IGF 14thAGM, Oct 2018: Modern Mining Law and Policy: Accountable, Equitable, Innovative Approaches
I attended the IGF AGM in Geneva, hosted by the UN and found it to be very inspiring to hear of the cutting edge work being done in many countries. These notes are my interpretations of presentations and not direct quotes from speakers. Docs available online are in bold.
IGF (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development), is an organization intent on supporting mining practices that achieve poverty reduction, inclusive growth, social development and environmental stewardship. The top focuses are: Regulatory development, co-ordination with competent government bodies, fruitful debate and joint action between civil society, industry and governments. Secretariat funded by CANADA, hosted by IISD (International Institute for Sustainable Development), and AGM hosted by UNCTAD (UN Commission for Trade and Development).
IGF creates opportunities to network, collaborate and educate. They evaluate a country’s policies and benchmark against best practices (Mineral Policy Framework Assessments have been done for 14 countries identifying gaps in legislation, and offering customized training on environmental management, mine closure, transfer pricing, post-mining transition and socio-economic benefit optimization at no cost).
Session 1: Introduction
There are 79 member countries. The AGM brings together governments, industry, and academics for a technical (not political) discussion on best practices. 73% of resource rich countries are currently undergoing review or revision of mining policy, legislation and regulations. 61% will include environmental and socio-economic agreements, community consultation, and mine closure planning in their laws and regulations. International best practice now includes sustainability and laws and regulations are reflecting this. This is a shift away from laws and regulatory practices that are a defence against past disasters and promotion of economic growth. Guidance for Government Local Content Policiesis the latest IGF research paper (IGFMining.org).
Modernization of mining laws, regulations and policies includes promotion of diversification of industries, procurement of local goods and services, hiring locals, local processing, inclusions of locals in meaningful consultation that influences decision making, and consistency with international standards and quality assurance associations like ICMM, MAC. Industry is looking for consistency between countries, stability, and clearly articulated expectations from civil society aligned with international good practices.
CLIMATE SMART MINING – The new trend to develop mines that are energy smart, forest-smart, and considerate of sustainability.
Lithium demand is going to increase ten fold in a very short period. Also Cobalt, Al, Mn, Platinum Group Metals, REE. This requires new safety regulations, different guidelines.
Robotization also requires a massive reconsideration of operational guidelines and safety regs.
Corporations care about the story of the conditions of workers and impact on locals of the materials they use in their products. Apple pledging not to make components with metals that involved child labour or violence. Tesla makes direct contracts with lithium mines to influence sustainability of production.
Industry needs more transparency and more co-ordinated governance.
Leading law firm for mining or protection from mining is Faskins Martineau, Toronto. They held a seminar on relationship-based engagement featuring Bob Rae and Anne Giardini. (Jeffrey Roberts)
IISD – International Institute for Sustainable Development – voice of civil society
DI – Devonshire Initiative, Toronto. Multi-stakeholder consortium between mineral industry and civil society on international issues.
UNDP – UN Development Program
UNEP – UN Environment Program (Map-X for information management)
ICMM – International Council on Mining and Metals
Session 2: Modern Mining Law and Policy: Global Trends
Kojo UNECA (Natural Resource Management Section, Climate, Environment and Natural Resources Division)
Industry has gone through a cultural revolution:
Laws are shaped by geologic endowment, political, economic and social environments, advances in technology.
Social and environmental impacts are gaining importance with need for sustainability.
Industry is starting to self regulate. International norm setting includes sustainability measures to diversify, add processing businesses, rework and revision tailings.
Current technology is reducing cost of mining and reducing the amount of human employment. This is being rebalanced with higher taxation.
Conventional mining rights delegation echoes colonial attitudes (note: Yukon delegates rights at point of staking). This is also undergoing an evolution.
70s State owned mining rights favoured over private. But failed due to lack of need to be competitive.
80s to 2000 financial world preferred private ownership and more market oriented policies.
2018 is a quantum leap in innovation and technology: value chain, safety and productivity improvements, lower carbon footprint, less environmental impacts and a shift in power relationships between government and industry. Stakeholder participation (off-setting shareholder primacy), and social licence to operate are all new considerations that have become the norm.
Changing demand (Li, Cobalt, REE, PGM, Al, Manganese) needs our attention.
Hilary Morgan, Director of International Policy, Natural Resource Canada minescanada.ca
Canada has several new initiatives/documents to modernize mineral industry:
Future of Mining Policy in Canada
Canadian Mining Policy Framework consultations lead to 130 amendments.
Recognition of Rights(developed with indigenous peoples)
Proposed Impact Assessment ActBill C69
Strategic and Regional Assessments that consider cumulative impacts (possibly in an ongoing way)
Mandatory inclusion of Indigenous Knowledge, funding to increase Indigenous participation, creation of an Indigenous Advisory Committee
Reviewing activities that trigger an assessment
Incentivising industry to drive innovation – a competition with $10 mil dedicated to mining sector.
New position of Global Leadership on Responsible Business Conduct Ombudsman being established.
Tom Butler, CEO ICMM (voice of business)
Evolution of businesses social contract:
70s – pay taxes, provide jobs
2000 – respect community, lower environmental impact
2018 – do good, not just do no harm (social purpose, community engagement)
Consumer brands now want more assurance of responsible supply chains (ESG standards).
Policies like ‘no child labour’ – issues have many more considerations than can be dealt with by a “yes or no” policy. Banning child labour can cause hardship to children.
Challenge of local sensitivities – fpic undermines some principles of sovereignty (low legal status of women, laws requiring no integration).
Member organization regulations can help address sensitivities and legislative gaps – Members cannot operate in World Heritage Sites (WWF)
A strong consultative approach is the new norm. Certainty is threatened when process is weak and investors find that less attractive.
Anglo America 2010 Peru Project included a Dialogue Table open to all. It redesigned and optimized the project in response to community input. This kind of process is hard to regulate (so don’t try). It requires a corporate will to be responsive and a desire to be responsible. “ We need to do well, not just good.” (see Vision 2030 in Peru).
Mutuso Dhliwaya, Zimbabwe Environmental Law Association
African Mining Vision (AfMV)has 4 parts:
- Transparent, equitable and optimal exploitation
- Access to information by all stakeholders including civil society
- Information is power. It needs to be timely, credible and accessible.
- Supports meaningful input
- Manages tensions and conflicts
- Moving from representative to participatory democracy
- Resources belong to the people so they participate in policy decisions and decision making processes
- Moving from representative to participatory democracy
- Shared benefits
- Safe and healthy work environments
- Ethnic inclusion gains community support
- Acknowledge corporate social responsibility
- Stop human rights violations even when intentions were good
- Provide for environmental, social, and cultural rights in legislation
“If you want to go fast go alone. If you want to go better, go together”African elder statement.
Inclusive engagement will find the solutions that are there – that no individual perspective will find or pre-determined regulation can predict.
Companies must consider global norm for best practice and local self-determination to create a unique agreement for each area.
Government sometimes creates limitations based on efficiencies (linear thinking) that limit a company’s ability to use local involvement or incorporate local initiatives. Government ends up increasing taxes because of low local involvement with robotization and battery operated machinery.
Automation increases safety, efficiency, competitiveness and decreases carbon footprint significantly. Less jobs but more meaningful jobs. Companies are looking for ways to ensure communities still see value in mining. Looking to support diverse businesses in the community.
Common feature of all these initiatives is sustainability, transparency and participation.
IFC has standards for Compensation
EITI is a messy but great venue for building relationships, trust, clarification of roots of issues, fuller range of options revealed. A dialogue forum.
LUNCH TALKS Tuesday
#1 Agriculture and Mining: A Case for Closer Collaboration
Both agriculture and mining contribute to social and economic development. Mining provides the raw materials essential for the transition to a low carbon economy (Li, Co, PGE, REE, Mn, Al, Fe). Farming employs over 2 billion people globally. They both face risks of high impact on the land. Why not look for areas where they could mutually benefit each other?
Nick Cotts, Vice President Sustainability and External Relations Newmont Mining
“In our sustainability efforts we look for how to leverage what local communities are doing and further enhance their lives.”
Rather than demolishing the mill at the end of production (big carbon footprint) infrastructure could be designed to naturally transition to a post-mining purpose. Discussions with local community could determine best use of decommissioned mill. This discussion would be part of social licence to operate. (“how might this be beneficial to locals” would be the focus of development discussions rather than a yes/no determination)
Newmont likes to focus on environmental roles for local in the mine; jobs that continue many years after production.
Newmont wants to support locals to have a commercially viable business rather than subsistence living – they have capital looking for good investment opportunities.
Land Use Planning needs to shift from a process of conservation to a cross-sectorial exploration of benefit opportunities. Leverage mining opportunities into other opportunities.
Chris Stewart, head of Sustainability, OLAM (website has many case studies, OLAM Livelihood Charter)
OLAM produces products that depend on farmers for their supply chain (coffee, chocolate, edible oils, etc). They offer loans without collateral, funding to upgrade their equipment, training on the new equipment and methods, modern apps to improve communication and responsiveness between buyer and supplier. This investment in their suppliers ensures top quality products, and a loyal supply chain.
OLAM also assure customers are getting a high quality product from this initiative including low carbon footprint, fair wages. They also become very loyal, buy more product. Win-Win.
Electrification, sanitation, water quality, infrastructure, keeping youth locally employed: these are all issues a community may hold dear and companies are able to support. Important to listen to what they want and find opportunities to contribute.
#2 Standards and the Extractive Economy
New ISSD-IGF publication called Standards and the Extractive Economy(Kristy Disney to send to me). The report analyzes 15 major voluntary sustainability initiatives from the mining sector and public regulation supporting sustainability.
Laura Turley, IISD Associate
The number of industry driven initiatives is rapidly expanding – a new industry norm. When started their research 5 years ago there were a few, then examples started happening exponentially. 158 were reduced to 15 case studies for the report.
They used the same CARE analysis used for the fishing industry (OCEANWISE). (Coverage, Assurance, Responsiveness, Engagement)
Coverage includes environmental, social, ethical, and business issues. What if they recognized each other and looked at interactive initiatives?
Some companies became exempt from audits or taxes because their initiatives were considered a viable alternative system.
Linkages are growing from extraction to final product. Some companies like Apple and Tesla want to know that social standards and community best practices are associated with the raw materials they buy. The steel industry has launched a Responsible Steel Initiative that provides a seal of assertion of best practices.
Mines want to know that utilities will pay a premium for better coal before they incur the costs of better production. This requires buy and sell numbers to be transparent.
Governments should look to support existing voluntary sustainability initiatives rather than re-inventing the wheel or limiting future flexibility. They could focus on playing a role in supporting delivery of sustainability initiatives.
IIFG, SSI (these acronyms were mentioned)
Session 3: Revision of Mining Codes and Laws: Case Studies
Introduction. Mining regulation needs to deal with exploration to closure. There is a need for improved compliance with existing regulations and improved regulations to ensure fair distribution of revenues, promotion of innovation, and increased accountability. This needs to be made explicit in the licence.
In 2010, Brazil had a lack of transparency, slow regulatory process, poor security. Legal instability was due to weaknesses in the regulations (laws were sufficient). New demands for social and environmental responsibility made them further outdated.
Brazil wanted more growth through increased credibility, and innovation.
National Mining Agency became overseen by a new Board of Directors to ensure technical breadth and neutrality.
Mining laws underwent a Regulatory Impact Analysis that recommended increased transparency, increased Financial Requirements for licencing, and more effective implementation of laws.
Mineral Sales Tax – New royalty calculations, rate sensitive to fluctuating metal prices, specified revenue sharing of 10% Union, 15% State, 15% affected municipalities (up from 0%).
Mine closure plan requires compliance with Dam Safety Standards.
2017 Mineral Act – the revisions were to increase modernization, decrease political influence and corruption, increase operational quality and participation, and increase sustainable development.
Also a new Mineral Management Policy (didn’t exist before) – it decentralizes some power to grant a licence to local authority. More opportunities for community participation, more project participation encouraged in licencing.
Incremental and Participative licencing process – able to be responsive to local situations; funding provided for monitoring operations.
Challenges of the new regime is that there is an imbalance with power shifted away from companies. This has hindered some investment.
Some requirements were impractical with excessive regulations and too steep penalties.
Lesson learned is that implementation needs to allow for a period of responsive redrafting (iterative process).
Most of their early codes were drafted by foreign mining companies. Government learned they were not getting fair benefit from their resources and rewrote the mineral regulations in 2015 (after citizens burned down a mine).
Titles of low use returned to the state
Titles forfeit if using child labour, or drugs or forced labour
Contracts registered with a regulator
An environmental fund was established
Social responsibility of companies was defined
Appeals can be made to the conventional courts
World Bank supported an online information sharing system
Session 6: Supervising Mining Practices
UNCTAD Best Practices in Investment for Development: How to Attract and Benefit From FDI in Mining: Lessons from Canada and Chile. http://unctad.org,en/pages/PublicationArchives.aspx?publicationid=453
International Bar Association Model Mine Development Agreements http://www.mmdaprojects.org/
Shared information on government, oil and gas, mineral contracts. ResourceContracts.org
WEDNESDAY: Session 7: Climate Smart Mining
How to make mining sector policies more “climate smart” in response to the changes coming from the Paris Accord.
Word Bank The Growing Role of Minerals and Metals for a Low Carbon Future (2017)
There is about to be a massive new demand for steel, copper (80% more), concrete, aluminum (70% more), manganese, lithium (beryl, tin, tantalum indicators), nickel, iron and cobalt to meet the transition to electric cars, alternative energies, etc. This sustainability drive needs to be accompanied by climate smart mining practices.
Integrate renewable energy into mining operations, supply chains with a low carbon footprint and environmental load, recycle the products of mining needs to be build into mining cycle (Cu, Li, Al, Sn are all recycle-able).
There is a Aluminum Steward Initiative that ensures best practices in extraction, value chain, human rights, biodiversity for this mineral.
Sustainability is now a corporate focal point.
- increase emission controls on any fossil fuels they still use (increases demand for PGM used in catalytic converters).
- Electrification of transportation (Li batteries) I billion Euros being invested in clean methods – BMW and Norvil have an agreement to enhance research on battery recycling
- Battery materials – largely sourced from the Congo. Efforts to sustain supply chain include Global Battery Alliance– a new platform.
- Recycling – Belgium can recycle 21 elements of the periodic table
Partnerships are a new essential element:
Think in terms of the entire value chain, including people of the country where the minerals are mined, company practices and goals, battery assembly plant/car manufacturing plant, recyclers/re-users. All these players need to get together to support each other and the planet.
A company doing exploration decides to fly in geologists. Others make the same individual choice. Helicopter companies make money but locals really needed access routes. For the same collective expense there could have been a road. No mine is found, no residual benefit despite lots of expenditures.
A broader perspective would consider PR, whole chain, industry vision even in a temporary summer project. In a circular economy all players would have a platform to talk to each other and maximize each phase of operations. Government could create systems that reward this kind of collective and interactive actions.
Today we need to consider pre, during, post mining and the after-life of the products of mining.
Session 9: The Relevance of Internationally Agreed Voluntary Instruments for Contract Negotiations
Howard Mann, IGF Secretariat legal advisor on International agreements for Sustainability. (Canadian who came up with the concept of a tripartite international park for Tatsheshini, and did initial concept work with NWT on mining law.)
Karl Sauvant, CONNEX, negotiators for high water mark mining agreements
ISDs (Investor-State Agreements) are customized agreements between business and state that include dispute mechanisms, relevant international law, often convert best voluntary practices into legally enforceable requirements. Also can be an instrument of norm setting that informs the process of law making. “An instrument of influence.”
Guiding Documents for creating ISDs are:
The Voluntary Principles on Security and Human Rights
OECD Guidelines for Multinational Enterprises in the Extractives Industry (Organization for Economic Co-operation and Development, they also published Due Diligence Guidance for Responsible Supply Chains From Conflict-Affected and High Risk Areas).
Companies agree to include principles of these guides into Contracts causing them to become enforceable by law. Challenge is to take broad principles and make them specific enough that they are enforceable.
Company policies on sustainability and consultation can also be referenced as part of International State Development Agreements.
In Biwater vs Tanzania Tribunal recognized Biwater’s online statement and said it has legal weight. Question of enough specificity.
GSP between EU countries on Trade has become a guideline with teeth because people value membership. Vietnam and Laos have been excluded due to breaking of Human Rights Guidelines.
Senegal 2016 Mining Law refers to African Mining Vision as a guiding law. Specific provisions don’t reference it but aspects such as knowledge driven, equitable, environmental protections and local input and sourcing principles have found their way into specifics.
There have been tremendous changes in the last five years where mining laws have gone way beyond mining specific references. It is evolving and best path forward is small steps. For example, initially some governments resistant to talk about HR guidelines because infringement on sovernty. Idea has gradually taken hold by their choice.
Does reference in law to a voluntary instrument weaken the law?
No. It gives a country an aspiration and respects their need to evolve and determine best use of the principle. It gradually finds binding representation in evolving laws (Labour, Land, Water, Transparency Laws – see EITI.
In UK, stakeholders have gained regulatory agency. An NGO raised an issue that triggered a review in a para-judicial process.
NCPs are gaining agency as investors take an interest in sustainability and CSR. There is a stage to make investors aware of a company’s behaviour from a local perspective.
NCPs in Canada organize consultation tables. Export/Import Bank of Canada won’t support companies that refuse to participate.
IFC has teeth even though not legally binding.
Sustainable Mineral Law Reform Process
- Put the key Guiding Principles into contracts with mineral companies. (This is very difficult to do with mineral companies that are not public. Be aware of the reduced pressure on them to conform to best practices.
- Write Mineral Policy with aspirational reference to guidelines
- Gradually include country specific manifestations of the guidelines into evolving law (Mining, Land, Water, Labour).
How have the Guidelines been incorporated into contracts?
African countries use the AfMV in caucus to form a basis of internal solidarity.
IFC attaches funding to activation of voluntary principles.
UN Guiding Principles have been referenced in establishment of community-company relationships
Impresses on company the detailed behaviour associated with best practice. Today companies welcome a defined reference to fairness and best practice rather than having to negotiate each time. Resistant to vague wish lists.
DRC in 2012: gold, tin and tungsten have international standards for production. These voluntary standards are finding their way into legal frameworks.
If state not putting these pressures on the supply chain, Companies can and do make international standards a requirement in supply chain contracts.
Becomes part of the Gov to Minco discussions. Minco can put sustainability issues on the country agenda this way.
Government welcomes industry initiatives because it opens discussion to more creative options (for example, Minco planned an underground train to transport ore to port. Gov negotiated an above ground train with passenger cars to improve people’s mobility within the region. Company planned to build medical facility for staff. Gov negotiated inclusion of medical treatment for entire community. Gov negotiated training/scholarships for locals and metrics to show their progress towards management positions.)
See OECD Mine Guidelines.
Modern Mining Law requires political will to include Sustainability values in law through inclusion of guiding instruments.
In negotiations to achieve political will, use Guides to develop a template that allows politicians to visualize their potential use.
Minco wants to make money. Today, share value is a vital component and these instruments provide evidence of their fidelity to their CSR statements.
Understand the defined resource. Educate people and politicians.
Know values of Minco before entering negotiations.
Choose your negotiation partners (Minco). Good reputations are monetized. Beware of unlisted and temporary (Junior) owners. Set the bar with Minco that cares about its reputation and use that as a standard with others.
Understand the spirit behind non-binding guides, and infuse into specifics of Contracts and Laws.
Investment Contract Template created by International Bar Association (Howard Mann) Model Mine Development Agreement
Review the Table of Contents and remove sections that are well covered by existing law.
Remember to build the “cross walks”
Howard Mann’s advice for YFNs:
Create a common framework with customizations for specific FNs and nature of the deposit. This will prevent YFNs from racing each other to the bottom due to Minco competitive pressure.
LUNCH TALK Wednesday
#1 Management of Digital Information
Digital Platforms for Extractive Industries
Extractive Hubs– a UK company supporting finding relevant information; knowing what to trust; how to navigate digital overload.
Frame the relevant question.
What factors attract/deter investors?
World Bank Open Knowledge Repository
Statistics Canada – global production numbers
RAW Talks – a website with TED-type interviews for mineral industry
Extractive Hub – info organized by country, a database for comparative analysis
AMLA – compares legislation of African countries. Promotes transparency and legislative compatibility
CCSI – community-investor contract repository with a summary
Natural Resource Governance Institute (World Bank) –rates a country’s governance (Alberta is only Canadian jurisdiction participating)
Fraser Institute –rates mineral endowment and country’s policies
To find an expert:
GOXI – World Bank Platform for dialogue
CCSI Negotiations Portal –information on contract negotiators
UNEnvironmental Protection –Minco business interests and bio environmental information create a challenge to make company open source and relevant. Public vs private data challenge. This platform has the potential to generate trust and preserve anonymity.
Morrison International Finance Corporation document From Disclosure to Development
IFC project with BHP case study
Credible, timely information
Uses existing data to address challenges
Improves information delivery
Map-XUNEP map based information system (youtube introduction)
Session #11 – Leveraging Innovation for a Sustainable Mining Sector
Alex Crawford Moderator: “industry prefers to be fast followers”
Marcela Angulo Gonzalez, Head of Technical Developments Division CORFO, Chile
See 2015 Roadmap, updated in 2018.
Crucial role of government is to foster local content as rapid changes are occurring (mechanization, robotization, sustainability). CORFO seeks to create an ecosystem of industry, suppliers, R and D, public sector authorities and universities. They established community forums to flesh-out their common vision. They want to address challenges by creating a robust innovative and collaborative environment.
Transparency Tailings Initiative – quality, reliable, real time information on chemical and physical stability available to all stakeholders.
Tailing Consortia – seeing waste as a resource to extract high value minerals by reworking tailings (REE, Co, Mo)
Creates the ability to redeposit bad tailings storage in a more sustainable way
Mining Open Innovation Platform for Supplies Development– developing suppliers capacity at the same rate as defining/developing mines.
Inter-operability is the new principle of having equipment that can perform several functions – facilitates bench testing and speeds up production
Chile Vision 2030
Aspires to be the World’s Lowest Carbon copper producer (eg Atacama Dessert’s GoldCorp and Teck Nuevo Union Mine)
H2 to replace carbon fuels – duel combustion H2 diesel for trucks, hydrogen fuel cells for underground.
Created an alliance with BMW to design and produce better mine transport systems
World’s largest Lithium producer
-declared Li a state owned mineral, and held a competition for extracting and marketing Chilean lithium.
Contribution fund for R and D through a royalty
Interested in advanced materials for NRG storage (secret electrolysis process in the works – nitrogen by-product will be used for blasting)
World Class Supplier Model
Innovation in supply chain management
CODELCO FCH – https://fch.cl/main-actors-of-the-world-class-suppliers-program-met-at-fundacion-chile/
Scott Yarrow, Vice President of Sustainability, Glencore
Companies are resistant to change because planning is 6 years ahead of production. What they plan today could be obsolete by the time they go to use it if it is new technology. However, rapid change becoming a norm, and potential for cost reduction is so great, access to new resources (greater depths for eg), and reduced carbon footprint make looking at modernization a requirement of mining today. Needs an attitude of being responsive and growing with the technology. Start small and learn from experience.
Onaping Depth Project 20122 – Sudbury Ni, Co new astrobleme target is 2.6 km deep. The World class target near surface ore is running out. Remaining reserves sit deeper where mining is more complicated – unless you can use remotely activated, battery operated robotic equipment.
Complications of working at depth include rock under great pressure which becomes dangerous when you open up space; host rock temperature of 52 C; tough to get air to depth (compression increases air temperature).
Benefits of new tech are so great Glencore willing to risk not knowing that it will be ready when they are:
Robot run vehicles eliminate danger to miners; battery powered means less ventilation required (no diesel exhaust), can work in smaller spaces if ventilation not required (40% cost savings); if not heating and cooling to human tolerance 40% savings in ambient temperature costs; new technology means running down the ramp loaded can regenerate the batteries – redesign mine to work from the bottom – regulation need to catch up with technology (current Ontario regs require 96 ofn/hp based on assumption of using diesel – company looking for an exemption from this requirement since obsolete with battery equipment). Working directly with equipment manufacturer to make vehicles ideal for the job (OEM). Less noise and heat when working with humans.
One challenge is that tech cannot yet scoop and lift a bucket (I believe this is done by a remote operator like in a video game)
Numerous benefits being discovered.
Potential for 40% improvement in productivity because no need to clear mine for blasts, one piece of equipment can do several jobs, no diesel particulate matter to clear, operators are safer, 24 hour mining; a fraction of the employees (less travel, food, accommodation, managers, social problems, more predictability).
Glencore sharing their experiences with other companies to allow them to benefit from their experience and further the Clean Mining movement. (Note to self: clean mining also means less local jobs. Needs to be balanced with Minco looking for ways to use their resources to benefit diverse initiatives. Locals must know what kind of supports they are interested in – this is a huge mind-shift)
100% off -grid. Currently diesel is delivered by ship. Installing wind generator to reduce diesel needs. Construction challenges at -45 C, with permafrost. Can’t use concrete in the permafrost because difficulties in setting concrete.
Developed a spiderlike base that has stabilizing compartments that are filled with local material (I wonder if freezing adds to its stability). One windmill = 2.3 million barrels of diesel a year.
Also experimenting with a hydrogen circuit and fly-wheel for storage of 300 kW. Encountered difficulties due to cold temperature but believe they can overcome.
Plans to build a windmill/storage system for local community when they have the bugs worked out.
Vanessa Ushie, African Natural Resources Centre of the African Development Bank
Robotization will mean less employment and less benefit to the local community. Diversified economies are best equipped to respond to change. Fewer people working means less food, less mining jobs, less travel… less local low skilled jobs)
Australia has established the Mining Skills Council. Chile is replicating it. Preparing people for advanced jobs, working towards inclusion of women, facilitating start ups of circular economy spin off jobs.
60% of kids today will be doing jobs not yet invented.
Session #12: Promoting Responsible Supply Chains
Key responsible supply chain initiatives and the role responsible government can play in supporting them. Much of the discussion around responsible supply chains has focused on voluntary standards. Countries can increase their competitive advantage by developing, adopting and enforcing regulations that work with the standards.
Today there is a desire among mineral companies to be able to answer the question “Can you demonstrate that metal has been mined responsibly?” This makes the following initiatives meaningful.
DBG has produced Due Diligence Guidancedocument.
IRMA has Mine Site Level Standardsdocument.
Mining Association of Canada (MAC) has Towards Sustainable Mining (TSM) document.
recommended to be included in mining laws to make voluntary good practices requirements.
Offers potential for operational and reputational improvements
Apple has Supplier Responsibility Standards
NewResponsible Steelcertification. Level 1 guarantees labour rights, government ethics, tailings standards, no child or forced labour, community engagement… all independently verified.
Responsible Minerals Initiative(Tesla is a member)
RESOLVE formed a partnership with ARM to write a doc on responsible artisanal mining
(side-bar interesting article in mining.com http://www.mining.com/web/australias-world-class-minerals-industry-shows-global-leadership-sustainability/)
Vivaswath Kumar, Tesla Supply Chain Manager (Chatham House Rules apply)
Tesla expects 100% growth in consumption per year for the foreseeable future. They visit every mine that produces the metals they use (Li, Al, Ni, Mn) demanding a high standard of behaviour in production. This is becoming a trend for all manufacturers.
BMW is now directly sourcing their products as well.
London Metals Exchange is adopting a standard of rigour for their warehouse metals including battery metals.
In short, there is a new environment where manufacturers are taking personal responsibility for the environment in which the materials they use are produced. This is accelerating the Sustainability and Clean Mining initiatives of the mineral industry, and modernization.
THURSDAY Session 15: Environmental and Social Impact Assessments (ESIA)
Meaningful and informed community consultation needs to occur throughout the mining cycle exploration, development, production and closure).
Suzy Nikiema, International Law Advisor, IGF
- lack of clarity in ESIA and Permits
- timing of transition from exploration to exploitation, ie. timing of granting the right to mine
- closure plan not started from the beginning of development planning
- automatic approval of ESIA if no response in a specified period of time
IGF doc on ESIA Background Work (Kristy Disney researcher)
Cathryn MacCullam, SKR Consulting
Meaningful consultation cannot happen when Junior and Mid-tier mining companies contract out community consultation. They produce a list of barriers and focus on requirements to start a mine. They do not develop a relationship between communities and developer.
Barriers include Ebola outbreak that limits meeting attendance and throw off schedule, cyanide leak that can be fixed but loss of trust with the community. Major problem is that local geologists often leading the engagement process and focusing on sharing geology information; IBA full of vague “would” and “should” that are not enforceable; government doesn’t share benefits with locals and community goes after the mining company.
Terms of Reference for ESIA need to include full and effective community profiling including community context, political and economic drivers, local values, power determinates. This will put people and what they value at the centre of the process. People must be seen as the source for answers – the question needs to be how to support what they value. A two way dialogue builds trust.
Rob Verheem, NCEA Netherlands: an arms length advisory body to Dutch Government on quality of Socio-Economic Agreements and Environmental Agreements
They will review, and assess effectiveness of ESIAs for a government as a tool for supporting good engagement at an early stage.
Rapheal Benke, Proactiva Results: Macroeconomics expert
Evolution of ways to look at the ESIA process:
- process of licencing includes ESIA which is an obstacle to overcome
- process of licencing includes ESIA which is a mechanism to optimise design and development of a sustainable mine
– mine requirements are the axis of discussion (railway, port construction,… with low carbon footprint and social impact)
- ESIA is the central hub for all development/production processes and activities
- Consider other properties and activities in the area and look for mutual benefits
- Look for ways mining assets and knowledge can benefit other sectors such as farming
Looking to create interactive discussion rather than gates that need to be unlocked to gain free access.
FPIC is interesting. Companies don’t want to open the door to this discussion because communities might say no. In other words, they want the ability to go ahead even if the community doesn’t see a benefit to them.
There needs to be the frame of mind that companies and communities will keep working together to find a plan that is workable for all.
Communities don’t like FPIC because it implies consent is a one-time green light. It needs to be seen as an ongoing dialogue.
Does good governance mean that if you get a permit you can go ahead and do whatever is within your permit?
Or, can companies change how they receive ESIA feedback and permitting? If a company cares about sustainability it is grateful for the information that a ESIA provides – respondents are benefitting them with awareness of something they missed. They will make changes despite any rights or permits they have acquired.
Session 16 – How Governments Can Promote Engaging Communities in the Mining Life Cycle
“create spaces for radically honest discussion”
“genuinely believe in the power of collaboration”
“if we come together with an open mindset, we can find creative options”
Need government to be involved in discussions and for people to be at the centre.
Session 17 – New Technology – New Deal. What Lies Ahead?
Mining is becoming a collaborative effort between company, community and government.
Richard Morgan, Head of International and Government Relations, Anglo-America:
No longer business as usual. Anglo-A aspires to take mining to a bold new place. Purpose of their company is to re-imagine mining as a benefit to people’s lives. Future Smart is finding ways to be less intrusive in local communities (less dust, less noise, less water use). Counter-act less job opportunities as a result of robotization with ways to support diverse jobs in the region. Look holistically for the wider positive impact. Rather than measuring what you spent, measure the good you are able to do. Dead-end jobs don’t help anyone so we can’t keep with the old ways.
- repurpose yourself for community use
- look at technology in all kinds of new ways
- be transparent to reduce shocks
- go beyond compliance and think holistically
Thursday Lunch: Best Practices for Government-Community- Industry Relations: Flavia Milano – Argentina IDB Operations and Civil Society Senior Specialist with the inter-America Development Bank
We need to change the narrative. Currently community is asked to approve or disapprove (yes or no). Instead we need interactive and ongoing discussion about how this would work. (IADB reportsoon available in English)
Examples of places where citizen engagement was integral to the project include Teck/GoldCorp Nueva Union project in Chile (early participation to answer questions like what does the community want? Through processes of open dialogue, collaboration and participatory monitoring (see Orcopampa, Peru, Au, Ag project; San Xaviour Project Mexico (comprehensive closure plan).
Session #8 New UN Tools to Support Sustainable Mining Policies
Uyanga Gankhuyag, Extractive Industries, Bangkok Hub, UN Development Program
The legal framework needs to be oriented towards sustainable development
Inconsistencies and contradictions in laws undermine people. A country has $900 million in current legal claims against it, which is more than the potential tax benefit from the mineral extraction.
Over-protecting shareholder rights puts an emphasis on short term financial gains and is de-humanizing.
As the employment benefits of mining are eroded (robotization), fiscal benefits need to increase.
Countries need to manage the volatility of revenues:
Invest revenues to spread out benefits (Norway example)
Companies to use their resources to provide benefits to diverse businesses (Social Investment Strategic Inclusion)
Harikrishnan Tulsidas, Economic Affairs Officer, Sustainable Energy Division, UN Economic Commission for Europe
We need to change the story – beginning with the language we use.
Extractives Industry, Commodities, Mineral Exploitation, Resource Value Chain: all highly objective, de-humanizing, production focused terms.
UN Resource Management System is looking at neuroscience and geology. Creating a new story. “Instead of top-down, think of it as inside-out.”
“Humans are the real Wealth.”