Community agreements are legally binding agreements between mining companies and local communities that formalize their long-term relationship. They establish mutual obligations and joint contributions to regional development and support for the mine. Community agreements go beyond compensation and ensure communities have input in decisions and share benefits from hosting large industrial operations. They provide transparency and accountability while avoiding dependency. Well-structured agreements clearly define expected outcomes, responsibilities, and dispute resolution.

1. Community Agreements
Bruce Harvey
Global practice leader : Communities & Social Performance

3. Why have Community Agreements?
• In certain countries with strict mining laws, community agreements are
compulsory in acquiring mining licenses and land use
• Beyond compensation for relocation, changes to their lifestyles, and other
disturbances, land-connected community groups want to share in the
benefits of hosting a large industrial operation in their neighborhood
• Lender requirements on engagement and transparency
• It is in the interests of the company conducting mining activities to build an
institutional basis for stable and effective community relations
What is a Community Agreement?
• A legally binding agreement formalising long term relationship between a
mining company and with local communities
• A platform for mutual obligation and joint contribution to regional
development and support for the mine
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4. How do CA align with other things already in place?
Interactions that
a company Community Agreement
already has and will Formalises community
have with directly interactions from
affected communities community perspective
(Company
perspective)
ESIA
Formalises Different windows into the
community
interactions from same ‘community
lenders’ perspective
or government
universe’
perspective
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5. Community Agreement - General Principles
•• An institutionalised relationship
An institutionalised relationship
•• Bottom up shared vision – participatory; involvement in decisions
Bottom up shared vision – participatory; involvement in decisions
•• Mutual obligations
Mutual obligations
•• Clear evidence of community support for the project
Clear evidence of community support for the project
•• Clear expected outcomes
Clear expected outcomes
•• Clear accountabilities for delivering commitments
Clear accountabilities for delivering commitments
•• Mutually agreed enforceability and dispute resolution mechanisms
Mutually agreed enforceability and dispute resolution mechanisms
•• Comprehensive
Comprehensive
•• Legally binding: transparency
Legally binding: transparency
•• Implementation provisions
Implementation provisions
•• Avoiding dependency
Avoiding dependency
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6. Possible Community Agreement Structure
Main Agreement
Core agreement (includes things like legal
framework, governance, consent and support
for mine, default events, changes of law,
assignment, permitted claims, dispute
resolution, waivers, tax, confidentiality etc.
Sub-agreements
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7. Possible components of a Community Agreement
1. Environmental protection and rehabilitation
2. Cultural heritage protection and management
3. Pasture land protection and management
4. Rangeland water management
5. Employability, training and employment
6. Local & regional government and administration capacity, social
services, education, health, infrastructure and information services
7. Local enterprise development, procurement of goods and services
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