Managing Resource Revenues Generated by Mining Agreements
Chief Investigator(s):Ciaran O'Faircheallaigh, Marcia Langton.
Overview:Indigenous people may receive revenues for mining on their lands in various forms including:
- payments dependant upon the achievement of mining project milestones;
- ongoing rent for use of the land; or
- payments based on the volume or value of minerals extracted.
'Resource curse' theories suggest that this flow of revenues to indigenous communities may have negative implications for development. One concern is the potential for revenues to encourage 'rent seeking' behaviour, whereby indigenous groups become preoccupied with their access to existing revenues and consequently divert their attention from opportunities to generate new or additional wealth. However, empirical evidence suggests that such outcomes are not inevitable.
The ATNS Project will assess the relationship between mining revenues and indigenous development to ascertain what factors may explain specific outcomes flowing from the receipt of these revenues. The research will consider the use of mining revenues in four case study communities in Australia and Canada and will be framed by existing literature in the area.
Various institutional and policy factors that may impact the outcomes indigenous communities derive from mining revenues will be explored in the research, including:
- indigenous leadership and values;
- the autonomy and transparency of indigenous decision-making
- indigenous institutional capacity to deliver benefits;
- access to other benefits flowing from mining works, including employment; and
- access to expertise to enable the creation of additional wealth.
Research OutcomesWorkshops/ Seminars Held:
- O'Faircheallaigh, C. "The Politics of Complexity: Natural Gas Development in the Kimberley", Seminar Presentation, Centre for Governance and Public Policy, Griffith University, (15 October 2010).
- O'Faircheallaigh, C. "Presentation to Rio Tinto General Managers Executive Development Program", Caloundra, (28 September 2010).
- Langton, M. "Discussion on 'The Resource Curse'', Unions WA Seminar, (13 October 2010).
- Langton, M. "Designing Culturally Appropriate and Effective Governance Structures in Native Title Settlement Agreements", Attorney General's Joint Working Group on Indigenous Land Settlements Governance Workshop Native (April 2010).
Gibson, G. and O'Faircheallaigh, C. IBA Community Toolkit: Negotiation and Implementation of Impact and Benefit Agreements
O'Faircheallaigh, C. (2010) Aboriginal - Mining Company Contractual Agreements in Australia and Canada: Implications for Political Autonomy and Community Development, Canadian Journal of Development Studies, Vol XXX, Nos 1-2, 69-86
Langton, M. (2010) 'Who benefits from the resources boom?' ABC Radio National.
Langton, M. (2010) "'The resource curse': New outback principalities and the paradox of plenty", Griffith Review, Vol 28: Still the Lucky Country?, 46-62.
Langton, M and Mazel, O, (2008) "Poverty in the Midst of Plenty: Aboriginal People, the 'Resource Curse' and Australia's Mining Boom" 26 (1) Journal of Energy and Natural Resources Law 31.
O'Faircheallaigh, C. (2010) 'Aboriginal Investment Funds in Australia' in Xu Yi-chong and Gawdat Bahgat (eds) The Political Economy of Sovereign Wealth Funds (Palgrave Macmillan, London 157-176)
O'Faircheallaigh, C. (2010) 'CSR, the Mining Industry and Indigenous Peoples in Australia and Canada: From Cost and Risk Minimisation to Value Creation and Sustainable Development' in Louche, C., Idowu, S. O., and Filho, W. L. (eds), Innovative CSR: From Risk Management to Value Creation, 9Greenleaf Publishing, Sheffield)
O'Faircheallaigh, C. (2009) 'Public Policy Processes and Sustainability in the Minerals and Energy Industries' in Richards, J. (ed) Mining, Society, and a Sustainable World, (Springer, New York)
Other Relevant Publications:Brunnschweiler, C. N. and Bulte, E. H. (2008) "Linking Natural Resources to Slow Growth and More Conflict", Science, Vol 320, May: 616-17.
O'Faircheallaigh, C. 2003, "Implementing Agreements between Indigenous People and Resource Developers in Australia and Canada", Aboriginal Politics and Public Sector Management Research Paper No 12 (Griffith University, Brisbane).
O'Faircheallaigh, C. "A New Approach to Policy Evaluation: Mining and Indigenous People", (Ashgate Press, London)
O'Faircheallaigh, C.(2004) "Denying Citizens their Rights? Indigenous People, Mining Payments and Service Provision", Australian Journal of Public Administration, Vol 63, No 2: 42-50.
O'Faircheallaigh, C. (2006) "Making the Most of Impact and Benefit Agreement Payments: Lessons from Australia", Paper presented to the Conference Two Realities, One Community: Aboriginal Community Development with the Minerals Sector, Ottawa, 6-7 November 2006.
O'Faircheallaigh, C. (2006) "Aborigines, Mining Companies and the State in Contemporary Australia: A New Political Economy or 'Business as Usual'"?' Australian Journal of Political Science, Vol 41, No 1: 1-22.
O'Faircheallaigh, C. (2006) "Mining Agreements and Aboriginal Economic Development in Australia and Canada", Journal of Aboriginal Economic Development, Vol 5, No 1: 74-91.
O'Faircheallaigh, C. (2003) "Financial Models for Agreements between Indigenous Peoples and Mining Companies" Aboriginal Politics and Public Sector Management Research Paper No 12, (Griffith University, Brisbane).
O'Faircheallaigh, C. (2002) "Implementation: The Forgotten Dimension of Agreement-Making in Australia and Canada", Indigenous Law Bulletin, Vol 5, October: 14-17.
O'Faircheallaigh, C. (2006) "Making the Most of Impact and Benefit Agreement Payments: Lessons from Australia", Paper presented at the Conference Two Realities, One Community: Aboriginal Community Development with the Minerals Sector, Ottawa.
O'Faircheallaigh, C. (2007) "Managing Financial benefits from Mining Projects in Australia", Paper Presented at "Power, revenues and benefits: Ensuring fairness now and across generations" Fort Good Hope, Northwest Territories.
World Bank and International Finance Corporation, "Treasure or Trouble? Mining in Developing Countries" (2002, International Finance Corporation, Washington D.C.)