At Indaba Mining, the annual gathering Feb. 3-5 in Cape Town of leaders of Africa’s mining sector—from government, corporations and civil society—the words “sustainability” and “stakeholder outreach” were ubiquitous. This focus on sustainability issues reflects impressive progress made in recent years around how mining can contribute to shared value.
Extractive Industries Transparency Initiative
I am a mining specialist, not a conflict specialist. But on my recent trip to Sierra Leone, I was struck by the ever-present need to look at extractive industries through the lens of conflict prevention. The devastating 11-year civil war in Sierra Leone, in large part fueled by local alluvial diamond mining, is impossible to separate from future mining development. With over 50,000 deaths due to the civil war, we cannot ignore the link between conflict and mining.
Imagine you are a leader of an African country and your entire government budget for the year is $1.2 billion.
That same year, an investor sells 51 percent of their stake in a huge iron ore mine in your country for $2.5 billion — more than double your annual government budget.
And imagine having ordered a review into mining licenses granted by previous regimes and knowing that the investor who made the $2.5 billion sale had been granted a mining license in your country for free.
It's what happened in Guinea. It's a story I heard Guinea's president, Alpha Condé tell the G8's trade, transparency and taxation conference in London. And it's a story I thought well worth sharing at the UN Security Council's meeting on fragile states and natural resources last week.
In a surprisingly rainy Sydney, over 1200 people gathered last week for the Global Conference of the Extractives Industries Transparency Initiative (EITI) – a multistakeholder effort bringing together stakeholders from government, civil society, oil, gas and mining companies and investors in support of transparency to help ensure citizens see the benefits from their country’s natural resources.
Film is a powerful tool for explaining environmental issues. I first learnt this lesson while trying to enlist local communities in northern Vietnam to help protect a strange blue faced and critically endangered primate called the Tonkin Snub Nosed Monkey. After a morning spent bombarding local leaders with facts and figures, they were polite but unmoved.
In downtown Houston last month, flags were unfurled everywhere promoting LNG 17 - the biggest global gathering devoted to LNG, or liquefied natural gas, as well as its whole value chain. Bringing together industry, governments and experts on everything from "peak shaving" to floating liquefied natural gas facilities – to how LNG contributes to energy security, the conference proved a good platform to raise up and coming issues. To that end, a World Bank Group session at the conference reviewed our own gas activities, and featured a discussion on "Petroleum Contract Transparency - the new normal?"
With preparations for the G8 Summit in June in full swing, British Prime Minister David Cameron has made clear that transparency will be a key theme and within that a focus on transparency not just in the extractives sector but around land more broadly. This is in large part a response to concerns around the proliferation of large scale land acquisitions – the “land grab” phenomenon. Certainly that topic dominated discussion at the World Bank’s annual Land and Poverty conference this month.
These are some of the views and reports relevant to our readers that caught our attention this week.
"ICT in the service of “peace” often refers to a broad range of activities encompassing conflict prevention and management, peace operations, humanitarian relief and disaster assistance, and post-conflict peace building and reconstruction.
For example, the ICT4Peace Foundation is committed to effective communication in “crisis management, humanitarian aid and peace building”. A recent USIP collaboration, Blogs & Bullets examines how new media can change the politics of unrest, revolution, violence, and civil war. Their work emphasizes five levels of analysis: individual transformation, intergroup relations, collective action, regime policies, and external attention."
My last blog post addressed progress made in the extractive industries, in terms of fighting corruption, and in particular the new U.S. law (the Dodd-Frank Act) that will impact some of the largest gas, oil and mining companies in the world when it goes into effect in 2011. I also mentioned a few initiatives that have played an important role in advocating for this law and for a global norm on transparency. Another important player in this field is the Extractive Industries Transparency Initiative (EITI), as rightly pointed out by a reader and colleague. Launched in 2002, EITI advocates for transparency in the extractive industries through the publishing of financial information and promoting a culture of transparency that involves dialogue, empowering civil society, and building trust among stakeholders. A fundamental principle of the EITI is the development of multi-stakeholder initiatives to oversee the implementation and monitoring process, which is supported through a multi-donor trust fund, managed by the World Bank.