Report Highlights Sustainable Ways for Countries to Tap Resources:
Geneva, Switzerland, 6 February 2012 – Six building blocks are needed
to help lift some of the world’s least developed countries out of
poverty by harnessing their mineral wealth, according to a joint
publication from the World Economic Forum and The Boston Consulting
Group (BCG).
A Framework for Advancing Responsible Mineral Development draws on the
expertise of 400 experts from NGOs, governments and mining companies
to provide practical advice aimed at enabling developing countries to
develop their mineral resources in a socially and economically
sustainable manner.
Examples of good practices highlighted in the report include the
world’s largest bauxite mining company, Alcoa, setting up a local
development council in Juruti, Brazil, which led to 21 projects, among
them the construction of a district police station and school, as well
as Rio Tinto deciding to publish all tax and royalty payments in the
28 main countries in which it operates.
“This report offers intelligent, relevant responses, drawn upon
real-life experience, on how to create a climate of trust,
transparency and understanding, which can bring benefits to all of the
various stakeholders in mining development,” says Richard O’Brien,
President and Chief Executive Officer of Newmont Mining Corporation,
and Chair of the World Economic Forum’s Mining & Metals Steering
Board.
The building blocks identified are: training programmes and sharing
knowledge; making sure people are informed about the benefits and
costs of mineral development; a collaborative process for stakeholder
involvement throughout mining projects; transparency; commonly agreed
compliance and monitoring combined with the enforcement of
commitments; and effective mechanisms to resolve disputes.
Huguette Labelle, Chair of Transparency International and a Member of
the World Economic Forum Global Agenda Council on the Future of Mining
& Metals, endorsed the report, saying: “Transparency is essential to
ensure prosperity for resource-rich countries, building the trust
necessary for effective collaboration among stakeholders.”
All six building blocks aim to increase trust between different
parties and create a stable long-term environment for mining projects.
The report highlights 22 examples of existing projects and initiatives
that show what can be done in a number of countries, including
Mongolia, Liberia, Ghana and Chile.
Underlying the proposals is an analysis of leading mining countries,
which shows that some combine huge untouched mineral resources with
lower levels of development. These countries, such as Guinea,
Mongolia, Peru and South Africa, could transform their socioeconomic
prospects by using the six building blocks to tap their resources.
“Having co-hosted the launch of the Forum’s Responsible Mineral
Development Initiative in Mongolia in June 2010, we fully support the
release of this year’s Report,” says Elbegdorj Tsakhia, President of
Mongolia. “The case studies and recommendations will help countries
such as ours develop our mineral resources in a fair and responsible
manner for all stakeholders. Socially as well as environmentally
responsible mining is not merely a challenge for the host countries,
but it is the prerequisite for sustainable global development.\”
Practical recommendations, in keeping with the six building blocks,
include encouraging companies and governments to publish
mining-related tax and royalty payments, creating local development
councils and the establishment of capacity development programmes.
To interview one of the authors, please contact desiree.mohindra@weforum.org
About The World Economic Forum
The World Economic Forum is an independent international organization
committed to improving the state of the world by engaging business,
political, academic and other leaders of society to shape global,
regional and industry agendas.
Incorporated as a not-for-profit foundation in 1971, and headquartered
in Geneva, Switzerland, the Forum is tied to no political, partisan or
national interests.
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting
firm and the world’s leading advisor on business strategy. We partner
with clients from the private, public, and not-for-profit sectors in
all regions to identify their highest-value opportunities, address
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competitive advantage, build more capable organizations, and secure
lasting results. Founded in 1963, BCG is a private company with 74
offices in 42 countries. For more information, please visit bcg.com.