Real-World Case Studies of Mining Transparency

Below are three case studies of mining transparency in Zimbabwe, Ghana and South Africa.

1. Zimbabwe: Community Trusts and Mining Revenue Transparency

Background:

  • Zimbabwe established Community Share Ownership Trusts (CSOTs) in 2013 to ensure local communities benefit directly from mining activities.
  • Mining companies are required to allocate 10% of their shareholding to CSOTs, with profits funding local development projects (e.g., roads, clinics, schools, water infrastructure).

Challenges:

  • Many CSOTs have faced operational setbacks: mismanagement of funds, poor governance, and lack of tangible community benefits.
  • Widespread allegations of corruption and misuse of funds have undermined trust in the initiative.
  • The government has recently announced reforms to strengthen oversight, transparency, and support for CSOTs, including comprehensive audits and clearer regulations.

Key Lessons:

  • Transparency and oversight are critical for ensuring community benefit.
  • Public disclosure of mining agreements and financial flows is necessary to build trust and accountability.
  • Effective governance structures and regular audits are essential to prevent mismanagement and corruption.

2. Ghana: Artisanal and Small-Scale Mining (ASM) Reforms

Background:

  • Ghana’s ASM sector is a significant source of employment and local economic activity but has been associated with environmental degradation and informality.
  • Recent reforms have focused on making ASM more productive, equitable, and environmentally responsible.

Key Initiatives:

  • Multi-stakeholder dialogues involving government, miners, companies, NGOs, and academia have developed a roadmap for responsible ASM.
  • Priorities include:
    • Streamlined licensing and operational processes.
    • Improved access to geological information and finance.
    • Recognition and empowerment of women and vulnerable groups in ASM.

Key Lessons:

  • Collaboration among diverse stakeholders is vital for sector reform.
  • Access to information and simplified regulatory processes help formalize and improve ASM.
  • Empowering marginalised groups, especially women, strengthens sector legitimacy and sustainability.

3. South Africa: Activism and Mine Closure Policy

Background:

  • South Africa faces a legacy of improper mine closures, with many communities left exposed to environmental hazards and socio-economic decline after mining ends.

Key Issues:

  • Regulatory failures and corporate impunity have led to abandoned mines and unfulfilled closure obligations.
  • Communities and activists report:
    • Lack of recognition as stakeholders.
    • Insufficient consultation and consent.
    • Poor planning and implementation of closure processes.

Civil Society Response:

  • Activists and community organizations have documented the impacts and advocated for policy reforms.
  • Calls for:
    • Stronger legal frameworks.
    • Recognition of community rights.
    • Transparent, participatory closure planning.

Key Lessons:

  • Community engagement is essential in mine closure planning.
  • Robust regulation and enforcement are needed to prevent abandonment and ensure post-mining development.
  • Civil society activism can drive policy change and accountability.

Summary Table: Case Study Comparison

CountryFocus AreaMain ChallengesKey Lessons
ZimbabweCommunity Trusts/Revenue SharingMismanagement, corruptionOversight, audits, clear rules
GhanaASM ReformsInformality, exclusionStakeholder collaboration, info
South AfricaMine Closure/ActivismAbandonment, weak regulationCommunity rights, strong laws

These case studies and the workshop approach provide a practical foundation for understanding and advocating for mining revenue transparency and governance reform in Africa.


Additional Reading Materials

  1. https://www.business-humanrights.org/en/latest-news/zimbabwe-govt-announces-major-reforms-to-revive-community-share-ownership-trusts-aimed-at-improving-oversight-transparency-support-so-communities-benefit-from-natural-resource-extraction/
  2. https://pwyp.org/wp-content/uploads/2020/09/Benefit-Sharing-case-study_Zimbabwe-EN.pdf
  3. https://www.iied.org/leaders-join-forces-for-productive-equitable-artisanal-small-scale-mining-ghana
  4. https://www.lhr.org.za/lhr-news/press-statement-new-report-on-the-state-of-improper-mine-closures-in-south-africa/
  5. https://eiti.org/sites/default/files/attachments/eiti_review_report_v10_-_final.pdf
  6. https://www.iied.org/sites/default/files/pdfs/migrate/G00628.pdf
  7. https://www.business-humanrights.org/en/latest-news/zimbabwe-call-for-transparency-citizen-participation-accountability-in-management-of-mineral-resources/
  8. https://miningzimbabwe.com/opportunities-for-improved-mineral-revenue-transparency-in-zimbabwes-mining-sector/
  9. https://collections.unu.edu/eserv/unu:8538/Ghana_Working_Paper_1.pdf
  10. https://grassrootsjusticenetwork.org/resources/the-impact-and-assessment-of-improper-mine-closures-in-south-africa-community-perspectives-on-human-rights/
  11. https://www.sciencedirect.com/science/article/pii/S2214790X21000502
  12. https://publications.iadb.org/publications/english/document/Transparent-Governance-in-an-Age-of-Abundance-Experiences-from-the-Extractive-Industries-in-Latin-America-and-the-Caribbean.pdf
  13. https://zela.org/looking-back-the-zimbabwe-mining-revenue-transparency-initiative/
  14. https://www.sciencedirect.com/science/article/pii/S0301420724002514
  15. https://resourcegovernance.org/sites/default/files/2024-11/behind_the_schemes_anticorruption_gaps_mining.pdf
  16. https://read.oecd.org/10.1787/63d60aa8-en?format=pdf
  17. https://www.u4.no/publications/a-theory-of-change-for-the-extractive-industries-transparency-initiative.pdf
  18. https://old.transparency-initiative.org/wp-content/uploads/2017/03/synthesis_report_final1.pdf
  19. https://www3.weforum.org/docs/Voluntary_Responsible_Mining_Initiatives_2016.pdf
  20. http://icsidfiles.worldbank.org/icsid/icsidblobs/onlineawards/C3004/C-032_Eng.pdf