The Access Initiative

Mandatory disclosure can make natural resources work for the people

Will African communities ever become the beneficiaries and owners of their mineral resources, asks Tholakele Nene

The question set the tone of the 2018 Alternative Mining Indaba, held in Cape Town in February, under the theme “Making Natural Resources Work for the People: Towards Just Legal, Policy and Institutional Reforms”.

The more I listened to regional stories from activists in our neighbouring countries talking about how decades of mining policy development still leaves Africa’s people sidelined when it comes to benefit sharing and access to information, the more I realised the importance of fighting for mandatory disclosure.

Dr Ayoa Graham, executive director of the Third World Network in Ghana, spoke about how extractive laws in Africa are “defective” when it comes to implementation, monitoring and evaluation. There is an absence of cost-benefit analysis, he said, and no research about what minerals we have, what they are worth and how Africa can benefit from its own resources.

Graham emphasised the importance for communities of understanding how the revenue generated from the mining of minerals is used, and where it is being used.

“In the absence of cost-benefit analysis, communities are left to deal with mining companies for compensation. We should be moving to a regime where the state should take responsibility for the compensation of people and treat them as part-owners of the resources”, he said.

Lack of transparency

In the South African context #MineAlert has documented complaints from mining-affected communities that the implementation, monitoring and evaluation of various mining laws by the Department of Mineral Resources is near absent.

We have interviewed communities in coal-rich Mpumalanga to find out whether Social and Labour Plans (SLP) have facilitated benefit sharing and found there are still community members who had no idea of what an SLP is, let alone where to get a copy that they can use to hold a mine to book on promises made and not delivered during public consultation processes.

The argument is that, if mining companies are not voluntarily sharing crucial documents such as financial reports and SLPs with the general public, they not only take away the public’s right to access information that could assist communities make informed decisions and benefit from profits made from Africa’s minerals, they also reduce the chances of being held to account by limiting transparency. This makes it easier for mining companies to dig up the minerals and take the lion’s share of the profit, leaving the breadcrumbs for communities to wrangle over.

Mandatory disclosure

“In South Africa the current transparency regime regulating the private sector, including the extractives industry, is focused largely on enhancing information disclosure to shareholders or investors, rather than more broadly to all stakeholders which will include the public and local communities,” found a research report on the legislative and regulatory regime, published by the Open Society Foundation-South Africa (OSF-SA).

The research investigated the limitations and prospects of various institutions that oversee the extractives industry, including their powers to enforce compliance. It also analysed 30 laws, including the Promotion of Access to Information Act and the Mineral (PAIA) and Petroleum Resources Development Act (MPRDA), which are often seen as the cornerstone of transparency and justice in the extractives industry.

“There were very limited disclosure rules relating to ownership, operational and financial information,” the report concludes.

The MPRDA, for instance, provides that the holder of a mining right or mining permit must, at the registered office or place of business of such holder, keep proper records of mining activities and proper financial records in connection with these activities. Furthermore, the holder needs to submit records such as progress reports to the regional manager.

Section 30 of the Act says that this information may be shared with any persons as part of exercising the right to information. However, the Act prohibits disclosure where the information has been supplied in confidence.

The difficulty of accessing crucial information on extractives was highlighted by Publish What You Pay South Africa in a case study on Sedibeng Iron Ore. The organisation is working on a mandatory disclosure campaign that would see stronger legislation promoting public disclosure of mining documents such as financial reports.

International best practice

In 2017 Canada implemented an Extractives Sector Transparency Measures Act that requires all Canadian registered and listed extractives companies to disclose payments to governments in Canada and abroad. This has led to hundreds of companies publicly disclosing reports detailing payments to government by Canadian extractives companies.

Is it not time to look at similar legislation in South Africa?

Tholakele Nene is an Associate of Oxpeckers Investigative Environmental Journalism and manager of the #MineAlert app, which allows users to track and share mining applications and licences across South Africa

Protecting Forests with an Unexpected Legal Tool: Freedom of Information Laws

This blog, written by Jessica Webb, Carole Excell and Rachael Petersen,  originally appeared on Insights, World Resources Institute’s blog

Every year the world loses 13 million hectares (32 million acres) of forests, an area about the size of Greece. A critical way to stem this forest loss is to make concessions data about commercial activities that drive over 60 percent of global deforestation more transparent. Without data transparency, it is virtually impossible to tell how well companies are complying with concessions agreements, distinguish between legal and illegal deforestation, and bring those responsible for illegal deforestation to account.

Unfortunately, getting this kind of information in many countries is not easy, as a new study from WRI shows: countries with over half the world’s forests lack comprehensive, accessible information on concessions. Concessions for commercial activities, such as mining, logging and agriculture, are typically allocated to private companies by authorized government entities on lands legally owned or held in trust by the state. This information is critical to enforcing agreements that protect forests.

A recent example is Indonesia, which has some of the world’s richest rainforests and some of its highest deforestation rates. But figuring out the details of Indonesian forest exploitation can be as challenging as it is essential, as a recent Supreme Court decision indicates. In response to a civil society group’s information request, the high court determined that the Ministry of Land and Spatial Planning must hand over detailed maps of the land on which oil palm companies have been licensed to operate. This ruling is a huge step toward greater transparency in the management of Indonesia’s expansive natural resources. It gives journalists, civil society groups and the public the information they need to hold the government and the private sector accountable for deforestation.

Laws that protect citizens’ rights to access information and promote transparency may be a key to protecting and sustainably managing the world’s forests. The WRI study, Logging, Mining and Agricultural Data Transparency: A Survey of 14 Forested Countries, finds that not only are Freedom of Information (FOI) laws effective in getting access to forest information, but countries with FOI laws tend to disclose concession data more proactively than countries without them.

3 Ways to Provide Concessions Data

The study surveyed concessions information for mining, logging and agriculture, noting the different ways this information was made available: proactively, such as through an online data portal; reactively, through an FOI request, or through ad hoc or informal means. Proactively available data is most desirable, as this means it is publicly accessible without the need for requests. Information requests can be an important mechanism to get concessions data if there is no proactive disclosure, and are preferable to no access at all.

Of the 14 heavily forested countries surveyed, eight have FOI laws: Brazil, Canada, Colombia, Indonesia, Liberia, Mexico, Russia and Peru. Researchers tested how these laws were implemented by submitting FOI requests for concessions data, including contracts, maps, lists of permits, ownership information and spatial data. These requests were at least partially successful in all countries where FOI laws were tested.

Researchers were most successful gaining full access to mining data. Four countries provided partial access to both logging and mining data. Agricultural concessions were the most difficult to access in all surveyed countries, where only two of six requests were partially granted (in Indonesia and Liberia). While cost can sometimes be a barrier to accessing official government documents, most information requests in this study did not charge a fee. 

In addition to the relative effectiveness of information requests, the study found that governments in countries with FOI laws release concessions data more proactively than do countries without such laws. For example, the governments of Brazil, Canada and Peru proactively provide data for all sectors for which they grant concessions and have an FOI law, and Mexico, Colombia, and Indonesia, provide proactive data for at least some concessions data. On the other hand, Madagascar, Myanmar, Cambodia and Malaysia lack FOI laws and provide no data proactively.

Though FOI requests can be an important way to get information, larger issues remain. There is still a lack of comprehensive information about where land investments are being made for logging, mining and agriculture in all countries. The study highlights the need for:

  • Adoption of comprehensive FOI laws in countries that lack them now;
  • Civil society to increase use of FOI laws to obtain documents as part of the strategy to monitor and protect forests;
  • Governments to facilitate greater proactive access to concession data by increasing coordination across ministries and between federal and local governments;
  • Donors to invest in building capacity for governments to collate, digitize and share concessions information proactively through online portals and information requests;
  • Voluntary partnership agreements and relevant transparency initiatives should encourage the disclosure of spatial concessions data and ensure standardization across countries.

Even though the Supreme Court decision in Indonesia is a promising move, there is more work to do. It’s time for countries with concessions on forested lands to expand access to concession data and make it priority for immediate action to support enhanced forest monitoring and land use planning, to reduce conflict and to send a message of transparency and accountability to international investors, donors and advocacy groups.

 

Strengthening the Right to Information for People and the Environment

STRIPE is an important resource in countries all over the world which do not have mandatory environmental disclosure regimes that require companies to disclose the types of pollutants that are being released into air, water, and land. Currently STRIPE is being utilized in Indonesia to help local Serang communities address the water pollution from the IKPP Pulp and Paper mill in the Ciujung River. It is also being utilized in Mongolia where partners are working with two communities concerned about water pollution in the Tuul River caused by mining and poor waste water treatment. STRIPE uses the following steps to achieve its goals:

  • Assess the challenges facing local communities concerned about air and/or water pollution released from local facilities
  • Evaluate the legal framework of the country including the laws governing the pollution control, the public release of environmental information, as well as basic freedom of information laws
  • Analyze the information that is available proactively – information that should be publically available without being formally requested
  • File information requests with government agencies to obtain any further information needed on pollution emissions and permitting abd track the results
  • Utilize the information gained from the above processes to develop advocacy messages and strategies that address community concerns.

Freedom of Information Victory in India

By Lalanath de Silva (Posted: January 28, 2008)

For the first time in its ten-year history, the National Environmental Appellate Authority* (NEAA) has overturned a decision by the Government of India, quashing an environmental clearance granted by the Ministry of Environment and Forests. In its decision, the Appellate Authority cited a failure of public participation and access to information.

On December 19, 2007, the NEAA quashed environmental clearance for the Polavaram Multipurpose project granted by the Ministry of Environment and Forests. The project, which would have displaced close to 3000 families (totaling about 200,000 people) in the States of Andhra Pradesh, Orissa and Chattisgarh, was to have included a hydroelectric power component of 960 MW and irrigation facilities. The project was proposed by the State of Andrah Pradesh.

The project was opposed by civil society organizations on the grounds that the required Environmental Impact Assessment had been performed inadequately, and the Ministry of Environment and Forests had failed to conduct any public hearings in the affected States of Orissa and Chattisgarh.

During the hearing, both States contended that the legally required environmental clearance was granted by the Ministry of Environment without considering the opinion of the states though they were affected by submergence.

Immediately after the Appellate Authority’s decision, the State Government (Andrah Pradesh) filed a petition for the Andra Pradesh High Court (the highest court in the State) to review the case. The Court has now temporarily suspended the decision of the Appellate Authority and fixed a hearing for February 11.

The NEAA found that:

  • People to be affected by the project had no access to the executive summary in the notified place
  • People to be affected by the project had no opportunity to participate in public hearings and express their view on the likely environmental impact of the construction of the project

The Appeal against the clearance was filed by Dr R. Sreedhar of Academy for Mountain Environics and represented by Ritwick Dutta. Dutta is a leader of the TAI network in India, and is preparing to launch a formal, TAI assessment of access to justice, public participation, and access to information in Northern India.

*The National Environmental Appellate Authority is the only competent Authority set up by Parliament through an Act to hear appeals from aggrieved/ affected persons against the grant of environmental clearances by the Ministry of Environment and Forests to different projects across the country.

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