AMDC Artisanal and small scale mining Africa Mining Vision May 2016 Lilongwe Malawi

1. Case Study on the
Development of Mining Vision
in Lesotho
Communications Workshop
31 may-2 June 2016
Lilongwe, Malawi
Mrs Asha Kannan,
Senior Economics Advisor
UNDP, Lesotho

2. Outline
 Role of the Mining sector
 Process for design and implementation of CMV
 The Process it Followed & Stakeholder Consultation
 Principles of the CMV
 Obstacles overcome and Lessons Learned
 Key milestones and achievements
 Launch of the Minerals and Mining Policy
 Potential lessons learned for Malawi

3. Role of the Mining sector
 Mining sector identified as key economic enabler in the National Strategic
Development Plan 2012/13-2016/17
 It contributes around 7.7 % to GDP ( objective to increase to 10% of GDP)
 The sector employs around 3000 people
 It is a source of revenues for the Government Budget/ Fiscal sector.

4. Mining Sector’s Contribution to GDP
3.5%
4.3%
7.4%
8.5%
6.3%
5.8%
9.2%
6.6%
7.0%
7.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mining Sector Contribution to GDP

5. Mining Sector Policies in Lesotho
 Mines and Minerals Act (2005);
 Mines and Minerals (Amendment) Act (2014);
 Mines Safety Act (1981);
 Precious Stones Order (1970);
 Precious Stones (Kimberly Process) Regulations (2003);
 Precious Stones (Diamonds Dealer’s Licence Grant and Renewals) Regulations
(2004);
 Explosives Proclamation of 1959

6. Key Milestones and Achievements
 Lesotho signed the AMV in 2009
 Mining Policy Training in 2011
 Establishment of a full fledged Ministry of Mining 2012
 Request for technical support from UNECA/UNDP in 2012
 Agreed Programme design for Policy development –April 2013
 Launch of the Government intention.
 The Mining policy development process –July 2013 to July 2015

8. The Process Lesotho Followed & Stakeholder
Consultations
Launch of the intention of
Government (Task Force)
Scan of best practices
regionally and
internationally
Local scan of current
situation and literature
review
Presentation of Reports to the Task
Force and Identification of Key issues
–Strategies that forms draft policy
Validation of the Green
Paper by Task Force
Summary of
Green Paper and
Translation
Public, District &
Community
Consultations
Consolidation of
White Paper and its
validation
Completion of the draft
policy and presentation
to Cabinet
Consultation of
the Parl. NR
Committee

9. The Process Followed & Stakeholder
Consultation
 Wide and participatory multi-stakeholder engagement to create a
common understanding, interest and commitment to the CMV process.
 The CMV analytical process for the Lesotho mineral policy formulation
exercise used the STEEP Process (a diagnostic tool for building
consensus and prioritization). The STEEP process evaluates each issue
based on the following diagnosis which considers: social issues (S),
technological issues (T), economic issues (E), environmental issues (E)
and the policy environment pertinent to the sector (P).
 An Inter-Ministerial Taskforce ( all relevant Ministries, mining industry
players and NGOs formed part of it) on the policy making process
established .
 The multi-stakeholder group participated in the STEEP process which
developed inputs into the Green paper and validated the White paper.

10. Vision of the Minerals and Mining
Policy (MMP-Lesotho’s CMV)
Vision : “To provide for responsible and
globally competitive exploitation of the
country’s mineral resources in a manner
that results in sustainable socio-economic
benefits to the country.”

11. Principles of the CMV
 Embodies principles of transparency, equitable distribution and
responsible mining
 Sovereignty and ownership of mineral resources to vest in the Basotho
Nation.
 Transparency and accountability in all aspects of administering and
managing the country’s mining sector.
 Equitable, optimal and sustainable exploitation of the country’s mineral
resources.
 Upholding Human Rights, Gender equality, Environmental sustainability,
safety and occupational health standards.
 Domestic empowerment and integration of the Basotho Nation.
 Participatory and inclusive approach.

12. Key challenges addressed by the MMP
 Insufficient knowledge of Lesotho’s mineral resources,
 Gaps in principal mining legislation and its limited scope,
 Absence of socio-economic development goals,
 Update mineral sector governance standards,
 Cover mining fiscal and taxation issues,
 Address the lack of clear GOL policy on artisanal and small-scale mining
(ASM), value-addition, domestic empowerment, CSR guidelines and safety and
occupational health standards.
 Attain economic diversification through infrastructure development and
planned connectivity of mining sector to other economic sectors such as
agriculture, value-adding processing, tourism, etc

13. Objectives of the Government for the
Mining Sector
 To ensure that the mineral wealth contributes to the national economic and
social development.
 To mitigate the adverse social and environmental impacts of mineral
development.
 To ensure equitable access, transparency and public participation in the
sustainable development of the mining sector.
 To stimulate investment in the mining sector.

14. Obstacles overcome and Lessons Learned
 Political Commitment
 Multi -Stakeholders Consultations/Coordination
 Managing expectations
 Building Capacity- Ministry, NGO, Stakeholders
 Ownership of Policy
Lessons Learned
 The importance of creating awareness
 Inclusiveness for developing policies achieves good results
 Collaboration of 2 agencies: UNDP and UNECA
 Government ownership and alignment with national policies

15. Future priorities and challenges
 Capacity building for the Ministry of Mining
 Need for increasing limited financial resources and technical expertise, of the
Ministry for:
 Reforming the taxation regimes (to tax mining companies fairly).
 Support multi-stakeholder consultations in mining sector development .
 Support investment promotion in the mining sector.

16. Way forward
 Following the approval of the policy by GOL, the following steps were
presented, discussed and agreed in the stakeholder Meeting in July 2015:
 Plan to Launch
 Development of Implementation Strategy (road map and time frame)
 Review and development of a revised Legal and Regulatory Framework
 Review of and implementation of Institutional Reforms
 Policy Dissemination

17. Thank You
Kea Leboha