WHAT IS SUSTAINABLE DEVELOPMENT FRAMEWORK?

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2 WHAT IS SUSTAINABLE DEVELOPMENT FRAMEWORK?

3 A Concept developed as a guiding principle for Indian mining industry at national level by the Ministry of Mines, Government of India, encompassing the critical issues, vital for development of mining in India, as a contributor to the inclusive growth, without adversely affecting the social, Financial and environmental well-being, at present and also in future, of fellow countrymen in accordance with section 46(2) of New MMDR Bill 2011.

4 National Mineral Policy (NMP-2008) states that All the Mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework(SDF). The guiding principle shall be that a miner shall leave the mining area in better ecological shape than he found it. Accordingly, the SDF has been incorporated in the draft MMDR Bill 2011 under section 46 which states that sustainable development framework means the National sustainable development framework contain guidelines enabling formulation of project level practices for sustainable mining. To address these issues the Ministry of Mines, Govt. of India has designed a Sustainable Development Framework(SDF) as envisaged in National Mineral Policy (NMP-2008). The Government has also proposed statutory obligations on the subject matter in the draft MM(D&R) Bill, 2011 currently under consideration in Parliament.

5 HOW DOES THE NEW MMDR BILL 2011 ADDRESSES THE ISSUE OF SUSTAINABLE DEVELOPMENT?

6 A corner stone of the new act is the Sustainable Development Framework. The framework will contain guidelines enabling formulation of project(mine) level practice for sustainable mining And include life cycle analysis, impact assessments Mitigation interventions, socio-economic development Mineral Conservation, waste reduction, restoration and reclamation. The key factor is the consultative mechanism with stakeholder groups from pre mining stage to post closure. A system of public disclosure of mining related activities and environmental parameters to facilitate sustainability audits. Mining Plan/Mine Closure Plan will be prepared within the Sustainable Development Framework. Final Mine Closure Plan updated in draft form after deciding on the post mining land use in consultation with the Panchayats.

7 The act addresses issues of sustainability in two distinct ways The first is the sustainability of mining relating to mineral conservation, zero waste, mining, increasing the resource base, recycling, beneficiation, etc. The second is the sustainability of the societal structures and ecological processes which adversely impact the quality of the life and what needs to be done to ensure sustainable development. The act creates two funds National Mineral Fund (Section 50) State Mineral Fund(section 53) Both these funds are funded out of cess, respectively on customs/excise duty /royalty. The National Mineral Fund can be used for Promoting scientific management of mining activities R&D in sustainable mining and recycling of resources The State Mineral Fund can be used to develop capacity of state directorates to achieve the objects of the acts and preventing and detection of illegal mining.

8 HOW THIS FRAMEWORK DEFINES SUSTAINABLE DEVELOPMENT?

9 Mining that is financially viable; socially responsible; environmentally, technically and scientifically sound; with a long term view of development; uses mineral resources optimally; and, ensures sustainable post-closure land uses. Also one based on creating long-term, genuine, mutually beneficial partnerships between government, communities and miners, based on integrity, cooperation and transparency.

10 WHAT FORCED US TO LOOK BEYOND THE EXISTING SYSTEM WE ARE WORKING WITH?

11 SHORTCOMING IN THE EXISTING SYSTEM Concerns and aspirations of affected persons are not fully addressed. The issue of prior consultation with all the stakeholders remained outside the ambit of the current system. The impacts of Mining activities, felt beyond the boundaries of lease area, specifically the environment and ecology, are not covered. The issues pertaining to land acquisition etc. are not dealt with properly. The information contained in the various statutory documents, which directly or indirectly affects the concerned persons in and around the mining areas is not disclosed or kept in the public domain. There is no provision for post closure monitoring in the current system. 11

12 WHY INDIAN MINING SECTOR REQUIRES A SDF?

13 Minerals, forests and tribals tracts alongwith rich bio-diversity zones are concentrated in the same geographic areas Several areas with very high mining activity are in the poorest districts. This brings home the reality that in recent decades, mining activities have resulted in little local benefit, and in fact, has been at the cost of environmental degradation. Undervaluation of lands that were acquired by the government or otherwise for development of mines. Increased development of natural resources is driving large-scale internal displacement of indigenous communities in India.

14 Serious community concern- irreversible impacts on their lands and livelihood Not enough demonstrated commitment to manage environmental impacts. Some mining areas are facing critical environmental problems The economic benefits are not trickling down to the people who have the most at stake. Mining is now moving into more complex geologies and politics- an integrated approach is becoming more necessary For mining companies its about protecting investments more effectively and for longer. Its about getting and developing the social license to operate.

15 WHAT ARE THE KEY DRIVERS FOR SDF?

16 Rising scrutiny of environmental and social performance by citizens groups/ngos, media and the Courts. Community is demanding a key stakeholder role and direct benefits from mining/extractive industries. National Mineral Policy clearly states that there is a need for the mining industry to adopt a long term framework based on sustainable development Pressure to be more transparent by the community and shareholders RTI There is growing evidence that adopting sustainable management makes business sense- reduces costs, reduces risks, and generates long term opportunities and a social license to operate.

17 WHAT ARE THE KEY ELEMENTS OF SDF?

18 ENVIRONMENTAL AND SOCIAL SENSIVITY IN DECISIONS FOR MINING LEASES

19 Categorization of mineral reserves and resources based on Environmental and social sensivities. Preparation of overlay like Protected Areas, Dense Forest, scheduled areas, water resources, fragile ecosystems, dense habitats etc. over mining area/leases. Identify statutorily prohibited areas for mining. Inclusion of the risk criteria as decision input for bidders. Demonstrated sustainable capacities to be made one of the criteria in bidding process. Periodical review of the categorization in consultation with MOEF, MORD, MOTA and State. Keep the information on Ministry web site.

20 CHALLANGES Building stakeholders consensus for categorization. Development of decision making tool with consistent data input at regular intervals. Capacity issues of regulatory and monitoring agencies. Applicability on existing ML and delays in case of existing RP/PL.

21 STRATEGIC ASSESSMENT IN KEY MINING REGIONS

22 Identification of special mining regions in consultation with stakeholders. Periodic Regional study of these areas to assess carrying capacity. A strategic regional plan to address Environmental and Social issues. Encourage Management systems to implement regional strategic goals. Optimizing no. of leases, size and scale of operations. Common infrastructures and their management and Clustering Strategies. Facilitate and encourage responsible mine design leading to zero waste mining.

23 CHALLANGES Acceptance by State Govt. specially in the light of capcity and increased workload. Institutional arrangement to co-ordinate this process. Issues of capacity building. Sustained funding and monitoring.

24 MANAGING IMPACTS AT MINE LEVEL.

25 A robust E&S Management framework in the form of Policy Statement from the mining company. Sustainable Mine development strategy to be updated periodically. Time bound community development and engagement initiatives. Sustainability reporting at mine level to achieve regional/national benchmarks. Intensive use and dissemination of geo-spatial and geo-scientific information at mine level for assessment, planning and mining activity.

26 CHALLANGES o State Government response for the additional mandate. o Engagement of Govt. and community on a continuous basis. o Resistance from artisanal and small mine owners for being subjected to monitoring and auditing in line with the regional and national objectives.

27 LAND, RESETTLEMENT AND OTHER SOCIAL IMPACTS

28 Minimisation of impacts and displacement due to the mining activity. Broad consensus for the project among local communities. Satisfaction of Land owners and other Project Affected Families with the compensation package and rehabilitation measures. Restored livelihood of PAP. Majority of the land is bought. Less court cases and conflicts.

29 CHALLANGES Capacity of MOEF, SCPB and IBM or other regulators to examine the Social baseline and impact assessment. Concerns among project proponents regarding consultation process, impact assessment resulting in heightened expectation, price escalation. Availability of skilled persons to undertake assessment and provide time tested solutions.

30 COMMUNITY ENGAGEMENT, BENEFIT SHARING AND CONTRIBUTION TO SOCIO-ECONOMIC DEVELOPMENT

31 An informed community, aware about mining to participate in project decision. A disclosure process to engage the community on consistent basis. Increased income, social and livelihood security and other benefits for affected persons. Improved social and economic development. Broad community support for mining. Resolution of conflicts in an amicable manner by a trustworthy and transparent mechanism.

32 CHALLANGES Identification of local community. Assurance of the sanctity of the agreement and business continuity. Capacities and abilities of the communities to define its sustainable development goals. Role of regulatory agencies to provide increased weightage to these sensitive elements

33 MINE CLOSURE AND POST CLOSURE

34 Recognition and Realization of positive legacies of local communities. Lower exposure to future potential negative legacies. Enhanced value of land post closure.

35 CHALLANGES Applicable social and environmental standards against which the performance of the companies is to be measured. Prudent Financial Planning guaranteeing effective closure. Enforcement capabilities of regulator on technical, financial and economic fronts. A deliverable back-up plan clubbed with adequate capacity to implement scientific closer in case of Forfeited Guaranty.

36 ASSURANCE AND REPORTING

37 More transparency among the mining companies. Improved performance on sustainable development indicators. More informed engagement and negotiations with local communities. Structured documentation on social and environmental performance. Demonstration of continual improvement and a plan of action to reach the next set of goals.

38 CHALLANGES To provide incentive or disincentives for the mining companies in order to disclose more relevant information. It is difficult to standardize the sustainable development report.

39 HOW SDF IS GOING TO HELP THE INDIAN MINING INDUSTRY?

40 Reduced environmental and social conflicts in areas awarded for mining. Greater clarity for all concerned stakeholders, on risk levels of mining lease areas. Potentially reduced delays in obtaining clearances (environmental, forest) for mines. Improved protection of high risk areas in terms of environment and social considerations. A Regional Mineral Development Plan for selected mining areas and addressing key regional and cumulative impacts of mining through coordinated and collective action. Opportunity for clustering of small operators to become more competitive, and compliant.

41 A robust E&S Management framework in mining companies. A disclosure process that provides stakeholders with relevant and timely information, and allows issues to be raised in engagement forums. Enhanced control on illegal mining activities through intensive stakeholder scrutiny by publishing details on mining activity in public domain. Intensive use of geo-spatial and geo-scientific information at mine level for assessment, planning, management and monitoring of the mining sector. Stronger monitoring and assurance systems and processes and SDF reporting on governance and ethical practices.

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