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La Granja Project Integrated water management – shared benefit
Water Stewardship Conference, Lima April 9, 2014
Other Peruvian projects
2 CONFIDENTIAL
Overview
• Rio Tinto overview;
• La Granja Project;
• Overview;
• Water context;
• RTMP approach;
• Community Partnering;
Concluding
Introduction
Rio Tinto – Approach to water
• Access to water is critical for mining and processing operations;
• Water risks tend to be location-specific. For instance, we operate in:
Water constrained settings;
Water surplus settings;
Sensitive ecological settings.
• Rio Tinto’s approach to water has three components:
Improving water performance;
Accounting for the value of water;
Engaging with others on water.
La Granja Project – Community context - water
0 2 4 6 8 10 12 14 16 18 20
Altera costumbres y modo de vida
Manejo y cuidado del agua
Falta de mano de obra
Fondo Social LG
Inseguridad ciudadana
Ruido
Riesgo accidentes
Cumplimiento de compromisos
Desigualdad e inequidad
Corrupción
Pobreza
Empleo
Daño a la agricultura
Daño a la ganadería
Inflación
Enfermedades
Contaminación
Total
N°
de talleres
Other Peruvian projects
12 CONFIDENTIAL
Overview
• Water access and its management is recognised as a significant project risk by Rio Tinto Minera Peru (RTMP);
• La Granja project not unique in this regard - throughout Peru water access is a sensitive issue;
• Adoption of RT environment, water and community policies, standards, strategies inherent in project design;
• Upholding ICMM commitments;
• Due to the sensitivities about water technical solutions alone will not be sufficient to underpin RTMP’s approach to water;
• Implementation of community acceptance strategy will be critical for success;
• Our progressive approach follows…
La Granja Project: Water context
Improving Performance
Rio Tinto Minera Peru WATER STRATEGY
Our vision for water management at RTMP is for the La Granja project to be recognised by communities, government, non-government organisations and peers as the leader in integrated water management in Peru’s mining industry
Protecting the Environment
Community Participation
Regional Water Management
Long Term Focus
Objectives
Improve our current performance to
lessen our impact, sustain our licence to operate and increase
community confidence in our ability to manage
water
Objectives
Minimise our impact on the natural
environment and downstream
communities and maximise
opportunities to enhance catchment
health
Objectives
To implement a community and
stakeholder participation and
engagement program to build trust and
credibility on water issues
Objectives
Support government partners to improve
the regional management of water to support
improved access and use of water
resources
Objectives
Plan our activities to support long term
operations, community benefit and minimise water
related closure legacies
Building Capacity
Objectives
Ensure that RTMP has the awareness, internal skills and capacity to instil a culture that recognises the importance of water in
business activities
Outcomes
Improved understanding of improvement
opportunities, decreased environmental footprint and increased focus on
water management
Outcomes
Final project plans and designs reflect and
consider the importance of managing water and
natural resources effectively.
Outcomes
Communities and other stakeholders
acknowledge and participate in the efforts
of RTMP to facilitate comprehensive and
transparent engagement
Outcomes
Improved recognition and management of
water resources in the district leading to
improved access and efficiency
Outcomes
Long term water management risks
recognised and evaluated and factored into project designs to
protect the environment and communities
Outcomes
Organisation is equipped to identify and manage water risks, supported by a high level of employee awareness of the importance of managing water
Regional Development
Design & Management
Watershed Protection
Community Participation
La Granja Project – Partnering with stakeholders
• Regional development strategy RTMP:
build trust with communities in the districts, benefits of mine development are understood and welcomed;
solid, transparent and trusting relationship with communities, particularly relating to water;
establish partnerships, leveraging the resources and active participation of communities and other stakeholders of interest;
Work together with farming leaders and district leaders (Ronderos) - strengthen their organizations, seek outcomes which promote the integrated management of water resources;
• Our focus: promoting integrated water resource management through community partnerships
La Granja: Integrated water planning - Querocoto
Irrigation infrastructure
inventory
Irrigation User committees - ALA
Reorganization and creation
Obtaining a permit for water use
Irrigation canals Improvement program
focussed on crucial sections
Rio Tinto - La Granja Social Fund
Creation of a local Integrated Water
Resource Management
Group (IWRMG)
IWRMG promoting integration to the Querocoto district
Coordination Board
Develop IWRMG plan for the Querocoto District -
ALA
Written Acceptance by
User committee
24 users committees
33 irrigation canals
3.5 km of canals
repaired / lined
IWRMG includes representatives of: • Water User committees • Rondas
• Federation • Central Rondas
• Municipality • Technical Education Institute Querocoto • Rio Tinto • Fondo Social La Granja
2013 2012 2014
• 24 water user committees formally recognised and authorized by the Chotano-Llaucano water authority;
• Paperwork filed with water authorities to obtain usage permits for all 24 water user committees;
• 5 water-use permits issued to date;
• Improving capability of water user committees;
• Improvements to crucial sections of existing irrigation canals in conjunction with the La Granja Social Fund;
• Integration of the Integrated Water Resources Management Commission of Querocoto to the District Roundtable:
− Attendees: representatives from the Irrigation user committees, Rondas, Municipality, Rio Tinto and Fondo Social La Granja
Progress – small steps, building trust
Progress – small steps, building trust
Community environmental monitoring committees – Comite Vigilancia Ambiental
• Groups created voluntarily by residents of communities in the area directly affected by the Project;
• Monitoring through community environmental inspection;
• Innovative , gender equality, early warning awareness ;
• Respect of local culture and community structures;
Partnering benefits
• Clear, reliable and harmonious relations among communities and the company;
• Early problem identification;
• Community skills development & training;
• Empowering women and community leadership;
• Active participation in the baseline studies - environmental impact study.
• Zero environmental conflicts to date;
• Develop integrated water management plan for Querocoto;
• More CVAs – downstream;
• Strategic alliances with government to strengthen water management :
Improved irrigation infrastructure;
Detailed water sources inventory establishment;
Further assessment of the quality, quantity and uses of water and water users;
Understand water priorities in the local districts
• Water infrastructure co-funding opportunities;
• Promote the linkages of biodiversity conservation and water;
• Promote co-existence of communities, farming and mining;
• Continue community participation in the EIA process – mesas de trabajo etc
Collaboration of the local water authority at the inauguration of the crucial section of the Succhuran Sigues Canal
Inauguration of work in the crucial section of the Shanquigua canal - User Committee - Rio Tinto
Next steps – Towards long term partnering
Other Peruvian projects
19
La Granja Project: Concluding
CONFIDENTIAL
• La Granja is a Rio Tinto project – full complement of Rio Tinto expectations and requirements is being implemented;
• Access to and management of water is a project critical risk – La Granja is not alone in that regard;
• Community sensitivities about water are central;
• RTMP approach recognises the importance of water to the communities and the environment – great opportunities exist;
• Community partnering to improve access and management of water – integrated management of water resources;
• Small steps achieving positive outcomes and building trust;
• RTMP confident that communities, agriculture and mining can co-exist
• More work to do…