For four days, participants exchanged their experiences using "Getting It Right," a dynamic tool developed by Canada-based Rights & Democracy. Designed especially for communities and their support organizations, the tool enables teams to conduct HRIAs of private investment projects, such as infrastructure projects, agro-industry, dams, extractive industries, and other initiatives.
This report summarizes key lessons learned and recommendations from participants, based on their pilot experiences in Bolivia, Columbia, Ecuador, Peru, the Philippines, and the United States.
]]>“More transparency and stability in the oil, gas, and mining sector could help unlock billions of dollars in resource-rich countries that are home to more than half of the world’s poorest people,” said Raymond C. Offenheiser, president of Oxfam America. “The Senators have taken an important step toward improving the use of government revenues from natural resources by introducing a law that promotes transparency where it is needed most.”
Paradoxically, developing countries dependent on oil and mineral wealth often have high rates of poverty, internal conflict, and instability. Known as the “resource curse,” this phenomenon leaves citizens vulnerable with no information about how natural resource revenues are used.
“Natural resource revenues are too often squandered through corruption, internal conflict, and weak governance,” said Offenheiser.“The information provided through The Energy Security Through Transparency Act could be a vital tool for citizens to hold their governments accountable for using these revenues to address community needs like education, health care, and jobs,” said Offenheiser.
Oil, gas, and mining companies are increasingly operating in new areas of developing regions, including West Africa, the Amazon basin, and Southeast Asia. Given the weakness of government oversight and high rate of internal conflict in many of these countries, it is even more important that companies be transparent.
“It is no secret that lack of transparency in the oil, gas, and mining industry often goes hand-in-hand with government corruption and violent conflict. Instability in these regions poses a long-term threat to national security, foreign policy, and economic interests of the United States. While some companies are ahead of the curve and understand the advantages of transparency for their relationships with local communities, without mandatory revenue disclosure for all companies, the industry suffers with company investments at risk and higher energy prices for consumers. This legislation would foster accountability in nations where secrecy has undermined development, democracy, and human rights,” said Offenheiser.
Similar legislation was introduced in 2008 as the Extractive Industry Transparency Disclosure Act in both the House and Senate. The Lugar/Cardin bill would apply not only to US companies, but to all oil, gas, and mining companies registered with the US Securities and Exchange Commission. This includes European companies, such as Shell and BP, as well as companies in emerging markets like China, India, Brazil, and Russia.
“Like the Foreign Corrupt Practices Act of 1977, this legislation could have a ripple effect around the world and would be an important complement to voluntary initiatives that may take hold in only a few countries,” said Offenheiser. “Mandatory revenue disclosure has the power to weed out corruption in developing countries making way for stability and real solutions to poverty that the oil, gas, and mining industries can support.”
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Last month, Newmont released the results of an independent review, which provides information about the company's community relationships and important recommendations for improving operations on the ground. The review, the first of its kind by a major mining company, came at the request of shareholders, led by New York-based Christian Brothers Investment Services, concerned about protests and environmental problems at Newmont's mining projects around the world. The company will formally present the results of the report to shareholders at the annual meeting.
"We commend Newmont for conducting a critical assessment of their community relationships. As shareholders gather this week, plans for urgent action to improve relations with the communities living near its operations should be at the top of the agenda," said Raymond C. Offenheiser, president of Oxfam America.
Recommendations from the report include handling community conflicts at an earlier stage, holding management accountable for community relations, and establishing effective grievance processes at all sites. The report indentifies problems with Newmont's community interaction at several locations, including sites in Ghana and Peru.
Nearly 10,000 villagers, mainly poor farmers, were displaced by the Newmont's Ahafo mine in Ghana. The report identified the long-term success of the resettlement as one of the greatest risks confronting the project and called on Newmont to actively monitor the implementation of resettlement. Newmont and the World Bank (IFC) will be conducting an audit of the resettlement program this year. Oxfam urges Newmont to make the audit process transparent and participatory.
Newmont's Yanacocha mine in Peru has been the site of repeated protests and violence in recent years. In 2007, local mining activists were the targets of harassments and death threats.
"The report identified an atmosphere of fear and intimidation among local residents at the Yanacocha mine, who worry about speaking out against the company out of fear of harassment by the mine's security forces," said Offenheiser. "It is very troubling that people are afraid to peacefully express their concerns. Newmont must address this situation immediately."
Communities affected by mining projects should have a role in decision-making about how the project will affect their lands and livelihoods. The report recommends an action plan that includes clarification of Newmont's commitment to the principle of free, prior and informed consent for communities.
"Newmont's endorsement of the principle of free, prior and informed consent for communities would be an important step forward," said Offenheiser. "The key now is to engage with local communities and apply this principle to company practice. We are pleased that Newmont's board of directors has accepted the report's analysis and recommendations and directed management to engage with affected communities on the report's findings."
The Newmont report also highlighted community concern about lack of access to information about the revenues the company pays to local and national governments, leaving communities unable to hold their governments accountable for how mining revenues are used.
"Newmont has been a leader in committing to greater transparency and can help address community concerns about revenue sharing by recommitting to disclose all payments made to host governments," said Offenheiser. "Endorsing mandatory public disclosure policies like the Extractive Industries Transparency Disclosure Act would be an important first step."
Oxfam advocated passage of the Extractive Industries Transparency Disclosure Act, legislation that would require all mining, oil, and gas companies registered with the Securities and Exchange Commission to disclose the payments made to foreign governments. The bill, which was introduced by House Financial Services Committee Chairman Barney Frank (D-MA) in the 110th Congress, is expected to be reintroduced shortly.
]]>The independent review, released today, is the first of its kind by a major mining company and provides information about community relationships and important recommendations for improving the company's operations on the ground. The review, carried out over a two-year period, came at the request of shareholders, led by New York-based Christian Brothers Investment Services, concerned about protests and environmental problems at Newmont's mining projects around the world.
"The review is important for two reasons. First, it was driven by shareholders concerned about social impacts of Newmont's mining activities. And, second, the review confirmed that Newmont needs to take urgent action to improve relations with the communities living near its operations," said Raymond C. Offenheiser, President of Oxfam America. Oxfam will advocate for other companies to build on this experience in undertaking their own independent reviews.
The report indentifies problems with Newmont's community interaction at several locations, including sites in Peru and Ghana. Recommendations from the report include handling community conflicts at an earlier stage, holding management accountable for community relations, and establishing effective grievance processes at all sites.
Oxfam stresses the critical importance of community consent, meaning communities affected by mining projects should have a role in decision-making about how the project will affect their lands and livelihoods. According to the report, Newmont has endorsed this principle but has not fully implemented it.
"Newmont's endorsement of the principle of free, prior and informed consent for communities is an important step forward," said Offenheiser. "The key now is to engage with local communities and apply this principle to company practice. We are pleased that Newmont's board of directors has accepted the report's analysis and recommendations and directed management to engage with affected communities on the report's findings."
"The breadth of issues covered and the role of the advisory panel were encouraging aspects of this review," said Offenheiser. "However, the panel did express concerns about the company's resistance at times to providing requested information and laid out important suggestions for taking similar reviews forward."
Oxfam has particular concerns about the findings related to Newmont's Yanaocha mine in Peru—the site of repeated protests and violence in recent years. In 2007, local mining activists were the targets of harassments and death threats.
"The report identified an atmosphere of fear and intimidation among local residents at the Yanacocha mine, who worry about speaking out against the company out of fear of harassment by the mine's security forces," said Offenheiser. "It is very troubling that people are afraid to peacefully express their concerns. Newmont must address this situation immediately."
The Newmont report also highlighted community concern about lack of access to information about the revenues the company pays to local and national governments, leaving communities unable to hold their governments accountable for how mining revenues are used.
"Newmont has been a leader in committing to greater transparency and can help address community concerns about revenue sharing by recommitting to disclose all payments made to host governments," said Offenheiser. "Endorsing mandatory public disclosure policies like the Extractive Industries Transparency Disclosure Act would be an important first step."
Oxfam advocated passage of the Extractive Industries Transparency Disclosure Act, legislation that would require all mining, oil, and gas companies registered with the Securities and Exchange Commission to disclose the payments made to foreign governments. The bill, which was introduced by House Financial Services Committee Chairman Barney Frank (D-MA) in the 110th Congress, is expected to be reintroduced shortly.
]]>"I feel privileged to be here," he said. "To bring together 50 smart, energetic young people to talk about injustice: where I come from, that doesn't happen. It could never happen."
Alicante had come to Eastern Nazarene College, just outside Boston, to speak to the newest participants in Oxfam America's CHANGE Initiative. This national program transforms US college students into social justice activists by providing them with the tools to implement Oxfam advocacy campaigns on campus. At the start of each year's program, a week-long training helps the students (known as CHANGE Leaders) hone their leadership skills, advocacy skills, and knowledge of Oxfam's work. During sessions like Alicante's, they have a chance to meet the real people behind the issues.
Alicante began by describing his home country Equatorial Guinea: a small nation in west central Africa, rich in oil but suffering some of the world's most intense poverty. He contrasted photos of the degraded living conditions in the capital, Malabo, with the president's fleet of private planes and multi-million dollar California estate.
In Equatorial Guinea, he said, the vast majority of the country's oil wealth flows into its leaders' pockets, while its people lack adequate schools, sanitation, or healthcare. Kept in the dark about oil profits, the people have no way to claim their fair share.
"My country defines the term 'resource curse,'" Alicante said. "We're rich in resources, but we see few of the benefits."
Growing up, Alicante saw the government use intimidation, kidnapping, and even murder to keep people in line. When his family's home was destroyed, his father told him that there was nothing they could do about it—they just had to go on.
"That's when I realized I didn't want to live in a country where there's nothing you can do to change the situation," Alicante said. "I came to the US to mobilize. Things have got to change."
For two years, Alicante said, his organization has worked with Oxfam and like-minded groups on the Extractive Industries Transparency Disclosure Act. Now introduced in the House of Representatives (H.R. 6066) and Senate (S. 3389), this piece of legislation would require oil, gas, and mining companies registered in the US (including the oil companies operating in Equatorial Guinea) to disclose the amount and type of the payments they make in the countries where they operate.
"People need information about what oil, gas, and mining companies are doing in their communities," Alicante said. "If I know how much money is coming in, I can go to the local chief and ask, where is the money going? How does it meet our needs?"
Now, Alicante said, the CHANGE Leaders would help make this legislation a reality by writing letters to their legislators urging them to support the bill. "We're asking US students to express this injustice," he said, "and show the connection between my country and yours."
"Your representatives will decide the fate of this bill, and we know that they read handwritten letters," added his co-presenter, Oxfam organizer Paul Bugala. "Nothing replaces the power of the pen."
The students bent forward and began to write?hesitantly at first, then with growing confidence.
As they wrote, students received encouragement from 2006 CHANGE Leader Lisa East, a recent graduate of Tennessee Tech and a facilitator at this year's training. East urged the students to host their own letter-writing parties on campus.
"It's important for us students to be political," she said in a strong, clear voice. "Don't be afraid to talk to your representatives; make them accessible. If you're disillusioned about the political process, then take it back."
Afterward, East emphasized the importance of the CHANGE Leaders in showing other students how to make a difference.
"Students always sit up in their dorm rooms late at night, talking about issues, about injustice—but there has to be a next step," she said. "If you're willing to talk about it, but you're not ready to go out there and take action, you're still within those four walls."
Alicante, who has accompanied Oxfam on several campus speaking tours, agreed with East's assessment. "Students sometimes come up afterward and ask: 'I live in Texas; what can I do there to help?' I know the message has reached them when they realize that their actions matter—even to communities on the other side of the world."
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