Transcript Expomin2008 Santiago, Chile

Minerals and Metals in Canada: A Strong
Commitment to Sustainable Development
Dr. Stephen Lucas
Assistant Deputy Minister, Minerals and Metals Sector
Natural Resources Canada
April 14, 2008
Outline
•
Mining in Canada
•
Challenges for Governments and Industry
•
Canada’s Approach
• Sustainable Development
•
•
Positive Investment Climate
•
Environmental Performance
•
Community Benefits
•
Transparency
•
Corporate Social Responsibility
Conclusion - Working Together
2
Mining in Canada
• Significant contributor to Canada’s
economy and the quality of life of
Canadians
• Mining as an value-added cluster
– Over 1200 junior exploration and
mining companies
– Over 2200 suppliers of equipment and
services
– Downstream materials and
manufacturing industries
– World-leading financial centre
$60 Billion Value of Production
Smelting
and Refining
34%
Non-metals
14%
Diamonds
4%
Metals
22%
Oil Sands
(mining)
23%
• Foundation for many rural and remote
communities
• Largest employer of Aboriginal people
3
Coal
4%
Global demand is growing, driven by China …
Percent
60
50
Aluminum
Copper
Nickel
Iron ore
China now
consumes 25% of
the world’s base
metals versus 5%
in the 1980s.
40
30
20
China imports
$100 billion in
metals annually.
10
0
1990
1998
2006
Source: AME Minerals Economics
4
… leading to sustained high commodity prices …
Metal Price Index
Index 2000 = 100
Uranium
Nickel
Copper
Zinc
Gold
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20 f
09
20 f
10
f
1100
1000
900
800
700
600
500
400
300
200
100
0
Source: Uranium – Cameco long term industry average prices
Other – LME;TradeTech
5
… a global exploration boom …
1999 Worldwide Exploration
Total =
2007 Worldwide Exploration
Total = $14B
Ca na da
Canada
12.1%
2 1. 2 %
La t i n
A u st r a l i a
Ame r i c a
Latin America
28.1%
Australia
19.3%
12 . 4 %
2 1. 8 %
P a c i f i c a nd
S E A si a
Africa
14.7%
Pacific/SE Asia
7.7%
United States
9.8%
Af r ica
4.0%
16 . 1%
Uni t e d
St at es
Rest of the
World
8.3%
7.9%
R e st o f
Wo r l d
16 . 6 %
Source: Metals Economics Group
6
… and growth in Canadian mining investments
around the world
2001
US$25.8 billion
Rest of the
world
6%
Europe
7%
Rest of the
world
11%
Latin
America
30%
Europe
2%
2006
US$64.4 billion
Latin
America
44%
Africa
13%
Africa
11%
Australia
11%
USA
17%
USA
35%
Source: Natural Resources Canada
Australia
13%
7
Overall Complexity
Complexity is increasing for industry and
governments
Local Partnerships
Stronger NGO
Visible across the
Social
globe
Complexity
Politically challenging
locations
Remote locations
Social
NGO’s emerge
Complexity Environmental
Social
Commercial LME develops
Complexity Equity markets
Capex growing
Remote locations
Low expectations
Gov’t control
Commercial Private companies
Complexity Markets
Shallow mines/pits
Technical
Simple processing
Complexity
Minor environ
controls
Capex = Capital Expenditure
LME = London Metals Exchange
Competition for capital
Commercial Consolidation of
Complexity industry
Cost escalating
Laterite HPAL
Higher tech processing
Increased Environment
Deeper mines
Higher tech processing Technical controls
Technical Increased Environment Complexity Mining lower grades
Complexity controls
Costs increasing
Time
Source: VALE INCO
NGO = Non-Government Organization
8
HPAL = High Pressure Acid Leach
Sustainable development: Canada’s approach to
realizing the benefits of our natural resources
• Sustainable development of
minerals and metals domestically
and internationally
• Safe use of minerals and metals
• Inter-governmental exchange of
best practices, collectively
addressing challenges of mineral
resources development
• Principle of multi-stakeholder
engagement and cooperation
9
Canada’s Investment Climate
• Objective is an internationally competitive investment
climate, anchored in sustainable development
– Based on principles of transparency, accountability, certainty,
democracy, institutional capacity and security
– Clear federal, provincial and territorial responsibilities
– Well-defined environmental review process and standards
– Clear land access and security of title
– Internationally competitive tax regime
– Minimum investment restrictions for foreign direct investment
– Reliable and accessible geoscientific knowledge
– Investment in research, innovation and people
10
Pressure will continue to reduce the
environmental footprint of mining …
• Regulatory standards tightening for GHGs, air
pollutants, and water effluents
• Concerns about water supplies
• Concerns about mine waste management
• Need for improved mine site rehabilitation
• Concern about acid drainage
• Need to consider the impact of climate change on
mining
11
… and for thorough and transparent
environmental impact assessments
• Canadian Environmental Assessment Act provides the legal
framework for federal environmental assessments
– Coordination by the Canadian Environmental Assessment
Agency
• Bilateral harmonization agreements with provinces and projectspecific arrangements
• Government commitment to improve regulatory performance and
process certainty
– Major Projects Management Office
– Investment of $150M in regulatory capacity
• Engagement with communities
– Consultation with Aboriginal communities
12
Technology can offer solutions
Green Mines – Green Energy: Biosolids to Bioenergy
Government-industry consortium in Canada is examining
the use of “waste” organic materials (municipal compost,
pulp and paper waste) to rehabilitate mine sites and
establish energy crops (canola, corn, soy) for the production
of biofuels
Biosolids + Mine Tailings + Energy Crops = Green Fuel
Today
Tomorrow?
13
Achieving community benefits –
Aboriginal Participation in Mining
Aboriginal communities are taking advantage of opportunities in
the mining sector…
• Mining can help build self-reliant and
sustainable communities through:
Employment, training and transferable
skills
Direct and indirect economic and
business opportunities
Improvements in community
infrastructure and social fabric
…and are securing benefits through agreements with industry
14
Aboriginal Participation in Mining
– Impacts & Benefits Agreements
• Ekati Diamond Mine, BHP Billiton
Diamond Inc. (Northwest Territories)
Spending target for Aboriginal and local
businesses.
Workplace Learning Program
• Teaches essential skills in reading, writing
math, oral communication
• Voluntary and confidential
participation
• Work release time for attendance
– Aboriginal Underground Miners
Training Program
– Community Partnership Program
(http://ekati.bhpbilliton.com)
15
Building community awareness and
capacity to benefit from mining
• “Mining Information Kit for
Aboriginal Communities”
Four modules: Mineral Exploration,
Mine Development, Mine Operation,
Mine Closure
Content:
•
•
•
•
•
•
Description of activities
Opportunities to get involved
Acts and regulations
Environmental and social impacts
Employment and business opportunities
Community experiences
(www.nrcan.gc.ca/mms/abor-auto/mine-kit_e.htm)
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Multi-stakeholder Engagement
• Multi-stakeholder consultation and dialogue provide
greater certainty for mining investment
• Grounded in transparency, access to information,
democratic process
• Encourages corporate social responsibility and
environmental stewardship
• Provides communities and Aboriginal Peoples
increased understanding of the mining cycle, and
opportunity to achieve social and economic benefits
17
Transparency
• Transparency and strong
accountability systems are
essential components of good
governance
 The Extractive Industry Transparency Initiative as a tool
to improve governance
 Canada became a member of EITI in Feb 2007
 There is a need to adopt an approach specific to
mining - distribution of benefits is a key issue
 Kimberly Process is a good model
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Corporate Social Responsibility
• Attention is turning to social and human rights issues
– Local communities have their own needs and expectations
– Industry can find itself delivering services normally provided by
governments
• Government of Canada has been called upon to regulate
industry abroad
– Lead to CSR Roundtable process in Canada
– In-depth discussion with stakeholders and experts on:
•
•
•
•
•
Standards
Incentives
Reporting and conflict resolution
Tools for implementation
Governance
• Multi-stakeholder consensus report submitted to Government
19
Conclusions
• Canada’s approach based on an internationally competitive
investment climate, sustainable development and principles of
transparency, accountability and certainty
– Generates social and economic benefits and protects the
environment – contributing to the quality of life of Canadians
• Mining is a global industry. Collaboration, sharing knowledge,
expertise and leading practices improves natural resource governance
in a global context.. ….we still have lessons to learn.
• There is a need for global dialogue and cooperation to address global
issues facing governments and industry
– Opportunity through UN CSD review of mining in 2010/11
20
www.NRCan.gc.ca
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