Mining & Biodiversity Conservation Management February 13, 2014

Mitigation Hierarchy

Mine Albert, Quebec, before and after reclamation

Mine Albert, Quebec, before and after reclamation

Trojan Pond, BC

Lumby Mine Tailings Pond Before and After

Open pit coal mine waste dump after re-vegetation to forestry and wildlife end land use.

Grizzly bears utilizing a reclaimed mine area.

Jwaneng Mine and Game Reserve: Botswana

Privilege to operate – getting community support is key

• A 2008 study of 190 oil and gas projects by Goldman Sachs showed that lead times to production had almost doubled in the previous decade. A follow-up study found that nearly half of the risks facing projects were non-technical in nature, with ‘stakeholder-related’ risks being the single biggest issue.

• The costs resulting from delays associated with community conflicts are substantial. A day’s delay for a mineral exploration project costs approximately $10,000. For a major mining project, the costs of every week of delayed production soar to an estimated $20 million in net present value terms.

• These risks are recognized by many business leaders. Ernst & Young has consistently rated ‘maintaining a social license to operate’ among the top business risks facing the mining sector over the past six years.

MAC members accept that a corporate commitment to biodiversity conservation is essential and have agreed to the following commitments to ensure biodiversity conservation is managed effectively by: • Working to positively contribute to biodiversity conservation • Working with key communities of interest to implement responsible policies

and practices • Being transparent through public reporting on issues related to mining and

biodiversity conservation • Respecting protected areas and working with key COI on the

establishment of protected areas • Not exploring or developing mines in World Heritage sites.

Towards Sustainable Mining: Mining and Biodiversity Framework

Biodiversity Conservation Management Protocol

The protocol consists of three performance indicators: 1. Corporate biodiversity conservation

commitment, accountability and communications

2. Facility-level biodiversity conservation planning and implementation

3. Biodiversity conservation reporting Level A: • Demonstrated senior management

commitment to biodiversity conservation management

• Defined responsibilities for implementing the corporate commitment

• Implementation of a management system for significant biodiversity aspects

• Reporting system for internal and external reporting is in place

Biodiversity Offsets

Increasing numbers of companies are making ‘no net loss’ or ‘net positive gain’ commitments and need tools to meet those commitments Example: Rio Tinto and biodiversity - working towards Net Positive Impact

Drivers of biodiversity conservation and offsets

• Maintain access to resources (access to land for

exploration and possibly for operations) • Strengthen access to capital, e.g., revised IFC

requirements • Strengthen privilege to operate • Facilitate adherence to national legislation where this

already exists • First-mover advantage in advance of regulation

Offsets: Restoring Wetlands at Great Salt Lake

• The Inland Sea Shorebird Reserve near Salt Lake City

• Created by Rio Tinto’s Kennecott copper mine in partnership with the US Army

• Offsets the loss of 460 hectares of wetlands when the company expanded its tailings impoundment in 1996.

• The Reserve is now used by

120,000 shorebirds, waders and other water fowl each year. More than 200 bird species have been recorded.

Community Biodiversity Planning in Burkina Faso

• IAMGOLD’s Essakane mine in Burkina Faso has been working with the local community to improve local biodiversity.

• Over 100,000 trees have been planted • All native species • Many have special utilitarian or cultural

importance to the local population

• Although the community forests are only a few years old, the participatory and community-driven process has already proven successful in providing direct benefits as a source of food, fodder, natural pharmaceuticals, wildlife habitat and shade.

Future challenges • Implementation

• Additionality, community engagement, measurement and metrics, long-term management and financial security

• Costs • Multiple overlay of legislation • Ratios and multipliers • Transaction costs

• Integration • Combining financial lender requirements with national

frameworks

• Severance of liability • Placing a cap on liability under appropriate legal frameworks

For additional information

Ben Chalmers Vice President, Sustainable Development

bchalmers@mining.ca

www.mining.ca

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