International best practices on the role of local
governments in multi-stakeholder collaboration
for socially accountable mining and
sustainable community development

Professor David Brereton
Deputy Director – Research Integration
                                                    1
The Sustainable Minerals Institute: What we do
Presentation outline


• Mining – impacts and opportunities for local communities

• What should be the role of local government

• Making local government more effective

• How to involve local government more in the development
  process




                                                             4
A story from Australia: The Claremont
Preferred Futures Project
Overview of the Claremont initiative
• A collaboration between the local council and the company to
  better prepare the town for upcoming mine closure

• Preferred Futures Steering Committee formed under the
  guidance of the local Council and funded by the company

• Role of the Committee was to develop a strategy to broaden the
  town’s economic base

• Conducted socio-economic research and a community visioning
  process to inform the strategy

• Company and local government agreed to jointly fund a
  Community Development Officer to fund the strategy


                                                                   6
Large-scale mining: impacts and opportunities
Potential Impacts

Population influx

Increased economic activity

Increased demand on services (schools, health, etc)

Increased pressure on infrastructure (e.g. roads)

Social changes

Environmental impacts

                                                      7
Large-scale mining: impacts and opportunities
 Opportunities

 Expand the revenue base

 Create new opportunities for local business

 Increase employment opportunities

 Improve infrastructure and services

 Access funding for social programs




                                                8
Maximising value from mining projects: what to
avoid
Maximising value from mining projects: what to
work for
What we should be aiming for local
communities?
• improved quality of life

• protection of the environment

• more opportunities for people

• stronger institutions

• economic diversification



                                     11
Potential roles for local government



                                   Representer
              Service
                                        &
              Provider
                                    Advocate




                                                  Broker/
   Approver              Partner
                                                 Facilitator
The reality
• In most mining economies, local government has little or no
  regulatory authority over mining projects
   – reliance on influence and persuasion, rather than direction

• Local governments are mostly focused on service delivery and
  are often hindered by limited funding and capacity

• Local governments often do not do a good job of representing
  their communities with companies and government

• There are examples of partnerships between local government
  and companies, but they are not common
   – limited capacity of local government
   – lack of interest from mining companies


                                                                   13
What capabilities does local government need
to play a more active role in community
development?
• Understanding of         • Consultation
  development principles

                           • Communication
• Revenue management

                           • Collaboration
• Program planning and
  implementation




                                               14
Common problems with local government
• Lack of capacity
   – too few personnel, limited knowledge & skills, inadequate funding

• Unrepresentativeness
   – Dominated by a few individuals and groups; does not speak for the
     broader community

• Corruption and graft
   – funding used for personal gain instead of intended purpose
   – favouritism in decision-making

• Politicisation
   – Short term political goals of representatives dominate over longer
     term community interests



                                                                          15
Some suggested responses
• Funding arrangements
    – Too much money, too quickly, is not a good thing


• Require companies to consult with local government in conducting
  baselines & SIAs, and when developing community plans

• Citizen education

• Training of local government officials and representatives

• Technical facility to support development of management systems etc.

• Companies to make their management expertise available

• Specialist advisers


                                                                         16
Thankyou!

d.brereton@smi.uq.edu au


  www.csrm.uq.edu.au



                           17

Mongolia 2012 day 3 brereton

  • 1.
    International best practiceson the role of local governments in multi-stakeholder collaboration for socially accountable mining and sustainable community development Professor David Brereton Deputy Director – Research Integration 1
  • 3.
    The Sustainable MineralsInstitute: What we do
  • 4.
    Presentation outline • Mining– impacts and opportunities for local communities • What should be the role of local government • Making local government more effective • How to involve local government more in the development process 4
  • 5.
    A story fromAustralia: The Claremont Preferred Futures Project
  • 6.
    Overview of theClaremont initiative • A collaboration between the local council and the company to better prepare the town for upcoming mine closure • Preferred Futures Steering Committee formed under the guidance of the local Council and funded by the company • Role of the Committee was to develop a strategy to broaden the town’s economic base • Conducted socio-economic research and a community visioning process to inform the strategy • Company and local government agreed to jointly fund a Community Development Officer to fund the strategy 6
  • 7.
    Large-scale mining: impactsand opportunities Potential Impacts Population influx Increased economic activity Increased demand on services (schools, health, etc) Increased pressure on infrastructure (e.g. roads) Social changes Environmental impacts 7
  • 8.
    Large-scale mining: impactsand opportunities Opportunities Expand the revenue base Create new opportunities for local business Increase employment opportunities Improve infrastructure and services Access funding for social programs 8
  • 9.
    Maximising value frommining projects: what to avoid
  • 10.
    Maximising value frommining projects: what to work for
  • 11.
    What we shouldbe aiming for local communities? • improved quality of life • protection of the environment • more opportunities for people • stronger institutions • economic diversification 11
  • 12.
    Potential roles forlocal government Representer Service & Provider Advocate Broker/ Approver Partner Facilitator
  • 13.
    The reality • Inmost mining economies, local government has little or no regulatory authority over mining projects – reliance on influence and persuasion, rather than direction • Local governments are mostly focused on service delivery and are often hindered by limited funding and capacity • Local governments often do not do a good job of representing their communities with companies and government • There are examples of partnerships between local government and companies, but they are not common – limited capacity of local government – lack of interest from mining companies 13
  • 14.
    What capabilities doeslocal government need to play a more active role in community development? • Understanding of • Consultation development principles • Communication • Revenue management • Collaboration • Program planning and implementation 14
  • 15.
    Common problems withlocal government • Lack of capacity – too few personnel, limited knowledge & skills, inadequate funding • Unrepresentativeness – Dominated by a few individuals and groups; does not speak for the broader community • Corruption and graft – funding used for personal gain instead of intended purpose – favouritism in decision-making • Politicisation – Short term political goals of representatives dominate over longer term community interests 15
  • 16.
    Some suggested responses •Funding arrangements – Too much money, too quickly, is not a good thing • Require companies to consult with local government in conducting baselines & SIAs, and when developing community plans • Citizen education • Training of local government officials and representatives • Technical facility to support development of management systems etc. • Companies to make their management expertise available • Specialist advisers 16
  • 17.