Publication: Mining Foundations, Trust and Funds : A Sourcebook
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Date
2010-06
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2010-06
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Mining operations increasingly exist in remote parts of developing countries, and with the combined challenges in public services delivery and development assistance, this is drawing the mining sector further into catalyzing development at local, regional and national levels. Responding to this multifaceted trend, the mining sector has increasingly turned to foundations, trusts and funds as vehicles to share the benefits derived from mineral production with communities. This sourcebook reviews the developing country experience of mining sector foundations, trusts and funds to date, identifies aspects of leading practice in this field and provides detailed examinations of fourteen case studies from Peru, Southern Africa and Papua New Guinea. It approaches this analysis from the perspectives of the three sets of key stakeholders: communities, companies and governments. Foundations, Trusts and Funds (FTFs) have different structures and vary considerably in different legal jurisdictions. Recognizing these differences, this study refers to FTFs as a group representing independent entities with options for governance to be shared amongst a number of stakeholders. There are three main purposes for which the mining sector uses FTF structures: community investment - voluntary actions or contributions by companies beyond the scope of their normal business operations; compensation - payments made by mining companies to mitigate the impacts generated by projects; and government payments - taxes and royalties as well as other payment schemes, including voluntary contributions, which exist between mining companies and various levels of government which are intended for redistribution to communities through some form of benefit sharing mechanism. While FTFs are not appropriate in all situations, this sourcebook provides examples from a vast variety of experience to assist communities, governments and companies to consider the role of FTFs within their mining benefit sharing approaches.
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“World Bank. 2010. Mining Foundations, Trust and Funds : A Sourcebook. © http://hdl.handle.net/10986/16965 License: CC BY 3.0 IGO.”
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