EITI countries must now publish all exploration mining contracts

Dec 22, 2023 News

Kaieteur News – The Extractive Industries Transparency Initiative (EITI) now requires all implementing countries to publish all exploration mining contracts.

Following a two-year campaign by Kaieteur News, the government in May this year finally made mining agreements and licenses issued for the extractive sector. This however did not include exploration contracts for the major gold companies for instance presently in Guyana.

On the Ministry of Finance website, five mining contracts were published. They include, Aurora – Mineral Agreement; Guyana, GGMC and Reunion Manganese Inc. – Mineral Agreement; Guyana, GGMC, First Bauxite & Guyana Industrial Minerals Inc. – Mineral Agreement; Karouni – Mineral Agreement and Toroparu – Mineral Agreement.

An additional 13 Licences granted to the mining companies were also made public. They include Atlantic Golds Inc; Bauxite Company of Guyana Inc. 2006; Bauxite Company of Guyana Inc. 2010; Bauxite Company of Guyana Inc. 2012; Bosai Minerals Group Guyana Inc. 03 2004; Bosai Minerals Group Guyana Inc. 04 2004; Bosai Minerals Group Guyana Inc. 05 2004; Guyana Goldfields Inc.; Guyana Industrial Minerals Inc.; Guyana Manganese Inc. ML 022022; Guyana Mining License G-1000 000; Ontario Mining License and Troy Resources Pharsalus.

EITI is focused on promoting the understanding of natural resource management, strengthening of public and corporate governance and providing the data to inform greater transparency and accountability in the extractive sector.

In keeping with its objective, the organization has issued new standards that compels the release of exploration agreements for oil and gas and minerals.

The 2023 Standards at Requirement (2.4) (a) states: “…Implementing countries are encouraged to publicly disclose any contracts and licenses that provide the terms attached to the exploitation of oil, gas and minerals, as well as material exploration contracts…”

It was explained that the objective of this requirement is to ensure the public accessibility of all licenses and contracts underpinning extractive activities, at least from 2021 onwards, as a basis for the public’s understanding of the contractual rights and obligations of companies operating in the country’s extractive industries. The requirement further aims to ensure that contract disclosure is contributing to stakeholders’ ability to monitor compliance with contractual obligations.

The 2023 EITI Standard places heightened emphasis on contract transparency. In September, it was announced that addition to disclosing main contracts and annexes, countries are now encouraged to disclose significant exploration contracts and agreements. These must outline the terms of the sale of the state’s share of production or other in-kind revenues, and contracts outlining infrastructure and barter provisions, including resource-backed loan agreements.

Moreover, countries are also expected to disclose contracts mandating social and environmental payments. Such disclosures, according to the EITI provide citizens with a more comprehensive understanding of whether companies fulfil their contractual obligations beyond the stipulations in the main contracts.

Notably, mineral-rich Guyana became a member of EITI in October, 2017.

About the EITI

Extractive Industries Transparency Initiative (EITI) was first announced at the World Summit on Sustainable Development in Johannesburg in 2002 (the Earth Summit 2002) and was officially launched in London in 2003. EITI is currently being implemented in 57 countries in Africa, Asia, Europe, the Pacific, North and South America, and the Caribbean.

The EITI Standard sets out the requirements which countries need to meet in order to be recognised, first as an EITI implementing country and subsequently assessed against the EITI Standard. The Standard is overseen by the EITI Board, which comprises members from governments, extractive companies, and civil society.

contracts, Exploration, Extractive Industries Transparency Initiative (EITI)., licenses, Mining

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EITI countries must now publish all exploration mining contracts

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