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Toward New Public-Private Sector Partnerships for Sustainable Development in Resource Extraction Industries A Private Sector Perspective International.

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Presentation on theme: "Toward New Public-Private Sector Partnerships for Sustainable Development in Resource Extraction Industries A Private Sector Perspective International."— Presentation transcript:

1 Toward New Public-Private Sector Partnerships for Sustainable Development in Resource Extraction Industries A Private Sector Perspective International Conference, McGill University, Montreal March 29-30, 2012 Rio Tinto Etienne Lamy Principal Advisor Communities & Social Performance

2 Multi-stakeholder Partnerships …. A global trend International Council on Mining & Metal (ICMM) “After five years of research, the Resource Endowment initiative has found that multi-stakeholder partnerships can be a powerful way to overcome development challenges and maximize mining's positive impacts, avoiding the “resource curse”. Position Statement (January, 2010) Ref: 29 March Mc Gill - ISID International Conference

3 Question 2 : 29 March Are there effective practices or models that can be identified for achieving this goal? Mc Gill - ISID International Conference

4 Internal support systems Communities & Social Performance Control Architecture The way we work Communities policy Multi year Communities & Social Performance planning Standards Mandatory requirements Management Monitoring and reporting Assurance Communities SMA Social risk analysis (SRA) Rio Tinto site visits Independent audit Reporting Annual workbook SD report SEART Guidance notes Communities multi year planning Socioeconomic knowledge base Trusts, funds and foundations Cultural heritage Consultation & engagement Resettlement Communities target Compensation, benefits & resource access Community contributions & activities Social risk analysis Social impact assessment Site managed assessment Community agreements Complaints, disputes & grievances Communities & Social Performance competencies

5 Communities Engagement Practices Participation Agreements Regional Economic Development Co-environmental Monitoring Grievance Mechanism 29 March 2012 Mc Gill - ISID International Conference 5 Q2 - Effective practices Key elements good communities engagement

6 Participation Agreements (IBAs) RT Mineral/Argyle, Australia

7 7 Regional economic development – Rio Tinto Alcan Canada, Saguenay – Aluminium cluster Full time dedicated team of experts in regional economic development –SME evaluation –Support projects and their promoters –Link to RTA network Knowledge transfer in specific areas : –Environment, Health and Safety –BI / Lean / 6 sigma –Innovation leveraging the R&D center (CRDA) Risk capital/Innovation financing in targeted sectors + adhoc management support to address project gaps Support to sub- contractors Creation of 816 jobs Design and manufacturing of wagons and motorcar (Ex. St-Félicien Wilderness Zoo sightseeing cars) Amphibian vehicle for the mining industry. Shell and numerous components made with aluminum, designed and fabricated locally Design and fabrication of heat exchangers Specialised aluminium plates and blocks

8 Environmental co-monitoring Diavik Diamond Mine (RT Minerals), Canada In response to First Nations communities environmental concerns: Environmental Agreement Environmental Monitoring Advisory Board (All 5 signatory nations, DDMI & Gvt.) Focus: scientific monitoring combined with traditional knowledge Examples of outcomes mixing science & traditional knowledge: –Fish palatability study & monitoring –Caribou fecing plan 29 March 2012 Mc Gill - ISID International Conference 8

9 Grievance mechanism RT South America (ICMM) 29 March 2012 Mc Gill - ISID International Conference 9 Guiding principles Legitimacy and trust: The communities and stakeholders should consider the administration and management of complaints and grievances to be a legitimate process. They should have trust in the process and its results. Accessibility and dissemination: Every member of the communities affected by the company operations should have easy access to the mechanism and an understanding of how the process works. It should be understandable to anyone in the communities affected by project operations. Transparency and confidentiality: The process and its results must be transparent and clear to all parties. It should also protect the confidentiality and privacy of the claimants and parties involved. Dialogue and consultation: The process should focus on communication, dialogue and consultation among the parties in order to determine a solution acceptable to everyone. Predictability in the process and compliance: The mechanism and its process must be predictable in terms of the stages used to resolve grievances. It must also provide the claimant with a process schedule to which the company must adhere.

10 Question 3 : 29 March How can government policies and the activities of relevant non-governmental organizations facilitate such public-private sector partnerships? An example from Guinea, West Africa Mc Gill - ISID International Conference

11 Republic of Guinea Mining investment: Total: Approx. $50 billion /10 years Rio Tinto: 10 to 15 billion USD Will Guinea experience a resource curse or Get it Right? 29 March 2012 Mc Gill - ISID International Conference 11 TI Corruption Index: 164/182 GDP per capita: $ 450

12 RTA Africa - Guinea – Boké Region (Bauxite) Capacity Building of Local Governments Project Focus Capacity building. good governance & local development benefits sharing 29 March 2012 Mc Gill - ISID International Conference 12

13 Guinea Project ….. Who benefits ? ALL Improved local good governance Improved use of development resources Prevention of conflicts NGO Replicate a successful model in region with potential for conflict Program growth / developing a niche Government (PACV) Test a new partnership model with the Extractive Industry Gain policy intelligence for review of the Mining Code IFI (AFD) Program expansion in area of governance and policy reform Leadership role in replicating a proven model with the extractive industry Gain intelligence for policy dialogue on new Mining Code RTA Foundations for good management of future tax revenues Compliance with Guinean regulation – Code des collectivités CR Expanded access to a national program Access to resources to implement Local Development Plans 29 March 2012 Mc Gill - ISID International Conference 13


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