TPAZIFIK-_,_NFORMATIONSSTELLE"

Postfach 68, Hauptstraße 291561 NeuendettelsauGermany

Dossier Nr. 44

Grundsätze für das Umweltmanagement australischerBergbauunternehmen in Papua-Neuguinea

(engl. Original)

Herausgeber: Dr. Helen Rosenbaum, Australian Conservation Foundation.Mit Unterstützung der Melanesian Environment Foundation.

Datum: April 1995

Anmerkung der Redaktion

Deutsche EinleitungBergbauarbeitenhaben signifikante Auswirkungen auf die umliegenden Ökosysteme,einschließlich der dort lebenden Bevölkerung. Bei der Überlegung, wie weitreichendund dauerhaft diese Auswirkungen sein können oder dürfen, spielen vor allem dieUmweltplanung sowie die angewandten Abbaumethoden eine Rolle. Nur wenn diejeweilige Bergbaugesellschaft die negativen Auswirkungen auf die Umwelt zuminimieren versucht, kann sie das Vertrauen und die Unterstützung der betroffenenBevölkerung für das Projekt gewinnen. Letztlich kann sogar diese Unterstützung derBevölkerung einen wirtschaftlichen Vorteil für das Unternehmen bedeuten, dadurchnämlich, daß Entschädigungs- und Ausgleichszahlungen über einen längerenZeitraum hinweg vermieden werden können.

Damit die Umweltauswirkungeneindeutig identifiziert werden und Gegenmaßnahmenergriffen werden können, ist es von Seiten der Bergbaukonzerne notwendig, daß siedie Umwelt als ein aus vielen Einzelteilen bestehendes Ökosystem begreifen lernen.Darunter sind auch der Mensch und seine Gesellschaftsform zu subsumieren. Ausdiesem Grund muß die Ressourcengewinnung sowohl mit den sozioökonomischenund kulturellen,als auchmit den ökologischenBedingungen vor Ort äußerst behutsamumgehen.Eine solcheWahrnehmung hat direkte Konsequenzen auf die Abschätzungder Umweltauswirkungen und auf das Umweltmonitoring. Bevor einzelneBergbaugesellschaften allerdings mit der ansässigen Bevölkerung das Gesprächsuchen, sollten sie sich über die Komplexität und Struktur der jeweiligen Gesellschaftinformieren.

DiesesDokumentbeinhaltetgrundlegende Prinzipien für das Umweltmanagement. Esist hier nicht Aufgabe,detaillierte Anleitungen zu geben, sondern es sollen zum einendie Verbindungen zwischen den unterschiedlichen Bereichen des Managementsverdeutlicht und zum anderen ein Rahmen aufgezeigt werden, von dem aus eineArbeitsmethode entwickelt werden kann.

Dieser Arbeit liegen bekannte Dokumente zur Umweltproblematik und -politikzugrunde. Darunter fallen Veröffentlichungen der Minenindustrie, der Industrie imallgemeinen sowie anderer Institutionen.

Published by

Australian Conservation Foundation

340 Gore Street Fitzroy, Victoria 3065Tel: 03 - 416 1166 Fax: 03 - 416 0767

All material copyrightISBN 0 85802 119 6

Australian Conservation FoundationARBN: 007 498 482

APRIL 1995

Printed on Recycled Paper

FOREWORD

The Australian Conservation Foundation has vigorously contributed to discussions about theconduct of mining companies both domestically and off-shore in many forums. In theCommonwealth Government's Ecologically Sustainable Development Mining WorkingGroup, representatives from the mining industry, the ACF, Federal Government departments,the ACTU and CSIRO achieved consensus on a range of issues. Taken together,recommendations 63,65,66 and 84 of the Mining Working Group report articulate the needfor Australian mining companies to improve environmental management through thedevelopment of codes of conduct in collaboration with community organisations.

This document is an attempt to provide a starting point for such collaboration. It augmentsrecent publications by the ACF, namely "Mining and Ecologically Sustainable Development"and the "Report into the Impacts of the Ok Tedi Mine in Papua New Guinea". Indeed, thelatter report and extensive discussions with government and non-government organisations inPNG has informed the scope and focus of this document.

The theme of ACF's publications is to place the activities of Australian mining companies,both at home and overseas, on a more ecologically sustainable footing. This theme clearlyreflects the concerns of the Australian public. In January 1994, a survey sponsored by thePrince of Wales Business Leaders Forum about the activities of Australian companies in Asia,indicated that 80% of Australians expect companies to be at least as careful or more carefulabout the environment in Asia than in Australia. Furthermore, 62% of respondents statedthat they would be less inclined to buy the products of companies that were damaging theenvironment in Asia. More generally, a Saulwick Poll conducted in March 1994 indicatedthat despite the recession, Australians believe that environmental protection is a highernational priority than economic growth - by almost a two-to-one majority (57% vs 33%).

As Australian mining companies are increasingly venturing into the developing nations ofAsia, the South Pacific, South America and Africa, these concerns are ever more relevant.Relatively under-resourced, the governments of developing countries often lack adequatelegislative, administrative and technical support for environmental protection. In thesesituations, mining companies have a responsibility to both the communities in which theyoperate and to the Australian community (whom they represent), to conduct their activitiesaccording to international best practice - often in exceedance of legal obligations.

This document is an invitation to the Australian mining industry to jointly address the viewsof the community, through the operationalisation of the principles contained herein intopractical Codes of Conduct. The paper specifically focuses on the activities of Australianmining companies in Papua New Guinea (pNG) due to the prominence of Australiancompanies in PNG's mining industry and problems relating to their environmentalmanagement. The general message embodied by each principle, however, is likely to berelevant to mining operations in other developing nations.

Patricia J CaswellACF Executive Director

1. INTRODUCTION

A mining operation by its very nature will have significant impact on surrounding ecosystems andhuman communities. Environmental planning and operational practices playa crucial role indetermining the extent, severity and longevity of these impacts. By actively seeking to minimiseadverse environmental impacts, mining companies can increase community confidence in minemanagement and engender support for miningprojects. Improved community support can alsotranslate into corporate economicbenefits, through reduced uncertainty and compensation paymentsand avoidance oflong term financialliabilities.

In order to effectively identifyand manage environmental impacts, it is crucial that companiesrecognise that the environment consists of ecosystems and their constituent parts, including peopleand communities, as well as all natural and physical resources. Thus, resource development must besensitive to socio-economic and cultural conditions and to the characteristics of locations whichcontribute to biological diversity and human amenity. This has direct implications for the scope ofimpact assessment and environmentalmonitoring. It also highlights the need for mine personnel tounderstand the complexities oflocal societies when engaging communities in discussions.

This document is comprised of fundamental principles for environmental management. It is notintended to provide detailed guidelines, but rather to emphasise the linkages between the differentspheres of management and to provide a framework from which practical Codes of Conduct couldbe developed. The AustralianGovernment's ESD Mining Working Group recognised theimportance of Codes of Conduct in three of the recommendations resulting from its year longdeliberations (recommendations 65, 66 and 84).

Prominent environmental policy documents have guided the focus and the intent of the principles.These documents have been endorsed by many industry groups and governments as representing theleading edge of responsible environmental management. These include publications by the miningindustry (for example, by the International Council on Metals and the Environment, MiningAssociation of Canada), industry in general (the International Chamber of Commerce, BusinessCouncil of Australia, AustralianChemical Industry Council), and by other institutional bodies (suchas the Australian CommonwealthEcologically Sustainable Development Working Groups, BritishStandards Association andUnited Nations).

The principles encourage a systemic and pro-active "cradle to grave" approach to environmentalmanagement for all types of mining activity. They highlight the need to address environmental issuesand to foster community participation at all phases of mining activity - from exploration to miningtorehabilitation. This requires the establishment of transparent decision-making processes, which areclear, consistent and allow the rationale for environmental management decisions to be understoodby all interested parties. Such an approach is critical if operations are to avoid intransigentenvironmental and social problems occurring throughout mine life. This is especially important indeveloping nations, such as Papua New Guinea, where social tensions associated with miningventures have proven costly if not catastrophic.

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TABLE OF CONTENTS

1. INrRODUC'TION 12. PRINCIPLES 2

2.1 OPERATING PIIILOSOPlIY 22.1.1 Ecologically Sustainable Development... 22.1.2 Maintaining Biodiversity and Ecological Integrity 22.1.3 Precautionary Principle 3

2.2. POLICY FRAMEWORK 32.2.1 Corporate Priority 32.2.2 Community Participation \.: 42.2.3 Environmental Management System 52.2.4 Best Practice Environmental Management.. 62.2.5 Best Practice Technology 72.2.6 Polluter Pays Principle 72.2.7 Compliance With International Treaties, Laws And Regulations 82.2.8 Waste Minimisation 8

2.3 SYSTEMS AND PROCEDURES 92.3.1 Environmental Impact Assessment (EIA) ; 92.3.2 Community Right to Know 102.3.3 Continuous Environmental Improvement... 112.3.4 Envirorunental Hazards and Contingency Planning 112.3.5 Accounting For Envirorunental Expenditure 12

2.4. IMPLEMENTATION 122.4.1 Mineral Exploration 122.4.2 Mineral Resource Development 132.4.3 Mine Planning 142.4.4 Rehabilitation 142.4.5 Waste Management and Treatment. 15

2.5 MONITORING, AUDITING AND REPORTING 162.5.1 Environmental Monitoring 162.5.2 Environmental Audits 172.5.3 Corrective Action 18

2.6. EDUCATION AND PERSONNEL 182.6.1 Local Employment Generation ; 182.6.2 Environmental and Cultural Awareness 192.6.3 Competence of Environmental Staff and Laboratories 192.6.4 Occupational Health and Safety (0H & S) 202.6.5 Contractors and Suppliers 21

3. REFERENCE DOCUMENTS 223.1 International Council On Metals and the Envirorunent (ICME): EnvironmentalCharter 223.2 International Chamber Of Commerce (ICC): Charter For SustainableDevelopment : .- 223.3 Mining Association Of Canada (MAC): Guide For Envirorunental Practice andEnvironmental Policy 223.4 Business Council Of Australia (BCA): Principles of Environmental Management... 223.5 Australian Chemical Industry Council (ACIC) - Responsible Care 223.6 British Standards Association: BS 7750 Environmental Management Systems 223.7 Ecologically Sustainable Development (ESD) Working Groups: Final Report -Mining 233.8 United Nations Berlin Conference: Mining and Environment Guidelines 233.9 United Nations Revolving Fund For Natural Resources Exploration (UNRFNRE):Environmental Protection Guidelines 243.10 United Nations Conference on Environment and Development (UNCED):Agenda 21 24

ACKNOWLEDGMENTS

The ACF would like to acknowledge the Australian International Development AssistanceBureau and the Breadfor the World organisation for grants which made this work possible.

The ACF is also grateful to the many people, working for government and non-governmentorganisations who shared their expertise in environment and development issues. Theircontribution to this document has been invaluable. In addition, the editor would like tothank Ursula Wynhoven's for her time and patience in proof-reading the final draft.

The generosity of spirit and time of staff of Papua New Guinean community organisations is-especially appreciated. In particular we are indebted to ACF's partner organisation, theMelanesian Environment Foundation, and the Individual and CommunityRights AdvocacyForum.

2. PRINCIPLES

2.1 OPERATING PHILOSOPHY

2.1.1 Ecologically Sustainable Development

Recognise the linkages betweenecology, socio-cultural conditionsand human health and safety, bothwithin the workplace and thesurrounding environment, byensuring that these are addressedby corporatepolicies and decisionmakingprocesses, includingimpact assessment.

Note: 1. The integration ofenvironmental, social and economiceoncerns is internationally recognised asessential to the attainment of ecologicallysustainable development (ESD).

Note: 2. The goal ofESD will beassisted by a commitment to meaningfultwo-way communication withlandholders, governments and employeesand to link outcomes to managementdecisions in a transparent manner.

Ref ESD Mining Report; BCA­Principles of Environmental Management(Item 10); ICME - EnvironmentalCharter; The Berlin Guidelines (Item 11);Agenda 21; UNRFNRE - EnvironmentalProtection Guidelines.

2.1.2 Maintaining Biodiversity and Ecological Integrity

Accept that mining activity, includingexploration, is inappropriate in areas ofhigh ecological, social, and culturalvalue.

Note: 1 These areas include formallyprotected environments such as nationalparks, nature reserves, marine reserves,wildlife management areas and WorldHeritage areas. They also includeenvironments which are not formallyprotected but are recognised as possessinghigh ecological, social, and/or culturalvalues, such as areas identified by theConservation Needs Assessment study,proposed World Heritage sites, traditionalhunting grounds and sacred sites.

Note: 2 The principle of maintainingbiodiversity and ecological systems is afundamental objective of EcologicallySustainable Development.

Ref ESD Mining Report (Chapter 5.5)

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2.1.3 Precautionary Principle

Note: 1. The mining of a resource orthe generation of waste materialsshould only occur where it can bedemonstrated that such activity will notjeopardise the long-term viability ofspecies, the integrity of ecosystemswithin the mine catchment or the healthof'tandholders and/or employees.

Adopt an anticipatory andprecautionary approach to decision­making to avoid the risk of long­term or irreversible ecologicaldamage or detrimental impact onhuman health:

Note 2. A pro-active approach shouldbe adopted by developing strategies tominimise, and where practicable,eliminate risks to environmental andhuman health. This implies thatenvironmental and health issues must beidentified and addressed from themineral exploration stage onwards.

Note 3. This principle recognises thatreactive strategies are likely to beexpensive and/or ineffective.

Ref ICME Environmental Charter; BCAPrinciples of Environmental Management (Item10); ICC - Charter for Sustainable Development(Item 10); The Berlin Guidelines (Item 8); ESDMining Report (Chapter 3.1.6); UNRFNRE(Chapter 3.3).

2.2. POLICY FRAMEWORK

2.2.1 Corporate Priority

Recognise environmentalmanagement as afundamentalcorporate priority by incorporatingenvironmental policies, programs andpractices fully into each businessactivity and by includingenvironmental objectives injobdescriptions and staff performancereviews. A corporate environmentalpolicy and detailed environmentalmanagement plans are essentialforestablishing this priority.

Note: 1. The corporate environmentalpolicy should identify key environmentalgoals and issues for each business activityand provide direction regarding strategiesfor their management. Progress on itsimplementation should be reported atleast quarterly to the company board.The corporate environmental policyshould be publicly available.

Note: 2. The environmental managershould have a level of seniority equivalent

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2.2.2 Community Participation

Ensure theparticipation of allcommunities directly and indirectlyaffected by the mining operation indecisions relating to all phases ofactivity, including mine exploration,planning and management, siterehabilitation and compensationfordeprivation of use and enjoyment ofnatural resources.

to operations managers, reporting directlyto senior management.

Note: 3. Detailed management plansshould be developed for all aspects ofmine operation on an annual, five yearand life of mine basis. The plans shouldestablish clear objectives and progresstowards achieving them should beI .

annually audited.

Ref: The Berlin Guidelines (Item 1);ICME Environmental Charter; ICCCharter for Sustainable Development(Items 1, 2); BCA - Principles ofEnvironmental Management (Item 2); BS7750 (Section 4.2); ESD Mining Report(Page 30, Recommendation 39);Agenda 21 (Chapter 30).

Note: 1. The identification of affectedcommunities should take into account theindirect impacts of operations such asthose that result from degraded waterquality, river bed aggradation or erosiondue to road construction. Specialrecognition should be paid to thedisproportionately negative impact thatmining projects can have on the quality ofwomen's lives.

Note: 2. The participation of affectedcommunities will necessitate thedevelopment of culturally appropriate andgender sensitive mechanisms of liaison forthe establishment of environmentalpriorities, progress reporting and disputeresolution. Input from local non­government organisations (NGOs)nominated by the landholders is advisable.

Note: 3. Meaningful communityparticipation will require landholders toacquire an understanding of all aspects ofmining projects. This will necessitate thetranslation and discussion of associatedconcepts. Companies should resource

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2.2.3 Environmental Management System

Establish a comprehensive "cradle tograve" environmental managementsystem thatfeatures communityparticipation, impact assessment,environmental monitoring, wastemanagement, contingency plans,rehabilitation, staff training andperformance auditing as keyelements.

local non-government organisations toconduct community awareness programs..

Note: 4. Liaison should be conductedwith individuals or groups who have beennominated according to custom asrepresentatives by the affectedcommunities. Preference should be givento the employment of local landholders ascommunity liaison officers.

Note: 5. Outcomes of community liaisonshould be linked in a transparent mannerto corporate decision-making processes.Companyies should provide arbitration toresolve outstanding conflicts withaffected communities. The facilitatorshould be independent of the companyand nominated by the landholders.

Ref: Acrc Responsible Care(Community Right to Know); ESDMining Report (Recommendations 22,76, 83, 84); The Berlin Guidelines (Item4).

Note: 1. Transparent processes must beestablished to link the elements of theenvironmental management systemwithcorporate decision-making. This willfacilitate responsiveness to changingcircumstances and to environmentalproblems.

Note: 2. All environmental monitoringand auditing reports should be routinelyprovided to Provincial andNationalGovernments, interested non-governmentorganisations and university departments.The content of these reports should becommunicated to landholders in aculturally appropriate and gendersensitive manner.

Note: 3. The environmentalmanagement system should be designedprimarily to prevent adverse

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environmental impacts. The detectionand amelioration of adverse impacts is itssecondary objective.

Note: 4. The environmental managementsystem should be fully documented withits specific aims and corporate lines ofresponsibility clearly defined.

'I'Ref: rcc Charter (Item 2)~BCA -Principles (Item 2)~BS 7750 (Section 4,Annex A)~ACrC Responsible Care; ESDMining Report (Recommendations 29 &39); The Berlin Guidelines (Item 1);UNRFNRE Environmental ProtectionGuidelines (Chapter 6).

2.2.4 Best Practice Environmental Management

Useprinciples and standards thatreflect international libest practice ",adapted to local ecological andcultural settings, as a basisjardeveloping the environmentalmanagement system.

Note: 1 Companies should applystandards of environmental managementbased on international "best practice" toall operations in which they are involved,irrespective of their location.

Note: 2 The direct discharge of tailingsinto marine or riverine environments isnot compatible with international bestpractice.

Note: 3. High environmental impact,short life mines should be closed if theimplementation of best practice rendersthe mine uneconomic.

Ref: ICC Charter for SustainableDevelopment (Item 3); MACEnvironmental Policy (Item 2); ESDMining Report (Recommendation 63);The Berlin Guidelines (Item 5); Agenda21 (Chapter 30).

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2.2.5 Best Practice Technology

Project planning for all new minesshould seek to incorporate proven"bestpractice" technologies forreducing the environmental impact ofmining and mineral processing. Thebalance between projected plant lifeand the severity of environmentalimpact should determine the extent towhich existing developments seek toincorporate new best practicetechnologies into their operations.

Note: 1. Technology has a key role inreducing the environmental impact ofmining and mineral processing. Themineral industry should co-operate as agroup and with other parties tocontinuously improve environmentaltechnology.

II

Note: 2. Where site specific technologyis required, a clearly defined researchprogram should be initiated to fulfil thisrequirement.

Note: 3. Existing mines should fullyincorporate new best practice technologyevery 1°years.Ref: ICME Environmental Charter; ICCCharter for Sustainable Development(Item 13); BCA - Principles ofEnvironmental Management (Item 9);ESD Mining Report (Recommendations30, 49 & 69); The Berlin Guidelines(Item 6); Agenda 21 (Chapter 30).

2.2.6 Polluter Pays Principle

Accept responsibility for. the cost ofbest practice environmentalmanagement, education of employees(including contractors andsuppliers),community awareness programs andof damage imposed on others bydegradation of the environment,includingfair compensation tolandholdersfor deprivation of the useand enjoyment of nat.uralresources.

Note: 1. The polluter-pays principlemeans that the mining company is liablefor the costs of pollution prevention andcontrol measures and of environmentalrestoration. The company is also liablefor the costs of community awarenessprograms required to provide landholderswith full information prior to thenegotiation of agreements.

Note: 2 Fair compensationarrangements commensurate with theseverity of environmental and socialimpacts should be negotiated withlandholders. Companyies should provideindependent arbitration to resolveoutstanding conflicts with affectedcommunities.

Ref' ESD Mining Report (Chapter 3.1).

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2.2.7 Compliance with International Treaties, Laws and Regulations

As a minimal operationalstandard, companies shouldcomply with relevant internationalstandards and treaties, allapplicable environmental laws,regulations, dischargerequirements and agreementsnegotiated with landholders andgovernments.

2.2.8 Waste Minimisation

Seek to minimise the wastes generatedduring all processes in preference towaste treatment and disposal.Opportunitiesjar prevention, recycling,recovery and reuse ojwastes should beregularly evaluated and acted on.Companies shouldfoster research intoprocesses which re-use wastes andavoid their production.

Note: 1. A register should be maintainedof all international treaties and standards ,environmental laws, permit and licenceconditions relevant to the operations, andagreements negotiated with governmentsand communities.

Note 2: Formal and well publicisedcorporate procedures are required toaddress non-compliance with regulatoryrequirements. These would entail aclearly established chain of accountabilityand a sequence of established responses.

Note 3: Australian mining companiesshould honour all provisions ofinternational treaties pertaining tobiodiversity conservation, wilderness andheritage values, labour conditions, humanand indigenous peoples rights, whichhave been ratified by Australia and/or bythe PNG government.

Ref: rCME Environmental Charter;MAC Environmental Policy (Item 1);BCA - Principles of EnvironmentalManagement (Item 3); BS 7750 (Sections4.~, 4.8); ACrC Responsible Care.

Note: 1. Waste reduction targets shouldbe established as corporate environmentalperformance goals.

Ref' rcc Charter for SustainableDevelopment (Item 8); ACrCResponsible Care (Waste Management);The Berlin Guidelines (Item 12);UNRFNRE (Chapter 6.12); Agenda 21(Chapter 30).

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2.3 SYSTEMS AND PROCEDURES

2.3.1 Environmental Impact Assessment (EIA)

Adopt a "cradle to grave" approachto environmental impact assessment,which includes assessment prior tooperation, and a program ofmonitoring impacts during operationand at thefinal stages of 'rehabilitation. EIA must alsoestimate and monitor cumulativeimpacts, including those associatedwith other resource use activities inthe mine catchment.

Note: 1. Identification and analysis of alldirect and indirect impacts on ecologicalsystems and human communities areessential components of the assessmentprocess. Community consultation iscritical to ensure the identification of allpotential impacts as early as possible.

Note: 2. An ongoing register of impactsshould be established to facilitate theirmanagement and assessment. Impactsshould be characterised in terms of theirseverity, level of risk, reversibility,temporal and spatial nature andpropensity to contribute to cumulativeenvironmental management concerns.

Note: 3. Comprehensive environmentaland social baseline studies should beinitiated at the exploration stage toprovide a benchmark for the ongoingassessment of impacts. Such studiesshould be conducted irrespective ofwhether a formal EIS is legally required.

Note: 4. The nature and scope ofEIAwill depend on the resilience of theenvironment within the impact zone, thedegree of community effect and interest,and the degree of certainty associatedwith impact predictions and impactcontrol methods/technology.

Note: 5. The results ofEIA should bereported to Government and activelydistributed to interested NGOs and to thelibraries of institutions such as theNational Research Institute, universities,the National Archives, the NationalLibrary and provincial and nationalGovernment departments.

ReI ICC Charter for SustainableDevelopment (Item 5); ICMEEnvironmental Charter; UNRFNREEnvironmental Protection Guidelines(Chapter 6); BS 7750 (Section 4.4.3).

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2.3.2 Community Right to Know

Information regarding theenvironmental impacts ofoperations, associated hazards tosurrounding communities and theenvironment, and control measuresimplemented by companies shouldbe actively communicated in aculturally appropriate and gendersensitive manner to affectedcommunities. This informationshould also be madefreely availableto interested NGOs and to thelibraries of relevant publicinstitutions, both in Australia and inPNG.

Note: 1. Communication with affectedlandholders is likely to require both oraland visual presentations.

Note: 2. The information should beupdated and published annually and

II should include mine and environmentalmanagement plans.

Note: 3. Companies should publish allprosecutions for breaches of regulatorystandards, the results of environmentalaudits and associated corrective actionsin their annual reports.

Note: 4 All exploration and miningproposals, including terms andconditions of project approvals, shouldbe publicised and made available inculturally appropriate forms accessibleto local communities, NGOs andgovernments.

Note: 5. All environmental complaintsshould be rigorously examined by anindependent examiner. The examinershould be appointed in consultation withlandholders and local NGOs and costsshould be borne by the company. .

Note: 6. A register of complaints andthe company's responses should beestablished and made publicly available.

Ref: ACIC Responsible Care(Community Right to Know); ICCCharter for Sustainable Development(Item 15); BCA - Principles ofEnvironmental Management (Item 4);BS 7750 (Section 4.4); MACEnvironmental Policy (Item 6); ESDMining Report (Recommendations 41,76 & 83).

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2.3.3. Continuous Environmental Improvement

Progressively improve corporateenvironmental policies and practicesthrough a process of annual reviewagainst rolling environmentalperformance targets. Progresstowards targets should bepublishedin annual reports.

Note: 1. The process of review andtarget setting should be transparent andshould actively involve affectedcommunities to ensure that it reflectscommunity concerns.

Note: 2. Where appropriate,performance target parameters should bequantifiable.

Note: 3. The process of annual reviewmust be linked to management decisionsin a transparent manner.

Ref- ICC Charter for SustainableDevelopment (Item 3"); BCA - Principlesof Environmental Management (Items 2& 3); BS 7750 (section 4.5)

2.3.4 Environmental Hazards and Contingency Planning

Strategies should be developed toavoid environmental hazards andcontingencyplans should beformulated to enable rapid andcomprehensive management shouldemergencies occur.

Note: 1. Contingency plans should beprepared and tested. Staff, including sub­contractors, should receive on-goingtraining to implement plans with a highlevel of competence.

Note: 2. Information on environmentaland health hazards associated with themining operation and suitable protectivemeasures should be promptly reported toappropriate authorities, employees andthe public.

Note: 3. The company must be preparedfor off-site hazards, such as thoseassociated with the transport ofhazardous goods, as well as potential on­site accidents.

Ref: rCME - Environmental Charter;ICC - Charter for SustainableDevelopment (Item 12); BCA - Principlesof Environmental Management (Item 7);Acrc Responsible Care (EmergencyResponse, Community Right to Know).

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2.3.5. Accounting For Environmental Expenditure

Accounting procedures should bedeveloped and maintained to enableidentification of economic costs andbenefits relating to environmentalmanagement and to expeditedecisions regarding the retrofitting ofestablished mining operations.

Note: 1. Liabilities for rehabilitationshould appear in company FinancialReports as a contingent liability.

Note: 2. The post-mining period willrequire companies to establish trust fundsto address long term impacts ormanagement requirements (for example,long term rehabilitation andenvironmental monitoring, managementof contaminated land or final voids) orcompensation requirements.

Ref: BS 7750 (Annex A.3); UNRFNREEnvironmental Protection Guidelines(Chapter 6.14).

2.4. IMPLEMENTATION

2.4.1 Mineral Exploration

An environmental management planand environmental managementsystem should be developedfor themineral explorationphase. Theenvironmental management systemshould incorporate the elementsdescribedfor the mining processitself.

Note: 1. The environmental impact ofmineral exploration should be minimisedthrough the use of best practice, lowimpact, sensitive methods.

Note: 2. Community participation shouldbe integral to environmental management .at the exploration phase. Companiesshould negotiate agreements withlandholders as to the nature ofexploration methods to be used,compensation arrangements and therehabilitation of disturbed areas. Ifnecessary, arrangements should be madeto continue rehabilitation beyond thetenure of the exploration licence.

Note: 3. The company has an obligationto ensure that landholders clearlyunderstand the environmental and socialimplications of proven economicpotential.

Note: 4. A thorough understanding ofmany environmental characteristics (suchas seasonal ecological fluctuations,hydrology and meteorology) requireslong term data collection. The systematic

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collection of data must begin during theadvanced exploration phase. Guidelinesshould be developed for the conduct ofbaseline studies.

Ref: UNRFNRE EnvironmentalProtection Guidelines (Chapters 5.4; 8.6);ESD Mining Report (Recommendation84).

2.4.2 Mineral Resource Development

As soon as mineral explorationindicates a likelihood of economicpotential, the environmental/socialimpact assessment process and thecomprehensive collection ofenvironmental and social baselinedata should be immediately triggered

Note: 1. Mine feasibilitystudies and theEIA process should be fully integrated toensure that the costs and logistics ofenvironmental management (includingmonitoring and rehabilitation) areevaluated at the outset of developmentand incorporated into the assessment ofeconomic viability.

Note: 2. Comprehensive ecological andsocial baseline studies are essential to thedesign of monitoring programs and todescribe pre-mine ambient conditionsagainst which to assess impacts. Thesestudies should characterise uses of thelocal environment and socio-economicand cultural conditions (for example, clandecision-making arrangements,customary land-owning arrangements,division of labour, spiritual beliefs etc.),in addition to the physical and biologicalaspects of the environment. Ecologicaldata must be collected over a minimumofthree years.

Ref' MAC - Guide for EnvironmentalPractice and Policy (Item 3); ICC Charterfor Sustainable Development (Item 8);UNRFNRE Environmental ProtectionGuidelines (Chapters 5.4; 8.6).

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2.4.3 Mine Planning

Environmental managementconsiderations associated with allstages of mine development, frompre-operational to decommissioning .and rehabilitation, must beincorporated into mine planning. Thescope and nature of the mine planshould be guided by the informationprovided by the EIA initiated duringthe advanced exploration phase.

Note: 1. It is critical that environmentalconsiderations are incorporated into theoverall design of the mining operation atthe planning stage in order to avoidintransigent environmental problemsrecurring throughout mine life andassociated social tensions.

Note: 2. The mine plan should clearlyarticulate the environmental managementobjectives, limits of acceptable impactsand the intended impact controlstrategies, including for indirectenvironmental impacts, such as river bedaggradation or erosion due to roadconstruction.

Note: 3. Community participation in thedevelopment of the mine plan is essentialto ensure that it incorporates, at theoutset, the concerns of directly andindirectly affected landholders.

Note: 4. The mine plan should beprovided to governments, universities andinterested NGOs and communicated tolandholders in a culturally appropriateand gender sensitive manner.

Ref' ICC Business Charter forSustainable Development (Items 2 & 8);BS 7750 (Annex A); UNRFNREEnvironmental Protection Guidelines .

. 2.4.4 Rehabilitation

Ecosystems disturbed by mining ormineral exploration should beprogressively rehabilitatedthroughout the life of the mine to astable landform that is commensuratewith the surrounding ecology and thedesires of affected communities.

Note: 1. A rehabilitation strategy basedon measurable goals should be an integralpart of the initial development proposaland of the mine plan.

Note: 2. The rehabilitation goals shouldbe established in collaboration withaffected communities. The goals shouldendeavour to restore pre-mine habitats(requiring flora and fauna recolonisation)or provide for some other agreedbeneficial use. In the latter situation,

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2.4.5 Waste Management and Treatment

Utilise "bestpractice" wastepreventionand treatment technologies to minimisepollution impacts, including of acidmine drainage and air emissions.Maintain a program of trainingemployees in the use of suchtechnologies. Routinely monitorcharacteristics of the waste stream andactual environmental impacts andensure that waste management isresponsive to thefindings. Avoid thecontamination of land and water andthe discharge of toxic and bio­accumulative compounds. Direct riverand ocean disposal must be avoided forall new mineral projects

viable habitat islands and wildlifecorridors should be incorporated.

Note: 3 The company should set asidefunds at the commencement of miningwhich are sufficient to cover the full costsof achieving the rehabilitation goals andthe costs of post-mine monitoring.

Note: 4 Prior to the establishment ofrehabilitation goals, the company shouldresource NGOs to conduct awarenessprograms to educate communities aboutthe full range of options.

Ref: UNRFNRE EnvironmentalProtection Guidelines (Chapter 6.8); ESDMining Report (Recommendation 31).

Note: 1. A quantitative inventory of allwastes generated and the method andlocation of their treatment 'and/or disposalshould be established and maintained.The inventory should be publiclyavailable.

Note: 2. Conduct research into anddocument the biological and physicalproperties of each waste stream(including its toxicity), its distribution inthe environment and its actual andpotential impact on local ecosystems andhuman health.

Note: 3. The waste stream should bemonitored at the point of discharge at afrequency that would enable the detectionand rectification of pollution problemswithin hours. Samples should becollected at least hourly and analysed noless frequently than at 12 hourly intervals.

Note: 4. Wastes should be treated, ratherthan diluted, for the purpose ofcomplyingwith disposal standards,

Note: 5. Hazardous waste awaitingtreatment or disposal should be contained

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in a secure manner and its storageregularly monitored.

Note: 6. Independent reviews should beconducted, at least every two years, ofwaste treatment and storage procedures,in the light of new technologicaldevelopments.

Re}: ICC Charter (Item 8); ACICResponsible Care (Waste Management);BCA - Principles (Item 10); UNRFNREEnvironmental Guidelines (Chapter 6.7).

2.5 MONITORING, AUDITING AND REPORTING

2.5.1 Environmental Monitoring

A comprehensive environmentalmonitoring program is required tounder-pin EIA and regulatorycompliance and to expand scientificknowledge of the operation's impacton ecosystems and humancommunities. It should be linked in atransparent manner to minemanagement so as to ensure theprotection of human andenvironmental health at all times.

Note: 1. The maintenance of surroundingecosystems and human health are keygoals of the environmental monitoringprogram. At a minimum, ecologicalresearch should include biological surveysof representative habitats; investigationsof chronic and sublethal toxic effects ofmine discharges; and regularmeasurement of mine derivedcontaminants in sediments/soil, water andbiota.

Note: 2. On the basis of informationprovided by the social baseline study,markers should be developed to facilitatethe monitoring of human health andsocio-cultural impacts.

Note: 3. Culturally appropriateandgender sensitive mechanisms(encompassing visual and oralpresentations) should be established toallow affected communities to participatein the development of the environmentaland social monitoring programs and to beinformed of monitoring results. Localcommunities have an intimate knowledgeof ecosystems and their concerns abouthealth and cultural changes should guidethe social monitoring program.Monitoring results should be regularlypresented to landholders and NGOs,

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Note: 4. Monitoring should continueafter the cessation of mining to ensure theeffectiveness of rehabilitation and on­going management of long termproblems, such as the instability of wastesor leaching of contaminants. In somecases, it may be necessary to continuemonitoring over several decades.

Note: 5. Environmental monitoring,should be undertaken at a frequencysufficient to ensure protection ofenvironmental and human health at alltimes.

Note: 6. Publication of results inscientific journals should be encouragedto facilitate the broadest possibleapplication of research findings.

Ref: MAC Environmental Policy (Item4); ICC Charter for SustainableDevelopment (Item 9).

2.5.2 Environmental Audits

Regularly conduct audits to verifyand improve the efficacy of theenvironmental management system.Some key elements to be auditedinclude EIA (impactpredictions andcontrol), community participation,rehabilitation, waste management andemissions, and compliance with laws,regulations, international treaties andlandholder / government agreements.Audit results and corrective actionsshould bepublished in annual reportsor as a separate annualenvironmental report.

Note: 1. An audit plan should beestablished to document the specificactivities and areas to be audited, thefrequency of auditing, the responsibilityand protocol for auditing and theprocedures for reporting audit findings.The audit plan should be publiclyavailable.

Note 2. Auditing should be undertakenwith sufficient frequency to ensure rapiddetection and rectification ofenvironmental management problems.

Note: 3. Audits should be performed byappropriately qualified personnel who areindependent of the specific activities orareas being audited. Ecologists shouldalways be included in environmental auditteams. External auditors will provide ahigher level of credibility and impartialitythan internal auditors.

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2.5.3 Corrective Action

Corrective action should be takenimmediately on the basis ofenvironmental monitoring and auditresults to mitigate adverse effects.Thiswould entail the development ofclearly established chains ofaccountability and a sequence ofestablished responses for eachoperational area audited

2.6. EDUCATION AND PERSONNEL

2.6.1 Local Employment Generation

Mining companies shoulddemonstrate a commitment to trainand employ local women and menand tofacilitate the development ofmine-independent businesses.

Ref: ICME Environmental Charter; ICCCharter for Sustainable Development(Item 16); BCA - Principles ofEnvironmental Management (Item 3);MAC Environment Policy (Item 3);ACrC Responsible Care (CommunityRight to Know); BS 7750 (Sections 4.8,4.10); ESD Mining Report (p 30 &Recommendation 39); Agenda 21(Chapter 30).

Note: 1. The establishment of formaland transparent links between theenvironmental management system andsenior mine management is required.

Note: 2. The communication ofcorrective actions to landholders, NGOsand Governments will build communityconfidence in the company.

Ref" rCME Environmental Charter; BS7750 (section 4.8.4).

Note: 1. Annual training andemployment targets for men and womenshould be established in consultation withlocal communities and relevant tradeunions for the full range of job categories,from site workers to senior management.Training and employment targets shouldbe subject to annual audit.

Note 2: Local business developmentshould focus on facilitating the self-

, sufficiency of local communities throughlow-input, low energy technologies,including indigenous practices. Womenas well as men should be assisted throughthis program.

Ref' ESD Mining Working GroupReport (Recommendation 81); Agenda21 (chapter 32).

I -

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2.6.2 Environmental and Cultural Awareness

To educate, train and motivateemployees at al/levels in theorganisation, from seniormanagement to site workers, toconduct their activities in anenvironmentally and sociallyresponsible manner.

Note: 1. Success in meetingenvironmental standards and targetsshould be an important factor in jobdescription and evaluation.

Note: 2. Staff training should involvecultural awareness workshops facilitatedby non-government organisations,including relevant trade unions, toengender sensitivity and respect for theneeds of local communities:

Note: 3. Environmental and culturaltraining should extend to all agents of thecompany physically involved with mineralproduction such as contractors, suppliersand small-scale individual miners withwhom the company has a commercialrelationship.

Ref: ICME Environmental Charter; ICCBusiness Charter for SustainableDevelopment (Item 4); BCA - Principlesof Environmental Management (Item 5);ACIC Responsible Care; BS 7750(Section 4.3.4); The Berlin Guidelines(Item 3); ESD Mining Working GroupReport (p 30); Agenda 21 (Chapter 30).

2.6.3 Competence of Environmental Staff and Laboratories

Personnel undertaking environmentalwork should be qualified on the basisof appropriate education, trainingand/or experience. Analyticallaboratories utilised by the companyshould be accredited to NationalAustralian Testing Authority orequtvalent standard

Note: 1. Environmental staff should beprovided with adequate infrastructure andin-service training (for example, inanalytical and information systems).

Note: 2. Senior environmental staffshould have membership of anappropriate professional body (such asthe Royal Australian Chemical Instituteor international equivalent), a soundknowledge of the sciences associatedwith the work performed, and ademonstrated ability to supervise staff.

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Note: 3. Records demonstrating thequalification/training of staff must bemaintained.

Note: 4. Laboratories should routinelydispatch 10% of analytical samples toindependent NATA accreditedlaboratories for quality control ofanalytical methods.'I,

Ref' MAC - Guide for EnvironmentalPractice and Policy (Item 3); BS 7750(section 4.3); The Berlin Guidelines(Item 9).

2.6.4 Occupational Health and Safety (0 H & S)

Companies should app{ystandards ofOH &Scommensurate withinternational "bestpractice /I to alloperations in which they are involved,irrespective of their location. Safetytraining and regular drilling shouldbe mandatory for all employees.

Note: 1. Companies should establishWorkplace Safety Committees consistingof worker elected representatives andmanagement staff to improve OR & Sstandards. Transparent processes shouldlink the recommendations of WorkplaceSafety Committees with decisions ofsenior management.

Note: 2. The safety training programshould include basic training for all newemployees; training in first aid,contingency plans, fire fighting, chemicalsand equipment safety; the establishmentof rescue teams; and the training ofpersonnel to monitor health and safetyconditions.

Note: 3. Employees should beencouraged to make suggestions toimprove the safety and environmentalperformance of existing practices andprocedures. The suggestions andresponses of management should bedocumented and made publicly available.

Note: 4. A safety training programshould be developed and provided to allagents of the company physicallyinvolved with mineral production, such ascontractors, suppliers and small-scale .individual miners with whom thecompany has a commercial relationship.

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. ._._--_ -__ ._----_._---_. _.--_.. ----_- ._-_._-_ ..-_._-----~~---_.._---

Ref: Acrc Responsible Care(Emergency Response and CommunityAwareness); ESD MiningWG (Recs 64&79)~UNRFNRE (Chapters 5.5.3, 6.9,and 7).

2.6.5 Contractors and Suppliers

All contractors and suppliers shouldbe required to meet the standards ofenvironmental management outlinedin companypolicy and environmentalmanagement plans.

Notd~·1. Contracts with contractors andsuppliers should clearly state therequirement to adhere to companyenvironmental policy and plans, Failureto adhere should be seriously viewed bythe company as a breach of contract.

Note: 2. The activities of contractors andsuppliers should be audited to ensure thatthe required standard of environmentalmanagement is met.

Note: 3. Contractors and suppliersshould receive training from the companyin environmental management,contingency procedures and OH&S.

Re]:' rcc Charter (Item n),BCAPrinciples (Item 8); ACrC ResponsibleCare (Waste Management); BS 77504.8.2).

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3. REFERENCE DOCUMENTS

3.1 INTERNATIONAL COUNCIL ON :METALS AND THE ENVIRONl\1ENT(IC:ME): ENVIRONMENTAL CHARTER

The International Council on Metals and the Environment was established in 1991 and is nowcomposed of27 of the world's largest mining companies including BHP Minerals, WesternMining Corporation, Mount Isa Mines and CRA. The Environmental Charter was approvedin June 1993 by the ICME Board. II

3.2 INTERNATIONAL CHAMBER OF COM:MERCE (ICC): CHARTER FORSUSTAINABLE DEVELOPMENT

The International Chamber of Commerce launched its Business Charter for SustainableDevelopment in April 1991. Comprising of sixteen principles, it provides a voluntary code ofpractice for industry groups.

3.3 MINING ASSOCIATION OF CANADA (MAC): GUIDE FORENVIRONMENTAL PRACTICE AND ENVIRONMENTAL POLICY

The Mining Association of Canada is the national organisation of the Canadian miningindustry. It adopted an environmental policy in 1989, to which member companies formallyagree to adhere. In 1990, a Guide for Environmental Practice was developed.

3.4 BUSINESS COUNCIL OF AUSTRALIA (BCA):. PRINCIPLES OFENVIRONMENTAL MANAGEMENT

"Principles of Environmental Management" was launched in 1992 by the Business Council ofAustralia. The membership of the council comprises the eighty largest corporations inAustralia and includes mining companies such as BHP, RGC, MIM, WMC, CRA, Alcoa,Newcrest Mining and Pasminco.

3.5 AUSTRALIAN CHEMICAL INDUSTRY COUNCIL (ACIC) - RESPONSIBLECARE

"Responsible Care" was introduced by the Australian Chemical Industry Council in 1989 toimprove health, safety and environmental management within the industry, and is anobligation of membership to that council. Eight detailed codes of practice encompass aspectsof operations and products: Waste Management, Community Right to Know, EmergencyResponse, Community awareness, Product Stewardship, Research and Development,Manufacturing, Warehousing and Storage, and Transportation. .

3.6 BRITISH STANDARDS ASSOCIATION: BS 7750 ENVIRONMENTALMANAGEMENT SYSTEMS

The British Standard for Environmental Management Systems was launched in April 1992 asthe world's first standard in environmental management. It contains a specification for anenvironmental management system for ensuring and demonstrating compliance with stated

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environmental policies and objectives. It also provides guidance on the specification and itsimplementation within the overall management system of an organisation.

3.7 ECOLOGICALLY SUSTAINABLE DEVELOPMENT (ESD) WORKINGGROUPS: FINAL REPORT - MINING

This document was developed during the Ecologically Sustainable Development consultativeprocess initiated by the Commonwealth of Australia in 1990. Its 88 recommendations to theCommonwealth Government reflect the consensus viewpoint of representatives fromindustry, government, union and conservation groups with regard to policy initiativesrequired to achieve ESD in the Australian mining industry,

Four recommendations are directly relevant to the performance of Australian companies indeveloping nations and domestically. These are:

;It Recommendation 63:- that Australian mining companies with operations overseas endeavour to operate to atleast Australian practices and standards of environmental management, in a manner whichrespects local environmental values and cultures and provides appropriate returns to theeconomy in which they operate.

* Recommendation 65:- that the Australian mining industry support and participate actively in the development ofinternational codes of practice which support principles consistent with those of ESD.

'" Recommendation 66:(a) that the Australian Government, in consultation with industry and non-governmentorganisations (such as environmental and overseas aid organisations) develop codes ofconduct addressing environmental, social and indigenous peoples issuesfor overseas miningand mineral exploration projects; and

(b) compliance with the Australian Government code oj conduct be a condition of enteringinto aid contracts, for both companies and government agencies alike.

* Recommendation 84:- that the mining industry, in consultation with relevant parties, continue to develop andimplement company-based codes of conduct and that industry wide codes be developed withas wide a range of inputs by interest groups as possible, dealing with agricultural,Aboriginal and environmentally sensitive land, and that those codes of conduct includesuggestions on how industry can best consult with interested parties.

3.8 UNITED NATIONS BERLIN CONFERENCE: MINING A1\TDENVIROl\TMENT GUIDELINES

The Berlin Guidelines were formulated at a round table conference entitled 'Mining andEnvironment' held in June 1991. The conference was jointly organised by United NationsDepartment of Technical Co-operation for Development (UNIDTCD) and the DevelopmentPolicy Forum of the German Foundation for International Development (DSE). Theformulation of the guidelines was based on consultation between representatives fromindustry, governments and non-government organisations.

3.9 UNITED NATIONS REVOLVING FUND FOR NATURAL RESOURCESEXPLORATION (UNRFNRE): ENVffiONMENTAL PROTECTION GUIDELlJ\'ES

The UNRFNRE was established in 1973 to assist developing countries by financing high ris1:mineral exploration. The aims of the environment protection guidelines are to establish acode of conduct for all personnel engaged by UNRFNRE in mineral resource developmentsand to inform recipient governments of the possible environmental, social and culturalimpacts of mining operations.

3.10 UNITED NATIONS CONFERENCE ON ENVffiONl\1ENT ANDDEVELOPMENT (UNCED): AGENDA 21

Agenda 21 is a global action plan for sustainable development to be implemented over thenext decade and beyond. It was signed by over 150 nations, including Australia, at theUnited Nations Conference on Environment and Development held in Brazil in June 1992Its 40 chapters represent the most comprehensive international strategy to date for ccrnbzrirgthe problems of poverty, development and environmental degradation.

Two important themes are developed throughout the document - the importance of broadpublic participation in decision-making as a prerequisite for sustainable development and thedevolution of responsibility for resource management. Chapter 30, "Strengthening the Roleof Business and Industry", focuses on industry's responsibility to reduce its environmental ardsocial impacts.

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