Global Trends and Mining ChallengesMarcela Serrano & Raymond Philippe

What are the future trends ?

What are the new goals inmining ?

What do we need to change ?

Why we need to invest more than ever in social impacts!!! Philanthropy ? Responsibility ? Permission? Marketing ? Business?

The New Global Trend“ Era of Social Participation ”

Equality & Innovation

Green Economy and Eco-Efficiency

Socially Responsible Investments

Social Diplomacy

Conscious Capitalism

1850 1900 1950 200019901980

1 2 3 4 5

CERTAINTY

The trajectory of industrial modernity

Developing countries usage of natural resources trend

Green movement in the North

Trajectory of reflexive modernity

in developed countries

UNCERTAINTY

Reflexive modernityIndustrial modernityPre-modern

“Era of Social Participation”

CSR

Economic growth with social and Environmental

inclusion

Thinking globallyacting locally

Long-term vision

Private companies are important actors in

Global Development

More empowered actors: Civil Society, NGOs,

and multilateralorganizations

5

21%

19%

14%8%

7%

6%

6%

19%

Mining Projects (2009-2020)

Chile Peru Canada Australia

Argentina Congo Mexico Otros

Big Business – Big Responsibilities Mining: The most relevant sector in the Chilean economy:

19.2% of GDP 33.7% Global Copper Production

Era of Social Participation in the Mining Industry

Source: Consejo Minero 2011

Challenge :Implementation of Socially

& Environmentally Sustainable Practices

SustainabilityImproving development and human well-being without

threatening the environment and the communities for long

periods of time.

Sustainable Mining

Economics

SocialEnvironmental

Local and International Regulatory Framework

Exploration Planning Construction Operation Mine Closure Post – Closure

Stakeholder Engagement

Identified Social Impacts

Stakeholder Engagement Plan

Win to Win Approaches

Sustainable Mining Development Cycle

Energy and Water Efficiency

Sustainable Extraction Techniques

Improved Waste Management

There is a very close relationship between communitiesand water management

Challenges should be addressed jointly

Challenges “Communities and Water”

Identify hazards and sources of risk Estimate levels of risk Act to manage risk

Assess their consequences Evaluate implications

Implementing a win-win approach Promoting empowered projects Incorporate social process in the Corporate Management Model

Challenge N°. 1: Managing Relations with the Communities

Levels of Risks and societal concerns

Unacceptable Mining Operation Level of risk is unreasonably high

Tolerable Mining OperationRisks from activities that people are prepared to tolerate to secure benefits as long as they are informed

Broadly acceptable Mining Operation Risks regarded as insignificant and adequately controlled

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1800 1960 1980 2000 20120

5

10

15

20

25

30

35

Year

Num

ber

of N

GO

’s

Increasing NGO’s Participation in Latin America

Increasing Global Awareness of Human Rights

International Protocols and Guidelines for Sustainable Mining

Integrate water resources managementto avoid conflicts

Challenge N°. 2: Managing Water in a Sustainable Manner

Water Footprint The measurement of Human´s appropriation of freshwater resources.

Carbon FootprintThe measurement of the impact on Green House Gasses (GHG) due to our activities (quantified as CO2).

Methodology for Understanding“Measure, Mitigate & Compensation”

Water stress (Water demand

higher than available in

Q/Q)

Social pressure

Earth needs to produce enough food to feed 8 billion people by 2025Water demand will increase by 62%

Sustainable Water Solutions to Avoid Conflicts

85%

6% 4% 4%

Water Consumption in Chile

Agriculture Industry Domestic Mining

Source: Cochilco

500 litres of fresh water / Ton

Oranges

300- 1.000 litres of fresh water / ton

Processed Mineral

Benefits of Sustainable Mining Operations

Financing: Financial centers measure impacts, not only results associated with a project but also in their long- term effects.

Risk Control: Avoiding stopping operations .

Ethical Business: Responsible practices enhances company reputation.

Innovation: Efficiencies in operations, products and services.

Conclusions

Applying International protocols help to reduce risks.

Community empowerment – Win - Win Approach.

Identify early risks and on time action.

Ethical practices throughout the project cycle chain.

Sustainability is key to succeed in the new global context.

Being rather proactive than reactive.

Marcela SerranoSpecialist in Water and International Relations

m.serrano@hatch.cl