Mining in Africa This page intentionally left blank Mining in Africa Regulation and Development Edited by Bonnie Campbell Groupe de recherche sur les activités minières en Afrique (GRAMA) Faculty of Political Science and Law Université du Québec à Montréal (UQAM) Bonnie Campbell, Gisèle Belem, Marie Mazalto, Bruno Sarasin With the collaboration of Thomas Akabzaa Department of Geology, University of Ghana, Legon International Development Research Centre Ottawa · Cairo · Dakar · Montevideo · Nairobi · New Delhi · Singapore First published 2009 by Pluto Press 345 Archway Road, London N6 5AA and 175 Fifth Avenue, New York, NY 10010 Distributed in the United States of America exclusively by Palgrave Macmillan, a division of St. Martin's Press LLC, 175 Fifth Avenue, New York, NY 10010 www.plutobooks.com International Development Research Centre PO Box 8500 Ottawa, ON, Canada K1G 3H9 www.idrc.ca / [email protected] ISBN 978-1-55250-450-5 (e-book) The Nordic Africa Institute P O Box 1703, SE-751 47 Uppsala, Sweden www.nai.uu.se ISBN 978-91-7106-647-3 (e-book) Copyright © Bonnie Campbell 2009 The right of the individual contributors to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 978 0 7453 2940 6 Hardback ISBN 978 0 7453 2939 0 Paperback Library of Congress Cataloging in Publication Data applied for This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental standards of the country of origin. The paper may contain up to 70% post consumer waste. 10 9 8 7 6 5 4 3 2 1 Designed and produced for Pluto Press by Curran Publishing Services, Norwich Printed and bound in the European Union by CPI Antony Rowe, Chippenham and Eastbourne CONTENTS List of figures vi List of tables vii List of maps viii Acknowledgements ix Acronyms and abbreviations xi Introduction 1 Bonnie Campbell 1 Mining in Ghana: Implications for National Economic Development and Poverty Reduction 25 Thomas Akabzaa 2 Guinea and Bauxite-Aluminium: The Challenges of Development and Poverty Reduction 66 Bonnie Campbell 3 Mining, Poverty Reduction, the Protection of the Environment and the Role of the World Bank Group in Mali 119 Gisèle Belem 4 Mining and Protection of the Environment in Madagascar 150 Bruno Sarrasin 5 Governance, Human Rights and Mining in the Democratic Republic of Congo 187 Marie Mazalto Conclusion: What Development Model? What Governance Agenda? 243 Bonnie Campbell Index 261 [ v ] FIGURES 1.1 Comparison between foreign and domestic staff in Ghana’s mining sector (1994–2006) 50 1.2 Employment trends in Ghana’s mining sector (1994–2006) 51 1.3 Distribution of mining royalty among stakeholders 56 2.1 Guinea: national production of bauxite (1986–2006) 70 2.2 Guinea: central government revenue share (1996–2008) 96 2.3 Guinea: exports of goods (1995–2009) 96 2.4 Guinea: export and mining taxes (1996–2004) 97 3.1 Gold production in Mali (1985–2006) 130 3.2 Mali: the contribution of gold and cotton to GDP (1990–2005) 131 3.3 Divergence between actual production and the feasibility study estimates for the Sadiola and Morila mines 140 4.1 Stages for obtaining a mining permit: the case of QMM 165 [ vi ] TABLES 1.1 Contribution of the mining sector to gross exports value (1984–2005) 29 1.2 Comparison of the fiscal and related provisions of the Minerals and Mining legislations of 1986 and 2006 40 1.3 List of Defined Rents and Taxes provided by Act 703 42 1.4 Contribution of mining to revenue collection by IRS (1990–2005) 45 1.5 Government revenue from dividends 47 1.6 Distribution of royalty receipts at the local level 57 2.1 Guinea: central government revenue (2000–07) 68 2.2 Guinean central government financial operations (in billions of Guinean francs) 86 2.3 Guinean central government financial operations (in % of GDP) 87 2.4 Guinea: the major mining companies and their contribution to national employment (2001) 100 3.1 Mali: tax and customs measures in the 1991 and 1999 Mining Codes 127 3.2 The principal mines in Mali 131 3.3 Environmental legislation governing the Sadiola and Morila mines 132 3.4 International norms and voluntary initiatives adopted by AngloGold Ashanti Ltd 133 4.1 The role of agencies involved in environmental management of the mining sector in Madagascar 160 4.2 Environmental components of the legal framework for mining operations in Madagascar 162 4.3 Typology of the stakeholders involved in the Tolagnaro mining investment project 170 5.1 Human development and health indicators in DRC 225 [ vii ] MAPS 3.1 Location of principal gold mining operations in Mali 129 4.1 The mineral deposits of the Tolagnaro Project 167 5.1 Principal minerals in DRC 188 [ viii ] ACKNOWLEDGEMENTS This study was produced by Bonnie Campbell, Thomas Akabzaa, Gisèle Belem, Marie Mazalto, and Bruno Sarrasin who are members of the Groupe de recherche sur les activités minières en Afrique (GRAMA), which is part of the Chaire C.-A. Poissant de recherche sur la gouvernance et l’aide au développement of the Institut d’études internationales de Montréal (IEIM) and the Faculty of Political Science and Law at the Université du Québec à Montréal (UQAM). Bonnie Campbell is a professor of political economy at the Depart- ment of Political Science at UQAM, Bruno Sarrasin a professor at the Department of Urban Studies and Tourism at the same university and Thomas Akabzaa is professor of geology at the University of Ghana, Legon. At the time of writing, Marie Mazalto and Gisèle Belem were completing their doctoral degrees in sociology and environmental studies respectively at UQAM. This volume is the result of a three-year research programme (2004–07) entitled ‘Extractive Industries and Sustainable Development in Africa: An Evaluation of Policy Reforms and Recommendations’ which was made possible thanks to the financial support of Canada's International Development Research Centre (IDRC). We wish to express our sincere gratitude to IDRC for making this programme possible. We would like as well to express our gratitude to Patrick Bolland for his kind assistance in the translation to English of the chapters on Mali, Madagascar and the Democratic Republic of Congo. We wish to thank Suzie Boulanger and Djifa Ahado for their meticulous and invaluable assistance in ensuring the finalisation of this manuscript. A very special word of appreciation goes to Gisèle Morin- Labatut of IDRC for her confidence and support over the years for the work which we have carried out. We also wish to thank the IDRC and the Nordic Africa Institute for their generous support in the publication of the volume. [ ix ]
Description: