Natural Resources Management
Advancing Global Prosperity Through Responsible Resource Development
The management of natural resources in developing countries is an important driver of a country’s economic stability. Tapping the enormous potential of the extractive sector can stimulate sustainable economic growth, create jobs and help bring people out of poverty.
Exports of oil and minerals from Africa, Asia, and Central and South America in 2013 were worth approximately US$2.4 trillion—more than 14 times the amount of official development assistance provided to these same regions in that year. Current trends suggest that the importance of the sector will increase as exploration and production of minerals, oil, and gas continues in developing countries.
Canada works with resource-rich developing countries to:
Strengthen national, regional, and local governments and regulatory institutions so they can manage the extractives sector transparently and responsibly by:
- assisting governments to establish and implement policies, regulations, and strategies to manage mining and extraction of natural resources, including financial management such as establishing sound taxation and revenue-management systems.
- helping educate governments about their natural resources so that they can make decisions at all stages of exploration, development, and operation.
- establishing the Canadian International Resources and Development Institute (CIRDI) so developing-country governments can have access to technical assistance from Canadian and international experts, education and training, and Canadian and international expertise to support the development of policy, legislation and regulatory frameworks for their extractive sectors. The CIRDI is housed at the University of British Columbia, which works in coalition with Simon Fraser University and École Polytechnique de Montréal.
- establishing partnerships, in June 2013, with governments, civil society, and companies in Peru and Tanzania to improve the transparency and management of oil, gas, and mining sectors in these countries, providing support to help stabilize these sectors and make them attractive to investors.
Grow businesses and improve local economic development through diversification and support for local businesses by:
- helping local businesses provide services in support of the extractive sector, specifically in the areas of technology, skill development, and financial services.
- facilitating partnerships between the public and private sector.
- promoting initiatives that reduce economic barriers for women to access employment in and around the extractive sector, particularly in the formal economy.
Enable communities to maximize benefits from the extractive sector to promote inclusive growth and community empowerment, including training and skills development by:
- providing support to address the socio-economic challenges through training, for example, to teach communities how to organize, manage, and plan extractive sector development and increase the employment of men, women, and youth.
International Standards and Guidelines
In addition, Canada works to advance international standards and guidelines to improve performance by all actors involved in the extractive sector.
Canada is a lead supporter to the Extractive Industries Transparency Initiative (EITI), which seeks to increase transparency in the oil, gas, and mining sectors through the implementation of standards related to the publication and verification of company tax, royalty payments, and other government revenues. At present, 31 countries have been deemed “EITI-compliant” (including Mozambique, Peru, Tanzania, Mongolia and Indonesia), with another 17 countries in the process of implementing the EITI. Canada also supports the World Bank’s Extractive Industries Technical Advisory Facility, a unique global venue that facilitates ongoing discussions among developing countries on practical issues related to the sustainable management and development of the extractive sector.
Canada is the leading supporter of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), the only global forum focused on addressing mineral and mining governance challenges and opportunities. The IGF brings together mining officials in developing countries, trading partners and donors, in addition to civil society organizations and mining companies, to discuss and advance issues of mutual concern, such as international standards and best practices in extractive sector management and governance.
Canada also supports other initiatives designed to advance leading sector practice and responsible resource development, including the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Kimberley Process Certification Scheme, Voluntary Principles on Security and Human Rights, and United Nations Guiding Principles on Business and Human Rights.
Latin America and Caribbean Region
- Build the capacity of national governments to plan, manage and regulate the energy sector, as well as implement practices that promote corporate social responsibility and support the energy sector in its contribution to efforts that address climate change.
The Andean Regional Initiative: Peru, Bolivia, Colombia
- Provide regional and local governments and communities access to resources that help them identify, plan, and manage social and environmental dimensions of extractive development projects.
- Provide assistance to authorities to make environmental assessment of mining and energy activities more effective.
- Improve the transparency and participatory use of extractive royalties managed by municipal governments.
- Contribute to the prevention and resolution of social conflicts linked to extractives activities.
- Contribute to economic diversification in extractive regions, by strengthening management capacities of agro-business cooperatives, enhancing their access to markets, and supporting local governments to design and implement regional economic diversification plans.
- Promote responsible and sustainable development of the extractive industry by improving the systems within the Tanzania Minerals Audit Agency to:
- increase the comprehensiveness and accuracy of the information available on the revenues, remittances, capital, and operating expenditures of companies in the extractive industry;
- increase the availability and dissemination of accurate information on the minerals produced and exported; and
- improve the monitoring and auditing of environmental management practices.
- Support the development of petroleum policy and a legal framework for the gas sector; strengthen the management, coordination, and governance of the gas sector through support to the Government of Tanzania’s key sector institutions and Vocational Education Training Authority; as well as develop the capacity of the Government of Tanzania and its institutions to attract and develop power generation projects with private sector sponsors and financing.
- Promote responsible and sustainable development of the extractive industry by nurturing an environment that promotes transparency, strengthens the legal and institutional framework of the EITI in Tanzania as well as its operational processes, and increases public understanding of extractive industry revenues and how they are used.
- Provide targeted technical assistance to Indonesia to implement and sustain the EITI standards, including helping stakeholders in the public sector, civil society, and extractive industries to become better informed about EITI and the types of revenues and royalties generated by the sector and provided technical assistance on reporting and monitoring revenues and royalties generated by the extractive sector.
- Provide targeted sector support, including analysis of the extensive mining license overlaps.
- Help Indonesia to strengthen local government and community oversight to increase transparency and accountability in the extractive sector in three pilot resource-rich districts.
- Work with Indonesia’s Corruption Eradication Commission to identify best practices in management and oversight of the mining sector.
- Improve the quality, stability and transparency of Mongolia’s mining-related legislation, policies and regulations.
- Provide water management training for mining companies and other stakeholders operating in the South Gobi through the International Finance Corporation.
- Support the transparent and accountable management of the mining sector, in particular the sound management of revenues.
- Pilot the integration of health issues in the mining-related environmental impact assessment (EIA) processes related
to the mining sector.
- Improve the incomes and job opportunities of Mozambicans by creating integrated, skills–based training programs and centres of excellence in mining and in oil and gas.
- Improve the ability of the Government of Mozambique to ensure that the social benefits of extractive companies’ community-support projects are well aligned with local development plans.
- Increase the Government of Mozambique’s capacity to manage the environmental and social impacts of mining and gas extraction, as well as tax administration in the extractive sector.
Lesotho, South Africa, Swaziland and Zimbabwe
Protect the long-term income perspective of miners by doing
- Educate target communities in Southern Africa (Lesotho, South Africa, Swaziland and Zimbabwe) about the effects
of tuberculosis in the mining sector.
- Improve awareness about tuberculosis, and the cost and potential interventions to address the disease in affected communities.
Extractives Cooperation for Enhanced Economic Development (EXCEED)
EXCEED is a new multi-country geographic program focused on extractives-related development assistance that enhances the contribution and mitigates the risks of the extractives sector to the socio-economic wellbeing of African women, men and youth.
This program includes building the capacity of African governments and organizations to maximize the benefits of their own resource wealth. For example, EXCEED is funding the African Legal Support Facility to provide legal advice and capacity-building assistance to African governments to negotiate complex contracts and legal frameworks in the extractive sector.
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