Mining Foundations, Trust and Funds : A Sourcebook
Mining operations increasingly exist in remote parts of developing countries, and with the combined challenges in public services delivery and development assistance, this is drawing the mining sector further into catalyzing development at local, r...
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| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2010/06/18550631/mining-foundations-trust-funds-sourcebook http://hdl.handle.net/10986/16965 |
| Summary: | Mining operations increasingly exist in
remote parts of developing countries, and with the combined
challenges in public services delivery and development
assistance, this is drawing the mining sector further into
catalyzing development at local, regional and national
levels. Responding to this multifaceted trend, the mining
sector has increasingly turned to foundations, trusts and
funds as vehicles to share the benefits derived from mineral
production with communities. This sourcebook reviews the
developing country experience of mining sector foundations,
trusts and funds to date, identifies aspects of leading
practice in this field and provides detailed examinations of
fourteen case studies from Peru, Southern Africa and Papua
New Guinea. It approaches this analysis from the
perspectives of the three sets of key stakeholders:
communities, companies and governments. Foundations, Trusts
and Funds (FTFs) have different structures and vary
considerably in different legal jurisdictions. Recognizing
these differences, this study refers to FTFs as a group
representing independent entities with options for
governance to be shared amongst a number of stakeholders.
There are three main purposes for which the mining sector
uses FTF structures: community investment - voluntary
actions or contributions by companies beyond the scope of
their normal business operations; compensation - payments
made by mining companies to mitigate the impacts generated
by projects; and government payments - taxes and royalties
as well as other payment schemes, including voluntary
contributions, which exist between mining companies and
various levels of government which are intended for
redistribution to communities through some form of benefit
sharing mechanism. While FTFs are not appropriate in all
situations, this sourcebook provides examples from a vast
variety of experience to assist communities, governments and
companies to consider the role of FTFs within their mining
benefit sharing approaches. |
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