ANGLO AMERICAN

1
ANGLO AMERICANS PERSPECTIVE ON BIODIVERSITY
OFFSETS
Conservation International Global
Symposium Madagascar 2006

• Peter Coombes - Environmental Manager

2
Background

• Sustainable Development goal Enduring Value
  translating mineral wealth into socio-economic
  and bio-physical benefits and value
• International Council for Mining and Metals
  (ICMM)
• The challenge of mineral wealth using resource
  endowments to foster sustainable development
• Biodiversity Good Practice Guidance document
• Experience with biodiversity management and
  offsets across the globe
• Anglo Base Metals Anglo Coal Anglo Platinum
  Anglo Ferrous Industries Anglo Tarmac Mondi
• Kumba Iron Ore Company De Beers Anglo-Gold
  Ashanti
• South Africa Chile Brazil Australia Namibia
  Zimbabwe Europe Russia China
• From this background identified questions and
  challenges relating to offsets

3
Key issuesBiodiversity offsets at an operational
level

• Modern definition covers a multitude of issues
  relating to ecosystem services and human well
  being, as well as its pure sense of species
  diversity in many ways has become a confusing
  term, difficult to define and measure
• Mining required to mitigate their impacts
  therefore the focus on offsets is a like for like
  swap of what size?
• Management of offsets in perpetuity? Mines
  close!! Who takes over an offset at closure?
• The the residual impact caused by mining must
  relate to significant biodiversity to warrant an
  offset

4
Key issuesBiodiversity offsets at an operational
level

• What is significant biodiversity?
• National or regional biodiversity strategy
  identifies sensitive sites and species
• Without a national biodiversity strategy, who
  determines what is significant biodiversity the
  mine?
• Increased chance of an offset being taken over
  for its conservation value if it is in terms of a
  national or regional strategy
• Main issue there must be a good business case
  for biodiversity offset conservation!!

5
Evaluation of the business case South Africa

• Strong business cases
• Ensures continued access to land (international
  company)
• Increased investor confidence and loyalty
  (international company)
• Reduced risks and liabilities
• Strong and supportive partnerships with NGOs
• Weak business cases
• Shorter and less contentious permit cycles
• Improved community relations
• Easier access to finance
• Better relations with regulators
• Engagement with employees
• Opportunities as a development partner

6
Questions and challenges

• Is the residual impact to biodiversity
  significant? Who determines this? How is this
  measured, particularly if human well being is to
  be considered?
• How do we define and measure the biodiversity
  contribution to human well being within the
  context of a large mine?
• Does a mine purchase land and remove people to
  develop an offset?
• Could the offset requirement become another means
  for private land owners surrounding mines to
  extort money from mining companies?
• If an offset is not possible does this imply a
  no-go for mining minerals cannot be sterilised!

7
Questions and challenges

• What activities constitute an offset and what
  would fall under the criteria of net positive
  contribution?
• Is mining expected to offset secondary impacts
  what is governments role?
• What happens to an offset should a mine be sold
  does the new owner take responsibility for the
  offset?

8
The way forward

• Many questions research and partnerships
  required
• Institutional framework for biodiversity and
  offset conservation required authorities need
  to be involved cooperative governance essential
  
• Biodiversity impacts are bigger than mining
  poverty, agriculture, deforestation, etc. Need to
  place mining and biodiversity offset conservation
  within a national context and policy
• Need to find a solution to no-go areas and
  sterilisation of minerals in perpetuity -
  Government support required
• Need to link offset areas into mine closure
  objectives and plans links offsets into a legal
  framework