1.
Dealing with
Growing Social Demands
Wayne Dunn
CSR Training Institute
info@csrtraininginstitute.com
www.csrtraininginstitute.com
World Bank Group Forum
PDAC 2015
Sunday March 1, 2015
Toronto, Canada

2.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Presentation Outline
• What are the growing social demands?
• Consultation (formal/informal, history, structure, FPIC,
closure)
• Access to land (who/how approved)
• Benefit sharing (what’s in it for everyone)
• Project approval (who approves? when? how?)
• What is being done?
• What more might we do?
• Discussion

3.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
2015 not an easy time
for the mining industry
• Bottom of the cycle (and
a long bottom?)
• High costs
• Low prices
• Increasing social
demands
• Increasing environmental
requirements
• Artisanal mining
• Expanding regulatory
requirements
• Expanding compliance
requirements &
expectations
• How to meet social,
environmental &
shareholder expectations
Need to innovate
Need to collaborate

4.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Has the World Changed?
1990s
• NGOs
• Communications
• National Governments
• Business
Today
• NGOs
• Communications
• National Governments
• Business
Society expects more
AND
has more power to force change

5.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Capital Flow into LAC Economies
1990 to 2015
Official
Development
Assistance
90% - 10%*
Business
Investment
10% - 90%*
Huge changes over the past ~20 years
* SWAG/PFS

6.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
CSR in the OLDEN DAYS (cont)
Suddenly
communities could
influence how, or
if, a project could
proceed.
Business had a
new challenge to
figure out
Answers weren’t
easy or obvious
Community Relations Management
Framework
Plan
?Results?
System

7.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Local Demands/Involvement
Growing Social Demands
• Consultation (formal/informal,
history, structure, FPIC, closure)
• Access to land (who/how
approved)
• Benefit sharing (what’s in it for
everyone)
• Project approval (who
approves? when? how?)
• Environmental monitoring

8.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Consultation
• From exploration to closure
• Formal/Informal (relationship history across
ownership changes)
• Structured Processes (who leads, who
participates, roles & responsibilities, end points)
• Starting point (exploration, permitting,
construction)
• ICMM Position Paper http://bit.ly/ICMMFPIC
• defines FPIC as process based on Good Faith
Negotiation through which Indigenous Peoples can
give or withhold consent
• commits members to work to obtain the consent of
Indigenous Peoples
• includes supporting commitments that apply to
most interactions with indigenous communities
• defines how to engage where government has
primary responsibility
• addresses how to move forward where differences
of opinion arise.

9.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Aboriginal Title in Canada
Increasingly progressive rulings
• Calder v. British Columbia (Attorney General) [1973]
confirmed Aboriginal title had existed
• R v Guerin [1984] Aboriginal title is a right and
government has fiduciary duty to protect it
• Delgamuukw v British Columbia [1997] Aboriginal title
is different from merely land use and occupation, as it had
previously been defined, but also incorporates Aboriginal
jurisdictional authority over how the land is used.
• Supreme Court Ruling Declares Tsilhqot’in Hold
Aboriginal Title – 2014
“ownership rights similar to those associated with
fee simple: the right to decide how the land will be
used; the right of enjoyment and occupancy of the
land; the right to possess the land; the right to the
economic benefits of the land; and the right to pro-
actively use and manage the land.”
• Duty to Consult: similar progression in court rulings
• And then there’s FPIC

10.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Land Access
• Role of the State (strength of land
cadastre systems)
• Role of Community (who leads,
who participates, roles & responsibilities,
end points,)
• Role of Landowner
• Process (purchase, lease, negotiation,
relocation, pricing, etc.)
• Dispute Resolution

11.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Benefit Sharing*
• Compressive Community
Development Agreements
(structured frameworks, bi-lateral, tri-
lateral/multi-dept, multi-lateral, ODA
involvement)
• Local Content (employment,
procurement, training)
• Local Industry/Diversification
• Infrastructure(direct funded, co-
funded, tax credits [Works for Investment])
• Resource Access (water, small scale
mining, agriculture)
* World Bank approach to promote shared prosperity generated
by the mining industry
Mining Community
Development Agreements
http://bit.ly/1C3VfKW Source Book
March 2012

12.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Project Approval
• Informal (local, national,
international pressures: Tambo
Grande)
• Structured Local
Processes (Binding
Referendum/Honduras)
• Informed Processes
(State decision informed and
influenced by local input)

13.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Relationships & Trust
• Crosscutting themes
(relationship history across
ownership changes)
• History of
relationships (reputational
capital of project and owners –
new owners don’t reset
reputational liabilities)
• Transparency and
legitimacy of
processes (environment,
permitting & approvals)

14.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
What is being done
• National policies and regulations
• Company and industry wide initiatives
• IFI support and multi-lateral technical assistance
and support
• ODA support, co-funding
• Development collaboration (NGO, industry,
government)

15.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
National Policies & Legislation
• Regulatory structures to facilitate meeting growing
social demands
• Consultation
• Access to land
• Benefit sharing
• Project approval
• Project permitting
• Mine closure

16.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Increasing mandatory and
voluntary compliance
• ICMI - International Cyanide Management
Institute (ICMI)
• Conflict Free Gold Standard
• Voluntary Principles on Security and Human
Rights
• EITI
• Global Reporting Initiative
• Voluntary Principles
• ICMM
• IFC
• Equator Principles
• ILO
• Accountability
• Many, many more

17.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Social value imperative
applies across industry, sector & geography

18.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Mining Schools Hi Tech!
• Long way to go,
Yes
• But mining has
come a very
long way in last
15 years!
• Other industries
see mining as a
leader/exemplar

19.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Industry social investments
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice

20.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Global Development Framework
Collective Social Responsibility
The Millennium Development Goals (MDGs)
are eight international development goals
that were officially established following the
Millennium Summit of the United Nations in
2000
All 193 United Nations member states and at
least 23 international organizations agreed to
achieve these goals by the year 2015
General framework for governments,
international and multi-lateral agencies,
NGOs, etc

21.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Global Development Framework II
The United Nations summit
for the adoption of the
post-2015 development
agenda will be held from 25
to 27 September 2015, in
New York and convened as
a high-level plenary
meeting of the General
Assembly.

22.
PDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Global development framework elements
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice

23.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Notice any similarities?
Global development
framework
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Social value investments
of business
• Education
• Health
• Poverty alleviation
• Gender equality
• Environment
• Partnerships
• Equity & justice
Natural Partnerships Unnatural Partners

24.
PDAC 2015, Toronto, CanadaPDAC 2015, Toronto, Canada
dealing with Growing Social Demands
from Exploration to Closure
Why Unnatural Partnerships?
Perspectives driven by
Development Community
• Development assistance as
dominant capital flow
• Business’ historical record
on human development,
rights, etc.
• Other impressions and
perspectives (profit only,
exploitative, etc.)
Business
• Development as anti-
business
• Historical pressures
from the development
community
• Other impressions and
perspectives
(inefficient, do-gooders,
etc.)