Mining and Sustainable Development

1. Mining and Sustainable Development Sorptive Minerals Institute Spring Forum May 6, 2002 Laura Skaer Executive Director Northwest Mining Association www.nwma.org

2. SUSTAINABLE DEVELOPMENT Is mining inherently inconsistent with sustainable development? Does it mean different things to different people? Does it mean something different in developed than in undeveloped countries? Is it site specific? Is it a process or a product? Is it possible to have sustainable development, sustainable economic growth, sustainable communities and a sustainable society without mining?

3. Sustainable Development -the Bruntland Definition from the 1992 Rio Summit Current generations meeting their needs without compromising the ability of future generations to meet their needs IMPLIES: Future generations have rights over resources Current generation has a duty to include future generations’ needs in its decision-making Is this a “Freeze-frame” projection into the future? A no growth or slow growth definition? Or may the current generation assume there will be future technological advances and economic growth? An accounting of social and environmental impacts Who makes the call? Government, industry or the free market?

4. Sustainable Development and Mining --an International Effort Global Mining Initiative (www.globalmining.com) The Global Mining Initiative (GMI) is led by the ten companies which make up the Mining and Minerals Working Group of the World Business Council for Sustainable Development (WBCSD): Anglo American, BHP, Billiton, Codelco, Newmont, Noranda, Phelps Dodge, Placer Dome, Rio Tintoand WMC

5. MMSD (Mining, Minerals and Sustainable Development) project -- an independent two-year project of research and consultation seeking to understand how the mining and minerals sector can contribute to the global transition to sustainable development Commissioned by GMI and being conducted by the International Institute for Environment and Development (IIED) (www.iied.org) The final report is on the IIED website and will be presented this month in Toronto

6. The Mining and Minerals Policy Act of 1970 “The Congress declares that it is the continuing policy of the Federal Government in the national interest to foster and encourage private enterprise in the development of economically sound and stable domestic mining . . . [and] the orderly and economic development of domestic mineral resources . . . . "

7. Economic Responsibility -- shareholders, employees, community, society Environmental Responsibility -- society is more concerned with mining’s impacts and behavior than its products Resource Stewardship -- wise and efficient use Community Engagement -- shared objectives Product Stewardship Social License and Public Accountability– we mine with the consent of the public

8. Mining’s Role in Sustainable Development Creator of New Wealth Jobs, taxes and economic growth Foundation for eliminating poverty Make a profit -- Shareholder return Enhanced standard of living Providing Mineral-based Products to Meet Society’s Basic Material and Energy Needs and Demands Building blocks of economic growth

9. Mining’s role ... continued Advances in Civilization All successful societies have encouraged, and will continue to encourage, mining Metallurgical and technological advances have defined advances in civilization Mitigation of Society’s Impact on the Environment Mineral products make environmental protection technology possible Modern mines are designed and built for closure Recyclable mineral products

10. Mining’s role … continued Providing Lasting Benefits after an Orebody Is Exhausted Mining’s legacy to the community – a sustainable rural economy Avoiding the boom/bust cycles of the past -- How do we keep the party going? Requires planning and cooperation Metals are durable and continue to be used by society Efficient use of resources – energy, water, land and minerals Technological advances promote resource conservation and efficiency, and extend mine life

11. Promotes (allows?) Sustainable Development after Mining Private ownership allows for and encourages post-mining commercial development Allows long term use of the mining infrastructure to support post-mining development and create a source of future jobs Puts the property on the tax rolls Minimizes concerns about future public liabilities Promotes resource conservation The Role of Patenting in Sustainable Development

12. Roadblocks to Sustainable Development NIMBY, BANANA and NOPE Locking up access to our resources is not sustainable, nor is it environmentally or socially responsible Fails to recognize that poverty, not development, is the worst polluter Arrogant--limits future generations’ choices Environmental imperialism – exporting the impacts of our consumption Ineffective inter-agency cooperation

13. Roadblocks to Sustainable Development continued … Over Regulation The Babbitt 3809s The Roadless Rule and similar attempts to create de facto wilderness Solicitor opinions (millsite, excess reserves, etc.) Court and agency interpretation of ESA, CWA, CAA EPA The Permitting Process (NEPA) The perpetual litigation machine The never-ending story

14. NWMA’s Approach to Sustainable Development Committed to the Proposition that sustainable development concepts should be used to guide business development from project inception to provide economic return, protect the environment and encourage ongoing social and economic activities beyond mine closure

15. NWMA’s Approach continued . . . The Real Value is in the Debate GMI, MMSD, USFS Sustainability Roundtable, BLM, CAMMA – In general, these have been theoretical, academic approaches – can they be implemented on-the-ground? Mining is only one of many industries, individuals, and local officials participating in planning for sustainable development

16. Sustainable development involves integrating economic, environmental and social responsibility to: Provide value (profit, shareholder return, products society needs and uses) Balance the benefits of providing mineral-based products to meet society’s needs with the potential impacts on the physical and social environment Enable society to view mining as a desirable activity -- earn the public’s consent Ensure transparency Requires planning and cooperation

17. Five draft principles . . .a work in progress Ensure that health, safety and environmental protection, together with community values, are addressed in business plans and decision-making processes for exploration, mine development, operating procedures, and reclamation and closure activities.

18. Draft principles continued . . . Identify and enhance economic and social sustainable development opportunities in surrounding communities by engaging community stakeholders throughout the entire life cycle of the mining operation, and beyond, as active participants in the formulation of fundamental standards upon which Sustainable Development is founded.

19. Draft principles continued . . . Strive to maximize the Sustainable Development benefits and mitigate the impacts of mining activities on the economic, environmental and social needs of the surrounding communities.

20. Draft principles continued . . . Support education and research pertaining to the most effective and efficient ways in which mining can, and does, contribute to Sustainable Development.

21. Draft principles continued . . . Verify and publicly report on Sustainable Development activities, including progress on meeting performance targets and actions, with internal and external audits and reviews.

22. From Anglo American: “To secure a continuing license to operate, the mining and resources industry will have to frame its future in economically viable, socially beneficial and environmentally sound practices that are negotiated with communities within which it works.”

23. From Rio Tinto "We believe we can only continue to generate value for our shareholders over the long run if we excel in our performance on environmental and social issues. Sustainable development …manages all the business risks to earn a license to operate from all stakeholders."

24. The Good News: The mining industry already incorporates sustainable development concepts in the planning, permitting, exploration, development, operation and closure of modern mines It’s what we do!