Toward New Public-Private Sector Partnerships for Sustainable Development in Resource Extraction Industries A Private Sector PerspectiveInternational Conference, McGill University, Montreal

March 29-30, 2012

Rio TintoEtienne Lamy

Principal Advisor

Communities & Social Performance

Multi-stakeholder Partnerships …. A global trend

International Council on Mining & Metal (ICMM)

“After five years of research, the Resource Endowment initiative has found

that multi-stakeholder partnerships can be a powerful way to overcome

development challenges and maximize mining's positive impacts, avoiding

the “resource curse”.

Position Statement (January, 2010)

Ref: www.icmm.org

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Question 2 :

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Are there effective practices or models that can be

identified for achieving this goal?

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Internal support systemsCommunities & Social Performance Control Architecture

The way we work

Communities policy

Multi year Communities & Social Performance planning

Standards• Mandatory requirements• Management• Monitoring and reporting

Assurance• Communities SMA• Social risk analysis (SRA)• Rio Tinto site visits• Independent audit

Reporting• Annual workbook• SD report• SEART

Guidance notes• Communities multi year planning• Socioeconomic knowledge base• Trusts, funds and foundations• Cultural heritage• Consultation & engagement• Resettlement• Communities target

• Compensation, benefits & resource access• Community contributions & activities• Social risk analysis• Social impact assessment• Site managed assessment• Community agreements• Complaints, disputes & grievances

Communities & Social Performance competencies

•Communities

•Engagement

•Practices

• Participation Agreements

• Regional Economic Development

• Co-environmental Monitoring

• Grievance Mechanism

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Q2 - Effective practicesKey elements good communities engagement

Participation Agreements (IBAs) RT Mineral/Argyle, Australia

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Regional economic development – Rio Tinto Alcan Canada, Saguenay – Aluminium cluster

• Full time dedicated team of experts in regional economic development

– SME evaluation– Support projects and their

promoters – Link to RTA network

• Knowledge transfer in specific areas :

– Environment, Health and Safety

– BI / Lean / 6 sigma– Innovation leveraging the

R&D center (CRDA)• Risk capital/Innovation

financing in targeted sectors + adhoc management support to address project gaps

• Support to sub-contractors

• Creation of 816 jobs

Design and manufacturing of wagons and motorcar (Ex. St-Félicien Wilderness Zoo sightseeing cars)

Amphibian vehicle for the mining industry. Shell and numerous components made with aluminum, designed and fabricated locally

Design and fabrication of heat exchangers

Specialised aluminium plates and blocks

Environmental co-monitoringDiavik Diamond Mine (RT Minerals), Canada

In response to First Nations communities

environmental concerns:

• Environmental Agreement

• Environmental Monitoring Advisory Board

(All 5 signatory nations, DDMI & Gvt.)

• Focus: scientific monitoring combined

with traditional knowledge

• Examples of outcomes mixing science &

traditional knowledge:

– Fish palatability study & monitoring

– Caribou fecing plan

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Grievance mechanism RT South America (ICMM)

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Guiding principles Legitimacy and trust: The communities and stakeholders should consider the administration and management of complaints and grievances to be a legitimate process. They should have trust in the process and its results. Accessibility and dissemination: Every member of the communities affected by the company operations should have easy access to the mechanism and an understanding of how the process works. It should be understandable to anyone in the communities affected by project operations.  Transparency and confidentiality: The process and its results must be transparent and clear to all parties. It should also protect the confidentiality and privacy of the claimants and parties involved.  Dialogue and consultation: The process should focus on communication, dialogue and consultation among the parties in order to determine a solution acceptable to everyone.  Predictability in the process and compliance: The mechanism and its process must be predictable in terms of the stages used to resolve grievances. It must also provide the claimant with a process schedule to which the company must adhere.

Question 3 :

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How can government policies and the activities of

relevant non-governmental organizations facilitate such

public-private sector partnerships?

An example from Guinea, West Africa

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Republic of Guinea

Mining investment:

Total: Approx. $50 billion /10 years

Rio Tinto: 10 to 15 billion USD

Will Guinea experience

a resource curse

or Get it Right?

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TI Corruption Index: 164/182

GDP per capita:

$450

RTA Africa - Guinea – Boké Region (Bauxite)Capacity Building of Local Governments Project Focus Capacity building. good governance & local

development benefits sharing

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Guinea Project….. Who benefits ?

ALL • Improved local good governance • Improved use of development resources• Prevention of conflicts

NGO • Replicate a successful model in region with potential for conflict • Program growth / developing a niche

Government (PACV)

• Test a new partnership model with the Extractive Industry• Gain policy intelligence for review of the Mining Code

IFI (AFD) • Program expansion in area of governance and policy reform • Leadership role in replicating a proven model with the extractive industry• Gain intelligence for policy dialogue on new Mining Code

RTA • Foundations for good management of future tax revenues• Compliance with Guinean regulation – Code des collectivités

CR • Expanded access to a national program• Access to resources to implement Local Development Plans

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