panaust’s approach to sustainable development · • signatory to the voluntary principles on...
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PanAust’s approach to sustainable developmentPanAust General Manager Human Resources and Risk Management, Adrian Bell
PanAust Limited
Employees year-end 2016:Laos – 3,249Thailand – 4Australia – 52Papua New Guinea – 100Myanmar – 19
Successful mid-tier copper and gold producer
Brisbane-headquartered
Phu Kham Copper-GoldOperation
Ban HouayxaiGold-SilverOperation
GRAM
Frieda River Copper-Gold Project
Exploration Licences
Why sustainable development? Essential for ongoing success
Underpins PanAust’s growth strategy
Secures and grows the business
Creates new business by smoothing our entry into new markets
The effective management of sustainability risks makes good financial sense
Attracts talent
Proxy for good management
Right thing to do
Our efforts are helping us grow
• GRAM
• The Governments of Papua New Guinea, Laos and Myanmar
• Financiers
• Insurers
• Customers
• Sustainability Analysts
GovernanceSocial
Performance
Environment
Health & Safety
People Performance
Our Values
Leveraging culture through sustainability
Operational Performance Growth opportunities Financial performance
Sustainability structure Business conduct Product stewardship Risk management
Stakeholder engagement and community relations
Economic value generated Community development Closure preparedness
Tailings and waste rock Water management Cyanide management Energy and carbon management Land rehabilitation and closure Dust
Safety culture Contractor management Vehicles and mobile equipment Fatigue Management Crisis & Emergency Management Aviation Security management
Training and Development Employee Engagement Workplace Diversity
Strong ethical foundation
Based on a commitment to high standards of corporate governance, transparency, financial management and technical expertise
Signatories to International Standards
Commitment to our employees’ health and safety and ‘Zero Harm’ safety objectives
ERM has been the cornerstone of our business processes
Policies and standards in place
Auditing and benchmarking material risks
Maintaining our reputation
Governance
• Signatory to Minerals Council of Australia’s Enduring Value framework
• International Financing Corporation (IFC) Performance Standards / Equator Principles
• Enterprise Risk Management ISO 31000
• PanAust Sustainability Standards
• Signatory to the Voluntary Principles on Security and Human Rights
• Publically Report to GRI 4 and Carbon Disclosure Project (CDP)
• Auditing and Benchmarking (IFC Audit, Socio-Economic and Health Surveys, Beca Assurance GRI, ISO 18001 etc.)
• The General Manager, Human Resources and Risk Management oversees the integration of sustainability and group targets
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Stakeholder engagement
• PanAust seeks Free Prior and Informed Consent for development consistent with the ICMM’s Indigenous Peoples and Mining position statement.
• Inclusive Stakeholder Engagement plans in place
• Dedicated Government Relations teams
• Periodic socio-economic surveys in host communities to better understand:
– issues, community living standards, priorities and to assess the extent stakeholders believe their concerns are effectively addressed
• Engagement mechanisms provide opportunities for men, women, youth and vulnerable groups to participate in consultation, community development and decision-making processes.
• Grievance mechanisms in place
Economic value generated
PanAust has contributed to the Lao economy in many ways:• Revenues from copper, gold and silver including payments of royalties
• Profit tax and other payments
• Payment of dividends to the GoL as a ten per cent shareholder in Phu Bia Mining
• Salaries paid to employees and salary taxes
• Local procurement of goods and services.
• Training and skills development
• Investments in community development programs through community development funds (CDFs)
• Investment in regional infrastructure, sponsorship and donations
• Awarded 2 Lao Labour Order Class 1 Medals from the Government of Laos
What we have achieved for the Lao people
Empowering womenAccess to improved health care
Village Saving & Credit Funds
Localisation
Education
Supporting local businesses
Aligning employees with business strategy
Workforce localisation
planning
Technical and language trainingRecruitment and
selectionGraduate program
Leadership development
Succession planning
Mentoring program
Organisation structure
Recruitment and selection
Localisation
• Approximately 3,250 employees
• Lao-national employees account for 91 per cent of the workforce
• 17 per cent are female
• Four main languages: Lao, English, Hmong and Khmu
• 700 employees are villages close to the Company’s operations and activities
Tailings and waste rock management• Management of Acid Rock Drainage at Phu Kham is a key
issue
• Tailings Storage Facility (TSF):
– Evaluated as industry best-practice– Integrated waste facility– Waste is classified based on its acid rock drainage
potential– Uses a simple ‘traffic-light’ management plan – red,
amber, green and blue– High Potential Acid Forming (PAF) mineral and disposed
of underwater in TSF– Fleet management system is used to strictly manage
quality control of sulphur grades – At closure, all higher risk PAF to be placed under a
permanent water cover
• Extensive Monitoring programs
• Comprehensive Governance via Independent Review Pane
Ban Houayxai cyanide management
What is the Cyanide Code?
– Administered by the International Cyanide Management Institute (ICMI)
– Internationally recognised management system– A voluntary program– Nine principles and 200 standards of practice
• PanAust is a signatory to the Code
– BHX achieved pre-operational certification and is recertified three-yearly, the most recent recertification in 2016
• We view the Code as integral to ensuring the business, the environment and local communities are not put at risk
• All areas at Ban Houayxai where cyanide is used or may be present are designed, constructed and operated to Code requirements or better
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Inju
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Fatalities Lost Time Injuries
Our safety journeyTake 5Job Safety ObservationsINX (InControl) introduced
Cardinal RulesICAM Visible Safety Leadership
Deep Dives
Fatigue managementPhu Kham FM
Five Safe BehavioursPlanned Task ObservationsFatigue Committee
Senior ManagementTaskforce
Risk workshops
Zero is not the end of the journey
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Recordable injuries TRIFR
Our safety journey
What drives good safety performance?
Our expectations are high
And we are determine to remain Way Ahead