1. Biodiversity offsets - minerals industry perspectives
Chris McCombe
General Manager - Sustainability
27 August 2019

2. About the MCA
The Minerals Council of Australia is the national peak body representing Australia’s world-class exploration, mining and minerals processing industry.
Member companies are committed to Enduring Value – the Australian Minerals Industry Framework for Sustainable Development:
Continual improvement of environmental performance.
Contribute to conservation of biodiversity and integrated approaches to land-use planning
Contribute to the social, economic and institutional development of communities in which we operate
Support the industry’s contribution to the achievement of the UN Sustainable Development Goals
We work by Advocating pre-competitive public policy for an socio-economic environment conducive to growth and prosperity
We also facilitate improved industry performance by identifying, sharing and promoting leading practice operating principles.
Member companies are committed to Enduring Value – the Australian Minerals Industry Framework for Sustainable Development.
Established in 2005, relevant aspects of this commitment includes to:
Contribute to the social, economic and institutional development of the communities in which we operate
Contribute to community development from project development through closure in collaboration with host communities and their representatives.
Encourage partnerships with governments and non- government organisations to ensure that programmes are well designed and effectively delivered

3. Industry context 7.6 per cent of GDP, $273 billion in exports
1.1 million jobs in mining and supply chains including regional and remote Australia
<0.1 national footprint
3.6 per cent of national water consumption
A significant land manager
Driver of Indigenous economic development
Significant investment in collection of environmental data and research
While

4. Industry context – global minerals demand
In the last 10 years, world consumption of steel has increased 33%, copper 31% and aluminium 78%.
Source: The Royal Institute of International Affairs,

5. Industry context
While

6. Mining and Biodiversity
The mining industry’s environmental and social performance are critical to community acceptance of the industry.
The industry is constrained by the location of the resource making biodiversity offsets are a critical tool to compensate for residual loss.
However these only part of the industry’s biodiversity management story.
While

7. Mining and Biodiversity management
Source: Leading Practice Sustainable Development Program for the Mining Industry, Australian Government
While

8. Mining and Biodiversity Management

9. Environmental Stewardship
Bush Blitz is Australia’s largest nature discovery project – a unique multi-million dollar partnership between the Australian Government through Parks Australia and the Australian Biological Resources Study, BHP and Earthwatch Australia to document plants and animals across Australia. Since the program began in 2010 Bush Blitz has discovered more than 1600 new species and has added thousands of species records to what is already known, increasing our scientific knowledge to help us protect our biodiversity for generations to come.
The Department of Environment and Heritage Protection is working with the Northern Hairy-nosed (NHN) Wombat Recovery Group to implement a major program to recover the endangered NHN wombat. At one stage there were as few as 35 NHN wombats left in the wild, and they all lived in one location. Due to the efforts of many people the population is increasing and a second colony has been established
Arid Recovery - Arid Recovery is a not-for-profit conservation initiative that has been restoring Australia’s arid lands since The Arid Recovery project aims to ensure that mining activity has a net positive impact on regional biodiversity assets. The project features a reserve of 123 km2 with predator-exclusion fencing, supplemented by broader scale control of feral animals and ecosystem regeneration. It is supported by volunteers, the local community and partners: BHP’s Olympic Dam, the South Australian Department for Environment and Water, The University of Adelaide and Bush Heritage Australia.
Facilitating Indigenous involvement in land management and conservation activities
The Great Victoria Desert Biodiversity Trust was established by the Tropicana Joint Venture to deliver lasting net-environmental benefit to the Great Victoria Desert through the provision of funds connected to TJV offsets strategy.
The four principle objectives of the Trust were developed with the WA Department of Parks and Wildlife and the Federal Department of the Environment. These objectives include:
Developing a Bioregional Plan for the GVD bioregions 1 and 2 (the Trust Area); Facilitating priority research at the landscape level and into threatened species; Funding on-ground environmental and conservation management at the landscape level, with emphasis on net conservation benefits to threatened species; and Facilitating Indigenous involvement in land management and conservation activities.

10. Biodiversity offsets – policy and implementation
The industry supports offsets as an important tool to manage residual impacts on biodiversity – and Australia is well positioned
Number of Jurisdictions with policy/legislation enabling offsets
Source: IUCN and ICMM
Cumulative rise in number of nations/states/provinces with offset legislation/policies (blue line) or with offset-enabling legislation/policies/guidance (red line). Offset-enabling
legislation facilitates the development of offsets, but does not necessarily require them.

11. Industry views
Industry experience shows the application of biodiversity offsets is a key driver of delay and cost for minerals proponents
Policies can be implemented inconsistently, made challenging by subjective factors within policy or calculators
While continuing to evolve, offset policies have historically been overly prescriptive (not outcomes based), or restrictive in terms of location and type of offsets
Separate state and Commonwealth approaches can create inefficiencies and lost opportunities to achieve ‘bang for buck’.
Can this survive harmonised species listing and conditioning?
‘Bio-banking’ markets can be thin resulting in prohibitively costly offsets.
E.G in some cases anywhere between 20K and 200K per habitat hectare.

12. Views from the ground
It is challenging to have advanced offsets and mine rehabilitation recognised
Offsets are becoming harder to find in some regions
Large risk multipliers on disturbance can require companies to establish very large offset areas. These can consume surrounding land uses, (e.g. agriculture), affecting the long-term social and economic make up of a region.
A project by project approach to offsets may result in greater overall environmental vulnerability
Not all companies have the experience and capacity to implement offsets most efficiently.
Are we achieving the best environmental outcome?
Are we achieving the best possible outcome?
E.G in some cases anywhere between 20K and 200K per habitat hectare.

13. The opportunity in offsets
Is it time to focus on the big picture?
A more strategic approach is needed – play the long game
Integrated Commonwealth and state approach to offsets
A coordinated regional approach is needed
Provide for financial based offsets contributing to a pooled fund to be used strategically, and consider:
A focus on regional outcomes
Consider moving away from like-for-like
A focus on landscape scale priorities, connectivity and resilience
Encourage land use coexistence (not lock an leave)
Existing conservation areas/the national reserve system
Leverage industry investment more effectively
Mining is a long term proposition in some regions.
Government can triage

14. Other opportunities
Opportunities exist to leverage the industry’s investment more effectively
Establish a platform to collect industry derived environmental data, including EIA data, to inform future developments, decision making and the community
Consider how best to leverage voluntary industry and other conservation initiatives in landscape scale planning, including through partnerships.
Don’t forget the people
Consider a sustainable development goal approach.
Mining is a long term proposition in some regions.
Government can triage

15.
Minerals Council of Australia 44 Sydney Avenue, Forrest ACT Phone