Supporting Governments and Civil Society: Legal Frameworks Governing Extractive Industries

CCSI is working with a number of governments and civil society organizations to provide advice on various issues relating to the regulatory regime for their extractive industries sector.

Australia: Supporting the evaluation of the EITI pilot

The University of Queensland (UQ) sub-contracted CCSI to support the evaluation of the Australian EITI pilot that UQ is undertaking. CCSI brought its international experience with EITI implementation to the evaluation team to provide comparative analysis of how particular issues have been dealt with in other countries.

Cameroon: Review of the mining sector’s legal framework

At the request of a coalition of NGOs in Cameroon, CCSI reviewed Cameroon’s legal framework governing the mining sector such as local content, discretion and transparency of the decision making processes, community relations, and assignment and transfer of concessions. The fiscal framework and the related issues of tax incentives, transfer pricing, stabilization clauses, ring fencing and progressivity of the regime were also reviewed in this analysis. The french version can also be found here.

In the frame of the same project, CCSI also ran fiscal analyses.

Democratic Republic of Congo: Review of the new draft Hydrocarbons Law and proposed amendments to the Mining Code

At the request of Global Witness, CCSI reviewed and advised on select provisions of the DRC’s new Draft Hydrocarbons Law (related to the environment, social impacts, allocation of rights, transparency and revenue management) and the proposed amendments to the Mining Code (related to allocation of rights, transparency, conflict minerals and environmental and social safeguards). CCSI comments on the March 2013 Draft Hydrocarbons Law are here, on the January 2013 proposed amendments to the Mining Code here, and on the October 2013 proposed amendments to the Mining Code here.

Similarly, in the course of 2013, at the request of Global Witness, CCSI reviewed and advised on select provisions of the draft Minerals Law in Afghanistan and of the Mining Act in South Sudan; in the course of 2014, CCSI undertook a review of Liberia’s Preliminary PSC 2014 and its attached bidding letter.

Israel : Review of the Israeli Local Content draft regulations 

After updating its fiscal framework for oil and gas exploitation, the Government of Israel realized that there was also a need to reinforce its local content requirements. In 2014, drawing from an international comparative analysis, CCSI provided advice on the draft regulations at the request of the Israeli Government.

Liberia: Partnership with the National Investment Commission

In July 2012, CCSI signed a Memorandum of Understanding (MoU) with the National Investment Commission (NIC) of Liberia to support the NIC with various investment-related projects and analyses. Subject to the MoU, CCSI assisted the National Investment Committee of the Government of Liberia in its review of the investment framework and investment proposals related to extractive industries and infrastructure.

Liberia: Review of Accounting Procedures Schedule of PSCs

In preparation for the renegotiation of a Liberian PSC, CCSI analyzed the Accounting Procedures in that PSC to advise on whether changes should be proposed during the course of the renegotiation.  CCSI compared the Liberian provisions to those in other PSCs, regionally and globally, to determine whether the Accounting Procedures accorded generally with international practices.  CCSI made recommendations for amendments to a number of provisions to ensure that key weaknesses were addressed.

Malawi: Uranium Mine Legal Framework

CCSI worked with Citizens for Justice, a civil society organization in Malawi, to analyze the environmental, economic and social impacts of the Kayelekera uranium mining project carried out by Paladin Energy Ltd (Paladin) in the northern part of Malawi since 2007. CCSI analyzed the Development Agreement signed by Paladin in relation to the Kayelekera project and assessed how the Development Agreement compares with a fair and robust legal framework. The legal analysis also proposes stronger provisions for consideration in future agreements.

CCSI also submitted comments on the proposed draft of Malawi’s Environmental Management Bill, 2007, together with Dr. Howard Smith of APChem Scientific Consultants.  The submission highlighted certain concerns with respect to the proposed Bill and makes suggestions for strengthening certain provisions.  Further, CCSI commented on a review of the legal and regulatory framework of Malawi’s hydrocarbons sector, highlighting gaps and suggesting areas to be strengthened.

Sierra Leone: Review of Environment – Related Legal Framework

CCSI conducted a scoping mission in Sierra Leone in July 2012, at the invitation of the Environmental Protection Agency in Sierra Leone (EPA-SL). CCSI met with stakeholders including government ministries, civil society organizations and international donors in order to assess Sierra Leone’s need for support with respect to the development of a framework for sustainable resource development, particularly focusing on environmental protection and related issues.

CCSI reviewed and advised on the environmental and social provisions of the new draft model mining contract for Sierra Leone, and worked with the EPA-SL to develop environmental regulations for the newly developing oil and gas sector. In 2012-2013, CCSI worked with the Environmental Law Clinic at Columbia Law School to understand Environmental Impact Assessment (EIA) processes in order to recommend how they could be strengthened, including by comparative analysis with countries where these processes are more efficient.

Tajikistan: Review of Policy Framework for Sustainable Investment in Mineral Resources

CCSI staff contributed to a study and evaluation sponsored by GiZ of the barriers to sustainable investment in mineral resources development in Tajikistan, and the policy frameworks and tools appropriate for increasing such investment and maximizing the potential benefits. The project included consultations with government and company officials, drafting a report, and presenting certain findings to government officials.

Timor-Leste: Review of Model Production Sharing Contract  

CCSI won a competitive bid to undertake a review of Timor-Leste’s model production sharing contracts (PSC) for the hydrocarbon sector. This involved a comparative analysis of the legal and fiscal regime to ensure the contracts include the most modern and innovative provisions for sustainable development, while remaining commercially competitive. The review also considered the existing regulatory regime governing the hydrocarbon sector and its interaction with the production sharing contracts to achieve the country’s development objectives.

Uganda: Review of Current Mining Legislation at the Request of Global Witness

At the request of Global Witness, CCSI reviewed and advised on select provisions of Uganda’s Mining Act 2003 and Mining Regulations 2004 (related to the oversight and governance mechanisms, environment, community consultation requirements, mechanisms to address smuggling and underreporting, and the fiscal regime). CCSI’s review was limited to these two pieces of legislation and did not account for the impact of related legislation or relevant institutions. CCSI comments can be found here.