March 2024

ALIGN
Advancing Land-based Investment Governance

Governance Flash

Timing your safeguards in mining

Many governments hope to use mining to boost economic growth and engage in the
mineral-intensive ‘green energy’ transition. But if they don’t ensure environmental and
social safeguards are included from the start, when they first grant mineral exploration
licences to prospecting companies, they risk repeating the same mistakes at the root of
many mining conflicts.

What is the problem? Why is this important to governments?

Mineral exploration licences cover huge swathes
of land to increase the chances of identifying a
resource of sufficient wealth. Once a viable resource is
identified, exploration licenses are often ‘upgraded’ to
exploitation licences to mine.
Exploration itself can have environmental and social
impacts: lack of respect for cultural and ancestral
land, fear of dispossession, damage to property
(houses cracking and cattle dying) and crops, etc.
Many environmental and social safeguards only
come into play in the transition from exploration
to mineral exploitation. However, at this stage key
decisions and assumptions may already have been
made. It can then be too late to take such issues into
account because governments and mining company
interests are committed to a path determined during
the exploration phase. An investor’s “legitimate
expectations” may limit a government’s options
to consider alternative investments or implement
strategic land use planning that reflects social and
environmental priorities.
Insufficient decision-making processes for approving
investments in the mining sector may hinder the
implementation of effective and inclusive processes
such as community engagement and/or free prior and
informed consent (FPIC). This can lead to ongoing
conflict and costs to the community, company
and government.
It is important that legal and regulatory oversight
for the approval of mineral exploration be clear and
consistent to avoid any ambiguities. Authorities
should grant exploration licenses only after
conducting community consultations, obtaining
consent, and engaging in inclusive land-based
planning. With this approach governments can
address the social and environmental dimensions of
these investments in meaningful ways.
What should be done?
To avert possible conflict and injustice, governments,
civil society and companies need to introduce
safeguards in advance of mineral exploration to
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provide better opportunities and protections for

long term, sustainable land-based development.
These safeguards should include identifying
and meaningfully engaging communities before
exploration begins; and identifying, protecting and
recognising local rights and the environment even at
early stages of investment approval (Figure 1).
●● Authorities should embrace best practice
in strategic land use planning in advance of
exploration; environmental and social impact
assessments when awarding exploration licences;
and meaningful engagement with communities
following informed consent prior to mineral
exploration.
●● In investor communications, governments
must not create legally enforceable ‘legitimate
expectations’ that may undermine their future
enviro-social decision-making on mine development.
●● Government authorities must uphold protections
given to unique and threatened ecosystems and
other areas of natural resource importance, denying
mineral exploration there in the first place.
Want to know more?
Buxton, A. (2022). People and nature first: safeguards
needed in mining exploration, IIED, London, https://www.iied.
org/20736iied
Get in touch!
ALIGN supports governments, civil society, communities
and peoples, and other relevant actors in strengthening
the governance of land-based investments. The project is
implemented by a consortium led by the International Institute
for Environment and Development (IIED), the Columbia Center
on Sustainable Investment (CCSI) and Namati, and is funded
with UK aid from the UK government.
Get in touch to find out more about ALIGN’s responsive
technical support to governments, civil society, local
communities, and other actors in a wide range of countries,
and our knowledge generation and sharing on innovative
approaches for improving practices among key actors,
globally and in specific targeted contexts.
ALIGN: Advancing Land-based Investment Governance |
International Institute for Environment and Development
(https://www.iied.org/align-advancing-land-based-investment-
governance)
Contact: align@align.org

This Governance Flash has been

ALIGN Governance Flash: a series of short guidance notes produced as part of ALIGN by IIED,
designed to alert government officials of critical land-based investment however the views expressed do not
governance considerations and possible responses to issues that might necessarily reflect the official views
be falling through the cracks, leading to conflicts and poor outcomes. or policies of ALIGN partners or the
UK Government.