This research seeks to better understand the effectiveness of ‘community development agreements’ (CDAs) in developing country settings as a key mechanism for: (a) obtaining broad-based consent from impacted communities; and (b) managing community impacts and benefits through structuring mutually beneficial relationships between resource companies and host communities. The main focus of the research is Rio Tinto`s ongoing agreement making with host communities and local government authorities around the Oyu Tolgoi mine in the South Gobi Province (Umnugovi Aimag) of Mongolia. 

The SGCA is one of the emerging instances globally where a resource company is required by government to enter into an agreement with host communities. Notwithstanding, Rio Tinto has a record of voluntarily entering agreements as a means of securing project development consent and certainty, and can be expected to go beyond statutory expectations. 

There is currently no legal framework in Mongolia to structure the negotiation process and no established negotiation culture in the society. As such, the process presents particular challenges for both the company and the impact communities.There are likely to be important lessons from the SGCA process which could help inform practice in other parts of Mongolia as well as other resource-rich developing countries. 

More information on the agreement can be found here: www.goviin-erin.mn

This project is part of CSRM's Mongolia Research Hub