Toward New Public-Private
Sector Partnerships for
Sustainable Development in
Resource Extraction
Industries
A Private Sector Perspective
International Conference, McGill University,
Montreal
March 29-30, 2012
Rio Tinto
Etienne 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 :
Are there effective practices or models that can be
identified for achieving this goal?
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Internal support systems
Communities & Social Performance Control Architecture
The way we work
Communities policy
Multi year Communities
& Social Performance
planning
Reporting
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Annual workbook
SD report
SEART
Assurance
Standards
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Mandatory requirements
Management
Monitoring and reporting
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Communities SMA
Social risk analysis (SRA)
Rio Tinto site visits
Independent audit
Guidance notes
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Communities multi year planning
Socioeconomic knowledge base
Trusts, funds and foundations
Cultural heritage
Consultation & engagement
Resettlement
Communities target
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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
Q2 - Effective practices
Key elements good communities engagement
•Communities
•
Participation Agreements
•
Regional Economic Development
•
Co-environmental Monitoring
•
Grievance Mechanism
•Engagement
•Practices
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Participation Agreements (IBAs)
RT Mineral/Argyle, Australia
Regional economic development – Rio Tinto Alcan
Canada, Saguenay – Aluminium cluster
• Full time dedicated team
of experts in regional
economic development
Design and
manufacturing of
wagons and
motorcar
(Ex. St-Félicien
Wilderness Zoo
sightseeing cars)
– 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)
Amphibian vehicle
for the mining
industry. Shell and
numerous
components made
with aluminum,
designed and
fabricated locally
• Risk capital/Innovation
financing in targeted
sectors + adhoc
management support to
address project gaps
• Support to subcontractors
Design and fabrication
of heat exchangers
Specialised aluminium
plates and blocks
• Creation of 816 jobs
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Environmental co-monitoring
Diavik 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)
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.
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Question 3 :
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
TI Corruption Index: 164/182
GDP per capita: $450
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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RTA Africa - Guinea – Boké Region (Bauxite)
Capacity Building of Local Governments Project
Focus
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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)
IFI (AFD)
• Test a new partnership model with the Extractive Industry
• Gain policy intelligence for review of the Mining Code
• 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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