emerging trends: responsible copper · including government agencies and civil society. •...

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EMERGING TRENDS:

RESPONSIBLE COPPER

Jorge Cantallopts

Director of Research and Policy PlanningChilean Copper Commission - COCHILCO

COPPER to the WORLDSouth Australia, Jun. 26, 2018

CONTENTS

01 0302 04

Framework Final

Comments

What are

we doing

from

Chile?

Mining

Industry

Framework

+ New paradigm

+ Dynamic concepts

01

FROM

LOCAL TO

GLOBAL

MINING CHALLENGES PRESENT A

NEW PARADIGM

Source: Sustainable Minerals Institute, The Univeristy of Queensland, Australia.

IncomeMaximization

Efficiency

Effectiveness

Sustainability

Use efficient methodsto change practicesassociated with "justmaximizingrevenues" frommining activities.

Develop, test and implement technologyto meet its efficiencyobjectives

Integrate disciplinary and operational capacity.Transition from efficiency to effectiveness and demonstrate that the limitations of industry and community development can be complemented.

Define sustainabilityand make itimplementable and measurable in anindustrial context

Maturity Level

Ben

efits

DEVELOPMENT MODELS

.

DEFINING THE STANDARDS

Dynamic conceptsIndices must be UNIVERSAL in character

Malthus 1798

J.S Mill

1848

Club of

Rome 1969

StockholmEarth

Summit 1972

Rio declarationprinciples

1992

SDGs

2015

Anticipation of obligations

and crisis prevention

Costsreduction

InnovationMarket opportunities/ Differentiation

Social licenseto operate

Economic performance and

access to financing

THE VIRTUOUS CIRCLE OF

SUSTAINABILITY

Overcome antagonismsbetween economic growth, social equity and environmentalconservation, reinforcingeach other and withsatisfactory results for allthose involved.

“Indicators become facilitators of the decision-making process. They can help measure and gauge progress towards sustainable development goals. At the same time, they can become real warning signs that prevent economic, social and environmental damage“(UN, 2001)

THE NEED FOR NUMBERS

Indicators can be interpreted as signs that can strengthen our assessment of the progress of our countries and regions towards sustainable development.

¿WHY MEASURE?

Correct measurements and impact evaluations, constitute an excellent input to improve policies and the overall sustainability strategy.

Mitigation

It allows to mitigate

risks and attend, in

a timely manner, the

concerns of the

groups of interest,

looking for the

economic,

environmental and

social balance and

generating value for

both parties

Strategy

Adequate

assessments allow

determining the

relevance of

sustainability

strategies and their

alignment with the

impacts of the value

chain.

Commitment to

responsible mineral

development is a

strategic priority

Information

Good decisions require

good information based

on correct and reliable

measurements.

Transparency Benchmark

Measurements allow

us to compare

ourselves with the

rest, not only the

same industry, also

with the other

productive sectors

.

Nowadays, companies

not only need to have

policies and good

intentions, they must

demonstrate the results

and impacts.

If you can not measure it, you can not manage it !

Mining Industry

+ Diversity of players

+ Lack of coordination

+ Reactive Industry 02

Diversity of players, miners and non-miners, deliveringprinciples, recommendations, standards and certifications.

COPPER INDUSTRY

We indentified about 50 documents with principles,

recommendations, standars and norms.

LACK OF COORDINATION

Different criteria, interpretation and application have as a consequencemore confusion.

It is necessary to define a COMMON METRIC of what and

how to measure.

DIFFERENT PLAYERS- DIFFERENT OBJECTIVES

Industry

InstitutionsNGOs

Look to differentiate

themselves and lead

the process.

Tailor-made

indicators

No binding principles. Recommendations that need

to be certified to be valid.

SCOPE LEVEL

Pri

nci

ple

s

Re

com

me

nd

atio

ns

Stan

dar

ds

Ce

rtif

icat

ion

SCOPE LEVEL

Pri

nci

ple

s

Re

com

me

nd

atio

ns

Stan

dar

ds

Ce

rtif

icat

ion• Not mandatory

• General • No follow-up • No impact on the

market

SCOPE LEVEL

Pri

nci

ple

s

Re

com

me

nd

atio

ns

Stan

dar

ds

Ce

rtif

icat

ion

• Usually mandatory• More specific• Traceable• Increasing impact on the

market• Associated industry

RISK OF COORDINATION

Alu

min

um

Stee

l

Co

pp

er

MINING INDUSTRY REACTING

The world changes and the mining industry is adapting

¿?

The aim of the Responsible Copper Initiative is to achieve a commitment to ecological and social responsibility in the copper industry. Further objectives of the cooperation are the development of core indicators, which measure advancements in sustainability activities, as well as a productive collaboration with stakeholders – including NGOs and regulating authorities.

ACHEIVING A SUSTAINABLE MINING INDUSTRY

CODELCO INITIATIVE

Chile is already working to unify criteria.

PROPOSED DIMENSIONS BY THE INDUSTRY

ASI SS CodelcoGovernance

Business integrity OCorporate policies OTransparency O OMaterials management O

EnvironmentGHG emissions O O OEmissions and waste O OWater management O OBiodiversity OPower consumption OMaterial efficiency OEnvironmental management systems O

Social Human rights O OLabor rights OOccupational health and safety O O OTraining

Inclusion and equity O

Economic performanceInvestment in new product development OValue distribution OLocal community impact O

What are we doing from Chile?

+ Perception versus reality

+ Comparative results

03

?

HOW IS CHILEAN MINING IN DEFINED STANDARDS?

Low Certification Absence of Benchmarking

• High transparency• Outstanding water management• Ocuppational safety• Low participation of women• Adequate environmental

regulations• Low performance in emissions• Low rate of investment in R & D • Growing importance of

governance

vs

REALITYPERCEPTION

COMPARATIVE RESULTS IN THE CHILEAN INDUSTRY

1. COCHILCO-APEC Study 2016CRU Group

2. Governance index of natural resources 2017 RGI

Natural Resource Governance Institute

APEC trade accounts for two thirds of the world trade

o APEC trade – for the selected metals - in 2016 was USD 498.5 bill

Source: UNCTAD

RoW34%

APEC66%

APEC

1. COCHILCO-APEC Study 2016

9%

21%

22%

25%

28%

15%

52%

33%

30%

20%

14%

21%

42%

43%

21%

19%

31%

53%

22%

48%

0% 20% 40% 60% 80% 100%

PNG

Indonesia

China

Canada

Russia

Viet Nam

Philippines

USA

Australia

Mexico

Peru

Chile

Survey Estimates

Indices:1. Metal produced2. Processed Mineral3. Electricity

consumption4. Gas consumption5. Worked hours6. Gender distribution7. Value off assets

Response rate of the APEC mining economies

Source: Cochilco-APEC proyect 2016

0

5

10

15

20

25

30

35

40

Tho

usa

nd

s to

ns/

Mill

ion

s To

ns

2011 2012 2013 2014 2015

Copper production / processed mineral




0

5

10

15

20

25

30

GW

h/

Tho

usa

nd

s T

on

2011 2012 2013 2014 2015

Electricity consumption / copper production



0%

5%

10%

15%

20%

25%

% o

f w

om

en

2011 2012 2013 2014 2015

Women in mining (%)


2. Governance index of natural resources2017 RGI

0

10

20

30

40

50

60

70

80

90

No

rueg

a

Ch

ile

Can

adá

(Alb

ert

a)

Bu

rkin

a Fa

so

Mo

zam

biq

ue

Au

stra

lia (

occ

iden

tal)

Méx

ico

(p

etró

leo

y g

as)

Ind

on

esia

(p

etró

leo

y g

as)

Mo

ngo

lia

Bra

sil

Gh

ana

(Min

erí

a)

Bo

livia

Co

sta

de

Mar

fil

Cam

erú

n

Co

lom

bia

(M

ine

ría)

Arg

enti

na

Rep

úb

lica

de

Kir

guis

tán

Mar

ruec

os

Níg

er

Kaz

ajst

án

RD

C (

Min

erí

a)

Ch

ina

Pap

úa

Nu

eva

Gu

inea

An

gola

Sud

áfri

ca

Mal

asia

Ven

ezu

ela

Ru

sia

Egip

to

Ku

wai

t

RD

C (

pet

róle

o y

gas

)

Uga

nd

a

RD

P L

ao

Tún

ez

(Min

ería

)

Uzb

eki

stán

Ban

glad

esh

Zim

bab

ue

Mad

agas

car

Qat

ar

Om

án

Gu

ine

a Ec

uat

ori

al

Bah

rein

Sud

án

Gab

ón

Turk

men

istá

n

Value realization

Source: RGI 2017


Source: RGI 2017

0

10

20

30

40

50

60

70

80

90

Revenue management


Source: RGI 2017

Enabling Environment

0

20

40

60

80

100

120

No

rueg

a

Can

adá

(Alb

erta

)

Au

stra

lia (

occ

iden

tal)

Rei

no

Un

ido

EE.U

U. (

Go

lfo

de

Mé

xico

)

Ch

ile

Bo

tsw

ana

Sud

áfri

ca

Emir

ato

s Á

rab

es U

nid

os

Mal

asia

Qat

ar

Om

án

Mo

ngo

lia

Bra

sil

Trin

idad

y T

abag

o

Gh

ana

(Min

ería

)

Gh

ana

(pet

róle

o y

gas

)

Ind

ia

Filip

inas

Co

lom

bia

(M

iner

ía)

Co

lom

bia

(p

etró

leo

y g

as)

Ku

wai

t

Tún

ez (

Min

ería

)

Tún

ez (

pet

róle

o y

gas

)

Méx

ico

(M

iner

ía)

Méx

ico

(pe

tró

leo

y g

as)

Ind

on

esia

(M

iner

ía)

Ind

on

esia

(p

etró

leo

y g

as)

Mar

ruec

os

Bah

rein

Per

ú

Kaz

ajst

án

Ara

bia

Sau

dit

a

Ch

ina

Vie

t N

am

Zam

bia

Arg

enti

na

Bu

rkin

a Fa

so

Cu

ba

Tan

zani

a (M

iner

ía)

Tan

zani

a (p

etró

leo

y g

as)

Ecu

ado

r

Bo

livia

Aze

rbai

yán

Ru

sia

Uga

nd

a

Níg

er

Gu

atem

ala

Co

sta

de

Mar

fil

Ucr

ania

Gab

ón

Rep

úb

lica

de

Kir

guis

tán

Mo

zam

biq

ue

Mal

i

Tim

or-

Lest

e

Lib

eria

RD

P L

ao

Egip

to

Pap

úa

Nu

eva

Gu

inea

Cam

bo

ya

Sier

ra L

eon

a

Mad

agas

car

Etio

pía

Gu

inea

Mau

rita

nia

Arg

elia

Ban

glad

esh

Irán

Cam

erú

n

Nig

eria

Co

ngo

An

gola

Uzb

ekis

tán

Turk

men

istá

n

Zim

bab

ue

Mya

nm

ar (

Min

ería

)

Mya

nm

ar (

pet

róle

o y

gas

)

Ch

ad

Gu

inea

Ecu

ato

rial

Ven

ezu

ela

Iraq

Afg

anis

tán

RD

C (

Min

ería

)

RD

C (

pet

róle

o y

gas

)

Yem

en

Sud

án

Erit

rea

Lib

ia

Sud

án d

el S

ur


Final comments

04

• It is urgent to define what and how to measure, need

collaboration, with emphasis on common interest.

• Gathering of quality information.

• Responsible, traceable and sustainable (RTS) mining is not an

option, it is a must.

FINAL COMMENTS

Beyond the mine

• Generate information on the most critical subjects.

• Develop a joint strategy since the risk of acting uncoordinated

is very high.

• Implementation of indicators in a participatory manner,

including government agencies and civil society.

• Responsible, traceable and sustainable (RTS) mining is an

opportunity for the country to create sustainable value.

• Countries with a more active role are needed.

FINALS COMMENTS

Country level

• APEC mining members can become a hub for this initiatives.

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Ministerio,

Subsecretaría,

Organismo,

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THANKS!

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emerging trends: responsible copper · including government agencies and civil society. •...

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