Part II guidance Notes Pillar I – Laws, Policies, and Institutions

 
 
 
 
 Pillar III – Socio-economic Benefits
 
 
 
Introduction 
Pillar III focuses on the social and economic benefits of mining which, when carried out in 
accordance with laws and good international practices, can create employment, initiate local 
economic development through local procurement of goods and services, provide access to 
shared mining education and infrastructure and services, and improve opportunities for women 
and other historically under-represented or marginalized groups. These benefits should 
continue beyond mine closure and into the post-mining transition. 
To achieve this, governments must design and implement robust policies and regulations that 
require environmental and social impact assessments (ESIA) and plans, promote responsible 
mining practices, and ensure fair labour practices, security, and occupational health and safety 
(OHS) standards. Such policies and regulations must be designed in consultation with 
communities to ensure inclusive decision-making processes and to safeguard the rights, safety, 
and well-being of workers, including women and other historically under-represented groups 
who often face increased risks of marginalization, violence, and exclusion due to cultural norms 
and customs.

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Revenue optimization on its own, in the absence of matching investments in other productive 
sectors, has not yielded significant economic benefits. As a result, many resource-rich countries 
remain challenged by undiversified economic structures with weak industrial bases. Mining can 
provide economic growth and long-term sustainable development opportunities to mining 
communities and the economy as a whole. 
Objectives 
 
• To ensure mining entities’ initiatives and activities are consistent with national social and 
economic development objectives and that these benefits continue beyond mine 
closure. 
• To ensure mining activities contribute to long-term development of mining regions.
• To ensure mining activities create social and economic benefits, and linkages for mining 
communities and the country’s citizenry as a whole. 
• To leverage mining activities to enhance social and economic benefits and minimize risks 
for local communities living around mining operations.
In keeping with the commitment of the IGF members to ensure that mining activities within their 
jurisdiction are compatible with the Sustainable Development Goals (SGDs), implementation of Pillar II’s 
recommendations advance the following SDGs: 
• SDG 1 (No Poverty) by creating a supportive and inclusive business environment to support local 
economic development. 
• SDG 3 (Good Health and Well-Being) by promoting workplace health and safety. 
• SDG 4 (Quality Education) by promoting universal education and vocational training without 
discrimination in mining communities and resource-rich countries. 
• SDG 5 (Gender Equality) by promoting strategies for gender equality in mining policies through 
private-sector investment and initiatives with local and grassroots women’s organizations in host 
communities that train women in leadership roles in the mining sector. 
• SDG 7 (Affordable and Clean Energy) by promoting clean energy infrastructure in mining operations 
and shared with communities. 
• SDG 8 (Decent Work and Economic Growth) by promoting public/private partnerships to enhance 
local employment and economic local development. 
• SDG 9 (Industry, Innovation and Infrastructure) by promoting partnerships for better infrastructure 
and by developing industries in mining communities. 
• SDG 10 (Reduced Inequality) by promoting partnerships between mining entities and local 
businesses that provide economic opportunities at the local, regional, and national levels. 
• SDG 11 (Sustainable Cities and Communities) by integrating policies and plans for more sustainable 
outcomes.
• SDG 12 (Responsible Production and Consumption) by integrating sustainability information into 
company reporting. 
• SDG 13 (Climate Action) by working with local communities and mining entities to design, construct, 
operate, and close mining operations that incorporate local adaptation measures to climate change. 
• SDG 16 (Peace, Justice and Strong Institutions) by protecting fundamental freedoms in accordance 
with national legislation and international agreements, and by promoting the rule of law and 
preventing violence. 
• SDG 17 (Partnerships to Achieve the Goal) by promoting public/private partnerships for sustainable 
local development.