Policy Dialogue on Natural Resource-based Development (PD-NR)

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Resource producer countries and extractive industries have become increasingly aware of the need to work together to use the extractive sector as a catalyst for long-term, competitive, inclusive and sustainable development.

As part of the OECD Strategy on Development adopted at Ministerial level in May 2012, the OECD Policy Dialogue on Natural Resource-based Development (PD-NR) offers an intergovernmental platform for peer learning and knowledge sharing where OECD and non-OECD producing countries, in consultation with extractive industries, civil society organisations, and think tanks, can craft innovative and collaborative solutions for resource-based development. The work and analysis of the Policy Dialogue also feeds into other international processes such as the 2030 Agenda for Sustainable Development, the G7 CONNEX Initiative, the G20 Development Working Group and the G20 Anti-Corruption Working Group.

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LATEST NEWS

20 June 2019: Participants in the Twelfth Plenary Meeting of the Policy Dialogue on Natural Resource-based Development endorse the finalised version of the Guiding Principles for Durable Extractive Contracts

20 - 21 June 2019: 12th Plenary Meeting, Key Outcomes and Summary Report

12 - 13 December 2018: 11th Plenary Meeting, Key Outcomes and Summary Report

12 December: OECD Development Centre releases policy paper on Integrating Renewables in Mining: Review of Business Models and Policy Implications

25-26 June 2018: 10th Plenary Meeting: Read the Key Outcomes and Summary Report

31 January-1 February 2018: 9th Plenary Meeting: Read the Key Outcomes and Summary Report

23 January 2018: On-line public consultation for the Advanced Draft of the Guiding Principles for Durable Extractive Contracts is open until 30 March 2018

3 October 2017: Policy Statement on Natural Resource-based Development

3 October 2017: OECD Development Centre 4th High-level Meeting of the Governing Board

15-16 June 2017: Read the Key Outcomes of the 8th Plenary Meeting of the Policy Dialogue

15 June 2017: The OECD Development Centre releases Guidance to Assemble and Manage Multidisciplinary Teams for Extractive Contract Negotiations

26-27 May 2016: The Negotiation Support Forum, jointly established by the G7 CONNEX initiative and the OECD Policy Dialogue’s Work Stream 3 on Getting Better Deals, features in the G7 Ise-Shima Leaders’ Declaration as a means through which G7 Leaders will seek progress to build capacity for contract negotiation in developing countries and improve governance and transparency in extractives sectors. The CONNEX Guiding Principles towards Sustainable Development were endorsed at the G7 Summit, and recognise the specific role of the Negotiation Support Forum to foster knowledge sharing and peer learning among support providers, partner countries and investors.
20 April 2016: The OECD Development Centre releases toolkit to tackle corruption in the extractive value chain at the 2016 OECD Integrity Forum

29 February 2016: Endorsement of the Framework for Extractive Projects on Collaborative Strategies for In-Country Shared Value Creation

Shared Value Creation

Revenue Management and Spending

Getting Better Deals

Domestic Resource Mobilisation (tackling BEPS and corruption)

Participating countries and stakeholders in the consultation process have collectively developed a Framework for Extractive Projects on Collaborative Strategies for In-Country Shared Value Creation to use extractives to build competitive and diversified economies Country Reviews on Shared Resource-based Value Creation are also used to assess the constraints and opportunities for in-country value creation and better integration of the extractive sector with the rest of the economy.

A Compendium of Practices is being developed to provide further guidance for operationalising the Framework, inform improved policy making and support the implementation of the 2030 Agenda for Sustainable Development by showing how public-private collaboration can work in practice.

Integrating renewables in mining: Review of business models and policy implications

The report focuses on the mining sector's energy transition based on a review of over 30 existing renewable energy projects in mines worldwide. It analyses the key drivers for, and obstacles to, renewable energy integration in mining operations, in order to reduce energy-related costs and associated carbon footprint, thereby contributing to the achievement of the SDGs and the Paris Agreement.

Participating countries endorsed the lessons learned in the Comparative analysis of country practices on the performance of stabilisation funds and public investment options. Participants agreed on the merit of continuing the dialogue on natural resource funds and revenue spending to address specific demands from resource-rich emerging and developing countries, broadly differing from those of developed economies.

Investment contracts are key tools, defining investor-state relationships, determining the distribution of risks, costs and benefits as well as the level of public revenues to be expected from investment projects. The process has led to the development of Guidance to Assemble and Manage Multidisciplinary Teams for Extractive Contract Negotiations to engage effectively in extractive contract negotiations. Annexed to the Guidance is a Terms of Reference Template that governments may use to recruit and to monitor external advisers.

Since the pricing of transactions between related parties in the extractive industries is an issue of particular relevance to many developing countries, a toolkit on mineral product pricing, which has been the subject of extensive consultation within the Policy Dialogue, has been released to help address the information gaps on prices of minerals sold in an intermediate form (such as concentrates).

Participating countries and stakeholders in the consultation process have collectively developed the Guiding Principles for Durable Extractive Contracts that host governments and investors can use as a common reference to build mutual trust during contract negotiations, and structure extractive contracts for the long term.

Participating countries and stakeholders in the consultation process have collectively developed a Typology of Risks, Mitigation Measures and Incentives. This work is intended to contribute to the 2030 Agenda for Sustainable Development and other international processes, including on-going efforts by the G-20 Anti-Corruption Working Group to prevent and address corruption in high-risk areas.

The Typology can be used as a benchmarking tool by stakeholders or integrated into existing methodological tools to carry out sector-specific integrity scans or peer-reviews, such as the African Peer Review Mechanisms.

The OECD and the Intergovernmental Forum on Mining, Minerals and Metals (IGF) are addressing high-priority tax base erosion issues facing many developing countries in raising revenue from their mining sectors, including excessive interest deductions; the design and use of tax incentives for mining investment; mineral product pricing for products with opaque markets; strengthening mineral testing and verification practices; and the use of stabilisation clauses in investment treaties.

As production entitlements often account more than taxes in producing countries, a new international dialogue on Commodity Trading Transparency was launched to improve common understanding, possible approaches, and benefits of transparency in commodities trading-related payments to reduce corruption risks and opacity in the selection of buyers, negotiation of contract terms, transfer of revenues, and to enhance governments’ accountability in the use of the sales proceeds.

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