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The Marlin Mine HRIA

The Marlin Mine HRIA. Economic and Social Investment. Indicators. 1. Have economic investments contributed to the fulfilment of human rights ? 2. Has social investment contributed to the fulfilment of human rights ?

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The Marlin Mine HRIA

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  1. The MarlinMine HRIA Economic and Social Investment

  2. Indicators • 1. Haveeconomicinvestmentscontributedto the fulfilment of human rights? • 2. Has social investment contributedto the fulfilment of human rights? • 3. Have social investmentsmitigated negative impactsthatcouldaffect human rights?

  3. Economic Investments Haveeconomicinvestmentscontributedto the fulfilment of human rights?

  4. Forms ofEconomicContributions • Direct The economiccontributionsaredirectlyaffecting the livesof the membersof the localcommunity • Employment • Services • Contracting • Indirect The economicinvestments go through the central and localgovernment, which is responsible for theirusetowards the fulfilment of the population’s human rights • Tax • Royalties

  5. MarlinMineKeyEconomicContributions2005-2008 • Corporate incometaxes • Royalties • Sipacapareserve • Localpayroll • Payroll social security tax (corporatecontribution) • Payroll social security tax (employeecontribution) • Localpurcashes • ValueAdded Tax (VAT) • Womenownedcompanies-local area

  6. Montana’s Economic Contributions • Royalties paidto central and municipal government • Voluntarypaymentdirectlyto the SipacapaMunicipality • Renouncementof the tax exemption status signedwith the MinistryofEconomy • Covering of the taxesdue by local non-formalizedcontractors • Voluntaryfundingto San Miguel municipal development plans

  7. Human RightsContext • Right towater – health – education • Right towork – adequate standard ofliving • Right tofair remuneration • Right tofree, prior and informedconsent –Adequate prior consultationwith the indigenouscommunities, ILO Convention N. 169, Art. 15(2)

  8. ResponsibilitytoFulfill Human Rights • CSR - Respect Human Rights, GP 15 • States’ obligation toprotect, respect and fulfil ESCR and the MDGslocaly and nationally • The distribution ofMontana’seconomicflows rests solelyupon the central and localgovernment • Montana’s contribution: • Increasing the resources • Encouraging Transparency • Improve government’s capacity to effectively use funds (through negotiations)

  9. Findings • Fiscalcontribution • Localizing benefits – institutional strengthening • The right to fair remuneration • Economiccontributiononly in indirect relationship to the fulfilment ofrights • Lack of monitoring the impacts, both positive and negative • Poor governmental leverage of taxes and royalties to the fulfilment of HR

  10. The civil societyimput • 2010 Cost/Benefit analysis by TUFT University • The shareof profit from the minereceived by the government is small, just 42% of total mining revenues, which is ”substantiallybelow best practice in global mining operations”. • UN Special Rapporteur James Anaya Report • Right to prior consultation with the indigenous communities • Potential environmental and physical well-being adverse impacts

  11. Social Investment Social Investment

  12. Social investment? • Local social development and related programs (e.g. education, health care) • Intended to provide benefits to local populations in areas with limited government capacity • Incentive from a mining company to obtain acceptance from local communities

  13. Monitoring • Data came from AMR and ESIA • Lack of clear financial accounting of social investments • Not possible to quantify development and human rights impacts other than anecdotally • GP 20: effective tracking

  14. Montana’s social investments • Two main funding channels: the Sustainable Development Department (SDD) and the Sierra Madre Foundation (FSM): • 115 community development projects • Infrastructure, health, education and drinking water systems • Total investment of 1,1 million USD between 2004 and 2008

  15. Human Rights context • Right to health (e.g. ICESCR Art.12) • Right to education (ICESCR Art.13) • Right to work and an adequate standard of living(ICESCR Arts. 6, 11) • Indigenous peoples’ rights (ILO 169)

  16. Findings • Montana has enhanced rights: Education Health Water • BUT with limitations to being able to quantify these

  17. Mitigationof negative impacts in Social Investments Referenceto the negative findings in HRIA Assessmentofthese negative findings : Matterofunmetexpectations or absenceof policy for social investments? Meaningofdutytorespect HR in the contextof social rights. (GP 16 & 18)

  18. Sourcesof HR obligation tomitigate negative impacts • International Bill of Human Rights • ILO Convention 169 • ESIA and IPDP

  19. Problems of Montana in mitigating negative impacts • No identificationofactual negative impacts in its initial ESIA (consequently no policy for social investments). • No identificationofactual negative impacts in itsongoingduediligence ( consequentlycurrentinvestmentsused for conflict management)

  20. Negative impactsshould be in ESIA • Absenceofculturalassessment • Lack of support for re-establishmentof land sellers. • Identificationof problems withwatersources • Cracked houses • Public safety and healthissues.

  21. Ongoing Negative impacts • Inflation • Negative consequences for indigenousgroups • Insecure social investments • Not sustainableinvestments

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