Juruti Bauxite Mine. International Seminar about Mining and Socioenvironmental Sustainability in Biosphere Reserves

Transcription

1 Juruti Bauxite Mine International Seminar about Mining and Socioenvironmental Sustainability in Biosphere Reserves 1

2 Agenda Alcoa Juruti: the City and the project Juruti: Sustainability strategies and actions Commitments 2

3 Global leading company in Aluminum Industry Founded in 1888 A world leading producer of primary aluminum, fabricated aluminum and alumina 61,000 employees in 30 countries 3

4 The Miracle Metal: Creates Unique Value for Diverse Applications Transportation Packaging Building & Construction Aerospace Oil & Gas Consumer Electronics Advantages of using Aluminum Lightweight Recyclable Non-corrosive Fuel Efficient Malleable Durable High Strength Highly Conductive 4

5 Economic Success Alcoa s Model of Sustainability Transparency Ethics Governance ABS Alcoa Business System People Make it happen Products Make to use Process Avoid waste Environmental Excellence Values Integrity Health, Safety & Environment Innovation Respect Excellence Principles Stakeholders Customers Employees Communities Shareholders Suppliers Partners Social Responsibility 5

6 Strategic Themes 7+2 Stakeholders Engagement Transparency and Responsibility Local and regional development Access to energy and efficient use People development and workforce relations Waste management & emissions Conservation & Biodiversity Value chain: Sustainable procurement Water management Usually sustainability was related to EHS and Community Relations divisions. Current requirements imposes more than that Sustainability give an opportunity to an integrated approach, as expressed by the 7+2 strategic themes Sustainability must be part of the company business plan as well as a commitment to the social license 6

7 Agenda Alcoa Juruti: the City and the project Juruti: Sustainability strategies and actions Commitments 7

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11 Juruti: a small city located in the Amazon core in the far west of the Pará State Juruti Population 1 : 47,000 inhabitants spread amongst 200 communities (55 in Project s direct area of influence) Pará State 12-hour boat ride from nearest urban center (Santarém) Brazil Average monthly per capita income: Juruti $34 (Brazil, $1000; US, $3,900) Economy: Based on cassava farming, fishing, livestock farming, Brazil-nut tree extraction, subsistence agriculture Human Development Index 2 : 115 th lowest in Pará out of 143 municipalities Illiteracy: Juruti 8,5% for people with ten-year-old or more Juruti City 1) 2010 Census 2) HDI measures life expectancy (education and income) 11

12 Communities around the Project Highway Railroad Communities with Alcoa s actions Other communities 12

13 Juruti Bauxite Mine 4 1- Mining Strip-mining method Capiranga plateau: first area being mined 3 2- Beneficiation Crushing Washing (breaking-down, sieving, cyclone and filtering) Tailings Pond Storage yards 1 3- Railroad 33-mile (55 km) long One locomotive and 40 wagons (80-ton capacity each) 9-mile stretch (15 km) running in parallel to State Highway 2 4- Port Located next to town on the right bank of the Amazon River 13

14 Agenda Alcoa Juruti: the City and the project Juruti: Sustainability strategies and actions Commitments 14

15 Juruti Bauxite Mine foundations for sustainability Business Requirement Competitive bauxite Environmental License Control Plans and other legal commitment Social License Community and general population daily consent Those foundations ensure the Sustainability of Alcoa Juruti 15

16 It all starts with bauxite Significant Reserves Third highest quality bauxite reserves in the world High Quality Juruti mine has high quality bauxite with Al2O3 content of 47% and reactive silica of 4% Foundation for Growth Juruti Mine current capacity 4 MTY Alumina Leadership Juruti helps to contribute for many years to sustain Alcoa leadership position in the global alumina market 16

17 Licensing commitment As a result of continuous dialogue with the community (public hearings, meetings, workshops, visits, work groups and communication tools), following commitment of licensing process: 35 Environmental Control Plans Physical and Biotic (20) Social and economical (15) Collective Compensation Compensatory actions for those communities living at Project s Direct Areas of Influence, particularly those close to Railroad, Highway and Mining areas Losses and Damages Studies for Juruti Velho Association Communities Studies that will support the calculation for compensatory payment for those communities living at Project s Direct Areas of Influence, particularly those close to Mining areas in Juruti Velho Region 17

18 Sustainable Juruti Model Sustainable Development Indicators Local and Sustainable Development Agenda Sustainable Juruti Council (Conjus) (Civil Society, Public Authorities, Companies) Local and Regional Development Fund (Taxes, Charges, CFEM, Private Social Investment) 18

19 Sustainable Juruti Model: The Sustainable Juruti Council (CONJUS) A network of civil society organizations, government agencies and companies oriented to the local sustainability Board of Councilors comprised of 15 representatives: three from the public sector, three from the private sector and nine from communities and NGOs Open Letter for Sustainable Juruti : a collection of proposals for local sustainable development, organized on eight themes: education, health, rural development, safety, infrastructure, citizenship, job and employment 19

20 Sustainable Juruti Model: Sustainability Indicators 27 indicators related to the Environment, People, Society and Infrastructure Metrics to be used to measure growth in the municipality and support policy making and investment Results issued bi-annually First Edition October Second Edition December

21 Sustainable Juruti Model: The Sustainable Juruti Fund (FUNJUS) Improve human, social, economic and environmental capital standards Raise strategic funding to leverage sustainable development in Juruti in the long term. Complementary funding: Alcoa and voluntary partners Seed Money: initial funding from Alcoa: R$ 2 million. Focusing civil society s projects and partnerships Currently funding 21 projects US$ 300,000.00: 21 projects: craftworks, gardening, fish farming, turtles conservation and environmental education, among others 21

22 Strategic actions benefiting population Positive Agenda Complementary actions Direct benefit to Juruti communities Aid for attenuating city s historical needs Partnership with community and local authorities Hospital and remodeling on existing health care first-aid center Health Basic Units Childhood Defense Council Major Items Judiciary complex Public schools classrooms Military police s lodging facilities Police station City urban infrastructure Rural infrastructure Concluded items 22

23 Juruti to build new standard in community relations and mining paradigm in the Amazon Changes in Juruti community before and after Alcoa s mining project Sustainability Local Economy As of % acceptance by local population Positive Agenda: physical transformation Sustainable Juruti Model: Council, Fund and Metrics Economy based on cassava farming Brazil-nut extraction and fishing Today 91% acceptance by local population Sustainability Model: fully operating Most of the social and environmental projects implemented Growth in local trade Incentive to local/regional suppliers Economic diversification Taxes helping to boost local economy Tangible facts that Alcoa has planted the seeds for sustainable development in Juruti and endorsed by stakeholders: Operating Licenses awarded (2009)/renewed (2012) Opinion polls: region s population accepts/is neutral about Juruti enterprise ( %; %) Alcoa helped State Environmental Agency redefine environmental compensation contribution guidelines Government/NGOs/communities: active participation in Juruti Sustainable Council Labor Agreement with Miners Trade Union (2013) Average 80% local people working at Mine (direct and contractors) Alcoa being named Sustainable Company of the Year (2010) One of the Model Companies in the Exame Sustainability Guide for six times 23

24 Agenda Alcoa Juruti: the City and the project Juruti: Sustainability strategies and actions Commitments 24

25 Commitments 1. Declaration of the President s "Corporate Social Responsibility and Human Rights ; 2. The Alcoa Code of Conduct; 3. The Business Pact for Integrity and Against Corruption Ethos; 4. Charter of Principles Associated with the Ethos Institute for Business and Social Responsibility Confronting sexual violence against children and adolescents; 5. Covenant Action Defense Climate CEBDS; 6. U.S. Climate Action Partnership or United States Climate Action Partnership (USCAP) (Alcoa Inc.); 7. Open letter to Brazil on Climate Change; 8. Position Paper on Climate Change CEBDS-developed by the Brazilian Business Council for Sustainable Development, joined the World Business Council for Sustainable Development; 9. Copenhagen Communiqué; 10. The principles and values of the Green Building Council; 11. The Letter of Commitment of the Members of the Sustainable Amazon Forum; 12. Business Movement for the Protection and Sustainable Use of Biodiversity; 13. Code of Ethics Institute of Environmental Lights Brazil; 14. The Principles of Aluminum for Future Generations program of the IAI (Alcoa Inc.); 15. The ICMM Principles - World Council for Mining and Metals (Alcoa Inc.) 25

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