rick meyers 13.8.2014: applying sustainability to mining in canada

13/08/2014 Towards a Responsible Mining Industry,

Rovaniemi, Finland 1

Applying Sustainability to Mining in Canada

Towards a More Responsible Mining Industry

Rovaniemi, Finland, August 13, 2014

Rick Meyers Vice President, Technical & Northern Affairs

The Mining Association of Canada

AGENDA

About MAC Mining’s Contribution to Canada’s economy Towards Sustainable Mining MAC and Tailings Management Mining in Canada’s North

About MAC The national voice of the

mining industry in Canada:

Advocacy - to advance the

business of mining

Towards Sustainable Mining:

About performance, stewardship

and social license

39 Corporate members in iron

ore, gold, diamonds, oil sands,

met-coal, base metals, uranium

50 Associate members in

engineering, environment,

finance

Advocacy work supported by

member committees:

environment, science,

economics, public affairs,

Aboriginal relations

6

Canada’s Mining Industry Contributions

Domestic Contribution

• 220 mines, 33 smelters and refineries,

~400,000 employees,

• $20B in annual capital investments

• $9B taxes and royalties

• Largest employer of Aboriginal Canadians

• Primary economic driver in Canada’s North

Global Competitor

• Attracted 18% of world exploration spending

in 2011

• TSX/TSX-V: 1,600 mining companies listed,

47% projects outside Canada

• Minerals account for 23% of Canada’s total

goods exports

• Top five world producer in uranium, potash,

nickel, platinum, zinc, aluminum,

diamonds, met coal

13/08/2014 Towards a Responsible Mining Industry, Rovaniemi, Finland

3

Towards Sustainable Mining: Our Commitment

Established in 2004, TSM is MAC’s

commitment to responsible mining that

every member agrees to implement.

TSM’s primary objective is to enable

mining companies to meet society’s

minerals products needs in the most

socially, environmentally and economically

responsible way.

The program’s core strengths are:

• Accountability – Mandatory for all

members to report at the facility level

• Transparency – Annual reporting against

23 indicators with independent verification

• Credibility – Through ongoing consultation

with our Community of Interest Advisory

panel to improve industry performance and

help shape TSM for continual advancement

4

TSM Program Architecture

TSM Guiding Principles

Policy Frameworks

TSM Performance Protocols

Communities and People Environmental Stewardship Energy Efficiency

Aboriginal and Community Outreach

Crisis Management Planning

Safety and Health

Tailings Management

Biodiversity Conservation Management

Energy Use and GHG Emissions Management

Good Practice Guidance Assessment Protocols Performance Measurement

and Reporting System External Verification

Energy Efficiency

Guidance and Expectations

Performance Indicators

Reporting and Verification

Aboriginal and Community

Outreach

Community of interest (COI) identification

Effective COI engagement and

dialogue

COI response mechanism

Reporting

Crisis Management Planning

Crisis management preparedness

Review

Training

Safety and Health

Policy, commitment and accountability

Planning, implementation and

operation

Training, behavior and culture

Monitoring and reporting

Performance

Tailings Management

Tailings management policy and commitment

Tailings management system

Assigned accountability and responsibility for tailings management

Annual tailings management review

Operation, maintenance and surveillance (OMS)

manual

Biodiversity Conservation Management

Corporate biodiversity conservation commitment,

accountability and communications

Facility-level biodiversity conservation planning and implementation

Biodiversity conservation reporting

Energy Use and GHG Emissions

Management

Energy use and GHG emissions management

systems

Energy use and GHG emissions reporting

systems

Energy and GHG emissions performance

targets

Communities and People Environmental Stewardship Energy

Efficiency

TSM Protocols and Indicators

•Excellence and Leadership AAA

•Integration into management decisions and business functions AA

•Systems/processes are developed and implemented A •Procedures exist but are not fully consistent or documented; systems/processes planned and being developed B

•No systems in place; activities tend to be reactive; procedures may exist but they are not integrated into policies and management systems C

TSM Performance Rating System

7

TSM Verification System

Self-assessment

• annual

External verification

• every three years

CEO letter of assurance

• posted on MAC website in year of external verification

COI Panel Review

• 2-3 companies each year

8

Governance

Tailings Working Group Energy Task Force

Community of Interest Advisory

Panel

MAC Board of Directors

TSM Governance Team

TSM Initiative Leaders

Public Affairs Committee

Biodiversity Task Force

Other MAC Committees/ Taskforces/Working Groups

Towards Sustainable Mining (TSM)

4/23/2013 Barents - Best Environmental Practices

Conference, Rovaniemi, Finland 9

COI Advisory Panel Composition

Aboriginal peoples

Environmental NGO

Economic/community development

Social NGO including faith based groups

Finance/investment

International development

Labour/workplace

Media/communications

MAC Board of Directors

Junior Mining Company Representative

TSM and Corporate Responsibility (CR) as the

primary Business Driver

In our experience CR is a key component of

business strategy…

It is a straightforward equation

• CR builds trust

• Trust builds reputation

• Reputation drives value

How does CR drive value?

• Performance improvement

• Risk management

• Access to capital

• Attract competent workforce

• Innovation and technology

• Social license

10

Corporate Responsibility and Tailings Management Increasing tonnages

Decreasing ore grades

Advancements in recovery

technologies

= More tailings per tonne of ore

Historically:

No clear management practices • Little or no regulation or

environmental assessment

Increased public awareness and

world wide environmental focus • Increased pressure on regulators

• Increased scrutiny & regulation

Led to improved tailings

management practices

Key Drivers for TSM

Responding to World Wide Tailings Failures

Merriespruit, 1994 South Africa

Omai, 1995 Guyana

Los Frailes, 1998 Spain

Marcopper, 1996 Philippines

Kolontar, 2010 Hungary



Mount Polley 2014 British Columbia, Canada

Talvivaara 2012 Finland

Obed Coal 2013 Canada

MAC Board: Recognizing Tailings as a

Business Risk

0

2

4

6

8

10

12

14

16

18

1997 1999 2001

April 98 Dam failure Sept 2000 spill

Cost of lost credibility

Access to capital

Permitting and approvals hurdles

Low employee morale

Decreasing public opinion

• Tailings are a business risk that need to be managed Recognizing the potential for environmental,

social and economic damage

MAC Tailings Working Group formed in 1996

• Impacts of tailings failures may reach far beyond the cost of rehabilitating the mess

Loss of corporate credibility

Loss of access to capital Loss of investor confidence may be many times

more than direct costs



For MAC, Tailings management is an integral part of industry’s commitment to sustainability and continual improvement

MAC Tailings Management Guides Workshops provide a comprehensive overview of the MAC Guides Why a Tailings Management Framework is important Helping operations meet their commitments to TSM and applying

“Best Practices” for Tailings Management

Framework Applied throughout

the Operation’s Life Cycle

Planning

Implementation

Management Review

Policy and Commitment

Policy and Commitment √ √

Planning √ √

Roles and Responsibilities √ √ √ √

Objectives √ √ √

Managing Risk √ √ √

Implementing the Plan √ √

Operational Control √ √ √ √

Checking and Corrective Action √ √ √

Management Review √ √ √

Construct a facility √ √

Operate a tailings facility √ √ √

Decommission and close a facility √ √ √ √

Decommissioning

& Closing


Planning √ √











Operation


Planning √ √











Construction

Site Selection

& Design Policy and Commitment √ √

Planning √ √


Objectives √ √ √ √






Checking & Corrective

Action



Performance is Improving



Level A

Level AA

Level AAA

Tailings ManagementPolicy and

Commitment

Tailings ManagementSystem

Assigned Accountabilityand Responsibility forTailings Management

Annual TailingsManagement Review

OMS Manual

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Tailings Management Assessments Percent of Facilities at Level A or Higher

2006, 2012 & 2013

2006

2012 2013

2006

2012

2013

2006

2012

2013

2006

2012 2013

2006

2012 2013

Minto (copper)

Bellekeno (silver)

Ekati (diamonds) Meadowbank

(gold)

CanTung (tungsten) Diavik

(diamonds)

Snap Lake (diamonds)

Wolverine (zinc)

Canada’s Northern Mining Operations



Mining Contribution to GDP (1998 – 2008)

Canada (National) 3.5% - 4%

Provinces (South) 3% - 4%

Northern Territories 21% - 68%

Finland

Population Area (km2)

Finland 5,421,827 338,145

Canada’s North 107,265 3,535,263

Northern Challenges

High Cost of Development and Operating

• Remote, limited access

• No Infrastructure – (BYO)

– Communications systems

– Transportation – roads and ports

– Power development – energy supply

Environmental Management

– Mitigating or minimizing impacts on land and water

– Avoiding impacts on wildlife habitat and migration patterns

Workforce Development

– Need for basic skills training

– Transition to full-time work environment

– Competition to retain workers

Business development

– Need for Investment capital

– Experienced partners

– Innovative solutions

Mining’s Contribution to Canada’s North Since 1998

Employment - 35,000+ person-years

Production >$20 B+ in diamonds, copper,

gold, silver

Investment/Spending

~$15 B+ in capital and operating

expenditures

Business Development;

$9 B+ Northern, $4 B+ Aboriginal Business

More than 50 new Businesses

Contributions to Northern Infrastructure:

Roads, rail, hydro development, shipping,

and ice roads

Support for health care, education and

sports facilities

• Workforce & Social development

• Extensive programming in Aboriginal skills

training and education

• $100 million social contributions



A Game Changer for Resource Development

Land Claims and Impact Benefit Agreements Land Claims

• Under Land Claims Settlements Aboriginal people own some surface and subsurface resources;

• Possess broad influence to determine the terms and conditions governing resource development;

– Land use planning

– Participation in regulatory processes

• Opportunity for co-management of mineral development

Impact Benefit Agreements (IBAs)

• Privately negotiated agreements between Aboriginal Group and developer;

• Essential characteristics: commitment, clarity, reasonableness, participation

capacity, effective implementation

• Content typically includes commitments for: Employment, skills training,

business development, community development, monetary payments

Climate Adaptation and

Energy Alternatives



Thermosyphons

application to

preserve

permafrost

Heat exchangers

Wind energy

Replacing diesel

with LNG

Expanding hydro

development

Northern Canada’s Mining Potential

Mary River (iron)

Hope Bay

(gold)

High Lake

(base metals)

Meliadine

(gold)

Roche Bay (iron)

Hackett River

(base metals)

Kiggavik

(uranium)

Ulu

(gold)

Selwyn

(base metals)

Prairie Creek

(base metals, silver)

Gahcho Kue

(diamonds)

Nechalacho

(rare earths)

Tyhee

(gold) Nico

(gold, cobalt, bismuth) Tamerlane

(base metals)

Courageous

(gold)

Back River

(gold)

Izok

(base metals)

Lupin

(gold) Jericho

(diamonds)

Committee Bay (gold)

Chidliak (diamonds)

Carmacks

(base metals)

Eagle

(gold)

Casino

(base metals)

Mactung

(tungsten)



22

FOR MORE INFORMATION

PLEASE CONTACT:

Rick Meyers

Vice President, Technical and

Northern Affairs

[email protected]

613-233-9392

Follow us on Twitter:

@theminingstory

kiitos

thank You



mailto:[email protected]

Aboriginal Business Partnerships

• Ekati Services

• I&D Management Services Ltd.

• Tli Cho Logistics

• Tli Cho Landtran

• Tli Cho Cement

• Tli Cho Air

• Denesoline Western Explosives

• Metcon

• Tli Cho Explosives

• Kete Whii Ltd.

• Kete Whii Procon

• Sodexho Alliance

• Exploration Medical Services

• Kitikmeot Cementation

• Lac De Gras Constructors

• Nishi Khon SNC Lavalin Inc.

• North Slave Logistics

• Nuna Logistics

• SecureCheck

• Lac De Gras Constructors

• Nishi Khon / SNC Lavalin Inc.

• A.T.B. Construction

• Bouwa Whee Catering

Det'on Cho DNX Det'on Cho Earth Energy Det'on Cho Foraco Det'on Cho Hazco Det'on Cho Nahanni Construction Det'on Cho New North Det'on Cho NUNA Det'on Cho Pure Earth Elements

Environmental Solutions Det'on Cho Scarlet Security Det'on Cho Stantec Det'on Cho Training and Conference

Centre Det’on Cho Logistics Det’on Cho Medic North Det’on Cho Mining Supplies DICAN / ADG Kete Whii / Ledcor Kete Whii / Procon Trinity Helicopters

55 Aboriginal business partnerships providing goods and services to NWT diamond mines

Akaitcho Helicopters Dene-Emco Ltd. Denesoline/Aboriginal Engineering

Ltd. Denesoline/Air Tindi Joint Venture Denesoline/Arcan Constructio Denesoline/De Beers Labour Contract Denesoline/Discovery Mining

Services – Logistics Expediting Denesoline/Deton Cho/Procon Denesoline/Deton Cho/Ledcor Denesoline/Dyno Nobel Denesoline/ESS Compass Denesoline/McCaw Drilling and

Blasting Denesoline/Nuna Logistics Denesoline/Tlicho Logistics Lutsel K’e Air Services

1998-2009: Aboriginal Businesses Revenues grew from less than $30 million to $600 million annually



Tailings Management Framework Main Components

Policy and Commitment

Confirm accountability, responsibility and commitments to COI

Management Commitment – a primary component

Management Review for

Continual Improvement

Annual Review and reporting

Planning

Preparing the main components of facility

Implementation

Putting plans into actions Implementing operational

procedures

Checking and Corrective Action

Proactive response to deficiencies



rick meyers 13.8.2014: applying sustainability to mining in canada

Environment

tailings management

sustainable mining tsm

mining companies

business of mining

sustainable mining mac

management decisions

industry performance

tsm program architecture