the mining investment and governance review (mingov...

APRIL 2016

THE MINING INVESTMENT AND GOVERNANCE REVIEW (MInGov)

QUESTIONNAIREPub

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THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016ii

© 2016 International Bank for Reconstruction and Development / The World Bank

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THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016iii

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Implemented by:

In association with:

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016iv

ABBREVIATIONS & ACRONYMS

ASM Artisanal and small-scale miningBBOP Business and Biodiversity Offsets ProgramCEO Chief executive officerCOFOG Classification of the Functions of GovernmentCSO Civil society organizationEIA Environmental Impact AssessmentEITI Extractive Industries Transparency InitiativeEMMP Environmental Mitigation and Monitoring PlanEPA Environmental Protection AgencyESIA Environmental and Social Impact AssessmentFCFS first come, first servedFDI Foreign direct investmentFPIC Free, prior and informed consentGAAP Generally Acceptable Accounting PrinciplesGCI Global Competitiveness IndexGDP Gross domestic productGFS Government Finance StatisticsGNI Gross national incomeGPS Global Positioning SystemGSD Geological Survey DepartmentHIV Human Immunodeficiency VirusICSID International Center for the Settlement of Investment DisputesIFC International Finance CorporationIFRS International Financial Reporting StandardsILO International Labor OrganizationIM4DC International Mining for Development CenterIMF International Monetary FundIPA Investment Promotion AgencyMCO Mining Cadastre OrganizationMOU memorandum of understandingOBI Open Budget IndexOECD Organization for Economic Co-operation and DevelopmentPEFA Public Expenditure and Financial AccountingPER Public Expenditure ReviewPPP Public-private partnershipRDF Revenue Development FoundationSOE State-owned enterpriseTA Technical assistanceTI Transparency InternationalUNDRIP United Nations Declaration on the Rights of Indigenous Peoples UNGP UN Guiding Principles on Business and Human RightsURL Universal Record LocatorUSGS United States Geological ServiceUTM Universal Transverse MercatorVAT Value added taxVPSHR Voluntary Principles on Security and Human RightsWEF World Economic ForumWGC World Gold CouncilWJP World Justice Project

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016v

TABLE OF CONTENTS

Assessment Concepts and Questionnaire Layout viMInGov Country Assessment Questionnaire 1 1. Contracts, Licenses and Exploration 1 A. Policy, Legislation and Regulation 1 B. Accountability and Inclusiveness 6 C.InstitutionalCapacityandEffectiveness 10 2. Operations 25 A. Policy, Legislation and Regulation 25 B. Accountability and Inclusiveness 28 C.InstitutionalCapacityandEffectiveness 33 3. Taxation and State Participation 38 A. Policy, Legislation and Regulation 38 B. Accountability and Inclusiveness 43 C.InstitutionalCapacityandEffectiveness 45 4. Revenue Distribution and Management 53 A. Policy, Legislation and Regulation 53 B. Accountability and Inclusiveness 54 C.InstitutionalCapacityandEffectiveness 57 5. Local Impact 64 A. Policy, Legislation and Regulation 64 B. Accountability and Inclusiveness 68 C.InstitutionalCapacityandEffectiveness 72 D. Economic Environment 78 E. Political Environment 86 F. Sustainable Development 89 M. Mining Sector Importance 98

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016vi

1. ASSESSMENT CONCEPTS AND QUESTIONNAIRE LAYOUT

Key concepts in the design of this questionnaire are the definitions of value chain stage, theme, indicator and question. These are listed in table 1 and summarized in the format used in the questionnaire in table 2.Indicators are based on and derived from the MInGov framework (table 3). To make indicators and questions easier to track in the questionnaire, we use the following annotation system:

• The different stages of the Extractive Industries Value Chain are numbered from 1 to 5.

• The three themes relevant to the Extractive Industries Value Chain are labeled A, B or C. The three cross-cutting themes are D, E and F. The mining sector importance theme is M, and descriptive information is labeled X.

• Indicators are labeled in bold and are coded with reference to their theme (such as “A” in table 2) and, where relevant, the numeric value chain stage (see, for example, 1 in table 2).

• Questions have a unique identifier number. They are also color coded if they are taken from secondary data or if they are a performance measure using color codes (see table 2).

Respondents to In-country Interviews

MInGov has three main groups of stakeholders: the government, industry and civil society. In-country interviews on performance questions focus on these groups, plus others that are closely involved in mining investment and governance. Interviewees are asked only those questions relevant to topics in which they have significant involvement or knowledge. Examples of in-country respondents to the questionnaire are as follows.

• Government: Government stakeholders include key involved agencies, including the ministries of mines, finance and local government; the revenue authority; and the environmental agency. Interviews are generally of the director (or equivalent) of the department responsible for or most directly associated with the topic in question. Where a minister or other political appointee is met, it is largely for a general discussion on governance and investment issues.

• Industry: These are mainly mining companies involved in exploration or mining, and geological and other mining services. Meetings are also held with the management of the chamber of mines or associations representing artisanal and small-scale miners, where they exist. Usually the interview is with an individual closely associated with operational and policy matters, such as the country manager, the person dealing with local employment and content, or the individual responsible for company-government relations.

• Civil society organizations (CSOs): Interviews are conducted with representatives of national CSOs and local branches of international CSOs involved with the mining/extractives sector, such as Caritas and Publish What You Pay.

• Others: A range of other parties with a direct and informed role in the mining investment and governance are also interviewed. Participants vary by country, and commonly include the secretariat of the Extractive Industries Transparency Initiative, members of parliament, employer and labor associations, academics, donors, the human rights commission, and independent experts in areas such as legal, mining and public finance.

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016vii

Valu

e C

hain

Sta

ge (5

)Th

eme

(7)

Topi

c (3

6)In

dica

tor (

64)

Info

rmat

ion

Sour

ce: 3

14 Q

uest

ions

Prim

ary

(132

)Se

cond

ary

(61)

In-c

ount

ry

Inte

rvie

w(1

21)

1. C

ontra

cts,

Lic

ense

s an

d Ex

plor

atio

n

A. P

olic

y, L

egis

latio

n an

d R

egul

atio

n

A1, R

ules

for l

icen

se a

llo-

catio

n an

d ge

olog

ical

dat

a co

llect

ion

A1.1

Cla

rity

of ru

les

for l

icen

se a

lloca

tion,

con

vers

ion

and

trans

fer

100

0

A1.2

Geo

logi

cal d

ata

colle

ctio

n ru

les

10

0A1

.3 M

oder

n m

inin

g ca

dast

re1

00

A1.4

Lic

ense

app

rova

l and

revi

ew ti

mef

ram

es4

00

B. A

ccou

ntab

ility

and

Incl

usiv

enes

s

B1, O

penn

ess,

tran

spar

ency

an

d in

depe

nden

ce o

f lic

ens-

ing

proc

ess

B1.1

, Ope

nnes

s an

d tra

nspa

renc

y of

lice

nsin

g pr

oces

s5

03

B1.2

Inde

pend

ence

of l

icen

sing

aut

horit

y1

01

C. I

nstit

utio

nal C

apac

i-ty

and

Effe

ctiv

enes

s

C1,

Cad

astre

, geo

data

, lic

ense

and

tenu

re m

anag

e-m

ent

C1.

1, C

olle

ctin

g ge

olog

ical

info

rmat

ion

20

7C

1.2,

Sta

te o

f map

ping

and

geo

logi

cal e

xplo

ratio

n4

11

C1.

3, M

inin

g ca

dast

re e

ffect

iven

ess

20

8C

1.4,

Allo

catin

g lic

ense

s eff

ectiv

ely

00

7C

1.5,

Tra

nsfe

rabi

lity

of li

cens

es0

02

C1.

6, M

anag

ing

licen

ses

effec

tivel

y0

09

2. O

pera

tions

A. P

olic

y, L

egis

latio

n an

d R

egul

atio

nA2

, Cla

rity

and

harm

oniz

a-tio

n of

sec

tor r

ules

A2.1

Cla

rity

of le

gisl

atio

n, ru

les

and

timef

ram

es3

00

A2.2

Har

mon

izat

ion

of le

gisl

atio

n an

d go

vern

men

t co

ordi

natio

n3

00

A2.3

Pro

visi

ons

for a

rtisa

nal a

nd s

mal

lsca

le m

inin

g4

00

B. A

ccou

ntab

ility

and

Incl

usiv

enes

s

B2, A

ccou

ntab

ility

of p

ro-

cess

es,

com

pens

atio

n re

-se

ttlem

ent a

nd a

rtisa

nal a

nd

smal

l sca

le m

inin

g vo

ice

B2.1

, Acc

ess

to la

nd, c

ompe

nsat

ion

and

rese

ttlem

ent

30

2

B2.2

Acc

ess

and

acco

unta

bilit

y of

min

ing

legi

slat

ion

and

proc

esse

s2

02

TAB

LE 1

: TH

EME,

VA

LUE

CH

AIN

STA

GE,

TO

PIC

, IN

DIC

ATO

R

AN

D IN

FOR

MAT

ION

SO

UR

CE

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016viii

Valu

e C

hain

Sta

ge (5

)Th

eme

(7)

Topi

c (3

6)In

dica

tor (

64)

Info

rmat

ion

Sour

ce: 3

14 Q

uest

ions

Prim

ary

(132

)Se

cond

ary

(61)

In-c

ount

ry

Inte

rvie

w(1

21)

B2.3

Arti

sana

l and

sm

all-s

cale

min

ing

voic

e re

pres

enta

tion

10

1

C. I

nstit

utio

nal

Cap

acity

and

Eff

ectiv

enes

s

C2,

Sec

tor m

anag

emen

t an

d in

tra-g

over

nmen

tal

coor

dina

tion

C2.

1, T

imef

ram

es fo

r app

rova

ls0

02

C2.

2, In

tra-g

over

nmen

tal c

oord

inat

ion

10

3C

2.3

Supp

ort t

o ar

tisan

al a

nd s

mal

l-sca

le m

inin

g2

04

3. T

axat

ion

and

Stat

e Pa

rtici

patio

nA.

Pol

icy,

Leg

isla

tion

and

Reg

ulat

ion

A3, T

ax p

olic

y, in

stru

men

ts

and

stat

e ow

ned

ente

rpris

e ru

les

A3.1

, Tax

pol

icy

and

inst

rum

ents

90

0A3

.2 R

ules

for a

uditi

ng, b

ase

eros

ion

and

profi

t shi

fting

60

0A3

.3 S

tate

ow

ned

ente

rpris

e go

vern

ance

rule

s2

00

B. A

ccou

ntab

ility

and

Incl

usiv

enes

sB3

, Min

ing

taxa

tion

and

stat

e ow

ned

ente

rpris

e fin

anci

al

man

agem

ent

B3.1

, Acc

ount

abilit

y of

min

ing

taxa

tion

20

2B3

.2, S

tate

ow

ned

ente

rpris

e fin

anci

al m

anag

emen

t3

02

C. I

nstit

utio

nal

Cap

acity

and

Eff

ectiv

enes

s

C3,

Min

ing

tax

adm

inis

tratio

n an

d st

ate

owne

d en

terp

rise

gove

rnan

ce

C3.

1, M

inin

g ta

x ad

min

istra

tion

21

13C

3.2,

Sta

te o

wne

d en

terp

rise

gove

rnan

ce1

04

4. R

even

ue D

istri

butio

n an

d M

anag

emen

tA.

Pol

icy,

Leg

isla

tion

and

Reg

ulat

ion

A4, P

ublic

fina

ncia

l m

anag

emen

t reg

ulat

ion,

in

clud

ing

reve

nue

shar

ing

A4.1

, Pub

lic fi

nanc

ial m

anag

emen

t and

reve

nue

shar

ing

30

1

A4.2

, A4.

2 M

acro

fisca

l man

agem

ent r

ules

and

st

abiliz

atio

n1

00

B. A

ccou

ntab

ility

and

Incl

usiv

enes

sB4

, Bud

get t

rans

pare

ncy

and

acco

unta

bilit

y, a

nd

publ

ic in

tegr

ity

B4.1

, Bud

get t

rans

pare

ncy

and

acco

unta

bilit

y0

10

B4.2

, Pub

lic in

vest

men

t int

egrit

y4

01

C. I

nstit

utio

nal

Cap

acity

and

Eff

ectiv

enes

s

C4,

Bud

get i

mpl

emen

tatio

n an

d m

acro

fisca

l m

anag

emen

t effe

ctiv

enes

s

C4.

1, B

udge

t im

plem

enta

tion

07

2C

4.2,

Lar

ge-s

cale

pub

lic in

vest

men

t0

06

C4.

3 M

acro

fisca

l man

agem

ent a

nd re

venu

e st

abiliz

atio

n eff

ectiv

enes

s0

02

5. L

ocal

Impa

ctA.

Pol

icy,

Leg

isla

tion

and

Reg

ulat

ion

A5, P

olic

ies

to m

itiga

te

envi

ronm

enta

l and

soc

ial

impa

ct

A5.1

Com

mun

ity im

pact

, con

sulta

tion

and

corp

orat

e so

cial

resp

onsi

bilit

y3

00

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016ix

Valu

e C

hain

Sta

ge (5

)Th

eme

(7)

Topi

c (3

6)In

dica

tor (

64)

Info

rmat

ion

Sour

ce: 3

14 Q

uest

ions

Prim

ary

(132

)Se

cond

ary

(61)

In-c

ount

ry

Inte

rvie

w(1

21)

5. L

ocal

Impa

ctA.

Pol

icy,

Leg

isla

tion

and

Reg

ulat

ion

A5, P

olic

ies

to m

itiga

te

envi

ronm

enta

l and

soc

ial

impa

ct

A5.1

Com

mun

ity im

pact

, con

sulta

tion

and

corp

orat

e so

cial

resp

onsi

bilit

y3

00

A5.2

Rul

es fo

r env

ironm

enta

l and

soc

ial i

mpa

ct

man

agem

ent

120

0

A5.3

Rul

es fo

r fina

ncia

l sur

etie

s fo

r dec

omm

issi

onin

g1

00

B. A

ccou

ntab

ility

and

Incl

usiv

enes

sB5

, Hum

an ri

ghts

, em

ploy

men

t equ

ity a

nd

envi

ronm

enta

l tra

nspa

renc

y

B5.1

, Hum

an ri

ghts

and

em

ploy

men

t equ

ity6

05

B5.2

, Env

ironm

enta

l and

soc

ial i

mpa

ct tr

ansp

aren

cy1

01

C. I

nstit

utio

nal

Cap

acity

and

Eff

ectiv

enes

s

C5,

Com

mun

ity c

onsu

ltatio

n an

d en

viro

nmen

tal a

nd

soci

al im

pact

man

agem

ent

C5.

1 Im

pact

and

com

mun

ity c

onsu

ltatio

n0

05

C5.

2 En

viro

nmen

tal a

nd s

ocia

l im

pact

man

agem

ent

effec

tiven

ess

00

9

C5.

3 Eff

ectiv

enes

s of

sur

etie

s fo

r dec

omm

issi

onin

g0

01

N.A

.D

. Eco

nom

ic

Envi

ronm

ent

D1,

Bus

ines

s an

d in

vest

men

t env

ironm

ent

D1.

1, B

usin

ess

and

inve

stm

ent e

nviro

nmen

t0

90

D2,

Min

ing

infra

stru

ctur

e D

2.1,

Min

ing

infra

stru

ctur

e0

50

D3.

Div

ersi

ty a

nd s

tabi

lity

of

natio

nal r

even

ues

D3.

1, D

iver

sity

and

sta

bilit

y of

nat

iona

l rev

enue

s0

20

D4,

Mac

roec

onom

ic s

tabi

lity

D4.

1, M

acro

econ

omic

sta

bilit

y0

30

D5,

Eco

nom

ic g

row

th a

nd

savi

ngs

D5.

1, E

cono

mic

gro

wth

and

sav

ings

03

0

D6,

Ski

lls a

nd h

uman

cap

ital

D6.

1, S

kills

and

hum

an c

apita

l 1

60

D7.

Hum

an h

ealth

D7.

1, H

uman

hea

lth0

30

N.A

.E.

Pol

itica

l En

viro

nmen

tE1

, Exp

ropr

iatio

n ris

k E1

.1, E

xpro

pria

tion

risk

24

0E2

, Pol

itica

l sta

bilit

yE2

.1, P

oliti

cal s

tabi

lity

03

0E3

, Pre

dict

able

min

ing

and

tax

polic

yE3

.1. P

redi

ctab

le m

inin

g an

d ta

x po

licy

10

2

E4, C

ontro

l of c

orru

ptio

nE4

.1, C

ontro

l of c

orru

ptio

n0

10

N.A

.F.

Sus

tain

able

D

evel

opm

ent

F1, D

evel

opm

ent p

lann

ing

F1.1

, Dev

elop

men

t pla

nnin

g5

05

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016x

Valu

e C

hain

Sta

ge (5

)Th

eme

(7)

Topi

c (3

6)In

dica

tor (

64)

Info

rmat

ion

Sour

ce: 3

14 Q

uest

ions

Prim

ary

(132

)Se

cond

ary

(61)

In-c

ount

ry

Inte

rvie

w(1

21)

F2, L

ocal

sup

plie

r de

velo

pmen

t F2

.1, L

ocal

sup

plie

r dev

elop

men

t4

24

F3, I

nves

tmen

t pro

mot

ion

(div

ersi

ficat

ion)

F3

.1, I

nves

tmen

t pro

mot

ion

(div

ersi

ficat

ion)

30

2

F4, L

ever

agin

g in

frast

ruct

ure

F4.1

, Lev

erag

ing

infra

stru

ctur

e4

02

N.A

.M

. Min

ing

Sect

or

Impo

rtanc

eM

1, G

eolo

gica

l pro

spec

tivity

M1.

1, G

eolo

gica

l pro

spec

tivity

0

30

M2,

Min

ing

fore

ign

dire

ct

inve

stm

ent

M2.

1, M

inin

g fo

reig

n di

rect

inve

stm

ent

01

0

M3,

Sig

nific

ance

of s

tate

pa

rtici

patio

n M

3.1,

Sig

nific

ance

of s

tate

par

ticip

atio

n4

00

M4,

Sig

nific

ance

of m

inin

g re

venu

eM

4.1,

Sig

nific

ance

of m

inin

g re

venu

e0

20

M5,

Bud

get s

hare

of m

inin

g re

venu

eM

5.1,

Bud

get s

hare

of m

inin

g re

venu

e0

20

M6,

Eco

nom

ic a

nd

empl

oym

ent s

hare

of m

inin

gM

6.1,

Eco

nom

ic a

nd e

mpl

oym

ent s

hare

of m

inin

g3

20

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016xi

TABLE 2: EXAMPLE OF THE VALUE CHAIN STAGE, THEME, INDICATOR AND QUESTION (AS IN QUESTIONNAIRE)

Questionnaire Text Significance1. Contracts, Licenses and Exploration Extractive Industries Value Chain StageA. Policy, Legislation and Regulation ThemeA1.1. Clarity of Rules for License Allocation, Conversion and Transfer Indicator4. To what extent are limits to the discretionary powers of the authority in charge of awarding mining licenses laid out in the law?

Question: baseline question to answer via primary research

20. In practice, when licenses are cancelled to what extent are the reasons communicated to the license holder in an accurate, complete and timely fashion?

Question: performance question to answer via in-country interview

These questions measure performance against government goals and are highlighted in blue.

169. In your country, how efficiently does the government spend public revenue? – WEF

Question: question to answer from secondary data

Questions based on secondary data are highlighted in gold.

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 2016xii

TAB

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ealth

THE MINING INVESTMENT AND GOVERNANCE REVIEW: QUESTIONNAIRE, APRIL 20161

MInGov COUNTRY ASSESSMENT QUESTIONNAIRE

1. Contracts, Licenses and Exploration A. Policy, Legislation and Regulation

A1.1 Clarity of Rules for License Allocation, Conversion and Transfer

1. To what extent are the procedures for the allocation of exploration rights detailed, laid out in law and regulations, and compatible with relevant legislation?

Answer: Full details laid out in law and regulations, and are compatible with legislation. (Yes) / Full details are not laid out in law and regulations, and/or are not compatible with legislation. (No) / Partial, explained (for example, details are laid out but are not compatible with other legislation).

Good practice: There are detailed procedures for the allocation of exploration rights, from application to approval, that are backed by regulations or their equivalent. It is not good practice to have no procedures, outdated procedures that are not compatible with current regulation, or procedures that are without regulations or their equivalent.

Evidence: Documentation of procedure for allocating exploration rights.

Further details and references can be found in the Mineral Rights Cadastre (2009):

https://openknowledge.worldbank.org/bitstream/handle/10986/18399/486090NWP0extr10Box338915B01PUBLIC1.pdf?sequence=1.

2. To what extent are the procedures for the allocation of mining rights detailed, laid out in the law and/or regulations, and compatible with relevant legislation?

Answer: Procedures for the allocation of mining rights are detailed, laid out in the law and/or regulations, and compatible with relevant legislation. (Yes) / Procedures for the allocation of mining rights are not detailed, laid out in law and regulations, and/or not compatible with legislation. (No) / Partial, explained (for example, details are laid out but are not compatible with other legislation).

Good practice: There are detailed procedures for the allocation of mining rights, from application to approval, that are backed by regulations or their equivalent. It is not good practice to have no procedures, outdated procedures that are not compatible with current regulation or procedures that are without regulations or their equivalent.

Evidence: Documentation of a procedure for allocating mining rights.

Further details and references can be found in the Mineral Rights Cadastre (2009): https://openknowledge.worldbank.org/bitstream/handle/10986/18399/486090NWP0extr10Box338915B01PUBLIC1.pdf?sequence=1.


3. To what extent does the legislation impose clear limits to the discretionary powers of the authority in charge of awarding exploration licenses?

Answer: Clear limits restrict discretionary power in the awarding of exploration licenses... (Yes) /There are no clear limits to discretionary power in the awarding of exploration licenses. (No) /Partial, explained.

Good practice: There are limits to the discretionary powers of the authority in charge of awarding exploration licenses. The decision to award a license is based on recommendations from an independent advisory board. If the license is denied, the reason is communicated to the applicant.

Evidence: Mining law, regulations. May include examples from the mining regulations if, for example, there is no advisory board to advise the minister or if the minister does not need to give reasons for the denial of applications.

4. To what extent are limits to the discretionary powers of the authority in charge of awarding mining licenses laid out in the law?

Answer: Clear limits restrict discretionary power in the awarding of mining licenses. (Yes) /

There are no limits to discretionary power in the awarding of mining licenses. (No) / Partial, explained.

Good practice: There are limits to the discretionary powers of the authority in charge of awarding mining licenses. The decision to award a license is based on recommendations from an independent advisory board. If the license is denied, the reason is communicated to the applicant.

Evidence: Mining law, regulations. May include examples from the mining regulations if, for example, there is no advisory board to advise the minister, or if the minister does not need to explain reasons for the denial of applications.

5. To what extent are exceptions to the First Come, First Served principle allowed?

Answer: Many exceptions are allowed to the FCFS principle. (Yes) / No exceptions are allowed to the FCFS principle. (No) / Partial, explained / Not Applicable (no FCFS principle).

Give examples of exceptions and their frequency.

Good practice: Licenses are awarded on a First Come First Served (FCFS) basis, which in some cases may be complemented by, for example, auctions of deposits with known value. A common and acceptable exception to FCFS is the reserving of extraction of certain building materials (sand, gravel, and so on) for citizens or local companies since this activity often requires limited special skills or investment.

Evidence: Excerpts from mining legislation. Specifically, are there rules that discriminate against the equal treatment of investors (e.g., foreign direct investment [FDI], small-scale miners, and local companies)?

Note: First Come First Served means that the first individual or company to apply for the rights to a certain area will have the priority right to be granted the license or lease. This question excludes preference for the state or SOEs and the treatment of artisanal miners, which are covered elsewhere in the questionnaire.


6. In the law, to what extent does a company that holds an exploration license (and is in compliance with license conditions) have an automatic prior right to apply for a mining lease in that area?

Answer: An automatic prior right to apply for a mining lease exists. (Yes) / There is no automatic

prior right to apply for a mining lease. (No) / Partial, explained.

Good practice: The right to transfer from an exploration license to a mining license is a key aspect of the security of tenure. A license holder has an automatic prior right to apply for a mining lease in the area it has explored provided it meets normal requirements for granting a lease.

Evidence: Mining law, regulations.

7. According to the law, to what extent do license holders have the freedom to transfer their licenses to eligible companies?

Answer: Full freedom contained in relevant legislation, subject to normal qualification conditions. (Yes) / Relevant legislation does not provide for freedom to transfer licenses. (No) / Partial, explained.

Good practice: License holders are free to transfer the license to eligible third parties, including mortgaging the title in order to raise funds, provided they meet the normal conditions for lease transfer.

Evidence: Mining law, regulations.

8. To what extent are sanctions for non-performance by companies regarding licenses prescribed in the regulations?

Answer: Full clarity regarding sanctions for non-performance by companies regarding licenses is in relevant legislation. (Yes) / No detail regarding sanctions for non-performance by companies regarding licenses is detailed in relevant legislation. (No) / Partial, explained.

Good practice: Sanctions for non-performance of conditions concerning licenses are prescribed in the regulations. This includes sanctions for failing to report or pay on time for both mining and exploration licenses.

Evidence: Mining law, regulations and guidelines.

9. To what extent are mining contracts allowed to be used to supersede the provisions of prevailing laws?

Answer: Per relevant legislation, mining contracts fully supersede the provisions of prevailing laws. (Yes) / Per relevant legislation, mining contracts do not supersede the provisions of prevailing laws. (No) / Partial, explained.

Good practice: Mining contracts do not supersede the provisions of prevailing laws.

Evidence: Excerpts of, or a link to, portions of law or regulation. If there is no legal text that provides for this case specifically, check what happens when contracts are ratified into law (and thus may supersede existing sector legislation).


10. Towhatextentisitdefinedinlawwhichgovernmentbodynegotiatesandapprovesmine development agreements?

Answer: The law fully defines that government body that negotiates and approves mine

development agreements. (Yes) / The law does not contain any detail regarding that government body that negotiates and approves mine development agreements. (No) / Partial, explained / Not Applicable if mine development agreements are not used.

Good practice: The mining legislation states which government body or committee negotiates and approves mine development agreements.

Evidence: Mining law, regulations and guidelines.

A1.2 Geological Data Collection Rules

11. In the law, to what extent are exploration companies required to regularly report quantitative operational information, including geological information, to the GSD or mining authority?

Answer: Companies are required to report quantitative operational information on a regular

basis. (Yes) / The legislation has no requirements for regular reporting of quantitative operational information. (No) / Partial, explained.

Good practice: During exploration, companies are required to report quantitative operational information (number of workers employed, meters trenched or drilled, samples taken, and so on) on a regular basis (quarterly, for instance), and such information is confirmed by external audits.

Evidence: Law, regulations and guidelines, verified from visits/discussions with the GSD and mining authority.

Note: Technical information (analytical values, geological/geophysical/geochemical maps, estimated resources, and so on) is released when an exploration program is terminated, or when an application is made to convert part of the license to a mining lease. During mining, regular technical reports are made to help determine production levels and taxes due, and so on. The details of the procedure should be observed: Do exploration companies have to deliver geological information while exploration is still ongoing or after relinquishing their license? Does the required information include datasets, maps or drill core? Is this part of normal reporting procedures, as prescribed in the regulations? If so, is the information delivered in a timely and comprehensive manner?


A1.3 Modern Mining Cadastre

12. Is the establishment and operation of a mining cadastre provided for in the law? Answer: Yes/No/ Partial. Explain “partial.”

Good practice: Establishment and operation of a mining cadastre is covered by law. (Yes) / Establishment and operation of a mining cadastre is not covered by law. (No).

Evidence: Ministry/MCO website, law, regulations.

Note: Cadastres can be computer or paper based; the list of license holders and their license type and expiration date should be publically accessible. Cadastres should have a web portal or the cadastre office should be open to enquiries. In some countries, the mines department issues licenses and the cadastre keeps and updates the records.

A1.4 License Approval and Review Timeframes

13. According to regulation, to what extent is there a clear timeframe for the allocation of licenses?

Answer: A clear timeframe for the allocation of licenses is prescribed by the regulations. (Yes) / The regulation contains no clear timeframe for the allocation of licenses. (No) / Partial, explained.

Good practice: A clear timeframe is prescribed by the regulations, along these lines: “A license should be awarded within X days of the receipt of an application, where the application meets the requirements.” Record how long an application for an exploration license (or a mining lease/license) should take, according to the regulations, once it has been submitted to mining authorities for a decision.

Evidence: Mining law and regulations, ministry or MCO website.

Note: A short timeframe would be 30 days or less; a long one would be 6 months or more.

14. In the law, to what extent is there discretion in the speed of approval for license applications?

Response from: Government, industry.

Answer: The law provides for discretion in the approval time for license applications. (Yes) / The law does not provide for discretion in the approval time for license applications. (No) / Partial, explained.

Good practice: The law indicates that no preferential treatment is given to any applicant in relation to the speed of approval for license applications, and all license applications backed with all required information are processed with similar speed.

Evidence: Mining law and regulations.


15. To what extent does the regulation ensure that applications not meeting criteria are rejected as opposed to remain pending?

Answer: The regulation ensures that applications not meeting qualification criteria are rejected and not left pending. (Yes) / Applications not meeting qualification criteria are not rejected but left pending. (No) / Partial, explained.

Good practice: Applications not meeting publically advertised criteria are rejected; no multiple or immediate re-applications are permitted.

Evidence: Mining law and regulations, ministry or MCO website.

16. To what extent is the timeframe for approval of exploration work programs set out in regulations?

Answer: The timeframe for approval of exploration work programs is set out in regulations

in detail. (Yes) / The timeframe for approval is not indicated in regulations. (No) / Partial, explained.

Good practice: The timeframe for approval of exploration work programs is set out in regulations.

Evidence: Extract from the mining regulations.

Note: Record the timeline for the procedure in the regulations.

B. Accountability and Inclusiveness

B1.1 Openness and Transparency of Licensing Process

17. To what extent is the information required for license applications easily accessible? Answer: The information required for license applications is easily accessible. (Yes) / The

required information is not accessible. (No) / Partial, explained.

Good practice: The information is publically accessible in common languages, and preferably is downloadable from the Ministry website.

Evidence: May include copies of mining regulations or a Universal Record Locator (URL) with information. Note if the answer is described in the mining regulations, is published as part of the guidelines, and/or is available online.


18. To what extent do the regulations require that the reasons for license application denial be communicated to the applicant?

Answer: The regulations require that full reasons for license application denial be communicated

to the applicant. (Yes) / The regulations do not require that reasons for license application denial be communicated to the applicant. (No) / Partial, explained.

Good practice: The regulations require the reasons for denial to be communicated to the applicant.

Evidence: May include examples of this happening, supported by mining law/regulation or guidelines.

19. To what extent does the legislation detail a transparent process for license cancellations?

Answer: A transparent process for license is fully detailed in the legislation. (Yes) / A transparent process for license cancellation is not detailed in the legislation. (No) / Partial, explained.

Good practice: Guidelines outline a transparent process for license cancellation.

Evidence: Mining law/regulation or guidelines.

20. In practice, when licenses are cancelled to what extent are the reasons communicated to the license holder in an accurate, complete and timely fashion?


Answer: Reasons for license cancellation are communicated to the license holder in an accurate, complete and timely fashion. (Yes) / Reasons for license cancellation are generally not communicated to the license holder. (No) / Partial, explained.

Good practice: The reasons for cancellations are communicated in an accurate, complete and timely fashion.

Evidence: Examples of communications to license holders, supported by copies of mining law/regulations or guidelines. Mining companies could cite examples when the process was not followed properly, and mining authorities might note situations where deviations were necessary or desirable.

21. To what extent are mining contracts required to be made publicly available in the law?

Answer: All mining contracts are required to be made publically available in their entirety. (Yes) / There is no requirement to make any mining contracts completely publically available. (No) / Partial, explained.

Good practice: All mining contracts are required to be made publicly available in their entirety.

Evidence: Extracts from mining legislation and regulations, and, if applicable, from other legislation (tax related, and so on).


22. To what extent are mining contracts made publicly available?

Response from: Government, industry, CSOs.

Answer: All contracts are made publicly available in their entirety. (Yes) / No complete contracts are made available. (No) / Partial, explained (such as some contracts are disclosed but not all, or not in their entirety).

Good practice: Where mining contracts are required to be made publically available, this happens consistently and contracts are fully disclosed.

Evidence: Company websites, mining ministry or MCO websites, plus examples from companies and authorities.

23. To what extent does the legislation contain barriers to the disclosure of license and contract information, such as state secrecy laws?

Answer: State secrecy or other laws prevent disclosure of license information. (Yes) / No laws exist that are barriers to disclosure other than (perhaps) confidentiality provisions in contracts. (No) / Partial, explained.

Good practice: There is no de jure barrier to the disclosure of license and contract information.

Evidence: Extracts from mining legislation and regulations.

24. To what extent does the government publish key details for each license such as the license holder, duration of license and license type?

Response from: Government, CSOs.

Answer: The government always publishes all key license information. (Yes) / Key details of each license are rarely or never published. (No) / Partial, explained.

Good practice: The government always publishes key details for each license, such as the license holder, duration of license and license type.

Evidence: May include a mining ministry or MCO website, plus the opinions of companies and authorities.


B1.2 Independence of Licensing Authority

25. In the law, to what extent is the authority in charge of awarding licenses for exploration and mining independent from the mining ministry?

Answer: The authority in charge of awarding licenses for exploration and mining is fully independent from the mining ministry. (Yes) / The authority in charge of awarding licenses for exploration and mining is not independent from the mining ministry. (No) / Partial, explained (for example, the authority is separate but not independent, or the award of some licenses (such as, exploration) are, but not all are independent). / Partial, explained (for example, the authority is separate but not independent, or the award of some licenses (for example, exploration) but not all is independent (as in the case of separate authorities). The crucial point is to have the awarding and administering of licenses separated from the monitoring of activities covered by the licenses).

Good practice: Independence from both state-owned enterprises (SOEs) and the ministry, under a separate MCO or a similar statutory body. The crucial point is to have the awarding and administering of licenses separated from the monitoring of activities covered by the licenses.

Evidence: Extract from the laws/regulation describing the operation of the mining cadastre office (MCO).

26. To what extent is the authority in charge of awarding licenses for exploration and mining independent from the mining ministry?


Answer: The authority in charge of awarding licenses for exploration and mining is fully independent from the mining ministry. (Yes) / The authority in charge of awarding licenses for exploration and mining is not independent from the mining ministry. (No) / Partial, explained (for example, the authority is separate but not independent, or the award of some licenses (such as, exploration) but not all is independent). / Partial, explained (for example, the authority is separate but not independent, or the award of some licenses (for example, exploration) but not all is independent (as in the case of separate authorities). The crucial point is to have the awarding and administering of licenses separated from the monitoring of activities covered by the licenses).

Good practice: Independence from both state-owned enterprises (SOEs) and the ministry, under a separate MCO or a similar statutory body. The crucial point is to have the awarding and administering of licenses separated from the monitoring of activities covered by the licenses.


C.InstitutionalCapacityandEffectiveness

C1.1 Collecting Geological Information

27. To what extent is there a government website that describes what national geological information is available and at what cost (if not free)?

Answer: A government website describes national geological information in detail and is up to date. (Yes) / There is no government website describes national geological information. (No) / Partial, explained.

Note the cost of accessing the website, if any.

Good practice: A government website describes available national geological information.

Evidence: A Geological Survey Department (GSD) or ministry website that lists the type of information available: maps, reports, surveys and other data. A good example from Tanzania that includes detailed lists and prices is at: http://www.gst.go.tz/geoinfo.htm.

28. To what extent is there a library with current national geological information maintained by the Geological Survey Department (GSD) or a similar organization?

Answer: There is a library, most of the information is current, and it is maintained by GSD

or a similar organization. (Yes) / There is no library, library information is outdated, or it is not maintained by GSD or a similar organization. (No) / Partial. Explain “partial.”

Good practice: There is a library with current national geological information maintained by the Geological Survey Department (GSD) or a similar organization

Evidence: A GSD or ministry website containing national maps, reports and other geological data that can be verified during discussions with the relevant departments. This should not be a library/collection of historic documents but one collecting current geological information.

29. In practice, how reliably are exploration companies delivering the required operational information, including geological information, to the GSD or mining authority?

Response from: Government.

Answer: Exploration companies regularly comply with reporting requirements for operational information. (Yes) / Companies are largely not compliant with reporting requirements for operational information. (No) / Partial, explained.

Good practice: During exploration, companies are required to report quantitative operational information (number of workers employed, meters trenched or drilled, samples taken, and so on) on a regular basis (quarterly, for instance), and such information is confirmed by external audits.

Evidence: Description of types of reported and unreported information, including geological information. Important to establish if unreported information is followed upon.


30. To what extent does the Geological Survey Department (GSD) or similar organization collect geological information in an accessible library?


Answer: The GSD or similar organization collects a significant amount of geological information in an accessible library. (Yes) / The GSD does not collect geological information in an accessible library. (No) / Partial, explained.

Good practice: The library is accessible for geologists and others to review and analyze historic and recent reports.

Evidence: Government and industry confirm existence and state of the library and if it is being used.

31. To what extent does the Geological Survey Department (GSD) or similar organization

storegeologicalinformationfromcompaniesinaconfidentialmanner?


Answer: The GSD or a similar organization stores geological information from companies in a confidential manner. (Yes) / Geological information from companies is not stored in a confidential manner. (No) / Partial, explained.

Good practice: The data room and archives where geological information is stored should have only supervised access and be able to prevent information leaks.

Evidence: Description of security protocols and evidence of information leaks, if any.

Note: Companies are concerned that their confidential reports could be leaked to competitors before open-access is required and/or their license expires.

32. To what extent does the Geological Survey Department (GSD) or a similar organization make use of the geological data collected from companies to improve understanding of geological prospectivity?

Response from: Government, industry, experts.

Answer: The GSD or a similar organization uses the geological information collected from companies to improve understanding of the country’s geological prospectivity. (Yes) / The geological information collected from companies is not used to improve understanding of geological prospectivity. (No) / Partial, explained.

Good practice: The Geological Survey Department (GSD) or a similar organization uses geological data collected from companies to improve government and public understanding of geological prospectivity.

Evidence: Examples of data being used to update government information on geological prospectivity or reasons why data is not so used.


33. To what extent does the Geological Survey Department (GSD) or a similar organization make use of the geological data collected from companies to monitor compliance with licenses?


Answer: The GSD or similar organization uses geological data collected from companies to monitor compliance with license conditions. (Yes) / The GSD or similar organization does not use geological data collected from companies to monitor compliance. (No) / Partial, explained.

Good practice: The Geological Survey Department (GSD) or a similar organization uses geological data collected from companies to monitor their compliance with licenses.

Evidence: Examples of geological data having been used to monitor license compliance or non-compliance, or reason why data is not so used.

34. To what extent is the Geological Survey Department (GSD) or similar organization staffedwithwell-trainedprofessionals?

Response from: Industry, experts. Answer: The GSD or similar organization is staffed with sufficient well-trained professionals

to carry out its mandate. (Yes) / The GSD or similar organization is not staffed with sufficient well-trained professionals to carry out its mandate. (No) / Partial, explained.

Good practice: Ideally, staff have both geological training and information technology (IT) skills.

Evidence: May include an overview of staff numbers and qualifications.

35. To what extent is the Geological Survey Department (GSD) or similar organization appropriatelyfinanciallyresourced?

Response from: Government, industry. Answer: The GSD or similar organization is appropriately financed to carry out its mandate.

(Yes) / The GSD or similar organization is not appropriately financed to carry out its mandate. (No) / Partial, explained.

Good practice: The GSD receives sufficient resources to hire the needed staff and to enable them to undertake office and field activities commensurate with their roles.

Evidence: May include budgets and evidence of systems in place. Often GSD budgets are spent almost entirely on salaries, leaving little funding for work materials, office and IT supplies, internet connections, training and field activities.


C1.2 State of Mapping and Geological Exploration

36. What proportion of the country’s land has been licensed for exploration?

Answer: High (≥75%) / Above average (≥50%) / Below average (≥25%) / Low (<25%), based on the approximate percentage of land area that has been licensed for exploration.

Evidence: Can be determined from a cadastre system or the MCO.

37. To what extent is the licensed ground being serviced by active exploration?


Answer: High (≥75%) / Above average (≥50%) / Below average (≥25%) / Low (<25%), based on the approximate percentage of land area that has been actively explored.

Answer is based on the percentage of licenses (or of land area under license) that is held by companies submitting regular reports.

Good practice: Regulations for exploration licenses do not encourage the holding of large areas for potential exploration as this could prevent the entry of qualified and interested exploration companies in areas that are otherwise unlikely to be explored for many years.

Evidence: May include reports from the ministry/MCO.

38. Is there a current country-wide geological map (usually at the scale of 1:1,000,000, 1:2,000,000, 1:1,500,000) that is available electronically?

Answer: The map is less than 20 years old and available electronically. (Yes) / The map is

outdated and is only available in paper format. (No) /Partial, explained, (for example, the map is either older than 20 years or available only on paper).

Evidence: Maps obtained from the GSD, verified with the ministry of mines, industry and independent experts.

Note: Most countries would fit on one large sheet at this resolution. The map should provide a basic overview of the geological potential of the country, and preferably be available in digital format. Such maps are now available on free databases in much of the world, but are often not common in developing countries. The maps should be updated every few years as new information comes to light although maps available in developing countries can be some decades out-of-date.


39. What proportion of the country is covered by geological maps at a scale of 1:250,000 or similar (e.g., 1:200,000)?

Answer: High (≥75%) / Above average (≥50%) / Below average (≥25%) / Low (<25%), based

on the approximate proportion of the country that is covered. Note if available maps are older than 20 years and/or only available on paper.


Note: A high score may be awarded if most of the country is covered (the coverage in many developing countries will be closer to 50 percent). Australia, for example, requires such maps to be updated once every 20 years; maps in developing countries are often older than 20 years and/or available only on paper.

40. What proportion of the country is covered at scale of 1:100,000 by geological maps or similar (for example, 1:100,000, 1:62,500, 1:50,000)?

Answer: High (≥75%) /Above average (≥50%) /Below average (≥25%) /Low (<25%), based on the approximate proportion of the country that is covered. Note if available maps are older than 20 years and/or only available on paper.


Note: A high score may be awarded if highly prospective areas are covered but most nonurban areas are not mapped at this scale in developing countries.

41. Quality of geological database—Fraser Institute

Answer: Score between 0 and 100, the percentage of those surveyed who consider that the quality of the geological database encourages investment or at least does not deter investment.

Note: This question represents the opinion of a wide range of mining executives, based on a detailed survey sent to approximately 4,200 exploration, development, and other mining-related companies around the world.

For further details see:

https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2014.pdf


C1.3 Mining Cadastre Effectiveness

42. To what extent are the mining cadastre rules being correctly implemented and information is accessible to the public?

Response from: Industry, CSOs.

Answer: Mining cadastre rules are being correctly implemented and non-confidential information is accessible to the public. (Yes) / Mining cadastre rules are not being correctly implemented and non-confidential information is not publically accessible. (No) / Partial, explained.

Good practice: Cadastres should be accessible to the public. Good practice accessibility is where office access to the cadaster is available during office hours each working day and on-line access is 24/7 with minimal downtime.

43. To what extent does the relevant legislation or guidelines provide for a map component to record license boundaries in the cadastre?

Answer: The relevant legislation or guidelines provide for a map component to record license boundaries. (Yes) / There is no relevant legislation or guidelines requiring a map component in the cadastre. (No) /Partial. Explain “partial.”

Evidence: Obtain information and examples on how license boundaries are recorded from the cadastre website or the ministry/MCO.

44. To what extent is the topographic map for the cadastre compatible with GPS systems?

Response from: Government, industry, experts.

Answer: The topographic map for the cadastre is fully compatible with GPS systems, including having an acceptable coordinate conversion procedure. (Yes) / The cadastre topographic map is not compatible with GPS systems and no coordinate conversion procedure has been defined. (No) / Partial, explained.

Good practice: There is a well-known and universally accepted algorithm with enough parameters to convert (handheld and other) GPS readings to Lat-Long or Universal Transverse Mercator (UTM) coordinates. Failure to apply conversions may lead to differences between actual coordinate locations and where those coordinates appeared to be located on the cadastre’ s topographic map.

Evidence: Expert response or report on the cadastre.


45. In practice, are there boundary disputes between license holders due to the ambiguity of boundaries?

Response from: Industry.

Answer: There are boundary disputes due to the ambiguity of boundaries. (Yes) / There are no boundary disputes due to boundary ambiguity. (No)

Good practice: License boundaries are defined in writing and cartographically so there is no ambiguity that might cause disputes.

Evidence: Documented cases, including those handled by legal firms.

46. To what degree is the mining cadastre up-to-date?


Answer: Rank on a scale of being last up-dated in the past day, week, month, three-month period, six-month period, year, longer than a year.

Good practice: An on-line mining cadaster should be up-to-date in real time. A manual cadaster should be maintained as up-to-date as possible, ideally on a daily basis.

Note: The mineral rights map should list all current applications, including those that overlap and those that have been rejected or are pending. It should also include applications for various license and mineral types captured in the cadaster, including for artisanal and small-scale mining. Areas subject to ongoing application processes should be excluded from new applications or flagged as such. Expired licenses should not be listed on the map.

47. To what extent is the mining cadastre used to support the management of licenses?


Answer: The cadastre is extensively used to support license management. (Yes) / The cadastre is seldom or never used to support license management. (No) / Partial, explained.

Good practice: The cadastre should assist officials with license management (fee calculation, provision of reminders for overdue payments, creation of template letters to license holders, and so on).

Evidence: Mining regulations and cadastre operation manuals (including for computerized cadastre systems).


48. To what extent does the cadastre system ensure that license information (including boundaries) cannot be tampered with?


Answer: The system protects the integrity of information through procedural checks and limits to access authority. (Yes) / There are few or no safeguards to monitor how information is accessed or changed. (No) / Partial, explained.

Good practice: Whether a manual or computer based cadaster system, license information should be protected from tampering (unauthorized adjustment) from within or outside the cadastre.

49. To what extent is the computerized cadastre system operating without major technical problems?


Answer: The computerized cadastre performs well and has limited downtime except for planned routine maintenance. (Yes) / The cadastre system is frequently offline or is unreliable. (No) /Partial, explained. / Not Applicable if there is no computerized cadastre.

Good practice: Computer-based cadaster systems should work without major problems, have limited down periods for maintenance, and be accessible 24/7.

Note: Technical problems may include the system being down frequently or problems with slow and limited remote access. Technical problems can be also confirmed by interviewing companies that have installed cadastre systems (like Spatial Dimension, Revenue Development Foundation [RDF] and GAF).

50. If there is a decentralized cadastre system in place, to what extent is there a clearance requirementfromcentraloffice?

Answer: Clearance from the central office is required in every instance and there are operating

guidelines or procedures for how such clearances should be treated and timelines for response. (Yes) / There are no clearances required, or there are no guidelines or procedures for how such clearances should be treated. (No) / Partial, explained / Not Applicable if no decentralized cadastre.

Good practice: Some countries have regional cadastre offices (as in Ghana, Mozambique and Madagascar) whose processes are integrated with those at the central level but clearance is required for some actions.


51. In practice, if there is a decentralized cadastre system in place, to what extent is a clearancefromthecentralofficerequiredbeforeissuingalicense?


Answer: Clearance from the central office is required before issuing a license. (Yes) / There are no clearances required before issuing a license. (No) / Partial, explained. / “Not Applicable” if there is no decentralized cadastre.

Good practice: Some countries have regional cadastre offices (as in Ghana, Mozambique, and Madagascar) whose processes are integrated with those at the central level and clearance can be required before issuing a license.

C1.4 Allocating Licenses Effectively

52. To what extent are the procedures for the allocation of exploration rights laid out in the legal framework followed in practice?


Answer: Procedures for the allocation of exploration rights laid out in the legal framework are followed without exception. (Yes) / Procedures for the allocation of exploration rights are seldom or not followed (No). / Partial, explained (for example, deviations from regulations occur but are relatively rare or not substantive or if procedures are outdated and contradict the law and so cannot be followed in practice).

Good practice: Procedures for the allocation of exploration rights should be laid out in the legal framework and followed without exception.

Evidence: Documentation from the licensing system and/or copies received by applicants to demonstrate compliance. It is important to gather documented evidence and not just contrasting claims from respondents concerning partial compliance or non-compliance. An example of a case handled by legal firms, or an extract from a government or expert report, could be used as evidence.


53. To what extent are the procedures for the allocation of mining rights laid out in the legal framework followed in practice?


Answer: Procedures for the allocation of mining rights laid out in the legal framework are followed without exception. (Yes) / Procedures for the allocation of mining rights are seldom or not followed (No). / Partial, explained (for example, deviations from regulations occur but are relatively rare or not substantive, or procedures are outdated and contradict the law and so cannot be followed in practice).

Good practice: Procedures for the allocation of mining rights should be laid out in the legal framework and without exception followed.

Evidence: Documentation from the licensing system and/or copies received by applicants to demonstrate compliance. It is important to gather documented evidence and not just contrasting claims from respondents concerning partial compliance or non-compliance. An example of a case handled by legal firms, or an extract from a government or expert report, could be used as evidence.

54. To what extent are limits to discretionary power in the award of exploration licenses followed?


Answer: Limits to discretionary power in the award of exploration licenses, as defined in legislation and regulation, are followed. (Yes) / Limits to discretionary power are never or seldom followed. (No) / Partial, explained.

Good practice: Limits to discretionary power in award of exploration licenses, as defined in legislation and regulation, are followed.

Evidence: Evidence of discretion being used beyond the scope provided in legislation or documentation from the licensing system and/or copies received by applicants to demonstrate compliance. It is important to gather documented evidence and not just contrasting claims from respondents concerning the use of discretion. An example of a case handled by legal firms, or an extract from a government or expert report, could be used as evidence.


55. To what extent are limits to discretionary powers in the award of mining licenses followed?


Answer: Limits to discretionary power in the award of mining licenses, as defined in legislation and regulation, are followed. (Yes) / Limits to discretionary power are never or seldom followed. (No) / Partial, explained.

Good practice: Grounds for and extent of discretion are spelled out in legislation, and are applied save in defined, exceptional circumstances.

Evidence: Evidence of discretion being used beyond the scope provided in legislation or documentation from the licensing system and/or copies received by applicants to demonstrate compliance. It is important to gather documented evidence and not just contrasting claims from respondents concerning the use of discretion. An example of a case handled by legal firms, or an extract from a government or expert report, could be used as evidence.

56. To what extent is there a preference for local companies or producers in the allocation process of exploration or mining licenses?


Answer: There is no preference for local companies or producers in the allocation process of exploration or mining licenses other than positive discrimination in prescribed circumstances for artisanal and small-scale mining, quarrying and, in limited circumstances, state owned enterprises. (Yes) / There is no preference for local companies or producers in the allocation process of exploration or mining licenses other than for artisanal and small-scale mining, quarrying and, in limited circumstances, state owned enterprises (No) / Partial, explained.

Good practice: There is no preference for local companies or producers in the allocation

process of exploration or mining licenses other than for artisanal and small-scale mining, quarrying and, in limited circumstances, state owned enterprises.

Evidence: If the answer is “Yes,” document examples.

Note: This question excludes preference for SOEs, artisanal and small-scale miners and quarrying.

57. To what extent is it clear which government body (or bodies) negotiates and approves mining contracts.


Answer: The body (or bodies) responsible for negotiating and approving mining contracts is clearly identified in legislation or regulations. (Yes) / Legislation or regulations do not make it clear which body (or bodies) is responsible to negotiate and approve mining contracts. (No) / Partial, explained.

Good practice: The body responsible for negotiating mining contracts is identified in legislation, and approval should be by a third party. Practice follows the process defined by legislation.


58. To what extent do license cancellations or denied applications result in appeals? Response from: Industry.

Answer: License cancelations or denied applications often result in appeal processes. (Yes) / License cancelations or denied applications never or seldom result in appeal processes. (No) / Partial, explained.

Good practice: Appeal procedures are defined in the relevant legislation and appeals strictly follow the approved process

Evidence: Documentation of disputes handled by legal firms. Note whether the appeal/s is based on conditions described in the law/regulations.

C1.5 Transferability of Licenses

59. In practice, if a company holds an exploration license and is in compliance with license conditions, to what extent does that translate into an automatic priority in obtaining a mining lease in that area?


Answer: Subject to meeting license requirements, a company in good standing will have an automatic priority to obtain a mining lease over an exploration license (Yes) / There are no automatic priorities in converting exploration licenses to mining licenses. (No) / Partial, explained.

Good practice: A company in good standing on its exploration lease and able to meet mining lease requirements (such as investment and environmental and social conditions) should have priority in obtaining a mining lease in the same area as the exploration lease.

Evidence: From interviews with mining companies and authorities on cases where conversion from exploration to mining license was not granted. It is important to gather documented evidence. An example of a case handled by legal firms or an extract from a government or expert report could be supporting evidence.

60. In practice, are license holders able to transfer their licenses to eligible companies?


Answer: A company holding a license is able to transfer it to another company provided normal transfer conditions and costs are met. (Yes) / Companies are unable to transfer licenses to qualified companies even when normal transfer conditions and costs are met. (No) / Partial, explained.

Good practice: A company holding a license is able to transfer it to another company qualified for the task and which is able to meet normal transfer conditions and costs.

Evidence: Interviews with mining companies and authorities on cases where transfer to an “eligible” third party was not granted. It is important to gather documented evidence. An example of a case handled by legal firms, or an extract from a government or expert report could be used as supporting evidence.


C1.6 Managing Licenses Effectively

61. To what extent are the legislated timeframes for license application and allocation followed?


Answer: Legislated timeframes are met in most cases (i.e., >90% of the time - Yes), legislated timeframes are met in the majority of cases (i.e., >50% of the time - Partial), Legislated timeframes are not met in the majority of cases (i.e., less than 50% of the time - No).

Good practice: Legislated timeframes are met; reasons for delays in meeting timeframes are explained to applicants in a timely manner.

Evidence: The time taken for various licensing processes (application, approval, granting, renewal, etc.) could be provided by exploration/mining companies and compared with legislated timeframes, and then expressed a percentage of the number of valid licenses (or applications/year) where legislated timeframes are followed. Refer to the mining regulations and the rules published by the ministry or MCO and get evidence on their application by exploration and mining companies, as well as MCO officials. Ideally, claims should be supported by examples of the time taken relative to legislated timeframes. The confirmation of document contents (regarding the suitability of the applicant, financial resources, technical skills, etc.) and all necessary review should be done in accordance with the legislated timeframe for a particular process.

62. To what extent is the cadastre system mostly free of long-standing pending applications?


Answer: There are few long-standing pending applications (Yes) / There are many long-standing pending applications (No) / Partial, explained (for example, there is a moderate number of long-standing pending applications).

Good practice: Applications are either accepted or rejected within the legislated timeframe for a particular process. If applications do not meet established and known requirements, they are rejected and the applicant has an opportunity to correct and re-submit. If applications meet requirements but are not successful (for example, under a First Come, First Served process) they are rejected without delay.

Evidence: Length of the list of long-standing pending applications and justification given for long-standing pending applications.


63. In the case of FCFS (First Come, First Served), to what extent are applications time-stamped as they are received?


Answer: An automated system records the date and precise time of every fully completed application. (Yes) / There is no time stamping. (No) / Partial, explained (for example, time stamping occurs but there are concerns regarding the transparency and security of the registering methodology).

Good practice: An automated system records (to the second) the date and time of receipt of fully completed application. Applications received earlier must be adjudicated completely before any subsequent applications on overlapping ground are looked at (and so there can be no comparison of applicants).

Evidence: Evidence of applications being timestamped and receipts showing this being provided.

64. To what extent are the sanctions regarding licenses for non-performance by companies enforced?


Answer: License holders who fail to comply with license requirements are sanctioned in a timely fashion as per the law or regulations, with no discretion applied regarding the nature of non-performance or the license holder. (Yes) / Companies are not sanctioned for non-compliance. (No) / Partial, explained.

Good practice: Any license holder who does not meet conditions of their license (including failure to report or pay on time) is sanctioned in a timely fashion as per the law or regulations.

Evidence: Reports from the MCO and with examples of enforcement.

65. To what extent are the timelines for deciding on exploration and/or mining rights applications compatible with the timelines of other required permits?


Answer: Timelines are fully compatible and harmonized with any other permit requirements. (Yes) / Significant issues are experienced between the timelines to obtain mining permits and those of other required permits. (No) / Partial, explained.

Good practice: Timelines for deciding on exploration and/or mining rights applications are compatible with the processing timelines of any other required permit.

Evidence: Whether environmental permits are required before licenses are issued or afterwards should be noted. If before, are the prescribed periods of time adequate for the environmental permits to be issued within the regulated time for a license application and approval?


66. To what extent is the timeframe for the approval of exploration work programs followed? Response from: Industry.

Answer: Legislated timeframes are met in most cases (i.e., >90% of the time - Yes), legislated timeframes are met in the majority of cases (i.e., >50% of the time - Partial), Legislated timeframes are not met in the majority of cases (i.e., less than 50% of the time - No).

Good practice: The timeframe for the approval of exploration work programs as established in law or regulation is followed.

Evidence: Actual time required for approval of exploration work programs as provided by companies and mining authority, supported by case study evidence.

67. Towhatextentistheunitmanagingthemonitoringoflicensesstaffedappropriatelytoperform its duties?


Answer: The unit managing the monitoring of licenses is staffed appropriately to perform its duties. (Yes) / The unit managing the monitoring of licenses is not staffed appropriately to perform its duties. (No) / Partial, explained.

Good practice: The unit managing license monitoring is staffed to perform its designated duties.

Evidence: Details of staff number and qualifications, and work load.

68. To what extent is the unit managing the monitoring of licenses receiving an adequate operational budget to perform its duties?


Answer: The unit managing the monitoring of licenses has adequate operational budget to perform its duties. (Yes) / The unit managing the monitoring of licenses does not have adequate operational budget to perform its duties. (No) / Partial, explained.

Good practice: The unit managing license monitoring has an adequate operational budget to perform its duties (including necessary field work).

Evidence: Budget details, including funds required to do effective license monitoring and their timely availability.

69. In practice, how long does the approval for exploration license applications take?


Answer: Months taken to approve exploration license applications.

Evidence: Written evidence that has dates of license submission and approval.


2.Operations

A. Policy, Legislation and Regulation

A2.1 Clarity of Legislation, Rules and Timeframes

70. To what extent do regulations cover all relevant mining procedures (exploration, license issuance, work programs, mines inspection, health and safety, explosives, emergency, mine closure, etc.)?

Answer: Regulations cover all relevant mining procedures in detail and are current and relate

to the existing Act. (Yes) / Regulations do not cover all relevant mining procedures in detail and/or are out of date. (No) / Partial, explained.

Good practice: Regulations cover all relevant mining procedures in detail, and are current and relate to the existing Act.

Evidence: Existing regulations.

71. To what extent is the timeframe for the approval of mine development plans set out in the regulations?

Answer: The timeframe for the approval of mine development plans is clearly set out in the

relevant legislation. (Yes) / There are no timeframes set out in legislation for the approval of mine development plans. (No) / Partial, explained.

Good practice: The timeframe for approval of mine development plans is clearly set out in the relevant legislation.

Evidence: Mining regulations.

72. To what extent is the timeframe for the approval of extensions of mining operations set out in the regulations?

Answer: The timeframe for the approval of extensions to mine operations is clearly set out in

the relevant legislation. (Yes) / There are no timeframes set out in legislation for the approval of extensions to mine operations. (No) / Partial, explained.

Good practice: The timeframe for approval of extension of mining operations is clearly set out in the relevant legislation

Evidence: Mining regulations.


A2.2 Harmonization of Legislation and Government Coordination

73. To what extent is mining sector legislation consistent with other relevant legislation?


Answer: Mining sector legislation is fully consistent and harmonized with other relevant legislation. (Yes) / Mining sector legislation is inconsistent with many other pieces of relevant legislation, so creating significant legal ambiguity regarding the status of operations. (No) / Partial, explained.

Good practice: Mining sector legislation is consistent with other relevant legislation.

Evidence: Excerpts of or links to laws.

Note: Other significant areas of legislation (taxation, FDI, health and safety, land, environment, water, labor, etc.) can create ambiguity by contradicting the mining legislation. Areas to look at include different royalty rates, timelines for submitting documents, and the order in which approval by government bodies must be received. Special attention should be paid to the time when the laws were passed as laws passed later may create conflicts with prior laws

74. To what extent are legislation or inter-ministry arrangements covering natural resource issuesthatmaybeaffectedbymineralrights(e.g.,landuse,water,forestsandnaturereserves)welldefinedtominimizeoverlapsorgaps?

Answer: Legislation or inter-ministerial arrangements are well defined and so minimize overlaps or gaps. (Yes) / Legislation or inter-ministerial arrangements are not well defined and so do not minimize overlaps or gaps. (No) / Partial, explained.

Good practice: Legislation is well drafted and many cross references exist between bodies of legislation. MOUs exist to clearly define areas of inter-ministerial cooperation

Evidence: Excerpts of or links to laws.

Note: Review other legislative areas, noting whether laws recognize one another. In some instances, countries may have drafted MOUs between agencies to better coordinate/divide responsibilities (that is, the issue may be addressed through means other than legislation).

75. How clearly does mining or other legislation assign roles and responsibilities between government ministries/agencies in the mining sector?

Answer: Roles and responsibilities of government ministries/agencies in the mining sector are clearly assigned in legislation. (Yes) / Roles and responsibilities of government ministries/agencies are not clearly assigned in legislation. (No) / Partial, explained.

Good practice: Roles and responsibilities of mining and other legislation are clearly defined. Names of institutions and government positions are clearly defined in relation to specific authority.

Evidence: Names of institutions and roles and responsibilities in the mining (or other) law.


A2.3 Provisions for Artisanal and Small-scale Mining

76. To what extent is there a regulation in place that allows the formalization of artisanal and small-scale miners?

Answer: Regulation clearly identifies the process for formalization of ASM. (Yes) / Regulation does not allow for the formalization of ASM. (No) / Partial, explained.

Good practice: Legislation clearly identifies the process for formalization of ASM.

Evidence: Policy and mining regulations that allow artisanal and small-scale miners to obtain mineral rights. Formal mining rights can be acquired either individually or through an associative system (such as cooperatives). These permits or licenses need to be tailored to ASM as such miners cannot meet the financial and bureaucratic requirements used for industrial miners.

77. To what extent is artisanal and small-scale mining legally recognized in the mining law or regulations?

Answer: Law or regulation recognizes the claims and rights of artisanal and small-scale

mining. (Yes) / Law or regulation does not recognize the claims and rights of artisanal and small-scale mining. (No) / Partial, explained.

Evidence: National policies, laws and regulations.

Note: Definition of ASM varies by country and relates to the degree of mechanization, level of production or depth.

78. To what extent do the laws and regulations allow for artisanal and small-scale and industrial mining activities to coexist?

Answer: Laws and regulations provide for ASM and industrial mining activities to coexist. (Yes) / Laws and regulations do not allow coexistence of ASM and industrial mining. (No) / Partial, explained.

Good practice: Where ASM is relevant to a country’s mining sector, legislation to provide frameworks and mechanisms for ASM and industrial scale mining activities to coexist.

Evidence: Mining regulations that allow artisanal mining to take place on parts of or adjacent to industrial mining license areas.

Note: Coexistence is defined as ASM activities taking place on industrial mining license areas with the consent of the companies and government. Some industrial mining companies allow ASM to take place on parts of their licensed areas (an arrangement that may strengthen their relationship with local communities) but this is only possible where the legal framework allows for it.


79. To what extent are there detailed laws and regulations to settle disputes between ASM and other mining activities?

Answer: Detailed laws and regulations exist to settle disputes between ASM and other mining activities. (Yes) / Laws and regulations to settle disputes between ASM and other mining activities do not exist. (No) / Partial, explained.

Good practice: There are detailed laws and regulations to settle disputes between ASM and other mining activities

Evidence: Mining regulations or other evidence of dispute resolution mechanisms.


B2.1 Access to Land, Compensation and Resettlement

80. To what extent does the holder of a mineral right have guaranteed access rights to (surface) land to conduct work?

Answer: The holder of a mineral right has guaranteed access rights to (surface) land to conduct work with the approval of the landowner prior to entry. (Yes) / The holder of a mineral right does not have guaranteed access rights to (surface) land to conduct work. (No) /Partial, explained.

Good practice: The holder of a mineral right (whatever type of license or lease) has the right to enter the property to conduct work, but with the approval of the landowner prior to entry. The surface rights’ owner cannot prohibit entry (it would override the authority of the owner of the subsurface minerals, the state) but a mineral right holder needs to negotiate the terms of access, timing, how to compensate for damages, and so on.

Evidence: Mining regulations. Note if such negotiations are required prior to the granting of a license, after receiving a license or only when actual access is required for a specific part of a license. The actual situation may be a combination of the two: the company and landowner or community negotiates but if they cannot come to an agreement (possibly within a specified time period), the government steps in.


81. To what extent is there an established procedure following Equator Principles for the resettlement of communities displaced by mining activities?

Answer: An established procedure following all elements of the Equator Principles relevant to

resettlement is followed. (Yes) / There is not an established procedure following the Equator Principles relevant to resettlement that is followed. (No) / Partial, explained (for example, only some of the relevant Equator Principles are followed).

Good practice: There is an established procedure following Equator Principles for the

resettlement of communities displaced by mining activities.

Evidence: Whether established procedures are consistent with or directly reference the Equator Principles.

Note: See the International Finance Corporation (IFC) performance standard 5 for requirements of the resettlement policy.

http://www.ifc.org/wps/wcm/connect/3d82c70049a79073b82cfaa8c6a8312a/PS5_English_2012.pdf?MOD=AJPERES.

The key objectives of the resettlement policy are to:

• Avoid forced eviction.

• Anticipate and avoid—or where avoidance is not possible, minimize adverse social and economic impacts from land acquisition or restrictions on land use by (i) providing compensation for loss of assets at replacement cost, and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation and the informed participation of those affected.

• To improve, or restore, the livelihoods and standards of living of displaced persons.

• To improve living conditions among physically displaced persons through the provision of adequate housing with security of tenure at resettlement sites.


82. To what extent does the government enforce the legal requirements to resettle communitiesaffectedbyminingactivities?

Response from: CSOs.

Answer: The government always enforces the legal requirements to resettle communities affected by mining activities. (Yes) / The government never enforces the legal requirements to resettle communities affected by mining activities. (No) / Partial, explained / Not Applicable (when there are no such legal requirements).

Good practice: The government consistently enforces the legal requirements to resettle communities affected by mining activities.

Evidence: Cases inconsistent with the Equator Principles.

Note: See the International Finance Corporation (IFC) performance standard 5 for requirements of the resettlement policy:

http://www.ifc.org/wps/wcm/connect/3d82c70049a79073b82cfaa8c6a8312a/PS5_English_2012.pdf?MOD=AJPERES.

The key objectives of the resettlement policy are to:

• Avoid forced eviction.

• Anticipate and avoid—or where avoidance is not possible, minimize—adverse social and economic impacts of land acquisition or restrictions on land use by (i) providing compensation for loss of assets at replacement cost; and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation, and informed participation of those affected.

• Improve, or restore, the livelihoods and standards of living of displaced persons.

• Improve living conditions among physically displaced persons through the provision of adequate housing with security of tenure at resettlement sites.

83. Is there an established procedure for the payment of compensation to landowners (and/or users) when exploration and mining activities interfere with their activities?

Answer: There is an established procedure for the payment of compensation to landowners

(and/or users) when exploration and mining activities interfere with their activities. (Yes) / There is no such procedure. (No) / Partial, explained.

Good practice: There is an established procedure for the payment of compensation to landowners (and/or users) when exploration and mining activities interfere with their other activities

Evidence: Mining authorities and the environmental protection agency (EPA) have relevant data but interviews with mining companies may reveal more reliable and up-to-date information.


84. To what extent does the government enforce the legal requirements of mining companiestocompensatepeopleaffectedbyminingactivities?


Answer: Government always enforces the legal requirements of mining companies to compensate people affected by mining activities. (Yes) / Government does not enforce the legal requirements of mining companies to compensate people affected by mining activities (No) / Partial, explained.

Good practice: Government consistently enforces the legal requirements of mining companies to compensate people affected by mining activities, and legal requirements are consistent with the Equator Principles.

Evidence: Mining authorities and the environmental protection agency (EPA) have information on procedures to follow for compensation. Respondents should cite examples when certain procedures were not followed.

Note: Compensation rates (for instance, the value of a tree removed or hectare of crop) may be based on government rates or negotiated between a company and landowner/user.

B2.2 Access and Accountability of Mining Legislation and Processes

85. To what extent are the key laws and regulations governing mining operations available from a single and up-to-date online government source?

Answer: All key laws and regulations governing mining operations are available from a single and up-to-date online government source. (Yes) / No laws and regulations are available from a single and up to date online government source. (No) / Partial, explained (for example, the online source is not up-to-date or not all laws and regulations are available on it).

Good practice: All key laws and regulations governing mining operations are available from a single and up-to-date online government source

Evidence: Websites with links.


86. To what extent does the legislative branch carry out an oversight role regarding the mining sector beyond the consideration and approval of legislation?


Answer: The legislative branch consistently carries out an oversight role that is more than the consideration and approval of legislation. (Yes) / The legislative never carries out an oversight role that is more than the consideration and approval of legislation. (No) / Partial, explained.

Good practice: The legislative branch practices a defined oversight role of the mining sector that is more than the consideration and approval of legislation. One common form of this role is for a legislative sub-committee to provide oversight of the sector through hearings that are held with members of the legislature and others.

Evidence: Oversight functions relating to mining contracts, the operations of the ministry, the implementation of the legal framework, and the process for consultation when legislative changes are contemplated.

87. In the law, is there a domestic process to appeal decisions by mining authorities that is outside and independent of the mining ministry?

Answer: Yes/No.

Evidence: May be extracted from the constitution, mining law/regulations or guidelines used by mining authorities.

88. To what extent is this independent domestic appeal process able to challenge decisions by mining authorities?

Response from: Industry, experts.

Answer: Decisions of mining authorities can be challenged through a domestic appeal process. (Yes) / Decisions of mining authorities cannot be challenged through a domestic appeal process. (No) / Partial, explained.

Good practice: Decisions of mining authorities can be challenged through a domestic appeal process.

Evidence: May include examples from legal firms and reports from mining companies and mining authorities.

Note: An appeals process that is operational would be timely and independent, and involve due process. The process can either take place via arbitration or through courts. Verify if the most important cases are going straight to international arbitration as opposed to domestic arbitration.


B2.3 Artisanal and Small-scale Mining Voice Representation

89. Is there a non-state association that represents artisanal and small-scale miners?

Answer: Yes/No/Not applicable (there are no artisanal and small-scale miners).

Good practice: There is a non-state association that represents artisanal and small-scale miners.

Evidence: A website or report that provides proof of such an association’s existence.

Note: If there is more than one such association, mention the main ones and their priority activities.

90. To what extent do artisanal and small-scale miner associations participate in the monitoring, advocacy and enforcement of their property rights?


Answer: Artisanal and small-scale miner associations consistently participate in the monitoring, advocacy and enforcement of ASM property rights. (Yes) / Artisanal and small-scale miner associations never or very rarely participate in the monitoring, advocacy and enforcement of ASM property rights. (No) / Partial, explained.

Good practice: Artisanal and small-scale mining associations participate in the monitoring, advocacy and enforcement of ASM property rights.

Evidence: Description of activities undertaken by ASM associations.


C2.1 Timeframes for Approvals

91. To what extent is the timeframe for the approval of a mine development plan followed? Response from: Industry.

Answer: The legislated or regulated timeframe for approving mine development plans is consistently followed. (Yes) / The legislated or regulated timeframe for approving mine development plans is not followed. (No) / Partial, explained.

Good practice: The legislated or regulated timeframe for approving mine development plans is consistently followed.

Evidence: Mining companies provide examples of where the timeframe for approving mine development plans is followed or is not followed; claims should be supported by examples of dates of approval.


92. To what extent is the timeframe for the approval of an extension of a mining operations followed?


Answer: The legislated or regulated timeframe for approving extensions of mining operations is consistently followed. (Yes) / The legislated or regulated timeframe for approving extensions of mining operations is not followed. (No) / Partial, explained.

Good practice: The legislated or regulated timeframe for approving extensions of mining operations is consistently followed.

Evidence: Mining companies provide examples of where the timeframe for approving extensions of mining operations is followed or is not followed; claims should be supported by examples of dates of approval.

C2.1 Intra-governmental Coordination

93. Howcommonareconflictsbetweengovernmentministries/agenciesover the rolesand responsibilities assigned for the mining sector?


Answer: Conflicts between government ministries/agencies over the roles and responsibilities assigned to them for the mining sector occur frequently. (Yes) / Conflicts between government ministries/agencies over the roles and responsibilities assigned to them for the mining sector never or very rarely occur. (No) / Partial, explained (for example, citing cases and the process, timeframe and institution involved).

Good practice: There is clarity on the roles and responsibilities of government ministries and agencies concerning the mining sector so there is no conflict caused by uncertainty about which ministry/agency should take the lead for particular issues.

Evidence: Examples of conflicts. Examples of multi-ministerial responsibilities and challenges are: If there is a labor dispute involving a mine, does legislation or regulations make clear who has the jurisdiction to mediate (for instance, Ministry of Mines or Ministry of Labor)? If a mine collapses, is it clear who should mediate?

94. To what extent are there formal mechanisms for sharing information between government agencies closely working on mining (MOUs, intra-governmental working groups)?

Answer: Yes/No/Partial, explained.

Evidence: MOUs or regulations. The agencies should include, for example, the ministry of mines, ministry of environment (or water), environmental agency, tax authority and ministry of finance.


95. To what extent is there regular sharing of information between government agencies that have regulatory responsibilities for the mining sector?


Answer: Government agencies with regulatory responsibilities for the mining sector frequently and extensively share information. (Yes) / Government agencies with regulatory responsibilities for the mining sector do not information. (No) / Partial, explained (for example, some ad hoc sharing).

Good practice: Government agencies with regulatory responsibilities for the mining sector have and use formal (e.g., empowered inter-ministerial working groups) and informal (e.g., encouraged inter-ministerial personal contact and communication) mechanisms to share information on common concerns.

Evidence: Relevant agencies include the ministry of mines, mines agency, ministry of environment (or water), environmental agency, ministry of finance and tax authority. Information shared should include contracts, permits, payment information and geodata.

96. Towhatextentarethereinstanceswheremineralrightsconflictwithotherlegislationon natural resources (e.g., on land use, water, forests or nature reserves)?

Response from: CSOs, experts.

Answer: There are many instances where mineral rights conflict with other legislation on natural resources. (Yes) / Conflict in legislation between mineral rights and other natural resources does not occur or is very rare. (No) / Partial, explained.

Good practice: Conflict in legislation between mineral rights and other natural resources is avoided.

Evidence: Interviews with mining companies that have received licenses, explored areas, converted exploration licenses to mining leases/licenses, and so on. Also, discussion with legal firms that have reviewed relevant legislation.

C2.1 Support to Artisanal and Small-scale Mining

97. Is there a dedicated unit within the ministry responsible for mining that deals with ASM?

Answer: Yes/No/Not Applicable (there is no ASM). Evidence: Mandate of the dedicated unit. Note: “Dedicated” means only dealing with ASM.


98. To what extent is support provided by government to artisanal and small scale miners concerning technical or business skills?

Answer: Considerable support is provided by government to artisanal and small scale miners concerning technical or business skills. (Yes) / No support is provided by government to artisanal and small scale miners concerning technical or business skills. (No) / Partial, explained. / Not Applicable (there is no ASM).

Evidence: Reports and/or budgets of relevant public, private or CSO support programs.

99. To what extent is the government effectively using a dispute resolution systemdedicated to ASM to tackle disputes between artisanal and small scale mining and other mining activities?


Answer: A dispute resolution system dedicated to ASM is used to tackle disputes between ASM and other mining activities in most cases where disputes occur. (Yes) / A dispute resolution system dedicated to ASM is note used to tackle disputes between ASM and other mining activities. (No) / Partial, explained. / Not Applicable (because, for example, there is no dispute resolution system dedicated to ASM issues or there is no ASM).

Good practice: A dispute resolution system dedicated to ASM issues is in place and is effectively used to tackle disputes.

Evidence: Documentation that indicates how specific disputes have been tackled or have not reached the dispute resolution mechanism.

100. To what extent is ASM permitted on areas of industrial mining activity?

Response from: Government, Industry, CSOs.

Answer: ASM is permitted on areas within an industrial mining lease area. (Yes) / ASM is not permitted in an industrial mining lease area. (No) / Partial, explained. / Not Applicable (there is no ASM).

Good practice: ASM is permitted on suitable areas within mining lease areas in a way that does not interfere with the activities of the industrial miner leaseholder.

Evidence: Examples of ASM activities taking place on industrial mining license areas with the consent of the companies and government (which is defined as “coexistence”).

Note: Some industrial mining companies allow ASM to take place on parts of their licensed areas but this is only possible where the legal framework allows for it.


101. To what extent are artisanal and small-scale miners legally allowed to operate?


Answer: Artisanal and small-scale miners are allowed to operate without restriction within the framework of the law. (Yes) / Artisanal and small-scale miners are not legally allowed to operate. (No) / Partial, explained (for example, limits of areas and minerals in which ASM is allowed). / Not Applicable (there is no ASM).

Good practice: Artisanal and small-scale miners are legally allowed to operate as such and under licensing, fiscal, environmental and other conditions appropriate to their economic, technological and social conditions.

Evidence: ASM is able to operate consistent with legislation and regulation.

Note: In some cases, the law sets such stringent criteria for the legal recognition of ASM operations but these are not enforced in practice.

102. To what extent is artisanal and small-scale mining taking place under formalized procedures?


Answer: Artisanal and small-scale mining (ASM) operations take place under formalized procedures. (Yes) / Most ASM operations do not take place under formalized procedures. (No) / Partial, explained. / Not Applicable (there is no ASM).

Good practice: ASM operates in accordance with the law and regulations that support licensing, fiscal, environmental and other conditions appropriate to the economic, technological and social conditions of ASM.

Evidence: Documentation on the extent to which ASM operates consistently with the law and regulations that govern ASM.

Note: These permits or licenses need to be tailored to ASM as such miners cannot meet the financial and bureaucratic requirements used for industrial miners.


3.Taxation and State Participation


A3.1 Tax Policy and Instruments

103. Is it clear in the law which government agencies have the authority to collect taxes and payments from resource companies?

Answer: Yes/No.

Evidence: Mining and tax regulations.

Note: In many countries, the ministry of finance or revenue authority collects taxes while the ministry of mines collects royalties and surface rentals. If there is state participation, the dividends will typically be collected by the state-owned company.

104. To what extent are taxes from mining required by law to be placed in the national treasury?

Answer: All taxes from mining are required by law to be placed in the national treasury. (Yes) / Taxes from mining are not required by law to be placed in the national treasury. (No) / Partial, explained (for example, instances where taxes are not required to be placed in the national treasury).

Evidence: Mining and tax regulations, confirmed by public financial management experts.

Note: Revenues include those collected by state-owned companies, regulatory agencies, ministries, special funds or the tax authority. There can be an exception for revenue-sharing schemes where revenues go directly to local communities. Similar exceptions can be made for relatively small fees that go to implementing agencies.

105. Does the legislation prescribe rates, formulas and bases for the main elements of the fiscalregime?

Answer: Legislation prescribes rates, formulas and bases for the main elements of the fiscal regime and, if there is a limited set of negotiable fiscal terms within clear boundaries (such as bonus or tax rates), tax bases and key provisions follow a model agreement. (Yes) / Legislation does not prescribe rates, formulas and bases for the main elements of the fiscal regime, and the tax base and rates are all left open for negotiation, (No) / Partial, explained.

Evidence: Extract from mining legislation.


106. Towhat extent are therewell-definedprovisions for the renegotiation or reviewoffiscalterms?

Answer: The renegotiation or review of fiscal terms is based on well-defined provisions (such as price, return or time. (Yes) / There are no provisions for the renegotiation or review of fiscal terms. (No) / Partial, explained.

Good practice: The renegotiation or review of fiscal terms is based on well-defined triggers such as price, return or time.

Evidence: Extracts from mining legislation or recent contracts.

107. To what extent does the mining or investment legislation provide clear rules on the types of tax incentives that can be granted to large investors?

Answer: There are clear rules in the legislation on the types of tax incentives that can be granted to large investors. (Yes) / There are no clear rules in the legislation on the types of tax incentives that can be granted to large investors. (No) / Partial, explained.

Good practice: There are clear rules on the types of tax incentives that can be granted to large investors, and the size of investment that triggers incentives.

Evidence: Extract from mining or investment legislation.

108. Towhatextentdoesthefiscalregimeensurethatthegovernmenthasanadequateminimum revenue stream in all production periods?

Answer: An adequate minimum revenue stream is ensured in all production periods. (Yes) / An adequate minimum revenue stream is not ensured, including because a royalty rate is either so high that it discourages production and encourages smuggling across borders, or it is so low that it provides limited take and encourages a race to the bottom across peers. (No) / Partial, explained.

Evidence: Based on International Monetary Fund (IMF)/World Bank or other independent evaluation of fiscal terms, alongside inputs from mining fiscal experts, industry and CSOs.

Note: Royalty rates should be assessed for the main minerals produced against peer group and geological endowment. “Further insight is available from the IMF (2012), Fiscal Regimes for Extractive Industries: Design and Implementation.

109. Towhatextentdoestheminingfiscalregimeincludeprogressivefiscalinstruments?

Answer: The fiscal regime is progressive in that it captures an increased share of revenues as rents increase. (Yes) / There are no progressive components in the fiscal regime. (No) / Partial, explained.

Evidence: Based on International Monetary Fund (IMF)/World Bank or other independent evaluation of fiscal terms, plus inputs from mining fiscal experts, industry and CSOs. The fiscal regime should be assessed based on corporate income taxes, resource rent tax rates and sliding scale or formula-based royalties on price or profitability. A World Bank report on fiscal terms (forthcoming) should provide a basis for the analysis. Further insight is available from the IMF (2012), Fiscal Regimes for Extractive Industries: Design and Implementation.


110. To what extent are there clear rules in the tax code or regulations for the following payment processes:

• Timeframes? • Accounts to pay taxes into? • Documents evidencing payment and receipt? • Settling disputes?

Answer for each point: There are clear rules in the tax code or regulations. (Yes) / There are no rules in the tax code or regulations. (No) / Partial, explained (for example, there are some rules but they are not clear).

Evidence: Legislation; may be verified with the tax authority and tax lawyers.

111. DoesthegovernmenthaveasimplifiedtaxcollectionsystemforASM?

Answer: Yes/No.

Evidence: Government regulations or description from mining authority website. In some countries the system is integrated into, for instance, small taxpayers’ procedures.

A3.2 Rules for Auditing, Base Erosion and Profit Shifting

112. According to regulations, to what extent are regular tax, cost or physical audits required to be conducted of small-scale operators and large mining companies?

Answer: Regular tax, cost or physical audits are required for all size mining operators. (Yes) / Tax, cost or physical audits are not required of all size mining operators. (No) / Partial explained (for example, regular tax, cost or physical audits are only required for large mining companies).

Good practice: Regular (at least annual) audits are required for all size operators

Evidence: Extract from regulations, and procedures or guidelines for audits.

Note: Physical audits are the physical checking or measuring by controllers of the amount of minerals that have been extracted, and the arrangements for transporting, processing or selling those resources. Audits should include small-scale operators, not only large mining companies.

113. Is there a legal provision providing for an arm’s-length principle for regulation of transfer-pricing practices?

Answer: Yes/No.

Evidence: Extract from legislation. Further guidance and answers to the question for a large set of countries are available in Transfer Pricing in Mining: An African Perspective (IM4DC, 2014); see also an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).


114. To what extent are there clear documentation requirements to demonstrate compliance with transfer pricing rules?

Answer: There are clear documentation requirements to demonstrate compliance with transfer pricing rules. (Yes) / There are no clear documentation requirements to demonstrate compliance with transfer pricing rules. (No) / Partial, explained (for example, there are requirements, but they are not clear).

Evidence: Regulations or guidelines. These should include clear provisions for the burden of proof and penalties for noncompliance (note that in some cases these provisions apply only to large taxpayers). Further guidance and answers to the question for a large set of countries are available in Transfer Pricing in Mining: An African Perspective (IM4DC, 2014); see also an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).

115. To what extent are there clear procedures for using advanced pricing agreements to limit transfer pricing?

Answer: There are clear procedures for using advanced pricing agreements to limit transfer pricing. (Yes) / There are no clear procedures for using advanced pricing agreements to limit transfer pricing. (No) / Partial, explained (for example, there are procedures, but they are not clear).

Evidence: Regulations or guidelines. Note that in some cases these provisions apply only to large taxpayers. Further insight may be gained in an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).

116. Is there an annual disclosure requirement for related party transactions?

Answer: Yes/No.

Good practice: All related party transactions are required to be disclosed. In some cases this will only be required on request by the tax authority.

Evidence: Regulations or guidelines. Further guidance and answers to the question for a large set of countries are available in Transfer Pricing in Mining: An African Perspective (IM4DC, 2014); see also an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).

117. To what extent do the legal provisions limit the risk from thin capitalization?

Answer: Both the arm’s length principle (or other mechanism to limit the rate of interest) and debt to equity caps (to limit the amount of allowable debt and resulting interest expense for tax purposes) are in place (Yes) / Neither the arm’s length principle (or other mechanisms to limit the rate of interest) and debt to equity caps (to limit the amount of allowable debt and resulting interest expense for tax purposes) are in place (No). / Partial, explained.

Evidence: Extract from legislation. The legal provision should provide for a limitation on the amount of allowable debt, and resulting interest deductible when assessing the firm’s profits. This can be done through arm’s length criteria applicable to interest rates as part of a general transfer-pricing rule. An alternative is to specify a margin over an international monetary interest rate, used as a benchmark. Another complimentary approach is to impose a cap on the debt-to-equity ratio. For further insight, see Thin Capitalization: A Background Paper for Country Tax Administrations (OECD, 2012).


A3.3 State Owned Enterprise Governance Rules

118. To what extent does law or regulation require mining sector SOEs to adhere to good corporate governance when examining the Board’s composition?

Answer: The Board includes independent members with private sector experience, the positions of chair and chief executive officer (CEO) are separate, and no elected officials serve on the Board. (Yes) / The Board does not include independent members with private sector experience, the positions of chair and chief executive officer (CEO) are combined, and elected officials serve on the Board. (No) / Partial, explained.

Evidence: Laws establishing the SOE or the charter or bylaws of the SOE.

Note: The board should include independent members with private sector experience, the positions of chair and chief executive officer (CEO) should be separate, and the board should not be so large as to undermine effective deliberation. This can be scored if there are clear criteria set in the law for being a member of the board. “Independent” means having broad government representation on the board or experts who are not political. No ministers or elected officials can serve on the board. (Based on the OECD’s Guidelines on Corporate Governance of State-Owned Enterprises, 2005.)

119. WheretheminingSOEengagesinquasi-fiscalactivities,towhatextentaretherolesand responsibilities of the SOE to provide subsidies or social expenditures (quasi-fiscalactivities)clearlysetout?

Answer: The roles and responsibilities of SOEs to provide subsidies or perform public services are clearly set out (Yes) / The roles and responsibilities of SOEs to provide subsidies or perform public services are not clearly set out or do not exist. (No). Partial, explained. / Not applicable (for example, where there is no mining SOE or the mining SOE does not perform quasi-fiscal activities).

Evidence: Laws establishing the SOE or the charter or bylaws of the SOE.



B3.1 Accountability of Mining Taxation

120. To what extent are changes to mining tax legislation done through a consultative process that is timely, meaningful, comprehensive and transparent?


Answer: Changes to mining tax legislation are always done through a consultative process that is timely, meaningful, comprehensive and transparent. (Yes) / Timely, meaningful, comprehensive and transparent consultation does not take place. (N) / Partial explained.

Good practice: Consultation is timely (held at a times when it can be considered in legislation design and revision), meaningful (it is considered and taken into account as appropriate), comprehensive (with the range of key stakeholders), and transparent (either received in public forums or published for public review).

Evidence: Details of consultation in connection with the last review of the mineral tax code. Consultation should include civil society and industry representatives, chamber of mines and similar entities.

121. Does the country disclose through EITI or another disclosure process, details of mining revenues?

Answer: Yes/No (name the process if not EITI)

Evidence: Published reports on mining revenues that provide a comprehensive overview of mining production and revenues.

Note: There may be a lag between the end of the fiscal year and the report being published.

122. Aregovernmentofficialswitharoleintheoversightoftheminingsectorrequiredtodiscloseinformationabouttheirfinancialinterestsinanyextractiveactivityorproject?

Answer: Yes/No.

Evidence: Extract from legislation. These rules may not be extractive industry specific and may involve regular asset disclosure by government officials to an anticorruption commission or other integrity institution.


123. Towhatextentdogovernmentofficialswitharoleintheoversightoftheminingsectordiscloseinformationabouttheirfinancialinterestsinanyextractiveactivityorproject?


Answer: All government officials with a role in the oversight of the mining sector disclose their financial interests in any extractive activity or project. (Yes) / Disclosure of financial interests by government officials in extractive activities or projects does not occur. (No) / Partial, explained (for example, disclosure of financial interests occurs sometimes but not by all government officials with an oversight role in the mining sector).

Good practice: Disclosure of financial interests is periodic and all government officials with a role in the oversight of the mining sector disclose.

Evidence: Information on sanctions, dismissals or suspensions for failure to disclose interests and/or assets.

B3.2 State-Owned Enterprise Financial Management

124. If there are State Owned Enterprises (SOEs) in the mining sector, do such SOEs have alegalobligationtopublishfinancialreports?

Answer: Yes/No.

Evidence: Extract from law or regulations. This requirement can be based on a transparency law that applies to state owned corporations, legislation forming the state owned company requiring reporting to the legislature or regulators, or on an SOE’s financial operations in financial markets that put it under the obligation to follow stock and exchange laws.

125. TowhatextentdominingsectorSOEspublishannualfinancialreports?


Answer: Annual financial reports are published on time or with minimal delay by all mining sector SOEs. (Yes) / Annual financial reports of mining sector SOEs are not published. (No) / Partial, explained, (for example annual financial reports are published but often with significant delay).

Good practice: Annual financial reports are published with minimal delay.

Evidence: Website.


126. Are mining SOEs subject by law to annual audits by an independent external auditor?

Answer: Yes/No.

Evidence: Extract from law or regulations. This requirement can be based on legislation forming the state-owned company or on SOE financial operations in financial markets that put it under the obligation to follow stock and exchange laws.

Note: The OECD (2005), in Guidelines on Corporate Governance of State-Owned Enterprises, recommends that annual audits be conducted by an independent, competent and qualified auditor to provide an external and objective assurance to the board and the shareholders that the financial statements fairly represent the financial position and performance of the company in all material aspects.

127. In practice, are annual audits of mining SOEs undertaken by an independent external auditor?


Answer: Yes/No.

Good practice: Annual audits of mining SOEs are undertaken by an independent external auditor.

Evidence: Proof of audit.

128. Do mining SOEs have to follow internationally recognized accounting standards?

Answer: Yes/No.

Note: Many countries use or are converging on the International Financial Reporting Standards (IFRS) that are maintained by the International Accounting Standards Board. However, the Generally Accepted Accounting Principles (GAAP) are followed in the United States and also in other jurisdictions. Financial statements usually note the standards used in the preparation of the report.


C3.1 Mining Tax Administration

129. To what extent does the taxation authority issue guidance notes or interpretations?

Answer: Guidance notes or interpretations are issued consistently and in a clear and timely manner with new pieces of legislation or changes to regulation. (Yes) /Guidance notes or interpretations are never issued with new pieces of legislation or changes to regulation (No) / Partial, explained.

Evidence: Guidance note.

Note: Guidance notes and interpretations aim to promote the fair, unbiased treatment of all taxpayers.


130. To what extent are the bases on which taxes are levied subject to disputes between companies and government?


Answer: The bases on which taxes are often subject to disputes between companies and government. (Yes) / The bases on which taxes are levied are never, or almost never, subject to disputes between companies and government (No) / Partial, explained.

Good practice: The bases on which taxes are levied are not subject to disputes between companies and government.

Evidence: Documentation from the industry, tax lawyers and tax authorities relating to any material tax applicable to mining.

Note: While tax rates are usually straightforward, the tax bases can be less clear (including taxed entities and how the bases are calculated, especially if there are special provisions relating to minerals).

131. To what extent, are tax, cost or physical audits of mining companies conducted systematically?


Answer: All companies are systematically assessed at the same time intervals (with appropriate adjustments for scale of operations and previous history of compliance). (Yes) / Audits are not conducted systematically. (No) / Partial, explained.

Good practice: All companies are assessed at the same time intervals (with appropriate adjustments for scale of operations and previous history of compliance/noncompliance).

Evidence: Reports from authorities indicating what audits they have carried out.

132. To what extent are the timing of physical audits and cost audits of mining companies coordinated?


Answer: Physical and cost audits are always coordinated. (Yes) / Audits are never coordinated. (No) / Partial, explained.

Good practice: Physical and cost audits are coordinated to increase their effectiveness.

Evidence: Reports from authorities indicating what audits they have carried out and whether they are coordinated.


133. To what extent are transfer pricing rules enforced in practice?


Answer: Legal provisions against transfer pricing are enforced in all applicable situations. (Yes) / Legal provisions against transfer pricing are not enforced. (No) / Partial, explained (for example, legal provisions against transfer pricing are enforced in some situations but not systematically).

Good practice: Any legal provision should be enforced in all applicable situations.

Evidence: Information on specific cases.

134. To what extent are there regular audits for transfer pricing of related party transactions and advanced pricing rules for regularly occurring transactions?


Answer: There are regular audits for transfer pricing and advanced pricing. (Yes) / There are no regular audits for transfer pricing and advanced pricing. (No) / Partial, explained (for example, there may be differences in how transfer pricing is audited compared with advanced pricing).

Good practice: Regularly occurring transactions are audited regularly, preferably as part of general audits.

Evidence: May include tax authorities’ schedules of audits undertaken to prevent transfer-pricing practices, verified by companies. If tax authorities do not provide this information, auditing firms, industries and tax lawyers can confirm if such audits are taking place. Note what documents and evidence are required from audited companies to demonstrate compliance. Further insight can be found in an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).

135. To what extent are the advanced pricing rules followed for regularly occurring transactions?

Response from: Government, Industry.

Answer: Advanced pricing rules are followed for regularly occurring transactions in all applicable situations. (Yes) / Advanced pricing rules for regularly occurring transactions are not followed in applicable situations. (No) / Partial, explained.

Good practice: Advanced pricing rules are followed in all applicable situations.

Evidence: May include tax authorities’ schedules of audits undertaken to prevent transfer-pricing practices, verified by companies. If tax authorities do not provide this information, auditing firms, industries and tax lawyers can confirm if such audits are taking place. Note what documents and evidence are required from audited companies to demonstrate compliance. Further insight can be found in an Action Plan on Base Erosion and Profit Shifting (OECD, 2013).


136. To what extent are there regular audits of companies following thin capitalization rules?


Answer: There are regular audits of companies following thin capitalization rules. (Yes) / Companies following thin capitalization rules are not, or almost never, audited. (No) / Partial, explained.

Good practice: Regularly occurring transactions concerning thin capitalization rules are audited regularly, preferably as part of general audits.

Evidence: May include tax authorities’ schedules of audits undertaken to thin capitalization, verified by companies. If tax authorities do not provide this information, auditing firms, industries and tax lawyers can confirm if such audits are taking place. Note what documents and evidence are required from audited companies to demonstrate compliance. For further insight, see Thin Capitalization: A Background Paper for Country Tax Administrations (OECD, 2012).

137. Does the tax administration have a large taxpayer unit/officeor one specialized innatural resources/mining?

Answer: Yes/No.

Evidence: Unit/office website or government regulation.

138. Towhatextentistheunitspecializedintaxationofnaturalresources/miningstaffedappropriately to carry out its activities?


Answer: The unit specialized in taxation of natural resources/mining is appropriately staffed to carry out its mandate (Yes) / The unit specialized in taxation of natural resources/mining is not appropriately staffed to carry out its mandate. (No) / Partial, explained.

Good practice: The unit specialized in taxation of natural resources is staffed to perform its designated duties.

Evidence: Staff numbers and qualifications.


139. To what extent, is the unit specialized in natural resources/mining receiving appropriate funding to carry out its mandate?


Answer: The unit specialized in taxation of natural resources/mining receives appropriate funding to carry out its mandate (i.e., including for salaries, materials, office and IT supplies, internet connections, training and field activities). (Yes) / The unit specialized in taxation of natural resources/mining does not receive appropriate funding to carry out its mandate. (No) / Partial, explained.

Good practice: Allocated and released funding should be sufficient for salaries, work materials, office and IT supplies, internet connections, training and field activities.

Evidence: Budget of unit, including external or donor support received, or fees and revenues they can retain. Independent assessment of tax authorities.

140. Effectiveness in the collection of tax payments—Public Expenditure and FinancialAccounting (PEFA) indicator

Answer: Score A–D based on PEFA methodology, where A represents best performance and D is lowest performance. PEFA PI-15: Assesses (i) collection ratio for gross tax arrears, being the percentage of tax arrears at the beginning of a fiscal year that was collected during that fiscal year (average of the last two fiscal years); (ii) effectiveness of transfer of tax collections to the Treasury by the revenue administration; and (iii) frequency of complete accounts reconciliation of tax assessments, collections, arrears records and receipts by the Treasury.

Note: PEFA letter scores (A, B+, B, C+, C, D+,D) are converted into numerical scores (1…7) for scoring secondary data.

Further insight is available on www.PEFA.org or PEFA (2011), Public Financial Management Performance Measurement Framework.

141. In practice, are taxes and payments only collected by the mandated agencies?


Answer: Yes/No.

Good practice: Taxes and payments are only collected by mandated agencies.

Evidence: As provided by lawyers and mining companies, and confirmed by public financial management experts.


142. In practice, are taxes from mining only placed in the national treasury?


Answer: Yes/No.

Good practice: Taxes from mining are only placed in the national treasury.

Evidence: As provided by lawyers and mining companies, and confirmed by public financial management experts.

Note: Revenues should include those collected by state-owned companies, regulatory agencies, ministries, special funds or the tax authority. There can be an exception for revenue-sharing schemes, where revenues go directly to local communities. Similar exceptions can be made for relatively small fees that go to implementing agencies.

143. Towhatextentarethefiscaltermsinthelawfollowed?


Answer: Fiscal terms are followed in all cases. (Yes) / Fiscal terms are never or rarely followed. (No) / Partial, explained.

Good practice: Fiscal terms in the law are followed in all cases.

Evidence: To be derived from mine development agreements and information from law experts, confirmed by extracts from agreements, reports from the government and the Extractive Industries Transparency Initiative (EITI) and verified company information on contract terms (such as audited annual reports).

There may be provision in mine development agreements or contracts for exemptions/derogations from the rates and bases of fiscal terms set in legislation. Note if mine development agreements or contracts were signed before the mining or relevant fiscal legislation was adopted.

144. To what extent are the terms for investment incentives in the law followed?


Answer: Investment incentives in the law are followed in all relevant cases. (Yes) / Investment incentives in the law are never or rarely followed. (No) / Partial, explained.

Good practice: Investment incentives in the law are followed in all relevant cases.

Evidence: May be derived by comparing information in the law with government reports on the investment incentives granted.


C3.2. State-Owned Enterprise Governance

145. To what extent do mining sector SOEs have a board with: independent expert members withprivatesectorexperience,separatepositionsofchairandchiefexecutiveofficer,and a board of a reasonable size?


Answer: Mining sector SOEs have boards with independent expert members with private sector experience and separate positions of chair and chief executive officer, and boards are of a reasonable size. (Yes) / Mining sector SOEs do not have boards that meet the above listed criteria. (No) / Partial, explained.

Good practice: The board includes independent members with private sector experience, the positions of chair and chief executive officer (CEO) are separate, and the board is not be so large as to undermine effective deliberation.

Evidence: Confirmation of independent expert members on the board of the SOE.

Note: “Independent” means having broad government representation on the board or experts who are not political. No ministers or elected officials can serve on the board. [Based on the OECD’s Guidelines on Corporate Governance of State-Owned Enterprises (2005)].

146. Is there an internal audit department within mining SOEs?

Answer: Yes/No

Evidence: Laws establishing the SOE or the charter or by-laws of the SOE.

Note: This would include an internal audit department and risk management systems.

147. Inpractice,doestheinternalauditdepartmentofminingSOEsreviewtheeffectivenessof internal controls annually?


Answer: Yes/No.

Good practice: The effectiveness of internal controls is reviewed annually by the internal audit department.

Note: The review should look at the effectiveness of functional, operating, and financial reporting. (Based on the OECD’s Guidelines on Corporate Governance of State-Owned Enterprises, 2005.)


148. To what extent do mining SOEs follow the role (including any subsidies or social expenditures) set out for them?


Answer: Mining SOEs consistently follow the role set out for them. (Yes) / Mining SOEs are not following the roles set out for them. (No) / Partial, explained.

Good practice: Mining SOEs consistently follow the roles set out for them.

Evidence: Do SOEs provide public goods and services (for example, water, energy, schooling, and health access)? What percentage of SOE expenditures are spent on commercial activities and reinvestment in the company versus on social expenditures?

149. To what extent, aremining SOEs or state equity partners honoring their financialobligations?


Answer: Financial obligations, cash calls for joint ventures or for investments, are consistently met in a complete and timely fashion. (Yes) / Non-honouring of financial obligations has happened on multiple occasions. (No) / Partial, explained.

Good practice: Financial obligations, cash calls for joint ventures or for investments, are met in a complete and timely fashion.

Note: This indicator measures the political risk associated with state equity on a four-point scale compared with peers. In many cases the private partner has to make a loan to the state company at commercially reasonable rates.


4.Revenue Distribution and Management


A4.1 Public Financial Management and Revenue Sharing

150. Are arrangements for resource revenue sharing between central and sub-national governmentsdefinedbylegislation?

Answer: Yes/No.

Evidence: Extract from the law or contracts. Also describe the institutional and legal arrangements and include revenue sharing formulas and responsible institutions.

151. Are ministries required to undertake procurement plans for infrastructure projects according to the laws and regulation?

Answer: Yes/No.

Good practice: The use of procurement plans is required by the law.

Evidence: Extract from law/regulation.

Note: Refer to Q11 of the World Bank’s Public Investment Management Framework. Country studies have been completed for a large number of countries: http://go.worldbank.org/90X7V5NOJ0.

152. In the regulation, to what extent is it clear when and how yearly budget allocations to sub-national governments should be disbursed?

Answer: The regulations are clear on the timing and method of disbursement of yearly budget allocations to sub-national governments. (Yes) / The regulations are not clear on the timing and method of disbursement of yearly budget allocations to sub-national governments. (No) / Partial, explained (for example, the rule for the disbursement of a quarterly budget allocation is decided only at the beginning of each year). / Not Applicable means that that is no regulation on yearly budget allocations to sub-national governments.

Good practice: The regulations are clear on timing and method of disbursement of yearly allocations to sub-national governments.

Evidence: Excerpts of regulations of subnational allocation disbursement. A typical rule would say something like X percent of allocation on every Xth day of the quarter. The lack of such regulations can be ascertained by ministry officials and public finance experts.


A4.2 Macrofiscal Management Rules and Stabilization

153. Does the law provide for a fund to protect budget expenditures from revenue volatility using savings or other funds?

Answer: Yes/No

Evidence: Extract from law with provisions on how surplus revenues should be saved, used to pay down debt, or accumulated in a fund.

154. Aretheremacrofiscalrulesinplacetostabilizethebudget?

Answer: Yes/No.

Evidence: Extract from law providing for a fiscal rule. Also see: Fiscal Rules Dataset 1985–2013 (IMF, 2013). Fiscal rule types include debt, budget balance, structural budget balance, and expenditure or revenue rules.


B4.1 Budget Transparency and Accountability

155. Open Budget Index - Open Budget Survey Answer: Score of 0–100, compiled from 109 of the survey’s 140 questions, a higher score

indicates a more transparent budget.

Note: The Open Budget Index (OBI) is an independent, comparative measure of central government budget transparency. The OBI assigns countries covered by the Open Budget Survey a transparency score on a 100-point scale using 109 of the 140 questions in the survey. These 109 questions focus on whether the government provides the public with timely access to comprehensive information contained in eight key budget documents in accordance with international good practice standards.

For further information visit: http://www.internationalbudget.org/


B4.2 Public Investment Integrity

156. To what extent is there well-publicized, detailed and up-to-date strategic guidance for public investment decisions?

Answer: There is well-publicized, detailed and up-to-date strategic guidance for public investment decisions. (Yes) / There is no well-publicized, detailed and up-to-date strategic guidance for public investment decisions. (No) / /Partial, explained.

Good practice: There is well-publicized, detailed and up-to-date strategic guidance for public investment decisions.

Evidence: Documented guidance.


Another useful source of reference is the IMF PIMA-Index: http://www.imf.org/external/np/fad/

publicinvestment/index.htm.

157. Are public investment projects required to be evaluated after completion by an independent auditor according to the laws and regulation?

Answer: Yes/No.

Good practice: Independent auditor is mandated to evaluate public investment in the law.

Evidence: Extract from regulation.



158. To what extent are completed public investment projects evaluated by an independent auditor?


Answer: All completed public investment projects are evaluated by an independent auditor. (Yes) / Completed public investment projects are never or rarely evaluated by an independent auditor. (No) / Partial, explained.

Good practice: Completed public investment projects are evaluated by an independent auditor.

Evidence: Reference to audit, where available; focus on public infrastructure projects with links to mining (road, energy, ports).

Note: Refer to Q19 of the World Bank’s Public Investment Management Framework. Country studies have been completed for a large number of countries: http://go.worldbank.org/90X7V5NOJ0

159. Are the assets and liabilities of mining sector SOEs included in the public sector balance as reported by the Ministry of Finance?

Answer: Yes/No/Not Applicable (i.e., there is no mining sector SOE).

Evidence: Extract of report to parliament with detailed balance of SOEs.

Note: For general information on public financial management, refer to World Bank Community Practice on Financial Management,

http://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1326399585993/8366509-1335283790258/FMISCoPwebsiteaccess.pdf, and Public Expenditure and Financial Accountability, https://www.pefa.org/

160. Are the assets and liabilities of the natural resource fund included in the public sector balance as reported by the Ministry of Finance?

Answer: Yes/No/Not applicable (i.e., there is no natural resource fund).

Evidence: Extract of report to parliament with detailed balance of the fund.



C4.1 Budget Implementation

161. Budget cycle (performance of key systems, processes, and institutions)—PEFA indicator

Answer: Score A–D based on PEFA methodology, where A represents best performance and D is lowest performance.

The question is aligned with PEFA C11-28, which cover multiple questions outlining the general performance of budgetary systems, including (i) policy-based budgeting; (ii) predictability and control in budget execution; (iii) accounting, recording and reporting; and (iv) external scrutiny and audit. The PEFA guideline provides details for the scoring methodology.



162. Control of expenditures—PEFA indicator

Answer: Score A–D based on the PEFA methodology, where A represents best performance and D is lowest.

The question is aligned with PEFA PI 2. It notes the composition of expenditure out-turn compared to the original approved budget. It assesses two components: (i) the extent of the variance in expenditure composition during the last three years, excluding contingency items; and (ii) the average amount of expenditure actually charged to the contingency vote. The PEFA guideline provides details for the scoring methodology.

Note: PEFA letter scores (A, B+, B, C+, C, D+,D) are converted into numerical scores (1…7 for scoring secondary data.

Further insight is available on www.PEFA.org or PEFA (2011), Public Financial Management erformance Measurement Framework.

163. To what extent do subnational governments receive their budget allocations in a full and timely manner?

Response from: CSOs, governments.

Answer: Subnational governments consistently receive their budget allocations in a full and timely manner. (Yes) / In the majority of instances, subnational governments receive their allocations with a significant delay, or not at all. (No) / Partial, explained.

Good practice: Subnational governments receive their allocations in a full and timely manner.

Evidence: Documentation of transfers to subnational governments, along with transfer dates.


164. Robustbudgetclassificationsystem—PEFAindicator


The question is aligned with PEFA PI-5. The classification system is used for formulation, execution and reporting of the central government budget. It measures if the country uses Government Finance Statistics (GFS) or Classification of the Functions of Government (COFOG) codes. The PEFA guideline provides details on the scoring methodology.



165. Comprehensiveness of information included in budget documentation—PEFA indicator


The question is aligned with PEFA PI-6. It measures the level of information in the documentation of the most recent budget. The PEFA guideline provides detail for the scoring methodology. Note: PEFA letter scores (A, B+, B, C+, C, D+,D) are converted into numerical scores (1…7) for scoring secondary data.


166. Extent of unreported extra-budgetary expenditure—PEFA indicator


The question is aligned with PEFA PI-7. It measures the percentage of unreported extra-budgetary expenditure as a percentage of total expenditure. The PEFA guideline provides details for the scoring methodology.




167. Multi-yearperspectiveinfiscalplanning—PEFAindicator


The question is aligned with PEFA PI-12. Multi-year budget plans are good practice and are particularly relevant in light of the potential volatility of resource revenue. The indicator measures the preparation of multi-year fiscal forecasts and functional allocations, the scope and frequency of debt sustainability analysis, the existence of sector strategies with multiyear costing of recurrent and investment expenditures and links between investment budgets and forward expenditure estimates. The PEFA guideline provides details on the scoring methodology.



168. To what extent, does the government follow the rules established by resource revenue sharing legislation?


Answer: Government consistently follows the rules established by resource revenue sharing legislation. (Yes) / Government never or rarely follows the rules established by resource revenue sharing legislation. (No) / Partial, explained.

Good practice: Government follows the rules established by resource revenue sharing legislation.

169. Inthiscountry,howefficientlydoesthegovernmentspendpublicrevenue?–WEFGCI

Answer: Score 1 (lowest) – 7 (highest) based on the rating from World Economic Forum Global Competitiveness Report.

Note: The question captures the perceived wastefulness of government spending. The score is based on the World Economic Forum Executive Opinion Survey, which measures perception of good practice by private sector executives.

Further information on:

http://www3.weforum.org/docs/gcr/20152016/Global_Competitiveness_Report_2015-2016.pdf


C4.2 Large Scale Public Investment

170. In practice, is there an established process for screening public investment project proposals for consistency with government policy and strategic guidance, and to what extent does the government follow it?


Answer: There is an established process for screening public investment project proposals for consistency with government policy and guidance, and government consistently follows this process. (Yes) / There is no established process for screening public investment project proposals for consistency with government policy and guidance, or government never or rarely follows the process, if one exists. (No) / Partial, explained / Not applicable (for example, there is no established process for screening public investment project proposals for consistency with government policy and guidance,

Good practice: Public investment project proposals are screened against established policy and guidance.

Evidence: Focus on public infrastructure projects with links to mining (road, energy, ports). To evaluate whether the screening process is being followed, it should be ascertained whether projects that do not meet established criteria are rejected.


171. Towhatextentdoesthegovernmentuseaformalcostbenefitappraisalprocessfor

public investment project proposals?


Answer: Government always uses a formal cost benefit appraisal process for public investment project proposals, (Yes) / Government does not use a formal cost benefit appraisal process for public investment project proposals, (No) / Partial, explained.

Good practice: Formal cost benefit analysis is used for all public investment project proposals save for smaller projects that fall below a declared minimum size.

Evidence: Focus on public infrastructure projects with links to mining (road, energy, ports). The appraisal process can be carried out at the line ministry or central finance agency level. Note that there might be a minimum monetary threshold for cost benefit analysis to be done or it might be restricted to some sectors.



172. To what extent are the project appraisals of public investment projects undertaken by an external agency or expert?


Answer: Project appraisals of public investment projects are carried out by an external agency or expert. (Yes) / Project appraisals of public investment projects are never or rarely carried out by an external agency or expert. (No) / Partial, explained.

Good practice: Project appraisals of public investment projects are carried out by an external agency or expert.

Evidence: Focus on public infrastructure projects with links to mining (road, energy, ports).


173. To what extent do ministries prepare procurement plans for major public investment projects in key sectors?


Answer: Ministries prepare procurement plans for major public investment projects in key sectors. (Yes) / Ministries do not prepare procurement plans for major public investment projects in key sectors. (No) / Partial, explained.

Good practice: Ministries prepare procurement plans for major projects, and those plans are followed.




174. To what extent are there regular cost over-runs on major public investment projects in key sectors?


Answer: Cost over-runs on major public investment projects are a regular occurrence. (Yes) / Cost over-runs on major public investment projects occur but they are not a regular occurrence. (No)/ Partial, explained.

Good practice: Cost over-runs on major projects can occur but they should not be a regular occurrence.


Note: Refer to Q14 of the World Bank’s Public Investment Management Framework, which provides average percentage of cost overrun in inflation-adjusted terms for selected countries. Country studies have been completed for a large number of countries: http://go.worldbank.org/90X7V5NOJ0

175. Are there often delays in project completion relative to the initial estimated time on major public investment projects in key sectors?


Answer: There are often delays in project completion relative to the initial estimated time on major public investment projects in key sectors. (Yes) / There are never or rarely delays in the project completion relative to the initial estimated time on major public investment projects in key sectors. (No) / Partial, explained.

Evidence: Completion rates and delays. Focus on public infrastructure projects with links to mining (road, energy, ports).

Note: Refer to Q18 of the World Bank’s Public Investment Management Framework, which provides delay and completion rates for selected countries. Country studies have been completed for a large number of countries: http://go.worldbank.org/90X7V5NOJ0.

C4.3 Macrofiscal Management and Revenue Stabilization Effectiveness

176. To what extent is the fund to protect budget expenditures from revenue volatility working?


Answer: The fund consistently achieves its objective of protecting budget expenditures from revenue volatility. (Yes) / The fund never or rarely achieves its objective of protecting budget expenditures from revenue volatility. (No) / Partial, explained / Not Applicable, e.g., there is no fund to protect budget expenditures from revenue volatility.

Good practice: The fund achieves its objective of protecting budget expenditures from revenue volatility.

Evidence: Country report from an international institution (e.g., IMF Article IV report) on managing budget volatility.


177. Towhatextentdoesthegovernmentfollowitsmacrofiscalrules?


Answer: Macrofiscal rules established in budget documents or legislation are consistently followed. (Yes) / Macrofiscal rules established in budget documents or legislation are never or rarely followed. (No) / Partial, explained. / Not Applicable.

Good practice: Macrofiscal rules established in budget documents or legislation are followed.

Evidence: Country report from international institution (i.e. IMF Article IV report) on fiscal rules being followed, ignored or breached.


5. Local Impact


A5.1 Community Impact, Consultation and Corporate Social Responsibility

178. To what extent is there a requirement for extensive, timely, well-informed community stakeholder consultation with affected communities before the commencement ofmining operations?

Answer: There is a requirement for extensive, timely, well-informed community stakeholder consultation with affected communities before the commencement of mining operations. (Yes) / There is no requirement for extensive, timely, well-informed community stakeholder consultation with affected communities before the commencement of mining operations. (No) / Partial, explained.

Good practice: There is extensive, timely, well-informed community stakeholder consultation with affected communities before the commencement of mining operations.

Evidence: Mining law and regulations.

179. In the law, to what extent are community development agreements required for mining operations?

Answer: Community development agreements are required by law for mining operations. (Yes) / There is no legal requirement for community development agreements for mining operations. (No) / Partial, explained (for example, key elements of what would be a community development agreement are required in the environmental/social assessment process but are not referred to as a community development agreement).

Good practice: Community development agreements are required for mining operations.

Evidence: Refer to mining law and regulations, as well as environmental legislation and regulations, which may separately or additionally provide for community development agreements. This is an area where there may be conflicting rules and regulations. Check if such agreements are required prior to the awarding of mineral rights or project implementation.

180. I s there a national policy on corporate social responsibility (CSR) that applies to mining?

Answer: Yes/No.

Evidence: As provided by the existence of a law/regulation. The CSR policy can apply only to mining or incorporate all sectors.


A5.2 Rules for Environmental and Social Impact Management

181. In the law, is there a requirement for companies to submit plans on managing and mitigating the environmental impact of operations?

Answer: Yes/No.

Evidence: Laws, regulations and guidelines that include the relevant standards. The plans could be part of the EIA or through Environmental Mitigation and Management Plans (EMMPs), and should be available from the environmental agency or ministry.

182. In the law, is there a requirement for companies to submit plans on managing and mitigating the socio economic impacts of operations?

Answer: Yes/ No / Partial, explained (for example, there is not a requirement to submit socio-economic impact plans as such but the substance of what these could be is included in the environmental/social assessment process and/or product).

Good practice: Companies submit plans on managing and mitigating the socio economic impacts of operations.

Evidence: Laws, regulations and guidelines that include the relevant standards. The plans could be part of the Environmental and Social Impact Assessment (ESIA) through Social Management Plans or otherwise, and should be available from the environmental agency or ministry.

183. In the law, are company plans to manage and mitigate the social and environmental impacts of operations subject to review by an inter-ministerial committee?

Answer: Yes/No.

Evidence: Laws, regulations and guidelines that include the relevant standards.

184. In the law, are there clear rules on fees and timeframes for submitting, approving and updating environmental and social impact assessments (or other key environmental and social impact related documents such as EMMPs)?

Answer: There are clear rules on fees and timeframes for submitting, approving and updating ESIAs or equivalent. (Yes) / There are no clear such rules. (No) / Partial, explained (for example, there are rules satisfying some, but not all, of the listed criteria).

Evidence: Mining and environmental laws, regulations and guidelines.


185. In the law, is an environmental and social impact assessment (or similar) required before a mining license/lease can be granted or as a condition to begin operations?

Answer: Yes/No.

Good practice: A mining lease may be granted without an ESIA but an operating permit may be required prior to the commencement of work. A full ESIA should be produced, studied and approved by the authorities prior to any agreement for operations to commence. This may (and should) require negotiations among the mining authorities, the company and the environmental authorities or agency.

Evidence: Mining and environmental legislation, regulations and guidelines. Also check if the ESIA should be submitted with the application or on approval and prior to granting.

Note: For exploration, environmental impact statements (which are different from ESIAs, described above) are often required. These provide a quick overview of the environmental (including social) setting of the area, and include a statement of how environmental and social impacts will be limited and managed. Such a statement needs to be produced prior to the granting of a license (but after approval of the application).

186. In the law, are there requirements in place on managing the environmental and social impact of closure of mine sites?

Answer: Yes/No.

Evidence: Laws, regulations and guidelines that include the relevant standards. These management plans could be done as part of ESIAs, EMMPs or Environmental Impact Assessments (EIAs), or as separate mine closure plans, and should be available from the environmental agency or ministry. The management plans should include safety issues (such as dam spills or tailings), and environmental and social aspects.

187. Is there a policy or regulation that protects biodiversity on a mine site?

Answer: Yes/No.

Evidence: EIAs that specifically look at the biodiversity impacts of mining projects and avoid or mitigate biodiversity losses, and rehabilitate the area wherever this is not possible.

188. Istherearegulationthatenablesbiodiversityoff-settingforaminesite?

Answer: Yes/No.

Note: Mining projects should try to avoid any negative impacts but if biodiversity loss cannot be avoided, regulations are required to minimize, rehabilitate and off-set any additional loss of biodiversity.

Off-sets are defined by the Business and Biodiversity Offsets Program (BBOP) as measurable conservation outcomes resulting from actions designed to compensate for significant residual adverse biodiversity impacts arising from project development after appropriate prevention and mitigation measures have been taken: http://www.thebiodiversityconsultancy.com/wp-content/uploads/2013/07/Government-policies-on-biodiversity-offsets3.pdf.


189. In the law and regulations, is there a simplified environmental permit or impactassessment for artisanal and small-scale mining?

Answer: Yes/No.

Evidence: Extract from legislation.

Note: It is good practice to have environmental permit and assessment requirements that account for the limited capacity of ASM miners.

190. In the law, does the agency or ministry responsible for environmental protection have a say in the approval of exploration rights?

Answer: Yes/No.

Evidence: Legislation listing the mandate of the EPA, ministry or similar organization and spelling out its powers.

191. Is an agency independent from the mining authorities responsible for environmental protection and rehabilitation?

Answer: Yes/No.

Evidence: Legislation establishing an independent EPA, ministry of environment or similar organization, and spelling out its powers. This should not be the ministry of mines or an institution under the ministry of mines.

192. Inthelaw,isthereagrievanceandcomplaintsmechanismdefinedintheenvironmentalregulations?

Answer: Yes/No

Evidence: Environmental regulations governing the Environmental Impact Assessment (EIA) or similar.


A5.3 Rules for Financial Sureties for Decommissioning

193. Does legislation require the posting of environmental bonds or similar financialassurance methods to cover the cost of environmental rehabilitation post-mining?

Answer: Yes/No.

Good practice: There are many mechanisms, all with pros and cons, depending on the scale of the project, size and status of the company, and so on. A good mechanism will account for the cost of:

• Restoring as much of the disturbed land to its original condition as possible, or alternatively, to a condition that enables another use; remediating the potential long-term (and permanent) environmental impacts (acid mine drainage and so on); and maintaining long-term management of facilities like tailings dams.

• The volatility of prices, which increase alongside project expansion and decrease when remediation work is done.

• Funds to be available for a very short-term basis in case of an emergency (damaged tailings dam, cyanide spill, and so on) and for long-term impacts. These latter funds (or guarantees) may be held/managed by the company (in the case of a world-class firm) or (better) by a mutually approved bank, to be increased, reduced or released in agreement between the mining company and the EPA, and so on.

• Regular reviews of environmental impacts and of remediation work done in accordance with the Environmental Management Plans, and reviews done at the time of project expansion or closure (which affects the level of the bond that should be available).

Evidence: Mining closure legislation and information published by the EPA, mining ministry and mining companies.


B5.1 Human Rights and Employment Equity

194. Is the government implementing the African Charter for Human Rights? Answer: Yes/No

“Yes” where there is the active and monitored implementation of the Charter, which has been adopted by most countries (http://www.achpr.org/instruments/achpr/ratification/). Evidence may include explicit references to the charter and a functioning human rights commission that has integrated the Charter in its own mission and actively monitors and reports implementation at the country level to the African Commission on Human and Peoples’ Rights (reporting every two years is mandatory). “No” where there is no reference to the Charter and no implementation of the Charter at the national level.


195. Is the state’s duty to protect human rights (Pillar I of the UN Guiding Principles on Business and Human Rights, UNGP) implemented through a National Action Plan?

Answer: Yes/No.

“Yes” when the UNGP is being actively implemented at the country level through a National Action Plan. “No” when there is no reference to the UNGP.

Evidence: Constitution, official documents of the human rights commission or reference to the UNGP. Is Pillar I of the UNGP, the state’s duty to protect human rights, referenced in the constitution or in another publicly available source? If so, is a national action plan in place or being developed?

196. Is the government a signatory to the Voluntary Principles on Security and Human Rights (VPSHR)?

Answer: Yes/No.

Evidence: Government signatories to VPSHR, as listed online.

Signatories: http://www.voluntaryprinciples.org/for-governments/.

For further information, see Roles and Responsibilities of Government:

http://www.voluntaryprinciples.org/wp-content/uploads/2014/10/VPs_-_Roles_and_Responsibilities_-_Government_Pillar.pdf.

197. In practice, if government is a signatory to the VPSHR, to what extent is it monitoring VPSHR implementation?


Answer: Government is monitoring VPSHR implementation. (Yes) / Government never or rarely monitors VPSHR implementation. (No) / Partial, explained (for example, government is coincidentally monitoring elements of the VPSHR along with another program or activity, or monitoring of VPSHR is not comprehensive).

Good practice: Monitoring should be deliberate and related to the VPSHR.

Evidence: Documented evidence of the nature and scope of monitoring.

198. In practice, does the government require companies to carry out human rights due diligence as part of the licensing process?


Answer: Government requires companies to carry out human rights due diligence as part of the licensing process. (Yes) / Government does not require companies to carry out human rights due diligence as part of the licensing process. (No).

Evidence: Mining regulations and licensing processes, documentation and conversations with stakeholders and local communities.


199. Is there an independent Human Rights Commission?

Answer: Yes/No.

Evidence: May include the laws describing the formation of the commission or a reference to its annual report of activities. Note if the Human Rights Commission has been involved in mining-related human rights cases.

200. Towhat extent is theHumanRightsCommission adequately staffed to facilitate agrievance and complaint mechanism?


Answer: The Commission is adequately staffed to facilitate a grievance and complaint mechanism. (Yes) / The Commission is not adequately staffed to facilitate a grievance and complaint mechanism. (No) / Partial, explained.

Good practice: An institution is staffed so as to perform its assigned duties.


201. To what extent is the Human Rights Commission receiving an adequate budget to facilitate a grievance and complaint mechanism?


Answer: Allocated and released funding is sufficient for the salaries, work materials, office and IT supplies, internet connections, training and field activities required to facilitate a grievance and complaint mechanism. (Yes) / Allocated and released funding is not sufficient for the salaries, work materials, office and IT supplies, internet connections, training and field activities required to facilitate a grievance and complaint mechanism. (No) / Partial, explained.

Good practice: Allocated and released funding is sufficient for the salaries, work materials, office and IT supplies, internet connections, training and field activities required to facilitate a grievance and complaint mechanism.

Evidence: Budget, including sources (e.g., government, donors).

202. Are there adequate government rules to promote employment equity?

Answer: There are adequate government rules to promote employment equity aimed at preventing discriminatory practices based on gender or race or against other disadvantaged groups. (Yes) / There are no or inadequate government rules to promote employment equity aimed at preventing discriminatory practices based on gender or race or against other disadvantaged groups. (No) / Partial, explained.

Good practice: There are adequate government rules to promote employment equity aimed at preventing discriminatory practices based on gender or race or against other disadvantaged groups.

Evidence: Legislation.


203. To what extent is an institution mandated to ensure consistent compliance with employment equity rules?


Answer: An institution has a specific mandate to monitor and ensure compliance with employment equity rules. (Yes)/ There is no institution with this mandate. (No) / Partial, explained (for example, the mandate is split across institutions or it is not being consistently fulfilled by the designated institution).

Good practice: An institution has the specific mandate to monitor and ensure compliance with employment equity rules.

Evidence: The name and role of the institution(s) tasked with ensuring employment equity rules are followed.

204. Does the government recognize indigenous peoples on its territory and their rights in relation to mining (free, prior and informed consent)?

Answer: The rights of indigenous peoples, as per the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)/International Labor Organization (ILO) Convention 169, are recognized and applied in relation to mining—that is, indigenous peoples’ right to free, prior and informed consent (FPIC). (Yes) / Rights to free, prior and informed consent are not recognized even if indigenous people are officially recognized. (No) / Partial, explained. / Not Applicable means that no part of the national population is classified as “indigenous people.”

Evidence: National law recognizing indigenous peoples’ right to free, prior and informed consent (FPIC).

B5.2. Environmental and Social Impact Transparency

205. Are environmental and social impact assessments (or other key environmental and social impact related documents required such as EMMPs) required to be made public?

Answer: Environmental assessments and other key environmental and social impact documents are required to be made public. (Yes) / Environmental assessments and other key environmental and social impact documents are not required to be made public. (No) / Partial, explained.

Evidence: Environmental regulations governing ESIAs or similar.


206. To what extent are environmental and social impact assessments (or other key environmental and social impact related documents required such as EMMPs) made publicinawayaccessibletoaffectedcommunities?

Response from: CSOs and industry.

Answer: Environmental assessments and other key environmental and social impact documents are made public in a language and style that is comprehensible to adult members of local communities. (Yes) / Environmental assessments and other key environmental and social impact documents are not made public or are made public but not in a language and style that is comprehensible to adult members of local communities. (No) / Partial, explained.

Good practice: Environmental assessments and other key environmental and social impact documents are made public in a language and style that is comprehensible to adult members of local communities.

Evidence: Examples of recently published plans from ministry and company websites, press releases and so on, and verified with CSOs and industry.


C5.1 Impact and Community Consultation

207. Towhatextentdominingcompaniesconsultwithaffectedcommunitiesinatimely,meaningful, informed, comprehensive and transparent manner?


Answer: Consultation with communities always takes place, and is timely, meaningful, informed, comprehensive and transparent. (Yes) / Community consultative is never undertaken, or takes place but is not timely, meaningful, informed, comprehensive and transparent. (No) / Partial, explained.

Good practice: Consultation is timely (held at a times when it can be considered in project design and implementation), meaningful (it will be considered and taken into account as appropriate), informed (stakeholders should be able to appreciate the issues being discussed), comprehensive (with the range of key stakeholders in affected communities), and transparent (either received in public forums or detailed for public review).

Evidence: Reports from authorities, industry and environmental/social CSOs. Input from legal firms. Respondents should identify whether there is a legal requirement that the government approve community agreements, and if so, if it is followed.


208. To what extent are comprehensive community development agreements negotiated prior to mining operations?


Answer: Comprehensive community development agreements are always negotiated prior to mining operations. (Yes) / Comprehensive community development agreements are never or rarely negotiated prior to mining operations. (No) / Partial, explained (for example, comprehensive community development agreements are negotiated, but not prior to mining operations).

Good practice: Comprehensive community development agreements are negotiated prior to mining operations.

Evidence: Examples of community development agreements.

209. To what extent does the agency or ministry responsible for environmental protection have a say in the approval of mining rights?


Answer: Approval of mining rights involves the main ministries involved in ensuring the positive impact of mining, including the ministry of environment or equivalent. (Yes) / The ministry responsible for environmental protection does not have a say in the approval of mining rights. (No) / Partial, explained.

Good practice: Approval of mining rights involves the main ministries involved in ensuring the positive impact of mining, including the ministry of environment or equivalent.

Evidence: May include evidence of lack of communication and information sharing on mining applications between the ministry of mines and the environmental agency, or evidence that the environmental agency is not part of the application review process.

210. To what extent are operating mining companies setting aside funds for mine closure?


Answer: Adequate funds are set aside by operating mining companies to pay for mine closure and environmental remediation. (Yes) / Operating mining companies do not set aside funds for mine closure. (No) / Partial, explained.

Good practice: Adequate funds are set aside by mining companies and managed by a third party for eventual use to pay for mine closure and environmental remediation.

Evidence: Mine-specific deposits into a mine closure and remediation fund as may be required by law.


211. To what extent do government and mining companies collaborate in the planning and implementation of CSR activities?

Answer: There is full collaboration between government and mining companies in planning and implementing CSR activities. (Yes) / Collaboration between government and mining companies in planning and implementing CSR activities never or rarely occurs. (No) / Partial, explained.

Good practice: Government and mining companies collaborate in planning and implementing corporate social responsibility activities, so helping to help ensure the complementarity of CSR activities with government development plans and investments, including the long-term provision of government staff and resources for facility operation.

Evidence: Evidence of collaboration between mining companies and government.

C5.2 Environmental and Social Impact Management Effectiveness

212. To what extent is the institution tasked with monitoring and enforcing environmental regulationsstaffedappropriately?


Answer: The institution tasked with monitoring and enforcing environmental regulations is staffed appropriately to carry out its mandate. (Yes) / The institution tasked with monitoring and enforcing environmental regulations is not staffed appropriately to carry out its mandate. (No) / Partial, explained.

Good practice: Staffing should enable the institution tasked with monitoring and enforcing environmental regulations to carry out its mandate effectively.


213. To what extent is the institution tasked with monitoring and enforcing environmental regulations receiving appropriate funding to carry out its task?


Answer: The institution tasked with monitoring and enforcing environmental regulations receives appropriate funding to carry out its mandate. (Yes) / The institution tasked with monitoring and enforcing environmental regulations does not receive appropriate funding to carry out its mandate. (No) / Partial, explained.

Good practice: Allocated and released funding is sufficient for the salaries, work materials, office and IT supplies, internet connections, training and field activities required for monitoring and enforcing environmental regulations.

Evidence: Budget of EPA or similar institution. Note that EPAs often retain fees and fines collected and may rely on those as opposed to budgetary support. In some countries, companies pay for being monitored; this is poor practice as it provides inappropriate incentives for those making the inspection.


214. To what extent are environmental requirements enforced systematically through inspections and penalties for non-compliance?


Answer: Environmental requirements are enforced systematically through inspections and penalties for non-compliance. (Yes) / Environmental requirements are not enforced systematically through inspections and penalties for non-compliance. (No) / Partial, explained.

Good practice: Inspections are carried out in line with procedures and guidelines. These include regular (quarterly, annually) and unannounced inspections with clear penalties for noncompliance (that is, fines, suspension and revocation for egregious violations).

Evidence: Existence of procedures and guidelines for inspection and regulations specifying penalties or other sanctions. Reports from mining or environmental authorities indicating what inspections they have carried out and what sanctions and penalties they have imposed.

Note: “Systematically” means that all contracts are assessed at the same intervals (with appropriate adjustments for scale of operations and previous histories of compliance/noncompliance), and there are unbiased and fair appeal mechanisms in the event of a disagreement.

215. To what extent is a grievance and complaints mechanism used to challenge decisions by the agency monitoring environmental regulation?


Answer: A grievance and complaints mechanism is available and is used to challenge decisions of the environmental regulation monitoring agency. (Yes) / An independent grievance and complaints mechanism is not available, or if available it is not used, to challenge decisions of the environmental regulation monitoring agency. (No) / Partial, explained.

Good practice: An independent grievance and complaints mechanism is available, and is used, to challenge decisions of the environments regulation monitoring agency.

Evidence: Documentation of a grievance and complaints mechanism being established and used.

216. To what extent are company plans to manage and mitigate the social and environmental impacts of operations reviewed by government?


Answer: Company plans to manage and mitigate the social and environmental impacts of operations are reviewed by the government agency responsible for monitoring such impacts. (Yes) / Company plans to manage and mitigate the social and environmental impacts of operations are not reviewed by the government agency responsible for monitoring such impacts. (No) / Partial explained.

Good practice: Company plans to manage and mitigate the social and environmental impacts of operations are reviewed by the government agency responsible for monitoring such impacts.

Evidence: Documentation from government and industry of such plans being reviewed.


217. To what extent does the government approve environmental and social impact assessments (or other key environmental and social impact related documents required such as EMMPs) according to fees and timeframes in the regulation?


Answer: Environmental and social impact assessments (or similar) are approved according to fees and submission/review timeframes in the regulation. (Yes) / Environmental and social impact assessments (or similar) are approved according to fees and submission/review timeframes in the regulation. (No) / Partial, explained.

Good practice: Sector law and regulation establish the fees and submission/review timeframes for environmental and social impact assessments and related documents.

Evidence: Comparison of fees and timeframes established in the law with the performance of government in this respect.

218. To what extent are environmental and social impact assessments (or similar) carried out and approved before a mining license/lease/operating permit is granted as a condition to begin operations?


Answer: An ESIA (or similar) is carried out and approved before a mining license/lease/operating permit is granted. (Yes) / An ESIA (or similar) is not carried out and approved before a mining license/lease/operating permit is granted. (No) / Partial, explained.

Good practice: A mining lease may be granted without an ESIA, but if this is the case an operating permit is needed prior to the commencement of work which requires a full ESIA to be produced, studied and approved by the authorities.

Evidence: Timelines of approval for operations and ESIA.

Note: For exploration, environmental impact statements (which are different from ESIAs) are often required, which provide an overview of the environmental (including social) setting of the area, and include a statement of how environmental and social impacts will be limited and managed. Such a statement needs to be produced prior to the granting of an exploration license (but after approval of the application).


219. To what extent are mining companies submitting plans on mitigating biodiversity impacts that are free standing annexes to environmental and social impact assessments ?


Answer: Plans to mitigate biodiversity impacts of mining are prepared as free-standing annexes to environmental and social impact assessments (to facilitate the plans to be adequately developed, implemented and monitored and submitted according to requirements). (Yes) / Free-standing plans on mitigating biodiversity impacts are not submitted. (No) / Partial, explained (for example, plans are submitted but not as free-standing annexes).

Good practice: Plans to mitigate biodiversity impacts of mining are prepared as free-standing annexes to environmental and social impact assessments to enable the plans to be adequately developed, implemented and monitored and submitted according to requirements.

Evidence: Submitted and published biodiversity impact mitigation plans.

220. To what extent is the government monitoring compliance with environmental requirements for artisanal and small-scale miners?


Answer: The government is regularly monitoring compliance with environmental requirements by artisanal and small-scale miners. (Yes) / The government never or rarely monitors compliance with environmental requirements by artisanal and small-scale miners. (No) / Partial, explained.

Good practice: The government regularly monitors compliance with environmental requirements by artisanal and small-scale miners.

Evidence: Monitoring carried out regularly.

C5.3 Effectiveness of Sureties for Decommissioning

221. To what extent are the funds for mine closure and environmental rehabilitation kept in an escrow account or bond or similar entity?


Answers: Funds for mine closure and environmental rehabilitation are collected from mining companies and are kept in an escrow account or bond or similar entity. (Yes) / Funds for mine closure and environmental rehabilitation are either not collected from mining companies or, if they are, are not kept in an escrow account or bond or similar entity. (No) / Partial, explained.

Good practice: The funds collected from mining companies for mine closure and environmental rehabilitation should be kept in an escrow account or bond or similar entity as opposed to being a fee collected by the environmental agency and spent on recurrent expenditures.

Evidence: Comparison of the use of funds and activities that take place around mine closure.


D. Economic Environment

D1.1 Business and Investment Environment

Note: This indicator measures the quality of the market environment and how easy it is to set up a new business. It is scored on a four-point scale compared with peers.

222. Starting a business—Doing Business indicators

Answer: Distance of frontier score out of 100, where 100 is the best performing country.

Note: Doing Business records the official number of procedures, the official timeframes and the costs to start a business. Scores are based on questionnaires administered by local experts. A simple average is taken of the three different measures of starting a business for a particular country.

Further information on: http://www.doingbusiness.org/methodology/starting-a-business.

223. Dealing with construction permits—Doing Business indicators


Note: Doing Business records the official number of procedures, the official timeframes and the costs, as well as relevant construction regulation and certifications, to build a warehouse. Scores are based on questionnaires administered by local experts. A simple average is taken of the three different measures of starting a business for a particular country.


http://www.doingbusiness.org/methodology/dealing-with-construction-permits.

224. Getting credit—Doing Business indicators


Note: Doing Business measures the legal rights of borrowers and lenders, as well as the strength of the local credit ratings, to assess the ease of access to credit. Scores are based on questionnaires administered by local experts. A simple average is taken of the three different measures of starting a business for a particular country.


http://www.doingbusiness.org/methodology/getting-credit


225. Enforcing contracts—Doing Business indicators


Note: Doing Business measures the time and cost of resolving a commercial dispute in a commercial court, assessing the number of procedures, their timeframes and their cost. It also takes into account the quality of the judicial process, measuring a series of good practice elements in the local judicial system. Scores are based on questionnaires administered by local experts. A simple average is taken of the three different measures of starting a business for a particular country.


http://www.doingbusiness.org/methodology/enforcing-contracts

226. Howwouldyouratethelevelofefficiencyofcustomsprocedures(relatingtotheentryand exit of merchandise)?—World Economic Forum Global Competitiveness Index (WEF GCI)

Answer: Score between 1 and 7, where 7 is best, assessing the level of effort required to deal with customs when trading internationally based on the rating from World Economic Forum Global Competitiveness Report.

Note: The score is based on the World Economic Forum Executive Opinion Survey, which measures perception of good practice by private sector executives.

Further information on: http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.

pdf

227. How burdensome is it for businesses to comply with governmental administrative requirements (for example, permits, regulations, reporting)?—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the level of effort required to deal with administrative requirements in conducting business, based on the rating from World Economic Forum Global Competitiveness Report.


Further information on: http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.

pdf


228. Perceptionsindexmeasuringtheeffectivenessofthecivillawsystem—WorldJusticeProject (WJP)

Answer: Score between 0 and 1, where 1 indicates best practice in rule of law.

Note: The WJP Rule of Law Index relies on surveys of households and experts to measure the experience of rule of law, based on 44 indicators in eight categories (Constraints on Government Powers, Absence of Corruption, Open Government, Fundamental Rights, Order and Security, Regulatory Enforcement, Civil Justice, and Criminal Justice).

Further information on: http://data.worldjusticeproject.org/

229. Average number of procedures required to start a foreign subsidiary—World Bank Investing Across Borders

Answer: Average number of procedures to start a business as a foreign company with lower numbers indicating simpler processes.

Note: Based on Investing Across Border report. The methodology is similar to the WB Doing Business report and is based on a questionnaire administered by 3,500 respondents globally.

Further information on: http://iab.worldbank.org/methodology.

230. Average number of days required to start a foreign subsidiary—World Bank Investing Across Borders

Answer: Average number of days to start a business as a foreign company with lower numbers indicating simpler processes.

Note: Based on Investing Across Border report. The methodology is similar to the WB Doing Business report and is based on a questionnaire administered by 3,500 respondents globally.

Further information on: http://iab.worldbank.org/methodology.

D2.1 Mining Infrastructure

Note: This indicator measures the availability, quality and cost competiveness of infrastructure for the mining sector on a four-point scale compared with peers.

231. Quality of roads - WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the level of effort required to deal with customs when trading internationally.



http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.pdf


232. Logistics Performance Index—World Bank Answer: Score between 1 and 5, where 5 is best, from the Logistic Performance Index.

Note: This question is used as a proxy for transport cost, and assesses the efficiency of the clearance process, quality of trade- and transport-related infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, ability to track and trace consignments and timeliness of shipments.

233. Extent of infrastructure (for example, transport, telephony, and energy)—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the quality of the general infrastructure (e.g., transport, telephony, and energy) internationally, based on the rating from World Economic Forum Global Competitiveness Report.




234. Quality of the railroad system—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the quality of the railroad system internationally, based on the rating from World Economic Forum Global Competitiveness Report.




235. Quality of port facilities, or port accessibility in case of landlocked country—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing quality of the port facilities internationally (in the case of landlocked countries this assesses the access to seaports), based on the rating from World Economic Forum Global Competitiveness Report.





D3.1 Diversity and Stability of National Revenues

236. Trend in level of non-extractive revenues over 5 years—IMF GFS236. Trend in level of non-extractive revenues over 5 years—IMF GFS

Answer: Increasing/Steady/Decreasing. This indicator measures the trend in non-resource revenues as % of GDP over five years. In a developing country context, non-extractive revenues are typically very low, hence an increasing revenue is indicative of better performance. A low score is awarded if resource revenues have been crowding out non-resource revenue mobilization.

Note: There is no comprehensive dataset of extractive or non-extractive revenues, hence manual data collection and scoring is required.

237. Variation of domestic revenues in real terms over 5 years—IMF WEO

Answer: High variance/average/smooth. This indicator measures the variation in revenues (in national currency) across five years compared to peers. Volatility of revenues is associated with poor budget performance and vulnerability to macroeconomic shocks. Hence smooth revenue performance is scored as best performance, while high degrees of volatility receive low score.

Note: A visualization of the data can be viewed here:

https://s3.amazonaws.com/nrgi-visualizations/blog-volitility-dm/vol_value.html

D4.1 Macroeconomic Stability

Note: This indicator measures macroeconomic stability on a four-point scale compared with peers.

238. Five-yearaverageinflation—IMFWEO

Answer: Average inflation in percentage points.

Note: This indicator measures the yearly average percent change in consumer price across five years compared to peers. High inflation can undermine national competitiveness and lead to macroeconomic imbalances. Hence low inflation is scored as best performance, while high inflation receives low score.

239. Credit rating—Standard & Poor`s

Answer: AAA (highest credit rating) to D (currently in default).

Note: This indicator measures the risk of default. The credit rating of Standard and Poor’s is used given its broad coverage among comparator countries.


240. Five-year average total debt service to gross national income (GNI)—World Bank WDI

Answer: Average debt service in % GNI.

Note: This indicator measures the size of debt servicing across five years compared to peers. High levels of debt servicing undermine macroeconomic stability. Hence low debt service payment is scored as best performance, while high debt service payment receives a low score.

D5.1 National Growth and Savings

Note: This indicator measures the current growth trend and its sustainability on a four-point scale compared with peers.

241. Five-year cumulative gross domestic product (GDP) growth—IMF WEO

Answer: GDP growth at constant price in percentage points.

Note: This indicator measures the cumulative growth performance across five years compared to peers. High levels of growth are scored as best performance, while low growth compared to peers receives a low score.

242. Five-year total average debt to GDP—IMF WEO

Answer: Average debt level as measured in percentage of GDP.

Note: This indicator measures the size of debt stock across five years compared to peers. High levels of debt can signal an unsustainable development path, hence is scored as low score, while low debt levels receive a high score.

243. Five-year average adjusted net savings —World Bank WDI

Answer: Average adjusted net savings as measured in % GNI over five years.

Note: This indicator is equal to the gross national savings less the value of consumption of fixed capital. It captures the change in wealth, including the depreciation of underground mineral wealth and how much was new human and physical capital was accumulated. Low (mostly negative) levels of adjusted net savings signal an unsustainable development path and receive a low score, whereas high levels of adjusted net savings is scored as best performance


D6.1 Skills and Human Capital Availability

Note: This indicator measures how readily available skills are for the mining sector on a four-point scale compared with peers.

244. Perception of the availability of labor/skills—Fraser

Answer: Score between 0 and 100, percentage of those surveyed who consider that available labor and skills in the country encourages investment or at least does not deter investment.

Note: This survey question represents the opinion of a wide range of mining executives, covering the quality and scale of maps, ease of access to information, and so on.



245. Gross tertiary education enrollment rate—WEF GCI

Answer: Score between 1 and 100 percentage enrollment rate, which measures the total enrollment rate in tertiary education regardless of age, expressed as a percentage of the total population of the five-year age group following on from secondary school leaving.

Note: The data is collected by UNESCO Institute for Statistics for the World Economic Forum Global Competitiveness Report.

Further information:


246. Quality of math and science education—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the quality of math and science education based on the rating from World Economic Forum Global Competitiveness Report.




247. Attraction and retention of talented nationals—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the attraction and retention of talented nationals based on the rating from World Economic Forum Global Competitiveness Report.





248. Is there a post-secondary school, college or university providing curriculum for mining sector development?

Answer: Yes/No.

249. Mean years of schooling—Human Development Index

Answer: Years. Observed scores between 1.4 and 13.1 years, where higher is best, Average number of years of education received by people ages 25 and older, converted from education attainment levels using official durations of each level.

Note: Data from UNDP Human Development indicators. Estimates are based on data on educational attainment from UNESCO Institute for Statistics.

Further information on: http://hdr.undp.org/en/content/mean-years-schooling-adults-years

250. Expected years of schooling—Human Development Index

Answer: Years. Observed scores between 4.1 and 20.2 years, where higher is best, Number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrollment rates persist throughout the child’s life.

Note: Data from UNDP Human Development indicators based on educational attainment from UNESCO Institute for Statistics.

Further information on: http://hdr.undp.org/en/content/human-development-report-2014

D7.1 Human Health

Note: This indicator measures human health on a four-point scale compared with peers.

251. Life expectancy at birth—Human Development Index

Answer: Years. Number of years a newborn infant could expect to live if prevailing patterns of age-specific mortality rates at the time of birth stay the same throughout the infant’s life.

Note: Data from UNDP Human Development indicators based on UNDESA World Population Prospects. Population Division Database.

Further information on: http://hdr.undp.org/en/content/human-development-report-2014


252. Death caused by communicable diseases and maternal, prenatal, and nutrition conditions(percentageoftotal)–WBWDI

Answer: % of total. Cause of death refers to the share of all deaths for all ages by underlying causes. Communicable diseases and maternal, prenatal and nutrition conditions include infectious and parasitic diseases, respiratory infections, and nutritional deficiencies such as underweight and stunting,

Note: Data retrieved from the World Bank World Development indicators, derived based on the data from WHO’s World Health Statistics.

Further information on: http://data.worldbank.org/indicator/SH.DTH.COMM.ZS

253. PrevalenceofHumanImmunodeficiencyVirus(HIV)-WBWDI

Answer: percentage of population, ages 15–49. Prevalence of HIV refers to the percentage of people ages 15-49 infected with HIV.

Note: Data from the World Bank World Development indicators and UNAIDS estimate.

Further information on: http://data.worldbank.org/indicator/SH.DYN.AIDS.ZS

E. Political Environment

E1.1 Expropriation Risk

254. Transferandconvertibilityrisk,forcemajeure-OECDcountryriskclassification

Answer: Score between 0 and 7, where 7 represents highest country risk. The country risk is composed of transfer and convertibility risk (i.e., the risk a government imposes capital or exchange controls that prevent an entity from converting local currency into foreign currency and/or transferring funds to creditors located outside the country) and cases of force majeure (e.g., war, expropriation, revolution, civil disturbance, floods, earthquakes).

Note: The score is based on the OECD country risk classification a methodology based on a two-step process involving a risk assessment model and qualitative assessment,

Further information on: http://www.oecd.org/tad/xcred/crc.htm

255. Expropriationrisk–DelcredereDucroire

Answer: Score between 1 (feeble) and 7 (high risk), measuring the risk of expropriation and government action where a score of 1 represents best performance. The risk of expropriation and government action not only covers the risks of expropriation and breach of contract by the government, but also risks related to the functioning of the judiciary system and the risk of a possible negative change of attitude towards foreign investors

Note: The score is from the Delcredere Ducroire, Belgium`s public credit insurer.

Further information on: http://www.delcredereducroire.be


256. Protectionofpropertyrights,includingfinancialassets—WEFGCI

Answer: Score between 1 and 7, where 7 is best, assessing to what extent are property rights, including financial assets are protected from the World Economic Forum Global Competitiveness Report.




257. Is the country signatory to the International Center for the Settlement of Investment Disputes (ICSID) Convention?

Answer: Yes/No.

Evidence: See member states at https://icsid.worldbank.org/apps/ICSIDWEB/Pages/default.aspx.

258. Does the country provide in its domestic law for the international arbitration of foreign investment disputes?

Answer: Yes/No.

Evidence: Extracts of legislation; for example, a Foreign Investment or Investment Promotion Act or mining legislation.

259. Protecting investors—Doing Business indicators

Answer: Distance of frontier score out of 100, where 100 is the best performing country. This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse.

Note: Scores are based on questionnaires administered by local experts. A simple average is taken of the three different measures of starting a business in a particular country.


http://www.doingbusiness.org/methodology/protecting-minority-investors


E2.1 Political Stability

Note: This indicator measures political stability on a four-point scale compared with peers.

260. Political stability—WGI

Answer: Score between -2.5 and 2.5, where 2.5 is best, assessing the political stability and absence of violence and terrorism in the country based on the World Governance Indicator.

Note: The score is based on the World Governance Indicators which combine the views of a large number of enterprise, citizen and expert survey respondents in industrial and developing countries.

For further details see: http://info.worldbank.org/governance/wgi/index.aspx

261. Orderandsecurity(controlofcrime,civilconflict,andviolence)—WJP Answer: Score between 0 and 1, where 1 indicates best practice in rule of law.

Note: The WJP Rule of Law Index relies on surveys of households and experts to measure the experience of rule of law, based on 44 categories in eight categories. These include: Constraints on Government Powers, Absence of Corruption, Open Government, Fundamental Rights, Order and Security, Regulatory Enforcement, Civil Justice, and Criminal Justice.

Further information on: http://data.worldjusticeproject.org/

262. Security situation (includes physical security due to the threat of attack by terrorists, criminals,guerrillagroups,etc.)–FraserInstitute

Answer: Score between 0 and 100, percentage of those surveyed who consider that the security situation in the country encourages investment or at least does not deter investment.

Note: This question represents the opinion of a wide range of mining executives, based on a detailed survey sent to approximately 4,200 exploration, development, and other mining-related companies around the world.



E3.1 Predictable Mining and Tax Policy

263. Howfrequentlyandtowhatextentwerethemainfeaturesofthefiscalregimechangedinthepastfiveyears?

Answer: Multiple significant changes. (Yes) / No major change. (No) / Partial, explained (for example, multiple but not significant changes).

Evidence: Changes in major tax rates (corporate income tax, royalty), major changes to the tax base or the introduction of a new significant tax.


264. Towhatextentarethefiscaltermsformininggenerallystableovertimeorarethereadhoc changes?


Answer: Highly stable – no radical ad hoc changes. (Yes) / Highly unstable – very frequent radical changes. (No) / Partial, explained.

Good practice: Fiscal terms are generally stable over time.

Evidence: Examples of “ad hoc” tax changes. An example could be, changes in a regulation used to impose fees but which are so high that they are more a tax than a fee (for example, transfer fees which are really in lieu of capital gains tax).

265. To what extent is the mining legislation generally stable over time?


Answer: Generally stable in the long term. (Yes) / Highly unstable – frequent changes to the mining legislation in the short- to medium-term. (No) / Partial, explained.

Evidence: Provide examples of changes that could be interpreted as ad hoc.

E4.1 Control of Corruption 266. Controlofcorruption–WGI

Answer: Score between -2.5 and 2.5, where 2.5 is best, assessing the degree of control of corruption in the country based on the World Governance Indicator.

Note: The score is based on the World Governance Indicators which combine the views of a large number of enterprise, citizen and expert survey respondents in industrial and developing countries.

For further details see: http://info.worldbank.org/governance/wgi/index.aspx

F. Sustainable Development

F1.1 Development Planning

267. To what extent is there a current multi-year national development plan?

Answer: There is a national multiyear development plan. (Yes) / There is no plan. (No) / Partial, explained (for example, an expired multiyear development plan is being up-dated).

Evidence: Reference to a development plan demonstrating that the year when the question was answered is covered by a multi-year plan.


268. Does the current multi-year national development plan have a section on the mining sector as a driver for development?

Answer: Mining is treated as a sector that is a driver of development in the plan. (Yes) / There is no section such as this in the plan. (No) / Partial, explained / Not Applicable (there is no such plan).

Evidence: An excerpt of the development plan.

269. Is the multi-year national development plan on track to meet its targets?

Response from: CSOs, government.

Answer: The plan is on track to meet its targets. (Yes) / The plan is not on target or there are no explicit targets in the plan. (No) / Partial, explained / Not Applicable (there is no such plan).

Good practice: Multi-year planning should be relevant, realistic and attainable.

Evidence: Yearly targets and reports on progress, including explanation of deviations.

270. To what extent are plans to leverage the mining sector as a driver of development within the national development plan being implemented?


Answer: Plans to leverage the mining sector as a driver of development re being implemented. (Yes) / Such plans are not being implemented. (No) / Partial, explained / Not Applicable (there are no such plans).

Good practice: Plans are funded and implemented.

Evidence: Extract from the development plan and plan implementation progress reports. Note: Statements of intent without concrete action do not count as implementation.

271. Does the country undertake spatial development plans that leverage mining and investment locations?

Answer: Spatial development planning leverages mining and investment. (Yes) / There is no spatial plan leveraging mining and investment, or there is spatial planning but without reference to mining. (No) / Partial, explained.

Good practice: Spatial development planning leverages mining and investment.

Evidence: Extract from the national developmental plan or other strategic document addressing spatial planning, that is referencing locations of mines and of mining-related investments (such as transport and power), and analyzing implications.


272. To what extent are the plans to develop mining regions within the national development plan meeting the targets set?


Answer: The plans are on track to meet their targets. (Yes) / The plans are not on target. (No) / Partial, explained / Not Applicable (there are so such plans).

Good practice: The national development plan is implemented, and meets plan targets.

Evidence: Extract from the (spatial) development plan on mining regions, report on progress, and/or evidence of plans not followed through.

273. Is the national development plan publicly available?

Answer: Publically available in hard copy and/or on-line. (Yes) / Plan is not publically available. (No) / Not Applicable (there is no such plan).

Evidence: Detail of hard-copy and/or on-line availability.

274. To what extent, did an informed and meaningful national consultation take place during the preparation of the national development plan?


Answer: An informed and meaningful national consultation took place during the preparation of the national development plan. (Yes) / A national consultation took place, but it was not informed or meaningful. (No). / Partial, explained / Not Applicable (there is no such plan).

Good practice: An informed and meaningful national consultation takes place during the

preparation of the national development plan.

Evidence: Timetable or key milestones of the consultation process, which should critically include the private sector and civil society.

275. Is the mining development policy publicly available?

Answer: The plan is available to the public in hard copy and/or on-line. (Yes) / The plan is not publically available in any form (No). / Partial, explained. / Not Applicable (there is no such plan).

Evidence: Detail of hard-copy and/or on-line availability.

276. To what extent did an informed and meaningful national consultation take place during the preparation of the mining development policy?


Answer: An informed and meaningful national consultation took place during the preparation of the mining development policy. (Yes) / An informed and meaningful national consultation did not place. (No) / Partial, explained (for example, a national consultation took place, but it was not informed or meaningful). / Not Applicable (there is no such policy).


Good practice: An informed and meaningful national consultation takes place during the preparation of the mining development policy.

Evidence: Timetable or key milestones of the consultation process, which should include the private sector and civil society.

F2.1 Local Supplier Development

277. Are local content requirements for goods and services within the mining value chain accessible to the public?

Answer: Local content requirements for the mining sector are publically accessible. (Yes) / Local content requirements for the mining sector are not publically accessible. (No) / Not Applicable (there are no such requirements).

Evidence: Published company obligations, often found in contracts, and/or general legal frameworks.

278. Has the government sought the views of a wide range of stakeholders in preparing the local content policy for goods and services within the mining value chain?


Answer: Government sought views of a wide range of stakeholders in preparing local content guidelines for mining. (Yes) / Government did not seek views of a wide range of stakeholders in preparing local content guidelines for mining. (No) / Partial, explained / Not Applicable (no local content policy).

Good practice: Local policy measures are designed in association with the industry to set realistic targets.

Evidence: Reports on consultations carried out with the chamber of mines or industry group, labor unions, domestic business associations and civil society.

279. To what extent do local content regulations for goods and services within the mining valuechaintargetspecificvaluepools?

Answer: Local content regulations for mining target specific value pools. (Yes) / Local content regulations for mining do not target specific value pools. (No) / Partial, explained / Not Applicable (no local content regulations).

Good practice: Local content regulations target specific value pools such as basic materials (for example, steel and cement), low- to medium-complexity equipment and parts (such as pumps, explosives, and chemicals), or high-complexity equipment and parts, as opposed to setting an overall target for all companies (for example, X percent local procurement).

Evidence: Local content policy, regulations and reports on local content. Note that some local content requirements may be in contracts.

Note: See McKinsey (2013), Reverse the Curse: Maximizing the Potential of Resource-Driven Economies.


280. In practice, are the local content regulations for goods and services in the mining sector targeting an adequate value pool based on country capacity?


Answer: Local content regulations for mining goods and services target an adequate value pool based on country capacity. (Yes) / Local content regulations for mining goods and services do not target an adequate value pool based on country capacity. (No) / Partial, explained / Not Applicable (no local content regulations).

Good practice: Local content regulation targets within the mining sector that are in line with local capabilities. A country with very limited industrial capacity might target basic materials (for example, steel and cement); one with larger industrial capacities could target low- to medium-complexity equipment and parts (such as pumps, explosives, and chemicals); one with technology-intensive manufacturing might target high-complexity equipment and parts.


281. Do local content regulations within the mining value chain have clear timeframes?

Answer: Local content regulations within the mining value chain have clear timeframes. (Yes) / Local content regulations within the mining value chain do not have clear time frames. (No) / Partial, explained / Not Applicable (no local content regulations).

Good practice: Local content regulations for goods and services within the mining value chain have clear timeframes.

Evidence: Extract of legislation on local content requirements.


282. To what extent is there support for companies in attaining local content targets?


Answer: There is support for companies to attain local content targets. (Yes) / There is no support for companies to attain local content targets. (No) / Partial, explained / Not Applicable (no local content requirements).

Good practice: Support is provided to companies to achieve local content targets. This could be in the form of training centers or the financing of local suppliers to help them build up their business and so facilitate the attainment of local content targets.

Evidence: Type of support provided.


283. Is there within government an enforcement mechanism for local content regulations?

Answer: There is government enforcement mechanism for local content regulations. (Yes) / There is no government enforcement mechanism for local content regulations. (No) / Partial, explained / Not Applicable (if no local-content requirement or no mandatory local content requirement).

Good practice: If local content is mandatory, a government monitoring and enforcement process exists.

Evidence: Extract from regulations or contract provision on the enforcement of the local content regulation, including penalties.

284. In practice, is there a designated institution monitoring the progress of local content policy implementation?


Answer: There is an institution monitoring the progress of local content implementation. (Yes) / There is no institution monitoring the progress of local content implementation. (No) / Partial, explained / Not Applicable (if no local-content requirement or no local content monitoring requirement).

Good practice: A designated institution monitors the implementation of local content requirements.

Evidence: Name of the institution tasked with monitoring local content and a description of its mandate, staffing and/or budget adequacy/gaps, plus monitoring reports.

285. Quality of local suppliers—WEF GCI

Answer: Score between 1 and 7, where 7 is best, assessing the quality of local suppliers based on the rating from World Economic Forum Global Competitiveness Report.




286. Number of local suppliers—WEF GCI Answer: Score between 1 and 7, where 7 is best, assessing the quantity of local suppliers

based on the rating from World Economic Forum Global Competitiveness Report.





F3.1 Investment Promotion (Diversification)

287. Aretherenoorlowtariffsontheimportofcapitalequipment?

Answer: There are either no or low tariffs on the import of capital equipment. (Yes) / There are medium to high tariffs on the import of capital equipment. (No).

Evidence: Extract of tariff regulation from the ministry of trade or customs.

288. Aretherenoorlowtariffsandnonon-tariffbarriersonminingrawmaterialexports?

Answer: There are either no or low tariffs (and no non-tariff barriers) on mining raw material exports. (Yes) / There are medium to high tariffs and/or non-tariff barriers on mining raw material exports. (No) Not Applicable (mining raw material exports).

Evidence: As provided by an extract of a tariff or nontariff regulation from the ministry of trade or customs.

289. Is there an investment promotion agency?

Answer: Yes/No.

Evidence: A government-financed investment promotion agency website or other contact details.

290. Towhat extent is the investment promotion agency adequately staffed to fulfill itsmandate?


Answer: The agency has a wide range of the necessary technical skilled people to carry out its mandate. (Yes) / The agency has few of the necessary technical skills. No) / Partial, explained / Not Applicable (no investment promotion agency).

Good practice: The agency is adequately staffed to perform its designated duties.

Evidence: Overview of staff numbers and qualifications.

Note: For an exercise in ranking IPAs, see the Ranking of Investment Promotion Agencies: International Finance Corporation (IFC) – Global Investment Promotion Best Practices 2012 Report.


291. To what extent is the investment promotion agency receiving adequate funding to fulfillitsmandate?


Answer: The investment promotion agency receives sufficient resources to perform its mandate. (Yes) / The investment promotion agency receives too little funding to effectively carry out its mandate. (No) / Partial, explained / Not Applicable (no investment promotion agency). Good practice: Funding of staff, facilities and operations enables the investment promotion agency to effectively fulfill its mandate.

Evidence: Budgets or evidence of systems in place to support investors. Note: An exercise at ranking IPAs is Ranking of Investment Promotion Agencies – IFC –

Global Investment Promotion Best Practices 2012 Report.

F5.1 Leveraging Infrastructure

292. To what extent do regulations allow for sharing of transport infrastructure associated with resource extraction?

Answer: Regulations allow for sharing of transport infrastructure associated with resource extraction. (Yes) / Regulations do not allow for sharing of transport infrastructure associated with resource extraction. (No) / Partial, explained.

Evidence: Extract of legislation on shared infrastructure as confirmed by the ministry of transport/industry/development and private sector development experts. Specify the sectors it applies to (road, railroad) and what form of sharing it allows: multi-user and/or multi-purpose.

Note: “Multi-purpose infrastructure: an arrangement where the infrastructure asset is shared between different uses with different characteristics (for example farmers and miners),” and “Multi-user infrastructure: an arrangement where the infrastructure asset is shared between different users with similar characteristics (for example bulk miners).” Columbia Center on Sustainable Investment (2014), A Framework to Approach Shared Use of Mining-Related Infrastructure.


293. Are there examples of shared infrastructure in the transport sector related to resource extraction?

Response from: Industry, Government.

Answer: Yes/No.

Good practice: Multi-purpose and multi-user infrastructure is encouraged and implemented.

Evidence: Name and type of project (road, railroad) and the type of shared use (multi-user and/or multi-purpose).

Note: “Multi-purpose infrastructure: an arrangement where the infrastructure asset is shared between different uses with different characteristics (for example farmers and miners)” and “Multi-user infrastructure: an arrangement where the infrastructure asset is shared between different users with similar characteristics (for example bulk miners).” Columbia Center on Sustainable Investment (2014), A Framework to Approach Shared Use of Mining-Related Infrastructure.

294. To what extent do regulations allow for sharing of energy infrastructure?

Answer: Yes/No/Partial.

Evidence: Extract of legislation on shared infrastructure as confirmed by ministry of transport/industry/development and private sector development expert. Specify the sectors it applies to and what form of sharing it allows: multi-user and/or multi-purpose.

Note: “Multi-purpose infrastructure: an arrangement where the infrastructure asset is shared between different uses with different characteristics (for example farmers and miners).” Multi-user infrastructure: an arrangement where the infrastructure asset is shared between different users with similar characteristics (for example bulk miners).” Columbia Center on Sustainable Investment (2014), A Framework to Approach Shared Use of Mining-Related Infrastructure.

295. Are there examples of shared infrastructure in the energy sector?

Response from: Industry, government.

Answer: Yes/No.

Good practice: Multi-purpose and multi-user infrastructure is encouraged and implemented.

Evidence: Name and type of project and the type of shared use: multi-user and/or multi-purpose.


296. Istherealawthatencouragestheprivatefinancingofinfrastructure?

Answer: Yes/No.

Evidence: Extract of legislation as confirmed by the ministry of trade/industry/development/transport/energy and private sector development experts. Specify what sectors it applies to and what form of infrastructure financing it allows for (for example, a public-private partnership, PPP).

Note: As defined by the Columbia Center on Sustainable Investment (2014), in A Framework to Approach Shared Use of Mining-Related Infrastructure, a PPP is “a long term agreement between a government entity and a private company, under which the private company provides or contributes to the provision of a public service, such as the construction and/or operation of an infrastructure asset, in exchange of a revenue stream generated by a government budget allocation, user fees, or a combination of the two.”

297. Isagovernmentalunitresponsiblefornegotiatingtheprivatefinanceofinfrastructure?

Answer: Yes/No.

Evidence: Extract from policy document highlighting the role for such a unit and discussion with the ministry of trade/industry/development and private sector development experts.

M. Mining Sector Importance

These questions measure the state and maturity of the mining sector as opposed to the quality of mining governance.

M1.1 Geological Prospectivity and Potential

Note: This indicator measures how much geological wealth (in gold and base metals) was discovered on a four-point scale compared with peers.

298. Mineral resource wealth—World Bank

Answer: US$ per capita. Mineral wealth is calculated as present value of rents from extraction of minerals, discounted at 4 percent, and over the exhaustion time of the resource. There are ten minerals covered: bauxite, copper, lead, nickel, phosphate, tin, zinc, gold, silver and iron ore.

Note: World Bank Wealth of Nations data. The Wealth of Nations builds on geological information from World Bank staff estimates using data from GEM Commodities database and US Geological Survey Mineral Commodity Summaries, but relies on incomplete geological information.

For further details see: http://data.worldbank.org/data-catalog/wealth-of-nations


299. Best Practices Mineral Potential Index—Fraser Institute

Answer: Score between 0–100, , percentage of those surveyed who consider the mineral potential in the country encourages investment or at least does not deter investment.

Note: The Best Practices Mineral Potential Index rates a region’s attractiveness based on the perceptions of mining company executives. Survey respondents are asked to rate the pure mineral potential of each jurisdiction with which they are familiar, assuming that local policies are based on “best practice” (that is, a world-class regulatory environment, highly competitive taxation, no political risk or uncertainty, and a fully stable mining regime).

This question represents the opinion of a wide range of mining executives, based on a detailed survey sent to approximately 4,200 exploration, development, and other mining-related companies around the world

For further details see: https://www.fraserinstitute.org/sites/default/files/survey-of-mining-companies-2014.pdf

300. Exploration spending relative to production value—ICMM/SNL Metals & Mining

Answer: Exploration-spend-share-of-global-total expressed as share of production-value-share-of-global-total. A high ratio denotes an active state of exploration within the mining sector.

Note: The data is retrieved from ICMM, The role of mining in national economies (2nd edition). For further details see ICMM (2014): https://www.icmm.com/document/8264

M2.1 Foreign Direct Investment in Mining

301. What is the share of mining FDI as a percentage total FDI in the country? Answer: Measured as percentage of total FDI. The data is collected from national statistics

and trade data.

Note: Current scores are based on preliminary thresholds. Below 50% - 1, 50%-75% - 2, 75%-90%- 3, 90% and over - 4. Scoring and thresholds are based on ICMM reported estimates. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.

For further details see: https://www.icmm.com/document/8264

M3.1 State Participation in Mining

302. What is the extent of state participation in the mining sector?

Answer: High (an SOE or firm with significant state equity is one of the most important companies operating in the sector); moderate (an SOE and/or firm with significant state equity plays an important role); limited (an SOE and/or firm with significant state equity play a limited role); Low (an SOE and/or firm with significant state equity play a limited role).


303. What are the main types of state participation in the mining sector?

Answer: State equity participation in mining firms; SOE minority equity in exploration; SOE minority equity participation in production, SOE operations, and so on.

Scoring of the question can be calculated once information is collected for multiple mining countries.

304. What is the SOE/ or state equity share in mining projects?

Answer: % of the number of mining projects that are operated by SOEs or companies in which government holds a significant equity share.


305. What is the total revenue (turnover) of mining sector SOEs and income from state equity in mining companies as a percentage of GDP?

Answer: Turnover of mining sector SOEs as % GDP.


M4.1 Significance of Mining Revenues

306. Government revenues from mining as a percentage of sector revenues—IMF/National statistics

Answer: %. Total government revenues from mining measured as a percentage of total production value of the mining sector. Both values are measured in various country information sources including national statistics, EITI reports, and IMF reports.

Note: Current scores are based on preliminary thresholds from MInGov data collected. Below 5% - 1, 5-10% -2, 10%-20% -3, 20% and over -4. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.


307. Government revenues from mining as a percentage of total GDP—IMF/National statistics

Answer: %. Total government revenues from mining measured as a percentage GDP. Values are measured in various country information sources including national statistics, EITI reports, and IMF reports.

Note: Current scores are based on preliminary thresholds. Below 1% - 1, 1-2% - 2, 2%-5%- 3, 5% and over - 4. Scoring and thresholds are based on ICMM reported estimates. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.



M5.1 Budget Share of Mining Revenues

308. Total mining revenues as a percentage of total government budget expenditure—IMF GFS or EITI

Answer: %. Total government revenues from mining measured as total government budget expenditure. Values are measured in various country information sources including national statistics, EITI reports, and IMF reports.

Note: Current scores are based on preliminary thresholds from MInGov data collected. Below 2% - 1, 2- 10% - 2, 10%-20% - 3, 20% and over - 4. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.


309. Mining revenues for subnational governments as a percentage of subnational budgets—National statistics

Answer: %. Total subnational government revenues from mining measured as total subnational government budget expenditure. Values are measured in various country information sources including national statistics, EITI reports, and IMF reports.

Note: Preliminary scoping indicated that data is very limited on the subject.

M6.1 Economic and Employment Share of Mining

310. What is the number of ASM miners?

Answer: Estimated number of artisanal and small-scale miners.


311. How many local mining supply companies exist?

Answer: Number of local mining supply companies.

Evidence: Evidence that drillers, laboratories, contractors and so on are present in the country.



312. Mining employment as percentage of total labor force—National statistics

Answer: % Employment in mining and quarrying as a percentage of total employment. Values are typically measured through labor force surveys and reported in various sources including national statistics, EITI reports, and IMF reports.

Note: Current scores are based on preliminary thresholds. Below 1% - 1, 1%-1.5% - 2, 1.5%-2%- 3, 2% and over - 4. Scoring and thresholds are based on ICMM reported estimates. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.


313. What is the total SOE employment as a percentage of the mining labor force?

Answer: Number of employees as % of total mining labor force.


314. Mining sector as percentage of GDP—National statistics

Answer: % Contribution of mining and quarrying activities to GDP. Values are measured for national accounts and are reported in various country information sources including national statistics, EITI reports, and IMF reports.

Note: Current scores are based on preliminary thresholds. Below 3% - 1, 3-6.5% - 2, 6.5%-10%- 3, 10% and over - 4. Scoring and thresholds are based on ICMM reported estimates. Scoring and thresholds can be refined once information is collected for multiple mining countries through MInGov. Calculated using latest data available.
