Materials Stewardship in the Mining and Metals Industry
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1 Materials Stewardship in the Mining and Metals Industry Ben Davies Joint International Study Group Meeting - Lisbon 14 th May 2007 Overview 1. ICMM SD Framework 2. The concept of Material Stewardship for ICMM 3. Drivers for implementing MS 4. The ICMM MS Framework 5. Concluding remarks
2 ICMM - Corporate Members Committed to improving sustainable development performance and to the responsible production of the mineral and metal resources society needs ICMM Association Members Camara Minera de Mexico Chamber of Mines of South Africa Consejo Minero a.g. Eurometaux Euromines Federation of Indian Mineral Industries Indonesian Mining Association Instituto Brasileiro de Mineracao - IBRAM International Aluminium Institute International Copper Association International Lead Zinc Research Org n International Wrought Copper Council International Zinc Association Japan Mining Industry Association Minerals Council of Australia Mining Association of Canada Mining Industries Associations of Southern Africa Nickel Institute Prospectors & Developers Association of Canada Sociedad Nacional de Mineria de Chile Sociedad Nacional de Mineria y Petroleo The Cobalt Development Institute World Coal Institute
3 Context: Improving performance through ICMM s Sustainable Development Framework 10 Principles Public Reporting Independent assurance ICMM s Sustainable Development Framework is mandatory for ICMM corporate members and covers a range of sustainable development issues, including: Health and safety Human rights Social, economic and institutional development Environmental and biodiversity protection Materials stewardship Materials Stewardship - Objective Materials Stewardship is intended to assist ICMM members in understanding and influencing life-cycle aspects of the materials they produce. It supports a number of ICMM s SD Principles, in particular: # 8 facilitate and encourage responsible product design, use, re-use and recycling and disposal of our products and # 5 seek continual improvement in our health and safety performance # 6 continually seek ways to improve environmental performance
4 The Concept - Shared Responsibility The overall concept of materials stewardship is built on the premise that we have a shared responsibility for the performance of the whole materials cycle we are part of, well beyond our direct operations ICMM Canberra Workshop April 2004 Knowledge of the value chain can help identify key partnerships and actions that will improve the overall stewardship performance of material(s) Applying Materials Stewardship MATERIALS STEWARDSHIP Taking actionstewardship activities taken on by individual companies and where appropriate in concert with other actors in the value chain ACTION UNDERSTANDING Understanding social, environmental and economic benefits and impacts RELATIONSHIPS Developing relationships - with actors along the value chain to promote beneficial uses and minimize risks
5 Scope of Materials Stewardship. Figure adapted by Five Winds International from: the minerals cycle in Breaking New Ground the Mining Minerals and Sustainable Development Final Report, Earthscan Publications, Maximizing Value Guidance Document 1. Take a Systems Perspective Understanding material flows and life cycle benefits 2. Build new and strengthen existing relationships Interacting with other players in the value chain 3. Optimize the production and application of minerals and metals Implementing Eco-efficiency 4 Key Themes»» 4. Contribute to a robust, accessible base of information to support decision making Transparent sharing and reporting of data and information
6 Drivers and Business Value Market Development - sustainable materials Public commitments ICMM - SD framework Cost Savings - eco-efficiency Competition and market access materials of choice Regulatory Compliance stay in front of trends Reputation Maintaining license to operate Example Regulatory shift to more sustainable production and consumption Regulations to reduce the end of life environmental burden of automobiles and electronics have been initiated in various jurisdictions. This is putting pressure on manufacturers and material suppliers to consider how material selection will facilitate increased recycling downstream. End of Life Vehicle (ELV) Directive WEEE and RoHS Directives Automobile Recycling Law
7 Noranda (now part of Xstrata) and HP In 1997, Noranda entered a strategic partnership with Hewlett-Packard, (HP), to recycle obsolete computers and other end-of-life electronics equipment Established three material separation plants - two work directly with HP Formed Noranda Recycling in 2003 efforts have led to the recycling processes accounting for one-fifth of the Noranda group s total output of refined metals. The metals captured through the recycling processes are transported to smelting and refining operations to be processed along with concentrates from mined ore. HP - recognizing the environmental and social cost of disposal, established take-back initiatives urging customers to return unwanted equipment for proper recycling. Although recycling is typically a low-margin business, the high volume of obsolete computers and other equipment supplied through this partnership make the process feasible. The ICMM Framework Overall concept Principles and policies Initiatives Extension strategy Implementation Strategy and Guidance Internal strategy
8 ICMM Materials Stewardship Policy To support activity (within the sector and throughout the materials life-cycle) ICMM has adopted a Materials Stewardship Policy which will provide: 1. Guidance for implementation 2. Education 3. Materials Stewardship Indicators 4. Outreach strategy 5. Commodity Specific Plans 6. Complementary Responsibility MS Roundtable ICMM Materials Stewardship Policy from Policy to Action These six principal elements will complement specific projects of the Integrated Materials Management Program. Work on life-cycle assessment, eco-efficiency, recycling, chemicals management and risk characterization is already underway and will provide additional guidance, tools and capacity for implementation of materials stewardship.
9 Conclusions Drivers and Market Demand for sustainable materials are increasing Materials stewardship is an emerging concept within ICMM Completion of guidance document for our members is the first step in the evolution of the concept Development of extension strategy for outreach to downstream users of minerals and metals Identify opportunities for collaborative responses to the concept of materials stewardship ICMM welcomes expressions of interest from external stakeholders in the materials stewardship framework being developed here
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