Sustainable Mining Development From Concept To Action

Sustainable Mining Development
From Concept to Action
John Strongman
Mining Advisor, World Bank Group
With research support from Irina Mishurny-Santini
Mining and the Community II • Madang, Papua New Guinea • September 16, 2002
1
1. Background
July 1998 Mining and the Community

Conference at Madang, PNG
My 1998 paper “From Enclave to Sustainable Development”

emphasized the following actions:
Meaningful consultation between the mine and the
community
Equitable benefit sharing, especially for affected people
Training and capacity building for the community
Support for local businesses and outsourcing of services
This presentation looks at what has happened since then
DRC Conference • Kinshasa • April 23, 2002
Good morning ladies and gentleman; it is a pleasure to be here this morning.

Four years ago, at the July 1998 Madang Conference, I presented a paper entitled
“From Enclave to Sustainable Development”.
In that paper I outlined what I saw as some emerging trends regarding sustainable
mining development
This morning’s presentation returns to those ideas, my aim is to
•place them in a more general sustainable development context,
•present some examples of sustainable development in action, and
•look at the implications for some of the key stakeholders
Because of the time available, my presentation will only touch briefly on what are
very important topics.
Many of them will be addressed in much greater detail by other speakers.
My paper is a survey paper and as such it should be noted that the text of the paper,
as well as some of the slides in this presentation, contain considerable material
directly taken from the various papers, proceedings, and presentations (including
associated press releases) referenced in the report.
2
2. Introduction
Sustainable Development is in the forefront of the overall development agenda as

shown by the Johannesburg Summit and in the forefront of the mining agenda as
shown by the the Mining, Minerals and Sustainable Development (MMSD) project
The first section of this presentation looks at the Business Case for Sustainable
Development and summarizes the work of the International Finance Corporation
(IFC) and the MMSD Project.
The second section provides some examples of companies successfully applying
sustainable development approaches and looks at lessons learned from these
examples. The examples are largely taken from World Bank conferences over the
past two years on Mine Closure, Mineral Taxation and Local Management of
Mineral Wealth and from the November 2001 Sullivan Mining Round Table
The third section looks at the implications of sustainable development and the
way ahead for different players including mining companies, governments,
governments, civil
society and the World Bank
Sustainable Development is in the forefront of the overall development agenda as shown

by the Johannesburg Summit and in the forefront of the mining agenda as shown by the
the Mining, Minerals and Sustainable Development (MMSD) project
The first section of this presentation looks at the Business Case for Sustainable
Development and summarizes the work of the International Finance Corporation (IFC)
and the MMSD Project.
The second section provides some examples of companies successfully applying
sustainable development approaches and looks at lessons learned from these examples.
The examples are largely taken from World Bank conferences over the past two years on
Mine Closure, Mineral Taxation and Local Management of Mineral Wealth and from the
November 2001 Sullivan Mining Round Table
The third section looks at the implications of sustainable development and the way ahead
for different players including mining companies, governments, civil society and the
World Bank
3
3. The Business Case For Sustainable Development
What is Sustainable Mining Development?
Sustainable mining development involves mining development that is:

•Financially viable
•Environmentally sound
•Socially responsible
•Implemented with sound governance, and
•Brings lasting benefits especially for the community
Why does Sustainable Mining Development matter?

It is essential if a mining project is to contribute to effective and lasting
poverty reduction and economic development at the local and regional levels.
Is Sustainable Development affordable in practice?

There is a growing body of evidence that sustainable development actions can
provide benefits not only to the community but also to the investor.
What is sustainable development and why has it become a must for the mining industry?
There is no single consensus definition of sustainable development. I see five key
elements : sustainable mining development involves projects that are
•financially viable
•environmentally sound
•socially responsible
•implemented with sound governance (not only companies but also communities and
governments)
•have lasting value
Why does sustainable development matter? It matters if projects are going to contribute
to lasting poverty alleviation and economic development at both the local and national
levels. This involves moving from a narrow definition of “environmental sustainability”
to a broader definition which embraces “sustainable communities”
But is a sustainable development approach affordable in practice?
There is now a growing body of evidence that the “sustainable development” approach,
when well implemented, can provide net benefits not only to the community but also to
the investor.
4
Business Case For SD
4. International Financial Corporation Report
IFC’s Experience
There is a business case The Business
for sustainability for Case Matrix
many companies
IFC Report:The Business Mapping key aspects

Case for Sustainability in
Emerging Markets,
of sustainability to
recognized business
Sept 2002
success factors
Sustainability is not possible for a loss making project -

projects have to be profitable if they are to be sustainable
The first part of my presentation addresses the Business Case for Sustainable
Development. I will look at the work of two groups.
First I would like to present some of the work that has been done by the The
International Finance Corporation (IFC) which is the arm of the World Bank Group
that undertakes investments with the private sector.
IFC use the term “sustainability” rather than sustainable development – but it is
basically the same idea.
IFC have very recently published a new report entitled The Business Case for
Sustainability in Emerging Markets,
Based on more than 240 real-life examples in over 60 countries, the report analyzes
the “business case” for sustainability in emerging markets
The IFC work, finds that for many companies there is a business case for
sustainability for many companies and that IFC participation in projects can help to
bring about sustainability.
5
5. Conclusions of the IFC Report
Main Conclusions of the IFC Report on Sustainability

Sustainability is not an all-or-nothing, one-size-fits-all
proposition;
Sustainability can increase all elements of the triple bottom line
and contribute to public goods rather than simply adding
economic costs; and
Sustainability is a pragmatic pursuit, not an ideological exercise.
Overall, the report makes the case that sustainability is about

increasing opportunities, not limiting them.
The report concludes that :

(1) sustainability is not an all-or-nothing, one-size-fits-all proposition;
(2) sustainability can increase all elements of the triple bottom line and contribute to
public goods rather than simply adding economic costs; and
(3) sustainability is a pragmatic pursuit, not an ideological exercise. Overall, the
report makes the case that sustainability is about increasing opportunities, not
limiting them.
6
6. IFC - The Benefits of Sustainability
Save costs by making reductions to environmental

impacts and treating employees well
Increase revenues by improving the environment and
benefiting the local community
Reduce risk through engagement with stakeholders
Build reputation by increasing environmental
efficiency
Develop human capital through better human
resource management
Improve access to capital through better governance
The IFC report presents a business case matrix which relates key aspects of
sustainability to a set of recognized business success factors - demonstrating
graphically where a viable business case exists. Some of the main conclusions are
that companies can
reduce costs,
increase revenues,
reduce risks,
build reputation,
develop human capital,
improve access to markets
by actions to
improve environmental performance
engage with community
improve humana resurce management
strengthen corporate governace
7
7. MMSD REPORT – The benefits of SD for mining
The MMSD Report suggest that mining sustainable development can

help achieve a broad range of cost savings, including
operational costs (such as labor, health, raw materials and insurance),
financing costs,
transaction costs and
closure and post-closure costs.
Underlying these cost savings are innovative solutions and cleaner
production processes.
In addition, the MMSD Report points to higher value for goodwill on
the balance sheet, best practice influence on regulation, market
advantages and access to “ethical” investment funds.
Next is the work of the Mining Mining Minerals and Sustainable Development
Project. The MMSD Report suggest that mining sustainable development can help
achieve include a broad range of cost savings, including operational costs (such as
labor, health, raw materials and insurance), financing costs, transaction costs and
closure and post-closure costs.
Underlying these cost savings are innovative solutions and cleaner production
processes.
In addition, the MMSD Report points to higher value for goodwill on the balance
sheet, best practice influence on regulation, market advantages and access to
“ethical” investment funds.
8
8. MMSD REPORT Recommendations
Key recommendations:
Companies – adopt a sustainable development policy

– prepare community sustainable development plans
Industry – prepare a declaration on sustainable development
Labor – cooperate with industry in support of sustainable
development
Governments/industry – help establish a sustainable development
support facility
The MMSD Report includes recommendations that
•Individual mining companies develop and adopt a Sustainable Development Policy

and prepare Community Sustainable Development Plans;
•The Mining industry prepare a declaration on Sustainable Development;
•Labor support a global-level agreement for cooperation with industry in support of
sustainable development;
Both governments and the mining industry support the establishment of a
Sustainable Development Support Facility.
9
9. MMSD REPORT – How to achieve Sustainability
“Seven Questions To Sustainability” template

Establishing and implementing an effective engagement process;
Improving people’s well being;
Assuring the integrity of the environment;
Improving the local economy through economically viable
projects;
Ensuring acceptable impacts on traditional and non-market
community activities;
Establishing effective institutional arrangements and governance;
and
Achieving a positive net result in the long term with appropriate
metrics and periodic reassessments.
Equally important, the MMSD project places great emphasis on developing tools
and processes to implement sustainable minerals development and provides a series
of practical steps in the MMSD North America publication: “Seven Questions to
Sustainability”. For those of you who have not seen it, it provides a template for
identifying and addressing issues associated with implementing sustainable
development.
The seven questions relate to the following:
· Establishing and implementing an effective engagement process;
· Improving people’s well being;
· Assuring the integrity of the environment;
· Improving the local economy through economically viable projects;
· Ensuring acceptable impacts on traditional and non-market community
activities;
· Establishing effective institutional arrangements and governance; and
· Achieving a positive net result in the long term with appropriate metrics and
periodic reassessments.
10
Examples of SD
10. 2001 World Bank Mine Closure Workshop
Good Practice in Mine Closure
Elliot Lake Uranium (Canada)

Three completed
examples of “life Island Copper Mine (Canada)
after mining” Ridgeway Gold Mine (USA)
Two on-going Kelian Gold Mine (Indonesia)

Examples of
Misima Gold Mine (PNG)
Comprehensive
Mine Closure
There is a critical mass of examples of sustainable mining development being

achieved. I would now like to give a number of examples of these which strike me
as especially notable.
The first examples are taken from the World Bank Mine Closure Workshop that
was held in Washington D.C. in March 2000,
Here there were three examples – two from Canada and one from the United States
of successful mine closure – where communities have achieved “life after mine
closure” First is the Elliott Lake uranium mining operation in Canada, where
about 2,000 company housing units have been successfully converted into a
successful retirement community. Next is the Island Copper Mine in British
Colombia, Canada where there are new wood processing and aquaculture
operations. Third, is the Ridgeway gold mine in South Carolina., where the mine
introduced a bonus payment system so that it could retain the key workers needed to
complete the closure. The Washington DC conference also included two examples
of mines where a comprehensive mine closure approach is presently being
implemented – these are the Kelian gold mine in Indonesia where the local Rio
Tinto foundation will continue to assist the community after mine closure and the
Misima gold mine in Papua New Guinea where the mining company has actively
supported the community to set up its own mine closure planning task force and to
plan for the future after the mine closes..
11
Examples of SD
11. SULLIVAN ROUND TABLE, Kimberly BC Dec 2001
Examples of Mines with Sustainable Development Actions
Red Dog Lead/Zinc, Northern Canada

Helping protect the traditional lifestyle
Yanacocha Gold Mine, Peru

Social network mapping leading to a Social Development Program
Antamina Copper/Zinc Mine, Peru

Community sustainable development plan with support from UNDP
Misima Gold Mine, PNG

Building social capital through a Sustainability Planning Advisory Committee
Kudz Ze Kayah, Yukon, Canada

Supporting community interests through a Socio Economic Partnership Agreement
Following are examples from another Conference - the Sullivan Round Table - of
actions to help achieve improved living conditions and sustainable development for
local communities. Following a mercury spill in June 2000 at the Yanacocha gold
mine in Peru, the corrective actions led to ssocial network mapping so that the
company could better understand key community concerns and a social development
program was developed to respond to them. A Sustainable Development Plan has
been developed for the local communities at the Antamina copper/zinc mine in
Peru with support from the United Nations Development Program (UNDP) which
carried out a comprehensive study of the stakeholders as the basis for the plan.
Antamina is also working with other mines and the United Nations Environment
Program (UNEP) to develop and implement an emergency planning process - the
Awareness and Preparedness for Emergencies on a Local Level (APELL), which
is the first of its kind in Peru. The Misima mine has provided support to build social
capital within the local communities. In particular, a Sustainability Planning
Advisory Committee was formed which brought together representatives from
government, civil society and small business to work together to plan for their future
in he post closure period. The Kudz Ze Kayah Project, Yukon Territory is another
example of responsible mining development in Northern Canada, where following
extensive consultation a Socio-Economic Partnership Agreement was created and a
joint Management Advisory Committee established to meet quarterly to review
project activities and chart progress.
12
Examples of SD
12. RED DOG MINE – Partnership of NANA and CAMECO
1982 Mine Agreement Implemented by

Development
based on Provides for benefit Joint management
Partnership of sharing committee
Northwest Helps protect Employment
Alaska Native traditional life style committee
Association Subsistence
Provides training and
(NANA) employment and committee
And flexible work (supporting
CAMECO schedule traditional life style)
Let me provide more detail with the example of the Red Dog Mine in Alaska. I like
this example because it goes back to the nearly twenty years.
It is about what has been accomplished rather than what is planned or expected.
The agreement signed between the mine and the local tribes responded to the
concerns of the local communities
For example it provided for a flexible work schedule which was important to the
local people for them to be able to maintain their traditional pastimes such as fishing
and hunting.
Specific agreements were made and the necessary implementation mechanisms were
put in place
For the most part the implementation mechanisms were committees such as the three
shown in the slide.
While the mining company had to be willing to make accommodations to the local
community which made the mine beneficial for the local communities, the company
was able to develop a successful, profitable mine.
13
Examples of SD
13. Local Management Of Mine Wealth
2001 Conference on Sustainability and the Governance of

Mining Revenue Sharing
Fiscal revenue sharing for local economy development in Papua
New Guinea presently includes the following elements
Royalties
Special support grant
Compensation
Infrastructure tax credit scheme
Equity
2002 Sullivan Round Table
Coordinated Action by Mining Municipalities in Peru has successfully
Improved their share of mining revenues
Established a dialogue with the mining industry
Next is an example of a comprehensive range of benefit sharing mechanisms that has

been introduced in one country – namely Papua New Guinea. As many of the conference
participants know better than me landowners have demanded a strong voice in the
development arrangements for new mines Papua New Guinea in the past two decades
and this has resulted in an extensive range of benefits to the landowners, and local and
provincial governments as demonstrated in the slide, which summarizes a presentation
made by Graeme Hancock at a World Bank conference last year. This has resulted in
mining-related transfers in excess of US$50 million per year to landowners, and local
and provincial governments
A key issue here is whether or not these funds are well used in practice to establish
assets that will last into the future (including intangible assets such as education) – or
whether they are squandered. The recently established trust arrangements for the Ok
Tedi mine in Papua New Guinea also provides a very important case study of benefit
sharing.
The second example here is taken from Peru. In this case an association of 200 mining
municipalities has succeeded in having a royalty law passed so that a percentage of the
taxes from mining regions that goes to the central government is returned to those
regions. In addition, a year and one half ago the Association successfully started a
dialogue dialogue on mining and development. It was started by three people and now
there are ten of the biggest companies involved in discussions with NGOs, mayors and
other government officials.
14
Examples of SD
14. Building Partnership in N Saskatchewan Mining
2001 Workshop on Local Management of Mineral Wealth

In 1977 54% of the people in N. Saskatchewan opposed uranium mining
Partnership – The Cree Tribe and the North Saskatchewan Uranium
Industry
Trust and respect building process
Local entry-level hiring, training and skills qualifications
Community support and engagement
Support for Kitsaki Companies (C$55 million turnover in 2001)
Environmental Quality Committees to monitor the environmental performance
of the mines and provide information to communities
By 2000 88% of the northern population supported environmentally
sustainable mining
The Northern Saskatchewan Uranium industry is another example of mining

sustainable development actions with a well demonstrated track record.
.In 1977 in Northern Saskatchewan, 54% of the public opposed mining. However,
in a remarkable turnaround, by 2000 88% of the northern population was supportive
of environmentally sustainable mining
The slide shows some of the key elements that made that possible.
•Trust and respect building process
•Local entry-level hiring, training and skills qualifications
•Community support and engagement
•Support for Kitsaki Companies (C$55 million turnover in 2001)
•Environmental Quality Committees to monitor the environmental performance of
the mines and provide information to communities
Let me emphasize the importance of both side being willing to develop a relationship
that was constructive and collaborative. As a result, the members Cree Tribe have
developed a range of businesses that now have a turnover of 55 million Canadian
dollars.
15
Examples of SD
15. Lessons Learned About Actions For Achieving
Sustainable Development In Mining
Consultation and relationship building between the mine and affected

people – starting at exploration - based on respect for local
community culture and land
Mine Closure Planning with strong focus on post-closure sustainability
Local Economic Development Plan and Agreements – hiring
preferences, training, small business support, joint ventures
Oversight and Management Committees
Revenue Sharing Framework with specific benefits for local
communities
Environmental and Social Protection Plans and Agreements and
Independent Verification
“we have not inherited the land from our ancestors, we are only
borrowing it from our children” old First Nations quote
What are some of the lessons that we can learn from these examples about actions
for achieving sustainable development in mining ?
Consultation and relationship building between the mine and affected people –
starting at exploration - based on respect for local community culture and land
•Mine Closure Planning with strong focus on post-closure sustainability
•Local Economic Development Plan and Agreements – hiring preferences, training,
small business support, joint ventures
•Oversight and Management Committees
•Revenue Sharing Framework with specific benefits for local communities
•Environmental and Social Protection Plans and Agreements and Independent
Verification
It is noteworthy that many of the above examples relate to projects in First Nation
Lands in northern Canada. This may partly be explained by an old quote provided at
the Sullivan Round Table by Ms. Rosie Barr of the NANA Corporation:
“We have not inherited the land from our ancestors, but are only borrowing it from
our children.”
16
16. The Importance of Starting Consultation Early
Ian Thomson quoted in the proceedings

of the Sullivan Round Table as follows:
“I could give you a list of more than a dozen

projects worldwide that will not go ahead at
least not in the rest of my life time because
they are completely and utterly log jammed
around a series of social and socio-
environmental issues that were created at
some point during the exploration phase.”
This quotation from Ian Thomson, emphasizes he importance of starting consultation

from the first contact.
17
17. The Importance of Third Party Verification
Jay Hair, International Council on

Mining and Metals (ICMM)
quoted in the Sullivan Round Table Proceedings
“It is not a question of whether or not there is

going to be independent third party
verification in the mining and mineral sectors.
The only question that I can see is whether
we are going to follow that process or
whether we are going to lead that process.
This quotation from Jay Hair points to the importance of companies supporting third
party verification especially for environmental performance
18
18. Special Challenge Of Artisanal And Small-
Small-scale Mining
Some traditional, stable operations
Many cause environmental damage and social disruption
World Bank co-convener of Consultative Group on Artisanal and Small-

scale Mining
No easy answer – preferred approach is to legalize and regularize

because tenure creates incentives for better performance and also
helps create a more receptive environment for technical assistance
that can help lead to better performance especially regarding law and
order, toxic materials, safe working, and environmental harm.
Artisanal and Small-Scale Mining (ASM) present one of the greatest challenges to
implementing sustainable mining development.
At the global level, the World Bank is a co-convener of the Consultative Group on
Artisanal and Small-Scale Mining (CASM) which was established in 2001 to help
identify and disseminate good practice solution for ASM.
In Papua New Guinea, the World Bank is the implementing agency for a Japanese
Social Development Fund (JSDF) Grant to help improve ASM in Papua New Guinea
We believe that ASM can be improved by legalizing and licensing ASM activities.
Our view is that the licensing of operations will help provide an incentive to get
artisanal and small-scale miners to be more willing and able to make modest
investments in their activities – which should bring improved productivity and better
environmental performance. More stable operations will also be somewhat more
amenable to inspection.
But there are no easy answers and I look forward to the papers that will be presented
on the topic.
19
The Way Ahead
19. What Mining Companies Can Do
Companies can understand what sustainable development means and translate this into a
policy that is fully endorsed and supported by Senior Management and then fully
communicated to managers and staff. This is essentially a process of internal change.
Feasibility and
Exploration Operational Closure and
Construction Post Closure
Forge effective
community
Identify and Build respect partnerships Physical
inform and trust with reclamation
Set up joint
communities local
monitoring Post closure
communities
Overcome Support monitoring
mismatch of Minimize training and Help
interests and negative capacity
community
capabilities design and building
prepare for
construction Outsource jobs mine closure
impacts to community
What does this mean for the future? For companies, the starting point is to develop a
clear understanding of what sustainable development means and to translate this into
a policy that is fully endorsed and supported by the Board of Directors and Senior
Management and then fully communicated to managers and staff in operating units.
This is essentially a process of internal change.
What are the actions companies can take?
At the exploration stage companies can identify and inform communities about what
they are doing and work to avoid communities being disadvantaged by their lack of
knowledge and capabilities.
At he feasibility and construction stage companies can make a determined effort to
build respect and trust with the communities and design and construct he project in
line with best international practice and minimize the footprint of the project.
Negative impacts should be minimized, mitigated and compensated
During operations, companies can forge effective partnerships, accommodate third
party or joint monitoring of key environmental and social impacts ; support training
and out source jobs to the community.
Finally companies can help the community prepare for closure and post closure stage
and can close the mine in a environmentally responsible manner and undertake post
closure monitoring.
20
The Way Ahead
20. What Governments Can Do
Government actions set the rules that shape the financial viability,
viability, economic soundness,
social responsibility and governance of mining projects and also determine the effectiveness
of public sector services delivery
Feasibility and
Exploration construction Operational Closure and
Post Closure
Set Require good Ensure good Help community
Administrative practice in monitoring and prepare for
Rules and environmental compliance closure including
Procedures for and social Provide pot closure
Information assessments Community service delivery
Dissemination and construction services levels
And activity Ensure equitable Oversee mine
Consultation sharing of closure and post
Ensure benefits within
Sets and funds community has closure
overall fiscal
service access to studies monitoring
decentralization
Delivery roles policies
Governments can support sustainable development in several ways.

At the project design stage for major developments, Government can ensure that the mine
design process include adequate baseline environmental and social studies and both
environmental and social impact assessments. Government can also ensure that the
community has good access to feasibility studies before they are finalized and has full
opportunity to express its views.
During construction and once a mine is operational, Government can ensure adequate
monitoring arrangements and company compliance with environmental and social
agreements. All too often in the past the central government has had an entirely
inadequate presence at the mine site in terms of monitoring performance and helping
resolve conflict. Another important role for Government is ensuring that the necessary
capacity is in place for the provision of effective and sustainable health, education and
other municipal services to the community. Government is also responsible for ensuring
equitable sharing of benefits from the mine by setting for implementing rules and policies
regarding the collection and use of fiscal revenues. When the end of mine life is in sight,
Government can ensure that mine decommissioning and reclamation plans are adequate
and that they are implemented properly. Government can also work with communities to
help them prepare themselves for life after the mine closes and to ensure that any social
assets or infrastructure operation by the mining company is properly transferred with
adequate funding to the local governments or country.
21
The Way Ahead
21. What Communities Can Do
Communities are often able do far more to shape a project than they
they may at first realize
Feasibility and
Exploration Operational Closure and
construction Post Closure
Educate Organize Develop leadership Prepare for
community members and and community post-closure
members build consensus capacity to stand situation
on own feet;
about mining
Develop Avoid Monitor mine
Become mechanisms to dependency/ rehabilitation,
prepared to resolve internal handout mentality; clean up and
respond to differences and Build community asset disposal or
proposals conflicts infrastructure; transfer
Participate in
project monitoring Work on
establishing
Develop regional
approaches with adequate post
other communities closure services
The third important stakeholder in this process is the community itself – together
with community based organizations (CBOs) and non-government organizations
(NGOs) and any other organizations that may help communities or represent their
interests.
Communities, and especially remote communities, are often very unprepared to deal
with the presence and impact of major companies.
It is no surprise that they can quickly feel overwhelmed because there is an
enormous mismatch in knowledge, experience, resources. But many communities do
not fully appreciate the full range of actions that they can take to fully benefit from
mining projects Part of the key here is for the community to organize itself
effectively so that it has a strong internal consensus, effective planning and good
leadership.
As demonstrated by the earlier examples much can be accomplished – but this
requires building community planning capabilities and leadership, developing a
constructive engagement with the mine and taking a long term view.
22
The Way Ahead
22. What The World Bank Group Can Do
Encourage and support sustainable development - especially the

integration of sound environmental and social practices into overall
management/ decision making processes in private mining projects
Help countries develop mining and environmental laws and regulations
Develop social and environmental tools, guidelines and safeguard policies
Share cross-country experiences and disseminate cutting edge

knowledge; facilitate partnerships; convene workshops etc.
Establish a “Sustainable Mining and Local Development Technical

Assistance Program “ with support from donors and mining industry
Finally – what can the World Bank Group contribute to the process?
Our approach is based on the principle that getting the process right matters more
than narrow technical standards. There are a broad range of activities that we
undertake to support governments, communities and investors.
The practices procedures and safeguard policies that we use for our own projects are
frequently used by private investors for their projects, even when the World Bank
Group is not directly involved in the project.
Most importantly we have produced a Poverty Alleviation Sourcebook which
includes a Chapter on how mining can contribute to poverty alleviation and
economic development.
Finally, a new initiative is presently being prepared by the World Bank Group and
discussed with potential donors and the mining industry.
This initiative would lead to the establishment of a new Sustainable Mining and
Local Development Technical Assistance Program which will deliver technical
assistance to communities, companies and governments to promote, implement, and
disseminate best practice sustainable development around mining investment
projects.
23

Sustainable Mining Development From Concept To Action

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Sustainable Mining Development

From Concept to Action

With research support from Irina Mishurny-Santini

July 1998 Mining and the Community

My 1998 paper “From Enclave to Sustainable Development”

Good morning ladies and gentleman; it is a pleasure to be here this morning.

Sustainable Development is in the forefront of the overall development agenda as

Sustainable Development is in the forefront of the overall development agenda as shown

What is Sustainable Mining Development?

Sustainable mining development involves mining development that is:

Why does Sustainable Mining Development matter?

Is Sustainable Development affordable in practice?

IFC Report:The Business Mapping key aspects

Sustainability is not possible for a loss making project -

Main Conclusions of the IFC Report on Sustainability

Overall, the report makes the case that sustainability is about

The report concludes that :

 Save costs by making reductions to environmental

 The MMSD Report suggest that mining sustainable development can

 Companies – adopt a sustainable development policy

The MMSD Report includes recommendations that

•Individual mining companies develop and adopt a Sustainable Development Policy

 “Seven Questions To Sustainability” template

Good Practice in Mine Closure

Elliot Lake Uranium (Canada)

Two on-going Kelian Gold Mine (Indonesia)

There is a critical mass of examples of sustainable mining development being

Examples of Mines with Sustainable Development Actions

Red Dog Lead/Zinc, Northern Canada

Yanacocha Gold Mine, Peru

Antamina Copper/Zinc Mine, Peru

Misima Gold Mine, PNG

Kudz Ze Kayah, Yukon, Canada

1982 Mine Agreement Implemented by

 2001 Conference on Sustainability and the Governance of

Next is an example of a comprehensive range of benefit sharing mechanisms that has

 2001 Workshop on Local Management of Mineral Wealth

The Northern Saskatchewan Uranium industry is another example of mining

 Consultation and relationship building between the mine and affected

Ian Thomson quoted in the proceedings

“I could give you a list of more than a dozen

This quotation from Ian Thomson, emphasizes he importance of starting consultation

Jay Hair, International Council on

“It is not a question of whether or not there is

Some traditional, stable operations

Many cause environmental damage and social disruption

World Bank co-convener of Consultative Group on Artisanal and Small-

No easy answer – preferred approach is to legalize and regularize

Governments can support sustainable development in several ways.

Encourage and support sustainable development - especially the

Help countries develop mining and environmental laws and regulations

Develop social and environmental tools, guidelines and safeguard policies

Share cross-country experiences and disseminate cutting edge

Establish a “Sustainable Mining and Local Development Technical

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Save costs by making reductions to environmental

The MMSD Report suggest that mining sustainable development can

Companies – adopt a sustainable development policy

“Seven Questions To Sustainability” template

2001 Conference on Sustainability and the Governance of

2001 Workshop on Local Management of Mineral Wealth

Consultation and relationship building between the mine and affected