Developing Responsible Mining: International PracticesAn Australian Perspective

14 August 2013

Mr Luke BewleyManager, Sustainable MiningMinerals Productivity, Resources DivisionDepartment of Resources, Energy & TourismCanberra, Australia

Importance of mining to AustraliaDeveloping Responsible Mining: International Practices - An Australian Perspective

• Economic Development

• Responsible Mining

• Our Obligation to Society

Australian Mineral Deposits

Government structure National and International ScopeResponsible for monetary and tax policy, national law (e.g. company law, health & safety), Security & Defence, Immigration, International Relations & Trade, Foreign Investment approvals. Offshore petroleum and minerals exploration and development. Environmental oversight & approvals. Petroleum Resource Rent Tax (PRRT), Minerals Resources Rent Tax (MRRT) and the Carbon Price. Implement treaty obligations.

State and Territory ScopeResponsible for managing and allocating onshore minerals and petroleum rights, land administration, environmental approvals (including many environmental assessments), and collecting royalties on minerals produced.

Local ScopeResponsible for local matters such as town planning, building approvals, waste management and local roads.

The Australian Government

State and Territory governments

Local government

Developing Responsible Mining: International Practices - An Australian Perspective

Fiscal Settings

State and Territory Royalties•Ad valorem or ‘value based’ ~ 1.5 to 5 per cent•Profit based ~ 18 per cent•Hybrid based

Mineral Resource Rent Tax•Project based•Profit based•22.5 per cent effective rate (30 per cent headline rate)

Company Tax•Company based•Profit based•30 per cent flat rate

Taxing point

Developing Responsible Mining: International Practices - An Australian Perspective

Transparency

Mining SustainableDevelopment

Developing Responsible Mining: International Practices - An Australian Perspective

Community

Sustainable Development

Governance and Transparency

Soci

al

Tech

nolo

gica

l

Econ

omic

Envi

ronm

ent

Developing Responsible Mining: International Practices - An Australian Perspective

What is Leading Practice?

•The best way of doing things for a given mine site.

•As new challenges emerge and new solutions are developed, it is important that:

– leading practice is flexible and innovative; and– solutions are developed that match mine site

specific requirements.

•It is an evolving target – adaptive to changing standards and situations.

•Enables mining companies to earn and maintain their social licence to operate.

Developing Responsible Mining: International Practices - An Australian Perspective

The Leading Practice Program seeks to:

•Promote sustainable development and industry self-regulation through the proactive adoption of leading practice principles.

•Provide practical guidance on sustainable development issues through handbooks and workshops.

•Encourage industry and other stakeholders – including governments, to improve their social and environmental performance.

Website: www.ret.gov.au/sdminingEmail: sdmining@ret.gov.au

Developing Responsible Mining: International Practices - An Australian Perspective

Series comprises 15 handbooks: • Community Engagement & Development • Managing Acid & Metalliferous Drainage • Mine Rehabilitation • Mine Closure & Completion • Stewardship • Biodiversity Management • Tailings Management • Working with Indigenous Communities • Water Management • Cyanide Management • Risk Assessment & Management • Hazardous Materials Management • Evaluating Performance: Monitoring & Auditing • Airborne Contaminants, Noise & Vibration• Guide to Leading Practice Sustainable Development in Mining

Developing Responsible Mining: International Practices - An Australian Perspective

Leading Practice Workshops – Peru and Mexico, October 2012

•Foster sustainable mining practices.

•Improve government’s capacity to integrate , economic environmental and social aspects throughout ‘life of mine’. •Promote transparency and accountability.

•Enhance governments’ capacity in the active participation of stakeholders. •Enhancing governments’ capacity in natural resource (minerals, oil and gas) management, mining policy and regulation, water resource management.

Developing Responsible Mining: International Practices - An Australian Perspective

Social Licence

GovernmentIndustry

CommunityBuilding

Trust

Meeting Community

Expectations

Achieving Sustainabl

e Developm

ent Outcomes

Developing Responsible Mining: International Practices - An Australian Perspective

Tools for Social Responsibility• Social Responsibility in the mining and metals sector in Developing

Countries handbook

• Promotes social responsibility in the mining sector in developing countries

• Provides practical guidance – drawing on examples of Australian leading practices

• Encourage improvement in social and environmental performance – what it means to earn a ‘social license’ to operate

• ISO26000 Guidance on Social Responsibility

• UN Human Rights Council – Guiding Principles

• International Finance Corporation – Good Practice Guides

• International Labour Organisation – Codes and Conventions

• ICMM – Working Together

• Minerals Council of Australia – Enduring Value

Developing Responsible Mining: International Practices - An Australian Perspective

Tools for Community Engagement and Development

• Leading Practice Community Engagement and Development handbook.

• Leading Practice Working with Indigenous Communities handbook

• International Council on Mining and Metals (ICMM):

• Sustainable Development Principles• Indigenous People and Mining Position statement

• ICMM Good Practice Guide – Indigenous Peoples and Mining

• Mineral Council of Australia’s Enduring Values Framework

• The international Association of Public Participation Generational Framework.

• The Ministerial Council on Minerals and Petroleum Resources (MCMPR) Principles of engagement with Communities and Stakeholders.

• AA1000’s – internationally recognised framework providing overarching principles for engagement

Developing Responsible Mining: International Practices - An Australian Perspective

Tools for Environmental Management

• Leading Practice handbooks

• Water management – • National Water Initiative• ANZ marine and Fresh Water

Guidelines• National Water Quality

Management Strategy• Strategic framework for water

management in the Minerals industry

• Environmental Management systems ISO 14000 and 14001

• Environmental Protection and Biodiversity Conservation Act (1999).

• Industry Codes e.g. Enduring Value

Developing Responsible Mining: International Practices - An Australian Perspective

• Multiple Land Use – ‘Guiding Principles’

• Multiple Land Use – tools and methods

• Desired Outcomes:

• Shared commitment by al to multiple and sequential land use

• Better informed public disclosure• Merit based land use decisions• Deliver acceptable outcomes for affected

communities and landholders

Addressing competing land interests – the ‘Multiple Land Use Framework’

Developing Responsible Mining: International Practices - An Australian Perspective

Putting it all together – Life of Mine Approach

Key activities include:• Community engagement plan• Environmental impact assessments • Social impact assessments.• Relationship building with local

stakeholders, regulators and community.• Collection of environmental baseline data

including• Preliminary assessment of waste rock

characterisation • Preliminary assessment of current land use

and ownership• Identification of post-mine land uses• Commencement of planning for closure -

preliminary closure plan.

Developing Responsible Mining: International Practices - An Australian Perspective

Gracias

Mr Luke BewleyManager, Sustainable MiningMinerals Productivity, Resources DivisionDepartment of Resources, Energy & TourismCanberra, Australia

Email: luke.bewley@ret.gov.au

Developing Responsible Mining: International Practices - An Australian Perspective