6/09/2017

Minerals Council of Australia

Mining and Sustainability

- Australian Perspectives

Chris McCombe
Senior Adviser - Environment

6 September 2017

Contents

1. About the MCA

2. Mining and the Australian economy
3. Enduring Value - Industry framework for sustainable
development
4. Industry initiatives and capacity building
5. Societal awareness & acceptance
6. Concluding remarks

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About us

We represent Australias exploration, mining and minerals

processing industry
49 members and 32 associate members
MCA member companies account for more than 85 per
cent of Australias annual mineral production and 90 per
cent of mineral export earnings

Our common purpose

The MCA represents the minerals industry with a common

purpose in:
Advocating pre-competitive public policy for an socio-
economic environment conducive to growth and prosperity
Identifying, sharing and promoting leading practice
operating principles
Engaging with opinion leaders and other stakeholders to
build a public presence that reflects the industrys
contribution to the sustainable economic benefit of all
Australians.

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Mining and the Australian economy

A snap shot of the Australian mining industry

Industry represents around 9 per cent of GDP
AUD$165 billion tax and royalties (2005-2015)
Employs 226,000 + people directly
Mining footprint is 0.02% of the Australian land mass.
Mining represents 4% of national water use.
Major exports include iron ore, coal, uranium, bauxite, base
metals and gold among others.

Resources share of exports rising

70% Rural Resource Manufactures Services

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50

40

30

20

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Enduring Value the Australian minerals industry

framework for sustainable development

http://www.minerals.org.au/leading_practice/enduring_value

Drivers
Community expectations, corporate values and government
regulation has continued to evolve
Historic practices were poor and there was little public
differentiation between these practices and modern industry.
The industry is often judged by its worst performer.
The future of the industry was vulnerable linked to its social
licence to operate as much as any economic factor
Communities of practice were allowing industry to share
learnings and collaborate, but a step change was needed.

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Business drivers
There are clear business drivers to improve sustainability
performance:
Poor performance impacts on future approvals
Good performance makes companies the miner of choice
Cements social licence and reduces the risk of outrage and a
regulatory response.
There is a link between sustainability and long term company
value

Enduring Value framework

Enduring Value was launched in 2006
Based on ICMM 10 Principles of Sustainable
Development
Framework for sustainable development with
detailed guidance for site level implementation
Supported by key partnerships to build industry
capacity
A condition of MCA membership
Companies are required to publicly report
on their performance across relevant
environmental, social and safety and health
aspects annually

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Enduring Value - 2015 Update

KEY FEATURES OF THE REVISED FRAMEWORK:
Continues to align with the ICMMs 10 Principles of Sustainable
Development
Translates each principle into defined actions
Identifies a set of indicators for each principle that should be evident
across companies that operate in accordance with Enduring Value
Relies on verifiable outcomes rather than compliance with process to
assess whether practices are consistent with the principles
Supports continued excellence in public reporting on performance in
the areas of health and safety, environment and community benefit
Continues to assist industry to operate in a manner that is attuned to
the expectations of the community.

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Improved outcomes for Indigenous Communities

More than 60 per cent of minerals operations neighbour aboriginal communities
Conflict between mining and Indigenous communities was once commonplace
The relationship has been positively transformed by more than 20 years of
reform in Indigenous rights and innovative industry engagement
The minerals industry is now a leader in Indigenous engagement,
empowerment and opportunity
Approx 2,000 land use agreements in 20
years providing unprecedented economic
potential for Indigenous regional and
remote communities.
The industry invested $2.2 billion in
procuring Indigenous business services in
2012 alone

Improved engagement with agriculture and regional

communities
Respectful community engagement is the foundation of a
companys social licence to operate.
Genuine relationships based on trust and respect have been
critical to the success of projects.

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Building the case for sequential land use

Promoting leading practice

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Industry leadership and capacity building

MCA Water Accounting Framework
Developed by Australian industry to improve water management
performance and account for water transparently and efficiently
Adopted internationally (through the ICMM)
Surrounding community and environment

Operational Facility
TASK

INPUT OUTPUT
STORE TREAT

DIVERT

Industry leadership and capacity building

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Societal awareness and acceptance

Concluding remarks
The minerals industry remains a cornerstone of the Australian economy
however, economic benefit is not the whole story in achieving societal
acceptance.
Industry, government and the community are on the same journey to
improved practice. As societal values and expectations have rightly
changed, the minerals industry has needed to step up to the mark.
Industrys success is linked to its social licence to operate.
Collaboration and collective action have been powerful vehicles to
improve sustainability performance in Australia
Challenges remain the industry is a broad church and performance can
vary.
Continual effort is required

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www.minerals.org.au

Minerals Council of Australia 44 Sydney Avenue, Forrest ACT 2603 Phone +61 2 6233 0600 Email info@minerals.org.au

Making the Future Possible

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This is my story pink diamonds

This is my story Len Thong

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