Towards Sustainable Mining. A Made-In-Canada solution to driving environmental and social performance in mining. July 24, 2013

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1 Towards Sustainable Mining A Made-In-Canada solution to driving environmental and social performance in mining July 24, 2013

2 About MAC The national organization of the Canadian mining industry Mining, smelting and refining of base and precious metals Mining of iron ore, diamonds, uranium, oil sands, coal and industrial minerals Many associate members 2

3 INDUSTRY S DOMESTIC CONTRIBUTION 330K employees; Wages 30-60% above other sectors 138 producing mines, 33 smelters and refineries $9B in taxes and royalties paid to governments in 2011 $22B capital investment in 2012 Largest private sector employer of Aboriginal Canadians Core supplier to clean-technology sectors Attracted 16% of world exploration spending in 2012 Efficient TSX/TSX-V processes over 1,600 mining companies listed, 48% of their mineral projects are outside Canada Minerals account for 20.4% of Canada s total value of goods exports Top five world producer in uranium, potash, nickel, cobalt, platinum, aluminum, diamonds, met coal, tungsten Large direct investment stocks 10% of all FDIC and 9% of CDIA 3

4 CHINA S LONG- TERM DEMAND Long-term is positive: recent price declines from Euro crisis and Chinese slowdown are temporary China today consumes 40% of world s base metals vs. 5% in 1980s Urban housing demand projected at 200 million units by 2030 Autos: 76 per 100 people in US versus 10 in China India to overtake China as growth leader by

5 CANADIAN OPPORTUNITIES Canada has a major (but perishable) opportunity to supply demand from emerging markets Canada is competing with other major or emerging mining jurisdictions (e.g. Australia, Chile, Russia, Mongolia) Canada has the knowledge, experience, political and regulatory framework to be one of the safest, most reliable and environmentally responsible suppliers of mineral and metal commodities.

6 Why Mine Responsibly? There are many reasons why addressing social, environmental and community issues as a core part of operations is good for mining companies: Privilege to operate Performance improvement Risk management Access to capital Recruitment and retention Innovation and learning

7 Towards Sustainable Mining Our Commitment Established in 2004, its main objective is to enable mining companies to meet society s needs for minerals, metals and energy products in the most socially, economically and environmentally responsible way. The program s core strengths are: Accountability Mandatory for all members to report at the facility level Transparency Annual reporting against 23 indicators with independent verification Credibility Includes ongoing consultation with a national Communities-of-Interest Advisory panel to improve industry performance and shape TSM for continual advancement TSM is MAC s commitment to responsible mining that every member commits to implement. It includes a set of tools and indicators to drive performance and ensure that key mining risks are managed responsibly at our facilities. By adhering to the principles of TSM, our members demonstrate leadership through: Engaging with and supporting local communities Driving world-leading environmental practices Committing the resources and leadership to promote the safety and health of employees

8 What is TSM? Off the shelf management system for key mining risks Easily integrated into EMS Backed with guidance manuals Comes with onsite and online training Transparent Credible, recognized as best in class Growing recognition Community of Interest engagement built into the program TSM provides a practical and tangible system of continuous improvement of social and environmental management. Canadian Business for Social Responsibility Source: Canadian Business for Social Responsibility 8

9 Why TSM? Only program for mining in the world with mandatory, independently verified facilitylevel public reporting Standard methodology: Can compare between companies and mines Quantifies performance for historically Hard to quantify issues Mine site reporting offers high resolution for detailed analysis Independently verified results High level of credibility due to Community of Interest Advisory Panel From an investor s perspective, TSM has great value as a very transparent risk management indicator encapsulating best mining practices. Furthermore, TSM s granularity and verified results are material to the integration of responsible mining in the evaluation of an enterprise. Stephen Kibsey La Caisse de Dépôt et Placement du Québec The external verification part of the TSM process has contributed to Hudbay's slow and steady improvements in its operational performance. Shirley Neault HudBay Minerals It is clear that MAC s efforts to work with the industry in advancing its sustainability performance and accountability are paying off in significant best practice. Five Winds International

10 Components of TSM: Focus Areas and Protocols Environmental Footprint Communities and People Energy Efficiency Tailings Management Biodiversity Conservation Management Mine Closure Aboriginal & Community Outreach Safety & Heath Management Crisis Management Energy Use & Greenhouse Gas Emissions Management Community of Interest Advisory Panel

11 TSM Performance Indicators Communities & People Environmental Footprint Energy Efficiency Aboriginal and Community Outreach Crisis Management Planning Safety and Health Tailings Management Biodiversity Conservation Management Energy Use and Greenhouse Gas (GHG) Emissions Management Community of interest (COI) identification Crisis management preparedness Policy, commitment and accountability Tailings management policy and commitment Corporate biodiversity conservation policy accountability and communications Energy use and GHG emissions management systems Effective COI engagement and dialogue Review Planning, implementation and operation Tailings management system Facility-level biodiversity conservation planning and implementation Energy use and GHG emissions reporting systems COI response mechanism Training Training, behavior and culture Assigned accountability and responsibility for tailings management Biodiversity conservation reporting Energy and GHG emissions performance targets Reporting Monitoring and reporting Annual tailings management review Performance Operation, maintenance and surveillance (OMS) manual 11

12 Tailings Management Five indicators: Policy and commitment Tailings management system Assigned accountability and responsibility for tailings management Annual tailings management review Operation, Maintenance and Surveillance (OMS) Manual Three guidance manuals: A Guide to the Management of Tailings Facilities A Guide to Audit and Assessment of Tailings Facility Management Developing an Operation, Maintenance and Surveillance Manual for Tailings and Water Management Facilities Goal is to achieve a rating of A or higher for all indicators: A tailings management policy and system developed and/or reviewed in consultation with COI An executive officer (CEO or COO) who has overall accountability to ensure that tailings are managed responsibly Developed and implemented a tailings OMS manual that conforms with the MAC guide to Developing and Operation, Maintenance and Surveillance Manual 12

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14 TSM Verification System Self-assessment annual External verification every three years CEO letter of assurance posted on MAC website in year of external verification COI Panel Review 2-3 companies each year 14

15 COI Advisory Panel Aboriginal peoples Environmental NGO Economic/community development Social NGO including faith based groups Finance/investment International development Labour/workplace Media/communications MAC Board of Directors Meets twice per year Work of Panel publicly available on the MAC website Annual COI Panel Statement published in TSM Progress Report Junior Mining Company Representative 15

16 Public Reporting Publication of results company specific aggregated for the membership as a whole On website ( Useful for comparison between companies (and peer pressure) 16

17 Performance is improving IAMGOLD s reporting under the Mining Association of Canada s Towards Sustainable Mining (TSM) initiative indicated to us that the company is proactively and systematically managing the risks associated with its tailings facilities. TSM provides valuable and detailed information about an issue that can pose significant operational and reputational risks to mining companies and their shareholders. Irene Sosa, Senior Analyst, Sustainalytics 17

18 Towards Sustainable Mining: Record of Performance

19 TSM is maturing 8 years of self-assessments 2 rounds of external verification Recognition as a credible program New members and provincial interest 19

20 For additional information Pierre Gratton President & CEO 20