The Institute for Policy Interaction World Bank Mining Growth and Governance Support Project ANALYSIS & RECOMMENDATIONS
Rafiq Hajat & Jerome Galagade
Funded by: The International Alliance on Natural Resources in Africa (IANRA)
INTRODUCTION The past decade has seen a race emerge for control of the last remaining natural resource reserves in the World and Africa has become a prime target for the onslaught. The emergence of Brazil, China, India, Russia) (BRIC) has added more fuel to the proverbial fire since these newcomers are now competing with western countries who once enjoyed unparalleled status as former colonial powers who had successfully metamorphosed into Development Partners. The newcomers do not give much credence to issues such as good governance, human rights, anti corruption and do not thus impose conditionalities pertaining to same. This has a positive as well as negative side where African Countries may now have an opportunity to play one side against the other, the resultant noninsistence on good governance and human rights could encourage our governments to ignore the hard gotten gains achieved thus far and catalyse democratic slippages towards authoritarianism within our respective political dispensations. The agents of these so called industrialised/industrialising countries are companies who come bearing gifts under the guise of Foreign Direct Investment (FDI) – a sacred cow which is deemed as indispensable for development regardless of any negative economic, social or environmental impacts that it may have on local communities. As such, whilst much effort is being exerted towards revisiting policy and legislative frameworks to mainstream concepts such as social and resource justice, local ownership, environmental sustainability, there is another side of the coin wherein there is more focus on opening doors and facilitating processes to attract potential FDIs. Consequently, tax and other concessions negate any potential benefit derived by the host country from exploitation of its finite reserves, obviate any semblance of local ownership, expose the host countries to the burden of cleaning up the environmental mess after the companies have departed and open windows for opportunistic speculators who do not hesitate to stoop to any means (including corruption) to get what they want. The BWI (Bretton Woods Institutions - World Bank & IMF) have been playing a leading role in persuading African countries to open their markets and join the global village – often with mixed results. The natural resource wealth of Africa now dangles like a prize plum waiting to be plucked by rapacious private entrepreneurs and the BWI are acknowledged as possessing the relevant expertise to facilitate the plucking through various means such as policy and legislative frameworks, amongst others. The fact that BWIs normally only engage with Governments gives rise to concerns that the grassroot communities, who are the ultimate owners of the land, will be short changed and given the raw end of the stick (as usual) by uncaring, myopic governments. It is thus imperative that Civil Society Organisations step into the breach to fill the yawning gap that exists therein with evidence based inputs derived from research within the field and expertise gleaned therefrom, to engage the BWIs with cogent perspectives emanating from the local populace. This paper is one such initiative to create a level playing field for the aforementioned engagement to induce the World Bank Group (WBG) to mainstream social sensitivity, environmental protection, revenue optimisation, equity and sustainability in all their programs pertaining to the natural resource extraction sector in Sub Saharan Africa. BACKGROUND The Government of Malawi (GoM), which hitherto relied heavily on tobacco as its major foreign currency earner, has been forced to look elsewhere for alternative sources of revenue after suffering from declining prices afflicting the global tobacco industry. One possible option was to explore virtually untapped mineral deposits that have now become 2
viable due to burgeoning demand and the subsequent scramble for Africa's natural resources by developed economies. The Ministry of Natural Resources, Energy and Environment (MNREE), has conducted assessments which reveal favourable geological settings for a range of valuable mineral types and highlight several mineral deposits - already partly or fully evaluated, which could, under the right conditions, attract investment. These findings encouraged the GoM to formulate long term development strategies towards “increasing the contribution of the mineral sector to GDP by at least 10 percent annually” from a baseline of less than two percent of GDP. Although the sector has begun to increase its share of GDP (i.e. through the Kayelekera Uranium mine), there still remains much more to be done before attaining the targets set in the strategic plan. A comparative analysis of the mineral industry in Malawi's neighbours reveals that some progress has already been made in addressing the challenges normally associated with this sector. The analysis indicates that fundamental and sustained reforms are necessary to attract foreign direct investment to develop the mineral sector. Conspicuous examples are those of Mozambique and Tanzania who once were relatively unknown in terms of extractives, but are now emerging as significant producers with access to wi der economic benefits from mining sector growth due to having requisite capacity to implement cogent and comprehensive legislative framework which ensures some semblance of equitable distribution of wealth emanating therefrom. This drives home the indisputable fact that the wider benefits of mining can not be achieved without good governance of the sector and, in this regard, it is imperative to develop clear regulatory frameworks and strong institutions premised upon fundamental tenets such as transparency and accountability to stakeholders in order to realise optimal benefits therefrom. A draft National Mining Policy has been since been submitted to Cabinet by MNREE whilst the review of the archaic Mines & Mineral Act 1981 is ongoing. The GoM, having realised the potential of the mineral sector as a source of economic growth and development in Malawi, has resolved to facilitate the development of the sector and sought technical assistance from the World Bank (WB) to: (i) confirm the potential of mineral sector growth; (ii) identify constraints to the development of the sector which need to be addressed by the government; and, (iii) suggest strategies to foster positive contribution by the mineral sector to sustainable development and poverty reduction in Malawi. The WB, had already embarked on a series of projects focusing fostering 'best practice standards in the mineral sector in Africa, which were ostensibly driven by the desire to obviate paradoxical resource curse syndromes, and was thus in an ideal position to answer GoM's call for help. THE GOVERNMENT OF MALAWI On MINING SECTOR DEVELOPMENT To date, it appears that developments in the mineral sector will not wait for adequate capacity in the ministry, and this poses huge challenges amidst the current climate of a resource hungry world. At the least, it could mean that concessions are granted before proper scrutiny and due process has been conducted on the application – a case in point would be the Kayelekera Uranium mine in Karonga. However, a worst case scenario could emerged whereby the lack of thorough scrutiny is a deliberate, albeit cynical motive by vested interests to take advantage of the systemic weaknesses currently prevailing in the sector, regardless of the potentially horrific future effects on the environment and the people living within the proximity of the affected areas – a case in point being the Eland Coal Mine in Karonga.
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Unfortunately, the GoM appears reluctant to engage with and include other stakeholders who have the capacity to fill the capacity gaps in GoM as shown by the Civil Society Organizations (CSOs) that interacted with Paladin Resources to extract additional tangible benefits for the local community in Karonga. In many cases, CSOs have been sidelined and, when they have been consulted, the outcome of the consultation does not reflect their inputs. In other instances, the government resorts to divide and rule tactics by inviting some favoured CSOs, who may not have the knowledge or capacity to provide valuable input towards the process to consultation meetings, while sidelining other key actors who are eminently more suited for the task at hand. Further, one must be cognizant of the manner in which the GoM fails to 'walk the talk' by not fulfilling its obligations or even worse, reneging on agreements entered on trust with key stakeholders. The Paladin Kayelekera out of court settlement clearly illustrates how the GoM has failed to honour its commitments made as part of that settlement; i.e. setting up a multi sectoral monitoring committee (including Civil Society) to monitor health, social, environmental impact, labour rights and safety measures and financial probity in the operation of the Kayelekera Uranium Mine. The end result is that the mine is now operating without the anticipated degree of scrutiny and the rumour mill is awash with stories of non compliance, which raises tension between the local community and the mining company. The manner in which Eland Coal violated clear stipulations in the Environmental Management Act (EMA) via the non consultative, opaque and dubious method with which it obtained its EIA testifies, not only to the incapacities within the Department of Mines, but also to other factors, such as corruption, that further undermine the admittedly feeble regulatory framework. THE WORLD BANK ON MINING SECTOR DEVELOPMENT Despite huge amounts of aid flowing to Sub-Saharan Africa, it has remained the least developed and industrialized among the world's macro-regions. According to Dambisa Moyo, a trillion dollars have been pumped into Africa over the past 60 years, but with little or no significant changes taking place in the region. Scholars have argued that approaches taken by the donor community do not respond to the core issues in Africa. However, this particular approach that has been taken by the WB and other donors in Malawi, i.e. to provide technical assistance, is in response to crucial elements needed in the governance of the mineral sector i.e. by instituting reforms and enacting new legislation that adhere to international standards and respond to local needs. On a different note, it should be borne in mind that there is no such thing as a free lunch, and the WB's involvement in Sub Saharan Africa has not gone entirely without controversy. The Bank has been criticised for its failure to support increased oversight and effective management of the Congo’s mining industry after having played an instrumental role in enacting mining sector reforms in 2002 to attract foreign investment in the country. Beyond its role in the mining sector, many observers are concerned about the sheer size of the Bank’s general lending portfolio in the Sub Saharan Countries. They argue that the Bank’s infusion of funds runs contrary to the Bank’s own goals and objectives. In DR Congo, the Bank gave loans and grants amounting to $2 billion contrary to findings and recommendations of its own conflict unit regarding financing for post-conflict countries. The findings emphasized the need to focus aid on community-driven development and provision of services over private sector investment in longer-term productive contracts and caution that conflict is likely to re-emerge if root causes (such as struggles over natural resource control) are not addressed. WB involvement in the Congo has instead 4
focused on rewriting the country’s mineral and forestry codes to facilitate private sector participation in the exploitation of the country’s natural resources. Similarly in April 2010, the Bank approved a controversial $3.75 billion loan to build one of the world's largest coal-fired power plants in South Africa, thereby defying international protests and inviting sharp criticism from the Obama administration on grounds that the project would fuel climate change. The above two instances clearly illustrate how the Bank's involvement in the mineral sector of Africa may not be as altruistic as it may seem, but rather serves to gratify some hidden agenda and this should stand as a warning to Malawi. THE ROLE OF THE WORLD BANK IN MINING IN MALAWI WB engagement on mining in Malawi started in 2007 with support to the GoM in identifying key issues to be addressed in a National Mining Policy. The WB subsequently prepared the Mineral Sector Review (MSR) (2009), which provides an assessment of mineral potential and recommends policy, legal, regulatory and institutional reforms to support growth and good governance of the mining sector. It also incorporates a rapid Social and Environmental Sector Assessment (SESA) for the mining sector, which focuses on sectorwide mitigation of impacts of mining activities and the generation of tangible economic and social benefits in mining areas. The recommendations contained therein were as follows: Summary of Recommendations Action
Notes
Priority
Strategic Environmental and Social Assessment (SESA)
It is recommended that a SESA be conducted to incorporate environmental and social considerations in the sector reform process. The SESA could form a component of the sector-wide assessment of all management arrangements and needs in the By June 2010 minerals sector which has been recommended and be performed in the same time frame The SESA should include an assessment of the implementation of the National Decentralization Program in mining districts.
Measures to strengthen EIA process
It is recommended that the Government consider undertaking the following actions to strengthen the EIA process: (i) Ensure public access to environmental and social data on existing and proposed mineral operations; terms of reference, EIA reports By June 2010 and results of monitoring activities; (ii) develop guidelines for and strengthen public consultation processes in EIA to ensure the meaningful participation of weak and vulnerable stakeholders such as women and farmers.
A review of all legislation and regulation on human resettlement, compensation and reclamation for Measures to complement mining activities, so that these issues are clearly resettlement and compensation addressed in line with applicable international standards and best practice.
By Dec 2009
Measures to complement sub-
2010 – 2012
A multi-year institutional and capacity building
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national institutions
program is proposed to take place following completion of a sector-wide assessment of all management arrangements and needs in the minerals sector . The following environmental and social actions at the sub-national level are likely to have priority: 1. Strengthening village and district capacities for environmental and social monitoring in mining regions; 2. Strengthening administrative, planning and development capacities of villages and districts in mining regions in line with the current decentralization process; 3. Strengthening transparency and accountability of decision makers in mining villages and districts; and 4. Establishing mechanisms for distribution of mineral revenues at the district and village levels to strengthen ongoing decentralization processes and to optimize the contribution of mining growth to sustainable development at the local level.
On 20th April 2010, the Ministry of Finance requested WB technical assistance to help undertake the reforms needed to implement the Government’s mining sector growth objectives. The WB's role in the mineral industry therefore appears to provide policy advice and technical assistance which is being guided by the Bank's vision of the Extractive Industries Transparent Initiative (EITI), which enhances prevalence of good governance within the sector whilst promoting expansion and development of same. The WB's engagement in support of the Government is predicated on this reform momentum being sustained and early adoption of the policy is key to the overall success of the initiative. THE WB MINING GROWTH AND GOVERNANCE SUPPORT PROJECT The Mining Growth and Governance Support Project has a strong focus on the improvement of the institutional capacities in the mining sector through technical assistance to the Government of Malawi for: (a) Institutional development and regulatory reforms to encourage the expansion of private investment in mining; and (b) Targeted interventions to alleviate poverty in areas of strong incidence of smallscale and artisan mining. The proposed project would contribute to the 2006-2010 Country Assistance Strategy and its successor by: (i) promoting long-term economic growth through an improved investment climate and infrastructure development, thereby enabling diversification of exportorientated sectors; and (ii) strengthening economic management and good governance in key areas of the economy. 6
PROPOSED OBJECTIVES OF THE PROJECT The project will contribute to a governance level goal, stretching beyond the time line of this project implementation by ensuring sustainable development of mineral resources and the contribution of the mining sector to poverty alleviation through the generation of revenues and integration of the mining sector into broader economic development and planning. Applicable indicators would thus be: 1.
Mining sector growth with strong local economic linkages (measured by the number of mineral development agreements, which include adequate contribution to local economic development by mining projects);
2.
An efficient and transparent framework for managing mineral rights and operations (measured by adoption and consistent application of a comprehensive mining cadastre system);
3.
Generation of mineral revenues and their transparent management (measured by collection and transparency of revenues from operations started prior and during the project using mechanisms adopted under the project e.g. EITI)
4.
Robust environmental and social safeguards (measured by adoption of adequate sector specific environmental and social regulations and application of guidelines that will be developed under the project).
The beneficiaries will be: •
The nation of Malawi, through the larger contribution by increased mining sector activity, to sustainable economic and social development and regional integration.
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The private sector - through improvements in the investment climate and infrastructure provision catalysed by mining sector investment.
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Stakeholders who will benefit from improved availability of geo-data for making exploration decisions and an improved environment for acquiring and maintaining mineral rights.
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Mining-affected communities who will benefit from arrangements to provide social infrastructure, local economic opportunities and measures to reduce, mitigate and compensate for mining related risks and
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Government institutions and staffing, involved in managing the mineral sector, who will benefit from intensive capacity building.
COMPONENTS OF THE PROJECT A. Management of Mineral Rights and Operations. The objective is to build a comprehensive set of arrangements for managing the mineral sector on the basis of the National Mining Sector Policy and the new Mining Act. The project is expected to produce the following outcomes: (i)
Set up structural and support arrangements for continuous and formalized dialogue between multi-sectoral stakeholders on mining policy issues and oversight of policy implementation;
(ii)
Develop a body of regulations to augment and give effect to the new Mining Act,
(iii)
Build on the rapid Strategic Environmental and Social Sector Assessment (SESA) in the Mineral Sector Review (MSR) by conducting a full SESA to identify and 7
design appropriate environmental, social and resettlement policies and measures for mining and associated infrastructure development, including regional and community development planning and agreements, to enhance economic linkages and generation of tangible benefits in mining areas. (iv)
develop Public Private Partnership (PPP) frameworks tailored to mining-related infrastructure development to build upon the Bank’s other projects supporting PPP s approach, frameworks, and capacity building.
B. Generating and managing Mineral Revenue The objective is to support development of the Government’s policy framework for mineral revenue generation and management. Through this component the expected outcomes will be: (i)
Complete standardization of the fiscal regime for mining through design and implementation of suitable royalty and tax regulations,
(ii)
Design and support implementation of revenue transparency measures, and
(iii)
Design and support implementation of policies for the management of mineral revenues.
C. Institutional Strengthening. To ensure that the regulatory frameworks are capable of being implemented professionally, sustainably and transparently. This component will provide training and equipment (including IT systems) to units in MNREE to: (i)
Develop a modern mining cadastre system,
(ii)
Conduct field work, laboratory work, monitoring and inspection,
(iii)
Review and monitor EIAs/SIAs, ESMPs, Resettlement Action Plans and Mine Closure Plans, and develop a social and environmental data registry,
(iv)
Undertake geological data acquisition, interpretation and promotion,
(v)
Carry out (in cooperation with the Malawi Revenue Authority), functions necessary for physical and fiscal audits of mining operations for revenue administration purposes, and
(vi)
Fulfil public information, communications and stakeholder dialogue functions.
Sub-component (iii) would be complemented by programs for the development of CSO and local community capacity to engage in environmental and social management at both impact assessment and at monitoring and evaluation stages. Sub-component (vi) would be complemented by programs for development of CSO and local community capacity to engage in stakeholder dialogue on mining sector development issues during the Project and beyond. D Mineral Sector Promotion. To strengthen the role of government institutions in promoting minerals investment and local economic linkages. This component will (i)
Improve the geo-data and mineral resource assessments available to potential investors, drawing on the results of an evaluation funded by the PPA, of suitable programs of data acquisition, interpretation and promotion which the Bank and other donors can support, 8
(ii)
Support tertiary educational institutions to supply training in mineral-related domains; and
(iii)
Provide support for formalization and sustainable operating practices of artisanal miners regarding technologies, environmental management, health and safety conditions and community relationships.
E. Project Management. Provide support to MNREE to implement project activities, in accordance with the Bank’s fiduciary and other guidelines, inclusive of incremental operating costs, equipment for the project support team, training on fiduciary and project management issues, and project audits. Although the proposed Project is limited to the provision of technical assistance and is not expected to result in any negative environmental or social impact, the proposed project has been classified as Category B, triggering OP/BP 4.01 (Environmental Assessment) because of the potential impacts of follow-on mineral investment projects. Since locations, timing and technical features of follow-on investments are unknown, the Project will not develop an Environmental Impact Assessment (EIA), but instead will prepare and disclose in-country and in the Bank’s Info Shop prior to appraisal Terms of Reference for environmental and social sector related assignments to be carried out under this technical assistance project. During implementation, the project will: 1. Undertake full mining sector Strategic Environmental and Social Assessment (SESA); 2. Revise/ update (and expand where appropriate) existing environmental and social regulations for mining sector, including guidelines and standards, and 3. Provide capacity building to the government on environmental assessment procedures. Critique of the WB Program •
The current trend of the International Financial Institutions (i.e. WB, IMF) reveals intent to maintain their relevance in sub Saharan Africa by playing a pivotal role in the extraction of finite natural resources which have now gained such desirability in the global market..
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As a response to this observed trends, the CSO community in Malawi has to raise the flag by uncovering pertinent issues associated with the extractive industries and coming up with strategies on how to deal with the them.
Pertinent issues Malawi has to learn from Botswana on the institutional set up in mining, regulatory framework as well as institutions governing investment in this sector. •
This is the case because there has been an observation of lack of prudence and seriousness by the government of Malawi in this sector, case in point using technocrats in the ministry to conduct EIA which is supposed to be done by an independent consultant as stipulated by the EMA.
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The conduction of geo-mapping by technocrats from WB will mean first hand information goes first to the MNCs which they have an intricate relationship with.
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The Bank advances neoliberalism which entails investment without regulations i.e. laws and regulations to allow capital to move unabated. However, the system favors the rich economies which have the chance to move capital from the poor countries to their countries and not the vive versa.
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Another observation is on what kind of governance is the bank proposing. Is it the kind of governance that allows policies which facilitate companies from rich economies to come to poor countries and exploit them? An analysis of WB's programs shows that they are in contrast to local aspirations. It is a kind of arrangement that will encourage the coming in of MNCs to loot the finite natural resources of poor African countries. By expanding private investment in mining, it entails an exposure of the natural resource to hungry MNCs who have intricate relationship with WB.
A Critique of the WB's Mining Program - Objectives Objective 1 •
It is difficult to quantify i.e. vague and questionable. This is the case because WB focus is on paving way for FDI which means MNCs which is contrary to local aspirations. Again, the WB is focused on macro-economics and it is questionable how it finds itself in micro-economics.
Objective 2 •
Most of the policies have been a case of cut and paste as they do not reflect the values and aspirations of indigenous citizens. The bank has always been critiqued for applying a “one size fits all” policy which has shown to be a total failure. The question that Malawi should be asking itself is that why is SA all over a sudden wants to nationalize its mining companies.
Objective 3 •
EITI targets governments and not MNCs which is a problem with the government of Malawi as it sees the initiative as not good for the country.
Objective 4 •
Very ambitious
Beneficiaries: A critique •
It is questionable when the WB project document say the private sector will benefit because it does not stipulate which private sector i.e. is it local or international?
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By saying that stakeholders will benefit it reflects a global and not a local tone. This is the case since selling the geodata information entails expansion of the stakeholders and the question is what percentage will the local stakeholders get.
General critique •
The new mining Act which is to replace the archaic one is supposed to reflect the policy. However, it is questionable if the outcome will be the same if the CSOs will be involved since they were not fully involved in coming up with the policy.
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The development of the economy of the country and the mining sector itself hinges on the crafting of the fiscal regime that benefits the country. The question of revenue collection brings an issue of benchmark to be used for standardization of the fiscal regime because standardization can mean several things i.e. in the 10
specific sector, the fiscal regime of the region or the continent. •
The question of geo mapping information brings in an issue of how much control will the government have on the information.
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It is doubtful if capacity building will really benefit the ministry since the conditionality gives WB total control of the steering which dupes the ministry by reversing the resources to the bank as it mostly uses its expert's.
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There is need for more transparency and clarification on certain key terms by WB
Strategies •
The department of Mines should halt on giving new mining licenses to ensure that all reforms are completed so that the law should be applied effectively rather than having the legislation after much harm has been done.
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Every mining company should contribute into the mining trust which will be responsible for remediation after decommissioning.
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There is a need of capacity building in taxation to help effectively campaign for good trade agreements since taxation facilitate capital flight and hence needs to be curbed.
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Minimize private involvement in mining to ensure that the finite resources, which are the only hope of bringing about sound economic development to poor countries, should benefit the countries.
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The CSO community should engage WB on governance to clarify its meaning. Again, it should clearly stipulate the role of non state actors in the whole process of reforming the mining sector.
The WB in conjunction with the GoM must ensure that the capacity building exercise encompasses Parliamentary Committees, CSOs, and other key stakeholders in addition to strengthening the required human capital in government ministries. This will place all actors on the same page and encourage meaningful interaction in a constructive manner. RECOMMENDATIONS 1. It is imperative that Environmental & Social Impact Assessments (ESIA) be prepared by reputable independent experts, who are independent of both government and private sector interests, after due consultation with local communities and other stakeholders prior to the commencement, to be adhered to and reviewed throughout the lifespan of any extractive operation and beyond; 2. Local communities living adjacent to extraction areas, including those who have been moved from their traditional lands, are often neglected and there is a need to ensure that they become ultimate beneficiaries through participation and overall empowerment. The concept of local ownership in terms of shares in mining operation, entrenched in the legislative framework, is one way in which many imbalances can be addressed. While it is an undisputed fact that private ownership optimizes business efficiency and profitability, greater inclusivity will ensure a degree of societal empowerment that government cannot deliver thereby providing avenues for local communities to extricate themselves from the perpetual cycle of grinding poverty and, in so doing, attain a level of human dignity that has long been submerged by despair. 3. Environmental degradation resulting from mining activities adversely affects local 11
communities and the country at large, but the burden of consequent rehabilitation is normally left to governments instead of the operators. It is a globally recognised fact that environmental impacts often emerge long after the mines have closed down and moved on. The case of Acid Mine Drainage (AMD) which is threatening the very existence of Johannesburg, South Africa, is a vivid example of this quandary. It is therefore imperative that all agreements must have long term environmental liability clauses that make the mining companies directly responsible for any environmental degradation that may manifest at any time prior to, during and post closure. 4.
The oversight role of Parliament must be strengthened through legislative review, gathering more information, enhanced interaction between the relevant portfolio Committees and concerned stakeholders, tracking contributions of the extractive industries to the national budgets and audits thereof. This can be achieved through requisite training and capacity building exercises with development partners and Civil Society;
5. Research into the activities of the extractive industries with, amongst other objectives, the aim of identifying best practices in resource governance that are available in fiscal regimes in SADC, will provide a sound basis for ensuring optimal benefit from our finite precious resources; 6. Our governments are deemed to be very lenient towards Foreign Direct Investors (FDI), probably due to pressure from the World Bank, whereas it is necessary to uphold stringent standards that are prevalent in the FDI's respective countries of origin; 7. The corporate practice of hoarding revenues emanating from extractives outside the borders of a country where the mining operation is actually taking place, militates against the balance of payments of that country and should thus be discouraged; 8. The creation of common benchmarks/standards and best practices for policy and legislation on environment and natural resources management for Extractive Industries must be pursued with ardent diligence; 9. The role of civil society, including media, is crucial in providing a sound partnership in tracking, raising public awareness on critical issues as well as assisting in the oversight function; 10. The host country must also see tangible benefits in the form of infrastructural developments that will boost national economic viability – both the short & long term; CONCLUSION The resources endowed in the nation of Malawi belong to its people and every effort must thus be made to ensure sustainable management as well as equitable distribution of benefits derived therefrom. As custodian of these finite resources, the GoM must exercise utmost diligence and caution to pre-emptively counteract any malpractices prevailing in in this emergent sector that has such great potential for the nation. The willingness of the WB to provide technical assistance in the promotion of the mineral sector can play a significant role in mitigating some of the worst attributes associated with the mineral sector which would otherwise lead us into the resource curse, by creating a strong legislative framework that is both responsive to local needs as well as providing an enabling environment for positive economic and social development. Further to that, requisite capacities will have to be nurtured and built within GoM and all other Stakeholders to ensure that the resultant 12
legislative framework is rigorously applied. It is hoped that this paper will provide food for thought and substance for all stakeholders who wish to play a role in our emergent mining sector, the choice will ultimately rest with us and posterity will be the ultimate judge of our actions.
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