The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Mali Governance of Mining Sector (P164242) AFRICA WEST | Mali | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 4 | ARCHIVED on 07-Jun-2021 | ISR44423 | Implementing Agencies: Ministere des Mines et du Pétrole, Republic of Mali Key Dates Key Project Dates Bank Approval Date: 21-Jun-2019 Effectiveness Date: 22-Oct-2019 Planned Mid Term Review Date: 31-May-2022 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2024 Revised Closing Date: 30-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective is to strengthen the capacity of the mining sector to contribute to Mali’s medium-term growth and sustainable development objectives. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Creating conditions for growth and diversification of the mineral sector:(Cost $19.00 M) Component B: Strengthening Revenue Transparency and Governance:(Cost $3.10 M) Component C: Maximizing the Local Development Impact of Mining:(Cost $12.40 M) Component D: Contingency Emergency Response Component E: Project Coordination:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions Geosciences Activities: Component A Component A: Creating conditions for growth and diversification of the mineral sector through a key subcomponent focused to the development of basic geoscience. The work has suffered some delays, particularly considering the linked approach of all the geoscience activities under the current component. -. Two main issues identified as the origin of the implementation delays: a) Lack of response from consultancy services vendors to the call for proposals launched to prepare the implementation of the core work (geophysical and geological mapping work) due to the security concerns and perception of instability within some of the planned surveyed areas and b) Difficult negotiation processes with those consultants that were keen to accept the main conditions of work but requested substantial changes in the budget initially allocated particularly for the geophysical survey work. In this regard, the Bank was willing to find a solution given the very limited number of responses and to enlarge the outreach possibilities to other 6/7/2021 Page 1 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) technical services from various countries. The PGSM project had already approached some key mining countries and delegations (Embassies and geoscience institutions) to enable a larger number of possibilities and more reasonable costs encouraging competition of these technical services which are rather specialized. The PGSM has revised elements of the scope of the core activities (geophysics) and was studying alternatives by which the basic areas of the survey will be covered with an accepted level of resolution (distance between flight lines and flying height) to enable the derived airborne geophysical survey products to generate tangible and meaningful results without degrading the quality and, obviously, maintaining a reasonable cost structure in line with the budget plan. The Mali governments were keen to pursue this new avenue to remove the two blocking factors mentioned earlier. The security concerns in operations are considered rather exaggerated even if they are restricted to particular points in the eastern part of Mali. This was even more critical as the acquisition of the airborne geophysical survey is a fundamental piece of work to be used for undertaking the geological mapping survey that PGSM needs to perform to provide value to attract mineral investors. Those investors required a reduced investment risk and are looking for early exploration areas where to start to identify targets for further work. -. Regarding the work on ASM side, it proceeds as planned and a revision of the launched activities under implementation, particularly the formalization stages, prior to the preparation of other datasets along the “couloirs d`orpaillage” or ASM corridors that are being identified at this stage. It is interesting to recall that a workshop reviewing the ASM situation and the ToR for the planned work took place some months ago with key stakeholders’ participation from government and the World Bank. In this regard, the Bank has highlighted the importance and relevance for the PGSM of the Artisanal & Small-scale Mining (ASM) in Mali, particularly stressing those ASM activities related to social, environmental and governance matters presenting ways ahead into specific project activities and contracts. Moreover, during various meetings and online missions the criticality of addressing the challenges of governance, transparency, and protection of the environment, as reference in the mining policy of 2018 was pointed out as a way for private sector development through subsurface knowledge reinforcement using detailed mapping and novel techniques along the ASM corridors. It is key to be borne in mind that Mali´s economic endowment (mining potential) and the need to use the geoscience work results to attempt to diversify the mineral sector to other commodities including “green minerals” (rare earth elements & battery minerals) is a fundamental requirement expressed by the Mali government in several official documents including the PGSM and this is a point fully shared by the World Bank. 2. Strategic Environmental and Social Assessment (SESA) of the mining sector and Environmental and Social Management Framework (ESMF) for the project: contract under execution with satisfaction and the first, second and third reports were received and accepted. 3. Study the traceability of revenues from the mining sector and support the EITI Validation process: Report received and approved. 2021 AWP will implement the action plan. The project will support the EITI secretary in 2019 reports. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High Substantial Macroeconomic Substantial Substantial Low Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High Moderate Moderate Sustainability Fiduciary High Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders High Moderate Moderate Other High Substantial Moderate Overall High Substantial Moderate Results 6/7/2021 Page 2 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) PDO Indicators by Objectives / Outcomes Create the conditions for growth and diversification of the mineral sector IN00921340 ►Share of high-potential sheets covered by airborne or groung geophysical survey (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 25.00 25.00 40.00 Date 28-Aug-2020 27-Aug-2020 27-May-2021 16-Sep-2024 Comments: Extent of knowledge of mineral potential hosted by greenstone belts IN00921556 ►Mining policy and regulatory framework attractiveness for sustainable investments (Fraser Institute Index) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.40 50.40 50.40 60.00 Date 11-Mar-2019 28-Aug-2020 27-May-2021 14-Sep-2022 This indicator measures the adequacy of the regulatory framework for sustainable investment in Comments: exploration and mining development IN00921557 ►Satisfactory institutional effectiveness rating (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 11-Mar-2019 28-Aug-2020 27-May-2021 14-Sep-2022 Independent annual assessment of the overall effectiveness of the Ministry of Mines and Petroleum based Comments: on evaluation of progress toward reaching the outcomes of the Results Framework and on results of customer satisfaction survey. IN00921558 ►Resource Governance Index (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 53.00 53.00 53.00 75.00 Date 14-Feb-2019 28-Aug-2020 27-May-2021 16-Sep-2024 This index is published annually by the Natural Resource Governance Institute. It measures the quality of resource governance in 81 countries. It is the product of 89 country assessments (eight countries were Comments: assessed in two sectors), compiled by 150 researchers, using almost 10,000 supporting documents to answer 149 questions. IN00921559 ►Proportion of women in mining supported by the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/7/2021 Page 3 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Value 0.00 0.00 0.00 30.00 Date 13-Feb-2019 28-Aug-2020 27-May-2021 16-Sep-2024 The women support activities are ongoing and we will have the first result at the end of the year. Comments: IN00921560 ►Number of artisanal mining cooperatives established and supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 11-Mar-2019 28-Aug-2020 27-May-2021 30-Jun-2022 Comments: Extent of project support for formalization of ASM Intermediate Results Indicators by Components Component A: Creating the Conditions for Growth and Diversification of the Mineral Sector IN00921561 ►Geological attractiveness for investment (available number of area maps surveyed at scale of 1:200 000 for mining investment promotion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80.00 80.00 80.00 130.00 Date 13-Feb-2019 28-Aug-2020 27-May-2021 16-Sep-2024 Comments: Access to geological information for investors interested in exploration IN00921565 ►Regulatory capacity (average processing time of mining title application) (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 180.00 180.00 180.00 30.00 Date 13-Feb-2019 28-Aug-2020 27-May-2021 16-Sep-2024 Comments: This indicator measures government's efficiency in providing access to mineral resources IN00921570 ►Average number of annual health, safety, environmnetal and social compliance inspections for each active mining operation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 4.00 Date 29-Jun-2018 28-Aug-2020 27-May-2021 31-Dec-2021 Comments: This indicator measures the government's capacity to monitor mining operations 6/7/2021 Page 4 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) IN00921573 ►Establishment and operationalization of Inter-Ministerial Mine Coordination Unit (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Jun-2018 28-Aug-2020 27-May-2021 16-Sep-2024 This indicators measures the government's capacity to formulate policies and negotiate mining Comments: agreements Component B: Strengthening Revenue Transparency and Gocvernance IN00921562 ►Number of mining localities with completed strategic development plans that integrate mining EI revenues (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 6.00 Date 29-Jun-2018 28-Aug-2020 27-May-2021 31-Dec-2021 IN00921564 ►Establishment of an online platform for EI revenue data integration and monitoring at local and central levels (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 12-Jun-2019 28-Aug-2020 27-May-2021 31-Dec-2021 IN00921566 ►Representation of women in community-based management committees (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 10.00 10.00 30.00 Date 23-Jan-2019 28-Aug-2020 27-May-2021 31-Dec-2021 This indicator measures the extent of women's voice and accountability in extractive revenue Comments: management IN00921568 ►Annual publication of compliant EITI reports incorporating ASM revenue and disaggregated local revenue (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 14-Feb-2019 28-Aug-2020 28-Aug-2020 16-Sep-2024 Comments: Indicator of transparency of mining revenues received at local and central levels IN00921571 ►Consultation and debates on the governance and transparency diligently documented and publicly disclosed (Number, Custom) 6/7/2021 Page 5 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 28-May-2019 28-Aug-2020 27-May-2021 28-Jun-2024 Consultation and debates related to the governance and transparency of social payments, corporate Comments: social responsibility, and other contextual data related to the extractive sector need to be well documented and publicly disclosed with full access to citizens. IN00921574 ►Feedback received from public consultations and debates have been incorporated in the upcoming Mali EITI report, as well as the mining sector beneficial ownership road map (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 28-May-2019 28-Aug-2020 27-May-2021 28-Jun-2024 Feedback received from public consultations and debates will be incorporated in the next Mali EITI report, Comments: as well as the mining sector beneficial ownership road map to be developed and implemented under the scope of this proposed project. Component C: Maximizing the Local Development Impact of Mining IN00921563 ►Number of registered and active ASM cooperatives, SMEs or associations as a result of the project formalization initiatives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 100.00 100.00 400.00 Date 29-Jun-2018 28-Aug-2020 27-May-2021 31-Dec-2021 IN00921567 ►Number of women supported through associations to establish and operate value-added industries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 Date 12-Jun-2019 28-Aug-2020 27-May-2021 31-Dec-2021 Comments: Extent of project support of economic empowerment of women IN00921569 ►Number of mining companies signing on to multi-stakeholder initiatives for power and mining integration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 12-Jun-2018 28-Aug-2020 27-May-2021 16-Sep-2024 Comments: Extent of operationalization of the Power of the Mine Initiative to improve energy access in rural areas IN00921572 ►Number of women supported to participate in alternative livelihood activities (Number, Custom) 6/7/2021 Page 6 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 12-Jun-2018 28-Aug-2020 27-May-2021 16-Sep-2024 Comments: Extent of project support of economic empowerment of women Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164242 IDA-64470 Effective USD 40.00 40.00 0.00 4.08 39.10 9.4% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164242 IDA-64470 Effective 21-Jun-2019 12-Jul-2019 22-Oct-2019 30-Jun-2024 30-Jun-2024 Cumulative Disbursements 6/7/2021 Page 7 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/7/2021 Page 8 of 8