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A Made-In-Canada solution to driving environmental and social performance in mining July 24, 2013 Towards Sustainable Mining
A Made-In-Canada solution to driving environmental and
social performance in mining
July 24, 2013
Towards Sustainable Mining
About MAC
• The national organization of the Canadian mining industry
• Mining, smelting and refining of base and precious metals
• Mining of iron ore, diamonds, uranium, oil sands, coal and industrial minerals
• Many associate members • www.mining.ca
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INDUSTRY’S DOMESTIC
CONTRIBUTION
• 330K employees; Wages 30-60% above other sectors
• 138 producing mines, 33 smelters and refineries
• $9B in taxes and royalties paid to governments in 2011
• $22B capital investment in 2012
• Largest private sector employer of Aboriginal Canadians
• Core supplier to clean-technology sectors
• Attracted 16% of world
exploration spending in 2012
• Efficient TSX/TSX-V processes – over 1,600 mining companies listed, 48% of their mineral projects are outside Canada
• Minerals account for 20.4% of Canada’s total value of goods exports
• Top five world producer in uranium, potash, nickel, cobalt, platinum, aluminum, diamonds, met coal, tungsten
• Large direct investment stocks – 10% of all FDIC and 9% of CDIA
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CHINA’S LONG-TERM DEMAND
• Long-term is positive: recent price declines from Euro crisis and Chinese slowdown are temporary
• China today consumes 40% of world’s base metals vs. 5% in 1980s
• Urban housing demand projected at 200 million units by 2030
• Autos: 76 per 100 people in US versus 10 in China
• India to overtake China as growth leader by 2030
CANADIAN OPPORTUNITIES
• Canada has a major (but perishable)
opportunity to supply demand from emerging markets
• Canada is competing with other major or emerging mining jurisdictions (e.g. Australia, Chile, Russia, Mongolia)
• Canada has the knowledge, experience, political and regulatory framework to be one of the safest, most reliable and environmentally responsible suppliers of mineral and metal commodities.
Why Mine Responsibly? There are many reasons why addressing social, environmental and community issues as a core part of operations is good for mining companies:
• Privilege to operate
• Performance improvement
• Risk management
• Access to capital
• Recruitment and retention
• Innovation and learning
Towards Sustainable Mining – Our Commitment Established in 2004, its main objective is to enable mining companies to meet society’s needs for minerals, metals and energy products in the most socially, economically and environmentally responsible way. The program’s core strengths are:
• Accountability – Mandatory for all members to report at the facility level
• Transparency – Annual reporting against 23 indicators with independent verification
• Credibility – Includes ongoing consultation with a national Communities-of-Interest Advisory panel to improve industry performance and shape TSM for continual advancement
TSM is MAC’s commitment to responsible mining that every member commits to implement. It includes a set of tools and indicators to drive performance and ensure that key mining risks are managed responsibly at our facilities. By adhering to the principles of TSM, our members demonstrate leadership through:
• Engaging with and supporting
local communities
• Driving world-leading environmental practices
• Committing the resources and leadership to promote the safety and health of employees
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• Off the shelf management system for key mining risks
• Easily integrated into EMS • Backed with guidance manuals • Comes with onsite and online training • Transparent • Credible, recognized as “best in class” • Growing recognition • Community of Interest engagement built into the
program
What is TSM?
Source: Canadian Business for Social Responsibility
“TSM provides a practical and tangible system of continuous improvement of social and environmental management.”
Canadian Business for
Social Responsibility
Why TSM?
• Only program for mining in the world with mandatory, independently verified facility-level public reporting
• Standard methodology: Can compare between companies and mines
• Quantifies performance for historically Hard to quantify issues
• Mine site reporting offers high resolution for detailed analysis
• Independently verified results
• High level of credibility due to Community of Interest Advisory Panel
“From an investor’s perspective, TSM has
great value as a very transparent risk management indicator encapsulating best
mining practices. Furthermore, TSM’s granularity and verified results are material to the integration of responsible mining in
the evaluation of an enterprise.” Stephen Kibsey
La Caisse de Dépôt et Placement du Québec
“The external verification part of the TSM process has contributed to Hudbay's slow and steady improvements in its operational performance.”
Shirley Neault HudBay Minerals
“It is clear that MAC ’s efforts to work with the industry in advancing its sustainability performance and accountability are paying
off in significant best practice.” Five Winds International
Environmental Footprint
Tailings Management
Biodiversity Conservation Management
Mine Closure
Energy Efficiency
Energy Use & Greenhouse Gas Emissions Management
Communities and People
Aboriginal & Community Outreach
Safety & Heath Management
Crisis Management
Community of Interest Advisory Panel
Components of TSM: Focus Areas and Protocols
TSM Performance Indicators
Communities & People Environmental Footprint Energy Efficiency
Aboriginal and Community Outreach
Crisis Management Planning Safety and Health Tailings Management Biodiversity Conservation
Management
Energy Use and Greenhouse Gas (GHG) Emissions Management
Community of interest (COI) identification
Crisis management preparedness
Policy, commitment and accountability
Tailings management policy and commitment
Corporate biodiversity conservation policy accountability and communications
Energy use and GHG emissions management
systems
Effective COI engagement and dialogue
Review Planning, implementation
and operation Tailings management
system
Facility-level biodiversity conservation planning and
implementation
Energy use and GHG emissions reporting
systems
COI response mechanism Training Training, behavior and
culture
Assigned accountability and responsibility for tailings management
Biodiversity conservation reporting
Energy and GHG emissions performance targets
Reporting Monitoring and reporting Annual tailings
management review
Performance Operation, maintenance and surveillance (OMS)
manual
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Tailings Management • Five indicators:
– Policy and commitment – Tailings management system – Assigned accountability and responsibility for tailings management – Annual tailings management review – Operation, Maintenance and Surveillance (OMS) Manual
• Three guidance manuals: – A Guide to the Management of Tailings Facilities – A Guide to Audit and Assessment of Tailings Facility Management – Developing an Operation, Maintenance and Surveillance Manual for Tailings and
Water Management Facilities • Goal is to achieve a rating of A or higher for all indicators:
– A tailings management policy and system developed and/or reviewed in consultation with COI
– An executive officer (CEO or COO) who has overall accountability to ensure that tailings are managed responsibly
– Developed and implemented a tailings OMS manual that conforms with the MAC guide to Developing and Operation, Maintenance and Surveillance Manual
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TSM Verification System
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Self-assessment • annual External verification • every three years CEO letter of assurance • posted on MAC
website in year of external verification
COI Panel Review • 2-3 companies each
year
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COI Advisory Panel
Aboriginal peoples
Environmental NGO
Economic/community development
Social NGO including faith based groups
Finance/investment
International development
Labour/workplace
Media/communications
MAC Board of Directors
Junior Mining Company Representative
• Meets twice per year
• Work of Panel publicly available on the MAC website
• Annual COI Panel Statement published in TSM Progress Report
Public Reporting
• Publication of results • company specific • aggregated for the membership as a whole
• On website (www.mining.ca) • Useful for comparison between companies (and peer
pressure)
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Performance is improving
“IAMGOLD’s reporting under the Mining Association of Canada’s Towards Sustainable Mining (TSM) initiative indicated to us that the company is proactively and systematically managing the risks associated with its tailings facilities. TSM provides valuable and detailed information about an issue that can pose significant operational and reputational risks to mining companies and their shareholders.”
Irene Sosa, Senior Analyst, Sustainalytics
Towards Sustainable Mining: Record of Performance
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TSM is maturing 8 years of self-assessments 2 rounds of external verification Recognition as a credible program New members and provincial interest
For additional information
Pierre Gratton President & CEO
www.mining.ca
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