2014年-世界发展银行全球_Armenia___Sustainable_and_Strategic_Decision_Making_in_Mining_75页_2mb

Summary of the Sector Issues Paper: Sustainable and Strategic Decision Making in Mining for Armenia

Core Content

This Sector Issues Paper provides an in-depth analysis of the environmental and social implications of mining in Armenia and outlines strategies for sustainable and strategic decision-making. It is aimed at informing policy dialogue and guiding reforms in the mining sector to ensure that it contributes positively to economic growth while protecting the environment and enhancing social equity.

The paper emphasizes the need for integrating environmental and social considerations into the decision-making processes of the mining sector. It explores the use of policy tools such as Cumulative Impact Assessments (CIAs), Strategic Environmental Assessments (SEAs), and Strategic Environmental and Social Assessments (SESA) to improve governance and long-term outcomes in the sector. Additionally, it highlights the importance of valuing natural capital and ecosystem services in the context of mining development and outlines mechanisms for benefit-sharing at the local level.

Main Viewpoints

• Mining's Economic Role: The mining sector is a significant contributor to Armenia's economy, accounting for around 2% of GDP between 2000 and 2007, rising to 10% in 2008–2010. It plays a crucial role in exports, contributing over 55% of total goods exports in 2011. The sector is also a major recipient of foreign direct investment (FDI), with 45.6% of FDI in 2012.

• Environmental and Social Impacts: Mining has both positive and negative impacts. While it contributes to employment and infrastructure, it also poses risks to public health, ecosystems, and social equity. Environmental degradation and social inequality are major concerns, especially due to the long-term and often indirect nature of these impacts.

• Need for Sustainable Practices: The paper argues that without sustainable and strategic decision-making, the mining sector may lead to long-term environmental costs, social tensions, and inefficient resource management. It calls for the adoption of global best practices and tools to enhance the governance of the sector.

• Policy Gaps and Institutional Challenges: Despite the sector's importance, there are gaps in policy and institutional frameworks. Armenia lacks specific development plans for mining and has not fully integrated environmental and social considerations into its regulatory processes. The paper advocates for reforms in decision-making and the use of more comprehensive assessments.

Key Information

1. Economic Contributions

• The mining sector is a key driver of economic growth and export revenue in Armenia.
• It has contributed to around 17% of total industrial output in 2010 and 2011.
• The gross value of available mineral deposits in Armenia is estimated at over US$120 billion.
• Extraction costs for explored and preestimated reserves amount to around US$90 billion.

2. Policy and Institutional Framework

• The sector is regulated by at least 16 laws and the newly approved Mining Code.
• The Ministry of Nature Protection (MNP) and Ministry of Energy and Natural Resources (MENR) are the primary regulatory bodies.
• The sector is also influenced by other ministries and local institutions.

3. International Commitments

• Armenia is a signatory to the Aarhus Convention, which promotes transparency, public participation, and access to justice in environmental matters.
• It has ratified the Kiev Protocol on Strategic Environmental Assessment, which enhances environmental governance and decision-making processes.

4. Policy Tools for Sustainability

• Cumulative Impact Assessment (CIA): Used to evaluate the long-term and combined environmental and social impacts of mining activities.
• Strategic Environmental Assessment (SEA): A broader tool that supports strategic planning and helps integrate environmental considerations into policy and project design.
• Strategic Environmental and Social Assessment (SESA): A more comprehensive approach that includes both environmental and social impacts, particularly useful for long-term planning and community engagement.

5. Valuation of Natural Capital

• The paper introduces the concept of total economic valuation (TEV) and payments for environmental services (PES) as tools to quantify the value of natural capital and ecosystem services.
• These methods help in making more informed decisions by incorporating environmental costs and benefits into economic analyses.

6. Benefit-Sharing and Equity

• The paper emphasizes the importance of decentralized benefit-sharing mechanisms to ensure that local communities benefit from mining activities.
• It highlights the need for transparency and accountability in the distribution of royalties and other financial benefits.
• Foundation, Trusts, and Funds (FTFs) are suggested as mechanisms for more equitable benefit distribution.

7. Social Costs and Benefits

• Social costs and benefits are often externalities and difficult to quantify.
• These include long-term environmental degradation, health impacts, and inequality in benefit distribution.
• The paper underscores the importance of understanding and internalizing these costs for sustainable development.

8. Challenges and Recommendations

• The paper acknowledges the challenges in data collection and policy implementation.
• It recommends reforms in decision-making processes, including the adoption of SESA, strengthening of the Extractive Industries Transparency Initiative (EITI), and improving institutional capacity.
• The integration of social and environmental considerations into mining policy and practice is seen as essential for long-term sustainability and public trust.

Conclusion

This paper serves as a guide for the Armenian government, private sector, and civil society to improve the governance and sustainability of the mining sector. It outlines the importance of strategic planning, environmental and social assessments, and transparent revenue management in achieving shared prosperity and long-term economic and environmental benefits.