social management of mining development: key issues from the peruvian experience
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Social management of mining development: Key issues from the Peruvian experience. Gerardo Castillo Reversing the resource curse – Accra, Ghana 26-30 of August 2013. Contemporary Context: Mining in Peru. Mining investment boom since 1990s. - PowerPoint PPT PresentationTRANSCRIPT
SOCIAL MANAGEMENT OF MINING DEVELOPMENT: KEY ISSUES FROM THE PERUVIAN EXPERIENCE
Gerardo CastilloReversing the resource curse – Accra, Ghana
26-30 of August 2013
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Contemporary Context: Mining in Peru
Mining investment boom since 1990s.
Significant expansion to non-traditional extractive areas.
Simultaneous increase in social conflicts.
Creando conocimiento, promoviendo mejores entornos sociales
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Content In this context, what are the main challenges for
managing the social effects of mining development?
1. Environmental regulation.2. Distribution of benefits.3. Country strategy.4. Transparency.5. Management of social impacts.
Creando conocimiento, promoviendo mejores entornos sociales
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Environmental regulation 1st challenge: build an
environmental authority that is able to ensure mining will not adversely affect the environment.
Strong public perceptions of negative impact given history and legacy of poor mining.
Capacity, independence and legitimacy of environmental authority.
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Distribution of benefits
2nd challenge: reach an efficient distribution of the benefits which is perceived as fair.
Institutional design: who distributes?, how is distribution made?, how much to be distributed?, for what purpose?
Balance between the benefit of local populations and central governments.
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Country strategy
3rd challenge: ensure that resources generated through mining are translated into social sustainable development.
Minimum consensus: what is the desired outcome?, in what timeframe?, with which resources?, who is responsible and who is involved?, what are the monitoring and evaluation mechanisms?
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Transparency
4th challenge: good governance and transparent management of resources: reduce corruption and improve accountability.
Transparency at national level: revenue and taxes of the EI sector: EITI, Publish What You Pay, RWI, etc.
Transparency at regional and local level: monitoring of investments and legal agreements.
Creando conocimiento, promoviendo mejores entornos sociales
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Management of social impacts
5th challenge: minimize negative impacts and maximize positive ones.
Improve identification and management of impacts: complex and mixed experiences.
Gender and vulnerable groups approaches.
Creando conocimiento, promoviendo mejores entornos sociales
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Management of social impacts
Conflict (negotiation among diverse interests and positions) do not disappear and is not necessarily negative: could lead to better agreements.
6th challenge: avoid escalation of conflict into violence that affects social and economic development.
Creando conocimiento, promoviendo mejores entornos sociales
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Management of social impacts
Redefinition of shared roles among actors:
State: mechanisms of citizen consultation, ombudsman, spaces for conflict management, overseer of agreements.
RSE: international standards (ICMM, IFC, Ecuador Principles), local content, recognition and alignment with FPIC and social license principles, approaches of sustainable development, gender and human rights, development of business case.
Civil society: institutional capacity building and training, mediation (dialogue tables: i.e. Oxfam in Tintaya mine), independent and continue monitoring.
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Recommendations Environmental regulator independent from
promoting entity (i.e. Ministry of Mines). Creation of a balanced tax regime is not enough. Also
important to design an institutional framework for distribution.
Define country strategy for short, middle and long term outcomes.
Transparency at macro level (revenue and taxes of the sector) and micro level (monitoring of local investment and legal agreements).
Creando conocimiento, promoviendo mejores entornos sociales
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Recommendations
Improve identification and management of social impacts, including gender-sensible and vulnerable groups approach.
Create institutional spaces for conflict management. Define standards and complementary management
actions for State, industry, and civil society. The development of sustainable mining is an
opportunity to introduce positive changes in the whole society.
Creando conocimiento, promoviendo mejores entornos sociales
