The legal system can be used to define the respective role of extractive companies in the community development process. The requirement of CDAs in fragile states may be of particular importance. If the central government is unable or unwilling to fund development at the community level, a CDA may offer development opportunities that would otherwise not be feasible. One of the challenges in the development of CDA legislation is how to reconcile the respective development roles of government and the minor. Ideally, development efforts under a CDA will be used to complement, not supplant, government-led development. While a CDA – either prescribed by law or voluntarily – does not guarantee that the boom and bust cycle that communities experience when a firm mine is avoided; If the agreement contains sustainable development goals, it is hoped that mine closures will have less impact than the CDA. Miners have always had the opportunity to help the development of the community. The question for the government is whether it is satisfied with giving minors the opportunity to offer development assistance on an ad hoc basis or whether that assistance should be imposed and regulated by law. (5) Subject to the subsection (6), the holder of a large-scale mining lease with all qualified communities that are ready to enter into a complicity agreement must have and implement development agreements.19 – The development activities of the project must be agreed in its CDAs. For many projects, ownership of rights granted during different phases may change. This is particularly the case for the transition from the exploration phase (P.691) to the development phase. An essential element of a CDA law is to define the phase at which such agreements are required and to require that a CDA concluded by a company be respected by a successor company. Many laws prescribing CDAs impose the requirement at the development stage.
The requirement for a CDA in the exploration phase is not feasible, as the nature and location of the resource will be unknown at this stage. Relying voluntarily on business to help community development is risky – not all businesses are good corporate citizens and not all are competent in how to offer such support. For this and other reasons, more and more governments are now calling for the use of CDAs or other Community development instruments in their mining legislation, rather than simply relying on voluntary approaches. While many companies have undermined the concept of enhanced regulation rather than being able to achieve the desired results based on their own resources, most would agree that CDAs, whether mandatory or not, can be a useful tool for managing community expectations.