The Extractive Industries Transparency Initiative (EITI) is a global standard, first launched in 2003, to promote open and accountable management of natural resources. It seeks to strengthen government and company systems, inform public debate, and enhance trust.
Natural resources such as metals and minerals belong to a country’s citizens and extraction of these resources can lead to economic growth and social development. However, when poorly managed it has too often lead to corruption and even conflict. More openness around how a country manages its natural resource wealth is necessary to ensure that these resources can benefit all citizens.
ICMM is actively supportive of EITI, having been closely engaged in the development of the EITI Standard.
In the over 50 countries committed to implementing EITI governments, companies and civil society work together in a multi-stakeholder process to ensure that information on oil, gas and mining operations is available to the public. This includes:
a description of the legal framework and fiscal regime
the sector’s contribution to the economy, including employment
licence registers and allocations
company’s beneficial ownership
information on state participation in the extractive industries
revenues and payments between companies and the government, including at the subnational level, and revenue allocations
social payments by companies.
Many reports also include information on artisanal and small scale mining.
This information is disclosed in an annual EITI Report which allows citizens to see for themselves how their country’s natural resources are being managed and how much revenue they are generating.
Transparency can only lead to accountability if there is understanding of what the figures mean and public debate about how the country’s resource wealth should be managed. Therefore, the EITI Standard requires that EITI Reports are comprehensible, actively promoted and contribute to public debate.
The EITI Standard provides a framework that promotes good governance, reduces social tensions, creates a ‘level playing-field’ between companies and strengthens a company’s dialogue with the government and civil society. Find out more about the EITI.
ICMM and member involvement in EITI
Presently, representatives from two ICMM member companies sit on the EITI International Board, and a third is an alternate to the Board. Many ICMM member companies are active participants on EITI national multi-stakeholder groups. The mining industry has asked the ICMM to act as the coordinating body for the entire sector, ensuring that the voice of the wider industry is heard at the international level.
In countries that are not EITI compliant we still advocate the constructive engagement of mining companies in appropriate forums to improve the transparency of mineral revenues, in line with our position statement on transparency of mineral revenues. We are mindful however, that unilateral transparency can create a competitive disadvantage for companies if the host government is unsupportive of disclosure.
Find out more about how the EITI benefits companies by downloading our factsheet.