Model Mining Development Agreement – Transparency Template

The document analyzes the International Bar Association's Model Mining Development Agreement (MMDA 1.0), providing a template and narrative to ensure mining contracts promote sustainable development, transparency, and equitable resource distribution. It details key contractual areas including land tenure, royalties, taxation, and community obligations, while emphasizing the use of international standards like the IFC Performance Standards and EITI. Additionally, the report investigates the existence of similar model agreements for the oil and gas sector, concluding that no internationally accepted model currently exists despite the availability of various national form contracts.

• The MMDA 1.0 is designed to balance the rights of investors and host states by providing 'lead clauses' and alternative options derived from the analysis of numerous existing mine development agreements and stakeholder consultations.
• Effective mining agreements should prioritize transparency, requiring that the contract and related studies—such as environmental and social impact assessments and closure plans—be public documents.
• The report identifies four primary royalty models: profit-based, gross value-based, net value-based, and fixed unit-based royalties, noting that the choice depends on the commodity and the risks associated with processing.
• To ensure sustainable development, the MMDA advocates for 'mutual obligations' where both the state and company commit to protecting human rights and preventing corruption, with penalties for bribery potentially including contract cancellation.
• The document suggests moving away from blanket tax stabilization clauses toward specific, time-limited 'stability periods' and non-discriminatory regulatory measures for health, safety, and environmental laws.
• Community Development Agreements (CDAs) are highlighted as essential for a 'social license to operate,' and the report suggests that a breach of a CDA should be considered a breach of the primary mining agreement.
• Mine closure obligations must be integrated from the start of the project, requiring a closure plan updated every five years and a financial guarantee to ensure the state is not left with clean-up costs.
• A search for 'model' oil and gas development agreements concluded that while many national form contracts exist, there is no single document with broad international acceptance to serve as a global template.

APA

Mann, H., Danielson, L., Disney, K., Phillips, M., & Zubkova, M. (2012). Model Mining Development Agreement – Transparency Template. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/mmda_transparency_report.pdf

Chicago

Mann, Howard, Luke Danielson, Kristi Disney, Mark Phillips, and Marketa Zubkova. Model Mining Development Agreement – Transparency Template. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/mmda_transparency_report.pdf.

Wikipedia

{{cite report |last1=Mann |first1=Howard |last2=Danielson |first2=Luke |last3=Disney |first3=Kristi |last4=Phillips |first4=Mark |last5=Zubkova |first5=Marketa |title=Model Mining Development Agreement – Transparency Template |publisher=International Institute for Sustainable Development |date=May 2012 |url=https://www.iisd.org/system/files/publications/mmda_transparency_report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mann2012model, author = {Mann, Howard and Danielson, Luke and Disney, Kristi and Phillips, Mark and Zubkova, Marketa}, title = {{Model Mining Development Agreement – Transparency Template}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = may, url = {https://www.iisd.org/system/files/publications/mmda_transparency_report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }