Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading content…
Loading…
Transcript

Overview - the basics

Our Building Blocks

  • (Policy Environment)

Going deeper

  • (Sectoral operations)

Typical issues

  • (Social and environmental)

Our activities

  • (The three pillars)

Exploration and investment in developing countries are driven by

  • high global demand
  • tight supplies from existing oil, gas and mineral sources, and
  • new technologies

Some examples:

  • Peru has become an important producer of copper and zinc
  • Mongolia for copper and coal
  • Mozambique for coal and gas

However, by its nature the industry affects the physical environment and surrounding communities. Most developing countries face challenges in managing the sector.

In cases of weak governance, enforcement and oversight, economic benefits from extractives are offset by the high social and environmental costs.

These can include:

  • potential human rights abuses,
  • social exclusion and marginalization,
  • unsafe operating practices,
  • environmental degradation and
  • related health issues.

DFATD supports three paths to development through extractives :

  • Governance - Managing the sector
  • Growing business - focusing on local development
  • Enhancing the benefits - skills for employment

This pillar focuses on:

Growing business and

local economic development through support for local economic diversification

Our Building Blocks

Our framework includes

  • Departmental policies
  • Domestic laws and policies
  • Non-governmental initiatives
  • Regional Dynamics
  • International Approaches

  • CIDA's 1992 Environment Policy
  • Strategic Environmental Assessment of the Sustainable Economic Growth Policy

  • Canadian Environmental Assessment Act (2012)
  • Canada's Corporate Social Responsibility Policy

  • E3 plus
  • Towards Sustainable mining
  • African Mining Vision
  • African Mineral Development Centre

  • Extractive Industries Transparency Initiative
  • IFC Sustainability Framework
  • Intergovernmental Forum
  • ISO Certification
  • UN Guiding Principles

CIDA's 1992

Environment Policy

Strategic Environmental Assessment

of the

Sustainable Economic Growth Policy

Canadian Environmental Assessment Act (2012)

Canada’s Framework on Extractives and Sustainable Development.

Building the Canadian Advantage:

A Corporate Social Responsibility (CSR) Strategy for the Canadian International Extractive Sector

March 2009

Includes

  • Host Country Capacity-Building
  • CSR Performance Guidelines and Reporting
  • CSR Centre of Excellence
  • Office of the Extractive Sector CSR Counsellor
  • Transparency and Disclosure
  • Financial Incentives
  • Legal Incentives
  • Continuous Improvement and Stakeholder Involvement

In accordance with Canada’s Corporate Social Responsibility Strategy, development officers should promote the application of widely recognized performance standards on social and environmental sustainability, including:

• the Extractive Industry Transparency Initiative (EITI)

• assessment and management of environmental and social risks and impacts

• resource efficiency and pollution prevention

• community health, safety and security

• biodiversity conservation and sustainable management of living natural resources

• Indigenous peoples

E3Plus (PDAC)

Toward Sustainable Mining (MAC)

African Mining Vision

African Mineral Development Centre

Extractive Industries Transparency Initiative

  • Focused on revenue transparency
  • Implemented in numerous countries in the region

Intergovernmental Forum (IGF)

Mining Policy Framework

A compendium of best practice in mining governance, covering exploration to post closure

Environment:

Water, land, air, wastes, biodiversity, mine inspection, emergency preparedness, closure and financial surety, orphaned and abandoned mines, etc.

Social:

Education, heath, safety, employment, community development, human rights, security, etc.

Artisanal and Small-Scale Mining (ASM):

Integration and formalisation, environment, health and safety

Women and child labour, education, etc.

Our challenge

Development officers should incorporate socio-environmental provisions of Canada’s policies and frameworks (e.g. Canada’s Framework on Extractives and Sustainable Development, relevant strategic environmental assessments (SEAs), and CIDA’s Policy for Environmental Sustainability, amongst others.

Prospecting and exploration: 5-10 years

  • (probability 1/10,000)

Pre-feasibility and feasibility studies: 1-2 years

  • (1/10 chance of success)

Financing: 1-2 years

  • (1/5 chance of getting financing in place)

Authorizations: several years

Construction: 1-2 years

Operation: 5-100 years (avg 15 yrs)

Site closure and rehabilitation: 1-2 years

Surface mining is used:

  • if the deposit is sufficiently large
  • if the deposit is not covered with too much waste rock
  • if it is more economical to mine above-ground than below-ground

Lower cost per tonne of ore

Flexibility to vary production rate

Increased safety

Surveillance is relatively simple

Limited and easily trained personnel

Extensive environmental damage:

  • huge open pits left after mining
  • hydrographic network of the affected area is disrupted
  • waste rock stockpiles
  • The bottom of the mine is accessed by a spiral road descending from one bench to the next
  • During mining, roads are temporary and are gradually moved
  • A permanent road is constructed when the mine’s boundary is reached and the outside wall is reached

Characteristic of many coal deposits

Large-capacity, highly mechanized operations

Three steps

  • Removal of a strip of overlying soil and rock
  • Extraction of the mineralized layer
  • Site remediation

Serious environmental impacts:

  • soil inversion
  • exposure of new surfaces (facilitates erosion)
  • changes in topography

Legislation typically requires restoration of sites for re-use (agriculture, reforestation, etc.)

Considerations:

  • Much more costly
  • Lower surface disturbance
  • Potentially significant water issues
  • Tailings management

Extractive activities leave a large environmental footprint that can result in serious consequences for the environment, as well as the health and well-being of workers and surrounding communities.

This is also true for artisanal mining where technology, processes and regulations often lag behind, resulting in environmental damage and hazardous working conditions.

Many developing countries seek assistance to

  • improve their resource governance capacity,
  • support local economic development,
  • maximize benefits for the communities, and
  • advance international standards and best practices .

Sources of conflict

  • Access to resources
  • Mineral resources are generally owned by government.
  • The territory is owned by individuals, communities or government.
  • Historical use by individuals or communities.
  • Rights or uses will inevitably be modified or violated.
  • The government, which holds the power to legislate, is not a neutral party.
  • Compensation is usually provided to individuals whose rights are restricted.
  • The government has the moral duty to protect its citizens from abuse.

Sources of conflict

CSR vs community expectations

Community expectations can be out of proportion

Poor understanding of mine development phases

Jobs - limited number, most are specialized

Water Use

Division of the community (gender issues)

• supporting the development of technical programs in the area of environment and natural resource management,

• strengthening the capacity of community leaders, to plan and manage financial resources from the extractive industry

• supporting the development of community-level environmental committees

• Enhance communities and individuals’ understanding of their environmental rights and mechanisms to protect them

• building the capacity of communities to organize themselves and to participate more effectively in public consultation processes

• supporting initiatives that increase environmental education, awareness-raising, and access to information

Social and economic impacts

Massive influx of capital

Inflation and competition

Arrival of newcomers

Significant impact during construction

High-paying jobs, but not for everyone

Lifestyle changes

Limited duration of project

Impacts on quality of life

  • Vibrations, noise, dust
  • Deforestation
  • Traffic
  • Water supply
  • Safety

Key principles:

  • Transparency
  • Respect and sensitivity
  • Participation
  • Capacity building
  • Responsibility
  • Role of government

Harmonious development

  • Mitigation measures tailored to the site
  • Vibration control (amplitude, timing, etc.)
  • Dust control (spraying, foams, favourable winds, buffer zones, etc.)
  • Noise control (noise reduction at night, noise protection walls, etc.)
  • Safety (fencing, information sessions, bypass routes)
  • Social (company policies, CSR, complaint management, follow-up committee)

CSR is relatively new to the mining industry

Recognition of the need for a social contract

In line with the 3Ps: Population, Planet, Profit

All large companies have a CSR program, which focus on:

  • sustainable development
  • environmental protection
  • respect for human rights
  • health and safety
  • commitment to communities

The environmental footprint of extractive activities typically includes, but is not limited to:

  • land-use changes over extensive areas (for the mine site, processing facilities, access roads, residences and facilities for workers, etc.)
  • deterioration of water resources due to overuse of water for processing and worker’s consumption, pollution from inappropriate treatment, and disposal of waste water and mine tailings
  • soil and air-quality changes (from ongoing operations, tailing leakages, pipeline spills, etc.)

Other examples

Topographic changes

Deforestation

Desertification

Risks of contamination

  • Surface and ground water
  • Air (dust, acid rain, etc.)
  • Radioactivity

Sources of contamination

Blasting

Equipment and storage tanks (oil, diesel)

Ore processing

Mine waste

Transportation - pipelines, railways, ports

3 categories of mine waste:

Acid (pH < 5.5) – hazardous to the environment

Neutral (5.5 < pH < 8.5) – poses little hazard

Basic (pH > 8.5) – variable hazard

Acid mine drainage is the main problem caused by mine discharges

- High remediation costs

US$100 billion globally

Complex process

Breakdown of sulphides

Renders heavy metals soluble

Control Measures

Assisting in drafting and reviewing environment and natural resources related

  • laws,
  • regulations,
  • guidelines, and
  • codes of practice

related to extractive activities,

(including artisanal and small-scale mining)

Building institutional capacity to conduct Strategic Environmental Assessments of policies, plans, programs and strategies related to the natural resource/extractive sector.

Assist governments in managing the environmental assessment processes,

  • including consultation with affected communities,

in order to better understand and integrate environmental concerns into development plans.

Encouraging the government to allocate sufficient resources (human and financial) to ensure the enforcement of legal and regulatory environmental frameworks relating to extractive activities.

Building departments’ capacity to perform their oversight and monitoring functions, including

  • the implementation of environmental management plans
  • environmental quality monitoring.

Key potential focus areas

  • Building government and institutional capacity for implementation, oversight and enforcement.
  • Assisting coordination and alignment of policies across sectors and issues.
  • Addressing related sectoral (eg. health) and thematic issues (eg. poverty reduction) through extractive-led growth strategies.
  • Strengthening information systems that produce, collect, and distribute quality and reliable data.
  • Data include resource level potential, geological mapping, mineral inventory, products and services required by extractive industries.

Tanzania: Work with the Tanzania Minerals Audit Agency to

  • increase the accuracy of the information available on the revenues, remittances, capital, and operating expenditures of companies in the extractive industry, and
  • increasing the availability and dissemination of accurate information on the minerals produced and exported.

Ghana: Build parliamentary budget oversight capacity to

  • create more transparent and accountable national budget process,
  • minimizing corruption and
  • ensuring citizens benefit from responsible natural resource development.

Bolivia: Support the Bolivian Revenue Agency to establish a hydrocarbon tax department, which has helped increase government revenue from the sector and redistribute it through social services to people in need.

  • Promoting economic diversification through value chain development.
  • Supporting micro, small and medium-sized enterprises to provide direct and indirect services to extractive sector operations and communities, and leveraging infrastructure potential in other sectors.
  • Promoting multi-stakeholder partnerships to improve local development and respect of rights.
  • Improving social, economic and environmental performance in the sector through partnership arrangements between non-governmental organizations, extractive sector companies and other stakeholders aimed at socio-economic development and support to governance.

Examples of environmental integration activities include:

  • Supporting the establishment of extractive-related environmental businesses and services such as recycling, environmental testing laboratories, waste management, technology transfer, environmental consultancy, and environmental auditing.
  • Identifying and facilitating opportunities for economic diversification in renewable resource sectors such as harvest of non-timber forest products, sustainable agriculture, and ecotourism.

  • Supporting capacity building for the private sector on applicable environmental requirements, risks and solutions.
  • Encouraging awareness of, and adherence to, international environmental protection standards and best practices by extractive-related enterprises.
  • Encouraging the sharing of successful Corporate Social Responsibility (CSR) experiences, best practices and guidelines to encourage wider adoption.

Pan-Africa supports the African Mineral Development Centre (AMDC) to improve economic diversification and investment in the extractive sector.

For instance, it seeks to leverage or integrate mining infrastructure to benefit other economic sectors.

Peru: Build capacity of agricultural producers near extractive industries to diversify their production, access markets and fuel local economic development.

Examples of environmental integration activities include:

  • Supporting the integration of environmental education into vocational training programs to promote best environmental practices
  • Supporting technical programs in the area of environment and natural resource management, such as environmental assessment, environmental auditing, testing techniques, monitoring, etc.
  • Supporting the community environmental committees that can act as independent environmental monitors.

  • Strengthening skills development and knowledge transfer for increased employment potential of local men, women and youth in the formal labour market, directly and indirectly related to the extractive sector.
  • Training and job skills provided to youth to assume occupations directly related to the mining sector or other sectors surrounding the extractive industry (eg. sales and supply, food and hotel industries, transportation, and trades).
  • Increasing community capacities to engage constructively with governments and firms.

  • Improved understanding of extractive sector-related issues related to the environment, occupational health and safety, child labour, training, consultation, etc.
  • Improving community engagement with governments and the private sector.
  • Creating spaces for participation in multi-stakeholder processes around resource sector and benefit management.

Americas: increase ability of indigenous communities to engage with local governments, private sector and other stakeholders for sustainable natural resource management in their territories

Burkina Faso: develop the capacity of youth through demand-driven skills training and development to work in the mining sector and its sub-sectors

Colombia: provide access to resources and capacity building for communities to work with governments to identify, plan, and manage development projects that address the social and environmental dimensions of the extractive sector and create sustainable economic development

Our broad challenges

  • Promoting the integration of socio-environmental considerations, such as health, into strategic development planning and budgeting.
  • Developing the government’s capacity to engage with private sector and civil society
  • Promoting coordination and collaboration between ministries concerned with extractive industries to avoid, mitigate or respond to socio-environment conflicts.
  • Increasing environmental knowledge and awareness of key actors involved in natural resource management, for example in water, soil and air quality monitoring.

  • Establishing publicly available databases and portals that enable stakeholders to track environmental data and records related to extractive activities, including monitoring reports.
  • Supporting the creation of a specialized ombudsman function to investigate and resolve complaints related to the extractive sector.
  • Supporting the establishment of an environment fund financed by revenues from the extractive sector, compensations paid for environmental damage, collected fines, donations, etc.

Our

activities

Steps in the Extractives Cycle

Liquid Natural Gas

Components include:

  • Purification
  • Compression
  • Distribution network

Consideration in Tanzania, Mozambique

Exploration

Oil and Gas - Off shore

Carried out primarily by junior companies

High risk capital

Sale of property to site operators

Relatively limited financial resources and minimal CSR programs

But...high expectations

Potential infrastructure include:

  • Floating rigs
  • On-shore handling facilities (port)
  • Service equipment

Issue in Tanzania, Mozambique

Going

Deeper

We know that

An operation typically consists of:

  • Roads/Transport
  • Buildings (offices/housing)
  • Energy/water supply systems
  • Processing plant
  • Underground infrastructure

The RSC in AFSE

Departmental Policies

Mitigation Measures

Departmental Policies

  • This remains our key guiding document on environmental integration
  • It is much broader than the CEAA
  • It integrates positive and negative effects as well as a long term perspective

Domestic Laws and Policies

Non-governmental Initiatives

Key elements of the SEG SEA include:

  • Increase corporate social responsibility and facilitate environmental awareness
  • Promote environmental management systems and green technologies
  • Integrate environment into policies and decision making
  • Conduct SEAs of investments

Regional Dynamics

Questions? Comments?

Concerns?

Oil and Gas - Onshore

International framework

Additional Readings

Human resource requirements depend on:

  • the production rate
  • mechanization
  • work organization
  • legislation

Potential infrastructure includes

  • Wells (water and oil)
  • Refineries
  • Pipelines
  • Process water treatment and storage

Issue in Kenya, South Sudan

Matheson, G. and L. Giroux (2010). Capacity Development for Environmental Management and Governance in the Energy Sector in Developing Countries. OECD Environment Working Papers, No. 25, OECD Publishing. http://www.oecd-ilibrary.org/environment/capacity-development-for-environmental-management-and-governance-in-the-energy-sector-in-developing-countries_5km4knxj9tf3-en

World Bank (2010). Environmental Governance in Oil-Producing Developing Countries. Extractive Industries for Development Series No. 17. http://siteresources.worldbank.org/EXTOGMC/Resources/336929-1266963339030/eifd17_environmental_governance.pdf

UICN (2004). Industries extractives dans les zones arides et semi-arides: Planification et gestion de l'environnement. Collection Gestion des écosystèmes No 1. http://www.iucn.org/about/union/commissions/cem/cem_resources/?uNewsID=386

Environmental Law Alliance Worldwide (2010). Guidebook for Evaluating Mining Project EIAs. http://www.elaw.org/mining-eia-guidebook

Economic Commission for Africa (2011). Minerals and Africa's Development: International Study Group on Africa's Mineral Regimes. http://ti.au.int/en/content/minerals-and-africa%E2%80%99s-development-international-study-group-report-africa%E2%80%99s-mineral-regimes

ICMM (2006). Good practice Guidance for Mining and Biodiversity. http://www.icmm.com/page/1182

UNEP (2000). Mining and Sustainable Development II: Challenges and Perspectives. Industry and Environment, vol 23, Special Issue 2000. http://www.unep.fr/shared/docs/review/vol23si/vol23si.htm

Our Policy Environment

Elements of an Extractives Site

Organization and Management

Pulling the knowledge of the region together for better programming

Domestically required if a federal authority proposes the mining project, provides financing or lands for the project or issues certain permits or approvals for the project. Internationally required if "a project" or if on inclusion list

Two types of assessment: Screening/Comprehensive

Most major mining projects require a comprehensive assessment, with a legal obligation to seek public comment

Advantages of Surface Mining

Domestic Policies

  • To find the effective operating environment in the midst of the frameworks
  • Respect the various authorites and requirements
  • Avoid duplication

Impacts on Communities

Acid Mine Drainage (AMD)

Building resource governance capacity

Plus...

Local laws and authorities:

  • NEMA
  • NEMC
  • EPA
  • etc.
  • etc.

Disadvantages of Surface Mining

Open-pit Mining

Cut and Fill

Metals or other useful substances can be separated from gravels

  • Stones are removed with a screen
  • Sand is removed with water
  • Suited to artisanal mining

- Mine water collection

- Chemical treatment

Neutralization of mine water and precipitation of metals

Flocculation of precipitates

- Passive systems

- Reduction and prevention of AMD

Canada will support establishing/ implementing

  • legal frameworks;
  • strengthening fiscal frameworks;
  • improving regulatory frameworks;
  • improving national and regional development planning, coordination, and alignment; and
  • strengthening information systems.

Serious environmental impacts:

soil inversion

exposure of new surfaces facilitating erosion

changes in relief

Legislation requires restoration of sites for re-use (agriculture, reforestation, etc.)

Not used in Quebec

Common

in the U.S. Appalachian region

in western Canada

in the U.S. Mid-West

Shrinkage stoping

Cut and fill

Sublevel stoping

Room and pillar

Caving

Room and Pillar

3 key areas

Access to the resource

Health and safety

Environment

Placer mining

Open-pit mining

Strip mining

A placer is an alluvial deposit containing metals

Placer Mining

Mining Methods -

Underground

Mining Methods -

Surface

Strip Mining

Typical

issues

Building resource governance capacity

TSM was born out of a need to improve performance and manage risk and, in so doing, to improve the mining industry’s reputation. There are many reasons why addressing social, environmental and community issues is good for mining companies.

  • Performance improvement
  • Access to capital
  • Social licence
  • Recruitment and retention
  • Innovation and learning

Good Practice Guidelines

Archaeological and Cultural Sites

Planning Needs

Land Disturbance

Site Management

Air Management

Fish and Wildlife Management

Water Use and Conservation

Hazardous Material

Objective: To conduct exploration activities

in ways that create minimal disturbance to

the environment and people.

Spill Management

Waste Management

Guidelines for Uranium

Exploration

Reclamation and Closure

Checklists

Case Histories

International Standards

  • IFC Performance Standards
  • Environment, Health, and Safety
  • On shore, off shore, mining, LNG
  • ISO
  • 9001 (Quality Management)
  • 14001 (Environmental Management Systems
  • UN Guiding Principles (HR focussed)

Non-governmental Initiatives

Environmental Impacts

Impacts on Communities

The AMV seeks to use Africa’s natural resources sector as a tool for social and economic transformation to achieve Africa’s development objectives. It works towards:

  • optimizing the benefits of resource extraction while promoting investment;
  • instituting good, transparent and accountable processes for managing extractive resources;
  • establishing equitable distribution of benefits derived from these resources; and
  • achieving sustainable and inclusive development of mineral resources, for the benefit all citizens.

African Ministers approved the establishment of the AMDC in 2011 to provide technical support for implementing the AMV. The AMDC aims to:

1) provide a common platform for engagement for countries, stakeholders and donors;

2) allow for economies of scale in the provision of training and technical assistance, and

3) provide a much-needed forum where best practices can be shared and countries can learn from each other.

`

Regional

Dynamics

  • Established in 2005
  • Open to all members of the UN (45 Countries –and links to others (e.g. EU, ICMM, WEF, World Gold Council, UNCTAD)
  • Objective to improve, enhance and promote the contribution of mining to sustainable development
  • Canada (CIDA) hosts the Secretariat –NRCan lead

International Initiatives

Supporting Communities

Overview

Growing businesses and local economic development

Environmental Impacts

Enabling communities to maximize benefits from the extractive sector to

promote inclusive and diversified growth,

including training and skills development.

Corporate Social Responsibility (CSR)

Enabling communities to maximize and share in benefits

- Investing in people

The extractive sector offers a dynamic source of growth for developing countries...

Oil, gas and mining industries are critical to economic growth in over 50 developing countries,

  • home to 3.5 billion people
  • 1.5 billion of these live on less than $2 a day.

This is due, in part, to the global resource boom fed by an increase in metal prices and resulting investments.

Local Economic Development

EI and the environment

Maximizing the benefits

In 2011, exports of oil and minerals from Africa, Asia and Central and South America were worth over (US) $1.4 trillion – about 10 times the value of international development assistance provided in the same year.

Extractive Industries

and the Environment

Building resource governance capacity to strengthen national, regional and local governments and regulatory institutions to manage the extractive sector transparently and responsibly;

Governance

When appropriately governed and managed, the extractive sector (mining, oil and gas) can be

  • an important driver of economic growth,
  • a generator of jobs and business opportunities, and
  • a source of revenue for developing countries.

Canada’s approach to the extractive sector:

Prediction of AMD

It is possible to predict whether discharges will generate AMD through:

mineralogical analyses

laboratory testing

field tests and measurements

Control

Usual control measures

Aqueous cover

Multi-layer cover

  • Site remediation is complete once:
  • no unacceptable health risks are present and personal safety is assured;
  • the production and discharge of substances that could have adverse effects on the receiving environment is limited and there is no requirement for any form of maintenance or long-term monitoring;
  • the site is restored to a condition that is visually acceptable to the community.

Site Remediation

Learn more about creating dynamic, engaging presentations with Prezi