MAC

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Towards Sustainable Mining A Necessary Action
Presentation to MSST November 8, 2005
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THE UGLY CANADIAN
KUMPTOR KYRKYZSTAN
THE PHILIPPINES MARCOPPER
LOS FRAILES SPAIN
GUYANA OMAI
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Projects that have Attracted Controversy

• Antamina Peru
• Kelian Indonesia
• Marinduque Philippines
• Rosia Montana Romania
• Tambogrande Peru
• Glamis Guatemala
• Tulsequah Chief Canada

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Learning from Success

• Musselwhite
• Raglan
• BHP-Ekati
• Diavik
• Sullivan
• Syncrude Expansion

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The Sustainability Advantage
The return on investment from aggressively
improving company-wide sustainable development
knowledge and initiatives can make other
traditional investment opportunities seem
trivial. Bob Willard
Bob Willard is a leading expert on the business
value of corporate sustainability strategies. He
has authored several books on the issue and has
given over 150 keynote presentations to
corporations, consultants, academics and
nongovernmental organizations.
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We Are Not Alone

• Canadian Chemical Producers
• Forest Products Association of Canada
• Canadian Electricity Association
• Canadian Association of Petroleum Producers
• Environmental Excellence in Exploration
• International Council on Mining and Metals
• Minerals Council of Australia

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The Bottom Line for TSM
Why Towards Sustainable Mining?

• The status quo is not sustainable

• Our social licence is at risk

• The bar keeps rising

• We must improve our performance, both operational
  and social
• We must improve public opinion of our industry by
  taking action collectively

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Early Research

• Identify performance gaps and opportunities for
  alignment with COIs
• Guiding Principles
• Internal Dialogue -- A process of cultural change
• Outreach -- Developing the skills for, and
  implementing, outreach at the community level
• Progress on initial critical issues

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TSM Licence to Operate
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TSMBuilding the Architecture
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TSM Guiding Principles
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TSM Guiding Principles
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TSM Performance Indicators

• In addressing the TSM Guiding Principles, MAC
  developed performance indicators to

• Respond to critical performance areas

• Demonstrate performance

• Facilitate continuous improvement toward
  recognized best practices

• Build credibility and trust with communities of
  interest

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TSM Elements and Indicators
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Reporting
Outreach, Energy and Tailings are measured on a
5-level scale

• No action has been taken activities purely
  reactive, no systems in place
• Some actions, but sporadic and not fully
  documented systems/processes planned and being
  developed
• Systems/processes are developed and implemented
• Integration into management decisions and
  business functions
• Excellence and leadership

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MAC TSM Public Reporting
Public Reporting of MAC Member Assessments on
Performance Indicators

• Towards Sustainable Mining Progress Report

Assessment Protocols for 2005 Reporting Year
External Verificationto Begin in 2006
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COI Advisory Panel

• Terms of Reference
• Help MAC members, COIs improve industry
  performance
• Two-way dialogue
• Input to and support for TSM goals

Reports on Issues, Recommendationsto MAC Board
and Communities of Interest
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COI Advisory Panel

• Participation
• 14 external interest-group members
• 5 MAC board members
• 1 junior mining industry representative

Meets Twice Per Year Work of Panel Posted on MAC
Web Site

• Summary minutes, etc.

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COI Advisory Panel

• Provides Advice on
• TSM Guiding Principles
• Input incorporated
• Reporting content and quality
• Article from panel in next years report
• New performance indicators and criteria
• Verification system
• MAC membership criteria
• Emerging issues and challenges
• Establishing a Work Plan
• Development of consultation guidelines
• Environmental effects monitoring

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Work-in-Progress and Future Issues

• Additional Performance Indicators
• Good neighbours
• Biodiversity policy
• Environmental management systems
• Closure and reclamation
• Health and Safety
• International Application?

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Benefits of TSM Performance Measurement

• Driving performance
• Refocusing and stimulating activityon
  performance gaps
• Drawing attention to goals and targets
• Creating a culture of achievement
• Identifying trends and comparing with others
  (peer pressure)
• Transparency
• Earning our social licence
• National policy impact

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Towards Sustainable Mining A Necessary Action
Presentation to MSST November 8, 2005