12. Privilege to operate – getting
community support is key
•
A 2008 study of 190 oil and gas projects by Goldman Sachs showed that
lead times to production had almost doubled in the previous decade. A
follow-up study found that nearly half of the risks facing projects were
non-technical in nature, with ‘stakeholder-related’ risks being the
single biggest issue.
•
The costs resulting from delays associated with community conflicts are
substantial. A day’s delay for a mineral exploration project costs
approximately $10,000. For a major mining project, the costs of every
week of delayed production soar to an estimated $20 million in net
present value terms.
•
These risks are recognized by many business leaders. Ernst & Young
has consistently rated ‘maintaining a social license to operate’
among the top business risks facing the mining sector over the past
six years.
13. Towards Sustainable Mining:
Mining and Biodiversity Framework
MAC members accept that a corporate commitment to biodiversity
conservation is essential and have agreed to the following commitments to
ensure biodiversity conservation is managed effectively by:
• Working to positively contribute to biodiversity conservation
• Working with key communities of interest to implement responsible policies
and practices
• Being transparent through public reporting on issues related to mining and
biodiversity conservation
• Respecting protected areas and working with key COI on the
establishment of protected areas
• Not exploring or developing mines in World Heritage sites.
14. Biodiversity Conservation
Management Protocol
The protocol consists of three performance
indicators:
1. Corporate biodiversity conservation
commitment, accountability and
communications
2. Facility-level biodiversity conservation
planning and implementation
3. Biodiversity conservation reporting
Level A:
• Demonstrated senior management
commitment to biodiversity conservation
management
• Defined responsibilities for implementing the
corporate commitment
• Implementation of a management system for
significant biodiversity aspects
• Reporting system for internal and external
reporting is in place
15.
16. Biodiversity Offsets
Increasing numbers of
companies are making
‘no net loss’ or ‘net
positive gain’
commitments and need
tools to meet those
commitments
Example:
Rio Tinto and biodiversity
- working towards Net
Positive Impact
17. Drivers of biodiversity conservation and
offsets
• Maintain access to resources (access to land for
exploration and possibly for operations)
• Strengthen access to capital, e.g., revised IFC
requirements
• Strengthen privilege to operate
• Facilitate adherence to national legislation where this
already exists
• First-mover advantage in advance of regulation
18. Offsets: Restoring Wetlands at Great Salt
Lake
•
The Inland Sea Shorebird Reserve
near Salt Lake City
•
Created by Rio Tinto’s Kennecott
copper mine in partnership with the
US Army
•
Offsets the loss of 460 hectares of
wetlands when the company
expanded its tailings impoundment in
1996.
•
The Reserve is now used by
120,000 shorebirds, waders and
other water fowl each year. More
than 200 bird species have been
recorded.
19. Community Biodiversity Planning in Burkina Faso
• IAMGOLD’s Essakane mine in Burkina
Faso has been working with the local
community to improve local biodiversity.
• Over 100,000 trees have been planted
• All native species
• Many have special utilitarian or cultural
importance to the local population
• Although the community forests are only a
few years old, the participatory and
community-driven process has already
proven successful in providing direct
benefits as a source of food, fodder, natural
pharmaceuticals, wildlife habitat and shade.
20. Future challenges
• Implementation
• Additionality, community engagement, measurement and
metrics, long-term management and financial security
• Costs
• Multiple overlay of legislation
• Ratios and multipliers
• Transaction costs
• Integration
• Combining financial lender requirements with national
frameworks
• Severance of liability
• Placing a cap on liability under appropriate legal frameworks
