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Extractives sector development assistance

Extractives sector development assistance initiatives


The Australian Government has a long history of working with partner governments, multilateral and non-government organisations, universities and the private sector to maximise the development potential of extractives sectors. Our support enhances the capacity of governments in resource-rich developing countries in the Indo-Pacific region to make the most of their natural resources, and ensure benefits flow on to communities.

Below is an overview of global initiatives currently managed by DFAT. Additional information can be found on country and regional program pages.

Extractive Industries Transparency Initiative (EITI)

$5.0 million, 2011-2023

The Extractive Industries Transparency Initiative (EITI) is the global standard for the good governance of oil, gas and mineral resources. It is an international coalition of governments, multilateral organisations, companies and civil society that promotes greater transparency and accountability in the extractives sector and assists countries to manage their natural resources effectively.

Australia is a long-standing supporter of the EITI, providing $3.8 million in funding since 2011. In 2020, Australia committed a further $1.2 million to support the EITI from 2020‑2023. This will help the EITI support our partner countries to improve extractives governance and transparency, strengthen public finance and revenue management, and build technical skills in the resources sector.

Countries implementing the EITI Standard disclose information along the extractive industry value chain. This information helps to strengthen public and corporate governance, promote understanding of natural resource management, and drive reforms for greater transparency and accountability in extractives sectors. As of October 2020 there are 55 EITI implementing countries including several countries in our region: Indonesia, Mongolia, Myanmar, Papua New Guinea, the Philippines, Solomon Islands and Timor-Leste.

Related links

Extractive Industries Transparency Initiative (EITI)

Extractives Global Programmatic Support (EGPS) Multi-donor Trust Fund

$13.6 million, 2015-2022

The EGPS Multi-Donor Trust Fund improves the capacity of current and emerging resource-rich developing nations to use oil, gas and mineral resources sustainably and transparently for poverty alleviation, shared prosperity, economic diversification, and sustainable growth. The EGPS Multi-Donor Trust Fund has contributions from ten donors including Australia, Belgium, Canada, the European Commission, Finland, Germany, Netherlands, Norway, Switzerland and United Kingdom.

EGPS activities support transparency and governance, legal and regulatory reform, institutional strengthening and social and environmental sustainability across the extractives value chain.

The EGPS has supported a number of countries in the region to strengthen their extractives governance arrangements, including Indonesia, Laos, Mongolia, Myanmar, Papua New Guinea, the Philippines and Solomon Islands.

Related links

World Bank Extractives Global Programmatic Support (EGPS) Multi-donor Trust Fund

IMF Topical Trust Fund on Managing Natural Resource Wealth

$8.8 million, 2011-2023

The IMF Managing Natural Resource Wealth Thematic Fund helps low- and lower middle-income countries realise the full potential of their natural resource wealth, while providing support to address the policy challenges of dynamic resource income. Australia has committed $8.8 million over two phases from 2011-2023. Other donors to Phase 2 are the European Commission, the Netherlands, Norway and Switzerland. Phase 2 covers:

  • extractive industries fiscal regimes, licensing and contracting;
  • extractive industries revenue administration;
  • macro-fiscal policy and public financial management specific to resource-rich countries;
  • exchange rate regimes and macro prudential policies; and
  • statistics for natural resources, complementing the implementation of EITI.

This support helps governments to develop fiscal rules which balance the need to encourage investment in the sector while also ensuring appropriate resource rents to the country. It helps countries ensure compliance with tax codes, better manage windfall gains, and avoid overvalued exchange rates which can reduce the competitiveness of the non-resource sector.

Over 30 countries have benefited to date including numerous countries in Africa and the following countries in the Indo Pacific: Indonesia, Laos, Mongolia, Papua New Guinea, Solomon Islands, and Timor-Leste.

Related links

IMF Topical Trust Fund on Managing Natural Resource Wealth

Transparency International

$1.1 million, 2018-2021

Australia is supporting Transparency International Australia to enhance the contribution of mining to sustainable human development. The Accountable Mining Program aims to improve transparency, accountability and effective regulation of mining permit, licence and contract awards across a range of national jurisdictions. Australia’s funding supports Transparency International chapters in Cambodia, Kenya and Mongolia to work with stakeholders to address priority corruption risks. DFAT is also supporting Transparency International Australia’s global thematic projects to address corruption risks at the country level, and to implement gender analysis and mainstreaming work. The BHP Billiton Foundation is a significant co-funder of this program.

Related links

Transparency International Australia’s Accountable Mining Programme

The Kimberley Process

The Kimberley Process is a joint government, industry and civil society commitment to remove conflict diamonds from the global supply chain. It defines conflict diamonds as ‘rough diamonds used to finance wars against governments’ – around the world.

Australia has been a member of the Kimberley Process since 2003 and was Chair in 2017.

Related links

Voluntary Principles on Security and Human Rights

The Voluntary Principles are a set of guidelines that provide a practical human rights framework for the security operations of companies in the natural resources and energy industries. They are a useful risk management tool that increases companies' competitiveness while advancing human rights. The Voluntary Principles Initiative (VPI) is the multi-stakeholder organisation (comprised of governments, companies and non-government organisations) that actively promotes implementation of the Voluntary Principles as a global industry standard.

Australia joined the VPI in 2016 and is the Chair of the VPI in 2020-21.

Related links

* The Department of Foreign Affairs and Trade (DFAT) is committed to high standards of transparency and accountability in the management of the Australian aid program through publishing information on our website, including policies, plans, results, evaluations and research. Our practice is to publish documents after the partner government and any other partners directly involved in the delivery of the initiative have been consulted. Not all material published on this site is created by the Australian aid program and therefore not all documents reflect our views. In limited circumstances some information may be withheld for reasons including privacy and commercial sensitivity.

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