Areas Extractive Industries

Extractive Industries


Optimizing Permanent Establishment Clause for Resource Rich Countries

The allocation of the rights to tax business profits of non-resident entities’ operations depends on whether these operations can constitute a “Permanent Establishment” (PE) according to the definition included in each DTA. CCSI’s research and brief looks at this issue in the context of extractives and provides a sample clause that optimizes the PE definition for resource rich countries.

The Executive Session on the Politics of Extractive Industries

The Executive Session on the Politics of Extractive Industries (ES on PEI) is a policy innovation lab led by a group of experts – academics and practitioners – from across the world. Focusing on PEI entails grappling with the ways in which power, interests, incentives and characteristics of political systems shape how extractive industry projects are developed, their ultimate outcomes, and often the fate of governance interventions designed to improve these. The purpose of ES on PEI is to produce practical insights and actionable strategies for addressing the political aspects of governance of the EI sector.

ResourceContracts.org: A Database of Publicly Available Oil, Gas and Mining Contracts

CCSI, together with the World Bank and Natural Resource Governance Institute, has developed ResourceContracts.org, an online, searchable and user-friendly database of publicly available oil, gas and mining contracts from around the world. Users can search contracts by country, by natural resource or by type of contract; view summaries of key social, environmental, fiscal, and operational provisions; and download full contracts.

Assessing Water-Related Risks in the Mining Sector

As part of a 3-year grant from Norges Bank Investment Management (NBIM), CCSI worked with the Columbia Water Center to develop and benchmark a modeling platform for quantitatively assessing the environmental risks associated with gold and copper mining projects and their resulting financial implications.

Fossil Fuel Companies and Climate Change

CCSI has been exploring the strategies fossil fuel companies have embraced in order to address climate change concerns, and the strategies responsible investors could potentially request from fossil fuel companies in order to move towards a decarbonized economy.

A Regulatory, Operational and Commercial Framework for the Utilization of Associated Petroleum Gas

CCSI is working to develop a regulatory and operational framework that would unlock the value of the Associated Petroleum Gas that is currently wasted, in order to improve energy efficiency, expand access to energy, and contribute to climate change mitigation.

Comparing Mineral Regimes: Licensing vs. Contracts

CCSI examined the advantages and disadvantages of different mineral regimes (licensing regimes vs. contractual arrangements) in 18 countries around the world. For the 13 countries that used mining contracts, CCSI further examined the contract negotiation and implementation processes of 30 mining contracts as well as the relationship between those countries’ mining contracts and their legal regimes. CCSI also identified potential opportunities for external experts to support resource rich, low income countries in contract negotiations.

Support to the UN SDSN on the Post-2015 Sustainable Development Agenda

CCSI provides ongoing support to the UN Sustainable Development Solutions Network (UN SDSN) Thematic Group 10 on Good Governance of Extractive and Land Resources. This has included technical support on reports and documents during the development of the Sustainable Development Goals (SDGs), as well as development of potential indicators to measure progress toward the SDGs. In addition, CCSI and the Thematic Network have worked together on several projects to identify research gaps and generate innovative solutions.

Designing a Legal Regime to Capture Capital Gains Tax on Indirect Transfers of Mineral and Petroleum Rights: A Practical Guide

Building on the momentum created by the Platform for Collaboration on Tax’s draft paper regarding taxing indirect transfers of source country assets, CCSI and the International Senior Lawyers Project (ISLP) wrote a paper providing practical guidance to developing country governments on the taxation of indirect transfers of extractive industries’ assets. Indirect transfers occur when—instead of selling the asset—the shares of the domestic subsidiary, the shares of the foreign company with a branch in the country, or the shares of the holding company are sold.

Community Development Requirements: Domestic Laws, Best Practices, and Community Development Agreements Database

CCSI has a growing portfolio of activities regarding community development requirements and community development agreements (CDAs) that includes: (i) mapping domestic legal requirements for community development in the context of mining projects; (ii) policy and research on best practices around CDAs and benefit sharing for extractive, agricultural, and forestry projects; and (iii) regularly maintained collection of publicly available community agreements relating to extractive, agricultural, and forestry projects.

Open Fiscal Models

Alongside growing revenue and contract transparency, increasing fiscal model transparency is needed. Only with financial model transparency can relevant actors better assess whether contracts are balanced in terms of fiscal returns and understand when revenues start flowing to the government. CCSI strongly supports financial model transparency and has developed two open fiscal models. We are currently welcoming feedback on their usefulness, user-friendliness, and on any observed inaccuracies.

Review of Competitive Bidding Frameworks for Natural Resource Rights

This study surveyed the trend toward countries integrating competitive bidding provisions for mineral rights allocation into their national legislation and regulations, and sought to analyze the potential issues around these provisions.

Mining and the Sustainable Development Goals

In September 2015, the UN member states agreed on a set of 17 Sustainable Development Goals (SDGs), which represent the global agenda for equitable, socially inclusive, and environmentally sustainable economic development until 2030. Mining companies have the potential to become leading partners in achieving the SDGs. Through their direct operations, mining companies can generate profits, employment, and economic growth in low-income countries.

Leveraging Mining-Related Infrastructure Investments for Development (Rails, Port, Power, Water and ICT)

With the support of the World Bank and the Australian Government, CCSI has been exploring regulatory, operational and commercial models to leverage mining-related infrastructure for broader development needs.

Integrating the SDGs in Company Sustainability Strategies

The Sustainable Development Goals (SDGs) represent the world’s comprehensive post-2015 agenda for equitable, socially inclusive, and environmentally sustainable economic development. Meeting the SDGs by 2030 will require unprecedented cooperation and collaboration among governments, non-governmental organizations, development partners, the private sector and communities. Unlike the Millennium Development Goals (MDGs), the SDG framework calls upon the private sector to incorporate the goals into its practices and operations. CCSI is working with a leading energy company to align its sustainability strategy to the SDGs.

Localizing the SDGs in a Mining Impacted Province

CCSI is working with the Nueva Union mining project and the four Municipalities of Huasco Province, Chile to help design a long-term development plan.

Negotiation Support to Resource Rich, Low-, and Middle-Income Countries

CCSI created and manages the Negotiation Support Portal to improve the accessibility of tools, resources and technical assistance to support host governments’ planning, preparing for, negotiating, monitoring, and implementing large-scale resource and infrastructure investments. The portal also facilitates coordination among support providers and host governments. In addition, CCSI has launched a series of meetings of negotiation support providers to create a forum to discuss common challenges and opportunities, and to facilitate greater coordination among support providers.

Mozambique: Development of a Five-Pillar Plan for Resource-Based Development

This 2011 project examined how the vast resource deposits in the Tete province, combined with other major investments along the Nacala and Beira corridors, can be the basis for sustainable, equitable and inclusive growth in the Lower Zambezi Basin.

International Gas Outlook and Implications for Developing Tanzania’s Gas Projects

In partnership with the Uongozi Institute, CCSI prepared a brief that reviews recent developments in the international gas market, with particular focus on proposed offshore gas projects in Tanzania. As Tanzania positions itself to benefit from gas discoveries by increasing its domestic gas use, the brief outlines some of the trade-offs and considerations for negotiating the domestic gas allocation.

Handbook On Measuring Employment From Extractive Industry Investments

CCSI prepared a report on measuring employment from extractive industry investments that outlines two modeling techniques used to estimate employment multipliers: 1) The input-output (IO) model, and 2) The computable general equilibrium (CGE) model. The handbook explains the advantages, disadvantages, necessary inputs, and results associated with each model.

Critical Minerals For Green Technologies

CCSI is researching how the development of green technology could impact the demand for “critical” minerals.

Developing a Collaborative Approach to Human Rights Impact Assessments

CCSI, in partnership with the Sciences Po Law School Clinic and the Danish Institute for Human Rights, has developed a collaborative approach to human rights impact assessments (HRIAs) of private sector investment projects. Although HRIAs have become increasingly prominent in recent years, one specific challenge is the frequent lack of trust between communities and companies, which often extends to distrust of HRIAs that “the other side” has initiated. A collaborative approach to HRIAs provides an avenue to jointly undertake an HRIA that is considered credible by all sides and that helps to address the power imbalances that often exist between companies and communities around private sector projects.

Supporting Governments and Civil Society: Legal Frameworks Governing Extractive Industries

CCSI advises governments and civil society organizations on various issues relating to the legal frameworks that govern extractive industries.

DRC: Human Rights Impact Assessments For Mining Projects

CCSI supported local organizations in the Democratic Republic of Congo (DRC) to carry out human rights impact assessments, as well as developing two economic models for the Sicomines mine in the DRC to compare the financial flows under the resource for infrastructure deal with a ‘traditional’ contract under the mining code of the DRC.

Supporting Governments and Civil Society: Fiscal Frameworks

CCSI advises governments and civil society organizations on various issues relating to fiscal frameworks for the extractive industries sector.

Renewable Power of the Mines

Mine sites that are remote often rely on expensive off-grid solutions to generate power. Use of renewable energy could be a cost-reducing solution for mine sites, and CCSI is researching how to leverage the power demand from mines to deploy renewables in developing countries.

“Stranding” Fossil Fuel Assets Equitably

CCSI is exploring how equity can be taken into account when thinking through the issue of stranding assets.

Business Case for Transparency

CCSI strongly supports the transparency of contracts and tax flows and has published research and papers making the business case for transparency, including two submissions to the SEC in 2011 and 2015.

Local Content Laws & Contractual Provisions

CCSI is examining local content provisions contained in legal frameworks governing resource investments, including in contracts, legislation and bidding practices.

Employment from Mining and Investments in Land for Agriculture

The employment potential of investments in extractive industry projects and land acquisitions for agriculture is often touted both by governments and by companies in support of investor-friendly policies and large-scale investments in natural resources. CCSI is examining how job numbers are calculated, which factors influence job creation, and the quality and sustainability of these jobs, as well as whether job creation generated from these investments is net positive.

Fiscal Regimes for Natural Resources

Monitoring fiscal reforms in extractive industries is an ongoing part of CCSI’s research.
CCSI is researching aspects of designing and implementing fiscal regimes in an attempt to identify legal and fiscal elements that can help avoid unintended consequences or disputes between an investor and the government over the course of the investment.

Training Module on Extractive Industries and Climate Change

In 2017 CCSI integrated climate change as one of the core modules in its executive training on extractive industries and sustainable development. The training session provides an introductory overview of climate change impacts, and the Paris Agreement. It gives an overview of various policy developments that have driven and will continue to drive the energy transition, as well as how the private sector is responding.

Influence of the Transport Transformation on Fossil Fuel Demand

In collaboration with the Cambridge Institute for Sustainability Leadership at Cambridge University, this research examines how the shift to electric vehicles (EVs) could be accelerated, and how this transformation may impact fuel demand.

DRC: Economic Model for Resource For Infrastructure Deal

In partnership with the Carter Center, CCSI developed two economic models for the Sicomines mine in the DRC. The models compared the financial flows under the resource for infrastructure deal with a ‘traditional’ contract under the mining code of the DRC. The collaboration agreement between the Congolese Government and a consortium of Chinese companies is one of the most prominent resource for infrastructure deals, with Chinese investors providing a concessional loan of US$3 billion for infrastructure investments that are unrelated to the mining project and US$3 billion for the copper-cobalt mine itself. The loan is to be repaid through the profits of the mining project, which started operations in 2015.

Conceptualizing Economic Linkages to the Resource Sector

GIZ has been working with CCSI to develop research and training materials around economic linkages to the resource sector.

Tanzania Diagnostic Trade Integration Study

CCSI has been contracted to perform the extractive industries section of the World Bank Diagnostic Trade Integration Study (DTIS) for Tanzania. The study aims to identify the internal and external trade constraints that hinder the development of the priority sectors, and to provide policy recommendations on how these obstacles can be overcome.

Comparing Lessons Learned for Extractive Industry Investments and Large Land-Based Agricultural Investments

CCSI has brought together stakeholders to explore good governance initiatives for extractive industry investments and large land-based agricultural investments—in particular, whether, and if so, why, certain good governance efforts may be more advanced in one industry than in the other, and what could be done to further advance governance initiatives in both industries.

Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance (facilitated MOOC)

Twice a year, CCSI, Natural Resource Governance Institute (NRGI), the World Bank and the United Nations Sustainable Development Solutions Network (SDSN) offer a massive open online course (MOOC) on Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance. This MOOC, (delivered in English and now available in Arabic, with video transcripts also available in French,… read more

Mining Contracts: How to Read and Understand Them

In December 2013, a diverse group of 14 experts from Africa, Asia, North America, South America, and Europe worked together for five days to produce a user-friendly guide in English and in French on “Mining Contracts: How to Read and Understand Them.” The guide was produced to help policy makers, civil society, citizens, and the media understand the often complex and opaque terms of mining contracts.

Review Mechanisms in Natural Resource Contracts

CCSI has published a brief which examines the use of built-in review periods in extractive industry contracts as a mechanism for managing investor and host-country relations over the duration of a project. CCSI completed a survey of periodic review mechanisms contained in extractive industry contracts, to analyze how they have been used to date, and to understand the purposes for which they may usefully be applied.

Enabling Resource Contract Transparency

Contract transparency in natural resources is an emerging norm that many governments, companies and international institutions have endorsed, particularly within the extractive industries. However, more must be done to make contract transparency a standardized and meaningful norm that leads to better accountability within the extractive industries, as well as around investments in land, agriculture, and forestry.

The Mine of the Future

CCSI, IISD and Engineers Without Borders researched the technological innovations in mining that are being developed, assessing when these technologies could be rolled out, and quantifying their impact on local employment and procurement and how local content policies should adapt.

Tanzania Oil and Gas Capacity-Development Program

CCSI has partnered with the International Senior Lawyers Project (ISLP) and Tanzania’s UONGOZI Institute to develop a capacity-development program for Tanzania’s Oil & Gas Negotiation Team

New Petroleum Producers Discussion Group

CCSI is a knowledge partner to the New Petroleum Producers Discussion Group project, co-organized and sponsored by Chatham House, NRGI, the Africa Governance Initiative and the Commonwealth Secretariat. This project aims to help emerging oil and gas producers to think critically about the various policy options available during the first steps of exploration and development, or when restructuring their petroleum sector.

Managing the Public Trust: How to Make Natural Resource Funds Work for Citizens

The Natural Resource Governance Institute (NRGI) and CCSI have conducted a world-wide survey of Natural Resource Funds (NRF). The survey considers NRF management, investments, transparency, and accountability to the public, as well as the fiscal rules that govern them. This project seeks to foster cross-country experience-sharing on fund governance.

International Investment Law and the Extractive Industries Sector

Since the 1990s, international investment law has been rapidly evolving, resulting in a complex web of over 3,000 investment treaties. These treaties have been used to challenge a wide range of host state actions and inactions that have allegedly negatively affected foreign investors or investments. Those challenges, in turn, expose host states to potentially significant financial costs, and can restrict the ability of such states to maximize the benefits, and limit the environmental and social harms, that can result from the exploitation of natural resources.

A Framework to Leverage Mining-related Infrastructure

Thanks to a grant from the Australian Government, CCSI has developed an economically, legally and operationally rational framework to enable shared use of mining-related infrastructure, including rail, ports, power, water, internet and telecommunications.

Columbia International Investment Conference

Since 2006, CCSI has hosted an annual Columbia International Investment Conference. These annual conferences bring together numerous stakeholders including high-level government officials, corporate executives, investors, academics, and civil society for forward-looking policy discussions of critical issues in international investment for sustainable development. A list of the past Conferences, with links to the programs and materials,… read more

Executive Training on Extractive Industries and Sustainable Development

This program is designed to equip participants with the necessary skills to promote the responsible development of the extractive industries sector in resource-rich developing countries and to encourage a rich dialogue about best practices from around the globe.

Support for Host Country Governments in the Planning, Preparation for, Negotiation, Implementation, and Monitoring of Large-Scale Investments

CCSI created a Negotiation Support Portal designed to improve the accessibility of technical assistance and of useful tools and resources to assist host governments planning, preparing for, negotiating, monitoring, and implementing large-scale investments in the extractive industries, land and agriculture, and infrastructure sectors, and to facilitate coordination among support providers and host governments.

In-Country Trainings on Extractive Industries and Sustainable Development

CCSI regularly delivers adapted versions of the Executive Training Program on Extractive Industries and Sustainable Development in various host-countries around the world.

Extractive Industries Curriculum for Masters in Development Practice

The course covers the inter-related challenges of governance, infrastructure, economic diversification, environmental management, and economic development.

Paraguay: Leveraging Paraguay’s Hydropower for Sustainable Economic Development

This advisory project, undertaken for the Government of Paraguay, explored the potential for creating a climate risk management system, and developing sustainable agricultural activities, to mitigate environmental vulnerability; and developed a high-level strategic plan around using Paraguay’s vast hydropower resources for sustainable economic development, and the diversification of its economy.

Ad-hoc events

CCSI regularly hosts speakers, roundtables, workshops, and events on a variety of related topics.

Policy Briefs, Guides and Other Publications

CCSI produces a number of policy briefs, guides and other publications that are useful resources on topics of extractive industries, land and agriculture, and investment law and policy.

Downstream Beneficiation of Extractive Resources

This research looks at the economic prerequisites that attract first degree downstream beneficiation industries, such as steel mills, and the extent to which these industries have contributed to further domestic linkages in the past, and assesses whether it makes sense to provide large incentives for these investments.

Fostering Knowledge and Technology Spillovers of Extractive Industry Investments

This research project assesses the channels through which knowledge and technology can be transferred and, based on successful country case studies, provides recommendations on how governments can enhance technological spillovers in oil, gas, and mining.

Timor-Leste: Support to the Strategic Development Plan

CCSI supported the drafting and adoption of the 20 year Strategic Development Plan (SDP) for Timor-Leste, and helped to develop new institutions and laws to optimize the use of the country’s petroleum fund for development.

Guinea, Tanzania, and Zambia : Integrated Community Development at Mine Sites

CCSI is collaborating with the Earth Institute and Millennium Development Goal (MDG) Centers in West and East Africa to adapt the broad precepts of the Millennium Villages Project to the specific conditions of mining sites.

Comparing Company Profits and Government Revenues from Extractives During the ‘Commodity Super Cycle’

This research project aims to assess whether it is reasonable for governments to demand a larger share of the pie by comparing company profits to government revenues during the boom years.

Contextualizing Stabilization Clauses

This research assesses whether political risk indicators are a good measure to predict fiscal regime changes, with the ultimate aim to create a framework which investors and governments can use to negotiate the length of future stabilization clauses.

Strategic Environmental Assessment

The aims of this research are to propose how and when strategic environmental assessments can be integrated into planning processes in the pre-contracting phase and to support governments at the ministerial level in their implementation, looking at tools and institutional framework enabling participatory and cross-ministerial processes.

Resource for Infrastructure Deals

Tags: Research

CCSI, in collaboration with the Carter Center, is developing two economic models for the Sicomines mine in the Democratic Republic of the Congo (DRC) to compare the financial flows under the resource for infrastructure deal with a ‘traditional’ contract under the mining code of the DRC.

Cross-Border Pipelines

This project examined the bargaining power of cross-border pipeline transit countries and the range of factors that influence it, including their position in the pipeline, their commercial interest in the project as well as their foreign policy strategy.

Topical Contractual Issues

Contract Comparison Research: Using the ResourceContracts.org contract comparison tool, CCSI is researching local content and water provisions respectively in oil, gas, and mining contracts from select countries, supplementing and situating the analysis in the context of the projects to which the contracts apply to understand the impact of such provisions on water availability for communities surrounding a project, and the realization of local content objectives.