Building capacity for sustainable extractive industries

Transcription

1 Mining and mining policy in the Pacific: history, challenges & perspectives Noumea, New Caledonia, Nov 2011 Building capacity for sustainable extractive industries Jean-Christophe Lefeuvre Conrad E Savy Mahlette Betre Center for Environmental Leadership in Business

2 What is the role of mining in the global economy? What are the linkages between mining and nature and why is this link important for the sector? The importance of mining in New Caledonia Why is New Caledonia important for biodiversity and how does this relate to mining? CI s vision for engaging the mining sector: going beyond do no harm to being a good steward for nature A way forward in New Caledonia? Outline

3 Despite recent global financial crisis, the mining sector continues to be a leading industry (PWC 2010) Top 40 companies in 2010: net profit = $110 billion, revenue over $400 billion Attributed to: rising commodity prices, rapidly changing technologies, economies and regulations growing demand from emerging economies China, India, Indonesia and Brazil Constrained supplies = complex projects, developing nations and more remote regions ICMM 2010 notes these regions identified as priorities for biodiversity conservation. Tremendous economic opportunities but also ecological and cultural threats if not developed in a responsible way Mining in the global economy

4 Mining has the potential to affect nature biodiversity and ecosystem services, throughout the life cycle of a project, from exploration to closure. Examples of negative direct effects include: clearing of native vegetation leading not only to direct losses but also to fragmentation of habitat from activities such as access road construction or exploration drilling; contamination or pollution of air, water and soils from tailings (waste) disposal or smelter emissions; rainfall runoff from disturbed land leading to soil erosion, turbidity, siltation or pollution of local streams; introduction or spread of invasive species, pests and diseases of native flora and fauna; changes in groundwater levels through mine de-watering; exposure of acid generating rock or subsoil that can lead to contamination of waterways with acid and metals Mining & nature: direct impacts

5 Indirect impacts More difficult to identify, can result from social or environmental changes induced by mining operations. Involve interactions between the mining operations, its workforce and local communities. Examples: opening up access to remote regions to migration and settlement which can lead to increased pressure on local natural resources Mining activities not only affect the natural environment but also depend on services provided by ecosystems as key inputs to products and production processes e.g. freshwater posing a limit on Chile s mining industry Mining & nature: indirect impacts

6 There is a great deal that companies can do to minimize or prevent these impacts. Companies can contribute positively to biodiversity and ecosystem functioning in and around areas of operations and understand their dependence on ecosystems. Increasingly more mining companies are recognizing biodiversity as a key Corporate Social Responsibility issue and have developed voluntary programs and commitments towards biodiversity and ecosystem conservation (i.e. Rio Tinto, Newmont Mining, BHP Billiton, Anglo American). business reasons to institute these initiatives and commitments maintaining access to: land, sea and related natural resources (directly or through supply chains); legal and social license to operate; capital and insurance; markets for products (old and new); human capital; a seat at policy development dialogues Mining & nature: a positive force

7 New Caledonia has the longest history of mining in the Pacific islands, with major mine sites for nickel, cobalt, iron, and chrome. Nickel in New Caledonia 25% of the world's known nickel resources over 90% of export earnings Third largest global producer Strip-mined: over 500 mill. tonnes of overlying material have been removed. NC government is committed to correcting environmental problems associated with mining activities Average area cleared = 20 ha per mill. tons of ore produced. 5 mill. tonnes of ore per year = 25 mill. tonnes of tailings Thio mines produced 20 million tonnes of ore, 100 million tons of tailing.(escap 2003) Mining in New Caledonia

8 New Caledonia is one of 34 recognized biodiversity hotspots Unique geological history lead to plants and animals adapting to unusual environment with heavy concentrations of several metals. Nearly 75% of the native flora is endemic to the island (90% in mining shrubs) As in Galapagos Islands, reptiles dominate among vertebrates, with 85 species of lizards of which 83 % are endemic and 67 % considered as endangered (IUCN 2011). Many endemics known from only a few specimens, geographic range limited to few square kilometers or less. Island scape with World Heritage lagoon belt New Caledonia s natural heritage

9 Conservation International engages the mining industry and related stakeholders in government, finance and civil society, on a number of fronts intended to drive better practices by the sector. Since our first engagement in 2000, this engagement has spanned major financers, industry associations, government agencies, conservation practitioners and eleven of the world s largest companies in South America, Africa and Asia- Pacific. Companies: Alcoa Inc., Anglo American, AngloGold Ashanti, ArcelorMittal, BHP Billiton p.l.c, De Beers, Gold Reserves Inc., MPX, Newmont Mining Corporation, Rio Tinto, Sheritt International Corporation, Xstrata p.l.c Countries: Botswana, Brazil, Colombia, DRC, Ghana, Guinea, Liberia, Madagascar, New Caledonia, Peru, South Africa, Suriname, Venezuela CI s experience

10 Over a decade of experiences, we have become immersed in the sector and our strategy for changing company practices has settled on three interlinked types of action: incentives that drive commitments to good practice; tools that facilitate implementation of good practice; and projects that successfully demonstrate and test best practices on the ground. Incentives: drivers for best practice Projects: demonstrate & test best practice Tools: implement & facilitate best practice CI s approach

11 Incentives for good practice are critical to ensure companies, via internal decisions or external pressures, are aware of what good practice is and commit to achieving it. Incentives can be external (e.g. lenders or governments) or internal (e.g. corporate policies or industry association commitments) Key examples for mining: Financing conditions & safeguards: International Finance Corporation (IFC) Performance Standards Corporate policy with a company e.g. Rio Tinto s Net Positive Impact commitment to biodiversity Industry association commitments e.g. International Councils for Mining and Metals (ICMM) Principles & Positions National regulations e.g. Western Australia s mining and environmental laws Market incentives e.g. Walmart s LoveEarth jewellery Incentives

12 International Finance Corporation (IFC) Performance Standards. World Bank Group s private sector lending arm 8 Performance Standards covering labour conditions, community health, indigenous rights, biodiversity and culture. Direct impacts via individual projects e.g. Rio Tinto s Simandou Iron ore project in Guinea Indirect impact via voluntary adoption by other influential lenders e.g. 73 private sector finance institutions of the Equator Principles Finance Institutions (EPFI); 47 European development finance institutions & export credit agencies within Organization for Economic Co-operation and Development (OECD) CI & partners worked with IFC on recent update to align with current conservation practices e.g. promoting no net loss & net gains in critical habitats; adherence to the mitigation hierarchy with biodiversity offsets as an option where appropriate; use of external expert review Incentives: an example

13 Incentives are an important first step on the road to good behavior but rely on appropriate tools, in the form of information, guidance or training to ensure their implementation. Conservation International and its partners have worked on a number of efforts e.g. CI s guidance for large-scale mining Lightening the Lode (CI, 2000) - among first for industry Integrated Biodiversity Assessment Tool (IBAT) for business direct response to business needs for better information in early project cycle when mitigation may have the highest benefits and lowest costs. Alliance between: BirdLife, CI, IUCN & UNEP-WCMC Integrated database for key biodiversity areas, legally protected areas and threatened species Many subscribers in extractive industry (e.g. Newmont, BHP, Rio Tinto, BP, IAMGOLD, etc) and major banks e.g. IFC, JPMorgan Chase, InterAmerican Development Bank Tools

14 CI relies on projects to test & improve good practice while also delivering measurable conservation impacts on the ground Also useful learning experiences for the companies involved as they test and share experiences with their own staff and peers. One example: Conservation International & Rio Tinto since 2002, working on projects in Guinea and elsewhere to demonstrate Net Positive Impact. assess the region s biodiversity and the existing and potential socio-economic threats & opportunities for conservation to inform biodiversity action plan. Conduct rapid assessment field survey (RAP) to inform EIA. 800spp. recorded, 7 new to science, 11 threatened. Ongoing role as project advisor (in Biodiversity Committee) on mine/rail/port planning, mitigation & offset. Development of internal guidance and verification protocols for measuring Net Positive Impact. Projects

15 1. Understand and, where necessary, improve or promote incentives for good practice. This could include: Identifying financers of major mine projects, raising awareness of voluntary standards and ensure compliance. Assessing corporate policies of major mine companies, compare to leading peers & standards. Where lacking, raise awareness of international best practices. Reviewing national regulation and guidance on mining development and environmental conservation to understand how current national laws compare with voluntary standards and other leading legislation. Where laws are adequate, understanding issues with implementation. Where laws are lacking, exposing new models to law makes through training and inter-country exchange. Way forward for NC?

16 2. Where incentives are established, tools could be identified to help with facilitating their implementation. Training needs on specific tools ranging from risk/impact assessment and mitigation processes to biodiversity action planning and reporting will be determined by the specific needs and capacity gaps identified via review of current incentives. Most important will be projects: working with key leaders in the industry to showcase what can be done on the ground. Focus on moving beyond compliance to establishing the mining sector as a force for positive development through support of broader conservation and natural resource management at the landscape and country scales. Through successful implementation, companies will both contribute to better natural resource management conservation in New Caledonia as well as establish examples for their peers, both nationally and internationally. Way forward for NC?/continued

17 Thank you