ICMM Script Slides - The Intergovernmental Forum on Mining ...

Mining for development
Presentation to the <strong>Intergovernmental</strong> <strong>Forum</strong> on Mining,
Minerals, Metals and Sustainable Development
Fernanda Diez, Manager
18 September 2012, Geneva

Overview of presentation
• About <strong>ICMM</strong>
• Mining industry: key trends, material
issues
• Private sector and governments:
• <strong>ICMM</strong>’s Resource Endowment
Initiative
• <strong>ICMM</strong>’s Mining: Partnerships for
Development
• Mining’s contribution to national
economies
www.icmm.com

<strong>ICMM</strong> at a glance
<strong>ICMM</strong> Vision
leading mining and metals
companies working
together and with others to
strengthen the contribution
to sustainable
development
Fundamental implication
creating value for
shareholders while
simultaneously creating
value for the communities
and societies in which
they operate
Our role: a catalyst for improving environmental and social
performance in the mining and metals industry
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<strong>ICMM</strong> at a glance
CEO led
22
Company
members
34
Association
members
Over 800 sites
in 62 countries
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<strong>ICMM</strong> member companies
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<strong>ICMM</strong> member associations
Americas
Cámara Argentina de Empresarios Mineros
Cámara Asomineros Andi - Colombia
Cámara Minera de Venezuela
Consejo Minero de Chile A.G.
Instituto Brasileiro de Mineraçao - Brazil
Mining Association of Canada
National Mining Association - USA
Prospectors and Developers Association of Canada
Sociedad Nacional de Minería - Chile
Sociedad Nacional de Minería, Petróleo y Energía –
Perú
Africa
Chamber of Mines of South Africa
Ghana Chamber of Mines
Mining Industry Associations of Southern Africa
Europe
Eurometaux
Euromines
Asia-Pacific
China International Mining Group
Indonesian Mining Association
Japan Mining Industry Association
Minerals Council of Australia
Commodity Associations
Cobalt Development Institute
International Aluminium Institute
International Copper Association
International Iron Metallics Association
International Lead Association
International Manganese Institute
International Molybdenum Association
International Wrought Copper Council
International Zinc Association
ITRI
Nickel Institute
World Coal Association
World Gold Council
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<strong>ICMM</strong> member commitments
10 principles for sustainable development 6 position statements
1. Implement ethical business practices
and apply good corporate governance
2. Integrate SD in corporate decisionmaking
3. Uphold fundamental human rights
4. Manage risks based on sound science
5/6. Improve environment, health and
safety performance continuously
7. Conserve biodiversity & contribute to
integrated land use planning
8. Encourage a life cycle approach to
materials management
9. Contribute to community development
10. Publicly report, independently assure
and engage openly and transparently
Mining and Protected Areas
Mining: Partnerships for
Development
Climate Change
Mining and Indigenous
Peoples
Mercury Risk Management
Transparency of Mineral
Revenues
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Enhanced transparency and accountability
Robust entry criteria
and process
Clear performance
expectations
Reporting
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<strong>ICMM</strong> Work Programs
Strategy
Environmental
Stewardship
Materials
Stewardship
Communications
Mining and metals’ contribution to society and
the environment
Social and
Economic
Development
Reporting and
Assurance
Climate
Change
Health and
Safety
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Key trends affecting the mining sector (1 of 2):
1
Increasing public concerns about:
Climate
change
Water
Human rights
Biodiversity
Corruption and
transparency
Workplace
fatalities
Distribution of economic
benefits of mining;
poverty reduction
Indigenous Peoples’ role
in decision-making
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Key trends affecting the mining sector (2 of 2):
2
Intensifying political struggles over
distribution of resource rents
3
Increased emphasis on corporate social
and environmental practices
4
Increased NGO campaigning on a range of issues
(community consent, ethical sourcing, biodiversity, energy
minerals, chemicals management)
5
Increasing complexity and breadth of
issues facing the industry
6
Growing recognition that no single interest can
address issues effectively (growing need for multiinterest
collaboration)
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Growing pressure on disclosure and responsibility
Extractive Industries
Transparency
Initiative (EITI)
and
IFC Performance
Standards
Dodd-Frank Wall
Street Reform and
Consumer
Protection Act
(2010)
SEC guidance on
Climate Change
Disclosures (02/10)
Principles for
Responsible
Investment (800
signatories)
Investor-led calls to
listing authorities and
stock exchanges to
require companies to
consider
sustainability
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Resource Endowment: Two key questions
• What are the critical success factors that have enabled some countries to
benefit from substantial resource endowments and avoid the so-called resource
curse?
• What practical steps might be taken by the industry, governments, local
communities and aid agencies to build these success factors?
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<strong>ICMM</strong> Finding 1: <strong>The</strong> potential economic and social
contributions are manifold, but poorly understood and not
‘automatic’
Contributions fall unevenly
between national and
community levels
Key policy challenge is to
fatten the base of the
pyramid…
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<strong>ICMM</strong> Finding 2: Good governance can enhance the
benefits of mining
• Many of the positive macro contributions of mining will arise naturally provided that the
regulatory and taxation conditions are reasonably attractive
• But mining’s FULL POTENTIAL contribution to development requires a strong
governance framework – not just at the national level, but regionally and locally
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<strong>ICMM</strong> Finding 3: Where governance is weak, multistakeholder
partnerships can enhance development
outcomes
• Companies alone cannot unlock the full development benefits of mining
• Multi-stakeholder partnerships are needed – these require companies, host governments,
donors & NGOs to work closely together, with distinct roles and resp’s
• Partnerships can help to ‘expand the pie’ rather than focussing on ‘dividing the pie’
Six priority areas for multi-stakeholder
partnerships identified by REi
• Poverty reduction
• Revenue management
• Regional development planning
• Local content
• Social investment
• Dispute resolution
Companies:
Example of role:
• Participate in
national
development
dialogues
Host Governments:
Example of role:
• Integrate mining
into poverty
reduction
strategies
Example
Partnership for
Poverty
Reduction
Donor agencies:
Example of role:
• Engage with local
NGO and faith
groups
NGOs, Civil Society,
Communities:
Example of role:
• Recognize role of
mining in poverty
alleviation
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Key learning: ‘resource curse’ is not inevitable
• In some countries, mineral wealth has driven broader economic and social
development. In others it has not
• Good governance is a major factor, but is NOT a precondition of mininginduced
development
• Payment of substantial revenues to government by companies is only ONE
element that contributes to economic and social development of a country
• Mining can make many other significant contributions… but most call for
partnership arrangements involving miners and other key stakeholders, such as
governments and donor agencies
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Mining Partnerships for Development Toolkit
• <strong>The</strong> toolkit can be used by:
mining companies and mine managers
host-country governments
development agencies
development oriented non-governmental
organizations (NGOs)
Experience has shown that applications of the toolkit:
• are more effective if organized in collaboration between mining companies
and other stakeholders
• are most effective where there has been strong government support from
the outset.
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….and that the methods are credible
Research methods and findings critiqued by two multi-stakeholder
workshops held in London in 2004 and 2005. Representatives from
NGOs, governments, companies, investors, donor agencies and
academic institutions – north and south
Country case studies reviewed by the IMF, World Bank, think tanks, NGOs.
Translated into local languages
IFC, Harvard CSRI, InterAmerican Development Bank and UN Economic
Commission for Africa jointly hosted global and regional workshops on:
• Partnerships for Mining and Local Content London (2009) and
Bogota, Colombia (2010) and
• Partnerships for Mining and Regional Development Planning,
London (2010)

Mining’s contribution series
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Mining’s contribution
5
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Case study evidence of mining’s contribution
1. Foreign direct investment
2. Total national investment
3. Exports
4. Net foreign exchange earnings
5. Government revenues
6. Gross domestic product
7. Employment and wages
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For further information:
www.icmm.com
@icmm_com
info@icmm.com