Mining Task Force 27 May 2010 Sapporo, Japan Chair’s Summary Report The Fourth Meeting of the APEC Mining Task Force (MTF) was held in Sapporo, Japan on 26-27 May 2010. Delegates from sixteen member economies, namely Australia, Canada, Chile, People’s Republic of China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, Papua New Guinea, Peru, the Russian Federation, Chinese Taipei, Thailand, United States of America, Viet Nam, and the APEC Secretariat attended the meeting. The meeting was chaired by Mr. Ma Yongzheng, Chair of MTF, Director, Department of Science and Technology & International Cooperation, Ministry of Land and Resources of China, and co-chaired by Mr. Alexei V. Pinchuk, Deputy Director, Department of Basic Industries, Ministry of Industry and Trade of the Russian Federation. Welcome and Introduction Mr. Ma Yongzheng opened the meeting by welcoming participants to the Fourth MTF meeting, thanked the economies for their fruitful intersessional cooperation, and also extended sincere thanks to Japan for the excellent arrangements and warm hospitality. The vice chair Mr. Alexei V. Pinchuk summarized the achievement made by MTF during the past two years and gave the guidance for MTF work. Japan as the host economy welcomed every participant to Sapporo to attend the 4th MTF meeting. Japan briefed the MTF meeting about APEC’s priorities for 2010. Under the theme of “Change and Action”, APEC will focus its efforts on the following areas in 2010: 1) Promoting regional economic integration, including by assessing the 2010 economies' achievement of the Bogor Goals and discussions on possible pathways to a FTAAP (Free Trade Area of the Asia-Pacific); 2) Formulating a growth strategy for the Asia-Pacific Region that incorporates balanced, inclusive, sustainable, innovative and secure growth; 3) Enhancing human security through efforts such as counter-terrorism measures, promoting food security, emergency preparedness, and countering the spread of infectious disease; and 4) Strengthening APEC's capacity to advance these agenda items, including through economic and technical cooperation. We think that these agenda items will be important components of APEC's future structure. Update from the APEC Secretariat The APEC Secretariat reported the recent APEC developments, in particular, the outcomes of SOM1 meeting held in Hiroshima in February 2010 and related meetings. He also stressed the importance of enhancing sustainable development in the mining sector, as well as launching a dialogue with EU. The Committee on Trade and Investment has agreed on work program that is focused on advancing Regional Economic Integration. The SCE endorsed its 2010 workplan and the Term of Reference that reflect reform measures to strengthen the SCE processes. The APEC Secretariat also introduced the APEC new project approval and management system, especially the new approach to proposal selection for Session 2, and required MTF to rank the new project concept notes by June 9. The APEC Secretariat briefed the meeting on strategies and approaches of APEC communication, including MTF news release, the outcome of workshops for MTF and also the contributions of MTF to the newsletters of APEC. MTF 2010 Workplan The Chair briefed the meeting on MTF 2010 Workplan, and informed the economies that the Workplan has been endorsed by SCE (see Attachment for Workplan). The MTF Chair informed the draft report to the UNCSD, “Sustainable Development of Mining Sector in APEC”, was endorsed by ECOTECH and will be submitted at SOM2. MTF’s Contribution to proposed APEC Growth Strategy 1 The Chair briefed the meeting about MTF’s contribution to proposed APEC Growth Strategy. Balanced Growth:To strengthen policy dialogue and identify best practices for regulatory and structural reforms in mining; To advance trade and investment facilitation and liberalization in mining; To assist in enhancing minerals exploration, mining and metals industry development through actionoriented programs and activities that are focused and strategic; To encourage member economies to implement APEC Ease of Doing Business (EoDB) Action Plan with regard to mining and metallurgy; Sustainable Growth: To continue on-going work to identify principles and best practices to ensure progress in sustainable development in mining; Innovative Growth: To serve as a platform for member economies for information exchange on new technologies in mining, including those of environmental protection and energy-saving; Inclusive Growth: Identify capacity building needs and enhance capacity building activities; encourage member economies to develop social resilience safety nets in mining and metallurgy; Indonesia informed the meeting the new mining law has adopted the environmental protection concept and cooperation on technology. Report of the APEC Business Advisory Council The APEC Secretariat informed MTF that since 2002 all sub-fora of APEC should address the recommendations made by ABAC and encouraged the members to submit their response to ABAC recommendation by the end of this June. Project Activities Republic of Korea briefed the meeting about the project “Balancing Competing Demands of Mining, Community and the Environment to Achieve Sustainable Development in Mining Sector” implementation, expected outcomes and the upcoming Workshop. The Russian Federation suggested that the questionnaire should be circulated before the workshop to MTF member economies. Malaysia raised the questions of sustainable development index created by this project. Mexico suggested that MTF change the perception of mining and show the benefits of mining activities to the community. China raised the question of the process for uploading the project research results on APEC website and the submission to UNCSD. China presented to the meeting the new project concept note on “APEC Region’s Mining Information Exchange and Portal Web Site Development”. Australia, Canada, Japan, Chile and the United States of America raised the concerns for the maintenance and content of the website. China responded that the project can be implemented at website construction stage by self-financing and APEC funding. The cost of maintenance of the portal will be supported by China. The content of the website shall be based on consensus of each member economy and updated by them. China presented to the meeting the new project concept note on “Building Capacity for a Low-carbon Mining in APEC Region”. Australia, Canada, Malaysia and the Russian Federation fully support the general concept and the expected outcomes of the project. Some members suggested that technological issues and regulatory issues should also be stressed during the research and implementation. Malaysia and Thailand presented to the meeting the new project concept note on “Capacity Building on Sustainable Development Indicators for Mining and Mineral Industry”. Japan, Republic of Korea, Indonesia, the Russian Federation and Australia support the proposal and suggested the research results made by APEC and other international organizations should be included and applied. Japan cosponsors the project. 2 Chile and the Russian Federation presented to the meeting the new project concept note on “Attracting Mining Investment to APEC Economies: Factors & Best Practices”. Canada cosponsors the project. The Russian Federation informed the meeting that the project concept note is correspondent to the MTF workplan for 2010 as well as APEC new growth strategy. Australia suggested, and MTF agreed that the outcomes of the projects include recommendations for action by MTF that can be included in MTF action plan. MTF endorsed 3 projects, namely “Building Capacity for a Low-carbon Mining in APEC Region”, “Capacity Building on Sustainable Development Indicators for Mining and Mineral Industry”, and “Attracting Mining Investment to APEC Economies: Factors & Best Practices”. MTF Chair required each member to rank these 3 projects by June 3 in order to submit the final prioritization to the APEC Secretariat by June 9. MTF suggested the project “APEC Region’s Mining Information Exchange and Portal Web Site Development” be refined. Presentation on the Steel Stewardship Forum Australia delivered a presentation on behalf of the Steel Stewardship Forum (the SSF) which brings together all major sectors of the steel product life cycle and supply chain. APEC MTF notes the SSF has an example of developing the stewardship model from which lessons can be learned and directions followed when promoting stewardship to APEC as a whole. APEC MTF also notes that there is developing expertise in the SSF that can be drawn on for other projects that MTF may consider and the MTF noted the experience of SSF and its expertise is available to help accelerate the development of other stewardship initiatives. The Current Situation in APEC Member Economies in Mining Sector including Major Events, Trends, Problems/Issues of the Sector, Forecast for the Future The Russian Federation briefed the meeting on the current situation of mining sector. Australia volunteered to be the next MTF presentation maker of this issue. Discussion on the New Members of “the Best Friends of the Chair” Club The Russian Federation informed MTF the achievements made by the Club and MTF endorsed the Club to enhance its rule between MTF and the mining industries. The Chair asked each economy to provide representatives of the mining industry to form the updated club by the end of this June. Information on MTF external contacts MTF suggested that each economy should bear its responsibilities for establishing contacts with external organizations. The United States of America and Australia undertook to raise the means of introducing APEC MTF agenda with the secretary general of the international study groups. ECONOMIES PROPOSALS ON THE WORK PLAN FOR 2010 AND MTF MEDIUM-TERM WORK PLAN FOR 2010 -2014 MTF members agreed to submit the medium-term Work plan by the end of June or early July 2010 based on the suggestions of all economies, the 10 principles raised by MRM3, as well as new project proposals. MTF will submit the Work plan to APEC before Aug. 30. The MTF recognized that a report should be submitted to SCE for another extension of MTF mandate before SCE1 meeting of 2011. INFORMATION FROM JAPANESE MINING ASSOCIATION ABOUT THEIR OVERSEAS ACTIVITIES 3 Japanese Mining Association presented to MTF the company’s activities, such as the strategy for the “Recycle-Oriented” Society including a concept of Urban Mine, overseas mining investment and environmental activities at Huckleberry Mine in Canada. Japan responded to Australia’s questions on forging alliance with local communities on environmental issues. Initiate dialogue with EU on Classification of Chemical Substances and Nickel Alloys Australia briefed the meeting on the issue of classification of chemical substances. The MTF agreed that it has concerns about the misapplication of the read-across process as it applies to the classification of nickel compounds in particular the scientific and procedural grounds for that reclassification, the potential for far-reaching adverse economic impacts for APEC nickel producing and consuming economies and the unfortunate precedent for the classification for other chemical substances under REACH. The MTF agreed that Chair of MTF write to EU to express MTF concerns on this issue and create a dialogue. Indonesia, Japan, Chinese Taipei, the Russian Federation, the United States of America, the People’s Republic of China, Australia and Canada supported the initiative. The Russian Federation briefed the meeting an update on the developments with the EU classification of chemicals. MTF decided that the letter to EU commissioners should be sent by the Chair of MTF. The draft of the letter will be finalized by Australia and other relevant economies, Canada, Chile, Indonesia, Japan, the Russian Federation and the United States of America, based on the original draft letter presented by Australia on course of next two weeks. MRM4 The United States of America will hold MTF5 at the margins of SOM2 meeting in Montana, USA in 2011. The Russian Federation will consider the possibility of hosting MRM4 in Russia in 2012 and inform member economies intersessionally or in the MTF5 meeting. Australia suggested that MTF develop an agenda for MRM4. Other Matters Canada briefed the meeting on the outcomes of the UNCSD process to review mining. Canada and Australia encouraged economies to participate in this process. Chile briefed the meeting on the incoming mining activities to be held in Chile in September. Further information will be provided in the next week. Chair’s Closing Remarks The Chair thanked all MTF members and the Secretariat for their proactive work, as well as the host economy Japan for excellent arrangement and hospitality. 4