The Mining Investment and Governance Review (MInGov)

Mining projects, when well-managed, offer an opportunity to transform resource wealth into sustainable development in many poor countries.

The Mining Investment and Governance Review (MInGov) analyzes the sector and its context to facilitate work on mining regulation, governance and investment.

Mining makes up a substantial part of the economies of many developing countries and has the potential to deliver significant development benefits when managed in a holistic, sustainable manner. Responsible mining can lift people out of poverty by offering economic opportunity, jobs and training. It generates tax revenues that governments can spend on services like health and education. The infrastructure built for it can be shared with local communities to supply electricity and water.

To maximize benefits to the poor, mining must be properly regulated every step of the way, from discovering minerals in the ground, to extracting them and transforming them into sustainable development. Each step, from conducting geological surveys to managing export tariffs, faces different regulatory challenges. Shortcomings in any of these stages can have severe repercussions.

Governance of the mining sector has a direct impact on investment in resource-rich countries.  Investors monitor the sector’s governance in each country, and reward better performance with a lower cost of capital. Through the collection and analysis of a unique and comprehensive dataset, The Mining Investment and Governance Review (MInGov) presents an objective assessment of the mining sector of several countries. It offers actionable avenues for reform, supports transparency, and informs investment decision-making and debate among interested stakeholders.

Who is MInGov for and how does it benefit them?

The Mining Investment and Governance Review (MInGov) gives government and regional public organizations access to policy and institutional analyses that affect the sustainable development of the mining sector, including its investment climate, effectiveness of public institutions in developing and monitoring the sector, as well as the costs and benefits to stakeholders.

Investors, mining companies and other companies in the sector benefit from access to country-specific, relevant governance data, policies and practices of governments that affect investment risk and decision-making in the sector.

MInGov provides civil society organizations, local communities, academia, development partners and sector monitoring organizations concise, high-quality information on government, mining, and investor concerns and performance. They also get access to a comprehensive overview of the operating climate and the incentive structure of the sector to inform their participation in mining sector-related discussions. 

Stakeholders

MInGov stakeholders include national and sub-national governments, mining companies and other firms along the mining value chain such as suppliers and logistics firms, financial institutions, mining-affected communities and civil society organizations. Regional development organizations such as the AfricanAsian and Inter-American Development Banks or the African Minerals Development Centre sector monitoring organizations like the Extractive Industries Transparency Initiative, donors, academia and research groups could also benefit from this review.

MInGov uses a unique methodology and results are presented in individual country reports. The raw data underlying the assessments are available as well. 

MInGov is an initiative of the World Bank Group. It is funded by:

  • The World Bank Group
  • German Development Cooperation;
  • Extractive Industries Technical Advisory Facility (EITAF); and
  • The Inter-American Development Bank.

MInGov’s development is led by the World Bank with the assistance of Adam Smith International (ASI) in collaboration with the African Center for Economic Transformation (ACET), the Natural Resource Governance Institute (NRGI) and the Fraunhofer Institute.

To date, country reviews have been conducted for the countries listed below. As reports become available you will be able to download or view the report by clicking on the country names:

  • Botswana (English) 
  • Democratic Republic of the Congo (Reports will be available soon)
  • Ghana (Reports will be available soon)
  • Kenya (Reports will be available soon)
  • Mozambique (Reports will be available soon)
  • Peru (Reports will be available soon)
  • Zambia (English)

Data for the individual country reviews can be accessed on the "data" tab.

Launch event presentations

 

The Mining Investment and Governance Review (MInGov) reports are based on data collected from a variety of sources.  Download the detailed methodology for further information. MinGov data is being made available in two formats. The normalized data are being made available through the World Bank's Open Data Platform and the raw data are being made available in Excel files. Pursuant to the World Bank Group's open data policy, data can be freely accessed and downloaded for future research.

EXPLORE COUNTRY DATA

Peru Raw data | Normalized data

Zambia Raw data | Normalized data

Botswana Raw data | Normalized data

Normalized data for all countries covered can be accessed at through the MInGov open data portal where viewers can generate their own charts to explore the data and export the normalized datasets.

MInGov employs a robust methodology that aims to facilitate the understanding of the convergence of governance, competitiveness, growth and investment issues related to the mining sector in developing countries. For each country, it explores six themes. The first three of these themes relate to the governance of the mining sector and are explored along the entire Extractive Industries value chain. In addition, three cross-cutting themes (economic environment, political environment, and sustainable development) are explored and contextual information about the importance of the mining sector is provided.

The dashboard below shows every topic being explored:

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(Click here to view the dashboard in higher resolution.) 

Each topic is composed of one or more of 64 indicators. The actual review is performed through a combination of desk research and in-country interviews with sector experts (see figure below). Desk research uses both primary and secondary data. Primary desktop data consist mostly of domestic laws, regulations and similar documentation that are being reviewed to determine the de jure governance and investment environment of the mining sector. Secondary data from reputable sources are used mainly in the review of the cross-cutting themes and the mining sector importance theme. In-country interviews with sector experts are primarily used to assess the de facto performance of the mining sector.

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To ensure comparability across countries and people interviewed, a detailed questionnaire was created to support the reviews.  The questionnaire not only ensures that the data gathering process is comparable across countries, but also provides guidance to scoring responses.  As a result, the questionnaire is an integral part of MInGov and should be read in conjunction with raw of normalised datasets. 

For a more in-depth technical description of the MInGov methodology, scoring of the questionnaire and suite of visualisations, please download the methodology document.

1. What is MInGov about?

MInGov (The Mining Investment and Governance Review) is a country-specific, periodically updated analytical tool that can be used to strengthen the mining sector’s governance, investment environment, and development impact. The reviews are fact based, using primary and extensive secondary data/information, as opposed to being based upon perceptions.

2. What are some of the benefits of using MInGov, compared to other reports and analyses?

MInGov uses indicators that are actionable for host governments and compares a country’s actual performance against its declared objectives. It aims to attract mining investment and strengthen sector governance, including revenue management. It is also relevant to countries other than those reviewed for the common lessons and comparisons it allows.

3. Are MInGov reviews only being done for African countries?

Though the first phase of reviews focus on Africa, MInGov is global. Reviews have been completed for Botswana and Zambia; reviews being developed include Democratic Republic of the Congo, Ghana, India, Kenya, Mozambique, and Peru.

It should also be noted that MInGov is not a replacement for the African Mining Vision, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development’s (IGF) Mining Policy Framework or other specific initiatives.

4. Who is the intended audience for MInGov?

MInGov has three primary stakeholders: governments, investors, and civil society. Secondary stakeholders include academia, development organizations, and the media.

5. How is this MInGov different from existing indices or benchmarking exercises?

MInGov is different in that: (i) it covers the entire extractive industries value chain; (ii) it is designed to be actionable by governments; and (iii) it is designed to be fact based as opposed to perceptions based.

6. Is MInGov meant to provide a point of comparison across countries?

MInGov is designed to be of use to governments wanting to review and improve on governance and to investors looking to make an assessment about investment opportunities.   It is not a ‘score card’ or grading system.  Comparisons can be made between countries but MInGov does not envisage creating a ranking of countries.

7. Will MInGov only cover countries where governments request the review?

Countries covered will be a combination of (i) government requests; and (ii) where investor, civil society, donor or other demand warrants.

8. What are the criteria for choosing the countries for MInGov reviews?

During the pilot stage, countries were selected to best test the range of MInGov’s applicability.  Selection criteria included: (i) legal origin; (ii) maturity of the mining sector; and (iii) language.  MInGov is now being will expanded outside Africa to other developing countries and with an increased focus on Latin America and Asia. 

9. How often will a country be reviewed periodically to measure progress?

At this juncture, we envisage updating the country assessments at least once every four or five years.

10. Will MInGov reviews be publicly available?

All data and reports are (and will be) publicly available at no cost.

11. Have other organizations been involved in development of MInGov?

Yes, many organizations have been consulted throughout the development of MInGov, including the African Union (AU), Africa Mineral Development Center (AMDC), and Inter-American Development Bank (IDB).  MInGov is complementary to regional organizations activities and several organizations have representatives on MInGov’s Technical Committee, the group that guides the strategic and technical evolution of MInGov.  Organizations involved include the – World Bank, the German Federal Institute for Geosciences and Natural (BGR),the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) and IDB.

12. How does MInGov relate to the Africa Mining Vision (AMV) (and country mining vision processes)?

MInGov is complementary to the processes and programs.   It is not a replacement for the AMV and the country mining visions, however, in certain respects the indicators from MInGov could be used to track progress towards achieving the AMV.

13. Who has been consulted in development of the assessment methodology?

A number of consultations have taken place with the AU, AMDC, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), government officials, investors, mining companies, civil society, and academia.

14. What’s the methodology?

MInGov makes use of primary and secondary data to generate a set of indicators that cover the entire extractive industries value chain.   To the extent possible, indicators are designed to be: (i) actionable by country governments; (ii) comparable across countries and time; (iii) fact based; and (iv) verifiable.

15. Who will pays for the country reviews?

Funding for MInGov is from the German government, the Extractives Global Programmatic Support (EGPS) Multi-Donor Trust Fund, and through contributions from other parties, such as the Inter-American Development Bank, and the World Bank’s own internal resources.

16. Is MInGov designed to be relevant to all commodities? Does it allow for variances between precious metals and bulk commodities like iron ore?

MInGov is relevant to all mineral commodities.  The initial focus of the reviews will not cover in great detail some of the logistical issues (i.e. port and rail regulatory environment) that are relevant to many bulk commodities.

The Mining Investment and Governance Review (MInGov) relies on the cooperation of a large number of contributors who volunteer their time and expertise for the country reviews. Contributors include representative from a wide range of stakeholder—including national and sub-national governments, mining companies and other firms in the mining value chain, mining-affected communities and civil society organizations with an interest in the sector and in mining communities, regional organizations, regional development-focused organizations, sector monitoring organizations (e.g. EITI), development partners, academia, and research groups.

The team is grateful to the many public and private sector professionals who contributed to MInGov—fully realizing that without the cooperation of this wide-ranging group of stakeholders MInGov would not be possible.

Contribute to MInGov

MInGov is inviting all stakeholders to participate in future country reviews. Participation in a country review will typically consist of a 30-60 minute interview—conducted via telephone and sometimes in person.  If you are interested in participating, please contact us via e-mail.

The scores for specific questions in MInGov vary from a possible score “4” (if a country’s practice is considered to fully reflect good practice) to “1” (if there are significant deviations from international good practice).  What constitutes good governance and good policy practice in resource management is drawn from a variety of sources as listed below.

Frameworks of mining governance

African Mining Vision (AMV)

Mining Policy Framework, IGF  

Natural Resource Charter (NRC), 2nd edition

World Bank Extractive Industries Value Chain

World Bank’s Framework for Extractive Industries Governance Assessment (FEIGA)

Methodologies of evaluating mining governance

Resource Governance Index

NRC country benchmarking methodology (coming soon)

AMV Country Mining Vision Guidebook

Voluntary and mandatory principles

EITI Standard

Equator Principles

IFC, Environmental and Social Performance Standards Performance Standards

Lima Declaration of Guidelines on Auditing Precepts, International Organization of Supreme Audit Institutions

OECD Action Plan on Base Erosion and Profit Shifting

Santiago Principles on Sovereign Wealth Funds

UN Guiding Principles on Business and Human Rights Reporting Standards

Policy manuals

Columbia Centre on Sustainable Investment, A Framework to Approach Shared Use of Mining-Related Infrastructure (2014)

CCSI, Mining Contracts: How to Read and Understand them  

EI Sourcebook (2016)

EI Sourcebook, Geodata for Development – A Practical Approach (2012)

ELAW, Guidebook for Evaluating Mining Project EIAs (2010)

IAIA, Social Impact Assessment: Guidance for assessing and managing the social impacts of projects (2015)

IBA, Mining Model Agreement (2011)

IFC, Ranking of Investment Promotion Agencies –Global Investment Promotion Best Practices (2012)

IM4DC, Transfer Pricing in Mining: An African Perspective (2014)

IMF, Guide on Resource Revenue Transparency (2007)

IMF, Fiscal Transparency Code (2014)

IMF, Fiscal Regimes for Extractive Industries: Design and Implementation (2012)

IMF, Fiscal Frameworks for Resource Rich Developing Countries (2012)

IMF, Administering Fiscal Regimes for Extractive Industries (2014)

IMF, Investing in Public Investment: An Index of Public Investment Efficiency (2011)

ISLP, Mining Contracts – How to Read and Understand Them (2014)

OECD, Action Plan on Base Erosion and Profit Shifting (2013)

OECD, Guidelines on Corporate Governance of State-Owned Enterprises (2005)

OECD, Transfer Pricing Comparability Data and Developing Countries (2014).

OECD, Thin Capitalisation: A Background Paper for Country Tax Administration (2012)

Public Expenditure and Financial Accountability (PEFA), Guidelines (2011)

UN-EU Partnership, Extractive Industries and Conflict: Toolkit and Guidance for Preventing and Managing Land and Natural Resources Conflict (2012)

WB, Diagnostic Framework for Assessing Public Investment Management (2011)

WB, Doing Business (2014)

WB, A practical guide to increasing mining local procurement in West Africa

WB, Mineral Rights Cadastre (2009)

WB, Mining Royalties: A Global Study of Their Impact on Investors, Government and Civil Society (2006)

WB, How to Improve Mining Tax Administration and Collection Frameworks – A Sourcebook (2013)

WB, Mining Together: large-scale mining meets artisanal mining – a guide for action (2009)

WB, Gender Dimension of Artisanal and Small-Scale Mining: A Rapid Assessment Toolkit (2012)

WBG (Office of the Compliance Advisor/Ombudsman), Participatory Water Monitoring: A guide for preventing and managing conflict (2008)

WBG (IEG), How to Build M&E Systems to Support Better Government (2007)