Enhancing the Development Impact of Resource Industries

MARCH 23, 2009 (2)

ENHANCING THE DEVELOPMENT IMPACT OF RESOURCE INDUSTRIES THROUGH THE EFFECTIVE USE OF REVENUES AND CORPORATE SOCIAL RESPONSIBILITY INVESTMENTS

A High Level Workshop for Government, Industry and Civil Society

Sponsored by The Government of Mozambique The Governments of Australia and Norway The World Bank

Joaquim Chissano International Conference Centre (JCICC) Maputo, Mozambique

March 25-26, 2009

Background

Resource industries increasingly recognize that their long-term success depends on an equitable sharing of revenues and maximizing the development impact of their investments in host countries. Governments are equally under pressure from citizens to demonstrate that the investments made by resource companies have positive local impacts with minimal social and environmental damage, and that the state’s fiscal take from such operations has long-term sustained benefit.

Over recent years, there has been significant foreign investment in resource and related industries throughout southern Africa, including in mining and mineral processing, oil and gas, energy production and transmission, and transport. This investment is expected to continue beyond the current financial and commodity price crisis.

This workshop will bring together high-level representatives of Southern Africa Development Community (SADC) governments with active resource sectors, executives of resource sector companies active in the sub-region, and key non-governmental organizations. It will facilitate discussion on the impact of resource company investments, how such investment can be directed toward greater development impact while accepting the need for a strong business case behind each investment, and agree on pragmatic guidelines to maximize benefits of these investments in the host countries. DRAFT - MARCH 23, 2009 (2)

Program

Day One ~ Wednesday, March 25

8h00-9h00 Registration and Coffee

9h00-10h00 Welcome and Opening

Objectives of the Workshop: Michael Baxter, Country Director for Angola, Malawi, Mozambique, Zambia and Zimbabwe, World Bank

Introductory Remarks: Honorable Esperança Bias, Minister of Mineral Resources, Mozambique

Address: Her Excellency, the Honorable Quentin Bryce, AC, Governor General of the Commonwealth of Australia

Opening Address: His Excellency, the Honorable Armando Guebuza, President of the Republic of Mozambique

10h00-10h15 Group Photo and Coffee

Session 1: Macro-level Impacts of Resource Industry Investments and Government Responses

This session will provide an overview of the characteristics associated with natural resource wealth and the macro-level impacts that often result from large revenue inflows from resource industry investments, including pitfalls and good practices in regard to fiscal and revenue management responses.

10h15-10h35 Appropriate Fiscal and Macroeconomic Policy Responses Teresa Daban Sanchez, Senior Economist, Fiscal Affairs Department, International Monetary Fund

10h35-10h55 Revenue Management Arrangements: The Chile Case Rodrigo Fuentes, Universidad Catolica, Chile

11h00-11h45 Keynote Address: Opportunities and Challenges of Resource Industries Paul Collier, Director, Center for African Economies, Oxford University

11h45-12h15 Questions and Comments Moderators: Honorable. Manuel Chang, Minister of Finance, Mozambique, and Daniel Munene, Lecturer in Economics, University of Cape Town

12h15-13h15 Lunch (JCICC)

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Session 2: Enhancing Development Impact through Corporate Social Responsibility Initiatives

Associated with their investment in productive assets, resource companies often allocate funds for development in local communities, and/or at the national level. This session will present examples from Africa and elsewhere of such investments, with particular attention to their effective allocation, use, and management, and local government capacity to utilize and manage such funds.

13h15-14h55 Innovative Approaches to Corporate Social Responsibility and Sustainable Community Development: Case Studies (20 minutes each)  Incorporating Local Economic Development in the Legal Framework - Experiences from South Africa, Bridgette Radebe, Mmakau Mining  Sustainable Community Development, Barnard Mokwena, Vice President for External Affairs, Lonmin, Plc.  Building Local Capacity for Management of Resource Revenues, Cesar Fonseca, Manager, Institutional Relations, BPZ Energy, Inc., and Wilmer F. Dios Benitez, Presidente Regional de Tumbes, Peru  Working with Mining Companies and Local Communities to Identify Social Needs and Develop Solutions, Simon Richard, PACT  The Role of Corporate Foundations to Enhance Community Development: Rossing Foundation, Jean Chawapiwa-Pama, Vice President Communication & External Relations Africa, Rio Tinto

14h55-15h45 Questions and Comments

Moderators: Honorable Esperança Bias, Minister of Mineral Resources, Mozambique; Dan Owen, Coordinator, Community Driven Development, World Bank

15h45-16h00 Coffee

16h00-16h20 Developing Local Skills and Content: “Skills for Work” – Mozambique’s Framework for Megaproject Investment in Technical Education, Zeferino Martins, Director, PIREP (Integrated Program for the Reform of Technical Professional Education), Ministry of Education and Culture

16h20-16h40 Perspectives from the Hydro Industry on Corporate Social Responsibility Egidio Leite, Manager, Camargo Correa

16h40-17h00 Situating Corporate Social Responsibility in the Africa Mining Vision: A Perspective Antonio Pedro, United Nations Economic Commission for Africa (UNECA)

17h00-17h45 Questions and Comments Moderators: Honorable. Salvador Namburete, Minister of Energy, Mozambique, and Dr. Fred Cawood, Professor of Mine Surveying, School of Mining Engineering, University of the Witwatersrand

18h00 Cocktails and Dinner - Hosted by the Government of Mozambique (JCICC)

Remarks by Michael O’Keeffe, Executive Chairman, Riversdale Mining Ltd. Introduced by Honorable Esperança Bias, Minister of Mineral Resources, Mozambique

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Day 2 ~ Thursday March 26

8h00-9h00 Coffee

Session 3: Transparency and Accountability for Government, Industry and Civil Society

This session will address the importance of transparency and accountability on the part of both government and companies in regard to the resource industry, including but not limited to revenues generated by the industry and the key role that civil society has to play in this regard.

9h00-9h20 Revenue Transparency and Good Governance of Resource Industries Jurgen Reitmaier, Special Regional Adviser, EITI Secretariat

9h20-9h40 Civil Society Perspectives John Capel, The Bench Marks Foundation

9h40-10h00 Industry Perspectives Paulino Gomes, Mozambique License Cooordinator, StatoilHydro

10h00-10h45 Questions and Comments

Moderators: Honorable Ted Kalebe, Minister of Energy and Mines, Malawi; and Paul Mitchell, Director, Mitchell McLennan and Former President of the International Council on Mining and Metals

10h45-11h00 Coffee

11h00-12h45 Session 4: Enhancing the Development Impact of Resource Industries

Presentation, discussion, and endorsement of model guidelines, drawn from successful global practices, for government and industry to enhance the impact of corporate social responsibility investments and government’s use of resource revenues and consideration of a proposal (if appropriate) for a political summit among the participating countries to get greater ownership and application of the guidelines

11h00-11h20 Workshop Findings and Recommended Principles to Enhance the Development Impact of Resource Industries, Paulo de Sa, Manager, Oil, Gas and Mining Policy Division, World Bank

11h20-12h00 Brief Interventions by Selected Participants (5 minutes each, 2-3 from each sector below)  Government Representatives  Industry Representatives  Civil Society Representatives

Moderator: Honorbale Dr. Abdul Razak, Deputy Minister of Mineral Resources, Mozambique

12h00-12h45 Discussion

12h45-13h15 Closing Remarks: Poul Engberg-Pedersen, Director General, NORAD, and Honorable Aiuba Cuereneia, Minister of Planning and Development, Mozambique

13h15 Lunch (JCICC)