A comprehensive analysis of the law and practice in the context of Nguluku and Bwiti.
Benefit sharing is a critical component in enhancing company-community harmony and enabling a company to
achieve the social license to operate. It is based on the acknowledgment that mining companies are not strictly
commercial ventures whose sole mandate is creation of revenue and profits for their shareholders; they are also
social institutions with responsibility to progressively improve the general welfare of their host communities.
Through the researh it was found that there is a lot of mistrust between the mining company and the local communities, with the communities feeling that the benefits and burdens of the mining project have not been equitably shared. In addressing this challenge, the report proposes the creation of a tripartite mechanism – the Community Mining Trust Fund – to manage all the mining resources accruing to the mining local communities and to utilise the same for the socio-economic development in these communities which has been elaborated
further in the detailed report. This is in line with other jurisdictions that have faced the same situation and
have established such mechanism, which have enhanced the effective and accountable management of
mining resources and achieved broad-based socio-economic development of mining host communities.
You can read the full report here.