Royalty Management

The importance of the subject cannot be exaggerated. “Since oil revenues are to a large part concentrated in the public sector, the question of how the oil revenue should be spent and distributed across present and future generations becomes key to any economic development”. Government authorities are faced with a number of options with respect to the allocation of resource revenues, falling under two general headings: spending (comprising consumption and investment); or saving (through debt reduction or asset accumulation).

Since 2005, IFC in collaboration with other donor partners such as CIDA, DFID, USAID and the Government of Norway, has been successfully implementing Royalty Management (RM) support projects in Peru and Colombia.

This report has been compiled by a group of African and international civil society organisations concerned about the lack of transparency in mining contracts, as well as the revenue that national budgets forego because of excessive mining tax concessions as well as multinational mining companies avoiding and evading tax.

The oil sector has a number of features that makes its taxation not only especially important for many countries, but also particularly challenging. This practice note provides an overview of the key issues and trends in the taxation of crude oil extraction.

Proactive corporate action that dramatically overhauls how companies use, innovate around, and invest in water supplies will be crucial for gaining regulatory and community goodwill, improving reputation, and mitigating risks. Such anticipatory corporate water strategies will include not only 1) innovating to significantly increase value chain and product eco-efficiency; but also 2) investing in the restoration of ecological systems that affect water flows; and 3) engaging in collaborative strategies for maintaining water resources over time. Together, these three components- innovation, investment, and collaboration- construct a 21st century corporate water strategy that goes far beyond tracking inputs and outputs.

Beginning on January 1, 2009, all new EI clients will need to commit to report revenues paid to governments on a national as well as regional level and in a manner that follows the attached template.

The focus of this document is to articulate in detail the process, key components, and success factors associated with the Anglo Zimele model, the enterprise development fund established by Anglo American to empower black entrepreneurs through the creation and transformation of small and medium enterprises (SMEs) in South Africa.

This report is split into two volumes providing users with information, tools, methodologies, case studies and tips on how participatory budgeting can be introduced and sustained. These resources have been collected from local governments where participatory budgeting is already being practised.

This is the second of two volumes which provide users with information, tools, methodologies, case studies and tips on how participatory budgeting can be introduced and sustained. These resources have been collected from local governments where participatory budgeting is already being practised.

EITI Validation Guide.

The MIM (acronym for “Mejorando la Inversión Municipal”) is an IFC sponsored project that helps civil society organizations
undertake a systematic monitoring of mining canon flows and municipal investment in selected municipalities in Peru.

A two-page document on complementary information on the Improving Municipal Investment (MIM) project in Peru. The MIM Initiative is an IFC sponsored project that helps civil society organizations undertake a systematic monitoring of mining royalties flows and municipal investment in selected municipalities in Peru.

A two-page document on complementary information on the Colombia Oil Royalty Management project.

The aim of these programs is to help local communities take advantage of the extractive industry related resources they receive. The programs have been structured in a manner that allows for IFC to collaborate with several oil, gas and mining investment companies, both IFC and non-IFC clients, eager to support local revenue management improvements in their area of influence.

A look at the characteristics of oil funds in Chad, Azerbaijan, and Kazakhstan shows significant structural weaknesses in revenue management funds.

Harnessing the opportunities that the mining sector can bring to community development is not an easy task, and not one that can be completed quickly. Within a limited time frame the activities of seven mining operations and two projects at the pre-operational phase were reviewed and lessons drawn from these experiences as well as from other community development and poverty reduction programmes in Guinea. Examples of good practice approaches to community development in the extractive industry in other countries have also been considered. This report and the framework presented are intended as a first step in establishing a new approach to community development and are dependent on the participation and commitment of all players.

A Presentation on mining, governance, and revenue management.

The Global Development Alliance of USAID has recognized the increasing importance of how partnership’s are governed and (seen to be) held to account. The GDA has therefore commissioned AccountAbility to:

• Develop a set of principles and a diagnostic rating tool of good governance and accountability practice that is appropriate to partnerships’ missions, objectives and their stakeholders.

These tools are embodied in the Partnership Governance and Accountability (PGA) Framework and are aimed at improving partnership performance enhancing both their effectiveness and legitimacy.

This document was prepared for Sharing Experiences: Monitoring the Impact of Community Development Programs Linked to Extractive Industry (EI), held Tuesday December 5, 2006, Washington, DC, and hosted by CommDev, World Bank/IFC Oil, Gas and Mining Department and WBI. This presentation is an overview of public revenue management and distribution, highlighting monitoring too.

This case-study was prepared for the Latin America & Caribbean "Regional Workshop on Accountability, Participation and Poverty Reduction", held in Punta Cana, Dominican Republic, June 2003.

This conference was convened within the framework of the Diamonds for Development initiative (D4D), which focuses on the sustainable use of revenue from mineral resources for the purposes of development. It was organised by the Government of Liberia in partnership with UNDP Liberia and International Alert with the objective of identifying ways to ensure that the alluvial diamond sector contributes to sustainable peace and development in the Mano River Basin sub-region.

Rents generated by oil and gas production represent a substantial share of GDP, budget and foreign exchange revenues in many petroleum producing developing countries. Unfortunately, evidence to date suggests that as often as not petroleum rents become a curse rather than a blessing, with countries enjoying those rents falling behind non petroleum states in achieving development targets and experiencing more than their share of political instability and violent conflict. This paper discusses the problems which need to be addressed on three different levels: rent collection; rent management and rents distribution.

This two page paper discuses revenues from oil, gas, and mining production through taxes, royalties, and other receipts and how they are important engine for economic growth and social development. 

In some nations, the lack of accountability and transparency in these revenues can exacerbate poor governance, leading to corruption and conflict and increasing inequality. Hence the argument that an abundance of natural resources more often becomes a "curse" than a "blessing" for developing nations.

This study provides an overview of the impact of oil on the Mexican economy, and the management of oil rents engineered by the government from the 1970s to 2001. The first section provides an overview of the impact of the oil industry on the economy during the last twenty-five years. Section two reviews the main findings of the literature on rent management of commodity windfalls. Sections three and four describe the Mexican experience in oil rents management from 1973 to 1986 and from 1986 to 2001. The last section concludes and presents policy recommendations.

Follow the Money begins with an overview of civil society budget work-what it is, why it is important, its main elements and strategies. The report then shifts to an overview of the economics and politics of extractive industries-what is happening around the world, the main battles around mineral and petroleum extraction, and how organizations are responding. The report then focuses on four key factors for success in budget and extractive industry revenue work: (1) Analysis; (2) Organizing and Coalition Building; (3) Media and Public Education; and, (4) Dealing with Public Officials.

The aim of this report is to build understanding of joint evaluations: what we mean by the term, what the benefits and challenges are, and how the benefits can be maximized and the challenges minimized or overcome. The report also puts forward long-term and strategic recommendations on joint evaluations.

This report reviews some of the main legal instruments used to date to combat natural resource corruption—as well as new, untested legal remedies that appear promising. Focusing on resource spoliation in Africa, it provides case studies to demonstrate what has and has not worked. The report treats the "home countries" of resource extraction companies separately from the "host countries" where they operate. It looks at both criminal and civil means of redress. Although corruption in transnational resource extraction is generally subject to inadequate legal safeguards, the report identifies opportunities for civil society action.

This paper briefly reviews the natural resources curse hypothesis and argues that poor performance is not an inherent characteristic of minerals-driven economies`. It considers mineral endowments a capital that can spur growth and reduce poverty in developing countries if deployed under appropriate conditions.

The manual is suitable as a model for a complete course on mine rehabilitation, or to teach on selected individual units. In order to make it possible for the manual to be used as a stand-alone source document, some material on environmental impacts and environmental management generally has been included. Trainers should add material or modify some sections to suit local circumstances. By providing a structure for the package, in a convenient loose-leaf format, trainers can expand certain themes and develop their own exercises and practical sessions. Very simple overhead slide masters have been included.

This paper investigates national mineral policy, legislation and regulation from a government perspective. It initially provides an overview of some of the major global mineral sector policy trends.

This paper analyses the distribution of mineral rents in Southern Africa. Major rent recipients are identified, including investors, government, resource owners, indigenous groups and land owners, and a rent-sharing model is proposed with the intent of providing an equitable distribution of mineral wealth among them.

The Report is not a management textbook. Its purpose is to help policy advisers, officials, industry executives, and civil society advocates in producing countries to identify possible improvements in their petroleum sector governance.

In the Philippines, the technical assistance aimed to build CSR awareness among government officials and key stakeholders, to engage in and stimulate constructive dialogue on how CSR could be a tool for more responsible approaches to managing social and environmental impacts in the mining industry.

The Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR) embarked on a project to identify examples of Filipino mining companies that are striving to conduct their traditional business activities in a socially responsible manner.

Following a series of meetings in January 2003, it was agreed that the Corporate Social Responsibility Practice of the World Bank Group would commission a diagnostic study into CSR mining practices of companies operating in the Philippines. This report would frame the technical assistance program of the CSR Practice which is aimed at supporting the Philippine governments’ engagement with corporate social responsibility (CSR) in the mining sector.

This book is the second part of the World Bank Group’s report on company codes of conduct and international standards. In the process of analyzing the codes of conduct, a decision was made to review only the policies of MNEs and non-corporate entities, and not their practices.

The World Bank Group is engaging in a partnership with the Government of Angola (GoA), the country’s private sector and civil society to provide technical assistance in strengthening the corporate social responsibility (CSR) agenda in the oil sector.

Subject of this report is evaluation of the monitoring project from the perspective of OSI-AF acted as a principle donor, facilitator and coordinator of NGO monitoring groups. The evaluation will go through identification of strength and weaknesses of each project phases. It will also provide recommendations for second stage of NGO monitoring in 2005 to respond to identify weak points, to improve the process and to further promote capacity of local NGOs.

Nexen, in partnership with Pro-Natura International (Nigeria), is working with five Local Government Areas in the Oron region of coastal Nigeria towards replication of a sustainable model of participatory community development.

In April 2003, IPIECA hosted an international Stakeholder Dialogue, facilitated by Business for Social Responsibility. This two-day Dialogue brought together an equal number of industry representatives and stakeholders ranging from NGOs, public sector/multilateral organizations and academia. This report summarizes the results of these discussions.

This set of documents represent the results of a facilitated workshop between BP and various NGO Working Group Representatives. The agendas of these workshops varied from the use of local resources to human rights.

This guide for the implementation of the ISO 9001 Quality Management Systems and ISO 14001 Environmental Management Systems contains all the needed information, background, gap analysis, reference tables, implementation flow charts and example manuals and procedures. It is intended for small and middle-sized enterprise (SME) whose resources such as time, manpower and finance are limited and is designed in such a way that unnecessary paperwork, documentation, and outside specialist help are minimised.

The Whitehorse Mining Initiative Leadership Council Accord establishes a set of principles and goals that are designed to act as a strategic vision and framework for decisionmaking in the Canadian mining sector.

The guide provides tools for companies to create their own code of conduct and rating system for suppliers, suggestions as to how they can improve their internal logistics towards a more sustainable model and a strategy for incorporating sustainability into product and service design.

Extractive industries (oil, gas and mining) have generated enormous revenues for a number of countries. Revenue payments, when effectively spent, have the potential to bring about dramatic improvements in citizens’ lives. When spent on public investments in health and education services, they can help lift poor children out of poverty. This report aims to put the focus back on the direct action that companies can take to support improved transparency of revenue flows in the extractive industries

Beneficiary assessment (BA) is a qualitative research tool used to improve the impact of development operations by gaining the views of intended beneficiaries regarding a planned or ongoing intervention. This manual provides guidance for Bank and social fund staff on how to design and implement a Beneficiary Assessment of a social fund.

On the basis of economic and political analysis of a number of resource rich countries, it has been argued that oil and minerals in many cases have had a negative impact on economic growth and political stability. The report provides an overview of the mining sector in Tanzania, including historical background, mining policy, as well as the institutional and legal framework.

This Oil and Gas Report Card was prepared for the UNEP report ‘Advancing Progress: Industry as a partner for sustainable development’, as follow-up to the World Summit on Sustainable Development (WSSD) sector reports process.

This report presents some examples of good practices in cooperation between authorities responsible for programming management and control of European Union (EU) Funds, and non-governmental organisations (NGOs) in new and old Member States as well as candidate countries.The report includes recommendations, suggestions and challenges regarding the establishment of a stronger partnership principle between the EU and national authorities and NGOs (in particular those working in the field of environmental protection).