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132 results
Local Content Policies in the Mining Sector: Scaling up local procurement
The report examines local content policies (LCPs) in the mining sector, specifically focusing on local procurement. It details how 'local' is defined through geography, value addition, and ownership, and outlines various demand-side and supply-side policy options. The document emphasizes that for these policies to succeed, they must be supported by pre-conditions such as capacity analysis, a conducive business climate, and strong monitoring and enforcement mechanisms.
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Document type: Report
Legal Framework of Environmental and Social Impact Assessment in the Mining Sector
The report analyzes the legal frameworks of 22 IGF member countries, identifying systemic weaknesses in how ESIAs and related plans (ESMPs, closure plans, and RAPs) are used as decision-making tools. Key issues include ambiguity over the rights of exploration permit holders during the transition to exploitation, inadequate sequencing of document submission, and weak monitoring mechanisms. It argues that ESIAs should be capable of leading to project rejection and recommends the use of Strategic Environmental Assessments (SEAs) to identify sensitive areas before exploration permits are granted. The document also highlights the risk of international arbitration arising from these legal ambiguities.
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Document type: Report
Regards sur les incitations : Concurrence fiscale dans le secteur minier
The report analyzes tax incentives across 104 mining projects in 21 developing countries, finding that while legislation is the primary source of incentives, African countries rely more heavily on discretionary contracts. The most common incentives are fiscal stabilization clauses and corporate income tax breaks, both of which pose significant revenue risks. The study notes that the use of these incentives peaked in the late 1990s and again during the 2014-2016 commodity price crash, suggesting a correlation between low commodity prices and more generous tax terms.
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Document type: Report
Tax Incentives in Mining
The document examines the use of tax incentives in the mining sector, particularly in developing countries, highlighting the risk of overly generous incentives that reduce government revenue. It specifically warns against unintended behavioural responses, such as the acceleration of production during time-limited tax holidays to maximize tax-free revenue, which ultimately depletes resources and lowers long-term fiscal receipts.
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Document type: Guide
Local Content Policies in the Mining Sector: Stimulating direct local employment
The document examines how host governments can stimulate direct local employment in mining to drive socioeconomic growth and maintain a social licence to operate. It outlines a five-step process for developing local employment policies: assessing the sector's role in national development, evaluating labour supply and demand, setting goals, formulating policies, and monitoring outcomes. The report categorizes interventions into regulatory 'stick' policies—such as employment quotas, mandated training, and visa restrictions—and facilitative 'carrot' policies, including bidding preferences, fiscal incentives, and support for training facilities. It emphasizes the need for context-specific strategies that address gender inequality and the inclusion of Indigenous Peoples, while warning that automation and technological trends may shift future workforce requirements.
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Document type: Report
Designing Local Content Policies in Mineral-Rich Countries
The report analyzes local content policies (LCPs) used by mineral-rich nations to increase the use of domestic labor, goods, and services in the mining sector. It details various policy instruments—ranging from mandatory quotas and ownership requirements to government incentives and voluntary business initiatives—and examines their practical application in countries such as Norway, Chile, Ghana, and Brazil. The document argues that LCPs often fail when implemented as blanket provisions without clear objectives or sufficient industrial capacity. It identifies critical prerequisites for success, including institutional readiness, a favorable business climate, and a long-term vision that transcends political cycles. The report concludes that effective LCPs require a combination of quantitative and qualitative measures, robust monitoring through key performance indicators, and strong partnerships between governments, mining firms, and local suppliers to ensure sustainable economic diversification.
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Document type: Report
Local Content Policies in the Mining Sector
The report examines downstream beneficiation—the domestic processing of raw materials—noting that policies are often driven by political goals rather than economic analysis. It identifies key prerequisites for success, including guaranteed market demand, infrastructure, and inexpensive energy, while arguing that proximity to raw materials is increasingly less important than proximity to consumers. The document analyzes five policy options: incentives, prescriptive measures, negotiations, bidding, and government-led investments, highlighting that without a strong business case, these can lead to inefficient 'white elephant' projects. It concludes with recommendations for governments to use market and cost-benefit analyses, including considerations for environmental externalities and the risk of stranded assets in the oil and gas sector due to global decarbonization targets.
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Document type: Report
Subsidy Swap: Reducing fossil fuel subsidies through energy efficiency and renewable energy in Zambia
The report investigates the potential for Zambia to transition from fossil fuel subsidies to sustainable energy investments. It identifies that while petroleum subsidies were largely eliminated in 2016, significant subsidies remain in the electricity sector, particularly for the mining industry. The authors propose two 'subsidy swaps': redirecting electricity subsidies to fund energy efficiency in mining and replacing expensive diesel generators with solar PV. The report concludes that both are feasible, with solar PV already progressing through initiatives like Scaling Solar and GET FiT, while the mining sector swap requires further research into energy savings potential and fund administration.
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Document type: Report
HOW CAN AFRICA MAXIMISE ITS MINERAL WEALTH?
The paper examines how African countries attempt to move beyond the export of raw minerals through resource-based industrialisation, specifically focusing on the role of Chinese investment. It analyzes tools such as export restrictions, local content requirements, and fiscal policies, concluding that these measures often fail due to inadequate infrastructure, energy shortages, and a lack of human capital. The author argues for a shift toward 'product space diversification'—developing capabilities that allow for a broader variety of exports—rather than focusing solely on downstream mineral processing (beneficiation).
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Document type: Research paper
RCEP A secret deal
The report concludes that RCEP negotiations have failed transparency and public participation tests, operating largely in secret while granting privileged access to business lobby groups. It examines the specific failures of participating nations—including Australia, India, Japan, South Korea, China, Philippines, Indonesia, and Malaysia—highlighting the exclusion of parliaments and civil society. The document warns that this secrecy facilitates corporate influence over intellectual property, investment rules, and public services, and recommends a shift toward a democratic, participatory policy-making process.
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Document type: Report
Local content policies
The document outlines a four-step process for governments to leverage mining investments for national development: aligning with national objectives, taking stock of current capabilities, crafting specific policies, and establishing monitoring mechanisms. It details five types of local content policies: local procurement, direct employment, horizontal linkages (infrastructure and capabilities), downstream beneficiation, and the fostering of national mining firms. The guide emphasizes that policies must be context-specific, gender-equitable, and compliant with international trade and investment laws, while warning that automation may reduce future employment and procurement opportunities.
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Document type: Guide
Guide IGF pour les gouvernements : Les politiques de contenu local
The document outlines a four-step process for governments to integrate the mining sector into national development plans through local content policies. It categorizes these policies into five main types: local procurement, direct local employment, horizontal linkages (infrastructure and capacity), downstream linkages (product enrichment), and the strengthening of national mining companies. The guide emphasizes that there is no one-size-fits-all model, as success depends on a country's specific industrial base, skills availability, and business climate. It also addresses cross-cutting challenges, such as the impact of automation on employment and the potential conflicts between local content requirements and international trade and investment laws.
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Document type: Guide
PEER PRESSURE AND PEER LEARNING IN MULTI-STAKEHOLDER INITIATIVES
The report evaluates the APRM, OGP, and EITI, finding that while the OGP and EITI successfully employ peer learning and pressure to enforce standards and protect civil society, the APRM lags behind due to a lack of critical engagement and a failure to implement sanctions for non-compliance.
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Document type: Report
Will the Ramaphosa dawn ripple across SADC?
The paper argues that SADC's integration efforts have been hindered by weak leadership, a lack of enforcement powers in its Secretariat, and a reluctance by member states to cede sovereignty. It suggests that President Ramaphosa's background in mining could drive a future-oriented regional mining strategy, particularly regarding minerals for renewable energy batteries, and that strengthening the SADC Parliament is necessary to ensure regional policies are domesticated into national laws.
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Document type: Research paper
CASE STUDY IGF Guidance For Governments: Leveraging Local Content Decisions for Sustainable Development
The document analyzes the rise and fall of Australia's domestic steel industry, which was initially built through protective tariffs, bounties, and an iron ore export ban from 1938 to 1960. While these measures successfully met domestic demand for over 80 years, the industry struggled with low productivity and failed to become globally competitive once protections were lifted. Later attempts by the Western Australian government in 1996 to mandate downstream beneficiation through legislative acts led to expensive projects by BHP and Rio Tinto that never reached economic viability and were eventually written off. The case study concludes that while government intervention can establish downstream industries, long-term success requires a sophisticated industrial policy based on comparative advantages and market capabilities rather than prescriptive requirements.
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Document type: Case study
Botswana: Upstream linkages—The challenge of aligning supply-side policy options with the needs of local companies
The document analyzes Botswana's approach to increasing local procurement in mining through the Economic Diversification Drive. It identifies a disconnect where demand-side preferences lack enforcement, leaving local procurement dependent on supply-side initiatives. While programs like the Private Sector Development Programme (PSDP) exist, the study finds they often provide reactive support for financial crises rather than proactive management mentoring, suggesting a misalignment between policy priorities and the basic skill needs of small, micro and medium enterprises (SMMEs).
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Document type: Case study
South Africa: Upstream linkages—Fighting inequality by promoting local procurement
South Africa utilizes a combination of mandated procurement percentages and Social and Labour Plans (SLPs) to promote ownership by historically disadvantaged South Africans (HDSAs) in the mining sector. The system employs a scorecard approach under the Broad Based Black Economic Empowerment (B-BBEE) Act, where mining companies are incentivized to procure from high-scoring B-BBEE suppliers to maintain their own scores and avoid fines or the revocation of licenses. Proposed targets for 2019 suggest increasing B-BBEE procurement to 60% for capital goods, 70% for consumable goods, and 80% for services. On the supply side, the Small Enterprise Development Agency (Seda) provides non-financial support, including mentorship and training, though the document notes a lack of connection to finance and targeted investment. The case study concludes that while the scorecard approach offers flexibility, the focus on community development in SLPs and a lack of supply-side investment may hinder the development of larger-scale industrial capacity.
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Document type: Case study
GUIDANCE FOR GOVERNMENTS: LOCAL CONTENT POLICIES
The guidance outlines a four-step process for creating local content policies: aligning with national objectives, taking stock of domestic capabilities, crafting specific policy instruments, and establishing monitoring and enforcement mechanisms. It details five types of local content objectives: local procurement, direct employment, horizontal linkages for diversification, downstream beneficiation, and the fostering of national mining firms. The document warns that policies must be context-specific and cautions against 'one-size-fits-all' solutions, noting that automation and international trade laws (such as WTO rules) present significant challenges to traditional local content strategies.
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Document type: Executive summary
GUÍA PARA GOBIERNOS: POLÍTICAS DE CONTENIDO LOCAL
The document outlines a four-step framework for governments to implement local content policies in mining: aligning with national development goals, conducting a situational inventory, selecting appropriate policy instruments, and establishing monitoring and enforcement mechanisms. It categorizes local content policies into five types: local procurement, direct local employment, horizontal linkages (diversification beyond mining), downstream linkages (processing minerals), and the development of domestic mining companies. The guide warns that there are no one-size-fits-all solutions and highlights risks such as technological automation reducing employment and potential conflicts with international trade and investment laws, specifically WTO regulations.
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Document type: Executive summary
GUIDE À L'INTENTION DES GOUVERNEMENTS: LES POLITIQUES DE CONTENU LOCAL
The guide outlines a four-step process for governments to integrate mining investments into national development plans through local content policies. It details five types of policies: local procurement, direct local employment, horizontal links to non-mining sectors, downstream value addition, and the strengthening of national mining companies. The document emphasizes that there is no universal model, as success depends on a country's specific socioeconomic context, infrastructure, and capacity. It also warns of challenges such as technological automation reducing employment and potential conflicts with international trade and investment laws, specifically WTO rules regarding performance requirements.
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Document type: Executive summary