Mineral Resources and Development

37 items available

Permanent URI for this collection

http://hdl.handle.net/10986/16297

This series aggregates and presents the World Bank`s knowledge on oil, gas, and mining in an accessible format. It is meant to assist knowledge sharing and trigger policy dialogue on topics relevant to managing natural resource wealth sustainably and responsibly. The series is produced by the Extractive Industries Unit of the World Bank. The unit serves as a global technical adviser that supports sustainable development by building capacity and providing extractive industry sector-related advisory services to resource-rich developing countries.

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The Contribution of the Mining Sector to Socioeconomic and Human Development

(World Bank, Washington, DC, 2014-04) McMahon, Gary ; Moreira, Susana

Many low and middle-income mineral-rich countries have experienced strong growth for a decade or longer, propelled by a rapid expansion of their mineral exports and a rise in prices of these commodities. This sustained strong economic performance goes against the accepted wisdom that even though the mining sector, like other extractive industries, can generate foreign exchange and fiscal revenues, it contributes little to sustained economic growth and, by extension, human development. Through the presentation of trends and patterns of various indicators, this paper shows that in addition to economic growth, countries rich in minerals other than oil have experienced significant improvements in their human development index (HDI) scores that are on average better than those experienced by countries without minerals. In a sample of five low and middle-income countries with relatively long histories of mining, benefits came from foreign direct investment (FDI), export revenues, and fiscal revenues. The overall impact of the mining sector was much stronger if there were infrastructure benefits and strong linkages to other industries, especially through domestic procurement. Contrary to the notion that there are no jobs in mining, in this small sample, employment related to the mining sector was very high in countries where linkages were strong, even before the multiplier and fiscal expenditure impacts were accounted for. Cooperation between the public and private sectors seemed essential to increasing such linkages. In addition, mining firms often made substantial contributions to local and regional development, at times due to legal requirements but often not. All five countries have either relatively high HDIs (compared with neighboring countries) or strongly improving HDIs.
Innovative Approaches for Multi-Stakeholder Engagement in the Extractive Industries

(World Bank, Washington, DC, 2013-06) Sheldon, Christopher Gilbert ; Zarzar Casis, Alonso ; Caspary, Georg ; Seiler, Verena ; Ruiz Mier, Fernando

Extractive industries (oil, gas, and mining) have the potential to generate significant wealth for developing countries and to serve as important catalysts for growth. They generate large revenues-through royalties, taxation, and exports-and create employment. In some cases, however, resource wealth is associated with political turmoil, deteriorating standards of living, civil conflict, and elite capture. The management's response to the Extractive Industries Review (EIR) and accompanying evaluations signaled a critical turning point in the World Bank Group's (WBG's) engagement in the sector, which had hitherto focused primarily on exploration and development activities, sector policy reform, and commercialization of state-owned enterprises. This publication presents four of the finalist case studies, selected on the basis of project: 1) scalability; 2) replicability; 3) innovation; and 4) level of multi-stakeholder collaboration. In an effort to better document and showcase the variety of ways in which country teams are working with different actors on the often sensitive topic of good governance in the oil, gas, and mining sectors, the World Bank Institute and the World Bank Oil, Gas and Mining Unit (SEGOM) initiated an internal case story competition in 2011.
Implementing EITI at the Sub National Level : Emerging Experience and Operational Framework

(World Bank, Washington, DC, 2011-10) Aguilar, Javier ; Caspary, Georg ; Seiler, Verena

The fundamental rationale behind Extractive Industries Transparency Initiative (EITI) is that increased transparency and knowledge of revenues from the extractive industries will empower citizens and institutions to hold governments accountable. By implementing EITI at the sub national level, countries could reduce opportunities for mismanagement or diversion of funds from sustainable development purposes, especially for prominent oil, gas, or mining regions. It is also an effective way of strengthening EITI local ownership among stakeholders. This report presents a preliminary analysis of emerging experiences in EITI countries implementing sub national EITI. Six countries have been selected as case studies: Ghana, Indonesia, Mongolia, Nigeria, the Democratic Republic of the Congo (DRC), and Peru. Based on these experiences, the report proposes a common operational framework for implementing EITI at the sub national level, laying the ground for further practical guidelines on deepening or strengthening the sub national plans or activities of implementing countries.
Mineral Resource Tenders and Mining Infrastructure Projects Guiding Principles

(World Bank, Washington, DC, 2011-09) Stanley, Michael ; Mikhaylova, Ekaterina

Numerous recent changes in the mining industry have led governments to an increased interest in the tender process as a means of awarding mineral rights. High demand and high mineral prices driven by rapid economic growth in countries such as Brazil, China, and India, and the emergence of new global companies in these countries, have resulted in increased competition to obtain access to mineral resources worldwide. The two parts of this paper, the guidance/good practices and the case study, are presented together even though they do not directly draw on each other's conclusions. Both examine guiding principles and good practices for governments to use in attracting mineral investments. Although it is noted by the authors that the Aynak tender was not a perfect process, occurring as it did in a difficult environment with a deficient in-country capacity and myriad investment challenges, it is a relevant example of what is involved and what must be considered by a government in the process and content of a tender. The paper is expected to motivate long-term strategic thinking among decision makers in mineral-rich countries on ways to begin mine development with the end in mind. Its intention is not to prescribe a set of actions, but rather to inform possible ways of maximizing the local content from mining projects which will need to be adjusted in each unique case.
Overview of State Ownership in the Global Minerals Industry : Long Term Trends and Future

(Washington, DC, 2011) World Bank

This study builds on a previous study from the raw materials group, a Sweden-based minerals consultancy, originally commissioned by the World Bank in 2008. The trend toward more state engagement in the mining industry as noted in the 2008 study has continued, based on more recent developments. This study includes an expanded section on the new forms of state control which are found in Africa and also in Russia, China, India, and other emerging economies. It lays out the possible political implications of these trends and draws lessons from previous periods of increasing state ownership, including how to avoid previous mistakes. Various metals and the history of nationalization in a number of countries are analyzed as are the possible factors influencing the decision to nationalize, such as the sector's strategic importance and the need to control it. China's role in investing in Africa is discussed noting the issues concerning negotiation strategies, looking at the history of deals made in Sub-Saharan Africa. State ownership is defined in detail in appendix one of this document. A consolidated list of state ownership in mining of selected minerals and mineral refining on which the study is based is presented in appendix two.
The World Bank's Evolutionary Approach to Mining Sector Reform

(World Bank, Washington, DC, 2010-10) McMahon, Gary

In this report, in addition to aggregate results, six brief case studies are used to highlight the impact of Bank supported mining sector reform on various indicators at different links of the value chain. These include: the impacts on investment; production and employment in Argentina; institutional capacity building in Papua New Guinea; production and fiscal revenues in Tanzania; community and regional development in Madagascar; mining sector reform and sustainable development in Mongolia; and mining and resource corridors in Liberia. The reforms of the 1990s and early 2000s, which focused on increasing investment and building regulatory capacity, have often had spectacular results with respect to investment and good results with respect to institution building. The work on increasing the efficiency and transparency of fiscal regimes has also achieved significant success, although it is still too early to make a final assessment. While the mining sector-specific aspects of the management and allocation of fiscal revenues are still in early days, there do seem to have been important impacts on poverty reduction and sustainable development in a number of countries that have undergone mining reform, although there has been an insufficient passage of time to make definitive judgments.
Environmental Governance in Oil-Producing Developing Countries : Findings from a Survey of 32 Countries

(World Bank, Washington, DC, 2010-06) Mayorga Alba, Eleodoro

The Petroleum Governance Initiative (PGI) encompasses three general themes, or pillars, that address issues issues of transparency and economic responsibility, environmental sustainability and responsible community development. Of particular interest here is the second pillar, environmental sustainability; the PGI is currently involved in four main activities surrounding this theme: 1) assessing environmental governance and management in oil-producing countries-the topic of this paper; 2) conducting a strategic environmental assessment of oil and gas activity in Mauritania; 3) conducting workshops and preparing a toolkit on decommissioning and abandonment; and 4) providing in-country assistance on environmental management to a limited number of countries. This paper presents the results of a survey undertaken by the PGI to measure the environmental governance of oil-producing nations against a benchmark standard representing a compendium of good management practices for minimizing impacts of oil and gas development. The objective is to identify areas where the World Bank can provide assistance to improve environmental governance and management systems, particularly in those developing countries whose oil and gas industry is rapidly emerging as a major component of gross domestic product. Detecting governance gaps-and, more importantly, facilitating the rapid implementation of corrective measures-is an important challenge for the World Bank in its efforts to preserve natural habitats and the culture of indigenous peoples.
Toward Strengthened EITI Reporting : Summary Report and Recommendations

(World Bank, Washington, DC, 2010-01) Ravat, Anwar ; Ufer, Andre

This document draws on Extractive Industries Transparency Initiative (EITI) country implementation experience and contains the summary report and recommendations of a consultation process. The goal of the consultation process was to examine and recommend ways to strengthen EITI reporting by building on existing EITI policy guidance, while streamlining the reports and promoting qualitative improvements in disclosure within them. Accordingly, the recommendations in this document are addressed to the EITI International Secretariat and through it, to the EITI Board, as well as stakeholders in EITI-implementing countries.
The Aluminum Industry in West and Central Africa : Lessons Learned and Prospects for the Future

(World Bank, Washington, DC, 2009-12) Husband, Charles ; McMahon, Gary ; Veen, Peter van der

The purpose of this working paper is to evaluate the future of the aluminum industry in West and Central Africa, with a focus on aluminum smelting and its relationship with power generation and availability in the regions. The organization of this study is as follows. It continues with an overview of the global aluminum industry, including a description of the production process, current and projected supply and demand, and the most important cost considerations for companies investing in the industry. Chapter two provides a brief history and future prospects for the aluminum sector in West and Central Africa. Chapter three contains an analysis of the viability of the two most important existing smelters in the regions, Valco in Ghana and Alucam in Cameroon, as well as a briefer analysis of Alscon in Nigeria and the potential for other smelters in the regions. In chapter four, the recent experience of the three large aluminum smelters in southeast Africa is reviewed and lessons are extracted for West and Central Africa. Conclusions and recommendations are in chapter five.
Engagement with Civil Society : An EITI Implementation Case Study

(Washington, DC, 2009-11) World Bank

Within the World Bank Group (WBG), the Oil, Gas, and Mining Policy Division (COCPO) is responsible for policy and advisory services in the oil, gas, and mining sectors, including World Bank lending. The unit also manages WBG participation in a number of donor-funded global programs and partnerships, including the Multi-Donor Trust Fund (MDTF) for the Extractive Industries Transparency Initiative (EITI). The main finding of this paper is that the direct support to civil society organization (CSO) through the Development Grant Facility (DGF) mechanism (July 2005 to June 2008) was well received and met key program objectives. In particular, DGF funding catalyzed the EITI in countries by helping strengthen CSO ability to play their role in the initiative. Working closely with the Revenue Watch Institute (RWI) during the later part of the DGF grant cycle helped COCPO build partnerships with CSO. The CSO also found the strategic nature of the DGF interventions to be positive, given that the grants allowed them to carry out a broad range of activities (advocacy, research, capacity building, and communications) around the sensitive topic of extractive industries and EITI.