PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
EITIreportingonartisanalandsmall-scalemining
Prioritiesforstrengtheningextractivesectorgovernance,Oslo,5-7September2018
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Overview of the session
• EITIandtheASM,abriefrecap.• Potentialoutcomes,resultsandimpact:Panningfordata:artisanalandsmall-scalemining(ASM)inEITIcountries
• ConnectinglocalASMactivitieswithmulti-levelregulatoryframeworksOECDpresentation
• EITIcountrycasestudies:Ethiopia,MyanmarandDRC
• Q&Asessionandnextsteps.
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
ASMcanmeanmanythings….
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Artisanal/informalismorecomplex
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Keygovernancechallengesandpotential
• Mineralsmugglingcaninsomecasesfinanceconflicts,illegalactivities,lostrevenues,harmtotheenvironment….
• Wealsorecognizethatmillionsofpeopledependonthissectorfortheirlivelihood.
• Thosepeopleareoftenthepoorestandmostvulnerable.
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
EITIpotentialroleinASM
Aspacefordialogue Asourceofreliabledata
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Coverage of ASMinformation inEITIreporting:key findings
• WhilemanyofthecountrieswithsignificantASMsectorwishtousetheEITItoaddresschallengesrelatedtoASM,fewEITIcountrieshaveclearobjectivesforhowtodoso.
• EngagementbykeyASMstakeholdersintheEITIprocessisimportantfortheEITItobeaneffectiveplatformforaddressingASMissues.
• Therearediversepractices amongEITIcountriesondisclosureofinformationrelatedtothelegalandregulatoryframeworkforASM.
• Disclosureofproductionfigures,estimatesofvolumesandvaluesofexportsandgovernmentrevenuesfromASMarelimited.
• Disclosureofestimatesofemploymentfiguresareoftenbasedonoldstudies.
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Panningfordata:ASMinEITIcountries
• Increasingtransparencyinthesector
• Contributing towards theformalisation of the sector
• Sparkingpublic debate andprovidingplatforms fordiscussion
Source:https://eiti.org/document/panning-for-data
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
.Ethiopia:Efforts undertaken on ASM
• MorepeoplethanpreviouslyestimatedarelikelytobeinvolvedinASMactivities:Differencebetweengovernmentestimate(300,000-350,000people)andreportestimate(about1.26millionpeople)
• ThemajorityofASMisinformal:About94%oftheartisanalandsmall-scaleminersarenon-licensed
• Lackofoversightandpoormanagementoflicensedareas
• GapsinthelegalframeworkandsignificantneedtoimproveenforcementofregulationsrelatedtoASM
• SignificantpotentialforthegovernmenttoimproveitstakeofroyaltyfromASMproduction:Only36%ofpotentialroyaltieswerecollectedin2014
• Lackofconsistentinformationaboutprices
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Ethiopia:EEITIstudy on ASM.
Source:https://eiti.org/document/ethiopia-eiti-study-on-artisanal-smallscale-mining-asm-sector
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Myanmar:Context
• Accesstothelucrativegem-producingconcessionsishighlyregulatedwithlittleroomforformalASMtotakeplace
• However,Myanmar’sgem-producingareashavemanysubsistence‘wastepickers’whoarefreetosearchminingcompanywastedumpsforanyvaluablegemmaterialsthatmayhavebeenoverlooked.Thisisunregulated.
• Gemstonevaluechainisslightlydifferent.Roughtradingandjewelrytradingarehugelyimportant
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Myanmar:Where EITIcould contribute
• MappinggemstoneproducingareaswhereASMtakesplace
• DetermininghowmaterialarethepaymentsfromtheASMsectorandhowmaterialrevenuescouldbereflectedinthereport
• IncluderevenuesfromtradinginthescopeoftheEITIprocess
• SubnationalMyanmarEITIprocessescouldhelpindatagatheringandformulationofpolicies
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
TheDemocratic Republicof Congo
Source:EITIDRC,2015,https://eiti.org/sites/default/files/documents/itie_rapaudind_cadragcouverexploitmin_estrdc_1.pdf
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
TheDemocratic Republicof Congo
Source:http://mines-rdc.cd/fr/wp-content/uploads/documents/Statistiques/2018/STATISTIQUES_PREMIER_SEMESTRE_2018.pdf
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
TheDemocratic Republicof Congo
Source:IPIS,2018,http://ipisresearch.be/publication/interactive-map-artisanal-mining-exploitation-eastern-dr-congo-2018-update/
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
TheDemocratic Republicof Congo:Where EITIcould contribute• Compile what isalready systematically disclosed bygovernment agencies
andpartnerorganisations tomakeEITIreporting morecomprehensive(legalframework,fiscal regime,licenses,overview of specific challengesandcharacteristics,production,exports,share compared tothe industrialsector,contribution tothe economy,social andenvironmental impact)
• Describe the differentsupply chains,including actors involved,highlightingspecific challenges incollecting dataandreporting on each commodity
• Create aninventory of local,national,regionalandglobalinitiatives workingon mapping ASM,duediligenceguidelines,responsible sourcing,etc…
• Provide alocal hub andcoordinating platform forthese initiatives,includingdiscussing policies forreformandformalisation of the sector
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Questionsfordiscussion
• CantheEITIdoanythingaboutthesechallenges?
• ShouldtheEITIdoanythingonASM?
• Ifsowhat?
PrioritiesforstrengtheningextractivesectorgovernanceOslo,5-7September2018
Possible next steps?• Conduct pilotprojects with acountryforcomprehensive ASMdisclosures,adding
adue-diligencecomponent toit(BurkinaFasowith the OECD?)
• SupportEITIimplementing countries that wish todisclose moredataabout theirASMsector,including through:• Supporting the development of fully-costed work plansthat identify clear
objectives forhow touse the EITItocoverASM• Encouraging countries with significant ASMactivities toconsider undertaking
scoping of ASMtohelp determine the extent towhich the ASMsector ismaterial
• Innovativeandthematic reporting
• Updatethe EITIGuidance Note21on the coverage of ASMunderthe EITIStandard:https://eiti.org/document/guidance-note-on-coverage-of-artisanal-small-scale-mining-asm-under-eiti
• Collaborate with globalandregionalactors toexplore opportunities forEITItocontribute toongoing efforts toimprove transparency andaccountability of ASM