Mining operations increasingly exist inremote parts of developing countries, and with the combinedchallenges in public services delivery and developmentassistance, this is drawing the mining sector further intocatalyzing development at local, regional and nationallevels. Responding to this multifaceted trend, the miningsector has increasingly turned to foundations, trusts andfunds as vehicles to share the benefits derived from mineralproduction with communities. This sourcebook reviews thedeveloping country experience of mining sector foundations,trusts and funds to date, identifies aspects of leadingpractice in this field and provides detailed examinations offourteen case studies from Peru, Southern Africa and PapuaNew Guinea. It approaches this analysis from theperspectives of the three sets of key stakeholders:communities, companies and governments. Foundations, Trustsand Funds (FTFs) have different structures and varyconsiderably in different legal jurisdictions. Recognizingthese differences, this study refers to FTFs as a grouprepresenting independent entities with options forgovernance to be shared amongst a number of stakeholders.There are three main purposes for which the mining sectoruses FTF structures: community investment - voluntaryactions or contributions by companies beyond the scope oftheir normal business operations; compensation - paymentsmade by mining companies to mitigate the impacts generatedby projects; and government payments - taxes and royaltiesas well as other payment schemes, including voluntarycontributions, which exist between mining companies andvarious levels of government which are intended forredistribution to communities through some form of benefitsharing mechanism. While FTFs are not appropriate in allsituations, this sourcebook provides examples from a vastvariety of experience to assist communities, governments andcompanies to consider the role of FTFs within their miningbenefit sharing approaches.
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