The Rise in Conflict Associated With Mining Operations: What Lies - PowerPoint PPT Presentation

The Rise in Conflict Associated With Mining Operations: What Lies Beneath? Tony Andrews Principal & Co-Founder Centre for Responsible Mineral Development November 21, 2017 CIRDI Workshop Vancouver, BC 1

Presentation Outline The Rise in Conflict Associated with Mining Operations: What Lies Beneath The Role of Governments in Enabling or Preventing Conflict Associated with Mining (1) Tony: Conflict process, pathways, players involved, role of government (1) Ian: Company-community interface and conflict outbreak (2) Chang Hoon: Quantitative analysis of conflict incidents recorded from around the world RMD 2

Rise in Conflict Coincides With Global Commodity Boom (2002-2013) Conflict Incidents by Year Annual Exploration Expenditures 100 25 Source: SNL Metals 90 Economics Group, 2014 Source: International Council for Mining and Metals (ICMM), 2015 20 80 70 60 15 $ Billions 50 10 40 30 20 5 10 0 0 RMD 3

INCREASING WORLD PROTEST INTENSITY 2003 – 2013 Rising Social Instability INEQUALITY, INCOME DISPARITY, UNEMPLOYMENT, AUSTERITY MEASURES, CUT-BACKS ON SOCIAL SERVICES, POLITICAL UPHEAVAL (ARAB SPRING – 2011) RISE OF TERRORISM Occupy Together Protest, Montreal, 2011 Cold War & Anti-Apartheid Tensions Return of Political Protest Activity 1980s 1990 1980 2003 Relative Calm Source: The Global Risks Report 2016, World Economic Forum

SHARE OF COUNTRIES (UN MEMBERS) PARTICIPATING IN CONFLICT, 1946-2012 Source: The Peace Research Institute, Oslo (PRIO)

NUMBER OF REPORTED TERROTIST EVENTS BY YEAR, 1970-2013 Source: PRIO

Colonialism Colonialism (1492-1810) (1881-1924) Spain, Portugal Britain, France Source: PRIO, The Peace Research Institute, Oslo, 2015

BROAD, GLOBAL RELATIONSHIPS = STRUCTURAL FACTORS 1. Rise in conflict coincides with global commodity boom. 2. Rise in conflict coincides with global increase in social instability 3. Marked difference in expression of conflict between Latin America and Africa

Phase 1 Study Purpose 100 To delve beneath the surface 90 ICMM, 2015 manifestations of conflict in order to 80 70 develop a deeper understanding of: 60 50  Root causes, systems and pathways 40 30  What is driving the dramatic increase 20 10  The players involved; roles & 0 responsibilities Better policies and practices for conflict prevention, management and transformation RMD 10

DEFINING CONFLICT FOR THIS STUDY Focus Community-level social conflict associated with the mining sector Definition of Conflict Conflict Definition The interaction of two or more 1. A broad definition including both parties with perceived incompatible negative and positive outcomes Definition of Conflict goals, who engage each other The interaction of two or more through a range of practices including 2. Lessons can be learned from conflict parties with perceived incompatible dialogue, persuasion, negotiation, cases goals, who engage each other arbitration, legal action, protest, a) With NEGATIVE outcomes through a range of practices including intimidation and physical violence. b) With POSITIVE outcomes dialogue, persuasion, negotiation, c) That simply avoided conflict arbitration, legal action, protest, intimidation and physical violence. RMD

PHASE 1 STUDY APPROACH 1. Literature Review 2. Quantitative Analysis 3. Field Case Studies (4) Funded by the Canadian International Resources and Development Institute (CIRDI) ROLE OF GOVT STUDY 1. Literature Review 2. Quantitative Analysis 3. Field Case Study (Ghana) Funded by the UNDP with administrative support from CIRDI RMD 12

Ghana Peru Haquira, Cu Project Tanzania First Quantum Advanced Exploration First Quantum, Cu Mine Tanzania Bulyanhulu, Au Mine MMG, Open Pit Operating 1.5 years Acacia, Underground Operating 20 years Bolivia Madagascar San Cristobal, Ag, Pb, Zn Mine Ambatovy, Ni Mine Sumitomo, Open Pit Sherritt Intn, Open Pit Operating 9 years Operating 4 years

Phase 1 Study Outcomes Conflict is: 1. A process with a history and pathway prior to outbreak 2. The result of the interplay of multiple actors, primarily government, companies and communities 3. A process that is seemingly chaotic but is in fact quite systematic and follows a logical and somewhat predictable pathway RMD 14

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Responsible Mineral Development & CSR RESPONSIBLE MINERAL DEVELOPMENT RMD 17

Conflict Terminology Conflict Description Space Time Example (geographic scope) (duration of effect) Determinant Structural Generic, Global Long-term Colonialism; foundational, International Historical Commodity Factors not specific to National Current cycles mining Contextual Impact the broad National and Medium to long- Government environment in sub-national term policy & Factors which mining regulatory operations occur regime Conflict Drivers Impact specific Areas containing Short to ASM and LSM mining regions one or more medium-term competing for (Inhibitors) mining the same land operations base Conflict An action or Local, at the site Short term, a Tailings spill; event that is a of specific moment in time breach of Outbreak tipping point operation agreement Triggers

CONCEPTUAL FRAMEWORK RMD 20

The Role of Government To develop and implement an approach to governance that leads to responsible, sustainable mineral development  The ability of governments to effectively perform this role is a critical determinant in enabling either the creation or prevention of conflict associated with mining  In the majority of cases, governments appear to have contributed to the creation of conflict rather than its prevention RMD 21

Conflict Determinant Hierarchy Role of Host Governments 22

TRIBUTARY (A) COLONIALISM LACK OF TRUST IN AUTHORITARIAN STRUCTURAL FACTORS GOVERNMENT GOVERNMENTS NEOLIBERALISM Centralist approach to governance Disarticulated CONTEXTUAL FACTORS development approach (urban vs rural) Weak local government institutions 23

TRIBUTARY NETWORK (B) LACK OF STRATEGIC APPROACH CONTEXTUAL FACTORS TO MINERAL DEVELOPMENT CENTRAL GOVERNMENT LACK OF ACCOMODATION LACK OF PREPARATION OF WITH WEAK GOVERNANCE BETWEEN THE ASM AND RURAL COMMUNITIES CAPACITY LSM SECTORS Problems with LSM land Lack of presence of Competition for land and acquisition, compensation for government in rural areas resources and livelihood issues CONFLICT DRIVERS Community concerns over Weak local government Rise in illegal mining land degradation and water institutions; lack of social activities contamination development programs Rising dependency of Increasing environmental Weak regulatory monitoring, communities on LSM impact on land and reporting and enforcement companies waterways CONFLICT TRIGGERS Unresolved concerns over Incursion of illegal miners land degradation and water onto LSM concessions and issues forceful removal by govt 24

SELECTED POLICY IMPLICATIONS Lack of strategic Weak local Centralist Approach approach to mineral government to Governance development institutions Capacity Building Adopt strategic approach to mineral Decentralization Decentralization development § Fiscal decentralization; distribution of benefits 1. A mineral tenure system designed to serve both ASM & LSM. § Devolution of authority 1. Eliminate Illegal ASM activities through formalization & legal § Capacity building in planning and administration means. § Mechanisms for transparency and accountability 2. Geological mapping & gold assaying services provided to § A collaborative approach assist in the identification and designation of prospective § Political autonomy to local government?? lands for the ASM sector. 3. An incremental approach 1

SELECTED POLICY IMPLICATIONS Lack of strategic Weak local Centralist Approach approach to mineral government to Governance development institutions Capacity Building Adopt strategic approach to mineral Decentralization Decentralization development STRATEGIC APPROACH TO MINERAL DEVELOPMENT § Building capacity of the central and local governments to govern § Fiscal decentralization; distribution of benefits 1. A mineral tenure system designed to serve both ASM & LSM. § Adequate preparation of rural communities, and § Devolution of authority 1. Eliminate Illegal ASM activities through formalization & legal § Reconcile the LSM and ASM sectors § Capacity building in planning and administration means. Reconcile the LSM § Mechanisms for transparency and accountability 2. Geological mapping & gold assaying services provided to and ASM sectors INSTITUTIONALIZED ENGAGEMENT: Government initiatives: information, dialogue, § A collaborative approach assist in the identification and designation of prospective appropriate application of FPIC, shared decision-making and social § Political autonomy to local government?? lands for the ASM sector. support and development programs. 3. An incremental approach 2