Opening Remarks in APEC MTF CSR Workshop

1. Opening Remarks in APEC MTF CSR Workshop Yongzheng Ma Lima, Peru

2. Outline Welcome Introduction to MTF What MTF are MTF workplan CRS Workshop What we will do Expected outcomes Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

3. Welcome On behalf of MTF Chair Mr. Pinchuk and also myself, welcome you all to Lima to attend this CSR workshop. We’d like to extend hearty thanks to the economies present today and especially to the USA and PERU. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

4. MTF 1. Based on Group of Experts on Mineral and Energy Exploration and Development (GEMMEED) and Non-Ferrous Metals Dialogue (NFMD), MTF was set up in 2007, after the MRM3 meeting decision. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

5. 2. Mandates: -- To serve as a platform for Member Economies to strengthen policy dialogue and capacity building; -- To enhance market transparency in accordance with the Mining Policy Principles Agreed on MRM3; -- To assist in enhancing minerals exploration, mining and metals industry development through action-oriented programs and activities that are focused and strategic; -- To ensure that the Mining, Minerals and Metals related concerns are adequately addressed within APEC processes; -- To advance the 10 mining policy principles adopted in Perth. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

6. 3. Events: -- June 2007, Arequipa, Peru -- August 2007, Lima, Peru -- July 2009, Singapore Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

7. 4. Outcomes: Capacity Building Workshops in Mining: Two Workshops： --- Stewardship-Life Cycle Partnerships (China, Nov. 2007) --- Life of Mine Planning for Improved Sustainable Development Outcomes (Indonesia, Nov. 2007) Sustainable Development in Mining in APEC Conference on Sustainable Development in Mining in APEC (23-24 July, 2009) discussed the research conducted by Russia and will submit a APEC report to the UN Commission on Sustainable Development (UNCSD). Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

8. Corporate Social Responsibility in Mining Creating a framework for corporate social responsibility stakeholder dialogue: mining industry operations. Two workshops: one in Lima, Peru; the other one in the Southeast Asian? Economies Trade and Investment Facilitation and Liberalization in Mining The MTF Friends of Chair group conducted the analysis of tariff and non-tariff restrictions in mining sector, and drafted the report Investment Barriers in Mining in APEC Economies. Collaboration with International Organizations and APEC Fora Close links with the World Bank and UNCSD. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

9. The Workplan for 2010-11 New projects activity --- Develop the project proposal “Balancing between Mining and Environment for Sustainable Development in Mining Sector Korea --- Develop the project proposal / non-project activities “Investment Facilitation in Mining” & “Research of the Tax Regimes in Mining” Chile, the Russian Federation --- Develop the project proposal “Capacity Building for Sustainable Development Indicators for Mining and Mineral Industry” Malaysia, Thailand Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

10. --- Draft APEC Report on sustainable development of mining sector for submission to UNCSD --- Several workshops on different topics of the common concerns In APEC mining sector, such as CSR, SD of Mining Industries, Investment in and Demand and Supply of Minerals and Metals. --- Prepare for high level meetings in mining sector, such as MRM5 meeting Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

11. The workshop on CSR in Lima Project “Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations” The project overseer (United States) Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

12. An overview of the status of the workshop: --- The one and a half day workshop will be held on September 23- 24, 2009 in Lima, Peru. It will bring together approximately 200 stakeholders from all levels of government, particularly local, as well as industry and civil society groups such as local community groups, labor and non-governmental organizations. The purpose of the workshop is to focus on the process for establishing the framework for a successful dialogue. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

13. --- Over the course of two sessions, panelists will provide presentations related to 1) the steps for establishing a dialogue/partnership, and 2) best practices for revenue management and distribution. --- The key outcomes will result from a plenary session devoted to the interaction of panelists and attendees as they share their ideas and experiences, highlighting best practices and lessons learned. --- The project overseer will provide a summary report to the MTF for submission to the APEC Secretariat. It is expected that the results could be the basis for additional APEC work on corporate social responsibility in other industry sectors, as well as serving as an integral component of the planned MTF submission to UNCSD review of the mining sector. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

14. I do encourage you actively participate in the coming one and half days. Thank you and enjoy your stay. Special thanks to the USA and Peru. Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

15. RATIONALE FOR WORKSHP --- In 2007 the APEC Mining Ministers issued a call-for-action in the areas of effective governance and sustainable development by creating a framework for a dialogue on CSR --- This framework should serve as a means for ensuring that member economies establish an environment conducive to attracting investment and fostering sustainable development in the mining sector --- These plans are in line with 2008 APEC host country Peru’s theme of corporate social responsibility Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

16. WHAT IS THIS WORKSHOP --- An APEC funded event that is part of the work program of the APEC Mining Task Force --- Organized by a member economy serving as the APEC project overseer Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

17. PURPOSE OF WORKSHOP --- To focus on the process (or how to go about creating the space for the dialogue), ensuring that all participants are involved in the development of CSR --- Is not to conduct the actual dialogue among stakeholders --- But to intensify the dialogue among governments and stakeholders regarding how best to improve efficiency, transparency and accountability relating to the sustainable development of an economy’s natural resource endowment at the local, regional and national levels Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

18. WORKSHOP OBJECTIVES --- Provide capacity-building to APEC member economies engaged in the mining sector on relevant CSR issues by sharing best practices, case studies and lessons learned from key stakeholders --- Evaluate the outcome of the workshop and consider using this approach as a model for CSR activities in other areas within APEC Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

19. PARTICIPANTS --- Stakeholders from government, industry, and civil society groups --- Owners and managers of private companies engaged in mining operations, company employees, and community leaders --- Government officials from all levels (national, regional, local) Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

20. BENEFITS TO PARTICIPANTS --- Explore the potential mechanisms for a CSR dialogue among stakeholders and between stakeholders and the public sector --- Define stakeholders’ roles and responsibilities in a CSR dialogue --- Develop realistic stakeholders’ expectations --- Promote transparency among stakeholders --- Establish the elements of a sustainable CSR dialogue Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

21. STRUCTURE OF WORKSHOP --- Two panel sessions on key elements of CSR: ◆ Establishing Dialogue/Partnership ◆ Best Practices for Revenue Management and Distribution --- Speakers will provide 20 minute presentations followed by question and answer period with panel moderator --- Plenary during which moderators will present the views/themes that emerged from their panels, as well as their comments, followed by open discussion Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations

22. OUTCOME OF WORKSHOP --- A brief summary of major themes to be compiled by the project overseer and submitted to the APEC Mining Task Force --- Mining Task Force to submit paper to APEC Secretariat --- Mining Task Force to include summary as part of a document submitted to APEC Mining Ministers for approval per MTF work plan’s requirement for a submission to the United Nations Commission on Sustainable Development in accordance with the UNCSD review of the mining sector in 2010-2011 Creating a Framework for Corporate Social Responsibility Stakeholder Dialogue: Mining Industry Operations