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Business

SPECIAL REPORT: Mining and sustainable development – the Australian way

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(Conclusion)
Australia and mining

The mining industry makes a major contribution to the Australian economy. The minerals sector is in fact Australia’s largest export sector, accounting for 37 percent ($55 billion) of exports of goods and services in 2002-03. Mining accounted for 5.8 percent of Australia’s gross domestic product (GDP) in 2001-02.

Mining companies, they noted, are often the major non-government contributor to the development of regional Australia, providing a large part of the economic and social infrastructure in these remote areas, and employment opportunities for local and indigenous communities. 

The mining industry has a strong commitment to sustainable development. Along with health and safety, sustainable development is a leading industry priority, with the Minerals Council of Australia setting up a Sustainable Development Committee to support members to further improve the contribution they are making to sustainable development.

In its report during the said APEC meeting, Australia said the mining industry has already set standards for environmental management through the Australian Minerals Industry Code for Environmental Management. All members of the Minerals Council are required to be signatories to the Code, which among other things requires annual public environmental reporting, a verified survey of environmental performance, strengthening community relations and applying Code principles to all operations, in Australia or the rest of the world.

The Minerals Council is building on the objectives of the Code by developing the Australian Minerals Industry Operational Framework for Sustainable Development, to integrate sustainable development principles into management and decision making.

In 2003, the International Council on Mining and Metals took a significant step by establishing a sustainable development framework for the industry and an associated set of principles. The ICCM principles form the basis for the Minerals Council of Australia Enduring Value initiative of 2004 which provides guidance to the industry for the implementation of the following principles:

• Principle 1 – Implement and maintain ethical business practices and sound systems of corporate governance.

• Principle 2 – Integrate sustainable development considerations within the corporate decision-making process.

• Principle 3 – Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by their activities.

• Principle 4 – Implement risk management strategies based on valid data and sound science.

• Principle 5 – Seek continual improvement of health and safety performance.

• Principle 6 – Seek continual improvement of environmental performance.

• Principle 7 – Contribute to conservation of biodiversity and integrated approaches to land use planning.

• Principle 8 – Facilitate and encourage responsible product design, use, reuse, recyling and disposal of products.

• Principle 9 – Contribute to the social, economic and institutional development of the communities in which they operate; and,

• Principle 10 – Implement effective and transparent engagement, communication and independently verifying reporting arrangements with stakeholders. 

The government and the private sector are also aided by the academe in Australia’s quest to show the world that mining and sustainable development can go hand in hand.

Mining research

Established in 2001, the Sustainable Minerals Institute (SMI) is one of four major research institutes within The University of Queensland.

The Queensland government support, along with funds from the university, has allowed SMI to greatly broaden the research base into new areas of crucial importance to the mining and minerals industry, particularly into topics associated with the sustainability challenges of the industry.

SMI’s expertise include mining and geology, proceeding, environment, water, safety and health, and social responsibility.

Its approach is to work with the minerals industry to understand and implement the principles of sustainable development.

Currently, the Centre for Social Responsibility in Mining of SMI is working with a large multinational mining company on developing tools and indicators for assessing, monitoring and reporting on the local and regional socio-economic impacts of mining projects. Sites participating in this work are located in South America, Southern Africa, Southeast Asia, and Australia.

The SMI, through its Centre for Mined Land Rehabilitation, is also working closely with industry and government to ensure effective mine closure. CMLR is involved with the management and interpretation of both historic and current data collected from mine sites. This information is used to help provide scientific basis for decisions made during the process of closure planning. Such rigour leads to increased confidence in both government and communities (as seen among the people of Ernest Henry Mines) about the long-term sustainability of reconstructed landforms, the sustainability of revegetation and the subsequent land use, and the future quality of water flowing from a site.

CSIRO

Australia’s national science agency, Commonwealth Scientific and Industrial Research Organization or CSIRO is helping transform the country’s mineral industry.

According to CSIRO, changes will have to be made in the way companies explore for, mine and process minerals in Australia to ensure a long and prosperous future. This means new Australian ore bodies need to be discovered, being more efficient by doing more and producing more, mining under more difficult conditions, and having better health, safety and environmental outcomes than they are today.

CSIRO initiated the National Research Flagships to provide science-based solutions in response to Australia’s major research challenges and opportunities. Nine flagships form multidisciplinary teams with industry and the research community to delivery impact and benefits for Australia.

The Minerals Down Under National research flagship is focusing one transformational ways to:

• Discover new resources under challenging Australian geological conditions;

• Mine them in ways that significantly increase productivity and dramatically improve safety and health through the next generation of safe, geologically intelligent Australian mining systems;

• Process ores that they currently know about but can’t because they are too complex or low grade or stranded;

• Dramatically reduce the environmental footprint of the sector; and

• Sustain and grow the mining technology services sector.

CSIRO’s work aims to assist the Australian minerals industry to exploit new resources with an in-situ value of A$1 trillion by the year 2030, and more than double the associated services and technology sector to A$10 billion per year by 2015.

By 2030, CSIRO aims to have helped create an Australia in which the tallest building in Melbourne has been built from new polymer-based cements using fly ash residues (once considered wastes), where the minerals industry no longer competes with communities for allocations out of the nation’s stretched water resources, among others.

As wisely pointed out by CSIRO, the minerals industry can only operate through the existence of an unspoken social “license to operate,” a license which grows out of an assumption by the community that the impacts of mineral operations are outweighed by the benefits. Thus, the need to develop technologies to reduce the footprint of high environmental impact aspects of mining.

Mining in the Philippines

Rapid population growth and increased standards of living in many parts of the world has led to the resurgence of the mining industry and minerals exploration.

In the Philippines, majority of the new mines that will begin commercial operations are to be operated by Australian companies.

The danger is not so much from the big global mining companies who have the financial muscle, track record, and the reputation to protect, but from smaller companies who have the money to go into mining but do not have operations elsewhere and do not have to be accountable for their deeds outside of their homeland.

There are still many communities and non-government organizations who view mining companies with distrust, and rightfully so. The Philippines has had its share of mining disasters, but with its huge and largely untapped mineral resources and its dire need for investments, the challenge is to make sustainable development and mining work hand in hand here.

The world, and Australia in particular, is replete with lessons and experiences on mining from which the Philippines can learn. This way, mining can be the highly extractive industry that it is but at the same time a valuable partner in economic and social development.

AUSTRALIA

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MINERALS COUNCIL

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