Project Title

Identify Good Practices in Policies/Models for SME Mining Development 

Project Year

2017   

Project Number

MTF 02 2017A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

MTF 02 2017A 

Project Title

Identify Good Practices in Policies/Models for SME Mining Development 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Mining 

Project Year

2017 

Project Session

Session 2 

APEC Funding

35,000 

Co-funding Amount

80,000 

Total Project Value

115,000 

Sponsoring Forum

Mining Task Force (MTF) 

Topics

Mining 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Chile 

Co-Sponsoring Economies

Mexico; Papua New Guinea 

Expected Start Date

01/01/2018 

Expected Completion Date

31/12/2018 

Project Proponent Name 1

Constanza Kutscher 

Job Title 1

Strategies and Public Policies Analyst 

Organization 1

Chilean Copper Commission 

Postal Address 1

Agustinas 1161, 4th Floor, Santiago, Chile 

Telephone 1

56-2 23828203 

Fax 1

Not Applicable 

Email 1

ckutsche@cochilco.cl 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Constanza Kutscher 

Project Summary

The project aims to gather different tools, such as policies, models and/or plans to develop small and medium size mining sector. APEC economies are the ones that will contribute to this project, by sharing their own tools, including, not only the ones for the mining sector, but also other sector’s tools that could be replicate to the mining sector. What the project looks for is finding tools to help with access to financing, manage difficulties associated to scale economics, prevention of environmental degradation, management of social issues, and enhance of woman participation, among others that could help with development of small and medium scale mining. These sectors, unlike large scale mining sector, face disadvantages because of their size and sensitivity to the price metals downturn. Developing economies that have mining activity are the ones that most need to create new policies, plans and/or models to increase welfare of miners and people in general, since they tend to be more vulnerable. The results of the project will be presented and printed for the knowledge of the APEC economies.

Relevance

Small and medium mining companies face certain disadvantages compared to large size ones. These disadvantages limit their potential development, cause environmental and social problems, and causes these sectors to be more vulnerable in general, and specifically during low metal prices cycles. Some of these disadvantages are: (1) the unfavorable scale economics in the extractive process, (2) high initial investment, (3) low access to financing, (4) more likely to cause environmental and social damage, (5) poor woman participation and (6) lack of Access to latest technologies, among others.

These difficulties have been maintained through time for several reasons, such as, lack of knowledge of the mining business by the financial system, lack of willingness from banks to give financial credits for considering the mining activity risky, little interest of the mining entrepreneurs to be associated or to open to the stock market, difficulties to develop environmental protection programs, difficulties for women to enter the business, and easy to fall into the black market. These are the kind of issues this projects seeks to address, by achieving its goal of identifying good practices in policies/models/programs (tools) for mining development among APEC Economies.

The named disadvantages, mainly for the small size mining, have justified the implementation of diverse tools for development, with different focuses, in many economies. In some of them, these instruments for development have focused on mining producers, while others focused in mining supply companies, and mineral-based product markets, while other focuses on the people that works in mining as well as the people living nearby.

The benefit of having this information identified and presented will benefit every APEC economy that has small and medium size mining companies, because they will be able to know the successful policies that have been applied in other APEC economies.

Besides, with the current technologies, it is more difficult to find new world class mines and it is more likely to discover new medium size mines. Thus, create successful policies for medium size mines companies to improve the productivity, the use of new technologies and the relationship with the community is desirable.

On the other hand, small and medium size mining companies don’t have enough resources and funds to face environmental protection requirement properly, therefore it is a challenge for governments to find the correct policies for support this mining sector in this aspect.

Also, understand how they work, what are the requirements to implement them, and the main results, in order to assess the implementation of those that might be useful to their own reality. The project will especially look for initiatives to enhance the participation of woman in SME mining sector and initiatives on environmental and community protection, and will require the active participation of MTF members as well as of the private sector through APEC Business Advisory Council (ABAC).

Objectives

The three key objectives of the project are:

1)  To revise the models/ public policies/ programs for small and medium size mining companies sustainable development, including anti-environmental-degradation plans, programs to enhance woman participation, and programs to avoid social harms such as black market, as long as other policies on small and medium enterprises that could be applied to the mining industry. These tools will be taken from APEC economies that belong to the MTF group. Therefore, we need to get support from MTF group members on how the gathered tools actually work. Once the different tools are gathered, these will be reviewed in conjunction with MTF group participant, so they can include information that is missed, and also give a global vision on how these different tools actually work. This step is crucial for a successful project, because there could be differences between how these tools work in theory and practice. This action will help increase knowledge in those tools in order to understand their specific characteristics, how they work and how they should be implemented, along with the main results of its implementation;

2) To develop a document or report with all the revised tools, that will include a full description of it, an explanation of how it works, main results of its implementation, the economy where it was implemented, and any other special consideration, so it can be replicated with as few difficulties as possible. This action will build capacity, among APEC economies, in policy making to benefit the SME mining sector. We expect that this report will help development the small and medium mining sector of the APEC MTF economies. Although the project will finish and the results will be published in December 2018, these results will be presented in MTF 13, in 2019, in Chile; and

3)  To improve small and medium mining sector through the dissemination of tools, such as policies, plans and programs, that have been implemented by APEC economies and could be replicated by other economies.

Alignment

To Foster and strengthening SMEs, while ensuring environmental and social protection, and an enhancement of woman participation, have been a priority for several APEC years, specially highlighted during 2015 (The Philippines), 2016 (Peru) and 2017 (Viet Nam).

This priority became also in a concrete request by the Leaders in the 2016 Declaration when they “encourage officials to carry out additional work on this topic next year”. Therefore, it is well known by all the actors involved the relevance and benefit that the SMEs produce to local communities, especially if their activities are implemented in a sustainable way. Understanding how the different Economy Members support the mining SME and non-mining SME could allow them to adopt and/or adapt different tools or methodologies through this exchange of experiences and public policies/ programs/ models.

Mining is a long term activity, therefore the positives and negatives impacts are accumulative. Most of the MTF mining Economy Members have mining SMEs and have taken different measures in their history to face the challenges that they have in the three dimensions: economic, environmental and social. Some of those measures have been successful some were not, nevertheless the relevance is to get to know the learning from the experience. Considering that the success or failure might not be replicated in another Economy. The MTF Strategic Plan 2016-2018, considers relevant this methodology of exchanging experiences in public policies and regulations. Also, the MTF Work Plan 2017, considers among the priorities the developing and strengthening of the SMEs dynamism.

TILF/ASF Justification

Mining activity is very important for APEC economies. In 2012 Latin America provided 45% of the global copper, 50% of silver, 26% of molybdenum, and 20% of gold. According to the World Bank Group, the total natural resources rents (% of GDP) are, for China 1.28%, Vietnam 2.56%, Indonesia 2.32%, Philippines 1.64%, Malaysia 4.84%. Russia 10.31%, México 2.27%, Peru 6.29% and Chile 12.19%. On the other hand, developing economies tend to have more problems (economic, social and environmental) related to mining projects than developed economies (ejatlas.org). Mining projects can be high impact activities that overlap with environmental and social sensitive areas, like biodiversity hotspots, forests, water resources and indigenous lands. 

The World Bank and the International Finance Corporation, in their work “Treasure or trouble? Mining in developing economies” establish that mining can be a source of wealth and economic growth but only if the right institutions and policies exist. On the other hand, without a proper organization, mining can lead to environmental and social degradation, which can cause negative impacts in the local economy. They also say that mining create or support the “ability of economies to produce and commercialize knowledge over the long term” (World Bank and International Finance Corporation, 2002). This point is exactly what this project searches: That the APEC economies share their knowledge to support a more sustainable mining activity within the medium and small mining sector. Given that this project can benefit all APEC economies, especially the developing ones, is why we believe they are going to be willing to participate and share their policies, models and any other tools to develop this sector, and promote environmental and social protection. Because developing economies are the ones that face more problem regarding mining activities (social, environmental and economics), we strongly believe that this project will benefit them the most. Especially because having the right policies can help to cope with times of low commodity prices, when implementing environmental and social protections actions is, normally, “too expensive”.

Beneficiaries and Outputs

Outputs: The project will generate a draft compendium that gathers all the analyzed tools. Every tool will have a full description of it, scenario where it is implemented, the hosted economy, possible difficulties and improvements, and a full description of how it really works (theory vs. practice). The different tools will be organized in categories: Economic development, environmental protection, social development, and increase of woman participation, among others that can be found during the project’s development. The draft compendium will be distributed among MTF members for comments to generate the final report with all the comments included. The structure of the compendium will be the following:

1) Introduction: This chapter will focus in the needs and responses of the developing economies: We will named the problems these economies face, what are the issues they need to resolve, differences that different developing economies have in their needs (due to different culture o climate, for example).

2) Objectives and methodology: The objectives are the described above (item 2). The methodology will be as follows:

-  Review of policies, models, programs and others of all MTF members economies

-  Classification of the policies in the following categories (Every one of these points will have an explanation of what kind of tool would fall under it):

1) Economic development,

2) Environmental protection,

3) Social protection and development,

4) Training programs, and

5) Woman participation.

-  A list of the APEC economies that have tools under every one of the categories at the beginning of the sub-chapter.

-  Every tool in every sub-chapter, will include: A full description of the tool, timeframe, main conclusion of its trajectory, any other important aspect to be considered.

-  Ask for the participation of MTF members to talk about every tool to get information on how it really works, and also to check if there is any other tool that we are not considering.

-  Include the additional information.

3)  Sub-chapters with the 5 different classifications of the tools.

-  Description of every tool in every sub-chapter as explained in the methodology

4) Analysis and conclusions, with recommendations and warnings on the different tools, as a result of the research work and the revisions of the APEC members. 

Seminar: There will be a diffusion seminar to be presented in MTF13 in Chile, in year 2019, even though the project ends in December 2018. In this seminar we will present the results of the project, this is: we will present every program that we could gather and well define, along with their real application and all relevant information regarding its implementation. Whenever is possible, one MTF member will give their comments on their economy’s program(s). In the case of Chile, there will be Chilean guest speakers (self-funded) that will present Chile’s tools, such as representatives of the state owned company ENAMI, presenting ENAMI’s model on small and medium mining development. There will be other Chilean guest speakers to be defined.

The report will have details of all the tools that were gathered, so the user will have it whenever he or she wants to read it, while the seminar will be an instance to present these tools. The participants of the seminar (MTF members, among others) will be familiar to the report, especially since a draft compendium will be delivered before the project ends for comments of MTF members, and the last report will be delivered (electronic copy) in December 2018, before the MTF 13.

The objective of the seminar is to inform and diffuse the information of the report as a post-project activity. The seminar does not focus on how to disseminate the information, but instead, on what to disseminate, this is, the collected tools. All active participants of the MTF group are expected to attend the seminar. We will strongly encourage them to read the report prior the seminar, so they will be prepared to make their contributions to a better explanations of the tools.

The seminar will be a half-day activity with talks of 45 minutes plus 15 minutes of questions and answers. There will be approximately 3 to 4 speakers. At least one of them will be a women and will talk about policies to enhance women participation. 

Outcomes: The main outcome of this project will be the gained knowledge on policies, models and programs for development of the small and medium mining sector, which will help improve the situation of APEC economies regarding this sector. Specifically, the project will have the following outcomes:

-   The participants of the project will be able to present their own tools for everyone’s knowledge by collaborating with the project overseer in giving information about their tools.

-  The report can be used as a basis for policy recommendations, since it describes policies, models or programs that give solutions for certain economies problems. A different economy could have a similar problem and they could take the described tool as a start point to begin creating a solution for that specific problem. Even though local problems, while similar to other economies’ ones, can be very different, having an innovative solution to them, can help create an adequate solution for them.

-  Participants of the projects, as well as participants of the diffusion seminar, will be able to implement policy changes according to what they learned by reading the report and assisting the diffusion seminar. This policy changes can bring improvements in the small and medium mining sector, as well as the environment and society around that industry. 

Beneficiaries: Direct beneficiaries are the diffusion seminar participants as well as other representatives of APEC economies (along with policy makers from those economies) that read and use the report. This group will also be constituted by MTF members, ABAC representatives, and other members from mining public institution that want to participate from this activity (like Chileans ENAMI and SONAMI). We will also invite representatives from the APEC SME Working group. Among these direct participants there will be the participants in the information gathering to develop the report. The participants could also be the ones who participate in the seminar giving their experiences and helping answering questions in the seminar. They will get comments from the rest of the participant, iving them the opportunity to improve their own programs, models or policies.

We will reach the participants through an invitation via email, letting them know about the project, and the diffusion seminar, and inviting them to participate in all project stages. We plan to ask the active members of MTF group the name of their local institutions so we can contact them.

Indirect or long-term beneficiaries are, in first place, the small and medium miners because the project will search for policies, programs and models for their development, hence, they will be able to increase their welfare. In second place, society that lives near to mining activities will also increase their wellness, because there can be some policies to manage social and environmental issues, and for environmental protection.

The participation of women in Chilean mining reaches only 7.5%. Because of this low number big mining companies are creating initiatives to increase woman participation in mining. They have higher budget to do this, unlike small and mediium mining sector that need public policies to improve these indicators.

When implementing certain policies on increasing women participation in small and medium mining industry, women will benefit of this in the long term because of two reasons: First, they will have more Access to Jobs in the mining industry and will be able to earn more money to support their families. Second, in the long term, it could be that, women in mining, will be seen as normal, and they will not face so many discrimination problems.

Dissemination

The dissemination will be through an electronic report and also through a post-project dissemination seminar (after the project ends). We intend that the report reach all MTF members as well as other APEC economies that could be interested in the results, as well as members from the SME working group. Since this report will have tools to develop small and medium mining sector, wich is also part of the SME, this group should be aware of the results of the project. The seminar will be focused in presenting the collected information and not on how every economy should disseminate these information among their policy makers. We expect that every active member of the MTF attend the seminar. Since we will be working with some of the members (some already exhibited interest in collaborating, such as Mexico, Peru, USA, Canada and PNG), we expect a good attendance rate. The interest that has been shown by MTF members has been in sharing their programs. Some of them already talked about some of their policies that would apply to be in the report. They will not participate through funding, but through giving valuable information.

We do not intend to sell the outputs, instead we will share them with all the participants since they gave valuable information contained in the report.

Despite the report will be published in APEC’s webpage complying with APEC publications and Logo Guidelines and IP Policy, Chile will also publish the results in Cochilco’s webpage. We strongly encourage the involved APEC economies publish the report in their institutional webpages as well, so the results can be better disseminated. 

For the dissemination seminar, Chile will invite (self-funded) representatives of Chilean institutions that work for small and medium mining development to explain their models, and be an instance for questions and answers.

Chile will strongly encourage other MTF members to speak in the dissemination seminar to share their own programs, and also to actively participate to help answer potential questions.

Gender

The project will collect tools such as policies, programs and models to help development of small and medium mining sector. There are five types of tools to be collected: economic development, environmental protection, social protection and development, training programs and enhancement of woman participation. The last, but not least, category aims to find programs, models or policies that give women facilities to enter in the small and medium mining sector to work. These tools can include programs for women fair treatment, facilities to enter and stay in the staff, training programs for women to learn about mining processes, benefits for industries that hire certain percentage of women, among others.

For example, in Chile, since women have no significant experience in small mining, they have a huge barrier of entry. There are cases in the small gold mining industry were women have not succeed because of the lack of knowledge and experience. A good tool, in this case, would be training plans for women, where not only the technical aspects are taught, but also the legal ones.

Women participation in mining industry is important for two main reasons: first, they are many advantages of having women on industry because women bring different points of view to the business, which can improve the industry’s perspective and performance, and also for equality reasons, and second, because women would have another source of income to provide for their families and themselves.

While some economies have higher rates of women participation in mining, like Australia and Canada, with 16.4 and 19.4% respectively, there are other economies with lower rate, like Chile and Peru, with 7.2 and 6.4% respectively. This project will allow APEC economies to know the strategies and tools some economies have to facilitate and enhance women participation in the industry, specifically in the small and medium mining sector.

Work Plan

Based on the project objectives, there will be four main activities. The data and outputs would be:

1)  Selecting and hiring a proper contractor that will be working with the Project Overseer.

2)  Information gathering about plans, programs, and/or policies to develop the SME mining sector

a) First stage information gathering. This is, a research about the available information about plans, programs and policies to develop the SME sector, to protect the environment and society, to promote social development and training, and to enhance and promote participation of women in that sector in particular.

b) Development of a guide with all the topics to be included in a program/ policy/ plan description: These topics are, among others, category of the tool, economy that owns the tool, name, year of creation, general description of the tool, associated difficulties, associated laws that make the tool possible, any other special consideration, and real results of its implementation (how it works in practice).

c) This will also consider both producers and other actors in the mining value chain, giving special attention to programs that promote women integration. Detail the structure, methodology and process of the financing system of the mining sector, used by the successful policy/model defined above.

d) Ask MTF members and private industry for collaboration in gathering information that might be missing or was not found in the first stage information gathering. MTF members will have to review the documents and make their observations on it.

e) Second version of the documents, including the MTF member’s reviews and observations.

3) Systematize, organize, describe and conceptualize successful programs, policies or models to promote sustainable small and medium size mining worldwide, in a single document.

a) The document will be organized in five main sections, which are tools for economic development, social development and protection, environmental protection, training programs, and enhancement of women participation.

b) The document will also include the methodology and objectives of the project, along with main conclusions.

4)  Elaborate and distribute the report describe above, and disseminate the final version on December 2018, when the project ends. Besides, there will be a dissemination seminar, in the MTF meeting of 2019 in Chile.

a) The report will be distributed electronically, and its diffusion will be strongly encouraged.

b) The diffusion seminar will have guest speakers from Chile and other economies that want to participate, and MTF members will be welcomed to talk about some programs that they consider especially relevant.

The work plan is summarized as follows:

Time

Task

Deliverable

Dec 17- Jan 18

Choose the contractor and contract signing

A signed contract

Jan-March 18

Information gathering

A draft report with findings

April-June 18

Work with MTF members

Send the draft report to MTF members for their observations and comments

July-Sept 18

Organize information and second draft

Include comments of MTF members and make research about the new policies they could name

Oct 18

Second review

Deliver the second draft to the MTF members that have participate for their approval and comments

Nov 18

Final report

Generation of the final version of the report to be delivered to APEC

Risks

The risks that could impact the project implementation are:

1)  Lack of available information of programs, plans and policies, or lack of available information in English or Spanish. Both the contractor and project overseer will be searching for information available online. If an economy has any of these tools but no information is available online, the research will be harder and the information harder to obtain.

2)  Low interest or low participation from MTF members to participate in the project. MTF member’s participation is crucial for the project success, because they know how the different tools work on their economies. Besides, if no complete information about the tools is available online, cooperation of MTF members on completing that information is needed for the project’s success. 

To manage the first risk, we will specially look for a contractor that is aware of the different tools that exist among APEC economies, so she or he will be able to do a more efficient research. Since the Project Overseer will be also doing research for this project, and she will be able to cover the information that is in Spanish, a contractor will different background will be highly appreciated.

To manage the second risk, we will be working from a very early stage with MTF members to give them time to participate from the project, and we will also try to gather as much information as possible, and synthesize it, to reduce the effort that MTF members have to put in reviewing the information. 

Monitoring and Evaluation

Evaluation methods for this project will include:

1) The progress and will be measured by how many policies, models or programs we are capable to gather and by the level of commitment of APEC MTF group member (how many of them want to participate and, of them, how many will participate in the whole process). The success of the project will also be measured on how many policies on promoting women participation in the SME mining sector we are capable to find and describe. The main indicator will be the number of programs, policies and models we can find, and the number of programs, models and policies on integrating women we can find.

2) Along with the review of the gathered information by MTF members, there will be a small survey on the amount and quality of information gathered, so we can check how the progress of the project going is.

3) When the project is in its final stages, we will distribute it for peer review so we can make the relevant corrections. This milestone will take place at least three months before the due date, so participants have time to make their comments and we have time to make the corrections.

Monitoring indicators for this project will include:

1)  A review of, at least, six economies’ policies, programs and plans.

2)  A review of, at least, one tool to enhance women participation in small and medium mining industry, one tool to promote environmental protection, one on social development and protection, one on economic development of small and medium mining, and one on training programs.

Linkages

This project aims to search policies, programs and plans to develop small and medium size mining industry. However, these type of tools can be extrapolate to other areas of small and medium enterprises. Because of this, Small and Medium Enterprise working group of APEC was interested in this project.

We are searching to work together with APEC’s SME working group, to have their support, and their help in gathering the needed information, and also to promote the implementation of different policies for the development of the SME mining sector once the project is ready.

Such an initiative hasn’t been done yet and it could be a great initiative to promote collaboration between APEC economies, and between different APEC for a.

Sustainability

This project’s expected outcomes are that APEC economies implement some of the tools that exist to promote and develop a sustainable small and medium mining sector. Once this policies are implemented, it would be very interesting to know how they worked, what were the adjustments that were made to make it work, what were the difficulties and main differences compared to the original tool.

To measure this impact, one survey (to be developed) will be made 3 years after the project ends, and a second one after the following three years. This survey will be made to the MTF members to check wat have they done with this tool and how has it work. The outcomes are expected to occur in the long term, because creating a new policy takes time and having observing results could take even longer.

If after the first three years, there are important observable outcomes, the project could be duplicated to include those new tools (ore adequate tools) to make a new version of the project. Otherwise, the new version will be made after the second three years.

Project Overseers

The project overseer will be Miss Constanza Kutscher, strategies and public policies analyst of the Chilean Copper commission (Cochilco). Miss Kutscher has been an active participant of the MTF group since 2016.

The project overseer will be working hand to hand with the contractor in every part of the process. She will be doing research on policies, programs and plan to develop small and medium mining companies in Latin America to support the work of the contractor. She will also ensure the compliance of the proposed milestones and will review the work done by the contractor.

Miss Kutscher is a civil engineering from the Catholic University of Chile, with a master degree in environmental conservation education from the New York University. Her contact data are:

Email: ckutsche@cochilco.cl
Phone number: +562 2382 8203

Address: Agustinas 1161, 4th floor, Santiago, Chile

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Created at 15/01/2018 14:58  by Lucy Phua 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

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