July 2016 OPTIONS FOR DATA REPORTING – EITI STANDARD, 2016 The Good, The Better and The Best © 2016 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions express in this work do not necessarily reflect the views of the World Bank, its Board or Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colours, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. ACKNOWLEDGEMENTS AND BRIEF This report is an update of a previous scoping study (February, 2016 )1 commissioned to review and recommend formats and categories for data that are required or encouraged under the Extractive Industries Transparency Initiative (EITI) Standard. These updates correspond to the 2016 EITI Standard. The team would like to acknowledge valuable input from Martin Lokanc, Andrew Brian Schloeffel and Sridar Padmanabhan Kannan at the World Bank and Anders Tunold Kråkenes and Sam Bartlett at the EITI International Secretariat. https://openknowledge.worldbank.org/bitstream/handle/10986/23779/Options0for0Ex00better0and0the0best.pdf?sequence=1 1 Options for Data Reporting – EITI Standard, 2016 03 CONTENTS ACKNOWLEDGEMENTS AND BRIEF 03 LIST OF FIGURES 06 LIST OF TABLES 06 EXECUTIVE SUMMARY 07 SECTION 1: INTRODUCTION AND METHODOLOGY 11 TERMINOLOGY 11 CLASSIFICATION OF RECOMMENDATIONS 12 METHODOLOGY 12 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK 14 LEGAL AND FISCAL REGIME GOVERNING THE EXTRACTIVE INDUSTRIES 2.1  14 Legal codes, regulations and reform 14 Ownership over natural resources 15 Licensing regulations 15 International codes of conduct/treaties 18 Fiscal regime 18 Fiscal devolution 20 Government agencies 21 Visualization 21 2.2 LICENSE ALLOCATIONS 23 2.3 REGISTER OF LICENSES 24 2.4 CONTRACTS 26 2.5 BENEFICIAL OWNERSHIP 28 2.6 STATE PARTICIPATION 30 SECTION 3: EXPLORATION AND PRODUCTION 32 3.1 EXPLORATION 32 Identifying project stage (mining sector) 33 Identifying project stage (oil & gas sector) 33 Identifying activity status 33 Calculating reserves and their value 33 Visualization 34 3.2 PRODUCTION 35 Production volume and value of mineral production 35 Production quantity and value of oil and gas production 36 Other considerations 37 3.3 EXPORTS 37 SECTION 4: REVENUE COLLECTION 39 COMPREHENSIVE DISCLOSURE OF TAXES AND REVENUES 4.1  39 SALE OF THE STATE’S SHARES OF PRODUCTION OR OTHER REVENUES COLLECTED IN-KIND 4.2  41 INFRASTRUCTURE PROVISIONS AND BARTER AGREEMENTS 4.3  42 4.4 TRANSPORTATION REVENUES 42 Visualization 42 SECTION 5: REVENUE ALLOCATIONS 43 5.1 DISTRIBUTION OF REVENUES 43 5.2 SUBNATIONAL TRANSFERS 43 Visualization 44 Options for Data Reporting – EITI Standard, 2016 04 CONTENTS continued SECTION 6: SOCIAL AND ECONOMIC SPENDING 45 SOCIAL EXPENDITURES BY EXTRACTIVE COMPANIES 6.1  45 CONTRIBUTION OF EXTRACTIVE INDUSTRIES TO THE ECONOMY 6.3  46 Extractive industries value and percentage share of GDP 46 Extractive industries and government revenues 47 Extractive industries and exports 47 Extractive industries and employment 47 Visualization 49 SECTION 7: OUTCOMES AND IMPACT 50 7.2 DATA ACCESSIBILITY 50 Open Data Policy 51 Providing Open Data 51 Creating Open Data 52 Case Study - Revenue Development Foundation 52 SECTION 8: CONCLUSION 54 ANNEX I – COMPARATIVE INITIATIVES 55 ANNEX II – MINING CADASTRE PORTALS 59 ANNEX III – PRODUCTION DATA 60 ANNEX IV – CONVERSION FACTORS 66 ANNEX V – DATA CATEGORIES COVERED 68 Options for Data Reporting – EITI Standard, 2016 05 CONTENTS continued LIST OF FIGURES 1 Fiscal and legal regime context for Mongolia 22 2 Mining properties in Madagascar 35 3 Taxes and contributions born 42 4 Flow chart illustrating distribution of revenues ($ value or local currency) 44 5 Visualization of contribution to economy data 49 LIST OF TABLES 1 Data profile for EITI Requirements 13 2 Data output for legal codes and regulations 14 3 Qualitative information for ownership of resources 16 4 Legal profile of licenses by type 17 5 Fiscal regime country profile 18 6 Listing of government agencies 21 7 Data output under allocation of licenses 23 8 Data output for register of licenses 25 9 Contract reporting options 27 10 Data output for beneficial ownership 29 11 Data output recommendations for state participation 31 12 Establishing (LSM) profile of extractive sector 32 13 Oil and gas production volume and value format 37 14 Data output for fiscal regime by revenue category 40 15 Data output for state’s revenue 41 16 Data output for distribution of revenues 43 17 Data output for reporting on community projects 45 18 Contribution of extractive industries to the economy 48 19 Steps in developing data access 50 20 Data covered by initiatives relevant to the EITI 56 21 Country comparison of FlexiCadastre data 58 Options for Data Reporting – EITI Standard, 2016 06 EXECUTIVE SUMMARY The Extractive Industries Transparency Initiative (EITI) The member countries and extractive companies that is an international standard to ‘promote open and are signatories to and participants of the EITI, have a accountable management of natural resources’. wide range of capabilities and resources. The capacity at By encouraging governments, extractive companies, the government and extractive company level to provide civil society and the public to engage in discourse around information differs, as well as for civil society and transparency of the extractive sector, it aims to facilitate community partner. To facilitate data reporting from the management of a country’s natural resource wealth to each group, this report takes a good, better and best benefit all its citizens. The EITI is implemented at the approach to standards for data formats. These are national level. As of June 2016, 51 countries are classifications developed by the research team and do implementing the EITI in accordance with the 2016 EITI not pertain to EITI compliance. Standard. Since its inception, EITI implementing countries A good level of reporting focuses on meeting the have published EITI Reports covering more than 300 fiscal minimum level of disclosures set by each EITI years. Requirement; better and best approaches build further on these basic standards. As the EITI is an evolving In December 2015, the EITI adopted an Open Data process, the better and best approaches are meant to Policy2. To facilitate the utilization of the rich data encourage participants interested in further generated by a country’s EITI process, this report standardization of disclosures, where increased provides recommendations in a standardized format to information and data commitments are being made by allow for improved understanding, analysis and the MSG. The three levels of recommendations should accountability of the extractive sector. not be seen as a three tier reporting system. The options for data categories presented here are ‘Good’ refers to reporting standards that meet the recommendations only and are not meant to be minimum data to be provided under each EITI prescriptive. Nor should they be considered as a ‘reporting Requirement. The recommendations take into template’. The decision on which data categories are to consideration the differing capacity of stakeholders and be included for reporting, remains the domain of the include data formats that are already in common usage individual country’s Multi Stakeholder Group (MSG). in different EITI Country Reports. This report provides format options and ‘Better’ typically refers to reporting standards that are recommendations for data output for EITI Requirements enhancements of data covered under the good category. listed under the 2016 EITI Standard. These These recommendations differ by EITI Requirement; in some cases they provide more disaggregated reporting recommendations are based on identifying commonly within a data category and in others they refer to used and evolving data categories under each additional data categories that can be included, where Requirement and spell out qualitative and quantitative deemed appropriate by the MSG. data formats. Where international standards are available and where these are emerging, the report uses ‘Best’ refers to standard formats for reporting data that represent the highest international benchmarks and are these as its basis of recommendations. The considered to provide comprehensive information, beyond recommendations for data outputs are meant to the minimum data requirements. These also include compliment the narrative provided within the ‘Country suggestions for data categories increasingly emerging in Report’, and is not to be considered a replacement for more common usage within transparency reporting. other reporting requirements under the EITI. Recommendations under better/best include, in some These format options and recommendations are cases, suggestions for reporting on data categories that proposed by the research team. They are not sanctioned encapsulate emerging trends in transparency and by the EITI Board nor the World Bank, and following governance. In other cases, there may be just one them will not necessarily lead to EITI compliance. standard that is considered suitable and therefore no Administrators of the EITI are advised to review the differentiation will be made between the different levels ‘2016 EITI Standard’ and guidance notes for assistance of recommendations. International standards are still on following the ‘EITI Requirements’. developing for some data categories, and the recommendations reflect evolving trends rather than https://beta.eiti.org/standard/open-data-policy 2 set benchmarks. Options for Data Reporting – EITI Standard, 2016 07 EXECUTIVE SUMMARY continued The objective of this report is to present, in a structured The research team recommends a step by step form, data categories and their reporting formats, that can approach to this, starting with a specific set of be used to standardize information generated under each Requirements, across a number of countries. This would EITI Requirement. The review conducted for this study allow the EITI to develop a set of comparable statistics included a sample of recent EITI Country Reports, as for various reporting entities, as well as start well as other initiatives and industry standards. constructing guidelines for EITI implementers. These recommendations should be considered as a The table below summarizes the type of data output contribution in the efforts towards standardizing data for each EITI Requirement, which are then presented reporting under EITI Requirements, and need to be in more detail in the main text. tested to identify issues with data collection under the headings as categorized in this report. TABLE: SUMMARY OF DATA OUTPUT UNDER EITI REQUIREMENTS EITI Requirement Qualitative data Quantitative data International standard available Page number 2.1a+b Legal framework 14 Legal codes, regulations and reforms ✓ ✓ Government agencies ✓ Ownership over natural resources ✓ ✓ Licensing regulations ✓ International codes of conduct/signatory to treaties ✓ Emerging 2.1a Fiscal regime 18 Fiscal regime ✓ ✓ Fiscal devolution ✓ ✓ Investment ✓ Customs/trade ✓ ✓ 2.2 Licence allocations 23 Allocation process ✓ ✓ Bidding process ✓ ✓ 2.3 Register of licenses 24 Property details ✓ Geospatial data ✓ Emerging Ownership details ✓ License details ✓ 2.4 Contracts 26 Title/ description/ status ✓ Items ✓ Emerging Signatory details ✓ Documentation ✓ 2.5 Beneficial ownership 28 Details on board members ✓ Politically exposed persons ✓ 2.6 State participation 30 Rules governing state participation ✓ Tool for state participation ✓ ✓ Equity ownership ✓ How is state controlled exercised ✓ ✓ Payments to the state ✓ SOE finances ✓ SOE beneficiaries ✓ Options for Data Reporting – EITI Standard, 2016 08 EXECUTIVE SUMMARY continued TABLE: SUMMARY OF DATA OUTPUT UNDER EITI REQUIREMENTS EITI Requirement Qualitative data Quantitative data International standard available Page number 3.1 Exploration 32 Project stages ✓ Emerging Activity status ✓ Reserves and Resources ✓ 3.2 Production 35 Production volume ✓ ✓ Production value ✓ ✓ 3.3 Exports ✓ ✓ 37 Export volume ✓ ✓ Export value ✓ ✓ 4.1 Comprehensive disclosure of taxes and revenues 39 License and concession fees ✓ ✓ Profits taxes ✓ ✓ Royalties & bonuses ✓ ✓ Trade related revenue flows ✓ ✓ Grants and donations ✓ ✓ 4.2 Sale of the state’s share of production and other revenues collected in-kind 41 Dividends & state entitlements ✓ ✓ 4.3 Infrastructure provisions and barter arrangements 42 Relevant infrastructure agreements and contracts ✓ ✓ 4.4 Transportation revenues 42 Relevant transport taxes ✓ ✓ 5.1 Distribution of extractive industry revenues 43 Receipt and allocation process ✓ Allocation and distribution of revenues ✓ Accounting for allocation ✓ 5.2 Sub-national transfers 43 Share of total revenues going directly to local ✓ ✓ communities/governments Governance of local community payments ✓ ✓ 6.1 Social expenditures by extractive companies 45 Allocation of funds/ in kind projects ✓ ✓ Extractive companies commitments to local ✓ ✓ communities 6.3 Contribution of extractive sector to the economy 46 Share of GDP ✓ ✓ Share of government revenues ✓ ✓ Extractive industries and exports ✓ ✓ Extractive industries and employment ✓ ✓ Options for Data Reporting – EITI Standard, 2016 09 Options for Data Reporting – EITI Standard, 2016 10 SECTION 1: INTRODUCTION AND METHODOLOGY The Extractive Industries Transparency Initiative (EITI) The report starts by outlining the methodology and is an international standard to ‘promote open and definition of terms employed, before turning to each accountable management of natural resources’. By particular EITI Requirement. Within each Requirement, encouraging governments, extractive companies, civil the report recommends standards for data categories society and the public to engage in discourse around and formats that may be employed by administrators of transparency of the extractive sector, it aims to facilitate the EITI. A sub-section on visualization of the particular the management of a country’s natural resource wealth data set is also recommended where applicable. to benefit all its citizens. The final sections of the report turn to the data An EITI Country Report contains a wealth of accessibility aspects of EITI data such as reporting information on regimes affecting the country’s extractive languages, and the open data policy advocated in the sector and its people. The generation of information, 2016 Standards. both in the narrative and data format, is meant to facilitate the engagement between various stakeholders TERMINOLOGY in the EITI process. As this process has matured over The following terminology is used within this report. the years, the need for making this information more Data: Unless specified as quantitative, qualitative or accessible and comprehensive has arisen. spatial, the term is used to refer generally to information To facilitate the utilization of the rich data generated being collected or made available for an EITI by a country’s EITI review process, this report makes Requirement. recommendations on reporting formats for data, with the Data Category: Refers to a data heading, for which aim of standardizing information across a country’s information is presented (such as data under ‘Corporate timeline and between countries. Tax Rate’). A number of stakeholders are involved within the Data Format: Refers specifically to the units of EITI data generation process, from the country Multi reporting for data points. The following terms are used Stakeholder Group (MSG), to government agencies, to classify formats: extractive companies, local communities and civil •Qualitative data has been broken down into three society groups. The recommendations in this report are categories: meant to facilitate these stakeholders in reporting data –Narrative: This refers to descriptive reporting, (qualitative and quantitative) in a standardized format where the implementer chronicles the information to allow for improved understanding, analysis and to be provided accountability of the extractive sector. –Text: This refers to information that is provided in The data format standards presented here are text format, but should not be used for descriptive recommendations only and are not meant to be purposes. It is used to refer to titles of legal prescriptive. Nor should they be considered as a ‘reporting regimes or names of government agencies etc template’; the decision on what to report remains the domain of the country’s MSG. The recommendations –Classification: Refers to data points that must apply to data output and are not meant to replace the be within pre-defined classifications and require larger reporting requirements under the EITI process. a ‘tick-mark’ approach These options and recommendations are proposed by •Quantitative: Where information is presented in the research team. They are not sanctioned by the EITI a numerical value, in appropriate units nor the World Bank, and following them will not •Spatial: Where information relevant to spatial necessarily lead to EITI compliance. Implementers of the co-ordinates is presented, in appropriate units. EITI are advised to review the EITI Standard and Data Point: Refers to a single data entity/point (such guidance notes for assistance on following the EITI as percentage or dollar value). Requirements. EITI Requirement: Refers to a Requirement, and The report is based on a review of the format and applicable heading and subheading, as stated in the categories of data currently being reported by EITI Standard, published by the EITI International international extractive revenue transparency initiatives, Secretariat on February 23, 20163. For each supplemented by the research team’s own experiences in managing extractive sector data for over three decades. https://eiti.org/document/standard 3 Options for Data Reporting – EITI Standard, 2016 11 SECTION 1: INTRODUCTION AND METHODOLOGY continued Requirement, the report initially states whether it is consideration differing capacity for stakeholders and ‘required’ or ‘encouraged’, but makes no further include data formats and categories that are already in distinctions within the text. Within the EITI Standard common usage in different EITI Country Reports. document, the Requirements identified for data output Better refers to standards (data format and categories) standards are listed in Table 1. that are enhancements of data covered under the good Government: The term government, unless specified, category. These recommendations differ by EITI refers to the Federal government. Where a distinction is Requirement; in some cases they provide standards for required, State government is used to refer to the more disaggregated reporting within a data category and provincial/state government. in others they refer to more details being provided for Local Currency: When the report recommends each category. In some cases, there may be just one reporting local currency, this refers to using the 3-letter standard that is considered suitable and therefore no ISO 42174 format, e.g. AED, AFN etc. differentiation will be made between the different levels of recommendations. Standard: The term is used to refer to a benchmark or a customary measure, and unless specifically stated, Best refers to standards (data format and categories) does not refer to the EITI Standard as published by the that represent the highest international benchmarks and International Secretariat. standards and are considered to provide comprehensive information, beyond the minimum data requirements. CLASSIFICATION OF RECOMMENDATIONS For some categories international standards are The member countries and extractive companies that beginning to emerge, and the recommendations reflect are signatories to and participants of the EITI cover evolving trends rather than set standards. In some cases a wide range of capabilities and resources. The capacity data categories include terminology and issues being at the government and company level to provide increasingly reported in EITI Country Reports and other information differs, as well for civil society and assessments. Recommendations under this grouping are community partners. To facilitate data reporting in not prescriptive but should be explored by EITI a harmonised format from each group, this report takes participants to enhance their reporting standards. a good, better and best approach to data standards. These are classifications developed by the research METHODOLOGY team and do not pertain to EITI compliance. Data under each EITI Requirement, as stated under the EITI Standard, were first classified on the basis of The approach allows three levels of recommendations qualitative, quantitative and spatial data. Two judgments to be made; the ‘good’ focuses on meeting the minimum were used here, first what the EITI Requirement requirements set by an EITI Requirement; ‘better’ and naturally lends itself to and second whether data points ‘best’ approaches build further on the basic standards. of a different nature can be identified. For example, The latter two categories also include/refer to data coverage of the Legal Framework naturally lends itself to categories coming into greater use in EITI Country a narrative description, but specific issues (such as Reports and other extractive transparency initiatives. ownership of resources) can be added as a binary/single As EITI is an evolving process, the better and best data point within this field. approaches are meant to encourage participants to Second, data were marked for those that are more standardize reporting where increased information and likely to follow international data standards and those data commitments are being made by the MSG. The more likely to have more specific national standards. three levels of recommendations should not be seen as The main principle in establishing the distinction was a three tier reporting system, but are meant to allow the likelihood of a data category to be comparable participants with varying capacities to report their data. across countries. For example quantitative data on Good refers to standards for the data categories and production volume for oil is considered more likely to the format in which data should be presented, that meet allow for cross-country comparisons relative to a the minimum data to be provided under each EITI narrative on contracts and licenses5. Requirement. The recommendations take into This does not assume national level data cannot be compared 5 across countries, but that the norm for such comparison is not http://www.iso.org/iso/home/standards/currency_codes.htm 4 clearly established. Options for Data Reporting – EITI Standard, 2016 12 SECTION 1: INTRODUCTION AND METHODOLOGY continued Third, a distinction between data requiring cover varying geographies, have recently published disaggregation relative to data requiring details was reports (2012-15) and some include coverage of both made. The main principle was whether data can be mineral and oil production. Additionally the countries ‘summed up’, in which case it is open for reflect varying levels of state capacity. disaggregation. Where it cannot be summed up, it is The review looked at the data format/information more likely to fall in the latter category. For example, contained for each data category relevant to the EITI license data is one that requires details (name of Requirements, and the level of disaggregation and company, date of permission etc.) while Revenue Flows detail. Commonly used data reporting categories and to the government is one of disaggregation (where the formats were identified. components can be summed up to the larger sum). The In addition, stakeholders from a number of results of this assessment are shown in Table 1. transparency initiatives were interviewed about their The table was also used to identify the EITI experiences with EITI Requirement data and the wider Requirements where commonly used data categories data issues in the sector. were easy to identify and those that required further The following section builds upon the requirements investigation. The latter headings were further for each EITI Requirement listed under Table 1. The investigated within industry standards and research first step was to establish the data categories that would analysis, weighing the advantage/disadvantages between be applicable, the format for each category and then the different options, where common standards were not in recommendations for good, better and best practices. use. The recommendations in this report are based on The recommendation for formats within each data the culmination of these findings. category should be considered applicable when the Once the primary profile for each EITI Requirement particular data category is being used. The data was established, a review of data reported by categories themselves are not meant to be prescriptive. international transparency initiatives, international data The standards are recommended by the research team. bases and industry reporting standards was undertaken. Some data categories, such as State Participation can EITI Country Reports for Ghana, Indonesia, Kazakhstan, be covered under two EITI Requirements. These are Mongolia, Norway, Peru, Solomon Islands, and Zambia, listed only once, with a full list of data categories were also reviewed. The countries were selected as they covered available in Annex V. TABLE 1 DATA PROFILE FOR EITI REQUIREMENTS International Qualitative Quantitative standard Data EITI Requirement data data Spatial data available? disaggregation Data detail 2.1a Fiscal regime ✓ ✗ ✗ ✓ 2.1a+b Legal framework ✓ ✗ ✗ ✓ 2.2 License allocations ✓ ✗ ✓ 2.3 Register of licenses ✓ ✓ ✗ ✓ 2.4 Contracts ✓ ✓ ✗ 2.5 Beneficial ownership ✗ ✗ 2.6 State participation ✓ ✓ ✗ ✗ 3.1 Exploration ✓ ✓ ✗ ✓ 3.2 Production ✓ ✓ ✓ ✓ 3.3 Exports ✓ ✓ ✓ 4.1 Disclosure of taxes & revenues ✓ ✓ ✓ 4.2 Sale of state’s share of production or other revenues collected in kind ✓ ✓ ✓ ✓ 4.3 Infrastructure provisions and barter arrangements ✓ ✓ ✗ ✓ 4.4 Transportation revenues ✓ ✓ ✓ ✗ ✓ 5.1 Distribution of revenues ✓ ✓ ✓ ✓ 5.2 Subnational transfers ✓ ✓ ✗ ✓ ✓ 6.1 Social expenditure by extractive companies ✓ ✓ ✗ ✗ ✓ 6.3 Contribution of extractives to economy ✓ ✓ ✓ ✓ Key: ✓: applicable to category ✗: further investigation undertaken by research team Options for Data Reporting – EITI Standard, 2016 13 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK 2.1 L EGAL AND FISCAL REGIME GOVERNING THE  egal Regime: •L EXTRACTIVE INDUSTRIES – Legal codes, regulations and reforms EITI Requirement 2.1 (required) is defined as follows: – Ownership over natural resources a) Information must include a summary description of – Licensing regulations the fiscal regime, including the level of fiscal devolution, an overview of the relevant laws and – International codes of conduct/signatory to treaties regulations, and information on the roles and Fiscal Regime: • responsibilities of the relevant government – Fiscal transactions agencies. – Fiscal devolution b) Where the government is undertaking reforms, the Government Agencies • multi-stake holder group is encouraged to ensure that these are documented in the EITI report. LEGAL CODES, REGULATIONS AND REFORM The overview of the legal and fiscal regimes can cover Data output: Narrative + quantitative data legislation, proclamations and regulations, the The information required under this EITI Requirement departments, offices or agencies that exercise this can take two forms; the first is a narrative description of authority and reforms under consideration. the legal codes and regulations that govern the A review of a sample of recent EITI Country Reports extractive sector and the second is quantitative data shows a spectrum of reporting streams that provide a that provides an overview of these codes. context for the legal and fiscal regimes. For example, in Good practice under this EITI Requirement should the case of legal regimes, the Kazakhstan Country cover information for the major legal, regulatory and Report 20136 states the titles of the legal codes policy documents, listed in Table 2. These data applicable to the extractive sector, whereas the Solomon categories refer to extractive specific legislation. The Islands Country Report 20137 provides a brief title for each applicable legislation, regulation and discussion on the state of the legal regime. directive should be provided, where the document can The following data categories have been identified be located, its year of drafting and when it was last under this EITI Requirement. Data categories/formats updated/amended. Additionally, if the legal framework for each are then discussed in detail. is under reform, it should be clarified what stage the reform is at. https://eiti.org/files/EITI-2013-Report-Kazakhstan_Annex.pdf 6 https://eiti.org/files/SIEITI%202013%20Reconcilation%20Report.pdf 7 TABLE 2 DATA OUTPUT FOR LEGAL CODES AND REGULATIONS Original draft Category Name/title Available in/from incorporation/issue Last updated/ amended Reform on going Good Legislation Text Name of dept./gazette YYYY MM-YYYY Yes/No •Mines and Minerals Act If yes, specify: • Petroleum/ Hydrocarbon Act. URL link where available • Under discussion Official Model Contracts • • In parliament/senate • Awaiting final approval by Regulation(s) Text YYYY MM-YYYY authority directives Policy document Text YYYY MM-YYYY Better/Best Others legislation considered relevant For e.g. If community Name of dept./gazette engagement is included under environmental URL link where available legislation Options for Data Reporting – EITI Standard, 2016 14 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued Within the better/best recommendations, the research authority to grant the right of extraction, and the legal team proposes the inclusion of other legal frameworks that document that provides this right. The examples include references to the extractive sector. Mining and provided in Table 3 are for illustrative purposes and Hydro-Carbon codes will differ from country to country, and should not be taken as a comprehensive list. may be all inclusive or for certain regulations refer to other A greater level of detail would be considered better codes. For example, environmental legislation or labour practice, where more information is provided by laws may have specific sub-clauses and regulations breaking down these rights by minerals/oil & gas and applicable to the extractive industry. Where this is the case, classifying whether they are administered by federal and references and links can be included. the state governments etc. An extensive list of other legislation is not provided Finally, best practice would include any other legal here, as depending on the structuring of mining codes frameworks that may be applicable to the ownership/ and regulations, these will differ from country to administration of the extractive sector. These would country. The recommended data categories include all comprise individual legal agreements with indigenous relevant legal/regulatory documents and the data points communities, where the latter have the right of refusal to for these. The discussion on fiscal regulations/codes is extractive activity on their land. Other laws that may fall discussed in a sub-heading later in this section. into this category include any that specify areas that are Table 2 also includes a column addressing information not open for extractive activity (such as protected reserves, on ongoing reform. ‘Under discussion’ refers to political national parks, heritage sites etc.), and those that classify dialogue taking place but where no procedural changes to a particular natural resource as a strategic resource8 etc. mining codes have been undertaken yet. ‘In parliament’ The list provided in this category is for guidance only. (or as appropriate) signifies that a bill has been drafted for consideration. ‘Awaiting final approval’ signifies that LICENSING REGULATIONS the bill has been passed by the parliament and is awaiting Data output: Narrative + quantitative final authorization, before it can be considered as law. While definitions of licenses are usually included in As there can be a number of agencies/departments mineral and petroleum codes and regulations, we responsible for enforcing a single legislation, for the recommend that this information be provided separately sake of clarity, information on the responsible agency from the narrative on legal codes and regulations. or statutory authority for legal codes and regulations has been omitted from the required data categories Good practices focus on including the basic categories here. Information on the relevant agencies and statutory for license data that will be present in the legal authorities are provided under ‘government agencies’. framework governing licenses (Table 4). In different jurisdictions, different terminology may be used, such as permits, leases or licenses. In addition, some OWNERSHIP OVER NATURAL RESOURCES countries may use a larger number of categories than Data output: Narrative + classification others. In a majority of jurisdictions, mineral and oil resources are considered to belong to the country and the rights Within the mining sector, the following are the of extraction are administered by the Federal or State commonly used classifications for licenses: governments. In some cases (such as Papua New Claim: The ground covered by the polygon has been • Guinea) the legal framework gives this right to the set aside for an activity to take place. Minerals have landowners. In other cases (such as the United States) been found in this area but no mining related the ownership rights may differ, depending on the activity has taken place. location of resource (public or private land). In yet Exploration Lease/License, Prospecting: The ground • others, landowners do not have sub-surface rights, but covered by the polygon has been leased or licensed have the right to allow access to their lands for to be explored. No mining activity. extractive companies. It is therefore considered useful to deliver this information specifically whilst providing A deposit of strategic importance can be defined as ‘a deposit of 8 the context of the legal regime. size which may have a potential impact on national security or the economy and social development of the country, as the national or It is considered good practice to specify the entity regional levels, or which is producing or has the immediate poten- that has the ownership over natural resources, the tial to produce more than 5% of total GDP in a given year’. Options for Data Reporting – EITI Standard, 2016 15 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 3 QUALITATIVE INFORMATION FOR OWNERSHIP OF RESOURCES Category Information provided Data format Good Ownership of the country’s natural Legal owner: Specify: Narrative resources •F  ederal/State government Reference to legal document that grants this right •L  and owner (Private) URL link where possible • Hybrid Authority that grants the right of Right of extraction granted by: Specify: Narrative extraction • Constitution Reference to legal document that grants this right • Regulations URL link where possible Individual contracts Better Are these rights specified by mineral List specification: Specify: Narrative type/oil & gas •P recious metals by federal government Reference to legal document that grants this •Q uarry material by local government URL link where possible Best Other legal frameworks impacting Specification of strategic deposits Specify: Narrative ownership over resources Right of refusal by local community (similar Reference to legal document that governs this to Free, Prior and Informed Consent (FPIC)) URL link where possible •E xploration Permit: The owner of this ground These blocks may also be referred to as concessions. covered by the polygon has a permit for exploration Depending on the country, the EITI implementer of minerals to occur. No mining activity. should describe these mineral or energy rights, as listed •Mining Lease/License: The ground covered by the in the country regulations, and include the above polygon has been put aside for a mining activity or suggested categories where available and appropriate. mining activity is currently taking place. Better practices focus on disaggregating the data •Quarrying License: The owner is granted a quarry categories under license profiles further by type of license for a clearly defined area, where material for mineral or energy right. There is no specific construction purposes, such as construction sand, recommendation for best practice for this category, gravel, and quarry rock is extracted. other than to provide all information considered relevant, •Artisanal Mining License: These pertain to mining that is not already included in the previous two activities done manually, without the use of machinery. recommendations. These can take a narrative form. Some suggestions for consideration are provided in Table 4. •Other: Any other lease type not assigned to the other types, for example Infrastructure leases. Table 4 addresses the legal context for licensing only and is not meant to address the data output for EITI Within the oil and gas sector the following Requirement (2.2 and 2.3) on register and allocation of classifications are commonly used: licenses. These two Requirements are addressed later in •Seismic/Exploration Licenses: Allows the authorized the report. to carry out exploration and seismic surveys of a given areas (whether on/off shore). This may also take the form of special access authorization for exploration activity. •Retention Lease: Allows the holder to retain certain rights to a petroleum discovery, which is not currently ready for commercial exploitation, but may be in the next decade or so (time for lease will vary by country/license). •Exploitation/Production Licenses: The area covered by this block has been put aside for oil extraction. Options for Data Reporting – EITI Standard, 2016 16 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 4 LEGAL PROFILE OF LICENSES BY TYPE Granted by: Name of Application fee Annual fee Category Description authority Available in/from Duration Area (per license) (if applicable) Good License title: Mineral resources Claim Text Text Name of dept./ No. of years Specify unit (in US$ Value/ US$ Value/license Exploration lease Text Text gazette hectares) for hectare each license Exploration license Text Text URL link where Local currency / Local currency / Prospecting license Text Text available hectare license Operating license Text Text Closure/rehabilitation Text Text Artisanal mining Text Text License title: Oil/gas Seismic survey Text Text Name of dept./ No of years Specify the block Area fees per km2 US$ Value/license gazette dimensions by Specify if they km2 x km2 Local currency / Exploration Text Text URL link where differ by license license available Exploitation Text Text US$ value/ Local Concessions (Include any signing bonuses) Text Text currency Better: For each license title listed above, disaggregate information further by Scale of licenses Small scale Narrative Text Name of dept./ No of years Min – Max size Local currency/ Fee applicable by gazette (In hectares) US$ value – per year 1, year 2 and Medium scale license year 3 Large scale URL link where available Type of minerala (applicable if licenses differ by mineral) Precious Narrative Text Name of dept./ No of years Base metals gazette URL link where available Industrial minerals Environmental bonds Environmental bonds Narrative Text Name of dept./ gazette US$ Value/ project Environmental fund Narrative Text URL link where available % of value of project/ revenue as appropriate Underlying rights Is the right to explore exclusive/ Exclusive/ Text non-exclusive? non-exclusive Can the right to explore be converted to Yes/No URL link where available include the right to extract? Best: Provide additional legal frameworks specific to licensing Limits on ownership by type of license Are there any legal limitations on who can own a license (narrative) Are there limitations on the number of licenses one entity can have (narrative) Are certain areas reserved for the government (narrative) Requirements for holding license Minimum spend on license areas (narrative + qualitative) Reporting requirements from companies - monthly, quarterly, annual (narrative + qualitative) Regulations with regards to transfer and relinquishing of licenses (narrative) Other As deemed appropriate to county by MSG a: for a full list of minerals, see Annex III Options for Data Reporting – EITI Standard, 2016 17 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued INTERNATIONAL CODES OF CONDUCT/TREATIES  nternational Cyanide Management Code •I Data output: Narrative Kimberly Process • There are a number of international codes of conduct Ramsar Convention on Wetlands of International • for the extractive sector, to which countries and Importance companies are signatories. These can affect the legal Stockholm Declaration • environment and compliance requirements for a country as well as company. Some of these are listed below and UNESCO Convention for the Protection of the World • may be considered in the ‘additional information’ Cultural and Natural Heritage category. The research team has not provided a good/ WTO trade measures on local content • better/best recommendation for the inclusion of these as narrative data, but research for this report has shown FISCAL REGIME that these codes are often included in discussions Data output: Classification + qualitative + narrative. around governance and transparency of the extractive There are a number of data points that can provide the sector. Therefore the mention of international context of the fiscal regime for the country’s extractive conventions or treaties a government is signatory to, in sector. These relate to providing information on the type the narrative form, can be considered. Examples of of fiscal transactions that are applicable to the sector these codes include: (from taxes to social security contributions etc). • Conflict Minerals in the great lakes region This section provides options for an overview of the • Convention on Biological Diversity (Biodiversity contextual setting of a fiscal regime only. A detailed Treaty) description and data categories for revenue flows is covered under the EITI Requirement (4.1-4.6) • Convention on the Law of the Sea ‘Revenue Collection’. • Double Taxation Treaties Table 5, in addition to the review of other initiatives • ILO Code - Safety and health in the iron and steel and EITI Country Reports, is informed by publications industry from PricewaterhouseCoopers, E&Y and Deloitte, who • ILO Code - Safety and health in underground regularly report on fiscal regimes in the extractive coalmines sector. Recommendations are provided for each of the • ILO Convention 169, concerning Indigenous and data categories the EITI administrators may choose to Tribal Peoples in Independent Countries report on, and there is no good/better/best distinction • ILO Conventions and Recommendations for Human made. Within this table, binary answers (Yes/No) are Rights and Labour Issues listed as quantitative data. • International Covenant on Civil and Political Rights (UN) TABLE 5 FISCAL REGIME COUNTRY PROFILE Category Information included Data format Corporate Income Tax (CIT) Top rate of CIT % rate Quantitative Level at which applied • Federal Classification • State Restriction on use of tax losses Yes/No Quantitative By % rate or No. of Years Special allowances/contracts Yes/No Quantitative Mineral taxes Mineral tax name Title Text Level • Federal • Provincial • Other (if applicable) Options for Data Reporting – EITI Standard, 2016 18 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 5 FISCAL REGIME COUNTRY PROFILE Category Information included Data format Basis • Ad-valorem (% of product value) Classification • Ad-valorem progressive with price • Ad-valorem progressive with production • Ad-valorem progressive with operating ratio/profit • Royalty applied to operating margin (net profits royalty) • Other (sliding scale, formula, etc. specify) Rates for top 5 extractive products based on value of (will depend on basis) production, for example: Copper % or US$/tonne Quantitative Gold % or US$/oz. Quantitative Petroleum % of revenue Quantitative Bulk Mineral $/tonne Quantitative Deductible in CIT calculation Yes/No Quantitative Oil and gas taxes Oil and gas tax name Title Text • State production tax Classification • Production handling fee • Net revenue/operating fee • Lease costs/fee • Other (specify) Level • Federal Classification • Provincial • Other (Progressive/regressive, if applicable) Basis • Wellhead Classification • Production based royalty • Production based tax on revenues • Rate of return based profit oil sharing • Excess profits/extraordinary income • Price based resource tax • Other (sliding scale, production bonuses etc.) Other taxes & payments Name of other tax • VAT Quantitative • Sales revenue • Windfall tax • Capital gains tax Basis of other taxes • Price of mineral/oil/gas Quantitative • Gross revenue • Turnover Rate of other taxes % rate Quantitative Tax on exports (Minerals) Ore extracted Yes/No Quantitative Processed ore Refined metal % rate Other (if applicable) Tax on exports (Oil/gas) Crude oil Natural Gas/LPG VAT charged on exports Yes/No Quantitative Withholding tax Dividends % rate Quantitative Interest % rate Quantitative Royalties % rate Quantitative Service fees % rate Quantitative Options for Data Reporting – EITI Standard, 2016 19 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 5 FISCAL REGIME COUNTRY PROFILE Category Information included Data format Fiscal provisions Tax holidays Yes/No Quantitative Particulars Narrative Reduced royalties fees Yes/No Quantitative Particulars Narrative Waiving of corporation tax Yes/No Quantitative Particulars Narrative Customs duty exemptions Yes/No Quantitative Particulars Narrative Other comments Fiscal stability agreements Yes/No Quantitative Duration (no. of years) Social contributions Yes/No Quantitative Voluntary or mandatory Government equity Specify which categories are applicable: Classification • Paid-up equity on commercial terms • Paid-up equity on concessional terms • Carried interest • Tax swap • Equity in exchange • Other Production sharing Basis of application: Classification • Cost minerals/oil • Profit minerals/oil % share Quantitative Transfer pricing Yes/No Quantitative Particulars Narrative Ring-fencing Yes/No Quantitative Particulars Narrative Thin capitalization Yes/No Quantitative Particulars Narrative Special economic zones Yes/No Quantitative Particulars (fiscal incentives) Narrative FISCAL DEVOLUTION  ow is the expenditure assignment for sub-regions –H Data output: Narrative governed The information for fiscal devolution can be provided in How is the revenue assignment for sub-regions – a narrative, which should cover the following governed information. Additional information on data for fiscal What is the intergovernmental transfers/grants – devolution is covered under the section on Distribution design of Revenues (5.1) and Subnational transfers (5.2) in Is there a revenue sharing formula between the – Table 16. Federal and State governments •Governed by legislation/regulations What are the level of sub-national government that – •Specific to extractives receive revenue –Specify basis for legal regime for devolution Are these paid directly to the sub-regions or – –Which of these concepts is being used for through federal government devolution; fiscal equivalence/responsibility –What is the status of the subsidiary –What autonomy is granted to sub-regions and on what legal/fiscal basis Options for Data Reporting – EITI Standard, 2016 20 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued GOVERNMENT AGENCIES A better/best approach would be to offer greater Data output: Narrative details regarding these departments and their A good approach would be to provide a list of functionalities in relation to the extractive chain. The government departments, offices and agencies that World Bank ‘Extractive Industries Value Chain’ can be engage with the extractives sector, with a narrative text used as guidance for this approach, and by each phase, to outline their primary function, and the authority they all agencies involved could be listed. This would greatly exercise. This is recommended as good practice, as it benefit from visualization. No distinction between allows for the simplest level of reporting. The list of departments provided in Table 6 is for illustrative better/best is made for this recommendation as the level purposes only and the agencies and department titles of detail by phase of extractive value chain is considered will tend to differ from country to country. to be adequate. TABLE 6 LISTING OF GOVERNMENT AGENCIES Category Information included Data format Good Department/ Text Narrative agency URL link where possible Primary function (for each agency) Narrative Narrative Level of authority (for each agency) Specify: Classification •A  uthorizing/determining bodies •E  xemption granting •R  evenue collection • Auditing/expenditure Better/Best Awards of contracts and licenses  epartment/ agency title •D Narrative Regulation & monitoring of operations Specify: URL link where possible Collection of taxes and royalties •A  uthorizing/determining bodies •E  xemption granting Classification Revenue management and allocation •R  evenue collection Implementation of sustainable • Auditing/expenditure development policies and projects VISUALIZATION control over these flows. A good example is provided by A flow chart using revenue flows as the foundation, the Mongolia Report (2013, pg. 68). The visualization where additional layers are added to show what legal clearly outlines the agencies involved and the category and fiscal regimes and the authorities who exercise of revenue flow they are responsible for. Options for Data Reporting – EITI Standard, 2016 21 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued FIGURE 1 FISCAL AND LEGAL REGIME CONTEXT FOR MONGOLIA Taxes, payments and fees • Corporate Income Tax GDT, CO • Fee and extra fee for exploitation of mineral resources and LG • Real estate tax • Tax on vehicle and self moving mechanisms • Value Added Tax • Customs tax • Excise tax on vehicle’s gasoline and diesel fuel CO • Tax on vehicle’s gasoline and diesel fuel • Customs service charge Payments MRAM, • License fee for exploitation and exploration of mineral resources NEA • Compensation for deposit exploration carried out with State budget • Revenue share of the Government as per Nucleat Energy Law • Bonus for signature (only year of contract) as per Production Sharin Agreement • Bonus for production commencement as per Production Sharin Agreement • Bonus for training as per Production Sharin Agreement C • Field deposit as per Production Sharin Agreement PAM • Admin service charges as per Production Sharin Agreement O • Fee for supporting field office as Per Production Sharin Agreement • Advance payments received by the Government • Share of profit oil of the Government as per PSAs M • Fee for recruiting foreign experts and workers P MOL • Fee for air pollution (coal) A GDT, LG • Land fee • Fee for water use • Fee for use of widespread minerals N SIGA • Social and health insurance contribution paid by entity I Penalty and compensation • Penalty E MOF, GDT, • Compensation SIGA, SSIA, Local Govt S Dividends MOF, SPC • Dividends on State property • Dividends on Local property Donations and supports LGI • Donations and supports provided to Government organizations Expenses • 50% of environmental protection budget generated to the Special Account MEGD, LG Source: EITI country report for Mongolia (2013) Key CO Mongolian Customs Office MRAM The Mineral Resources Authority of Mongolia GDT General Department of Taxation NEA Nuclear Energy Authority LG Local government PAM Petroleum Authority of Mongolia MEGD Ministry of Environment and Green Development SIGA General Authority for Social Insurance MOF Ministry of Finance SPC State Property Committee MOL Ministry of Labour SSIA The State Specialized Inspecting Agency Options for Data Reporting – EITI Standard, 2016 22 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued 2.2 LICENSE ALLOCATIONS  here licenses are awarded through a bidding c) W The EITI Requirement 2.2 (required) is defined as process during the accounting period covered by follows: the EITI Report, the government is required to Implementing countries are required to disclose a)  disclose the list of applicants and the bid criteria. information related to the award or transfer of Where the requisite information set out in 2.2(a-c) d)  licenses pertaining to the companies covered in the is already publicly available, it is sufficient to EITI Report, including: a description of the process include a reference or link in the EITI Report. for transferring or awarding the license; the The multi-stakeholder group may wish to include e)  technical and financial criteria used; information additional information on the allocation of licenses in about the recipient(s) of the license that has been the EITI Report, including commentary on the transferred or awarded, including consortium efficiency and effectiveness of licensing procedures. members where applicable; and any non-trivial Data output: Narrative + quantitative deviations from the applicable legal and regulatory framework governing license transfers and awards. The data categories within this Requirement refer to the specifications of area, duration, limitations and any Where companies covered in the EITI Report hold b)  financial payments required for the allocation of licenses that were allocated prior to the accounting licenses 9. period of the EITI Report, implementing countries are encouraged, if feasible, to disclose the information set out in 2.2(a) for these licenses. For additional information, please refer to EITI’s guidance note on 9 license allocations, found here: https://beta.eiti.org/GN4 TABLE 7 DATA OUTPUT UNDER ALLOCATION OF LICENSES Category Information included Data format Allocation process Is there a minimum evaluation criterion applicable Yes/No Qualitative Narrative describing the criterion URL link if available Allocation criterion Specify: Classification • First come first served • Open bidding • Selection board • Hybrid • Preference/barter arrangements Is there a limit on number of licenses that can be Yes/No Qualitative granted to one entity Narrative on what governs such limitations Can minister/executive authority overrule decisions Yes/No Qualitative from licensing board Narrative on what governs this decision making Are there limitations on transfer of licenses? Yes/No Qualitative Narrative on how transfers can take place Disputes over license allocation Narrative if appeals have been filed against license allocations Qualitative Details for bidding process Name Text URL link if available Title for bid, as advertised Bid criterion Date of advertisement for bid DD-MM-YYYY Date for opening of bids Date for announcement of bid winner Licence allocation disclosure Are there any significant legal or practical barriers to If yes, provide information on the nature of the barrier and how the government Narrative the disclosure of information on licence allocations? plans to overcome this, including anticipated timescale for achieving this Options for Data Reporting – EITI Standard, 2016 23 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued Countries may have different titles for licenses/ Additional information: permits, but they will generally fall under the categories Other information that could be provided through listed in the previous section (Table 4). A narrative spatial data and/or a narrative could include the following: should be provided to cover the information required for: •Information on restricted/reserved areas where •The award or transfer of licenses pertaining to the extractive activity is not permitted companies covered in the EITI Report •Overlapping land use designations i.e. national park, •If licenses are awarded through bidding process; the ancestral lands etc list of applicants and the bid criteria •Whether previously available areas have been •Commentary on the efficiency and effectiveness of withdrawn, and why these systems (encouraged). •Major water bodies in the area (such as lakes and In addition there are particular data categories that can rivers) be generated for this EITI Requirement, listed in Table 7. •For off-shore oil extraction, country boundaries and No specific good, better and best recommendations whether there any international boundary disputes have been provided within this table, as this information issues exist for the area. can both be covered under the narrative as well as a data category. At the minimum, good practice would be to outline the allocation process and the criterion. 2.3 REGISTER OF LICENSES The data under EITI Requirement 2.3 (required) is defined as follows: License defined as “any license, lease, title, a)  permit, or concession by which the government confers on a company(ies) or individual(s) rights to explore or exploit oil, gas and/or mineral resources”. Register of licenses defined as “a publicly available b)  register or cadastre system(s) with the following timely and comprehensive information regarding each of the licenses pertaining to companies covered in the EITI Report” Data output: Quantitative + spatial + narrative The data categories for this Requirement comprise of information to be drawn from the government’s register of licenses (whether online or a paper register). Data includes information on ID numbers for allocated licenses, the owner of these licenses and their location. The information covered includes details on the property, its location (geospatial data), the registered owners and details of the license itself10. The possible data categories are provided in Table 8 with recommendations on what information can be provided and the format this should take. The good/better/ best recommendations for this EITI Requirement are based on provision of greater detail within each category. For additional information, please refer to EITI’s guidance note on 10 license registers, found here: https://beta.eiti.org/GN3 Options for Data Reporting – EITI Standard, 2016 24 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 8 DATA OUTPUT FOR REGISTER OF LICENSES Category Information included Data format Recommendation Property details Property identifiers Property name Narrative Good License number Text Block id number Text Location State/Province Text Good District Commodities List commodities for which license is Text Good applicable Area Area held under license in hectares Hectares Good Up to 2 decimal points Geospatial data (license polygons represented on map/online cadastre) Coordinate system Local Coordinate System Yes/No Better Yes: Spatial data file No: Provide description Coordinate system WGS84, Latitude, Longitude (geographic Spatial data file Best coordinate system) EPSG:4326 European Petroleum Survey Group Code for the coordinate reference system Ownership details Owner(s) Registered owners Text Good Company registration no Tax registration number Contractor For construction/production sites, list Text Best contractor if different from owner Share of holdings if jointly held % share of each owner Quantitative Better Other claims owned by the same owner List property name/id number of property Text Best Number format Previous owner, if transferred in last Name of previous owner Text Best two years License details License type Titlea Text Good Application date Registered application date DD-MM-YYYY Good Date granted Registered grant date DD-MM-YYYY Good Expiry/ first renewal date Indicate original expire date DD-MM-YYYY Better Include if renewal has been granted Yes/No Duration (no of years) Quantitative Date of refusal Registered refusal date DD-MM-YYYY Better Reason for refusal Description Narrative Best Current status Describes status of activity b: Classification Better • Active • On-hold • Inactive Information last updated Date DD-MM-YYYY Best Any exemptions offered Narrative Qualitative Best Work to be performed as License Narrative Qualitative Best requirement Source of data datasets extracted/exported from the • Classification Good registry database the licenses held by a particular company • a: this should closely follow the titles laid out in Table 5 under EITI Requirement on Legal and Fiscal Regime Context. b: should closely follow the activity status as laid out in Table 12. Options for Data Reporting – EITI Standard, 2016 25 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued Online Cadastre systems have gained popularity in underway. Where applicable, the EITI Report recent years, and a number of countries employ such should provide an overview of the contracts and portals to display license information. Information from licenses that are publicly available, and include a such systems can be utilised to populate the above reference or link to the location where these are table. published. FlexiCadastre11 (provided by Spatial Dimensions) is The term contract in 2.4(a) means: c)  used by a number of African and other countries; • the full text of any contract, concession, Botswana, DRC, Kenya, Namibia, Mozambique, Papua production-sharing agreement or other agreement New Guinea, Rwanda, South Sudan, Tanzania, Uganda granted by, or entered into by, the government and Zambia. None of these portals provide download which provides the terms attached to the functionality, however users do not need to register to exploitation of oil gas and mineral resources; use the portal. Annex II provides a comparison of data • the full text of any annex, addendum or rider and format displayed for these countries within the which establishes details relevant to the FlexiCadastre systems. exploitation rights described in 2.4(c)(i) or the Mining Cadastre Administration System (MCAS)12 is execution thereof; and the other emerging used online system. It is provided by • the full text of any alteration or amendment to the Revenue Development Foundation (RDF) and is documents described in 2.4(c)(i) and 2.4(c)(ii). currently operational in the following countries: Ghana, Liberia, Mali and Sierra Leone. The term license in 2.4(a) means: d)  Of these countries, none of the portals currently • the full text of any license, lease, title or permit by provide download functionality; RDF is currently which a government confers on a company(ies) or developing an application program interface (API) that individual(s) rights to exploit oil, gas and/or will enable greater access to this data, this system is mineral resources; currently in its pilot phase and development is ongoing. • the full text of any annex, addendum or rider that Users need to register to access the system. establishes details relevant to the exploitation In general, on-line systems may require the user to rights described in in 2.4(d)(i) or the execution register before access is granted. Depending on the thereof; and system, free access may be restricted to just visualizing • the full text of any alteration or amendment to the the data and downloading of data may not be available. documents described in 2.4 (d)(i) and 2.4 (d)(ii). On-line systems will also tend to have limited historical information on transfer of licenses. The advantage is Data output: Narrative + quantitative these systems are updated at regular intervals and in This EITI Requirement pertains to the disclosure of general they will have the latest information available. contract information in a comparable and accessible format and is relevant only for countries that chose to 2.4 CONTRACTS include contract disclosure in their reporting. Table 9 The EITI Requirement 2.4 is defined as follows: details how relevant contract information should be Implementing countries are encouraged to publicly a)  reported; drawing upon the frameworks outlined in the disclose any contracts and licenses that provide the Open Contracting data standard project13 and the Model terms attached to the exploitation of oil, gas and Mining Development Agreement14, and includes minerals. recommendations from the research team. It is a requirement that the EITI Report documents b)  Good practice for this EITI Requirement entails the government’s policy on disclosure of contracts disclosing quantitative and narrative data that provides and licenses that govern the exploration and an overview of any contracts between the government exploitation of oil, gas and minerals. This should and extractive companies, where made available in the include relevant legal provisions, actual disclosure public domain. The information required, detailed in practices and any reforms that are planned or Table 9, includes descriptive data, information on the http://standard.open-contracting.org/ 13 11 http://www.spatialdimension.com/Products/FlexiCadastre-Overview https://www.iisd.org/sites/default/files/pdf/2013/mmda_ 14 12 https://revenuedevelopment.org/page/mcas-mining-licensing-system transparency_report.pdf Options for Data Reporting – EITI Standard, 2016 26 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued contract status, start and end date, its value, the In some countries, extractive transactions may not be company with whom it was entered into, and the date based on contracts, but general standard licensing it was signed. Most data required under these agreements. Where this is the case, links should be categories does not necessarily constitute confidential provided to the legal frameworks that cover these information. arrangements. TABLE 9 CONTRACT REPORTING OPTIONS Category Description Information included Data format Good Title Contract title The full title of the contract Text Contract context Is the contract part of a larger package transaction? Yes/no If yes, brief description of the role of this contract within the larger package Narrative Description Contract description A brief description of the contract Narrative Status The current status of the contract Pending - This contract has been proposed, but is not yet in force. It may be Classification awaiting signature Active - This contract has been signed by all the parties, and is now legally in force Cancelled - This contract has been cancelled prior to being signed Terminated - This contract was signed and in force, and has now come to a close. This may be due to successful completion of the contract, or may be early termination due to some non-completion Contract start date DD-MM-YYYY Quantitative Contract end date (or term) DD-MM-YYYY Quantitative Contract provisions Obligations Description on obligations on the extractive company/ government (may Narrative include expenditure, infrastructure and local employment requirements etc.) Fiscal provisions The fiscal elements detailed within the contract (these may include license Narrative and area fees, taxes, royalties, signing bonuses; tax exemptions etc.) Signatories Extractive company identification Name Text User registration number Tax identification number Address and contact point of the Street address Text Extractive company Locality/Region Postal code Country name Phone Web address State The government department/agency that authorizes the contract Text Date signed DD-MM-YYYY Quantitative Better/best Documents All documents and attachments Document type e.g. – Classification related to the contract, including any • Feasibility study notices • Environmental Impact Assessment • Social Impact Assessment Short description of the attachments Narrative URL Link Date Published DD-MM-YYYY Quantitative Date the document was last modified DD-MM-YYYY Quantitative Options for Data Reporting – EITI Standard, 2016 27 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued 2.5 BENEFICIAL OWNERSHIP norms and relevant national laws The EITI Requirement 2.5 (required) is defined as If the legal framework/regulations for the country follows: define levels of beneficial ownership, these should be (1)  recommended that implementing countries used. The report should provide a link to where such maintain a publicly available register of the definitions are sourced. beneficial owners; The MSG may set its own criterion for what it (2)  requires that the EITI Report documents the considers ‘beneficial ownership’, depending on the size government’s policy and MSG’s discussion on of the extractive industry sector. Where limits are not disclosure of beneficial ownership; and provided within legal frameworks, the following (3)  By of 1 January 2017, it is required that the thresholds can be considered: multi-stakeholder group publish a roadmap for • An individual or company holding more than a disclosing beneficial ownership. certain percentage (as set by the MSG) of the (4)  As of 1 January 2020, it is required that company shares will be considered a beneficial implementing countries request, and companies owner. This threshold will differ from country to disclose, beneficial ownership information for country, for example in Democratic Republic of inclusion in the EITI Report Congo, the threshold is set at 25% while in Honduras it is 5%. Information about the identity of the beneficial (5)  owner should include the name of the beneficial • Cumulative share criterion is where private/public owner, the nationality, and the country of limited companies shall disclose their 20 largest residence, as well as identifying any politically shareholders and ownership stakes held by them. exposed persons. Information on anyone holding less than 1% of the shares/stakes can be omitted. For small enterprises, Definition of Beneficial ownership: this can be dropped to the top 10 shareholders and omission of anyone with less than 5% of ownership. A beneficial owner in respect of a company means the natural person(s) who directly or indirectly ultimately • A combination of the above can also be employed. owns or controls the corporate entity. For example a person is deemed to have control over the company if they hold 50% or more of the firm’s As of the 2016 Standard, the Requirement for shares, and/or can accept or decline appointments of beneficial ownership has been agreed by the EITI Board, half/more than half of the board. including the timeline for implementation. The Requirement now stipulates that by 1 January 2017 the Where a small number of large projects account for MSG should publish a roadmap for disclosing the more than 60% of production value, it is advisable to required beneficial ownership information and that as of use the ownership criterion. 1 January 2020, beneficial ownership information will Where a larger number of medium to small sized need to be included in the EITI report. operations account for more than 50% of total Discussions within the EITI on beneficial ownership production value, it may be more useful to use the remain ongoing and further clarity and consensus is cumulative share criterion. expected to emerge15. Therefore the recommendations It is difficult to quantify the threshold for ‘number’ of below are based on the developing international projects here, as country cases will differ. In some standards, and as a result may require revision in the countries one to four large projects may account for a future when greater consensus is reached in this area. significant proportion of the country’s mineral production. The EITI administrator should discuss the Data output: Narrative + quantitative threshold to be used with the MSG. As these thresholds The EITI Requirement offers a definition of beneficial will vary from country to country, the report should ownership and encourages MSG to agree on an define the agreed limit in the text. appropriate definition, taking into account international Once the definition of beneficial ownership has been agreed upon, data within the recommended categories can be generated. Table 10 provides recommendations For additional information, please refer to EITI’s guidance note on 15 beneficial ownership, found here: https://beta.eiti.org/standard/ for the disclosure of information that will be required as GN22 of 1 January 2020. The better and best Options for Data Reporting – EITI Standard, 2016 28 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued recommendations are based on providing a greater level Better practice would be to provide details on the of disaggregation for each data category. beneficial owners and the extent of their stake in the Good practice would be to first identify whether there business. Finally, best practice would be to provide are any beneficial owners, and if these owners are information on whether these individuals have political individuals or firms. Additionally, if any of the beneficial exposure. owners have been identified as politically exposed persons, these should be indicated here16. For example, Ukraine operates a website that lists politically ex- 16 posed persons: http://pep.org.ua/en/. EITI Ukraine: https://eiti.org/ ukraine TABLE 10 DATA OUTPUT FOR BENEFICIAL OWNERSHIP Category Information included Data format Good Company name Text Text URL link to company website Registration number Number Text Type of entity Specify legal registration: Classification • Sole ownership • Private/public listed • Joint Venture • Other (specify) Activity by business sectors • Minerals Classification • Oil and Gas •L arger business conglomerate with other non-extractive businesses • Other (specify) List of board members Text Text Name and position on board % share of holding URL link to corporate register Is there incidence of beneficial ownership? Yes/No Quantitative Is there incidence of politically exposed person? Yes/No Quantitative List of shareholders with beneficial ownership Text Text • Individuals % share of holding Quantitative • Holding companies Better For each listed beneficial owner (individual) Name Text Nationality Country of residence Licence information URL link to public register of Tax payer ID number beneficial owners For each listed beneficial owner (firms) % share of holding company in entity Quantitative List of board members of holding company Text URL link to corporate register Best For each listed politically exposed person (individual) When beneficial ownership was acquired Text Position and role Name Nationality Licence information URL link to public register of Tax payer ID number beneficial owners Options for Data Reporting – EITI Standard, 2016 29 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued 2.6 STATE PARTICIPATION In addition, information, on the level of state control The EITI Requirement 2.6 (required) is defined as follows: is also recommended in the narrative as good practice. Where state participation in the extractive industries Control over a company can be exerted through different gives rise to material revenue payments. means, ownership being the most common avenue used. However, with state participation, two major situations Disclosures from the government and SOE(s) of their may exist. The first is when the state has majority level of ownership in mining, oil and gas companies ownership but leaves management decision to operating within the country’s oil, gas and mining sector, professionals. The second is when the state may have a including those held by SOE subsidiaries and joint minority ownership but can intervene in management ventures, and any changes in the level of ownership and finance decisions. during the reporting period. This information should include details regarding the terms attached to their Ownership is easier to define/measure than control as equity stake, including their level of responsibility to it refers to share holdings of the company. Control is cover expenses at various phases of the project cycle, more difficult to measure as it refers to the e.g., full-paid equity, free equity, carried interest. Where government’s ability to act decisively on management there have been changes in the level of government and issues. It can be defined as18: SOE(s) ownership during the EITI reporting period, the To be in control is to have the possibility to act government and SOE(s) are expected to disclose the decisively on strategically important issues. Such issues terms of the transaction, including details regarding include the broad policies of a company, decisions on valuation and revenues. Where the government and large investments, buying or selling of subsidiaries and SOE(s) have provided loans or loan guarantees to mining, power to appoint or dismiss management. To be in oil and gas companies operating within the country, control of a company does not necessarily include details on these transactions should be disclosed. having day-to-day influence over all its decisions. Additional information on the assets of the company Data output: Narrative + quantitative are considered as better/best practice, including When the extractive firm is a publicly-owned entity, the information on the State Owned Enterprises (SOEs) firm should follow the same data category finances themselves, and where available, information recommendations, as for private firms, as laid out under on who are SOE beneficiaries, i.e. revenue flows from Revenue Collection (4.1 – 4.6) and Register of Licenses the SOE to other entities. The data category Requirements (2.3) in the report. A notation should be recommendations cover flows from the SOEs to the made to indicate if the firm is a state owned enterprise. government and other beneficiaries, including data on The data formats and categories discussed here are what loans have been made, to which entity and under those which relate to revenue flows where the what agreement. government is both the receiver and the payee of revenues, i.e. flows (whether in cash or in-kind) from the extractive entity owned by the state, to other state departments. These recommendations are applicable for categories where the information has been made available to the EITI administrators. Table 11 outlines these recommendations. Providing the context for state participation is recommended as good practice17. Inclusion of percentage equity share of the government in extractive enterprises, as well as clarification on how government participation is undertaken (through equity, contracts etc) is recommended. For additional information, please refer to EITI guidance notes for 17 SOE participation, can be found here: https://eiti.org/guidance- http://siteresources.worldbank.org/INTOGMC/Resources/GlobalMin- 18 notes-and-standard-terms-reference#GN18 ingIndustry-Overview.pdf Options for Data Reporting – EITI Standard, 2016 30 SECTION 2: LEGAL AND INSTITUTIONAL FRAMEWORK continued TABLE 11 DATA OUTPUT RECOMMENDATIONS FOR STATE PARTICIPATION Category Information provided Data format Good Rules governing state participation Granted by: Narrative • By legislation or regulation URL link to document where available • By contract • Other Mode of state participation Equity ownership Classification using one or more of SOE subsidiary these response options Production Sharing Agreement (Concessions governed by Tax Code) Concession (Production Sharing Agreements negotiated separately) Concession and Production Sharing Agreement (Hybrid) Production Sharing Agreement (Standalone) Licensing Regime: JV between IOC and Government Contractual regime: Risk Service Contracts and Production Sharing Contracts Service Agreement Mixed Company Structure Production Sharing Contract, Joint Venture, Other Agreement Equity ownership % share Quantitative Type of equity participation • Full paid equity Classification • Free equity • Carried interest Has equity ownership changed in previous year? Yes/No Classification By what extent? Quantitative How is state control exercised Through board of directors, investment decisions, dividend decisions etc. Narrative /document Payments to State Retained earnings US$ value Quantitative Reinvestment US$ value Quantitative Dividends Total value of payment Quantitative In-kind* Royalty (commercial) US$ value Quantitative In-kind NPI - Net profit interest % rate of interest Quantitative US$ value NSR - Net smelter returns % rate of return Quantitative US$ value Royalty holder US$ value Quantitative Better/Best SOE finances Total assets Cash equivalent US$ value Quantitative Other current financial assets US$ value Quantitative Accounts receivables from related companies US$ value Quantitative Investment property US$ value Quantitative SOE beneficiaries Intercompany loans % of interest rate Quantitative US$ value of capital amount Third-party loans % of interest rate Quantitative US$ value of capital amount Terms of transaction narrative / document Narrative Donations/grants to other institutions US$ value of grant Quantitative *In-kind payments should be reported with volume sold in units or revenue received in US$ value. Options for Data Reporting – EITI Standard, 2016 31 SECTION 3: EXPLORATION AND PRODUCTION 3.1 EXPLORATION associations and civil society. EITI administrators can The EITI Requirement 3.1 (required) is defined as follows: refer to these discussions as well as to guidance from Implementing countries should disclose an overview of their respective MSGs. They may also consider using the the extractive industries, including any significant definition of ‘project’ as used by the government exploration activity. ministry in-charge of the extractive sector. Whichever definition of project is agreed to by the MSG, it should The data provided under this EITI Requirement should be clearly noted in the text. illustrate the profile of the extractive sector. While overall contribution to the economy is covered under Table 12 provides recommendations on data category Requirement 6.3 (Contribution of extractive sector to the and formats that can be used to report on the profile of economy), recommendations in this section demonstrate the extractive sector. These categories are commonly the level of activity at a more granular level. used in Country Reports. In addition, due to the cyclic nature of the extractive sector, information should be There is a global discussion underway as to what provided on the status of these projects to provide a should be the definition of a ‘project’; including in more comprehensive overview of the extractive sector. legislation in various countries and within industry TABLE 12 ESTABLISHING (LSM) PROFILE OF EXTRACTIVE SECTOR Primary commodity Project stage No of projects Number of companies Data format By commodity: Early stage exploration Late stage exploration Copper Gold Construction Iron ore Operational Mineral sands Closure in 2 years Oil Seismic exploration Natural gas As a number As a number Quantitative Site surveys Exploration drilling Appraisal drilling Construction Producing wells Closure in 2 years Better/Best Minerals Primary reserves and resources Volume as identified by company for primary commodity Quantitative (volume unit as listed in Annex III) Oil and gas Proven reserves • Volumetric (early phase) Quantitative • Materials balance (operational phase) (total barrels) The information required under Table 12 should be Good practice would be to provide this data at the available from the ministry that grants licenses for the national level and in aggregate. This would include extractive sector. Countries employing on-line cadastre providing information on the number of projects as well systems can extract this information from their data as the number of companies operating. Breaking this repositories. down by commodity is recommended. In countries where such information may not be Better/Best practice would include detailed information available, extractive companies (as listed in the register on resources and reserves. Detailed resources and of licenses) should be able to provide the required reserves information can be considered proprietary/ information. There are also a number of commercial commercial information. Where such information is organizations, which provide such data. available in the public domain, it should be included. Options for Data Reporting – EITI Standard, 2016 32 SECTION 3: EXPLORATION AND PRODUCTION continued Detailed information will be collected under EITI surveys are the two earliest stages of exploration and are Requirements for Production and Register of Licenses, conducted after the award of a license. If the which can be used to populate this table. exploration results in an indication of potential hydrocarbon reservoirs, the next stage of surveys are IDENTIFYING PROJECT STAGE (MINING SECTOR) carried out. Site surveys require more in-depth The following project stages are based on accepted exploration activity. Positive results, will lead to a practice in the mining industry: structured drilling programme. While these two stages Early Stage Exploration: A project that does not have a may be considered separately within the oil and gas defined resource19 estimate. A further distinction can be industry, these are very early phases and projects may drawn between Grassroots (preliminary license allocated be lumped together for ease of reporting. and reconnaissance has been carried out) and Late Stage Exploration: Exploration drilling is where Exploration (preliminary testing is underway, including one or more exploration wells are drilled to determine if mapping, sampling and some level of drilling). the prospect exists and whether the reservoir is viable for Late Stage Exploration: A project that does have a production. The next stage is appraisal drilling; this defined resource estimate, but a decision to go-ahead phase of the lifecycle of the oil/gas field is used to with production has not been reached. This stage can establish the size of the field, and whether the project be further disaggregated between: will have commercial value. Information on flow rates, temperatures and pressures will be established during Reserves Development: Where an initial resource/ this phase. The value of the oil/gas asset is likely to be reserve has been calculated, with additional drilling determined at this point20. being undertaken to further define the project Construction: Commonly referred to as development, Prefeasibility/Scoping study: Where an in-house during this phase the technical and production viability assessment to determine mining and processing of the project has been established. Equipment, methods, capital costs, net present value, internal rate services and materials will be procured, including a of return, etc. has been undertaken system for the transport of the oil and gas. Once the Feasibility study: Where a bankable study is being facility has been tested to achieve a stable production undertaken to determine the economic viability of the level, the project then moves into production. project. This stage will also consider broader issues Production: The project is in production and an output such as an environmental assessment, local community for export or processing is available. engagement, legal and permitting requirements. Construction: Where the decision to go-ahead has IDENTIFYING ACTIVITY STATUS been reached, and the mine site is being readied for Activity status, for both mineral and the oil/gas sector, production. This will include development construction are defined in this report as follows: plans for the property, and planning/constructing Active: Currently being explored, developed, or mined. supporting infrastructure. On-hold: Activity has been suspended for any number Operations: The mine begins to produce output that is of reasons; technical, labour, environmental or political saleable and/or ready for processing. Where exiting reasons, lack of funds etc. However, activity is expected operations are being expanded, for expediency, these to resume once the underlying factor has changed. can also be listed as operational mines. Inactive: All project activity has come to an end. Projects Mine Closure: When a mine is coming to the end of its that are under care and maintenance can be listed here. mine life, and is expected to cease production within two years or less. CALCULATING RESERVES AND THEIR VALUE Calculations of reserves can be fairly complex and IDENTIFYING PROJECT STAGE (OIL & GAS SECTOR) expertise is required to reach correct valuations. The For oil and gas, the following stages apply: research team strongly recommends that data points Early Stage Exploration: Seismic exploration and site under these categories should be as reported by the Resource estimates should only be considered if they meet an 19 Guidance on oil & gas reserves can be found here: http://www.opec. 20 international standards as specified by JORC equivalent (www.Jorc. org/library/Annual%20Statistical%20Bulletin/interactive/2006/ org) or CRIRSCO (www.crirsco.com) compliant standards. FileZ/definition.htm Options for Data Reporting – EITI Standard, 2016 33 SECTION 3: EXPLORATION AND PRODUCTION continued extractive company21 or experts are engaged to make VISUALIZATION these calculations. The tables recommended above provide the data Reporting Primary Resources22: Resource estimates, categories for this particular EITI requirement, but given exclusive of reserves, should only be considered if they the level of information contained, they can be difficult meet international standards, such as specified by to read. JORC23 or an equivalent standard. Therefore the recommended visualization is to present Proven Reserves for Oil and Gas24: An estimated the information as a map (which can be in a simple quantity of all hydrocarbons statistically defined as JPEG format). Figure 2 illustrates an example of the crude oil or natural gas, which geological and ‘best’ standard recommended for visualization. Such engineering data demonstrate with reasonable certainty graphics can be easily produced by using an online to be recoverable in future years from known reservoirs cadastre system if available. under existing economic and operating conditions. Note: Reservoirs are considered proven if economic viability is •A good standard would be to provide locations for supported by either actual production or conclusive each project formation testing. •A better standard would be to provide colour coding The area of an oil reservoir considered proven includes by stage of activity those portions delineated by drilling and defined by •The best standard would be to provide an additional gas-oil or oil-water contacts, if any, and the immediately layer of coding that allows for projects to be adjoining portions not yet drilled, but which can be distinguishable by commodity and project stage. reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proven limit of the reservoir. Volumetric method: Based on the size of reservoir and the physical properties of the reservoir, more suitable at the early stages of the oil/gas production cycle as there is no established production history at this time of operation. Materials balance method: Based on data from production history, change in reservoir pressure is used to estimate the remaining oil in the basin. 21 Internationally listed extractive companies will provide resources and reserves information in their annual reports. 22 Detailed definitions of reserves and resources by the USGS can be found here: http://minerals.usgs.gov/minerals/pubs/mcs/2015/ mcsapp2015.pdf 23 http://www.jorc.org/ 24 Based on OPEC’s definition: http://www.opec.org/library/ Annual%20Statistical%20Bulletin/interactive/2004/FileZ/ definition.htm Options for Data Reporting – EITI Standard, 2016 34 SECTION 3: EXPLORATION AND PRODUCTION continued FIGURE 2 MINING PROPERTIES IN MADAGASCAR Source: SNL.Com 3.2 PRODUCTION and gold) and in carat for gemstones etc. SNL Financial The EITI Requirement 3.2 (required) is defined as follows: has provided a comprehensive list of minerals, and their Implementing countries must disclose production data units of measurement, in Annex III. These data for the fiscal year covered by the EITI Report, including standards are based on the company’s experience in total production volumes and the value of production by managing extractive sector data. commodity, and, when relevant, by state/region. While different regions and companies may report Production value and volume should be reported in production quantity data in different units (lbs. vs oz.) it appropriate units, closely following international norms. is recommended that all production quantity be These are provided in Annex III. This section provides converted into similar units at time of reporting. See guidelines on how such data may be recorded under Annex IV for how to convert units. the EITI. Production value should be reported in both US dollars, as well as local currency, where available. PRODUCTION VOLUME AND VALUE OF MINERAL Production value should be based on the volume PRODUCTION produced and should not reflect the revenue/income of Production volume (i.e. quantity) is reported in tonnes the extractive company. The latter calculation includes a for most bulk commodities (such as copper and iron number of other costs and revenues that are not related ore), in ounces for precious metals (such as platinum to production volume. Options for Data Reporting – EITI Standard, 2016 35 SECTION 3: EXPLORATION AND PRODUCTION continued Production value ($ value of mined output) = concentrate, while the international price is for refined Quantity (mine gate concentrate) x Benchmark Price copper metal. A conversion factor is therefore needed to strip away the ‘refined’ value contained in price. International benchmark prices for most metallic mineral products can be sourced from the IMF25, which Conversion factors can differ from mine to mine, as reports these on a monthly basis. The coverage tends to some concentrates will have higher purity than others, be limited to commodities quoted on international stock and no explicit international system can be exchanges. Annex III lists, by source and type, the recommended for constructing these factors, they will recommended price formats to be used. always be estimates. However, based on the research team’s experience in using conversion factors at the For other minerals, particularly industrial minerals, international level, recommendations are provided for international benchmarks are not easy to find, as these select metallic minerals in Annex III. Therefore tend to be traded mainly through contracts, rather than production value can be calculated as follows: international exchanges. There are three options which can be used: Production Value ($ value of mineral output) = Quantity (when reported as concentrate/ore) x •Good: Request price from operating extractive Conversion Factor27 x Annual Realized Price ($/unit companies in the country of final metal)28 •Better: Use international prices, as quoted by the United States Geological Survey PRODUCTION QUANTITY AND VALUE OF OIL AND •Best: Subscribe to a professional service, such as GAS PRODUCTION Thomson Reuters or Industrial Minerals26 for price Crude oil production is reported as 1,000 barrels/day. feeds. Oil production is also occasionally reported by weight; There are concerns that the first two recommendations however we recommend that these be converted into may not be the most appropriate benchmark with barrels in the final format. Conversion rates are provided regards to accuracy of international price levels, but Annex IV. While it is possible to further disaggregate oil they are available free of charge. The best production by crude and refined petroleum products, the recommendation will result in more accurate price latter tend to be refinery products and are not included levels, but does require a subscription fee. in this report. To facilitate standardization across countries, and to Natural Gas is reported as Natural Gas Processed ensure cost efficiency, the research team would suggest (Million cubic meters). Natural gas production figures that the EITI International Secretariat provide a will normally exclude associated (flared and recycled repository of benchmark price services for all EITI gas), but include gas-to-liquid transformation. implementers. The International Secretariat would be For natural gas, it may be prudent to consider data for better placed to negotiate access for price provision flared gas separately, as this portion of production is from services that require a subscription fee. The disposed of by burning it at point of extraction and does International Secretariat will not establish benchmark not contribute to revenue figures. The recommendations prices itself, but act as a repository of existing provided in Table 13 are based on those used by OPEC benchmark price subscription services that EITI to report oil and gas production and value data29. implementers can utilize. Where required, the value of production can be An annualized price average should be employed calculated by using an international price bench mark; where possible. the Spot Crude Average of U.K. Brent, Dubai and West When quantity is provided as final metal and not mineral production: For calculating production value, for metallic minerals in particular, the EITI implementer 27 The “conversion factor” refers to an overall recovery factor to transform the raw ore to a recovered final product that the annual must be aware of differences between the international realized price relates to. The conversion factor can also be used benchmark price and the category of the product for to adjust the value from a final sales value (of metal) to that which which the quantity is being reported. For example, is relevant for domestic sales (mineral component). See Annex III production quantity will likely be reported for copper for typical conversion factors at the international level for select minerals. 28 The “annual realized price” refers to the weighted-average annual http://www.imf.org/external/np/res/commod/index.aspx 25 realized price received by the producer http://www.indmin.com/ 26 29 http://www.opec.org/opec_web/en/publications/202.htm Options for Data Reporting – EITI Standard, 2016 36 SECTION 3: EXPLORATION AND PRODUCTION continued Texas Intermediate is the recommended price. There are Japan (LNG.) Monthly prices for both oil and gas are varying international benchmark for Natural Gas. The available at IMF’s Commodity price website30. two most commonly used benchmarks are ‘Russian in Germany’ for natural gas (piped) and Indonesian in 30 http://www.imf.org/external/np/res/commod/index.aspx TABLE 13 OIL AND GAS PRODUCTION VOLUME AND VALUE FORMAT Category Volume Price Price benchmark Value Crude oil barrels/day US$/barrel Spot Crude Average of U.K. Brent, Dubai, and Volume x price West Texas Intermediate, equally weighted* In US$ Natural gas Gross production US$/MMBTU Benchmark price: Russian in Germany* Volume x price In US$ Marketed production US$/MMBTU Benchmark price: Russian in Germany* Million standard cubic meters Flaring NA Reinjection NA Shrinkage NA Natural gas liquids Million standard cubic meters US$/MMBTU Benchmark price: Indonesian in Japan (LNG)* Volume x price In US$ *available from the IMF Commodity Price Statistics OTHER CONSIDERATIONS ‘refined’ metal from the cost of ore, by using a Differing Fiscal Years: While an EITI report specifies the conversion factor. These conversion factors will estimate years for which it presents data, companies may follow the value added to the refined metal by the refining differing practices for their fiscal and tax years, process. As stated earlier, these factors will differ from depending on their jurisdiction. Some may be aligned to country to country and it is advisable to ask companies the calendar year (January to December) while others to report metal contained, rather than attempt a may use October to September reporting. Where conversion. confusion over fiscal years may occur, it is recommended to use quarterly production data and 3.3 EXPORTS align it with the reporting year. The EITI Requirement 3.3 (required) is defined as follows: Currency: It is recommended that all data be reported Implementing countries must disclose export data for in local currency as well as US dollar. The conversion the fiscal year covered by the EITI Report, including between local and foreign exchange rates should be total export volumes and the value of exports by done using an annualized exchange rate. The World commodity, and, when relevant, by state/region of origin Bank provides official exchange rates for most countries The Standard International Trade Classification (SITC) on the World Development Indicator31. These are the Rev. 3 is the recommended international classification recommended exchange rates to be used. Where data is for reporting trade in products. The classification is not available from the World Bank, implementers can provided by the United Nations Statistics Division32 and source this information from the country’s central bank. data can be disaggregated from 2 to a 5 digit level. Metal Content vs. Refined Metal: Some firms may SITC is recommended as it is a commonly used data choose to provide production data on refined metal as reporting standard, and international data is available opposed to metal content of mined production, as their under this classification at the UN-COMTRADE33 for a operations are vertically integrated. While not extremely large number of countries. accurate, it is possible to remove the value of the http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=14&Lg=1 32 http://data.worldbank.org/indicator/PA.NUS.FCRF 31 http://comtrade.un.org/data/ 33 Options for Data Reporting – EITI Standard, 2016 37 SECTION 3: EXPLORATION AND PRODUCTION continued SITC categorization and coding are used commonly in provided in Annex III. The data format for reporting both academic research and other commercial export value is US dollar and for volume data, the same databases. The categorization also benefits from being format as production volume should be employed. easily converted into other trade reporting formats (such Specific trade codes are not available for all the listed as those used by the EU or USA), with conversion codes minerals in Annex III; some minerals tend to be available on the UNStat34 website. internationally traded in such small quantities, that they The appropriate SITC code for each mineral is do not warrant a unique code. In these cases, they are usually categorized under ‘other’ and EITI implementers should refer to the national customs officials for http://unstats.un.org/unsd/cr/registry/regdnld.asp?Lg=1 34 reporting the export value. Options for Data Reporting – EITI Standard, 2016 38 SECTION 4: REVENUE COLLECTION 4.1 C OMPREHENSIVE DISCLOSURE OF TAXES AND The two sets are largely compatible; however the IMF REVENUES schema is better suited to aggregate levels of revenue The data categories under EITI Requirements 4.1 data reporting. For the nuances that are regularly (required) are defined as follows: reported in EITI Country Reports, a greater level of •Describe the taxes and revenues from the extractive disaggregation is warranted; particularly for industries contributions to local communities, whether in cash or in-kind. The latter are not found in the IMF schema. •Definition of ‘materiality’ Table 14 presents the formats for data categories •Description of each revenue stream commonly used in EITI Country Reports, with the last column indicating the equivalent IMF GFSM (2014) Data output: Quantitative + narrative coding and description. In some categories, an The definition for materiality, to be used within an EITI equivalent GFSM code could not be identified. As the Country Report, is set by the MSG and should be data for this EITI Requirement focuses on the value of provided as a narrative35. The following thresholds were the revenue stream, all data should be reported in both noted in the sample of EITI Reports surveyed for this US Dollars and the local currency. project: The format for the data points presented provides •All specific payments related/mentioned in the descriptions for the quantitative data only. A narrative mining code were included explaining each of these data headers is recommended. •Any flow that exceeds a threshold level of total In addition, each category in column one should be read extractive revenue flows to government, either set as as those applicable to the natural resource enterprises. dollar value or cumulative share (as a percentage). The tax category identified under ‘dividends and state For example: entitlements’ also include references to state’s share of –All companies where payments cumulatively production (both as revenue and as in-kind). constitute 95% of total revenues in the previous year –All companies that paid in excess of US$2.5 million of royalties in the previous report. Cumulatively 90% of all royalty payments •Where revenue payments may be less than 1-5% but the impact of the companies actions are deemed to be important, the company was included. For defining the data categories for revenue streams, the research team first constructed data categories that include the most commonly referred to/used revenue streams as reported in EITI Country Reports and in other transparency initiatives. These were then reconciled with revenue categories provided by the IMF in its Government Finance Statistics Manual (2014)36, IMF’s Fiscal Analysis of Resource Industries37 and suggestions presented in IMF (2014) Template to Collect Data on Government Revenues from Natural Resources38. EITI International Secretariat has published an EITI Summary Data Template39 which can also be used for reference. 35 For additional information, please refer to EITI guidance notes on materiality, found here: https://beta.eiti.org/standard/gn13 36 http://www.imf.org/external/Pubs/FT/GFS/Manual/2014/gfsfinal.pdf 37 http://www.imf.org/external/np/fad/news/fadtools.pdf 38 https://www.imf.org/external/np/sec/pr/2014/pr1454.htm 39 https://eiti.org/document/eiti-summary-data-template Options for Data Reporting – EITI Standard, 2016 39 SECTION 4: REVENUE COLLECTION continued TABLE 14 DATA OUTPUT FOR FISCAL REGIME BY REVENUE CATEGORY Category GFSM (2014) Code Description in GFSM License and concession fees Application fees 11452 Other taxes on use of goods and on permission to use goods or perform activities Annual fees Acreage fee (oil & gas) Transit fee (oil & gas) Rental fee Transportation and terminal operations fee Environment related water use land use Entry fees Service charges (for government services) 1422 Administrative fees Service fees (to government) Profits taxes Corporate income tax 1112 Taxes on income, profits, and capital gains (payable by corporations and other enterprises) Profit tax Variable income tax Withholding tax (dividends, interest and fees)* Windfall tax 1112 Extraordinary profits Personal income tax 112 Taxes on payroll and workforce VAT/Sales tax (net) 1141 General taxes on goods and services VAT 11411 Value added tax Sales 11412 Sales tax Excise duty 1142 Excises Real estate tax 1415 Rent Penalties 1161 Other taxes payable solely by business Social security contributions 12 Social contributions Employee contributions 1211 Social security employee contributions Employer contributions 1212 Social security employer contributions Stamp duties 11457 Other taxes on use of goods and on permission to use goods or perform activities Land tax 1415 Rent Tax on vehicles and self-moving mechanisms 11451 Motor vehicle taxes Local/district taxes No equivalent identified Capital gains tax 111 Taxes on income, profits, and capital gains Royalties and bonuses Resource rent tax 1112 Taxes on income, profits, and capital gains (payable by corporations and other enterprises) Royalties (as applicable) 1415 Rent Ad-valorem (percentage of product value) Ad-valorem progressive with price Ad-valorem progressive with production Ad-valorem progressive with operating ratio/profit Royalty applied to operating margin (net profits royalty) Production tax 1415 Rent Bonuses 1415 Rent Signature bonuses Discovery bonuses Options for Data Reporting – EITI Standard, 2016 40 SECTION 4: REVENUE COLLECTION continued TABLE 14 DATA OUTPUT FOR FISCAL REGIME BY REVENUE CATEGORY Category GFSM (2014) Code Description in GFSM Production bonuses Production entitlements enterprises Compulsory social infrastructure payable Payments to landowners (where applicable) 1415 Rent Pollution tax 114522 Pollution taxes Trade related revenue flows Import/customs duty 1151 Customs and other import duties (import taxes) Import duties Import taxes Customs office and service fees 1151 Customs and other import duties Export duties/tariffs 1152 Taxes on exports Export duties Export taxes Grants and donations Donation to support to state owned organizations 13 Grants Grants from foreign governments 131 From foreign governments Grants from international organizations 132 From international organizations Investment in construction and maintenance of 144 Voluntary transfers other than grants infrastructure Local community development expenditure by companies 13 Grants * While ‘withholding taxes’ have been included as a category, it is understood that these are a means for collecting taxation and not a tax in themselves. Where withholding taxes are reported, they should be clearly referenced to indicate if they pertain to dividends, interest, wages etc. 4.2 S  ALE OF THE STATE’S SHARES OF PRODUCTION Data output: Quantitative OR OTHER REVENUES COLLECTED IN-KIND The major data categories for reporting state’s share of The data required under EITI Requirements 4.2 production or other revenues have been presented under (required) is defined as follows: EITI Requirement 2.6 (Table 11). Table 15 provides these •Revenue from sales of state’s share of production data categories as presented within GFSM (2014) codes. •Revenue from sales broken down by transaction TABLE 15 DATA OUTPUT FOR STATE’S REVENUE Category GFSM (2014) Code Description in GFSM Dividends and state entitlements Profit tax if state owned company 1143 Profits of fiscal monopolies Dividends from government owned natural resource enterprises 1412 Dividends Dividends from government participation in natural resource enterprises 1412 Dividends Withdrawal of income from quasi - corporations* 1143 Profits of fiscal monopolies Profit remitted to government by SOEs 1153 Profits of export or import monopolies Sales of state’s share of production or other revenues collected in kind: 1415 Rent • Volume sold - unit • Revenue received - US$ value Quasi corporations are defined as “unincorporated enterprises that function as if they were corporations, and which have complete sets of accounts, including balance * sheets” OECD Glossary of Statistical Terms: https://stats.oecd.org/glossary/detail.asp?ID=2225 Options for Data Reporting – EITI Standard, 2016 41 SECTION 4: REVENUE COLLECTION continued 4.3 INFRASTRUCTURE PROVISIONS AND BARTER  isclosure of tariff rates and volume of the •d AGREEMENTS transported commodities. The data categories under EITI Requirements 4.3 disclosure of revenues received by government • (required) are defined as follows: entities and SOE(s), in relation to transportation of •the terms of the relevant agreements and contract oil, gas and minerals •the parties involved Data output: Quantitative + narrative •the resources which have been pledged by the state The definitions for relevant transportation taxes, tariffs •the value of the balancing benefit stream (e.g. etc. should be provided as a narrative, as would be done infrastructure works) under EITI Requirement 4.1 where comprehensive •the materiality of these agreements relative to disclosure of revenue streams is undertaken. Table 14 conventional contracts provides data categories for reporting tariff rates, Annex Data output: Quantitative + narrative III provides data standards for reporting volumes and A narrative is required, where the MSG has determined Table 11 provides data standards for disclosing revenues that infrastructure or barter agreements meet a received by the state. materiality threshold, to outline the provisions of such agreements. VISUALIZATION The date categories under this Requirement have been The visualization of this data is recommended through considered under the EITI Requirement for contracts graphs, as these can quickly present the share of each (2.4) and Table 9 provides specific guidelines on revenue category to the total pool. Figure 3 is an reporting data. example to illustrate this. 4.4 TRANSPORTATION REVENUES The data categories under EITI Requirements 4.4 (encouraged) are defined as follows: •definitions of the relevant transportation taxes, tariffs or other relevant payments, and the methodologies used to calculate them. FIGURE 3 TAXES AND CONTRIBUTIONS BORN Production taxes Property People tax 11% taxes 20% 2% Mining taxes Other profit 5% taxes 1% Royalty, license fees and resource rents 15% Corporate income tax Other 40% contributions 6% Source: PricewaterhouseCoopers (2012) Options for Data Reporting – EITI Standard, 2016 42 SECTION 5: REVENUE ALLOCATIONS 5.1 DISTRIBUTION OF REVENUES 5.2 SUBNATIONAL TRANSFERS The EITI Requirement 5.1 (required) is defined as follows: The data categories within this requirement refer to Describe the distribution of revenues from the documenting and reconciling national and subnational extractive industries. transfers40. Data output: Narrative + quantitative Data output: Narrative + Quantitative The data needs to illustrate where resource revenues, The narrative describing the governance of subnational once received, are being allocated and document transfer was discussed earlier under EITI Requirement 2.1, whether the allocation is being delivered. This data will under fiscal devolution. Data standards for describing contain both narrative and quantitative elements. subnational transfers are indicated in Table 16, under the best category. The recommendations made for this The good, better and best practices for data categories requirement are most applicable where the country has recommended for this EITI Requirement, are based on specific legislation around subnational transfers. The tracing the flow of these revenues. Good practices would recommendations may provide useful guidance in countries refer to how the federal government receives and where oil, gas and mineral revenues are comingled with allocates this revenue, better reporting would focus on other revenue sources and subnational transfers are the distribution from the federal to state or provincial determined through the national budget allocation process. level. Best practice refers to tracking these payments to the community level. Table 16 outlines how these data can be reported. 40 For additional information, please refer to EITI guidance note on subnational reporting, found here: https://beta.eiti.org/standard/ GN10 TABLE 16 DATA OUTPUT FOR DISTRIBUTION OF REVENUES Category Information required Data format Good Is there a separate resource revenue account (RRA) in which extractive revenues are deposited? Yes/No Quantitative Is there a specific extractive revenue management law? Yes/No Quantitative Description Narrative URL link to legal framework if available Is there a separate investment committee for establishing an extractive revenues investment strategy? Yes/No Quantitative Are extractive revenue distributions allocated (within budgets) on a discretionary basis or through a specific Description Narrative legal framework? URL link to legal framework if available Is there a next generation/sovereign wealth fund for extractive revenue? Yes/No Quantitative If yes, is there a legal framework governing its administration? Description Narrative URL link to legal framework if available What is the current value of the Sovereign Wealth Fund (or equivalent)? US$ value / local currency Quantitative Report for the most recent five years Have there been any allocations (payments) or withdrawals from the fund over year? Yes/No Quantitative US$ value / local currency Better How are extractive revenues distributed between federal, district and local governments? % share of allocation Quantitative Is there a legal framework governing this distribution? Description URL link to legal framework if available Narrative Is information on the extractive revenue’s contribution to the government net wealth included in the budget Yes/No Quantitative document? Is information on the extractive revenues contribution to financing the budget deficit included in the budget Yes/No Quantitative document? Options for Data Reporting – EITI Standard, 2016 43 SECTION 5: REVENUE ALLOCATIONS continued TABLE 16 DATA OUTPUT FOR DISTRIBUTION OF REVENUES Category Information required Data format Is a long-term assessment of extractive revenues included in the budget document? Yes/No Quantitative Are there direct revenue payments to local communities? Yes/No Quantitative If yes, how is the level of payments determined? Description Narrative URL link to legal framework if available Best What is the value of allocation of revenue between the federal and regional governments US$ value / local currency Quantitative To what extent has this allocation been carried out? % of allocation that has been transferred Quantitative What share of total revenues received from the mine/firm go directly to local communities/government? % share of total revenues Quantitative US$ value / local currency How are the payments to local communities governed? (legal or contractual agreement) Description Narrative VISUALIZATION The data for distribution of revenues should reflect how the total extractive revenues received by the government filter through the rest of the economy. This can be done effectively by using a flow chart as illustrated in Figure 4. FIGURE 4 FLOW CHART ILLUSTRATING DISTRIBUTION OF REVENUES ($ VALUE OR LOCAL CURRENCY) Total revenues received State budget Federal budget Heritage budget Current Non-recurring Invested Invested Local district expenditure budget internationally domestically Social services Infrastructure Options for Data Reporting – EITI Standard, 2016 44 SECTION 6: SOCIAL AND ECONOMIC SPENDING 6.1 S OCIAL EXPENDITURES BY EXTRACTIVE COMPANIES Data output: Narrative The EITI Requirement 6.1 (required) is defined as follows: Reporting is required for this Requirement when a) W  here material social expenditures by companies are mandated by law and is expected largely in the narrative mandated by law or the contract with the government form. The criterion for what is to be included under this that governs the extractive investment, implementing heading is determined by the deliberations of the countries must disclose and, where possible, multi-stakeholder group and will therefore differ from reconcile these transactions. Where such benefits are country to country41. The recommendations for this provided in kind, it is required that implementing requirement are informed by the Global Reporting countries disclose the nature and the deemed value Initiatives’ sustainability reporting guidelines for of the in kind transaction. Where the beneficiary of companies in the extractive industries42. the mandated social expenditure is a third party, i.e. Good practice would be to document the avenues for not a government agency, it is required that the name contributions to social expenditures, focusing on the and function of the beneficiary be disclosed. Where processes that allocate funds/in-kind projects and the reconciliation is not feasible, countries should monitoring whether allocated funds/in-kind projects are provide unilateral company and/or government transferred/delivered as scheduled. disclosures of these transactions. Better practice could include data with regards to Where the multi-stakeholder group agrees that b)  extractive firm commitments with local communities. discretionary social expenditures and transfers are Table 17 is provided for illustration, to suggest ways of material, the multi-stakeholder group is encouraged generating data to support the narrative reporting for to develop a reporting process with a view to this Requirement. achieving transparency commensurate with the disclosure of other payments and revenue streams to government entities. Where reconciliation of key transactions is not possible, e.g., where company payments are in kind or to a non-governmental third 41 For additional information, please refer to EITI guidance note on party, the multi-stakeholder group may wish to social expenditures, found here: https://beta.eiti.org/standard/ agree an approach for voluntary unilateral company GN17 42 Detailed guidelines for mining, oil & gas sectors can be found at and/or government disclosures. www.globalreporting.org TABLE 17 DATA OUTPUT FOR REPORTING ON COMMUNITY PROJECTS Data category Information included Data format Good Extractive company Name and location Text Local communities Specify which communities are the recipients Narrative Commitment made Description of the nature of project/in-kind payment etc. that has been agreed Narrative Duration of investment The time schedule for the delivery of the agreed project and duration Quantitative Start and end date No of years Better/Best Investment Value of the project: Quantitative Can be based on the expenditure made by the extractive company • $ value/ local currency • In-kind payment Delivery Is the delivery on schedule? Narrative Have there been delays or disputes Post-delivery ownership Has an agreement been reached over the ownership and responsibility of upkeep of the project, once it has been Narrative delivered? Options for Data Reporting – EITI Standard, 2016 45 SECTION 6: SOCIAL AND ECONOMIC SPENDING continued 6.3 C ONTRIBUTION OF EXTRACTIVE INDUSTRIES TO For the value of the extractive sector, the following THE ECONOMY approaches can be considered. The EITI Requirement 6.3 (required) is defined as follows: International practices for measuring extractive Size of the extractive industries in absolute terms and a)  industries value as a percentage of GDP as well as an estimate of Three systems of extractive industry classification were informal sector activity, including but not necessarily reviewed; UNIDO’s International Standard Industrial limited to artisanal and small scale mining Classification (ISIC) of All Economic Activities (Rev 4)43, b) Total government revenues generated by the North American NIAC44 codes and the European Union’s extractive industries (including taxes, royalties, Nomenclature of Economic Activities (NACE)45. bonuses, fees and other payments) in absolute Following the NACE codes is considered a good terms and as a percentage of total government option, as these classifications are an output-based revenues criterion. This would require adding up the value of the Exports from the extractive industries in absolute c)  commodity production in the country as well as terms and as a percentage of total exports including estimates for missing values (i.e. where d) Employment in the extractive industries in absolute companies have not reported production). terms and as a percentage of total employment Gross Output by industry considers the output of the The data covered under this Requirement should sector without making allowances for input costs. Gross address how large the extractive sector is, in relation to output can be subdivided into: the rest of the economy, as well as its importance for •Oil and gas extraction employment and revenue to the government. Importance •Coal mining is differentiated separately, as the extractive sector may be smaller than other sectors, but is the primary source •Metal and mineral ore mining (large and small scale, of investment or formal employment. including gemstones) Recommendations are also provided for ways in which •Stone mining and quarrying the contribution of the informal sector, predominately Using the NIAC codes is considered as a better option, artisanal and small scale mining (ASM), could be as these classifications are an activity based criterion and captured in the EITI report. When considering how to focus on the Value Added by the extractive sector. These report the contribution of ASM to the economy, the MSG allow for a more comprehensive tracking of the contribution should consider proportionality in the level of effort to the economy. However, this requires capacity within the required and whether it is appropriate for the utility of national statistical centre to calculate and compile. the information collected. Value Added for both the mining and oil and gas Many of the recommendations under this EITI extraction includes: Requirement are based on developing a standardized •Compensation of employees format for presenting data that already exists in many of •Taxes on production and imports less subsidies the EITI Country Reports as well as incorporating other data that is publicly accessible via the internet. For the •Gross operating surplus data categories listed below, a distinction between good/ In addition, support activities for the extractive sector better/ best recommendations is not made, as these are should be considered: based on well-established statistics and reporting practices. •Drilling oil and gas wells •Support activities for oil and gas operators EXTRACTIVE INDUSTRIES VALUE AND PERCENTAGE •Support activities for coal mining SHARE OF GDP Data output: Quantitative •Support activities for metal mining This requires the value for GDP and the extractive •Support activities for non-metallic minerals industry. The GDP value can be taken from the World (excluding fuels) mining Bank World Development Indicators and is usually provided in US dollar format. Other international 43 http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=27 financial institutions, such as the IMF also provide 44 http://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012 this information in local currency for some countries. 45 http://ec.europa.eu/competition/mergers/cases/index/nace_all.html Options for Data Reporting – EITI Standard, 2016 46 SECTION 6: SOCIAL AND ECONOMIC SPENDING continued The best option recommended would be to use the IMF World Economic Outlook Database 47 and can be ISIC classification. This classification, which allows for used to calculate the contribution that extractive an international standard to be followed, has been in revenues makes to overall government revenues (Table operation since 2008. Conversion of ISIC codes into 1819). Trade codes is also readily available. The advantage of The disclosure of government revenues from ASM using an UN-based classification system allows for activity is an important step in understanding and cross-country comparisons and can benefit from the quantifying its contribution to the economy. Reconciled regular data collection activities of the government. revenue figures, like those produced for large scale The three data streams (ISIC, NIAC and NACE) have mining, can however be infeasible for ASM due to the their advantages and disadvantages and are mainly dispersed and small-scale nature of revenues ASM related to country capacity to collect such data. activity typically generates. Where possible, the Data for artisanal and small scale mining production government should disclose a unilateral declaration of is often difficult to obtain, as these tend to be largely the revenues received from ASM activity. informal and occasionally illegal operations46. One approach for determining production volume from ASM EXTRACTIVE INDUSTRIES AND EXPORTS is to assign the value of ‘un-accounted’ production to Data output: Quantitative artisanal and small scale mining. By subtracting the The data categories detail the contribution of the know production volume (from regulated and reported extractive industries to the country’s export portfolio. volumes by companies) from the total country exports, This includes total exports in goods and services the un-accounted production is assigned to artisanal (available from UNCTADStat48) and can be used to and small scale mining operations. This estimate is not calculate the size of the extractive industries exports as assumed to be accurate, as some artisanal production is a percentage of the total exports of the country. Where generally expected to ‘leak’ through smuggling. contributions from individual minerals/oil and gas is If, however, collecting quantitative data is not known, these can be shown separately as a share of feasible, an implementing country could initially focus exports (Table 18). on providing a descriptive overview of its ASM sector and the types of commodities that are known to be EXTRACTIVE INDUSTRIES AND EMPLOYMENT produced. Data output: Quantitative If possible, gross output from artisanal mining should These data categories are intended to detail the be included here. Reporting of gross output for artisanal employment created by the extractive industries within mining will differ amongst countries and by metals. the country. The International Standard Classification of For precious metals, such as gold, production figures Occupations (ISLO)49 can be used to standardize the are usually a combination of data reported by traders inclusion of employment data. and estimations. In other cases, the data may be purely Classifications that may be relevant to the extractive estimates. Either approach is acceptable as long as industries include ISCO 08 Codes 9311 and 1322 the EITI report chronicles clearly how these figures which correspond to mining and quarrying labourers and were reached. mining managers respectively. The ILOSTAT50 formats can be used as a source of total employment figures and EXTRACTIVE INDUSTRIES AND GOVERNMENT offers breakdowns by gender, occupation, education and REVENUES geographic coverage. These two indicators can be used Data output: Quantitative to calculate the level of employment in the extractive The data categories should quantitatively demonstrate industries as a percentage of employment in the country the importance of the extractive industries to the as a whole. country’s economy relative to other industries. Total These data recommendations do not apply to artisanal government revenue is available as an indicator in the and small scale mining (ASM) employment. Given that 47 https://www.imf.org/external/pubs/ft/weo/2014/02/weodata/index.aspx For additional information, please refer to EITI guidance notes, 46 48 http://unctadstat.unctad.org/CountryProfile/home/Indexen.html found here: https://eiti.org/guidance-notes-and-standard-terms- 49 http://www.ilo.org/public/english/bureau/stat/isco/index.htm reference 50 http://www.ilo.org/ilostat Options for Data Reporting – EITI Standard, 2016 47 SECTION 6: SOCIAL AND ECONOMIC SPENDING continued such activity is often informal and illegal in nature, it mineral being mined and the general access of such can be resource and time intensive to accurately capture miners to technology (for example panning for gold or ASM employment figures. Estimations can be used; dredging rivers). however the EITI report must clearly state how these Once an estimate is formed of the per capita estimates were reached. production potential, the total volume assigned to There are two ways in which an estimation for ASM artisanal and small scale mining is then used to employment figures can be generated. estimate the number of artisanal miners in the country. The first method requires the volume of un-accounted This is a rough estimate at best, but has very little cost. production attributed to ASM activity (see Requirements 3.2 and 3.3). Given the volume of un-accounted The second alternative is to perform base line surveys; production, the labour required to produce said investigate the regions where artisanal miners are likely production is then estimated. This estimate will differ to be found and tally workers. This can be a costly by country; given the ease or difficulty of its geology, the exercise. When the status of artisanal miners may be geographical accessibility to possible artisanal mining illegal, or not clearly defined within the law, there will locations to the general population, the nature of the be operational challenges in carrying out such a survey. TABLE 18 CONTRIBUTION OF EXTRACTIVE INDUSTRIES TO THE ECONOMY Category Source Detail/definition Data format Data type Extractive industries value and percentage share of GDP Production value Gov. Production volume x price per unit US$/LC Quantitative GDP WB GDP (current US$)/ Local currency US$/LC Quantitative Extractive revenues (% GDP) WB, Gov. Extractive government revenue as a percentage of GDP % Quantitative Government revenues Extractive government revenue Gov. Government revenues from the extractive industries US$ Quantitative Total government revenue IMF Government revenues from all sources US$ Quantitative Extractive revenues (% total government Gov. Extractive government revenue as a percentage of total government revenue % Quantitative revenues) Extractive industries and exports Extractive exports UNCTAD Total exports from the extractive industries US$ Quantitative Total exports in goods and services UNCTAD Total exports from all industries US$ Quantitative Extractive exports (% total exports) UNCTAD Total extractive industries exports as a percentage of total exports from all industries % Quantitative Extractive industries and employment Employment in the extractive industries ISCO Measure the number of people in the extractive industries using the ISCO occupations As a number Quantitative classifications* Total employment ILO The total number of people recognized as employed by the ILO As a number Quantitative Employment in the extractive industries Gov. Extractive Industries employment as a percentage of total employment % Quantitative (% of total employment) * http://www.ilo.org/public/english/bureau/stat/isco/index.htm Options for Data Reporting – EITI Standard, 2016 48 SECTION 6: SOCIAL AND ECONOMIC SPENDING continued VISUALIZATION For visualizing government revenues data, extractive Clustered bar charts can be used to visualize the data government revenue and total government revenue should be clustered. relating to the extractive industries percentage share of GDP, government revenues and exports. Finally, for presenting extractive industries and exports data, extractive exports and total exports in goods and In the instance of extractive industries and the services should be clustered. percentage share of GDP, a clustered bar chart should Extractive industries and employment data does not be produced that clusters extractive government revenue lend itself to this form of visualization and should and GDP. instead be presented in a tabular format. FIGURE 5 VISUALIZATION OF CONTRIBUTION TO ECONOMY DATA Extractive industries and government revenues - Ghana 8 7 6 5 Billions (US$) 4 3 2 1 0 2009 2010 2011 2012 2013 Extractive government revenue (US$) Total government revenue (US$) Source: Based on data from NRGI ‘Unlocking EITI Data for Meaningful Reform’ database (2015) Options for Data Reporting – EITI Standard, 2016 49 SECTION 7: OUTCOMES AND IMPACT 7.2 DATA ACCESSIBILITY The function of the content management system is to be The EITI Requirement 7.2 (encouraged) is defined as able to display this information in whatever format is follows: chosen. Any user interface will have a content The multi-stakeholder group is encouraged to make management system working behind to support the EITI Reports machine readable, and to code or tag EITI information that is being displayed. Reports and data files so that the information can be The entire process can then be understood, for compared with other publicly available data by adopting example, as taking a Word document, converting it into Board-approved EITI data standards. a machine readable format, allowing the information Machine readable or coded/tag data refers to the stored within the document to go through a data submission of EITI data in formats that can be easily exchange standard, which will allow a multitude of processed through the use of technology, rather than a other programs to access and publish the information manual approach. The basic process of data access is contained. A detailed description of how to develop presented, in Table 19. data access options is available in section three of the February, 2016 version of this report, available from TABLE 19 STEPS IN DEVELOPING DATA ACCESS the World Bank open knowledge repository51. Product Characteristic Determined by EITI reporting is currently at the first stage of the process 1 Report (data/ Non-automated analysis Word, Excel, Pdf illustrated in Table 19, i.e. as PDFs and Excel sheets. The narrative) next step would be to ‘upgrade’ these reports into machine 2 Machine readable Structured for computational Reporting languages based readable formats. The following factors should be document processing considered for choosing a machine readable format: 3 Data exchange Incoming data is restructured Responds to/ determined by •The reporting language must be in wide usage and to conform to outgoing data reporting languages easy/free to access. 4 Content Programming that allows for Uses incoming information, •The language format must be easy to use and not management publishing, editing and stores and redeploys it, systems modification of data stored in usually to provide a user require extensive training and capacity for the its repository interface. formatter. •The reporting language must allow for simple and The first stage is a simple document/file that can be complex tagging, so more complex information can processed by commonly used computer software be formatted over time. programs, such as Microsoft Office etc. These files are easy to produce and upload, and are meant for human •Languages already commonly in use would offer the consumption, i.e. the ability for machines to read these advantage of having a tagging/label list ready, that products are limited. can be used/modified for EITI purposes. Such files can be converted into machine readable •The language must be supported further down the documents, i.e. computers can process the data access chain, i.e. data exchange standards etc. (whether narrative or otherwise) contained, as these are should be able to use the language. structured (coded) for processing. There are a number of •The language must not be exclusive, i.e., once ‘reporting languages’ that can be used to construct coded the information must be usable by a machine readable documents. Machine readable multitude of computer programs rather than documents can be opened by common programs such as restricted to a few platforms. Microsoft Office. The languages available for machine readable formats Machine readable documents can then be used as include XML and XBRL. These languages are for ‘incoming information’ into data exchanges, which will guidance only and should not be considered as have the capacity to take these documents and convert recommendations by either the EITI or World Bank. the contained information into ‘outgoing’ information. Extensible Mark-up Language (XML): This is the most As the name suggests, these programs function as an commonly used reporting language, that allows for exchange for incoming and outgoing information. encoding documents, by a set of rules, which has the This outgoing information can then be picked up by content management systems, which can act as http://www-wds.worldbank.org/external/default/WDSContentServer/ 51 a repository and/or stream data from other sources. WDSP/CTR/2016/02/25/090224b0841b02d1/2_0/Rendered/PDF/ Options0for0Ex00better0and0the0best.pdf Options for Data Reporting – EITI Standard, 2016 50 SECTION 7: OUTCOMES AND IMPACT continued advantage of being both machine and human readable. formats, so that the information can be easily The language was primarily designed to describe data transmitted between data exchanges and content and not so much to display data. Describing data refers management systems. to XMLs ability to tag data, allowing users to define their Universal participation refers to no distinction being own tags and document structure. made amongst the users of the information or the areas XML is freely available and can be read by a large where such information can be used. For example, number of programs, particularly websites, as well as distinction between ‘commercial’ and ‘non-commercial’ applicable programming interfaces (APIs). use cannot be enforced on the use of the data. Extensible Business Reporting Language (XBRL): XBRL is an XML-based vocabulary for electronic Providing Open Data transmission of business and financial data, which Open data in its simplest form is about creating access. builds further on the qualities and capabilities of XML This can be achieved through providing a data portal, reporting languages. XBRL is freely available, used by allowing access to all published information, such as a multitude of institutions and is used by a large government ministries, departments, companies and number of platforms. It is considered effective reporting other stakeholders. language as it list used by a large range of users. In some cases, such as Ukraine, more dedicated The advantage of using XBRL over XML, is that it portals are being created to provide information for allows for multiple relationships to be tagged. For extractive specific data53. In other cases, such as the example in XML an entry can only be tagged once, and United Kingdom, a country wide open data access it cannot be made clear that the latter is a subheading policy54 is being practiced, including information for the of the former. XBRL allows for such relationships to be extractive sector. The United Kingdom has been one of specified, with double or more tagging allowed. the leading countries championing open government data. As one of the founding members of the Open OPEN DATA POLICY Government Partnership, the UK has made considerable The second measure to increase access to data is progress in the development of open data, including in through an Open Data Policy, to assist in the public the extractives industry. The UK Open Government understanding of government revenues and expenditures Network55 (OGN) was established by civil society over time. stakeholders in 2011 and is intended to provide the government with draft recommendations outlining areas Open data or open content is defined as “data and where it should improve its openness, accountability content [that] can be freely used, modified, and shared and transparency. In the field of natural resource by anyone for any purpose”52. It has three components; transparency, this has included a commitment that the availability and access, reuse and redistribution and government requires UK listed extractive companies to universal participation. publish data under the EU transparency amending Availability and access refers to making data available, directive in an open and accessible format by March at a reasonable reproduction cost if necessary. Access is 201856. normally granted via the internet. In addition to making The Natural Resource Governance Institute’s the data available, it should be presented in a manner Unlocking EITI Data for Meaningful Reform dataset57 is allowing for ease of use. For example, while making pdf also an example of effectively presenting EITI data. documents available on line can fulfil one criterion for NRGI collected data from 223 existing EITI reports availability, if these documents are not clearly titled or published by 37 countries before February 2015 and organized by content, it hampers the ability of using this, as well as other data that is publicly stakeholders to access the information contained. Reuse and redistribution refers to providing the data 53 Such as the register on politically exposed persons (http://pep.org. under a license or terms that allows users to freely reuse ua/en/) and open government tool (http://data.gov.ua/) and redistribute the data, without requiring copy right or 54 https://www.gov.uk/service-manual/technology/open-data.html reproduction permission. Reuse is also facilitated by 55 http://www.opengovernment.org.uk/ 56 http://www.opengovpartnership.org/sites/default/files/UK%20 making this information available in machine readable Open%20Government%20National%20Action%20Plan%202016- 18.pdf 57 http://www.resourcegovernance.org/sites/default/files/nrgi_EITIData- http://opendefinition.org/ 52 set_20150608.xlsx Options for Data Reporting – EITI Standard, 2016 51 SECTION 7: OUTCOMES AND IMPACT continued accessible on the internet, developed indicators, such  ngage with intended end-consumers of the data 2. E as extractive exports as a percentage of total exports, from the very beginning of the process. The users which demonstrate the contribution that the extractive may be citizens or other organisations (such as industries have on a country’s economy. NRGI extracted research institutions) that will analyse and this data from the published Country Reports and redistribute the information. Such engagement presented it in both a country-level and project-level should explore the types of questions that end- data format. This project demonstrated the vast users will want to answer using the data. This can amounts of data that has already been disclosed in the inform the data to be prioritised, its format for existing EITI reports, and in do so, highlighted the release, and what tools should be incorporated for importance of standardizing data reporting practices in possible visualization of the data. order to facilitate deeper and more meaningful. It would also be beneficial to articulate to data 3.  providers the importance of open data, why the Creating Open Data information is being made available and the At the government level, creating open data sets can be purpose it serves. Making information available challenging and will depend on government resources freely, while encouraging transparency, may make and IT structures as well as where data is being providers of such information uncomfortable. This currently held. For example, Papua New Guinea stores hesitation may not necessarily be related to issues data manually across departments at the national and of corruption etc., but the change in tradition sub-national level, and therefore collecting this data in where information was previously kept closely the first instance will be challenging in itself. Given guarded. differing capabilities across governments and other The Open Data Handbook, a guide set up by Open stakeholders, Tim Berners Lee (the founder of the Knowledge International, provides assistance with the internet), provides a useful set of practices that can be legal, social and technical challenges of developing implemented together to create open data, accessible open data58. The handbook advocates the following via the internet, under an open license. steps in producing data open: The first step is to provide information, in any format Choose the dataset: decide on the data set to be 1.  that is available. Each successive step thereafter made available. provides a more accessible format for open data, such as in Excel files, progressing to CSV files and finally to Apply an open license: determine the intellectual 2.  on-line navigation through web portals etc: property rights that may exist in the data, and apply a license that grants open access, reuse and à Provide data in whatever format is available (Pdf, redistribution rights to users. If there is confidential word, scanned figures) information contained in the chosen data set, it à Provide data in a structured format (such as in may be removed at this time. Excel files) Make the data available: depending on the data 3.  à Provide data in non-proprietary formats (use CSV format available, the data can be provided on line files instead of Excel) as a bulk download or in a more sophisticated à Provide information through URI (allows on line format. usability, rather than just download functions) Make the data discoverable: Develop a central 4.  à Provide information through on-line navigation platform that enables greater access to the data (allows on line usability and interaction with other and communicate with potential users and other data resources). stakeholders that the data is now available online. Acknowledging that the creation and operation of an open data portal can be a considerably challenging task CASE STUDY - REVENUE DEVELOPMENT FOUNDATION for some governments, and will require assistance, the In context of data access options, the RDF model offers following principles can be considered in the creation of some interesting considerations. The technical focus of a portal: the project is to manage both incoming and outgoing 1.  The entire data set does not need to be made data on revenues and income. The scope of the initiative available in the same instance; this can be managed by releasing one data set at a time. http://opendatahandbook.org/guide/en/how-to-open-up-data/ 58 Options for Data Reporting – EITI Standard, 2016 52 SECTION 7: OUTCOMES AND IMPACT continued is much larger than just the extractive sector, while the because it avoids the need to wait for templates to be list of countries covered is still small; Cameroon, filled out by stakeholders and information to be put- Liberia, Ghana, Mali, Sierra Leone and Zambia. Malawi together by different government departments. is the only country that the initiative covers that does Second, the systems allow for different government not overlap with the EITI. departments to exchange information. That allows The system works on three principles. First, the focus is information for a diverse range of categories (tax, to have revenue (and other) data generated by the system production, exports) to be linked for a single entity, itself and not collected at a later date (as would happen such as a mining company. with EITI reconciliation). For example when a license Third, coupled with geospatial data, the presentation of application is granted, the aim is to input the information this information is easy to visualize and is user friendly. into the system itself. Second, information is updated on The disadvantages are centred on capacity and cost. a regular basis, allowing for up-to-date information to be A substantial amount of training and effort is required to available on a weekly basis. The system is cloud based set up the system in the first place, with RDF specialists and information from servers in different countries is embedded with the client for a two-year period. There uploaded weekly to the central repository. Third, the are a number of systems that require to be installed, in visualization allows for a number of different data streams various government departments, to coordinate this data. to be interlinked, i.e. one entity can be tracked over a range of indicators such as license details and tax revenue. At this time, RDF is concentrating on government reporting, and is not focusing on company reporting, RDF uses the Mining Cadastre Administration System which is an essential component of EITI. Companies (MCAS), which is a web-based software, available free could be required to submit information in XML-based of cost. MCAS uses XML, and is able to receive languages so that they are comparable to RDF based information in that format. On spatial data, RDF is using systems. GeoServer servers, which includes ESRI, ArcGIS shape files for data exchange. Lastly, the number of countries where RDF is operational is limited at this time. The ease of cross RDx, developed by the foundation will become an country comparison is not clear, but there is space for open source format for transfer of spatial data along tracking historical changes for a single country. with data related to revenues, payments, etc. Initial usage will be for making data available from government The scope of the RDF systems is much larger than portals (Mining Cadastre Administration Systems) which resource revenue data, and it upgrades the capacity of other will be able to use via an API. The exchange the entire government, rather than one particular sector. currently uses XML, and is shared via a zipped file. The This would be very useful in extracting contextual file has two section; definitions of classes (configurable information about the economy and the relevant parameters) and the data itself. performance of the extractive sector in relation to other sectors. An uptake by a larger number of countries would RDF suggests that using a data integration system allow for data required for EITI standards to be available approach would be a useful exercise. An integration on similar formats, from a number of countries. system works on the principle that differing data streams, (such as license and revenue) can be condensed within RDF languages, data exchanges and content the same system. Data exchanges rely on the ability of management systems work well as they are being incoming information to be stored and then presented as organized by a single entity for a number of different outgoing information and there are likely to be pre- countries. This allows for consistency across the requisites on what reporting languages can be used. A different countries. The fundamental advantage of the data integration approach focuses on allowing differing system comes from managing the data input stage. third party systems to use the same data stream. RDF Data is standardized from the very start, and therefore suggests that recommending one set of systems may be each successive transfer of the data file up the access disadvantageous, while evolving to a shared system would chain, maintains its integrity. be more useful. However, this process of evolution will be a slow process and will take time (in years). There are three advantages of the RDF systems. First, it manages data at source, therefore the data will tend to be more up-to-date and generated quickly. This is Options for Data Reporting – EITI Standard, 2016 53 SECTION 8: CONCLUSION continued The objective of this report was to present, in structured EITI Secretariat move forward in the data standardization form, data categories pertinent to EITI Reports and their exercise, the research team strongly emphasis the need reporting formats that can be used to standardize to consider the user interfaces at an earlier rather than information generated under EITI Requirements. These later stage in the process. This will also allow for data recommendations should be considered as a access issues to be addressed in a more structured form. contribution in the efforts towards standardizing data The eventual user interface and how it interacts with disclosure under EITI Requirements, and need to be other extractive transparency portals, will also impact tested with future EITI reporting to identify issues with how data is collected under various data categories data collection under the headings as categorized in this outlined in this report. report. In December (2015) the EITI Board decided to Third, we would encourage the EITI International form a Technical Working Group to develop data Secretariat and/or the World Bank to take on the standards for consideration by the EITI Board. responsibility of providing information to be included The research team would recommend a step by step under some of the data categories, such as sponsoring approach to this, starting with a specific set of EITI international benchmark prices, macro-economic Requirements, across a number of countries. This will indicators such as GDP, total employment, total exports/ allow the EITI secretariat to develop a set of comparable imports etc. statistics for various reporting entities, as well as start Within licensing, the report has found a number of constructing guidelines for EITI implementers. cadastre projects are supported/funded by the World The following EITI Requirements are recommended Bank in developing countries. As noted, FlexiCadastare for the first phase of this exercise, as the research team systems tend to disallow the downloading of spatial considers these to be the core of an EITI Country data. An agreement may be reached with the service Report. Also, given the review of EITI reports, we believe providers to allow such access to the EITI International these will be the easiest to standardize, as the most Secretariat or country office as appropriate. consistent data tends to be collected in these categories Fourth, the research team would caution against the across Country Reports. These figures are more likely to development of a ‘big data’ approach, where large lend themselves to cross-country comparisons, such as; amounts of information are generated/collected without • Overview of extractive industries the tools to organizing and present this information. • Contribution of extractive industries to the economy Given the slow access to internet facilities for some countries, access for country stakeholders may become • Production and exports more cumbersome if data is made available without • Revenue streams. accompanying tools for ease of use. Within this exercise, the data collection methods and process should be given special emphasis, so not only are the data categories standardized, but also the methodology for collecting/collating this information. The exercise should focus on taking information in the public domain (such as Annual Report and International Exchange filings) and creating equivalence with EITI data categories. The eventual outcome would be the development of EITI reporting forms that implementers and MSGs can consider using for their Country Report preparations. In the next phase, data on Legal and Fiscal context, and Licensing data should be consolidated. The third phase can focus on the remaining EITI Requirements, as they tend to be more complex and country specific. Second, we consider data collection and its formats to be fundamentally linked to how this data will be presented; the user interface. As the World Bank and Options for Data Reporting – EITI Standard, 2016 54 ANNEX I – COMPARATIVE INITIATIVES METHODOLOGY Three further variables have been added to Table 20 This section outlines the methodology adopted to review to add greater detail to the nature of data outputs being the data outputs published by other initiatives relevant produced by these initiatives. The first of these variables to the EITI. Table 20 outlines the indicators and the indicates the spread of data being covered by these nature of data outputs publicly available on these initiatives, outlining the number of countries covered by initiatives websites. It is important to note that many of the data and, in instance of governmental initiatives, these initiatives monitor various other indicators and what entities the disclosure requirements apply to. The that Table 20 addresses only the indicators they cover second variable details how interactive the data is, that are relevant to the EITI. including whether any visualization is available on the This information was obtained by examining an website. The final variable highlights how frequently initiatives website and observing whether they have these initiatives update the data on their website in published data that covers/relates to any of the seven relation to the key indicators relevant to the EITI. key EITI Requirements: Fiscal regime (2.1a), Legal framework (2.1.a+b), Register and Licence allocations (2.2 & 2.3), Contracts (2.4), Production and exports (3.2 & 3.3), Revenue streams (4.1 – 4.6) and Contribution of extractives industries to the economy (6.3). These indicators were then categorized based on the nature of the data outputs into: • narrative (QL), • quantitative (QT) • indexed (A) data. Narrative data is defined as text, predominately in the form of annual reports, contracts and factsheets. Quantitative data is data points, either numeric (production volumes) or text (categorical survey data), often in the form of downloadable datasets or interactive visualizations. Indexed data is where an initiative has analysed multiple data points to create a measurement relevant to the chosen indicator. These indexes are often presented in the form of an interactive visualization and may also include a downloadable dataset. If an initiative has published multiple data types relevant to a particular indicator, all are listed and the predominant type is listed in bold font. There are two initiatives (Dodd-Frank 1504 and EU Accounting Directive) listed in Table 20 which have indicated the types of data they will cover but have not yet begun publishing this data. For these initiatives, the types of data they will cover have been noted in Table 20 and the reason for not publishing yet is also detailed. In instances where an initiative has no relevant data to the EITI’s key indicators, the reason has also been noted in Table 20. Options for Data Reporting – EITI Standard, 2016 55 ANNEX I – COMPARATIVE INITIATIVES continued TABLE 20 DATA COVERED BY INITIATIVES RELEVANT TO THE EITI 2.1 a 2.1 a+b 2.2 + 2.3 2.4 3.2 + 3.3 4.1 – 4.6 6.3 Spread of data Presentation/ Visualization of data How frequently they are updated Reason for no data A Good Deal Better – Global Witness QL QL QL QL, QT QT QL, QT QT, QL Country specific; Uganda Interactive visualizations One off report - produced in 2014 Link: http://www.globalwitness.org/ Dodd-Frank 1504 QL QL QL QL, QT Disclosure requirements will apply to all US Interactive data Disclosures must be provided in an interactive data format In June 2016, the SEC announced that it has officially adopted Section (No data currently released, these are the expected data types) and foreign private issuers (including those with an annual report, the Commission must then make a 1504. Resource extraction issuers are required to comply with the rules Link: http://www.sec.gov/spotlight/dodd-frank/speccorpdisclosure.shtml that are government owned) that operate in compilation of the information available online starting with their fiscal year ending no earlier than September 30, 2018. the extractive industries EI Source Book List of other transparency related sources - appears to not have any relevant Link: http://www.eisourcebook.org/initiatives/initiative.php?id=41 published raw data of its own EU Accounting Directive QL QL QL QL, QT The disclosure requirement will apply to large Reporting will depend on implementation by each Disclosures will be required on an annual basis - how these The Directive has now been agreed and member states are in the process of (No data currently released, these are the expected data types) undertakings and public interest entities Member State disclosures will be published will depend on implementation deciding their implementation processes. The UK was the first to develop its Link: http://ec.europa.eu/finance/securities/transparency/index_en.htm by each Member State implementation plan and the first disclosures will relate to financial years commencing on or after 1 January 2015. Global Reporting Initiative Produces a database of sustainability reports - no relevant raw data Link: http://www.globalreporting.org/ Guinee Contracts Miniers QL QL QL Country specific; Guinea All data presented in contracts published as 83 reports and contracts have been published dating from Link: http://www.contratsminiersguinee.org/ images, as a result, content is not searchable 1958 to present Index of Economic Freedom A A The index covers the world with only a few Interactive visualizations Published annually by The Heritage Foundation Link: http://www.heritage.org/index countries not having any data, e.g. South Sudan Kimberly Process QL QL QT, QL QL QT Data from 81 countries (participants in the Data is presented with the annual report, content An annual report is published on the Kimberly Process Link: http://www.kimberleyprocess.com/ Kimberly Process) is searchable website by each participating country Resource Governance Index A, QT, QL A, QT, QL QT QT QT QT QT Data from 58 countries (most of the biggest Interactive visualizations, country profiles and Annual report and accompanying data published on the Link: http://www.resourcegovernance.org/rgi countries in the extractive industries) downloadable dataset Natural Resource Governance Institute website Open Budget Survey A, QT Data from 100 countries Interactive visualizations, country profiles and Biennial reports published on the International Budget Link: http://www.internationalbudget.org/what-we-do/open-budget-survey downloadable dataset Partnership website from 2006 to 2012. The 2014 report has yet to be realized but an update to the data has been published. Open Budget Survey tracker A, QT Data from 100 countries Interactive visualizations, country profiles and The data is updated monthly Link: http://www.obstracker.org/ downloadable dataset Open Contracting List of government contract repositories - no relevant raw data Link: http://www.open-contracting.org/ Open Government Partnership QL Data from 65 countries (participants in the Downloadable open data Biannual independent progress reports published on the Link: http://www.opengovpartnership.org/ Open Government Partnership) Open Government Partnership website Open Oil QL QT QT QT QT QT Data from 72 countries, with a detailed case Interactive visualizations and downloadable The contract repository is updated annually. The Nigeria case Link: http://www.openoil.net/ study of Nigeria dataset study is their first country case study and is still ongoing Publish What You Pay QL QL QL QL, QT QL, QT Data from 35 countries All data presented in reports and factsheets One off reports realized based on research agenda Link: http://www.publishwhatyoupay.org/ Resource Contracts QL QL QL Data from 58 countries (most of the biggest All data presented in reports and contracts Multiple reports and contracts that have been disclosed by Link: http://www.resourcecontracts.org/ countries in the Extractive industries) participating countries between 1958 to present have been published on the Resource Contracts website Resource Projects QL QT QL Data from 58 countries (most of the biggest All data presented in project reports Multiple project reports disclosed by participating countries Link: http://www.resourceprojects.org/ countries in the Extractive industries) from 1958 to present will be published on the Resource Projects website Revenue Development Foundation Has a management tool for governments - Does not publish raw data itself Link: http://www.revenuedevelopment.org/ Sierra Leone QL QL QL QL, QT QL Link: http://www.sierraleone.revenuesystems.org/ Transparency Initiative QL QL Data from 7 countries for the extractive All data presented in reports and factsheets One off reports realized based on research agenda Link: http://www.transparency-initiative.org/ industries Transparency International A QT Global coverage Interactive visualizations, country profiles and The data and analysis are published annually on the Link: http://www.transparency.org/ downloadable dataset Transparency International website UN Global Compact List of companies that are part of the initiative, no relevant raw data Link: http://www.unglobalcompact.org/ World Justice Project – Rule of Law Index A Data from 102 countries Interactive visualizations, country profiles and Annual report and accompanying data published on the Link: http://www.worldjusticeproject.org/ downloadable dataset World Justice Report website Options for Data Reporting – EITI Standard, 2016 56 Options for Data Reporting – EITI Standard, 2016 57 ANNEX II – MINING CADASTRE PORTALS TABLE 21 COUNTRY COMPARISON OF FLEXICADASTRE DATA Active licenses and Mineral license commodity category Date applied (DD/  MM/ Date granted Date expires (DD/ MM/ District applications are in Other information layers able (indicated by colour and a description) Code Type Holder name YYYY) (DD/ MM/YYYY) YYYY) Commodities Area measure name 2 separate layers to be displayed Botswana Precious stones; energy; industrial; petroleum ✗ ✗ ✗ ✗ ✗ Square km ✗ 1. Administration Link: http://portals.flexicadastre.com/botswana/ 2. Farms 3. Satellite Imagery DRC 13 polygon types including applications, reserved zones and restricted ✗ X ✗ ✗ ✗ ✗ ✗ Square km Link: http://portals.flexicadastre.com/drc/en/ areas Kenya Exclusive and special prospecting leases; mining leases; location leases ✗ X ✗ ✗ ✗ ✗ ✗ Square km ✗ 1. Administration Link: http://map.miningcadastre.go.ke/map/ 2. Geology 3. Mineral occurrences Namibia 6 types of Active Licenses; Applications ✗ ✗ ✗ ✗ ✗ ✗ ✗ Ha ✗ 1. Hydrocarbon Licenses Link: http://portals.flexicadastre.com/Namibia/ 2. Administration 3. Farms 4. Geology 5. Mineral Occurrences 6. Satellite Imagery Mozambique Several license types, reserved areas, hydrocarbons, conservation areas ✗ ✗ ✗ ✗ ✗ ✗ ✗ Ha Link: http://portals.flexicadastre.com/mozambique/ Papua New Guinea Several active license types, applications, reserved areas, protected areas ✗ ✗ ✗ ✗ ✗ Number of sub blocks Link: http://portal.mra.gov.pg/Map/ Rwanda Mining licenses; quarry licenses; prospecting licenses, exploration licenses ✗ ✗ ✗ ✗ ✗ ✗ ✗ Ha ✗ 1. Administration Link: http://portals.flexicadastre.com/rwanda/ 2. Mine Sites South Sudan Large and small scale mining licenses, reconnaissance licenses, ✗ ✗ ✗ ✗ ✗ ✗ ✗ Cadastral units ✗ 1. Oil Concessions Link: http://portals.flexicadastre.com/southsudan/ exploration licenses; applications 2. Administration 3. Geology 4. Satellite Imagery Uganda 4 active license types; applications ✗ ✗ ✗ ✗ ✗ ✗ ✗ Square km ✗ 1. Administration Link: http://portals.flexicadastre.com/uganda/ (protected Areas 2. Satellite Imagery Tanzania 6 active license types; applications ✗ ✗ ✗ ✗ ✗ ✗ ✗ Square km ✗ 1. Administration Link: http://portal.mem.go.tz/map/ 2. Geophysics 3. Geology 4. ASM Centres 5. Mineral Occurrences 6. Mines 7.Satellite Imagery Options for Data Reporting – EITI Standard, 2016 58 Options for Data Reporting – EITI Standard, 2016 59 ANNEX III – PRODUCTION DATA Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Alloying Metals Antimony % tonnes $/tonne US$/tonne USGS 1.00 68993 Antimony/articles/waste Ferrotitanium % tonnes $/tonne (HS 2002) - 720291 Ferrotitanium and ferrosilicotitanium Ferrotungsten % tonnes $/tonne Ferro-tungsten, basis 75% UNCTAD - Stat (HS 2002) - 720280 Ferrotungsten and W, Rotterdam, duty unpaid, ferrosilicotungsten in warehouse ($/kg) Ferrovanadium % tonnes $/tonne 720292 Ferrovanadium Tantalum ppm tonnes $/tonne US$/lb USGS 1.00 68913 Tantalum unwrought/waste Titanium % tonnes $/tonne US$/tonne USGS fob 1.00 28783 Titanium ore/concentrate Australia Titanium Sponge N/A tonnes $/tonne 68983 Titanium unwrought/waste Tungsten % tonnes $/tonne Tungsten ore, minimum UNCTAD - Stat 0.6 28792 Tungsten ore/concentrate content of Wo3 65%, CIF Europe ($/mtu Wo3) Vanadium % tonnes $/tonne US$/lb USGS 0.83 68997 Vanadium/articles/waste Base Metals Cobalt % tonnes $/tonne US$/lb USGS 0.33 28793 Cobalt ore/concentrate Copper % tonnes $/tonne Copper, grade A cathode, IMF 0.77 283 Copper ores/concentrates LME spot price, CIF European ports Ferromolybdenum % tonnes $/tonne (HS 2002) - 720270 Ferromolybdenum Ferronickel % tonnes $/tonne (HS 2002) - 720260 Ferronickel Lead % tonnes $/tonne Lead, 99.97% pure, LME IMF 0.77 2874 Lead ores/concentrates spot price, CIF European Ports Molybdenum % tonnes $/tonne US$/kg USGS 1.00 28781 Molybdenum ore, roasted Nickel % tonnes $/tonne Nickel, melting grade, LME IMF 0.7 284 Nickel ores/concs/etc. spot price, CIF European ports Nickel Pig Iron % tonnes $/tonne Tin % tonnes $/tonne Tin, standard grade, LME IMF 1.00 2876 Tin ores/concentrates spot price, US$ per metric ton Zinc % tonnes $/tonne Zinc, high grade 98% pure, IMF 0.63 2875 Zinc ores/concentrates US$ per metric ton Zinc-Lead % tonnes $/tonne Bauxite-Aluminium Alumina % tonnes $/tonne 2852 Alumina(aluminium oxide) Aluminium % tonnes $/tonne Aluminium, 99.5% IMF 285 Aluminium ores/concs/etc. minimum purity, LME spot price, CIF UK ports, US$ per metric ton Bauxite % tonnes $/tonne US$/tonne USGS 1.00 (SITC Rev 1) -2833 Bauxite and concentrates of aluminium Options for Data Reporting – EITI Standard, 2016 60 ANNEX III – PRODUCTION DATA continued Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Bulk Commodities Aggregates N/A tonnes $/tonne (SITC Rev 4) - 2734 Pebbles, gravel, broken/ crushed stone, of a kind commonly used for concrete aggregates, for road metalling/for railway/other ballast, shingle & flint, whether/not heat-treated; macadam of slag, dross/ similar industrial waste, whether or not incorporated Coke % tonnes $/tonne 325 Coke/semi-coke/retort c Ferromanganese % tonnes $/tonne (SITC Rev 4) -67141 Ferromanganese containing by weight > 2% of carbon Hematite % tonnes $/tonne Iron % tonnes $/tonne 676 Iron/steel bars/rods/etc Iron Ore % tonnes $/tonne China import Iron Ore Fines IMF 1.00 281 Iron ore/concentrates 62% FE spot (CFR Tianjin port) Magnetite % tonnes $/tonne 6714 Ferro-manganese Manganese % tonnes $/tonne US$/tonne Metal Bulletin 1.00 2877 Manganese ore/conc. Manganese Ore % tonnes $/tonne Manganese 99.7% UNCTAD - Stat 2877 Manganese ore/conc. electrolytic manganese flake, free market, in warehouse Metallurgical/Coking N/A tonnes $/tonne Coal Quarried products N/A tonnes $/tonne 2731 Gravel/crushed stone/etc. Sandstone N/A tonnes $/tonne 27313 Granite/sandstone/etc Silicomanganese % tonnes $/tonne (HS 2002) - 720230 Ferrosilicomanganese Steel N/A tonnes $/tonne 675 Flat rolled alloy steel Bulk/Energy Bituminous coal N/A tonnes $/tonne 270112 Bituminous coal brown coal N/A tonnes $/tonne Coal N/A tonnes $/tonne Australian thermal coal, IMF 32 Coal/coke/briquettes 12,000- btu/pound, less than 1% sulfur, 14% ash, FOB Newcastle/Port Kembla coked coal N/A tonnes $/tonne 325 Coke/semicoke/retort c concentrated coking N/A tonnes $/tonne 325 Coke/semicoke/retort c coal Fossil coal N/A tonnes $/tonne 32 Coal/coke/briquettes semi-coked coal N/A tonnes $/tonne 325 Coke/semicoke/retort c Options for Data Reporting – EITI Standard, 2016 61 ANNEX III – PRODUCTION DATA continued Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Chromite Group Chromite % tonnes $/tonne US$/tonne USGS 681591 Containing magnesite, dolomite or chromite Ferrochrome % tonnes $/tonne Energy Thermal Coal N/A tonnes $/tonne 32 Coal/coke/briquettes Uranium (U3O8) % lbs. $/lb Uranium, NUEXCO, IMF 286 Uranium/thorium ore/conc Restricted Price, Nuexco exchange spot Fertilizers Ammonium Sulfate % tonnes $/tonne Phosphate % tonnes $/tonne Phosphate rock, Khouribga, UNCTAD - Stat 1.00 2723 Natural phosphates 70% BPL, contract, FAS Casablanca Potash % tonnes $/tonne US$/tonne USGS 1.00 Potassium Chloride % tonnes $/tonne 56231 Potassium chloride fert. Potassium Nitrate % tonnes $/tonne 52352 Potassium nitrate Potassium Oxide % tonnes $/tonne Potassium Sulfate % tonnes $/tonne Gemstones Amethyst ct/tonne ct $/ct 667 Pearls/precious stones Beryl ct/tonne ct $/ct Chrysoprase ct/tonne ct $/ct Corundum ct/tonne ct $/ct Diamonds ct/tonne ct $/ct US$/ct Kimberley 1.00 6672 Diamonds unset Process Emerald ct/tonne ct $/ct 667 Pearls/precious stones Garnet % tonnes $/tonne 667 Pearls/precious stones Jade % tonnes $/tonne 667 Pearls/precious stones Opal ct/tonne ct $/ct 667 Pearls/precious stones Ruby ct/tonne ct $/ct 667 Pearls/precious stones Sapphire ct/tonne ct $/ct 667 Pearls/precious stones Tanzanite ct/tonne ct $/ct 667 Pearls/precious stones Topaz ct/tonne ct $/ct 667 Pearls/precious stones Heavy Mineral Sands Heavy Mineral Sands % tonnes $/tonne 2733 Sands, natural Ilmenite % tonnes $/tonne 2733 Sands, natural Iron Sand % tonnes $/tonne 2733 Sands, natural Leucoxene % tonnes $/tonne 2733 Sands, natural Rutile % tonnes $/tonne 2733 Sands, natural Zircon % tonnes $/tonne 2733 Sands, natural Zirconium % tonnes $/tonne US$/tonne USGS 1.00 28784 Zirconium ore/concentrate Options for Data Reporting – EITI Standard, 2016 62 ANNEX III – PRODUCTION DATA continued Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Precious Metals 3PGM+Au g/tonne troy oz. $/oz. 6PGM+Au g/tonne troy oz. $/oz. Gold g/tonne troy oz. $/oz. Gold, 99.5% fine, afternoon UNCTAD - Stat 1.00 96 Coin nongold non-current fixing London Iridium g/tonne troy oz. $/oz. Osmium g/tonne troy oz. $/oz. Palladium g/tonne troy oz. $/oz. 1.00 6812 Platinum etc Platinum g/tonne troy oz. $/ troy oz. 1.00 6812 Platinum etc Platinum Group g/tonne troy oz. $/ troy oz. 6812 Platinum etc Metals Rhenium g/tonne troy oz. $/ troy oz. US$/kg Metal Bulletin Rhodium g/tonne troy oz. $/ troy oz. 1.00 Ruthenium g/tonne troy oz. $/ troy oz. Silver g/tonne troy oz. c/ troy oz. Silver, 99.9%, Handy & UNCTAD - Stat 1.00 28911 Silver ore/concentrates Harman, New York Rare Earth Elements Cerium ppm tonnes $/kg US$/kg USGS 1.00 52595 Rare earth isotop/cmpds Dysprosium ppm tonnes $/kg US$/kg USGS 1.00 52596 Rare earth isotop/cmpds Erbium ppm tonnes $/kg US$/kg USGS 1.00 52597 Rare earth isotop/cmpds Europium ppm tonnes $/kg US$/kg USGS 1.00 52598 Rare earth isotop/cmpds Ferroniobium % tonnes $/tonne US$/kg USGS 1.00 52599 Rare earth isotop/cmpds Gadolinium ppm tonnes $/kg US$/kg USGS 1.00 52600 Rare earth isotop/cmpds Heavy Rare Earths % tonnes $/kg US$/kg USGS 1.00 52601 Rare earth isotop/cmpds and Yttrium Holmium ppm tonnes $/kg US$/kg USGS 1.00 52602 Rare earth isotop/cmpds Indium ppm tonnes $/tonne US$/kg USGS 1.00 52603 Rare earth isotop/cmpds Lanthanides % tonnes $/kg US$/kg USGS 1.00 52604 Rare earth isotop/cmpds Lanthanum ppm tonnes $/kg US$/kg USGS 1.00 52605 Rare earth isotop/cmpds Light Rare Earths % tonnes $/kg US$/kg USGS 1.00 52606 Rare earth isotop/cmpds Lutetium ppm tonnes $/kg US$/kg USGS 1.00 52607 Rare earth isotop/cmpds Neodymium ppm tonnes $/kg US$/kg USGS 1.00 52608 Rare earth isotop/cmpds Niobium % tonnes $/tonne US$/kg USGS 1.00 52609 Rare earth isotop/cmpds Praseodymium ppm tonnes $/kg US$/kg USGS 1.00 52610 Rare earth isotop/cmpds Promethium ppm tonnes $/kg US$/kg USGS 1.00 52611 Rare earth isotop/cmpds Rare Earth Elements % tonnes $/kg US$/kg USGS 1.00 52612 Rare earth isotop/cmpds Samarium ppm tonnes $/kg US$/kg USGS 1.00 52613 Rare earth isotop/cmpds Scandium ppm tonnes $/tonne US$/kg USGS 1.00 52614 Rare earth isotop/cmpds Terbium ppm tonnes $/kg US$/kg USGS 1.00 52615 Rare earth isotop/cmpds Thulium ppm tonnes $/kg US$/kg USGS 1.00 52616 Rare earth isotop/cmpds Ytterbium ppm tonnes $/kg US$/kg USGS 1.00 52617 Rare earth isotop/cmpds Yttrium ppm tonnes $/kg US$/kg USGS 1.00 52618 Rare earth isotop/cmpds Options for Data Reporting – EITI Standard, 2016 63 ANNEX III – PRODUCTION DATA continued Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Specialty/Industrial Wollastonite % tonnes $/tonne Aluminous Clay % tonnes $/tonne Arsenic % tonnes $/tonne US$/lb Metal Bulletin (HS 2002) - 280480 Arsenic Asbestos % tonnes $/tonne US$/tonne USGS 1.00 2784 Asbestos Attapulgite % tonnes $/tonne Barite % tonnes $/tonne 1.00 Bentonite % tonnes $/tonne US$/tonne USGS 1.00 27827 Bentonite Beryllium % tonnes $/tonne 68991 Beryllium unwrght/waste Bismuth % tonnes $/tonne US$/lb Metal Bulletin 68992 Bismuth/articles/wast Borates % tonnes $/tonne 27894 Crude natural borates Boron % tonnes $/tonne US$/tonne USGS 1.00 (HS 2002) - 2810 Oxides of boron; boric acids. Cadmium % tonnes $/tonne c/lb Metal Bulletin 68982 Cadmium unwrought/waste Caesium % tonnes $/tonne Calcium Carbonate % tonnes $/tonne (HS 2002) - 283650 Calcium carbonate Calcrete % tonnes $/tonne Chromium % tonnes $/tonne US$/tonne Metal Bulletin 1.00 28791 Chromium ore/concentrate Clay % tonnes $/tonne 662 Clay/refractory material Diatomite % tonnes $/tonne Dolomite % tonnes $/tonne 27823 Dolomite Felspar % tonnes $/tonne US$/tonne USGS 1.00 27853 Felspar/leucite/syenite Ferrosilicon % tonnes $/tonne Fluorite (fluorspar) % tonnes $/tonne US$/tonne USGS 1.00 Fluorspar % tonnes $/tonne US$/tonne USGS 1.00 27854 Fluorspar Frac Sand % tonnes $/tonne Gallium % tonnes $/tonne US$/kg Metal Bulletin Germanium % tonnes $/tonne US$/kg Metal Bulletin 68996 Germanium/articles/waste Granite % tonnes $/tonne 27313 Granite/sandstone/etc Graphite % tonnes $/tonne US$/tonne USGS 1.00 27822 Natural graphite Gypsum % tonnes $/tonne US$/tonne USGS 1.00 2732 Gypsum etc for cement mf Hafnium % tonnes $/tonne Iodine % tonnes $/tonne 52225 Fluorine,bromine,iodine Kaolin % tonnes $/tonne US$/tonne USGS 1.00 27826 Kaolinic clays Lime % tonnes $/tonne 661 Lime/cement/constr matl Lime Sands % tonnes $/tonne 661 Lime/cement/constr matl Limestone % tonnes $/tonne 27322 Limestone etc. for cement Lithium % tonnes $/tonne (HS 2002) - 282520 Lithium oxide and hydroxide Magnesite % tonnes $/tonne 27824 Magnesite Magnesium % tonnes $/tonne US$/tonne USGS 1.00 68915 Magnesium unwrought Magnesium Chloride % tonnes $/tonne Marble % tonnes $/tonne 27312 Marble/etc slabs Mercury % tonnes $/tonne US$/flask USGS 1.00 52227 Mercury Mica % tonnes $/tonne US$/tonne USGS - Scrap 1.00 27852 Mica/mica waste and Flake Monazite % tonnes $/tonne Options for Data Reporting – EITI Standard, 2016 64 ANNEX III – PRODUCTION DATA continued Conversion Export Value - for Trade Code Trade Production Volume/ Price Source for Concentrate Code Equivalent Commodity Data (Grade) Quantity Data Source Price Data to refined (SITC Rev 3) Description Perlite % tonnes $/tonne 27898 Vermiculite/perlite/chlo Pyrite % tonnes $/tonne Rubidium % tonnes $/tonne Salt % tonnes $/tonne US$/tonne USGS 1.00 2724 Ntrl potassium salts Scheelite % tonnes $/tonne Selenium % tonnes $/tonne US$/lb Metal Bulletin Silica % tonnes $/tonne 27331 Silica/quartz sands Silica Sand % tonnes $/tonne 1.00 27331 Silica/quartz sands Sodium Bicarbonate % tonnes $/tonne 52373 Sodium bicarbonate Sodium Carbonate % tonnes $/tonne US$/short tons USGS 1.00 52372 Neutral sodium carbonate Sodium Sulfate % tonnes $/tonne 52345 Sodium sulphates Spodumene % tonnes $/tonne Strontium % tonnes $/tonne Sulfur % tonnes $/tonne US$/tonne USGS 1.00 274 Sulphur/unroastd pyrites Sulfuric Acid % tonnes $/tonne Synthetic Rutile % tonnes $/tonne 27853 Felspar/leucite/syenite Talc % tonnes $/tonne US$/tonne USGS 1.00 27893 Talc/natural steatite Tellurium % tonnes $/tonne US$/kg Metal Bulletin Thorium % tonnes $/tonne 2862 Thorium ore/concentrates Vermiculite % tonnes $/tonne 27898 Vermiculite/perlite/chlo Zeolites % tonnes $/tonne OIL AND GAS PRODUCTION VOLUME AND VALUE FORMAT Export Value - Trade Code Category Volume Price Price benchmark Value Equivalent (SITC Rev 3) Crude oil barrels/day US$/barrel Spot Crude Average of U.K. Brent, Dubai, Volume x price and West Texas Intermediate, equally weighted* In US$ 3330 Natural gas Gross production US$/MMBTU Benchmark price: Russian in Germany* Volume x price Marketed production US$/MMBTU Benchmark price: Russian in Germany* In US$ 3432 Million standard Flaring NA cubic meters Reinjection NA Shrinkage NA Natural gas liquids Million standard US$/MMBTU Benchmark price: Indonesian in Japan (LNG)* 3431 cubic meters *available from the IMF Commodity Price Statistics Options for Data Reporting – EITI Standard, 2016 65 ANNEX IV – CONVERSION FACTORS MINERAL MEASUREMENT CONVERSION MINERAL MEASUREMENT CONVERSION Magnitude Magnitude To Measurement Translation Rate Magnitude Magnitude To Measurement Translation Rate $/ct $/kg 5000 1000oz kilotonnes 3.11E-05 $/g $/kg 1000 1000oz tonnes 0.031103477 $/kg $/ct 0.0002 ct 1000lbs. 4.41E-07 $/kg $/g 0.001 ct 1000oz 6.43E-06 $/kg $/lakhtonne 100000000 ct g 0.2 $/kg $/lb 0.45359237 ct kg 0.0002 $/kg $/longton 1016.046909 ct kilotonnes 2.00E-10 $/kg $/MTU 10 ct lbs. 0.000440925 $/kg $/oz. 0.031103477 ct oz. 0.006430149 $/kg $/ton 907.18474 ct tonnes 2.00E-07 $/kg $/tonne 1000 ct/ton ct/tonne 1.102311311 $/lakhtonne $/kg 1.00E-08 ct/tonne ct/ton 0.90718474 $/lakhtonne $/tonne 1.00E-05 g ct 5 $/lb $/kg 2.204622622 g kg 0.001 $/lb $/ton 2000 g lbs. 0.002204623 $/lb $/tonne 2204.622622 g oz. 0.032150747 $/longton $/kg 0.000984 g tonnes 1.00E-06 $/longton $/tonne 0.984206528 g/m³ oz./m³ 0.032150747 $/MTU $/kg 0.1 g/ton g/tonne 1.102311311 $/MTU $/tonne 100 g/tonne g/ton 0.90718474 $/oz. $/kg 32.1507466 g/tonne oz./ton 0.029166667 $/ton $/kg 0.0011 g/tonne oz./tonne 0.032150747 $/ton $/lb 0.0005 g/tonne ppb 1000 $/ton $/tonne 1.102311311 g/tonne ppm 1 $/tonne $/kg 0.001 kg 1000lbs. 0.002204623 $/tonne $/lakhtnne 100000 kg 1000oz 0.032150747 $/tonne $/lb 0.000453592 kg ct 5000 $/tonne $/longton 1.016046909 kg g 1000 $/tonne $/MTU 0.01 kg kg 1 $/tonne $/ton 0.90718474 kg kilotonnes 1.00E-06 % ppb 10000000 kg lakhtonne 1.00E-08 % ppm 10000 kg lbs. 2.204622622 1000lbs. 1000oz 14.58333333 kg longtons 0.000984207 1000lbs. ct 2267961.85 kg MTU 0.1 1000lbs. kg 453.59237 kg oz. 32.1507466 1000lbs. kilotonnes 0.000453592 kg tonnes 0.001 1000lbs. tonnes 0.453592 kg tons 0.001102311 1000oz 1000lbs. 0.068571429 kilotonnes 1000lbs. 2204.622622 1000oz ct 155517.384 kilotonnes 1000oz 32150.74657 1000oz kg 31.1034768 kilotonnes ct 5000000000 Options for Data Reporting – EITI Standard, 2016 66 ANNEX IV – CONVERSION FACTORS continued MINERAL MEASUREMENT CONVERSION MINERAL MEASUREMENT CONVERSION Magnitude Magnitude To Measurement Translation Rate Magnitude Magnitude To Measurement Translation Rate kilotonnes kg 1000000 tonnes MTU 100 kilotonnes tonnes 1000 tonnes oz. 32150.74657 lakhtonne kg 100000000 tonnes tons 1.102311311 lakhtonne tonnes 100000 tons kg 907.18474 lakhtonne tons 110231 tons lakhtonne 9.07E-06 lbs. ct 2267.96185 tons lbs. 2000 lbs. g 453.59237 tons longtons 0.89285714 lbs. kg 0.45359237 tons oz. 29166.66667 lbs. oz. 14.58333333 tons tonnes 0.90718474 lbs. tonnes 0.000453592 bbl litre 159 lbs. tons 0.0005 MMBtu therm 0.1 longtons kg 1016.046909 longtons tonnes 1.016046909 OIL MEASUREMENT CONVERSION CRITERION longtons tons 1.12 Cubic meters MTU kg 10 Standard factors Metric tonne Long ton Barrels (kilolitres) MTU tonnes 0.01 Metric tonne 1 0.984 7.33 1.165 oz. ct 155.517384 Long ton 1.016 1 7.45 1.128 oz. g 31.1034768 Barrels 0.136 0.134 1 0.159 oz. kg 0.031103477 Cubic metres (kilolitres) 0.858 0.887 6.289 1 oz. lbs. 0.068571429 oz. tonnes 3.11E-05 NATURAL GAS AND LNG MEASUREMENT CONVERSION oz. tons 3.43E-05 CRITERION oz./m³ g/m³ 31.1034768 billion trillion cubic billion million million British million oz./ton g/tonne 34.28571429 Standard metres cubic tonnes oil tonnes thermal barrels oil oz./tonne g/tonne 31.1034768 factors NG feet NG equivalent LNG units equivalent ppb % 1.00E-07 1 billion cubic metres NG 1 35.3 0.9 0.74 35.7 6.6 ppb g/tonne 0.001 1 billion cubic ppm % 0.0001 feet NG 0.028 1 0.025 0.021 1.01 0.19 ppm g/tonne 1 1 million tonnes 1000lbs. 2.204622622 tonnes oil equivalent 1.11 39.2 1 0.82 39.7 7.33 tonnes 1000oz 32.15074657 1 million tonnes ct 5000000 tonnes LNG 1.36 48 1.22 1 48.6 8.97 tonnes g 1000000 1 trillion tonnes kg 1000 British thermal units 0.028 0.99 0.025 0.021 1 0.18 tonnes kilotonnes 0.001 1 million tonnes lakhtonne 1.00E-05 barrels oil tonnes lbs. 2204.622622 equivalent 0.15 5.35 0.14 0.11 5.41 1 tonnes longtons 0.984206528 Options for Data Reporting – EITI Standard, 2016 67 ANNEX V – DATA CATEGORIES COVERED (2.1a+b) Legal framework Data output for legal codes, regulations and reform • Legislation: Mineral, Oil/gas • Environmental protection • Policy document • Regulation(s) directives • Safety and Health • Others considered relevant • Labor Legal profile of licenses by type • Scale of licenses/concessions Requirements for holding license/concession • Limits on ownership by type of license/ • • Type of mineral concession (2.1a) Fiscal regime country profile Mineral/ Oil and gas specific taxes • Corporate Income Tax (CIT) • Tax holidays etc. • Other taxes & payments • (2.2) License allocations Data output under allocation of licenses Allocation process • Details for bidding process • License allocation disclosure • (2.3) Register of licenses Property details, identifiers • Ownership details • Application date and Date granted • • Location, Other claims owned by the same owner • Expiry/ first renewal date • • Commodities License details and type • Date of refusal, Reason for refusal • • Area, Geospatial data Current status, Information last updated • • Coordinate system Exemptions offered • • Source of data Work to be performed as License requirement • (2.4) Contracts Contract title, context and value • Documents and attachments related to the • Information related to the implementation of the • Description and current status of contract • contract, including any notices. contract. Start, end and signature date • Address and contact point of the Extractive company • The government agency responsible for authorizing the contract • (2.5) Beneficial ownership Data output for beneficial ownership Company name/ Registration number • List of board members • List of shareholders with beneficial ownership • Type of entity and business sectors • For each listed beneficial owner (individual/firm) • (2.6) State participation Data output recommendations for State participation Rules governing state participation • SOE finances; Total assets and liability • Controlling ownership • Tools for state participation • Equity ownership and State control • Payments to State / SOE beneficiaries • (3.1) Exploration Mineral/oil/ natural gas projects by stage • Property, Owner, Development stage, Activity • Primary and proven reserves and resources • status (3.2) Production Production/price data by commodity • Conversion for concentrate to refined • (3.3) Exports Export value - Trade code • Options for Data Reporting – EITI Standard, 2016 68 ANNEX V – DATA CATEGORIES COVERED continued (4.1) Comprehensive disclosure of taxes and revenues • License, concession fees Variable income tax • Real estate tax • • Application /annual /rental fees Withholding tax (dividends, interest and fees) • Local/district taxes • • Acreage/transit fee (oil & gas) Personal income tax • Stamp duties • • Transportation and terminal operations fee Capital gains tax • Land tax • • Environment related: Water use, land use Social security contributions • Tax on vehicles and self-moving mechanisms • • Entry fees Royalties and bonuses • • Penalties • Service charges and fees Import/ custom duties • •Investment in infrastructure • Profits/ windfall taxes Export Duties • Local community development expenditure • • Corporate income tax VAT/Sales tax (net) • by companies Excise duty • (4.2) Sale of the state’s shares of production or other revenues collected in-kind Dividends from government owned/ participation in natural resource • Withdrawal of income from quasi – corporations • Sales of state’s share of production or other • enterprises • Profit remitted to government by SOEs revenues collected in kind (4.3) Infrastructure provisions and barter arrangements Details of relevant infrastructure agreements and contracts • (4.4) Transportation revenues Relevant transport taxes • (4.5) Transactions related to State-owned enterprises (SOEs) Refer to 2.6 state participation • (4.6) Sub-national payments Refer to state participation (2.6) and Sub-national transfers (5.2) • (5.1) Distribution of revenues Data output for distribution of revenues from the extractives sector Resource revenue account (RRA) • Resource revenue management law • Information on extractive revenues management • • Investment Committee for extractive revenues included in the budget document (5.2) Sub-national transfers Share of total revenues going directly to local communities/governments • Allocation of revenue between the federal and • Percentage of allocation that has been • How are the payments to local communities governed • regional governments transferred (5.3) Revenue management and expenditures Refer to Social expenditures by extractive companies (6.1) • (6.1) Social expenditures by extractive companies Allocation of funds/ in-kind projects • Extractive companies commitments to local • communities (6.2) Quasi-fiscal expenditures Refer to state participation (2.6) • (6.3) Contribution of extractive industries to the economy Value and percentage share of GDP • Value and share of contribution to government • •Employment generation • Value and percentage share of exports revenues Options for Data Reporting – EITI Standard, 2016 69