Memorandum submitted by the British Geological
Survey
1. The British Geological Survey (BGS),
which is a public sector research establishment and a component
body of the Natural Environment Research Council (NERC), wishes
to bring to the attention of the Committee its experiences in
development aid work that have a bearing on the Inquiry. Members
of the Committee may know that the BGS International and its forerunner
organisation, the Overseas Geological Survey, have a long history
of providing technical assistance and institutional strengthening
to the geological survey organisations (GSO) of Commonwealth,
and other, developing countries. Prior to 1997, this work was
mainly commissioned by the Overseas Development Administration
(ODA) within the Foreign and Commonwealth Office (FCO). Following
the creation of the Department for International Development (DfID)
in 1997 and its adoption of policies that give priority to humanitarian
rather than "engineering" type work, the BGS's activities
in developing the natural resources infrastructures overseas have
mainly been sponsored by World Bank and European Union funding
sources.
2. Notwithstanding the importance of humanitarian
aid, sustainable economic development in most resource rich, but
financially poor, countries is more likely to flow from trade,
based on mineral, hydrocarbon, or agricultural assets. Whilst
early stage developments of mineral resources will generally involve
bulk exports of relatively low grade ore, through time and investment
it is possible to build more benefication to the local economy,
as exports move higher up the value chain.
3. We recognise that the mining industry,
especially in Africa, has a somewhat negative image, and we applaud
the Extractive Industries Transparency Initiative of the World
Bank, DfID and others. Despite persistent examples of bad practice
in mining, including corruption, the exploitation of child and
female labour, environmental damage, funding of conflicts and
fostering social practices that increase the incidence of HIV/AIDS,
it is entirely possible to support good mining practices that
avoid these problems. This is the norm, today.
4. An essential first step to developing
best practice mining is the establishment of effective information
and regulatory bases, and skills, in the country. In most developing
countries, the GSO is responsible for updating and publishing
the geological and cadastral data that both attracts inward investment
and helps to regulate the exploitation of natural resources. Many
developing countries need external assistance to generate modern,
accurate, digital geological maps that meet the standards required
by international mining companies as a pre-requisite to investment.
Furthermore, such maps need to be credentialised through having
on them the badge (logo) of a leading, internationally respected
and independent geological survey, such as the BGS. This is because
it is less likely that a mining company would invest several millions
of dollars in a country, solely on the basis that the GSO of that
country claimed, through its geological maps and reports, that
the area was highly prospective. Nor would the maps necessarily
be more credible if they were produced by a commercial survey
company, even one of good repute, which potentially had a financial
interest in their subsequent use.
5. The principle, described here, of supporting
the production of modern geological maps and the concomitant transfer
of skills and technologies to local counterparts, as an important
first step to economic development built on trade in natural resources,
is well recognised by the World Bank, the African Development
Bank, the Nordic Development Fund, the European Union and several
bilateral aid agencies, including Coop
ration Francaise (France), GTZ (Germany), DANIDA
(Denmark), CIDA (Canada), etc. Unfortunately, this aspect of development
aid does not appear to be regarded highly by DfID, which has largely
withdrawn from this sector, other than through its indirect support
via its financial contributions to the World Bank and the EU.
BGS regrets that position, because it limits direct UK involvement
in supporting this important aspect of development through trade.
It also, perhaps, sends a negative signal of disinterest to those
very large international mining companies based in the UK.
6. Given its position as the oldest national
geological survey in the world (founded in 1835) and its unique
position as a respected and independent centre of excellence in
the geosciences for international development, the BGS would wish
to see a stronger relationship building between itself, DfID and
the DBERR, with the aim of assisting developing countries, especially
those in Africa, to maximise their economic growth through trade
based on natural resources, in environmentally and socially acceptable
ways. We believe that, acting together, the BGS, DfID and DBERR
could be a very effective force for good in this endeavour.
August 2007
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