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Community development agreements between natural resource firms & stakeholders - brief on good practices

Author: Jennifer Loutit, Jacqueline Mandelbaum and Sam Szoke-Burke, Columbia Center on Sustainable Investment (USA), Published on: 16 March 2016

"Emerging Practices in Community Development Agreements", Feb. 2016

A Community Development Agreement or CDA can be a vital mechanism for ensuring that local communities benefit from large-scale investment projects, such as mines or forestry concessions. In formalizing agreements between an investor and a project-affected community, CDAs set out how the benefits of an investment project will be shared with local communities. In some countries CDAs are required by domestic legislation; in others, they are entered into voluntarily. The most effective CDAs are also adapted to the local context, meaning that no single model agreement or process will be appropriate in every situation. Nonetheless, leading practices are emerging which can be required by governments or voluntarily adopted by companies and communities. This brief reviews existing research, as well as available agreements from the extractive sector in Australia, Canada, Laos, Papua New Guinea, Ghana and Greenland, to highlight these leading practices.

[refers to agreements between communities and Argyle Diamond Mines (part of Rio Tinto), Newmont, Diavik (joint venture Rio Tinto & Aber Diamond Mines), Porgera (joint venture Barrick Gold & Mineral Resources Enga), Tolukuma Gold Mines (part of Petromin PNG), Raglan (part of Glencore)]

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Related companies: Aber Diamond Diavik (joint venture Rio Tinto & Aber Diamond Mines) Glencore Newmont (formerly Newmont Goldcorp) Porgera (joint venture Barrick Gold & Mineral Resources Enga) Rio Tinto