Seventh Meeting of the PD-NR - 30 November-1 December 2016

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Seventh Meeting of the PD-NR, 30 November-1 December 2016

Agenda | List of Participants | Summary Report

Key Outcomes

Under the co-chairmanship of Liberia, Norway, Kazakhstan, Germany and Guinea, 22 government delegations from Africa, Asia, Europe, and Latin America, as well as representatives from 10 partner international organisations and institutions, and 31 major firms, industry associations, civil society organisations, academia, law firms and think tanks convened at the OECD on 30 November – 1 December 2016 for the Seventh Plenary Meeting of the Policy Dialogue on Natural Resource Development. International organisations in attendance included representatives from the African Minerals Development Centre, the African Development Bank’s Legal Support Facility and Natural Resources Centre, the Commonwealth Secretariat, the European Union Commission, the UN Conference on Trade and Development (UNCTAD), the UN Educational, Scientific and Cultural Organisation (UNESCO), and the World Bank. High-level participants joined the G7 CONNEX Negotiation Support Forum on 30 November, namely H.E. Mr Abdoulaye Magassouba, Minister of Mines and Geology, Republic of Guinea; H.E. Mr. Mosebenzi Joseph Zwane, Minister of Mineral Resources of the Republic of South Africa; Mr Günter Nooke Personal Representative of the German Chancellor for Africa, Federal Ministry for Economic Cooperation and Development (BMZ); and Mr. Ryotaro Suzuki, Minister and Deputy Permanent Representative of Japan to the OECD. The Chair of the Governing Board of the OECD Development Centre, H.E. Ambassador Pierre Duquesne welcomed participants to the Plenary.

Work Stream 1 – Shared Value Creation and Local Development

Further to the publication of the guidance document on Collaborative Strategies for In-Country Shared Value Creation: Framework for Extractive Projets, participants welcomed the launch of a companion tool, the on-line Compendium of Practices. Three examples were validated for inclusion on how to create employment opportunities in a remote mining area, improve access to capital for SMEs, and manage competing use of water in a way that balances the interests of business and local communities. Although the examples dealt with widely different situations and are context specific, they are all rooted in shared common ground, the existence of a business case, and the pursuit of win-win solutions for governments, industry and local communities.

Work Stream 2 – Revenue Spending and Natural Resource Funds

Participants considered the key characteristics, trade-offs and opportunities of Strategic Investment Funds, as a form of special purpose investment vehicles to achieve productive development outcomes. The experiences from Kazakhstan’s Samruk-Kazyna, the Fonds Souverain d'Investissements Stratégiques of Senegal and the Ireland Strategic Investment Fund show how strategic investment funds can help natural resource rich countries manage long-term financing challenges and shrinking fiscal space, while balancing policy and commercial objectives. This can be done by leveraging private capital to kick start productive growth and development, through reinforcing, renewing and reorganising state assets, crowding-in investments, catalysing new economic opportunities and supporting local financial market development.

Work Stream 3 – Getting Better Deals

Participants recognised that the G7 CONNEX Negotiation Support Forum is making a remarkable contribution to foster understanding of different positions, identify limitations, and to work towards shared solutions. Participants welcomed the Guidance for Governments to Assemble Multidisciplinary Teams and the Terms of Reference Template for Recruiting External Advisers for Extractives Contract Negotiations as useful tools to ensure governments’ ownership and to strengthen capacity to engage in effective negotiations alongside the transfer of knowledge. Participants recommended some adjustments to improve the uptake and utility of the Guidance and the Terms of Reference amongst developing countries. Participants emphasised the need to build partnerships based on trust that underpin mutually beneficial contractual arrangements, whilst balancing governments and industry interests. Participants embarked for the first time on a dialogue on key attributes for longstanding contracts and discussed contractual mechanisms to deal with change. It was agreed to pursue this dialogue, with the objective of working towards symmetric, non-discriminatory and adaptive mechanisms that work for both governments and industry and that can help to build mutual trust during contract negotiations. Participants shared approaches that can move things in this direction, such as greater transparency in the exchange of information regarding financial expectations, responsive fiscal regimes, and a value proposition that reflect twin goals – a return on investment, and overall development benefits for the host country.

Work Stream 4 – Domestic Resource Mobilisation (tackling BEPS and corruption)

Reflecting the global commitment to counter practices resulting in the erosion of the domestic tax base, participants welcome the collaboration between the OECD and the Inter-Governmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) to tackle in 2017-2018 twelve priority issues related to BEPS in mining, with the objective of building a common knowledge base, improving understanding across governments and industry, and providing responses. Participants further agreed to work collaboratively to test the methodology for the determination of product mineral pricing in selected countries.

Presentations

DAY 1 - CONNEX Multi-stakeholder Negotiation Support Forum

Welcoming remarks by:

H.E. Mr. Pierre Duquesne, Ambassador and Permanent Representative of the Republic of France to the OECD, and Chair of the Governing Board of the Development Centre (in french)

Mr. Ryotaro Suzuki, Minister, Deputy Permanent Representative, Permanent Delegation of Japan to the OECD

Mr. Günter Nooke, Personal Representative of the German Chancellor for Africa, Federal Ministry for Economic Cooperation and Development (BMZ)

H.E. Mr. Abdoulaye Magassouba, Minister of Mines and Geology, Republic of Guinea

Keynote address by:

H.E. Mr. Mosebenzi Joseph Zwane, Minister of Mineral Resources of the Republic of South Africa

Session 3 - Key attributes of long standing contracts

ExxonMobil Key attributes on long standing contracts by Mr. Darryl Egbert, Senior Global Fiscal Regimes Consultant, ExxonMobil

Liberia Long standing contracts and Key attributes on long standing contracts by Hon. Sam Russ, Deputy Minister of Operations, Ministry of Lands, Mines and Energy of Liberia

Lunch session presentation

Negotiation Support Portal Presentation by Mr. Sam Szoke Burke, Legal Researcher, Columbia Centre on Sustainable Investment

Closing remarks by:

Mr. Marcello Saralli, Director, Directorate General for Safety Mining National Office for Hydrocarbons and Geo resources, Ministry of Economic Development, Republic of Italy

Mr. Günter Nooke, Personal Representative of the German Chancellor for Africa, Federal Ministry for Economic Cooperation and Development (BMZ)

DAY 2 - Multi-Stakeholder Plenary Meeting

Session 5 - Compendium of Practices on the Framework on Collaborative Strategies for In-Country Shared Value Creation

Vale Case study on aboriginal workforce development by Mr. Peter Langlois, Director of Labrador Operations, Vale

Session 6 - Mobilising Domestic Resources for Development

Session 6A - Mobilising Resource Revenues from the Mining Sector: Tackling Leakages and Building on the OECD/G20 Actions on Base Erosion and Profit Shifting

Session 6B - Mineral product pricing: rough diamonds and thermal coal

Inclusive societies and development by Mr. Dan Devlin, Senior Economist, Natural Resource taxation, OECD Centre for Tax and Development Programme and Mr. Howard Mann, Senior Advisor, Intergovernmental Forum on Mining Secretariat and Senior International Law Advisor, International Institute for Sustainable Development

Session 6C - Revenue Spending and Natural Resource Funds: Thematic Focus on Strategic Investment Funds

Defining and Scope and Functions of SIFs/SDFs by Mr. Adam Dixon, Reader in Economic Geography, Bristol University

Inclusive societies and development by Mr. Mamadou Mbaye, Executive Director in charge of Energy and Mining, Fonds Souverain d'Investissements Stratégiques

Kazakhstan Thematic Focus on Strategic Investment Fund by Mr. Dastan Umirbayev, Director of Macroeconomic Analysis and Forecasting Department, Ministry of National Economy, Republic of Kazakhstan