Home / Policy areas / Growth and Resources Policy / Natural Resources Policy / Study for the International Council on Mining and Metals Phase I, II & III

Project Information

Phase I - OPM undertook Phase 1 of a study investigating how the exploitation of non-renewable mineral resources can support long-term and inter-generational socio-economic development. The first phase of the ICMM Resource Endowment Study was aimed at exploring the empirical puzzle why many developing countries have failed to harness natural resource exploitation to foster sustainable development, whilst a few exceptional countries have managed to do so. The Phase 1 report developed a country case study methodology to analyse under which macroeconomic, fiscal and governance conditions mining has contributed to sustainable development and poverty reduction, and a tool to identify key determinants of success in various operating environments supporting long-term and inter-generational socio-economic development. The results were presented and discussed at a high-level stakeholder workshop held in London in November 2005.

Phase II - Phase 2 of the study investigated how the exploitation of non-renewable mineral resources can support long-term and inter-generational socio-economic development. Based on a country case study methodology and a toolkit developed during the first phase of the ICMM Resource Endowment study, OPM  conducted two test studies in Ghana and Peru. These studies focused on the macro-economy and on the socio-economic and political conditions as well as governance structures that allow countries to pursue good policies. In addition OPM compared Ghana and Peru with the two similarly situated countries, Tanzania and Chile. The studies were supported by additional research conducted by UNCTAD and the WB Group. Country case study reports and the reviews of comparator countries were synthesised and summarised for presentation and discussion at a second high-level stakeholder workshop which took place in July 2005.

Phase III - The overall objective of Phase 3 is to explore, analyse, and develop further a number of possible partnership initiatives in three pilot countries: Ghana, Peru and Tanzania. The work is focused on six areas:

1. Enhance the management, transparency and effective use of mineral revenues - revenue management;
2. Enhance the socio-economic development of the areas affected by mining activity;
3. Poverty reduction and improve the lives of poorer families in those areas;
4. Increase the local content associated with mining projects;
5. Use mineral activity to help strengthen regional development planning and regional development more widely; and
6. Improve the mechanisms for dispute resolution.

The recommendations to emerge should be designed to enhance further the benefits of mining to local communities and to society more generally. This phase also aims to disseminate the findings and recommendations and to reach out to the mining industry's partners beyond the narrow circle of the sector.

 See also ICMM website