Decision-making in the extractive sector is shaped by a complex array of governance frameworks and initiatives operating along highly globalized mineral value chains. There is an urgent need to coordinate and reform this governance landscape to address enduring challenges such as commodity price volatility, lack of linkages between mining and other economic sectors, inadequate management of environmental impact, and socio- and geo-political risks of mining.
The report maps more than 80 existing international governance frameworks and initiatives which focus on delivering overlapping subsets of the 2030 Global Agenda for Sustainable Development, but do not currently operate in a sufficiently coordinated or integrated manner. In this context, the report calls for a new governance framework for the extractive sector referred to as the “Sustainable Development Licence to Operate” and including consensus-based principles, policy options and best practices that are compatible with the Sustainable Development Goals and other international policy commitments.
The report discusses practical actions to improve the international governance architecture for mining to enhance its contribution towards sustainable development. The proposals include reaching an international consensus regarding the normative content and structure of the Sustainable Development Licence to Operate informed by expert inputs from a “High-level Panel on Mining for Sustainable Development”. It further considers the creation of an International Mineral Agency to share relevant information and data. Governments could also reach bilateral and plurilateral agreements regarding security of supply of raw materials and resource-driven development. Periodical reporting of progress towards sustainable development could be enabled through a Global “State of the Extractive Sector” review or equivalent process.