UNITED NATIONS
ECONOMIC COMMISSION FOR AFRICA
UNITED NATIONS
DEVELOPMENT PROGRAMME
METHODOLOGY AND ACTIVITY FLOW FOR DEVELOPING THE MINING AND MINERALS POLICY
FOR THE GOVERNMENT OF THE KINGDOM OF LESOTHO
March 2013
Table of Contents
1
BACKGROUND ....................................................................................................... 3
2
OVERALL OBJECTIVE ............................................................................................ 4
3
METHODOLOGY ..................................................................................................... 4
3.1
Preparation of local and international background reports ................................. 4
3.2
Pre-workshop preparations ................................................................................ 6
3.3
The first workshop .............................................................................................. 6
3.4
Stakeholder consultations .................................................................................. 6
3.5
The second workshop ........................................................................................ 7
3.6
Final review meeting .......................................................................................... 7
4
MANAGEMENT OF THE PROCESS ....................................................................... 7
a.
Ministry of Mining ............................................................................................... 7
b.
UNECA and UNDP ............................................................................................ 7
c. Southern Africa Resource Watch (SARW) ............................................................ 7
d.
5
Consultants ........................................................................................................ 8
ACTIVITY FLOW AND ESTIMATED COSTS .......................................................... 8
Annex 1 – Work flow of the Lesotho Mining and Minerals Policy project......................... 9
Annex 2 – Cost estimates for developing the Lesotho Mining and Minerals Policy ...... 11
2
1
BACKGROUND
The Government of the Kingdom of Lesotho, through the recently created Mining Ministry,
requested for technical assistance from the United Nations Economic Commission for Africa to
develop a National Mining and Minerals Policy (NMMP). The policy is expected to support
sustainable socio-economic growth and development, as well contribute to alleviating poverty.
This is in line with the aspirations of the country’s National Strategic Development Plan
(2012/13 to 2016/17), and Vision 2020 upon which the Strategy is founded. The NSDP
specifically identifies mineral exploitation as one of the main accelerators of growth and
development, through increased tax and export receipts, and a higher contribution to GDP.
In response, the Economic Commission for Africa developed a technical proposal to guide the
Lesotho policy development process. ECA also mounted a scoping mission to Maseru in
December 2012 to develop a first hand understanding of the request as well as agree on roles
and responsibilities, and methodologies to be employed. Following the mission, the Lesotho
Minister of Mining submitted a detailed request for Technical Assistance to the Executive
Secretary of ECA, outlining resource requirements for the assignment. The Minister’s request
underscored the urgency of undertaking the assignment to ensure that Lesotho fully benefits
from the exploitation of its mineral resources. The Executive Secretary has since responded to
the Minister’s request, reaffirming ECA’s commitment to developing the Lesotho Mining and
Minerals policy, and to commence the project as soon as possible.
Parallel to the above processes, the Ministry separately discussed possible technical assistance
with the United Nations Development Programme (UNDP) and the World Bank; this assistance
includes mineral policy development, among other needs. The Government has expressed the
desire for collaboration between these organisations with UNECA in the policy making process.
Exploratory discussions, to jointly execute the project, have been held between UNECA and the
World Bank, on the one hand, and with UNDP, on the other. Broad agreement has been
reached with UNDP to execute the project together. A virtual planning meeting with UNDP has
discussed possible roles and responsibilities and these are reflected in this proposal.
Both UNECA and UNDP see the Lesotho policy project as a test case in the wider context of joint
work to implement the Africa Mining Vision (AMV) through the African Minerals Development
Centre. This is currently under establishment at ECA. The AMV argues for a mineral sector
anchored around long term economic and social development to support human development.
To this end, UNDP has developed a Strategy for “Harnessing Extractives for Human
Development” to principally address Africa’s intractable poverty and the achievement of the
MDGs. The project will be migrated to the AMDC once the latter is operational.
Clearly therefore both the UNDP and UNECA realise the importance of the Lesotho project and
have agreed to pool their comparative strengths to realise the project objectives. However,
UNDP and UNECA are not the only role players in this area. The Southern Africa Resource
Watch has been active in community work in Lesotho and has agreed to be part of the project.
The African Development Bank too has expressed the desire to participate in the project
3
pending the outcome of their internal processes. The World Bank could also participate once
their own internal processes are concluded. It is clear, therefore, that the Lesotho project has
the potential for much wider collaboration. This augurs well as beyond policy making, there will
be need to develop and implement the legal and regulatory framework. This is likely to require
a much broader integrated approach to development in Lesotho, as well as wider partnerships.
Besides, a number of countries have expressed the desire to develop AMV compliant policy,
legal and regulatory frameworks. The broader partnerships should hence prove useful.
2
OVERALL OBJECTIVE
The overall objective of the assignment is to assist the Government of the Kingdom of Lesotho
to develop a Mining and Minerals Policy to provide a strategic framework for developing the
country’s minerals sector. The Policy should be consistent with the Government’s overall
strategic policy objectives outlined in Vision 2020 and the National Strategic Development Plan.
Thus the policy should contribute to sustainable economic growth and development and the
alleviation of poverty. The Policy should also be consistent with the principles of the AMV and
support broader economic and social development objectives.
3
METHODOLOGY
The methodology outlined below has been shared with, and agreed to, by the Lesotho
Government. Its main principles are that the policy making process is transparent and fully
participatory, and includes broad stakeholder consultations. The process is hence rooted in
collective national ownership. The proposed methodology has successfully been employed in
the development of the: Malawian Mining and Minerals Policy white paper1; the Namibian
Energy, as well as Mining and Minerals Policies; and the South African Energy, and Mining and
Minerals Policy white papers. The main steps in the methodology (see Figure 1) are:
3.1 Preparation of local and international background reports
Two study reports will be prepared as inputs into the consultative workshops. These are the:
Local scan - this is essentially a detailed analysis of the national economic and social landscape,
including attributes of the mineral sector. These are: geological potential; current mining
operations; relevant policies and Acts governing the sector; its place in the national economic
and social development plans; as well as the challenges the sector faces. This level of situational
analysis requires intimate local level knowledge and is probably best undertaken by a local
Consultant under UNDP’s leadership. The work is likely to require inputs from several local
experts.
1Used
by the Minerals and Energy Policy Centre in South Africa
4
Figure 1- Methodology for developing the Lesotho Mining and Minerals Policy
Best practices scan,
regionally &
internationally
Local Scan of
current situation,
literature Survey
National Economic Scan
Working Group Workshop 1 to identify key issues based on
diagnosis of documents; SWOT and scenario analysis to develop
draft policy solutions using STEEP for input into Green Paper
Multi-Stakeholder Workshops to provide feedback to the
Government Green Paper
Working Group Workshop 2 to provide inputs into the draft
white paper and develop strategy for implementing the Policy
Draft White Paper on
Minerals and Mining Policy
Final Review and
presentation to Government
Regional and international report – this will review global mineral development trends and
current best practice including: policy and legislative trends; investment climate and legal
and regulatory frameworks; and community, environmental and social development trends.
The report will also review relevant sub regional (SADC) and continental (Africa Union)
strategies of potential influence on the Lesotho Mining and Minerals policy. The main aim is
to identify key external drivers to the sector and their likely impact on Lesotho’s minerals
sector. UNECA will lead the regional and international scans.
3.2 Pre-workshop preparations
The key initial task is to establish a representative stakeholder working group of about 40
people from different constituencies. This should include representatives from: the
Ministries of Mines, Economic Development, Finance, Environment, and Industry; research
and academic organisations; the private sector; communities affected by mining;
NGOs/CSOs; and small scale miners. The reports from the local and international scans will
be shared with the working group for review before the First Workshop to facilitate their
effective participation. Ideally, each stakeholder group should prepare a position paper for
the first workshop.
3.3 The first workshop
The first workshop aims to build consensus on a range of diverse views on key issues and
challenges confronting the sector. The workshop should identify solutions to these
challenges which should then form part of the initial draft policy (green paper). The main
elements of the workshop are:
Situation analysis – the Working Group will review the domestic and international reports,
and against a SWOT analysis, examine both the internal and external environments to
match the external threats and opportunities with internal weaknesses and strengths. A
STEEP analysis (of social, technological, economic, environmental and political issues) will
be used to identify the major constraints facing the sector.
Scenario analysis - scenario analysis on possible futures will help identify new opportunities
and threats. It will examine how key issues are likely to behave in an uncertain future. This
is important for identifying uncertainties in the future, generating new ideas, and adapting
to change in light of emerging opportunities and threats. It is also useful for generating and
testing the robustness of policy intervention strategies.
First draft of policy statements - This will involve the consolidation of the key issues
identified and the development and prioritisation of solutions to them. The solutions so
developed will form the basis of the first draft policy statements.
The first workshop will require two facilitators, one of whom is conversant with scenario
planning. It is also proposed that UNDP takes the lead in organising both the first and
second workshops.
3.4 Stakeholder consultations
The first draft policy document will be circulated to a wide stakeholder audience to solicit
written inputs. The draft will also be subjected to regional and district level workshops to
obtain inputs, comments and recommendations. These will be incorporated into a second
6
draft policy document, which will be circulated to the Working Group prior to a second
workshop. All in all, ten consultative workshops are planned.
3.5 The second workshop
The second workshop will further review, distil and consolidate the views, comments and
suggestions from the stakeholder for inclusion into the draft policy. The outcome of the
workshop will be a third draft Mining and Minerals policy (draft White Paper).
The workshop will also develop strategies or a Strategic Framework for the implementation
of the Mineral Policy. The Strategic Framework will be used for developing an
Implementation Plan.
3.6 Final review meeting
The third draft Mining and Minerals Policy document, and the Strategic Framework, will be
reviewed and validated by a selected small group of stakeholders prioir to presentation to
Cabinet.
4
MANAGEMENT OF THE PROCESS
a.
Ministry of Mining
The Ministry of Mining will need to establish a Mineral Policy and Strategy Task Force,
preferably under the Chairmanship of a senior member of Staff of the Ministry. The task
Force will oversee and manage the policy development process on behalf of Government
and will be responsible for all the deliverables arising from the process. This includes the
responsibility of briefing Government regularly, organizing regular project review meetings
by the Task Force itself, organizing stakeholder meetings, ensuring documents are
dispatched to stakeholder meetings, processing and translating documents and generally
providing secretariat services to the process. The Mineral Policy and Strategy Task Force
should ideally meet once every month.
b.
UNECA and UNDP
The United Nations Economic Commission for Africa (UNECA), through the African Minerals
Development Centre (AMDC), will be the overall Project Manager for the assignment, and
will work with the ECA Sub Regional Office for Southern Africa and the United Nations
Development Programme (UNDP) Office in Maseru. UNECA and UNDP will provide technical
backstopping to the Government’s Mineral Policy and Strategy Task Force as well as recruit
and supervise the consultants on behalf of the project.
c.
Southern Africa Resource Watch (SARW)
7
SARW has been working with stakeholders in Lesotho on various initiatives and have
developed networks useful to the project. SARW will provide networking capacity and
supervision of the stakeholder engagement processes.
d.
Consultants
Local consultants will be required to prepare the local background report on Lesotho.
Workshop 1 will require a Facilitator (main Consultant to the project) and note takers, as
well as a person with scenario planning skills. Workshop 2 will just require the Facilitator
and his team. All the stakeholder and community workshops will require a Facilitator and
note takers. The Lesotho background document will require inputs from several people
knowledgeable in aspects of the Lesotho mining sector (eg a geologist, mining lawyer,
environmental consultant, HR consultant, etc) ECA will provide support to prepare the
international and regional scans.
5
ACTIVITY FLOW AND ESTIMATED COSTS
Annex 1 shows a work flow (Gantt chart) and preliminary schedule for developing the
Lesotho Mining and Minerals Policy. The work flow assumes that the work will commence in
April 2013 as requested by the government of the Kingdom of Lesotho. Annex 1 show that
the project is likely to take about eight months to execute. The work flow has yet to be
optimized; hence this period is a preliminary estimate. Based on Annex 1, the key
milestones are the delivery of the draft Green Paper around about July 2013, and the draft
White Paper at the end of December, 2013.
The estimated budget for the project is USD 330,000. This budget has been distributed
among the three main partners; namely the Government, UNECA and UNDP. The budget
mainly includes project management costs, extensive stakeholder consultation processes,
hire of consultants and reporting costs. The budget will need to be agreed to by the
partners prior to the commencement of the project.
8
Annex 1 – Work flow of the Lesotho Mining and Minerals Policy project
10
Annex 2 – Cost estimates for developing the Lesotho Mining and Minerals Policy
ACTIVITY DESCRIPTION
Freq Quantity
Unit cost
USD
Days
Travel
USD
Total
USD
Financing
source
1
Project management costs
1.1
Establish project task force
Govt
1.2
Maintain project secretariat
Govt
1.3
Attend project launch
1
3
100
3
3000
3900
ECA
1.4
Attend project review meetings
8
3
100
3
24000
31200
ECA
1.5
Present Green Paper to Government Task Force
1
3
100
3
3000
3900
ECA
1.6
Present revised policy document to Government Task Force
1
3
100
3
3000
3900
ECA
1.7
Present draft White Paper to Government Task Force
1
3
100
3
3000
3900
ECA
1.8
Present final White Paper to Government Task Force
1
3
100
3
3000
3900
ECA
Sub-total
2
2.1
2.1.1
50,700.00
Prepare background reports
Prepare local scan
Lead Consultant (Economist)
1
1
300
30
9000
UNDP
2.1.2
Geologist
1
1
300
15
4500
UNDP
2.1.3
Mining consultant
1
1
300
15
4500
UNDP
2.1.4
Mining lawyer/tax specialist
1
1
300
15
4500
UNDP
2.1.5
Environmental specialist
1
1
300
15
4500
UNDP
1
1
2.2
Prepare regional and international scan
Sub-total
3
3.1
ECA
27,000.00
Convene first stakeholder meeting
Circulate agenda and working document
Govt
11
3.2
Secure workshop venue
1
1
706
2
1412
Govt
3.3
DSA for participants
1
50
100
5
25000
UNDP
3.4
Participation by ECA Secretariat
1
3
100
6
4800
ECA
3.5
Hospitality (lunch and tea)
1
100
31
5
15500
Govt
3.6
Communications and transport
5000
Govt
3.7
Prepare working document (Lead Project Consultant/Facilitator)
3.8
Service workshop
3000
1
1
600
5
3000
UNDP
3.8.1
Lead Project Consultant/Facilitator
1
1
600
5
3000
UNDP
3.8.2
Note takers
1
2
200
5
1000
UNDP
3.8.3
Scenario Analyst
1
1
500
5
2500
UNDP
3.8.4
Note takers
1
2
200
5
1000
UNDP
3.8.5
Travel and DSA for facilitators
1
6
100
5
7000
UNDP
4000
Sub-total
69,212.00
4
Prepare first draft policy document
4.1
Collate outputs from first workshop
1
1
600
5
3000
UNDP
4.2
Prepare draft Green Paper
1
1
600
5
3000
UNDP
4.3
Present draft Green Paper to Government Task Force
1
3
100
3
3900
ECA
3.5
Edit, translate and print draft Green Paper
Govt
Sub-total
5
3000
9,900.00
Convene regional consultative workshops
5.1
Circulate draft Green Paper
5.2
Advertise/publish notices of workshops
5.3
Secure workshop venues
5.4
Service consultative workshops
Govt
Govt
1
10
706
3
21180
Govt
5.4.1
Workshop Facilitator
1
10
300
3
9000
Govt
5.4.2
Note takers
1
20
200
3
12000
Govt
12
5.5
Participation by ECA Secretariat
1
10
100
3
5.6
UNDP participation
1
10
100
3
10000
Sub-total
6
ECA
3000
UNDP
58,180.00
Prepare second draft policy document
6.1
Collate outputs from workshops (Facilitators)
1
10
300
5
6.2
Prepare second draft policy document (Lead Project Consultant)
1
1
600
5
6.3
Present second draft policy document to Government Task Force
1
3
100
3
3000
Sub-total
7
13000
15000
Govt
3000
UNDP
3900
ECA
21,900.00
Convene second stakeholder meeting (WG)
7.1
Circulate agenda and draft policy document
Govt
7.2
Secure workshop venue
1
1
706
2
1412
Govt
7.3
DSA for participants
1
50
100
3
15000
ECA
7.4
Participation by ECA Secretariat
1
3
100
4
4200
ECA
7.5
Hospitality (lunch and tea)
1
100
31
5
15500
Govt
7.6
Communications and transport
5000
Govt
7.7
Service workshop
3000
7.7.1
Lead Project Consultant/Facilitator
1
1
600
3
1800
UNDP
7.7.2
Note takers
1
2
200
3
600
UNDP
7.7.3
Travel and DSA for facilitators
1
3
100
4
4200
UNDP
3000
Sub-total
8
47,712.00
Prepare draft White Paper
8.1
Collate outputs from second workshop (Lead Project Consultant)
1
1
600
5
3000
UNDP
8.2
Prepare draft White Paper
1
1
600
5
3000
UNDP
8.3
Present draft White Paper to Government Task Force
1
3
100
3
3900
ECA
Sub-total
9
3000
9,900.00
Convene review/validation meeting
13
9.1
Circulate agenda and draft White Paper
Govt
9.2
Secure workshop venue
1
1
706
3
9.3
Participation by ECA Secretariat
1
3
100
4
9.4
Hospitality (lunch and tea)
1
30
31
5
9.5
Communications and transport
9.6
Service review meeting
3000
2118
Govt
4200
ECA
4650
Govt
5000
Govt
9.6.1
Lead Project Consultant/Facilitator
1
1
600
3
1800
UNDP
9.6.2
Note takers
1
2
200
3
600
UNDP
9.6.3
Travel and DSA for facilitators
1
3
100
4
4200
UNDP
1
1
600
5
3000
UNDP
9.7
Compile final White Paper (Lead Project Consultant)
3000
Sub-total
10
25,568.00
Present final White Paper to Government Task Force
10.1
ECA participation
1
3
100
4
3000
4200
ECA
10.2
UNDP participation
10.3
Hospitality (lunch and tea)
1
3
100
4
3000
4200
UNDP
1
10
31
5
1550
Govt
Sub-total
9,950.00
GRAND TOTAL
330,022.00
ECA Contribution
Government Contribution
UNDP Contribution
107,800.00
114,322.00
107,900.00
14