The MMDA is a model of negotiations between the host country`s national government and the mining company. Some sections of MMDA 1.0 refer to community agreements, but MMDA 1.0 is not a community development agreement. These are two different instruments that sometimes have to be used together. The MMDA will take the form of a publicly available web product, including several alternative clauses for important contractual points, as well as comments explaining the use of alternative clauses to be adaptable and relevant to a wide range of scenarios that mining companies and host governments face when negotiating any new mining agreement. Therefore, there are no plans to be a fixed political document or to impose a particular point of view. As a result, it has become imperative that foreign investment in the mining sector promote sustainable development while equitably protecting the interests of host governments, mining communities and investors. However, many developing countries have not developed mining codes to address these issues. The MMDA was developed on the basis of a detailed analysis of several dozen existing mine development agreements and following an extensive consultation process with stakeholders and experts in mining law and policy in many countries. The MMDA will serve as the basis for negotiations to improve investment agreements between mining companies and host governments in countries where “mature” mining codes are not available, where a mining code requires a complement through private contracts or as a model of agreements with state-owned mining companies. The MMDA will work to address issues that a potential investor, mining company, government or civil society representative can expect in a fundamental agreement on mine development, such as operational safety, legal security and clarification of government and investor rights and obligations. Third, it is a longer explanation and the fourth is a brief report on the limited search for widely accepted or “exemplary” oil and gas development agreements.
In April 2009, following preliminary discussions with the World Bank, the IBA Committee on Mining Law decided to launch a major project to develop a mining development model (MMDA), based on the principles of international good practice, which would serve as a negotiating model for investor-state agreements in the mining sector in developing countries. The need for such a project is due to differences of opinion between mining companies and developing countries on what an agreement on the development of the mining industry was with best practices.