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

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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

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10 20 30 40 50 60 70 80 90 100

Rise in Conflict Coincides With Global Commodity Boom (2002-2013)

5 10 15 20 25

$ Billions

Conflict Incidents by Year Annual Exploration Expenditures

Source: SNL Metals Economics Group, 2014

Source: International Council for Mining and Metals (ICMM), 2015

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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 Cold War & Anti-Apartheid Tensions 1980s Relative Calm Return of Political Protest Activity Source: The Global Risks Report 2016, World Economic Forum Occupy Together Protest, Montreal, 2011

2003 1980 1990

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

Source: PRIO, The Peace Research Institute, Oslo, 2015

Colonialism (1492-1810) Spain, Portugal Colonialism (1881-1924) Britain, France

• 1. Rise in conflict coincides with global

commodity boom.

BROAD, GLOBAL RELATIONSHIPS = STRUCTURAL FACTORS

• 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

To delve beneath the surface manifestations of conflict in order to develop a deeper understanding of:  Root causes, systems and pathways  What is driving the dramatic increase  The players involved; roles & responsibilities Better policies and practices for conflict prevention, management and transformation

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10 20 30 40 50 60 70 80 90 100

ICMM, 2015

DEFINING CONFLICT FOR THIS STUDY

Focus Community-level social conflict associated with the mining sector Conflict Definition

• 1. A broad definition including both

negative and positive outcomes

• 2. Lessons can be learned from conflict

cases a) With NEGATIVE outcomes b) With POSITIVE outcomes c) That simply avoided conflict Definition of Conflict The interaction of two or more parties with perceived incompatible goals, who engage each other through a range of practices including dialogue, persuasion, negotiation, arbitration, legal action, protest, intimidation and physical violence. Definition of Conflict The interaction of two or more parties with perceived incompatible goals, who engage each other through a range of practices including dialogue, persuasion, negotiation, 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

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Tanzania

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

Ghana

Phase 1 Study Outcomes

Conflict is:

• 1. A process with a history and pathway prior to
• utbreak
• 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

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Responsible Mineral Development & CSR

RESPONSIBLE MINERAL DEVELOPMENT

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Conflict Terminology

Conflict Determinant Description Space

(geographic scope)

Time

(duration of effect)

Example Structural Factors

Generic, foundational, not specific to mining Global International National Long-term Historical Current Colonialism; Commodity cycles

Contextual Factors

Impact the broad environment in which mining

• perations occur

National and sub-national Medium to long- term Government policy & regulatory regime

Conflict Drivers (Inhibitors)

Impact specific mining regions Areas containing

• ne or more

mining

• perations

Short to medium-term ASM and LSM competing for the same land base

Conflict Outbreak Triggers

An action or event that is a tipping point Local, at the site

• f specific
• peration

Short term, a moment in time Tailings spill; breach of agreement

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CONCEPTUAL FRAMEWORK

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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

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Conflict Determinant Hierarchy

Role of Host Governments

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

TRIBUTARY (A)

STRUCTURAL FACTORS CONTEXTUAL FACTORS

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LACK OF STRATEGIC APPROACH TO MINERAL DEVELOPMENT

CENTRAL GOVERNMENT WITH WEAK GOVERNANCE CAPACITY LACK OF ACCOMODATION BETWEEN THE ASM AND LSM SECTORS LACK OF PREPARATION OF RURAL COMMUNITIES CONTEXTUAL FACTORS Problems with LSM land acquisition, compensation for and livelihood issues Community concerns over land degradation and water contamination Rising dependency of communities on LSM companies Lack of presence of government in rural areas Weak local government institutions; lack of social development programs Weak regulatory monitoring, reporting and enforcement Competition for land and resources Rise in illegal mining activities Increasing environmental impact on land and waterways Unresolved concerns over land degradation and water issues Incursion of illegal miners

• nto LSM concessions and

forceful removal by govt CONFLICT DRIVERS

TRIBUTARY NETWORK (B)

CONFLICT TRIGGERS

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Lack of strategic approach to mineral development Centralist Approach to Governance Weak local government institutions Capacity Building Decentralization Adopt strategic approach to mineral development

• 1. A mineral tenure system designed to serve both ASM & LSM.
• 1. Eliminate Illegal ASM activities through formalization & legal

means.

• 2. Geological mapping & gold assaying services provided to

assist in the identification and designation of prospective lands for the ASM sector.

• 3. An incremental approach

SELECTED POLICY IMPLICATIONS

§ Fiscal decentralization; distribution of benefits § Devolution of authority § Capacity building in planning and administration § Mechanisms for transparency and accountability § A collaborative approach § Political autonomy to local government?? Decentralization

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Lack of strategic approach to mineral development Centralist Approach to Governance Weak local government institutions Capacity Building Decentralization Adopt strategic approach to mineral development

• 1. A mineral tenure system designed to serve both ASM & LSM.
• 1. Eliminate Illegal ASM activities through formalization & legal

means.

• 2. Geological mapping & gold assaying services provided to

assist in the identification and designation of prospective lands for the ASM sector.

• 3. An incremental approach

SELECTED POLICY IMPLICATIONS

§ Fiscal decentralization; distribution of benefits § Devolution of authority § Capacity building in planning and administration § Mechanisms for transparency and accountability § A collaborative approach § Political autonomy to local government?? Reconcile the LSM and ASM sectors STRATEGIC APPROACH TO MINERAL DEVELOPMENT § Building capacity of the central and local governments to govern § Adequate preparation of rural communities, and § Reconcile the LSM and ASM sectors INSTITUTIONALIZED ENGAGEMENT: Government initiatives: information, dialogue, appropriate application of FPIC, shared decision-making and social support and development programs. Decentralization

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Lack of strategic approach to mineral development Centralist Approach to Governance Weak local government institutions Capacity Building Decentralization Adopt strategic approach to mineral development

• 1. A mineral tenure system designed to serve both ASM & LSM.
• 1. Eliminate Illegal ASM activities through formalization & legal

means.

• 2. Geological mapping & gold assaying services provided to

assist in the identification and designation of prospective lands for the ASM sector.

• 3. An incremental approach

SELECTED POLICY IMPLICATIONS

Reconcile the LSM and ASM sectors Decentralization

PRINCIPAL INVESTIGATORS

Tony Andrews, RMD Inc. Bernarda Elizalde, RMD Inc. Philippe Le Billon, University of British Columbia Chang Hoon Oh, Simon Fraser University David Reyes, Triple R Alliance Ian Thomson, Shinglespit Consultants Inc.,

RMD Ian Thomson OCG Philippe Le Billon UBC David Reyes Triple R Alliance Ian Thomson OCG Philippe Le Billon UBC David Reyes Triple R Alliance PROJECT ASSISTANTS

Marta Conde, Literature Review Jonathan Gamu , Literature Review Jiyoung Shin, Quantitative Analysis Maria Jose Gonzales, Peru Field Case Study Héctor Córdova, Bolivia Field Case Study Rames Abhukara , Madagascar Field Case Study

PHASE 1 STUDY EXTERNAL REVIEW COMMITTEE

Steven Agbo. Senior Social Scientist, Minerals Commission of Ghana Javier Caravedo, Director Ejecutivo, ProDialogo, Lima, Peru Rolando Luque, Deputy for Prevention of Social Conflicts and Governance, Defensoria del Pueblo, Lima Peru Kathryn McPhail, Independent Consultant, formerly Senior Director, International Council for Mining and Metals, Singapore Glenn Nolan, Vice President, Government Relations, Noront Resources, Former Chief, Missanabie First Nation, Ontario, Canada Margaret Wachenfeld, Director of Research and Legal Affairs, Institute for Human Rights and Business, London, UK Kernaghan Webb, Associate Professor & Director of the Institute for the Study of Corporate Social Responsibility, Department

• f Law & Business, Ryerson University, Toronto, Canada

Luc Zandvliet, Founder and Director, Triple R Alliance, Consulting Group, Ontario, Canada Emmanuel D. Tehindrazanarivelo, Chair, Department of Ethics and Systematic Theology, Ambatonakanga Faculty of Theology, Madagascar