Nelson Policy Assessment And Development

Workshop 8Workshop 8 Policy Assessment and Policy Assessment and

DevelopmentDevelopmentPeter Nelson - FacilitatorPeter Nelson - Facilitator

Principal – Land Use ConsultantsPrincipal – Land Use Consultants

8th CASM Conference – BRASILIA – 6-12 October 2008

Workshop 8 Policy Assessment and DevelopmentWorkshop 8 Policy Assessment and Development

WORKSHOP SEQUENCEWORKSHOP SEQUENCEIntroduction Setting the ScenePresentations SIERRA LEONE - Jonathan Pell MONGOLIA - Batsaikhan Usukh MADAGASCAR - Olivier Razafimandimby Comments on Country Experience from other

participantsGroup Review

- Defining the Key IssuesDiscussion

- What can CASM do to assist reform, development and assessment of mineral policies?

SETTING THE SCENESETTING THE SCENE

SCOPE AND OBJECTIVESSCOPE AND OBJECTIVES To review recent experience in minerals policy

formulation and assessment with special reference to ASM,

To debate priorities for action, To make recommendations on the approach

which CASM should follow in responding to these priorities.

To provide input to the African Union First Ministerial Conference on Mineral Wealth Development

ContextContext

ASM Represents:

• 15-20% of Non-fuel Mineral Production world-wide.

• 13 million miners (men, women and children) in 30 countries.

• 80-100 million people depend on ASM for their livelihood.

CASM Strategic Plan & Millennium CASM Strategic Plan & Millennium Development GoalsDevelopment Goals

Goal 1 : Eradicate Extreme Hunger and PovertyGoal 2 : Achieve Universal Primary EducationGoal 3 : Promote Gender Equity and Empower

WomenGoal 4: Reduce Child MortalityGoal 5: Improve Maternal HealthGoal 6: Combat HIV/AIDS, Maleria and Other

Diseases,Goal 7: Ensure Environmental Sustainability,Goal 8: Deliver a Global Partnership for

Development Workshop 8 Policy Assessment and DevelopmentWorkshop 8 Policy Assessment and Development

Cycles in Mineral ActivityCycles in Mineral Activity• Political, Mining and Economic Cycles

– Political Stability, Mining phases, Economic fluctuation

• Policy and legislative Cycles– Mining Laws, Policies, Environment, Employment, Child Labour,

Human Rights, Public Participation

• Seasonal Cycles– Climatic, economic

• Social Cycles– Permanent, transient

• Shocks to the system– Conflict, Disease, Boom & Bust

Activity CyclesActivity Cycles

Output Large Mining

Conflict

Legislative HierarchyLegislative Hierarchy

NATIONAL

REGIONAL

DISTRICT

Law, policy, guidelines, national institutions

Self-Administration in some countries

District and Local Associations

Self-Reliance

Key Topics – National LevelKey Topics – National Level• Macro-economic / Fiscal policies

• Poverty Reduction Strategies

• Mining Law and Policy

• Institutional Change

• Energy Supply/Demand

• Climate Change

• Environment

Sustainable Mineral DevelopmentSustainable Mineral Development8th CASM Conference – BRASILIA – 6-12 October 2008

Natural Resources (NR)

Economy

Social Welfare

Health

Environment

Weak Strong

Policy InteractionsPolicy Interactions8th CASM Conference – BRASILIA – 6-12 October 2008

Global Economy / Markets

GOVERNMENT

Macro-economics

Finance / Legal/

Large Scale Mining

GOVERNMENT

Macro-economics

Finance / Legal/

Large Scale Mining

NR Natural Resources

Economy

Social Welfare

Health

Environment

GOVERNMENT

Macro-economics

Finance / Legal/

Large Scale Mining

Economy

Social Welfare

Health

Environment

GOVERNMENT

Macro-economics

Finance / Legal/

Social / Environmental/

Sector Policies

Large Scale Mining

Economy

Social Welfare

Health

Environment

GOVERNMENT

Macro-economics

Finance / Legal/

Sector Policies

Large Scale Mining

Economy

Social Welfare

Health

Environment

Large Scale Mining ASM

Large Scale Mining

Economy

Social Welfare

Health

Environment

GOVERNMENT

Macro-economics

Finance / Legal/

Sector Policies

Large Scale Mining

Economy

Social Welfare

Health

Environment

District/ Local LevelDistrict/ Local Level• Organisation

– Associations• Tenure

– Mineral rights, pit ownership• Health, Safety and Environment

– Mine safety, processing (mercury), • Gender Roles

– Men / boys, women / girls• Trade and Finance

– Marketing/ business– investment

DETERMINING KEY ISSUES AND DETERMINING KEY ISSUES AND PRIORITIES FOR ACTIONPRIORITIES FOR ACTION

OrganisationalOrganisational Institutional Institutional FrameworkFramework FrameworkFramework

• Mining policy authority• Mining rights administration• Cadastral / Geological Survey• Environmental Authority• Mining Council• Miners

– Large-scale (Formal)– Medium (Formal)– Small-scale (Semi Formal)– Artisanal (Informal)

F.Loayza, G.Mahon World Bank

• Mining Policy• Mineral Rights• Access to land and water• Mining Taxation• Environmental Regulations• FDI Regime• Property rights, contract law,

judiciary, dispute resolution mechanisms

• Indigenous peoples’ rights• Labour laws

Preparing a Good Minerals RegimePreparing a Good Minerals RegimePRIORITIES FOR ACTIONPRIORITIES FOR ACTIONA. Preparing a good Minerals Policy?, B. Introducing a Comprehensive Minerals Law and RegulationsC. Creating good conditions for foreign investment?D. Formalising Mineral Rights?E. Securing Access to land and water?F. Introducing Equitable Mining Taxation?G. Providing Strong Environmental Regulations?H. Formalising property rights?I. Improving Mine Health and Safety and Community Welfare?J. Strengthen judiciary, and dispute resolution mechanisms?K. Securing Stakeholder and community engagement?L. Safeguarding Indigenous peoples’ rights?M. Introducing effective Labour laws?N. Reforming governance and implementation of policies / laws?• Managing markets and fair trade?

KEY ISSUESKEY ISSUES

• Macro-economic Interests• Investment Community and Mining

Companies• Taxation / Capital Allowances / Tax Rates /

Royalties / Exploration Incentives• Policy Requirements: Levels of taxation /

Risk sharing Mineral rights• Mineral Rights: - Ownership Private v. State• Jurisdictions• Disclosure of Information

BUSINESS CLIMATE AND BUSINESS CLIMATE AND MINERAL DEVELOPMENTMINERAL DEVELOPMENT

• Participation in ownership?

• Information access

• Technical Assistance,

• Regulation,

• Safety Standards,

• Environmental Management

BUSINESS CLIMATE AND BUSINESS CLIMATE AND SMALL SCALE MININGSMALL SCALE MINING

PEOPLE ISSUESPEOPLE ISSUES• Mine Health and Safety

• Human Resource Development

• Housing and Living Conditions

• Migrant Labour

• Industrial Relations and Employment Conditions

• Downscaling

OTHER KEY ISSUESOTHER KEY ISSUES• Environmental Performance Standards• International / Cross Border Cooperation• Governance:

– Regulation and Promotion,– Role of National, Provincial and Municipal

government,– Stakeholder Consultation

STRATEGIC ASSESSMENTSTRATEGIC ASSESSMENT

What is Strategic Environmental What is Strategic Environmental Assesment (SEA)?Assesment (SEA)?

“A range of analytical and participatory approaches that aim to integrate environmental considerations into policies, plans and programmes and evaluates inter linkages with economic and social considerations”

OECD-DAC Guidance

The EIA-SEA-SA FamilyThe EIA-SEA-SA Family

Environment

Social

Economic

Environmental

Impact

Assessment

Environment

Social

Economic

Environmental

Impact

Assessment

Strategic

Environmental

Assessment

Environment

Social

Economic

Environmental

Impact

Assessment

Strategic

Environmental

Assessment

Sustainability

Appraisal

Tiering of SEATiering of SEA• National Level – Policy / Institutional SEAs of

Mining Sector / Poverty Reduction Strategies

• Regional Level – Programmatic/ landuse based SEAs of Large and Small-scale Mining and related activities

• District level – Community based SEA of Artisanal mining

• Project Level – EIAs of individual mines

Typical Policy Formulation Process

DEFINE THE PROBLEM

SUMMARISE KEY ISSUES

SET OUT A GOAL / VISION

DEVELOP POLICY OPTIONS

DRAFT POLICIES

DEBATE DRAFT POLICY

APPROVE POLICY

REFINE POLICY

Introducing SEA to Policy

Formulation Process

BASELINE

ANALYSIS

ALTERNATIVES

MONITOR RESULTS

PREPARE REPORT

CONFIRM DECISIONS

Institutional SEAInstitutional SEA

• Situation Analysis

• Stakeholder Analysis

• Policy Analysis

• Prioritisation of Issues

• Preparation of Policy Matrix

• Recommendations on Policy reform

COMMUNITY MINING AREAS AND IMPACT ZONES

POTENTIAL OPEN PIT MINES WITH EIAS

CUMULATIVE EFFECTS

Challenges in Reform of ASMChallenges in Reform of ASM• Exclusion – disadvantaged, health care, low wages

• Understanding – better data

• Institutional Change – decentralisation, status of ASM

• Knowledge-Building – training skills, market information

• Accessing Finance – credit, equipment loans

• Communication – right to be informed and consulted

• Sustainability – livelihoods diversification

Thank YouThank You

Nelson Policy Assessment And Development

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