August newsletter

Engaging Philippine communities with extractives data

In the mineral-rich provinces of Palawan and Cebu in the Philippines, a new data tool is transforming how communities engage with mining revenues and projects. Discover the journey of the PREDIC Tool from prototype to becoming an enabler of transparency and accountability. ?

Data in action: Winner of the EITI datathon, the PREDIC Tool is designed to support communities by providing insights into the revenues to which they are entitled, tracking whether they’ve received the correct amounts, and identifying where the benefits are being allocated. In its pilot phase, local officials in Toledo City uncovered discrepancies in revenues owed, prompting a deeper investigation by the national government.

Learn more about the PREDIC tool

Unveiling corruption risks in Togo's extractive sector

Togo is taking steps to combat corruption in its mining sector. Working with the civil society organisation ACOMB, EITI Togo has used a corruption diagnostic tool to uncover significant vulnerabilities in how the sector is managed. ?

Key findings: The analysis revealed three critical issues: a lack of transparency in state ownership of mining companies, questionable equipment rental practices, and confusion over who owns and controls mining companies. These can pose potential corruption risks and underscore the need for rigorous verification processes. ?

Plugging gaps: To address these issues, Togo’s authorities are verifying the state’s participation in mining companies, assessing money laundering risks and centralising beneficial ownership management. These measures are crucial to building a transparent and fair extractive industry, ensuring that the country’s resources benefit all its citizens.

A reformer’s vision for Zambian mining

Zambia’s journey towards beneficial ownership transparency is transforming mining sector governance. Chewe Chilufya, a dedicated reformer at the Patents and Companies Registration Agency (PACRA), is a key force driving these crucial changes. Read his story.

Connecting the dots: Beneficial ownership reforms are crucial for combatting corruption and ensuring that the benefits of mining are shared. With support from the Opening Extractives programme, Zambia is making strides in digitising ownership data, integrating it with other government systems, and enhancing its legislative framework. This shift will enable stronger public accountability of the country’s important mining sector, which accounts for over 70% of Zambia’s total exports.

Quoted: “If it is properly implemented, it will stamp out corruption,” says Chilufya. “Companies do not think by and of themselves but through the natural persons who own and control them.”

Building trust in Latin America’s extractives

Rich in minerals, countries in Latin America and the Caribbean are central to the global energy transition, but face challenges like environmental degradation and governance issues. The 2023 EITI Standard offers a path forward.

Value add: Transparency advocates in the region highlight that the EITI Standard strengthens anti-corruption efforts by providing critical data on mining projects, including company ownership. This transparency helps address the negative socio-environmental impacts of unclear ownership structures. But there is a need for better access to ownership data and expanded reporting on broader community impacts, not just royalties.

Looking ahead: While the initiatives offer a roadmap for reform, achieving full transparency and accountability will require ongoing collaboration, capacity building and effective implementation to ensure sustainable development that benefits all stakeholders, including communities near mining sites.

In other news

Elevator pitch: What’s the value of the EITI? Stakeholders from government, industry, civil society and multilateral organisations each bring unique perspectives on the question. Watch this video to learn what representatives have to say, courtesy of the Swiss government. ?

United Nations: At the United Nations high-level panel on critical energy transition minerals in July, EITI Executive Director Mark Robinson emphasised the urgent need for greater transparency in mineral trades and resource-backed loans. Here are some key takeaways.

Trinidad and Tobago: Social expenditures account for 41% of oil and gas revenues in Trinidad and Tobago. A new model developed by Trinidad and Tobago EITI (TTEITI) demonstrates how declining revenues could threaten vital funding for social programmes.

Beneficial ownership: In July, over 180 EITI stakeholders across Africa gathered virtually to discuss strategies for embedding beneficial ownership data in licensing processes to reduce corruption risks. The topic was also a key theme in our mission to Ghana last month, which brough together over 80 stakeholders from government and other entities.

SOEs: The EITI recently convened in Bogotá, gathering more than 50 representatives from state-owned enterprises (SOEs), government and civil society. The focus was on enhancing the understanding and analysis of commodity trading practices and exploring how EITI implementation can bolster SOE governance across the Latin America and Caribbean region.

Peer learning: More than 60 stakeholders from Angola and Mozambique met in Maputo to share best practices on EITI implementation, with participation from government, companies, civil society and other entities.

Responsible mining: Atkinsons Bullion, a UK-based company that deals in precious metals, offers a short guide on socially responsible mining in emerging economies, highlighting ethical mining practices and working conditions.

Stakeholder views

We are seeking stakeholders views on progress in EITI implementation and stakeholder engagement in Angola, Peru and Ukraine, which will undergo Validation against the EITI Standard.

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