses to meet these needs. The objective of section 13 of the resource manual is to help the reader develop an understanding of the role and scope of Social Impact Assessment (SIA) in relation to the EIA process; the types of social impacts that can result from development proposals; and the principles, procedure, and methods that are used to assess and mitigate World Bank: Social Analysis Sourcebook: Incorporating Social Dimensions Into World Bank social impacts. Also provided are discussion themes, group activities, SIA tools and methods that are useful in Operations, 2003 evaluating local project needs. www.iaia.org/Non_Members/EIA/contents.asp A conceptual framework for social analysis and describes how task teams can incorporate its principles into project design, implementation, and monitoring and evaluation. It is not a policy statement and does not prescribe any mandatory requirements. Instead, it provides guidance on good practice to improve the quality and impact of social analysis by harnessing it to examine the social opportunities, constraints, and likely impacts of Bank-supported operations, based on the lessons learned during 1997­2002. It describes a systematic approach that places social analysis in the service of poverty reduction by focusing directly on equity and social sustainability to improve social development outcomes. It describes an approach that is open ended in terms of social development outcomes and yet practical. COMPETENCIES ASSESSMENT www.worldbank.org/socialanalysissourcebook/ DFID: Tools for Development: A Handbook for Those Engaged in Development Activity, 2002 Topic 13: Social Impact Assessment, 2002 The DFID handbook provides useful material regarding teamworking (in section 8), building partnerships (in section 10), facilitation skills (in annex1), and training and management resources (in annex 2). www.dfid.gov.uk/pubs/files/toolsfordevelopment.pdf 27YHPARGOILBIB Community Development Toolkit: Background Volume 28 CONSULTATION MATRIX CARE International: Community Resources Management Guidelines, 2002 Section 4 includes guidance on introducing the community to the program, identifying community priorities and Kenya; and the Center for International Development and Environment of the World Resources plans, establishing a local Technical Advisory Committee, developing management structures, and selecting Institute: Participatory Rural Appraisal Handbook, 1994 Consultative Forum on Mining and Environment: Public Participation Guidelines for Stakeholders in the Mining Industry, 2002 committees and community mobilizers. www.careinternational.org.uk/resource_centre/livelihoods/comm_resources_management_guidelines_zimbabwe.pdf This aims to provide guidance to stakeholders in the mining industry on how to extract the greatest benefit from public participation. In particular, it provides guidance on the scale and extent of public participation for different types of projects, from short-duration, inexpensive processes through to long, complex, and costly processes. The guidelines are fully intended for stakeholders to use and implement actively and to distribute widely, including to the neighbors of mining companies and other stakeholders. The guidelines define stakeholders, the environment, and the impact assessment process; discuss the benefits of public participation to mining companies, to stakeholders, and to sustainable development; and looks at public participation levels, definition, and objectives. PARTNERSHIP ASSESSMENT/PARTICIPATORY PLANNING www.goodpracticemining.org/documents/jon/CMSA-PPGuide.pdf Methods for Community Participation: A Complete Guide for Practitioners (Prepared by Kumar, Somesh), 2002 Kumar provides extensive discussion and India-based examples of a wide range of participatory tools and methods. The National Environment Secretariat, Kenya; Clark University, United States; Egerton University, A very useful handbook for anyone wanting to learn more about participatory methods. (Available from Intermediate Technology Development Group Publishing, UK) www.itdgpublishing.org.uk Participatory Rural Appraisal (PRA) is a way to systematize a very old approach to rural development: community Implementing PRA: A Handbook for Facilitating Participatory Rural Appraisal. (Prepared by participation. This guide presents field-based steps of the PRA methodology including data gathering, organizing and Elizabeth Oduor-Naoh and Isabella Asamba, National Environment Secretariat, Ministry of ranking problems and opportunities, creating community action plans for resource management, and evaluation and Environment and Natural Resources, Kenya; Richard Ford and Lori Wichhart, Program monitoring. PRA is an excellent tool for identifying community needs and addressing the needs through an for International Development, Clark University; and Francis Lelo, Egerton University, Njoro, integration of traditional skills and external technical knowledge. Kenya), 1992 This handbook is a sequel to the basic PRA handbook. Drawing on several PRA experiences, it focuses on how to develop a Community Action Plan (CAP). It helps to focus community discussion, mobilize community groups during the CAP implementation, and helps communities measure their progress toward achieving CAP objectives. Community Development Toolkit: Background Volume program or activity. www.ausaid.gov.au/ausguide/ausguidelines/ausguidelines-1.pdf CONFLICT MANAGEMENT www.socialimpact.com/resource-center/impact-notes.html Conflict Research Consortium, University of Colorado: Conflict Mapping, 1998 www.colorado.edu/conflict/peace/treatment/cmap.htm LOGICAL FRAMEWORKS AusAID: Logical Framework Approach, 2003 The Logical Framework approach can be used by project managers and community developmentadditional Social Impact: Impact Notes adaptable and highly functional strategic planning/management framework for any complex field-based development Mediate.com: Mediation Association for Conflict Resolution Web site that contains a wealth of informationin concerning conflict resolution. www.acrnet.org/about/CR-FAQ.htm negotiation,as an 29YHPARGOILBIB departments. It provides information on understanding conflict risk throughCommunityand practicalToolkit: Association for Conflict Resolution: Conflict Resolution University of Colorado web site that contains information on conflict mapping, including alinks torange www.international-alert.org/publications/28.php BPD: Briefing Notes: Preventing and Resolving Disputes With Communitieswide NGOs Mediate.com provides a variety of resources on conflict resolution, including articles on mediation,practitioners The Natural Resources Cluster (oil, gas and mining sector) of the World Bank'sseriesworld,Partners forofDevelopment research program produced practical examples, based on focus projects aroundBusiness of how three-way partnerships involving companies, government authorities and civil society organizations can be a moretopics means of reducing social risks and promoting community development. Workingthedifferent countries andresources. different stages of project development the performance of these 'tri-sector partnerships' was systematically tested International Alert: Conflict-Sensitive Business Practice: Guidance for Extractivedocuments. 2005 Guidance on doing business in societies at risk of conflict for field managersaworkingDevelopmentrange of business activities, as well as headquarters staff in political risk, security, external relationsaboutsocial performanceat dispute settlement, and other relevant topics. www.mediate.com/articles/Mediationfaq.cfm in terms of both business benefit and development impact. www.bpd-naturalresources.org/media/pdf/bn/Bnote6final.pdf of across a and Industries, effective Background Volume 30 ANNEX 1 KEY COMPONENTS OF A instruments that specifically provide guidance on sustainability. MINERAL POLICY AND REGULATORY FRAMEWORK the need to discern major trends within overarching This outlines the key components of overarching policies and laws required to administer and regulate the minerals sector. More than 30 key components for mineral policy and 40 key components for mining law are presented. Added to that are more than 15 key components for general administration of the law, including references to other pieces of essential legislation and regulations. Recognizing that each component is itself a compound measure, more than 100 elements in total were used to evaluate the overarching instruments of the five countries within the study (Botswana, Namibia, South Africa, Tanzania, and Zimbabwe). Some components carry the descriptor "very important," as indicated by bold (P1b). This addresses Community Development Toolkit: Background Volume COMPONENT DESCRIPTIONS: MINERAL POLICY P1Code P1a P1b P1c P1d P1e GOVERNANCE Defining economic, environmental, and social the sector, including waysmineral · Consideration givenmanagement, theareindustries to participate in theholisticis, andmineralwith ofworks Description objectives at the regional and local scale, including Guiding principles using economic, environmental,mid-,enterprisesimpact through which impactedtocommunitiessocialempowered · The mineral policy honors the constitution, in that community mining agreements and national scale; andtoconsultativemechanismregional, management andabenefit programsresourcesto mining and laws and regulations areintentandas instruments for guidance · Policy principles may include sustainable Objectives of the policy metric should be provided wherebyof toward broad objectives principle, some 311XENNA Artisanal and small-scale Ownership of mineral resources Overview of economic contribution of the industry Role of the state as regulator Component P1f P1g Role of the state as owner of mineral resources, the mining graduate to entrepreneurialforminingToolkit:minersand What the policyrights(thatthose reference to developing short-,andexecutionchild-labor, strategies withinintends role of minerals in the national interest,policy provisions for assigning temporary mineral rights to · Policies andCommunitytoDevelopment the policy itself provides thesustainabletheand development, poverty abatement,andtheselfgovernment, determination. For each guidingoverallestablished individuals and corporations inviewed toeconomy, investment and developmenttheorderframeworks Role of the mining sector inframeworkminersspecific current and expected economicorganizedevelopment Role of the state as regulator ofhavingrelatedobjectives · Society expectations forimpactscontributionsto guided by the principles ofmineralatdevelopmentprotect · Safeguard policiesplanningtoenvironment,long-term customary usemechanismsaccomplish,andhealth hazardous materialsand and safety) for artisanalwell-being,artisanal and enhance theirspecificsmall-scaleand local,formalize assign mineral of stimulateits Background Volume to to 32 COMPONENT DESCRIPTIONS: MINERAL POLICY P1Code P1h P1i GOVERNANCE continued Mineral access · Inspection and control · Capacity building · Mining cadastre · Geological survey (promotion of resource potential) Right of recourse, administrative appeals, judicial appeals, dispute resolution, arbitration Component Description Transparent, nondiscriminatory public access to mineral resources through the provision of mineral rights, subject to compliance with the Mining Law and Mining Regulations with the state: through discussion, and courts of arbitration and · Authorized to regulate mineral industries through a binding agreement transparent and nondiscriminatory mines inspectorate · Arbitration clauses that define domestic and international courts available and rules for arbitration · Providing and implementing programs to improve sector governance through capacity building · Authorized to administer mineral rights through a transparent and nondiscriminatory mining cadastre · Providing public access to geologic data in order to stimulate investment in the sector through promotion of mineral resource potential · Rights recourse to resolve disputes through administrative, judicial, or arbitration processes · Procedures for administrative appeals and the remedies available and defined within the mining regulations · Procedures for judicial appeals and the general principles of law that apply are clearly defined · Dispute resolution includes definition of provisions in contracts and agreements, amicable settlement Community Development Toolkit: Background Volume P2Code P2a P2b P2c P2d P2e ECONOMIC: BUSINESS CLIMATE Equal treatment of domestic and foreign investors Encouraging development and exploration Promotion of the private sector, economic growth, and job creation Transparency of the licensing process Fiscal and regulatory regime · Stability · Competitiveness · Efficiency Component Description Equal access to mineral resources for both domestic and foreign investors through transparent, nondiscriminatory sector regulation The state encourages exploration and development by creating a competitive business climate through the application of international best practices in regulatory and fiscal policies 331XENNA P2f Revenues management and Extractive Industries Role of the private sector in providing investment Transparancy Initiative (EITI) companies to governments and government-linked capital entities, as well as transparency over revenues by those host country governments Mining regulations clearly define the procedure for acquiring mineral rights, and the concept of preference given to applications according to the order they are filed · Whether the government supports the concept of stability of fiscal and regulatory terms and conditions, as defined in the mining agreement, for a defined period of time · Fiscal and regulatory reforms that reflect international standards and make the state competitive in attracting private sector investment · Programs and efforts toward administrative reforms and institutional strengthening to improve governance in the sector. This may also include setting time limits within regulatory processes to ensure that unnecessary delays in administrative functions are removed The state endorses EITI, a program sponsored by the DFID to increase transparency over payments by Community Development Toolkit: Background Volume 34 P3Code P3a P3b P3c ENVIRONMENTAL: STEWARDSHIP Risk assessment and management Health and safety Mine reclamation Component Description Policies that seek to safeguard the environment from harm by requiring Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) for mining activities: · EIA is an instrument to identify and assess the potential environmental impacts of a proposed project, evaluate alternatives, and design appropriate mitigation, management, and monitoring measures · EMP is an instrument that details the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or to reduce them to acceptable levels, and the actions needed to implement those measures Policies that seek to ensure health and safety standards for workers and mine-impacted communities. This policy generally refers to another policy specifically detailing objectives for the industry A clear policy on reclamation of mining lands, including responsibilities and obligations for: · Planned closures · Abrupt closures Community Development Toolkit: Background Volume P4Code P4a P4b SOCIAL: MINING AND COMMUNITIES Consultation processes Resettlement and compensation Component · Budgeting and financing · Implementation (action steps) · Monitoring and evaluation Description P4c Community well-being Affirmative action policies related to empowerment of A demonstration of a framework for community disadvantaged ethnic groups and/or Indigenous consultation in mine planning, development, ongoing People. Policies to address mining-impacted operations, and closure. This includes: communities, including specific consideration of: · Consultative processes for assessing the · Gender (discrimination and equality) socioeconomic impact of mining · Family issues (family welfare, substance abuse · Consultative processes for developing voluntary 351XENNA prevention and control, access to education) community mining agreements · Empowerment of NGO's and other partners · Frameworks that integrate communities into closure and post-closure planning A resettlement policy framework and action plan for resettlement that includes: · Identification of affected populations · Legal frameworks · Compensation frameworks · Resettlement assistance · Organizational responsibilities · Dispute resolution Community Development Toolkit: Background Volume 36 P5Code P5a P5b P5c P5d SUSTAINABLE DEVELOPMENT: IMPLEMENTATION Component Land-use planning Mine closure planning Description community level A policy for holistic integrated land-use plans that · Effective dispute resolution processes for consider both mining activities and complementary communities and competing land uses. Some statement as to how to support long-range planning at the community and · Social safeguard policies for vulnerable groups regional level where capacity might be deficient · Frameworks for local economic development A clear policy on the need for mine closure plans prior to development that include: P5e Roles of the state, regional governments, community, NGOs, and company in defining, implementing, and · Considerations for retraining and redeployment of workers after closure · Reconversion of plant site Community Development Toolkit: Background Volume P5f Capacity-building education · Community sustainability The state's commitment to building capacity within its institutions, in regional government, and at the local level P5g Local and regional economic and business development Roles of civil society, community, governments, and companies Partnerships in social development: · Social · Economic · Environmental Inter-regional cooperation Programs or policies to foster small-to-medium · Social enterprises at the local level using mining as an · Economic engine of growth. The policy should define: · Environmental main objectives How the state can facilitate and support inter-regional cooperation on mining-related issues. Includes a consideration of trans-boundary issues and regional cooperation agreements consideration potential partners for each of the three obligations should be included The state's expectations for partnerships to achieve sustainable development goals. Includes a monitoring sustainable development programs. A clear statement as to funding sources for major · Capacity for ensuring sustainability at the COMPONENTS DESCRIPTION: MINING LAW and RELATED REGULATIONS L1Code P5h P5i Code L1a Measuring outcomes (policy implementation) HIV/AIDS Purpose and scope of law Component Description The state's role in implementing its policy, including: · Key programs and associated time lines L1b · Measuring program performance · Reporting on programs, to whom, when · Mechanisms for program adjustments L1c A policy to address the problems of HIV/AIDS infected staff and communities, and specific short, medium, and long-term strategies to arrest the spread of 371XENNA L1d INTRODUCTION Objectives of the law Ownership of mineral resources Role of the state as infection regulator Component Description A provision as to:investment · Role of privatekey · Definitions forstate-owned · Scope of the law covering allinmineral activities Clear statements regarding objectives for the law in regulating the sectorterminologyprovides ifbroader Provision for state ownershipenterprises, investment by the private sectorwhich social benefit The role of the state clearly defined to:mineral · Promote efficient development by the private sector · Mandate thatlaw subject to theCommunity Development Toolkit: Background Volume any, are 38 L2Code L2a L2b L2c L2d L2e ECONOMIC Component Description L2f Security of tenure Transparent, clear, nondiscriminatory licensing framework Provision of suitable guarantees for the investor against arbitrary actions that would threaten mineral applicable rates) at any time to relinquish whole or a part of a right, rights conditions and processes for temporary withdrawal or permanent termination of a mineral right, and Statements regarding the licensing framework that process for appeals of the above actions reflect the granting of licenses in the order of application filed, what rights are provided, to whom, L2g Promotion of the private sector, economic growth, and job creation Flexibility in timing of exploration, development, exploitation, period and extensions The obligations of a mineral right holder to maintain how, and under what obligations completion of commitments, to maintain good good standing through payments of fees and/or work The reliance on the private sector to provide relations with surface owners and other rights investment capital, with expectations for economic multipliers in the economy, and job creation disputes in this regard, procedures for the provision The issuance of mineral rights that allow a holder to determine the timing of their program within the bounds of the mineral right, the right to proceed from exploration to exploitation subject to regulatory compliance, and the ability to file for extensions of Community Development Toolkit: Background Volume L2h with surface land owners Mineral rights: types of rights and eligibility cancellation Mineral rights: common provisions for period, extension, renewal, transfer, relinquishment, withdrawal, termination Mineral rights: obligations for maintenance, relations and between holders of rights, infrastructure, health and safety, protection of cultural heritage Mineral rights: obligations mineral rights for taxes, duties, royalties holders in the area, processes for resolution of and authorized person collects those obligations The types of mineral rights that can be acquired, (including procedures, schedules for payment, and eligibility requirements that are nondiscriminatory, and clearly defined regulations for cancellation of such rights The period of a mineral right, processes for extension of perimeters, processes for transfer of rights to third parties, the right and regulatory process for a holder and/or sharing of infrastructure, compliance with local health and safety regulations, and safeguards for the protection of cultural heritage, vulnerable groups, rights to pay taxes, duties, and royalties; what agency and communities in general A clear statement of obligations on holders of mineral L2Code L2i L2j L2k ECONOMIC continuedMining-related Description · A clear statement as to the authorization of the appropriate government agency to provide financial tax provisions for amortization of preproduction L2l tax stability, andtaxation, incentives expenses, (accelerated) depreciation ofthe investments, and loss carried forward 391XENNA L2m Secondary processing of including provisions for preproduction and production expenditures, materials Informal and small-scale mining Component · A clear statement as to the ability ofstabilitythe mineral right, and courses of actionsregulations stability clause be involuntarily terminated · A clear statement as to prevailingtax capitala updated periodically Other mineral activities Fiscal requirements: closure funds and environmental guaranty Closure plan: initial plan at time of license application, instruments usedincludeDevelopment government to provide for bindingfromshould for a period of time agreed upon with the holder ofpiles, sources including scrap, waste streamssecondary and recycling the case of accidents and tax treatment ofBackground regarding materials beneficiatedincludedmineral · Provisions to encourage value-addedfinancial mineral processing · Special provisions for the issuanceblackand rights, regulatory compliance, and/orof (downstream) obligations of artisanal miners · Special regulations should beusing women,that employment of pregnant or postnatalactivitiestochild in labor and forced laboranddisabled persons, processing mineral ores in surfaceofwaters,mineralchemicals hazardous to health, and controlofofgemrights Provisions relating to other mineralsinkingfortheseupVolume might include crafts, collectionmineralandmarkets and fossils · Obligations on the holderofofmine bonded closureabatement,tax treatmentspecimens, provide financial certaintyone-timeclosure through instruments thatfunds instruments · Obligations on the holdermitigation, rights to provide financial certainty ofoffundsToolkit: environmentalCommunity to covercleanor offund 40 L2Code L2n L2o L2p L2q ECONOMIC continuedClosure time of licenseinitial updatedplan: A clear statement ofplan violations,enforcement powers ofperiodically Recognizedpenalties, resolution mechanisms and appealsdispute Revenue sharing withandat Component Description communities application, and fees) with local affected communities Obligations on the holder of mineral rights to provide · A mechanism to direct mining contributions from a comprehensive mine closure plan at the time of central accounts to local accounts application for an exploitation right. This plan would include consideration of economic, environmental, and social impacts and remedies by which the company, community, and government might individually or in partnership achieve sustainability during and post closure of operations. The closure plan should define financial and social obligations on the holder of the mineral right, and procedures for regular update and consultation of the plan A clear statement of actions constitute violation of the law, a schedule of civil and criminal penalties (or reference to applicable law), the civil and criminal powers of the state over the sector, and enforcement powers A clear statement of dispute resolution procedures, including election to voluntary arbitration, rights of recourse to international courts, mechanisms and procedures for filing appeals, and time limits set on the above · A provision to share revenues from mining (royalties Community Development Toolkit: Background Volume L3Code L3a L3b ENVIRONMENTAL STEWARDSHIP L3c Risk assessment and management during exploration and exploitation Health and safety and emergency preparedness Mine reclamation Component Description of flora and fauna, performance standards, and penalties for non-compliance A clear statement of environment safeguards required by rights of mineral holders. This includes defining when EIA and EMP are to be prepared, references to frameworks for preparing these plans, and procedures for submission, public comment (if applicable), and approval: · EIA is an instrument to identify and assess the potential environmental impacts of a proposed project, evaluate alternatives, and design appropriate mitigation, management, and monitoring measures · EMP is an instrument that details the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or to reduce them to acceptable levels, and the actions needed to implement those measures Clear statements regarding the obligation of holders of mineral rights to maintain health and safety and emergency preparedness plans and action teams when and when applicable Clear statement as to expectations for mine area reclamation, including rehabilitation plans, restoration 411XENNA Community Development Toolkit: Background Volume 42 L4Code L4a L4b SOCIAL: MINING AND COMMUNITIES Consultation frameworks Predevelopment social planning Component social mitigation plan to address adverse impacts identified in the SIA and enhance opportunities for vulnerable groups and gender issues Description L4c Reference to safeguards policies for voluntary Requirements to develop frameworks for community resettlement and equitable compensation for consultation and empowerment on resource planning residents and development. This may include reference to: L4d Resettlement and compensation Community well-being · A specific reference to gender and family issues · Consultation frameworks for community impact with respect to SIA and social mitigation planning analysis · A specific reference to affirmative action for · Consultation frameworks for grievances and dispute community members and minority or disadvantaged resolution groups · Consultation and empowerment of local communities on land-use planning and post-mining activities · SIA, requirements for holders of mineral rights applying to obtain a mineral exploitation right to assess social impacts in local communities. This would include consideration of vulnerable groups and gender issues · Requirements for holders of mineral rights applying to obtain a mineral exploitation right to prepare a Community Development Toolkit: Background Volume L5Code L5a L5b SUSTAINABLE DEVELOPMENT: COMMUNITY PLAN Component Economic closure planning: · Local economic Description The obligation for holders of mineral rights, community, and government to implement the mine L5c development · Diversification Environmental closure planning: · Reclamation plan closure plan prepared as part of the application for the exploitation license. To achieve economicimpacted sustainability by: · Fostering local economic development through communities and the region · Economic development programs tomine time the dependence of local companies on the mine, as prepared for the mine closure planand from larger miningadministrative, theplacementof on · Opportunities to partner with localapplication economic development agencies to shareregional community, and government to implement the mine infrastructure and foster new alternativealanduses closure plan prepared as part of theenvironmentalareas the exploitation license. To achieveandrights, procurement of goods and services inapplicationand The obligation for holders of mineralforprotectedand · Redeployment of redundantforonpartner through retraining for other sectorsothersmall-scalecapacityin or lessen across 431XENNA L5d · Environmental and mining habitat enhancement Social closure planning: · Retraining · Reconversion Informal and small-scale unlicensed operators,environmental byinformalthey training, technical training on equipment and mechanized mining,operations access to fair and competitive marketsgovernment · Opportunities and incentivesminejob regional development agenciestoprofessional other sectors closed mining facilities forprocessesprotection, · Clear provisionandtheand · Assistance made available toandhealthwhichsafety might register period of time sustainability: · Mine closure according to the reclamation planfor issues of legalCommunity · Creation of habitat, biodiversity,purposesdefinedfor · Ongoing monitoring and reportingofrights,the The obligation for holders of minerallabor community, and government to implementwith mine closure plan prepared asTopart offortheeconomicmines the exploitation license.legal sustainability: · Reskilling of mine workerstechnologicaland advancement and increasedachieve · Opportunitiesandof incentivesstatusreconversionlocal Development Toolkit: Background Volume 44 L6Code L6a L6b L6c public inspection,controls Component LAW quality (coal), or industry-standard nomenclature such as rock type (quarry materials) Description L6d ADMINISTRATION OFCompetent responsibilities,provisions: inspections,authorities: Miscellaneousaccess data status, mining cadastre andand database, andgeological information Classification of mineral deposits Provisions including miscellaneous, · Miscellaneous includes the obligation of transparency, availability of information for public Ensuring that responsibilities of regulatory offices are transitional, transparency, inspection, confidentiality, and consistency of the clearly defined (Mines Inspectorate, Mining Cadastre, mining regulations with the mining law Geologic Survey), and that these agencies have clearly confidentiality, and repeals to defined protocols for regulatory inspection and · Transitional includes the promulgations of controls regulations, establishment of data inventories, and treatment of existing mineral rights · Data status relates to the collection and dissemination of geological and exploration data, · Transparency includes the EITI, a program including to whom does the data belong, which data are public domain versus confidential or classified · Mining Cadastre should have clearly defined functions and procedures Community Development Toolkit: Background Volume · Public inspection means that the state shall compile · Geological database is maintained, updated, and and make publicly available reports concerning administered by the geological survey, and that there mineral rights, mineral production, state revenues is open, equal access to land status, mineral rights, and other direct or indirect economic benefits and geologic information for investors received That the government uses a recognized, industry- · Confidentiality includes the confidential treatment accepted system for the classification of mineral by the state or sector ministry of technical, geological, resources using classifiers such as commodity type, or financial data as submitted by the holders of The entitlement of holders of mineral rights to build and maintain infrastructure required for the activities connected with the mineral rights over revenues by those host country governments mineral rights and as may be required by law. The period of confidentiality will be defined within the mining regulations · Repeals means those laws that have been nullified sponsored by DFID to increase transparency over payments by companies to governments and government-linked entities, as well as transparency through changes to the current set of laws L6Code COMPONENTS DESCRIPTION: GENERAL G1L6e L6f L6g ADMINISTRATION OFAuthorizations Code G1a CONSTITUTIONAL AUTHORIZATION construction offor infrastructure Processing, transportation, and sale of mineral products Clearly defined violations and penalties Component LAW continued · People have the right to own mining Description The entitlement of holders of mineral rights to build the Component Reference to the and maintain infrastructure required forand activities constitution and its guiding principles rights are protected according connected with the mineral rightsthe The entitlement of holders of mineral rightsstorethe negotiated prices · People haveCommunity to information process mineral substances, transportfreelyand mineral products, and sell products at(fines Clearly defined:correspondingto · Violations defineddefined mining law andpenalties · Offenses established by the sector ministrytoof punishable by civil (fines) or criminalstatutes imprisonment)the · Powers of enforcement and courts ofregulations jurisdiction clearlyrightDevelopment Description · Equality of people (including gender equality) · People have the right to live in clean communities property,competent 451XENNA and those Toolkit: Background Volume 46 G2Code G2a G2b G2c OTHER LEGISLATION: TAX AND FISCAL Component Description G2d Reference to direct taxes: income and sales Indirect taxes: value added tax and presumptive business Investment and banking Customs duties and tariffs Includes references to other laws containing general provisions for the assessment and payment of taxes, basis for calculation of taxes, taxpayers affected, jurisdictions, and powers of the government to levy taxes Includes references to other laws containing provisions relating to assessment and payment of taxes, basis for calculation of taxes, taxpayers affected, jurisdictions, and powers of the government to levy taxes Includes references to other laws containing provisions for: · Protection of investments, foreign exchange and state guarantees, and treatment of domestic and international bank accounts · State guarantees including the freedom for holders of mineral rights to organize and conduct business as they see fit, import and export goods and services, and the free circulation of personnel according to international conventions Includes references to other laws containing duty and tariff schedules for the temporary and permanent import and export of goods, and state guarantees for the free movement of those goods as is required for the activities connected with the mineral rights Community Development Toolkit: Background Volume G3Code G3a G3b OTHER LEGISLATION: REGULATORY AND MISCELLANEOUS G3c Component EIA, EMP, and guidelines for reporting Description A clear statement regarding regulatory authority and environment during exploration, exploitation, and the G3d post-mining activities · EIA is an instrument to identifyofdesign project, evaluate alternatives, andandproposed assess the 471XENNA G3e measuresto G3f the use of EIAs and EMPs in safeguardinglevels, be taken during the implementation andenvironmental transfer, resettlement, wages and pensions, union-related Water regulations Forest regulations potential environmental impactspollutionmeasures · Reference to an atmosphericmonitoringpreventionof training act · Resettlementimprove · Reference to a wasteimplementinthose A clear statement regarding regulatory authority for A clear statement regarding regulatory authority and G3g Planning and public works impacts, or to reducerightsandthat the actions needed to themholders,miningoperation activities of mineraluse including construction codes and standards Protected areas including cultural and natural Health and safety Labor and social welfare, including training and reskilling, and technology incomes and standardsDevelopmentapplyauthority A clear statement regardingimplementation,the their efforts toCommunity or atregulatory public works economic objectives to assistleastrights:persons in promotes participation of displacedrestore inand resettlement planning andliving redundant laborconsiderseducationredeployment · Training and reskillingofincludesafterrightsappropriate activities of the holder of mineral apply social welfare regulations asapplicable totheira A clear statementthrough mitigation, management,offsetthey · EMP is an instrument thattodetailsathemeasuresand a project to eliminate ormanagementpeoplethe the protection andregarding applicable forest regulationsregulatory tomining restricted and limited usewateracceptablevocationalfor A clear statement regardingmineralincluding restrictions to the holder ofareasadversedisplacement access and permissibleofactivities withinauthority areas A clear statement regarding regulatory authority for health and safety issues associated withlabor safeguardand displaced policies thatof actprotectedand visandvis Toolkit: Background Volume 48 G3Code G3h G3i G3j G3k G3l OTHER LEGISLATION: REGULATORY AND MISCELLANEOUS continued Component Urban and rural and land- use planning Inspection and control Workforce movement Local regulations Emergency response planning Description A clear statement regarding regulatory authority for land-use planning at the federal, regional, and local scale and any coordinating bodies that would assist in mine planning in this regard A clear statement regarding regulatory authority for agencies to inspect, monitor, and control mining activities A clear statement regarding regulatory authority for the importation of labor and control of migration associated with mining activities A clear statement regarding regulatory authority for local authorities with respect to mining activities A clear statement regarding regulatory authority for civil defense to protect and otherwise safeguard mines during emergencies Community Development Toolkit: Background Volume ENDNOTES (ICME)MayBanktoRevised Mining agreed iiiiii Seeand21, available atMetalsrightandOperational web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTINDPEOPLE/0,,menuPK :407808~pagePK:149018~piPK:149093~theSitePK:407802,00.html. iv See ICMM MiningtheMiningSouth Peoples Issues Review, available at Energy's www.icmm.com/library_pub_detail.php?rcd=175. vPlan vi Thiswww.icmm.com/sd_framework.php.of for Worldestablishes paragraphs 40­46).stakeholdersandmove vii This obliges allbroadenforand to "undertakeancreate an enabling environment for the empowerment" of historically disadvantaged South Africans. OnGuidelines2001,(ICMM),the of Directorsheadquarters Language drawntheorrequirementProduction a new miningfor fromIndigenousAfrican Department of MineralsintoCanada,Peoples the Boardgroups'Policy of the InternationalOttawa, on Metals and Environment thethetoconversionandIndustries."fromitselfIndigenous for its"social and labor plan,"(Part mandateto a Bank ProcedureCouncilII:the and transform old order rightonwhich Socialaccompany Plan, and must International Council on to London. and Labouran "Social andapplication (OP/BPLabour 4.10) 49SETONDNE Community Development Toolkit: Background Volume 50CREDITS The designation of geographical entities in this Toolkit, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of ESMAP, the World Bank or ICMM concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication do not necessarily reflect those of ESMAP, the World Bank or ICMM. Published by ESMAP and the World Bank, Washington, USA and ICMM, London, UK ESMAP, the World Bank and ICMM (2005). Community Development Toolkit ISBN: 0-9549954-3-0 Photos: Catherine Macdonald Design: Duo Print: Quadracolor Limited Available online and in hard copy from ICMM, www.icmm.com or info@icmm.com or www.esmap.org © 2005 Energy Sector Management Assistance Programme, the World Bank and the International Council on Mining and Metals Reproduction of this publication for educational or other non-commercial purposes is authorised without prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holders. This Toolkit is printed on Challenger Offset 150gsm and 300gsm. A great proportion of the raw material used is the by-product from other processes i.e. saw mill waste and waste which results from forest thinning. The mill holds not only ISO 2002 but also the ISO 14001 accreditation for their environmental management systems, which include an active policy on sustainable forestry management. Community Development Toolkit: Background Volume ESMAP The Energy Sector Management Assistance Programme (ESMAP) is a global technical assistance program which helps build consensus and provides policy advice on sustainable energy development to governments of developing countries and economies in transition. ESMAP was established in 1983 under the joint sponsorship of the World Bank and UNDP as a partnership with UNDP, in response to global energy crises. ESMAP promotes the role of energy in poverty reduction and economic growth in an environmentally responsible manner. Its work applies to low-income, emerging, and transition economies and contributes to the achievement of internationally agreed development www.esmap.org goals. The Community Development Toolkit was published The World Bank Group under the ESMAP Formal Report Series, Report No. 310/05, October 2005. ICMM The International Council on Mining and Metals (ICMM) The World Bank Group is an international organization is a CEO-led organization comprising many of the of more than 180 member countries comprised of five world's leading mining and metals companies, as well institutions: the International Bank for Reconstruction as regional, national and commodity associations, all of and Development (IBRD) and the International which are committed to improving their sustainable Development Association (IDA), together known as the development performance and to the responsible production of the mineral and metal resources society needs. www.icmm.com ICMM's vision is a viable mining, minerals and metals industry that is widely recognized as essential for modern living and a key contributor to sustainable development. www.worldbank.org World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Center for the Settlement of Investment Disputes (ICSID). The World Bank is a vital source of financial and investments can better contribute to poverty reduction and environmentally and socially sustainable development at both the community and country levels. technical assistance to developing member countries. IBRD provides low-interest loans to middle-income countries and IDA provide interest-free credits and grants to low-income countries for education, health, infrastructure, and other purposes to promote poverty reduction and sustainable development. IFC promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. A key objective of the World Bank's Oil, Gas and Mining Policy Division is to determine how extractive industry