Enhancing Competitiveness and Attracting FDI to the Mining Sector
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Transcript of Enhancing Competitiveness and Attracting FDI to the Mining Sector
1OECD Eurasia Competitiveness Programme 1
CENTRAL ASIA INITIATIVEKazakhstan Mining Competitiveness Project
Enhancing Competitiveness and Attracting FDI to the Mining Sector5th Working Group meeting, 21 June 2016
2OECD Eurasia Competitiveness Programme
The OECD Eurasia Competitiveness ProgrammeOECD Council Mandate covering thirteen countries
Afghanistan, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Republic of Moldova, Mongolia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan
Note: This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map.
The OECD Eurasia Competitiveness Programme was launched in 2008 and aims at contributing to economic growth and development in eleven countries of the former Soviet Union as well as Afghanistan and Mongolia
3OECD Eurasia Competitiveness Programme
• Improving the rule of law and regulations is the main barrier to investment in Kazakhstan's mining sector.
• Kazakhstan’s future mining code would benefit from being aligned with OECD best practices, in particular regarding pre-emptive rights, licensing process, security of tenure, and arbitration
• While current global investments in exploration fell, establishing solid foundations on rule of law, investment promotion, and access to capital can increase attractiveness for future investment in exploration, including for Junior Explorers
• First findings on stimulating local linkages and diversifying the value chain suggest the need to facilitate local capabilities, increase matchmaking, and improve access to finance while working on horizontal policies (e.g. human capital and skills devlopment).
Reminder: Summary of our initial findings
4OECD Eurasia Competitiveness Programme
As agreed at the 2nd Working Group meeting, the Project continued to focus on 4 priority areas of work
Investment Promotion and Policies (IPP) to attract junior
enterprisesThe Project disseminated the IPP framework with
the MID and Kaznex Invest.
Stimulation of local linkagesThe Project organised a dedicated workshop in
January 2016 in Astana on local content requirements in mineral-rich countries, with a
focus on backwards linkages.
Rule of law and regulations
The Project extended the analysis of the mining related regulatory framework to environmental
regulations, land rehabilitation and mining taxation, providing observations on a draft of the
SSU Code
Human capital as a means to diversify
the value chain
The Project continues to build on the analysis based on the results of fact-finding mission
conducted to Astana in December 2015 and based on desk research.
Priority areas of work Main activities since December 2015
5OECD Eurasia Competitiveness Programme
• Part 1: Highlights on taxation regimes in mining the industry- Summary of key points on the capacity building seminar: Taxation regimes in
mining industry, with a focus on the mineral-rich OECD countries by Mr. Dan Devlin, Sr Economist, OECD
• Part 2: Environmental payments in the mining industry- Presentation by Mr. Krzysztof Michalak, Senior Programme Manager,
OECD, with an overview of environmental payments for regulating mining activities and operations in a fair and sustainable framework and reactions from the Ministry of Energy
• Part 3: Environmental payments in the mining industry in local and international context
- Interventions by representatives of the Republican Association of Mining Enterprises, the Kazakhstan Business Council for Sustainable Development, GIZ and Dechert
• Project planning and next steps
Agenda
6OECD Eurasia Competitiveness Programme
Key decisions for today
1. Continue to adopt and integrate OECD good practices on taxation in the mining sector in Kazakhstan
2. Promote environmental responsibility and further encourage cross-sector dialogue to adopt a sustainable use of resources through the effective use of environmental charges in line with OECD good practices
3. Agree on the topics for further analysis in the framework of the project
• Voluntary environmental compliance in mining• Land rights allocation and land owners’ rights of disposition,
possession and use of subsoil• Waste management regulation and effective mine closure
7OECD Eurasia Competitiveness Programme
OECDWorking Group members
Immediate actions
• Present insights and expertise on agreed policy areas, including case studies
• Organise next Working Group and capacity building session
In Q3 2016
By the next WG
meeting in October
2016
• Adjust action plan to the Working Group feedback
• Pursue in-depth analysis on agreed policy areas in Kazakhstan
• Involve additional experts on the agreed policy areas
• Provide additional information and insights on the agreed policy areas
• Attend the next Working Group
• Approve the policy areas for the next Working Group meeting
• Provide key information/documents on the existing situation upon OECD request
Next steps for the project until October 2016
8OECD Eurasia Competitiveness Programme
2015 2016Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Project Working Groups, events and missions
20-24 Feb 20151st WG / Project
launch
8-12 June 2015 2nd WG
30-31 March 2016 4th WG
June 20165th WG & Capacity Building
28 Sept - 2 Oct 2015Fact-finding
mission
7-11 Dec 2015 3rd WG
20-24 April 2015Fact-finding
mission
17-18 JuneAMM
Detailed project work plan 2015-16 (1/2)Working Groups, missions and related events
15-16 JuneBRGM - AMM
October 2016 (tbc)
6th WG
December2016 (tbc)
7th WG
9OECD Eurasia Competitiveness ProgrammeOECD Eurasia Competitiveness Programme
9
Contact details:
Jean-François LENGELLEProject ManagerOECD Eurasia Competitiveness Programmee-mail: [email protected]
Antonio SOMMAHead of the OECD Eurasia Competitiveness Programmee-mail: [email protected]
Ana DELIGNYPolicy AnalystOECD Eurasia Competitiveness Programmee-mail: [email protected]
Anna ELISEEVAPolicy AnalystOECD Regulations for Competitiveness Projecte-mail: [email protected]
Miguel CASTROProject Co-ordinator OECD Regulations for Competitiveness Projecte-mail: [email protected]