Community and Social Issues in Mining ENGR 2106 Fall 2023 PDF

Mining Optimization Laboratory Introduction to Mineral Resources ENGR 2106 - Fall 2023 Lec18 - Community and Social Issues Dr. Ahlam Maremi Bharti School of Engineering Laurentian University F215B Email: [email protected] 1 Community Conflict Surrounding a Major Mining Operation • The Bougai...

Mining Optimization Laboratory Introduction to Mineral Resources ENGR 2106 - Fall 2023 Lec18 - Community and Social Issues Dr. Ahlam Maremi Bharti School of Engineering Laurentian University F215B Email: [email protected] 1 Community Conflict Surrounding a Major Mining Operation • The Bougainville conflict: – In 1989 Bougainville Copper Ltd evacuated its workforce from Panguna Mine in Papua New Guinea; – Operation shutdown at short notice, most equipment left in place; – Prior to shutdown, Bougainville Copper capitalized at US$1.5 billion and was one of the world’s largest open pit mines; – In the following years, civil unrest developed to full-scale conflict between Bougainville Revolutionary Army and the Papua New Guinea Defense Force (several thousands dead and 1/3 of the population displaced from their homes); – Peace process started in 1998. 2 Ahlam Maremi 2 Mining Optimization Laboratory South African Platinum Strike in 2014 3 • South Africa’s top three platinum producers: – Impala Platinum, – Anglo American Platinum, and – Lonmin Platinum. • All mines faced the longest and most expensive strike in the country’s history in 2014 (5-month strike). – Demanding that wages to be immediately doubled. • The mining strike has stirred violence, including two Lonmin workers killed. 3 Mines and Communities • Linked via a complex network of relationships and issues: – Local community members usually part of the workforce, – Others in the area supply goods and services, – Individuals, families and sometimes whole communities can be displaced by the development of a mining lease, – Some may be affected by environmental impacts. • Community livelihoods can be impacted by: – Land-use changes. – Changes within local social structures. • Safety standards have improved significantly in most areas: – History of workplace accidents and health issues. – Important factor in the relationship between mining companies, workforce and communities. 4 Ahlam Maremi 4 Mining Optimization Laboratory Development of NGOs 5 • Compared to companies, communities have more limited access to information, knowledge, technology, and capital; – Primary driver for the increasing involvement of rights-based nongovernmental organizations (NGOs) • NGOs launch international campaigns against companies or particular projects; • Workers of the mining industry are increasingly required to respond to community issues. 5 What is a Community? • In the mineral industry, the concept of community describes those who live in the geographic region of an operation: – Includes the incidence of fly-in / fly-out arrangements (workers and their families live in a distant location). – Mining projects often include transport infrastructure and supply chains that span large distances, connecting networks of mines, processing centres and ports, increasing the range of potential community impacts. • Local or host community: – Usually applied to those living in the immediate vicinity of an operation, being indigenous or nonindigenous people, who may have cultural affinity, claim or direct ownership of an area in which a company has an interest. 6 Ahlam Maremi 6 Mining Optimization Laboratory Affected Community 7 • Affected community: – Refers to the members of the community affected by a company’s activities. The effects are most commonly: – Social: • Resettlement, changed services such as education and health – Economic: • Compensation, job prospects, creation of local wealth – Environmental, – Political. 7 Stakeholders • The term stakeholder is related but distinct from community: – The term stakeholder referring to any individual, groups, or organization who can affect or are affected by a corporation’s activities; • Stakeholders might include local community members, NGOs, governments, shareholders and employees. • Stakeholders encourage the corporate sector to see community concerns and aspirations as key consideration. – Successful companies recognize that they have responsibilities to stakeholders: • The corporate responsibility extends beyond maximizing a financial return to shareholders. 8 Ahlam Maremi 8 Mining Optimization Laboratory 9 Mining and Sustainable Development • During the 1990s, the mining and mineral industry came under increasing challenge losing its social license to operate, – Popular way of describing the influence that society has over the ability of a mining company to carry out mining activities, above and beyond the legal license issued by governments; – Ongoing process of approval from the community; • Several initiatives in different countries: – The Whitehorse Mining Initiative in Canada, a multi-stakeholder initiative developed in 1994 involving industry, government and NGOs aiming to develop general principles for responsible mining; – Australian Minerals Industry Code for Environmental management, modified in the late 1990s to include additional requirements focusing on social and community issues. • These initiatives were often linked to sustainable development. 9 Mining, Minerals and Sustainable Development Research Project • A research project to investigate the activities of the industry through the lens of sustainable development; • Managed by an independent research group, the international Institute for Environment and Development (IIED); • Major conference held in Toronto in 2002 to review the outcomes of the project; • Creation of a new global industry body, the International Council on Mining and Metals (ICMM), charged with implementation of the industry response to the outcomes of the project; • Specific issues addressed: – Indigenous people’s rights, – Social impact analysis, – Socioeconomic development. 10 Ahlam Maremi 10 Mining Optimization Laboratory Soft Regulation 11 • Soft Regulation: – Non-government recommendations or guidelines, policies, rules, … • Significant growth of soft regulation in the past 20 years, for example: – ICMM sustainable Development Framework: Provide guidance on applying sustainable development principles to mineral operations – Kimberley Process Certification Scheme: Multistakeholder initiative that aims to provide product certification for diamond and reduce the trade in blood diamonds. 11 Soft Regulation 12 – Extractive industries transparency Initiative: Set of environmental and social benchmarks developed by a group of major international banks for addressing environmental and social issues in development project finance. – IFC Environmental and Social Standards: Standards framework developed by International Finance Corporation (IFC) to apply to projects in which they invest World Bank funds. 12 Ahlam Maremi Mining Optimization Laboratory Corruption Perceptions Index 2014 13 13 Corruption Perceptions Index 2021 14 Ahlam Maremi 14 Mining Optimization Laboratory Importance of Context 15 • Mining is global activity, involving communities located in: – – – – Arid mountains (Andes), Remote areas (Arctic Circle), In agricultural regions in developed countries, In tropical rainforest (developing economy in Asia). • The history of mining in a country and region can influence community attitudes to mining projects: – E.g. Kalgoorlie in Australia, Sudbury in Canada, and Cerro de Pasco in Peru. 15 Importance of Context 16 • Although the physical footprint of mining operations is usually relatively low, its interaction with other land uses in terms of impacts on other resources such as water, labor and infrastructure can be significant; • Government capacity to regulate the minerals industry and manage the benefits of mining for the local communities has been identified as a crucial aspect. – Recent World Bank projects in several developing countries; – Technical assistance to the government to strengthen their ability to manage burgeoning mining sector. 16 Ahlam Maremi Mining Optimization Laboratory Importance of Context 17 • Legal and customary rights concerning land management, especially in cases where mining occurs on lands claimed by indigenous people; • Other factors include the nature and scale of the mining operation itself; – Large-scale open-pit and strip mines can be more disruptive to other land uses such as agriculture; – Underground mines generally produce less waste, but subsidence effects can result in impacts on surface environments and water resources. 17 Mine Subsidence 18 Ahlam Maremi 18 Mining Optimization Laboratory Importance of Context 19 • The nature, size and reputation of the company involved can also be influential: – Larger global multinational companies tend to be engaged in sustainable development and conventions that deal with community issues. – Many of the smaller mining and exploration companies are less active; – Not all operations within a large company perform to the same standard. • In several parts of the world, there has been community opposition to the involvement of foreign companies in mining and exporting valuable minerals when much of the profit is perceived to go offshore. 19 Water and Mining • Access to fresh water represents an essential human need, • Water is also fundamental to other ecosystem services required to sustain human life and high on the political agendas of all levels of government. • Individual mines are often large consumers in their local context, and their impacts can be significant; • Mining companies compete for water use and can often afford to pay more, reducing the viability of other industries; • Water use in many processing activities results in contaminated water in tailings and flooded pits – Pose risks for downstream users. 20 Ahlam Maremi 20 Mining Optimization Laboratory 21 Economic Development • Mining investments provides opportunities for economic growth, poverty reduction, and engagement in the global economy; – Example such as Chile and Botswana. • Need for effective and transparent governance regimes for the management of mineral wealth. • Transfer of some of the benefits from taxes and royalty streams back to the regions where mines are located has been an issue in several countries: – Problems have developed because of changes to legislation in Peru. 21 22 Grade Distribution • Quizzes (2) • Midterm Exam • Assignments – Field Trip Report 1 – Field Trip Report 2 • Final Exam 22 Ahlam Maremi 10% 35% 15% 7.5% 7.5% 40% Mining Optimization Laboratory Don’t Forget! • Final Exam: Dec. 7th @ 14:00 – B-GYM (Lec10 – Lec18) This is our last lecture, wish you the best in your studies and exams 23 Ahlam Maremi 23