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A guide to leading practice sustainable development in mining

A guide to leading practice sustainable development in mining

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Operat<strong>in</strong>g major m<strong>in</strong><strong>in</strong>g projects presents an array of governance and government<br />

risks. For example, when governments are m<strong>in</strong>ority <strong>in</strong>ves<strong>to</strong>rs <strong>in</strong> projects (the<br />

receivers of royalties and taxes) as well as regula<strong>to</strong>rs, the perceived conflict of<br />

<strong>in</strong>terest and need for transparency presents major challenges.<br />

The Ok Tedi project and the dilemmas it raises are not unique <strong>in</strong> the world—the<br />

multi-faceted and <strong>in</strong>terconnected nature of risk is at the heart of the susta<strong>in</strong>ability<br />

debate. The m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry can contribute <strong>to</strong> <strong>susta<strong>in</strong>able</strong> <strong>development</strong> by striv<strong>in</strong>g <strong>to</strong><br />

understand the complex relationships between social, environmental, economic and<br />

governance risks.<br />

The Ok Tedi case has helped <strong>to</strong> lift the awareness of these issues <strong>in</strong> the m<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong>dustry as well as the public realm along with the need <strong>to</strong> implement sound risk<br />

management for such large and complex projects and improve the global m<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong>dustry’s approach <strong>to</strong> risks and susta<strong>in</strong>ability (see LP Risk p.7).<br />

Figure 3.4 – The Ok Tedi m<strong>in</strong>e <strong>in</strong> Papua New Gu<strong>in</strong>ea<br />

Stewardship<br />

Stewardship <strong>in</strong>volves the care and management of a commodity through its life<br />

cycle. The idea of a life cycle can cover the exploration, m<strong>in</strong><strong>in</strong>g, process<strong>in</strong>g, ref<strong>in</strong><strong>in</strong>g,<br />

fabricat<strong>in</strong>g, use, recovery, recycl<strong>in</strong>g and disposal of a m<strong>in</strong>eral product. Stewardship<br />

needs <strong>to</strong> be an <strong>in</strong>tegrated program of actions aimed at ensur<strong>in</strong>g that all materials,<br />

processes, goods and services are managed throughout the life cycle <strong>in</strong> a socially<br />

and environmentally responsible manner.<br />

Stewardship is an evolv<strong>in</strong>g concept with<strong>in</strong> the m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry aimed at build<strong>in</strong>g<br />

partnerships throughout the life cycle of materials <strong>to</strong> ensure the susta<strong>in</strong>ability<br />

of their production, use and disposal. While participants <strong>in</strong> each sec<strong>to</strong>r have a<br />

80 LEADING PRACTICE SUSTAINABLE DEVELOPMENT PROGRAM FOR THE MINING INDUSTRY

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