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Mineral Rights Cadastre Public Disclosure Authorized Public Disclosure Authorized 48609 Extractive Industries for Development Series #4 June 2009 Public Disclosure Authorized Mineral Rights Cadastre Public Disclosure Authorized Public Disclosure Authorized Promoting Transparent Access to Mineral Resources Enrique Ortega Girones Alexandra Pugachevsky Gotthard Walser Public Disclosure Authorized EXTRACTIVE INDUSTRIES FOR DEVELOPMENT SERIES 1 The World Bank Group’s Oil, Gas, and Mining Policy Division Oil, Gas, Mining and Chemicals Department A joint service of the World Bank and the International Finance Corporation The Oil, Gas, and Mining Policy Division series publishes reviews and analyses of sec- tor experience from around the world as well as new findings from analytical work. It places particular emphasis on how the experience and knowledge gained relates to developing country policy makers, communities affected by extractive industry enterprises, and civil society organizations. We hope to see this series inform a wide range of interested parties about both the opportunities and the risks presented by the sector. The findings, interpretations, and conclusions expressed herein are those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliat- ed organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. This paper may not be resold, reprinted, or redistributed for compensation of any kind without prior written permission from the World Bank. For free downloads of this paper or to make inquiries, please contact: Oil, Gas, and Mining Policy Division Oil, Gas, Mining and Chemicals Department World Bank MSN F8K-800 1818 H Street, NW Washington, DC 20433 [email protected] Copyright © 2009 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433, U.S.A. All rights reserved. TABLE OF CONTENTS Acknowledgments ............................................................................................................................. v Abbreviations and Acronyms ......................................................................................................... vi I. Abstract ...................................................................................................................................... 1 II. Introduction ............................................................................................................................... 3 A. Mineral Rights Management .......................................................................................... 4 B. Definition and Evolution of the Term Cadastre ........................................................ 4 C. Structure of this Document ......................................................................................... 5 D. Generalized Mining Sequence ....................................................................................... 6 III. Mineral Rights Management and the Mineral Rights Cadastre ...................................... 7 A. Mineral Rights Management—Concepts and Principles ......................................... 8 1. Legal framework and background .......................................................................... 8 2. Institutional framework for an MRC....................................................................10 3. Mandate and functions ............................................................................................12 4. Interinstitutional position .......................................................................................13 5. Decentralization .......................................................................................................14 B. Implementation Principles for Effective Mineral Rights Management ................14 1. Transparency ..............................................................................................................14 2. No subjectivity in evaluation criteria ...................................................................15 3. Nondiscretionary decisions ...................................................................................16 C. The Geometry of Mineral Rights ...............................................................................16 1. The cadastral unit (CU) concept...........................................................................17 2. The use of GPS technology ....................................................................................19 D. Information Technology for Mineral Rights Management .....................................20 1. Benefits and limitations of computerized cadastre systems ...........................20 2. Technical characteristics and required functionalities ......................................21 3. The transition to computerization .......................................................................22 4. Computerization and decentralized cadastres ..................................................22 5. The value of computerization for improving cadastral management ............22 IV. Issues, Options, and Alternatives for Mineral Rights Management ..............................24 A. Institutional Frameworks and Their Organizational Aspects ...............................25 B. Decentralization .............................................................................................................27 iii MINERAL RIGHTS CADASTRES C. Alternative Approaches for Granting Mineral Rights ............................................30 1. Key concept—Differentiation between “property rights” and “activity authorizations” ..............................................................................................................30 2. Practical implications of differentiating between “property rights” and “activity authorization” ...............................................................................................31 3. First-come, first-served versus auctioning ..........................................................32 D. Measures for Controlling Speculative Practices .....................................................35 1. Escalating fees ............................................................................................................36 2. Mandatory relinquishment requirements ...........................................................38 3. Minimum investment requirements and minimum work obligations ...........39 4. Other types of measures to restrict speculation ..............................................40 E. Small-scale and Artisanal Mining and Cadastre Management ...............................41 F. The Influence of Tradition and Sector Experience on Cadastral Activity ...........43 1. Human resources .....................................................................................................43 2. Management quality .................................................................................................44 3. Economic sustainability and financial management ...........................................44 4. The role of tradition and development in the applicability of cadastral rules ...............................................................................................................46 G. Looking Ahead ...............................................................................................................47 V. Case Studies ............................................................................................................................48 A. Algeria ..............................................................................................................................49 B. Argentina ..........................................................................................................................51 C. Democratic Republic of Congo .................................................................................53 D. Ghana ...............................................................................................................................56 E. Madagascar.......................................................................................................................58 F. Mauritania .........................................................................................................................61 G. Mongolia ..........................................................................................................................63 H. Zambia .............................................................................................................................65 ANNEX I. Historical Note on the Origin and Evolution of the Mining Cadastre ............68 ANNEX II. Internal Organization of an MRC ...........................................................................71 ANNEX III. Geometry of Mineral Rights ...................................................................................73 ANNEX IV. Computerized Cadastre Systems (CCSs) ...........................................................76 A. Information Technology Requirements for Mineral Rights Management ..........76 ANNEX V. Comparative Table of International Criteria for Mineral Rights Management ........................................................................................................................82 EXTRACTIVE INDUSTRIES FOR DEVELOPMENT SERIES iv Acknowledgements This paper was written
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