Rezki Syahrir

Indonesian Institute for Sustainable Mining

Sustainable Mining, from Idea to Reality

Contents• Introduction

• Issues on Sustainable Mining

• Current situation of Sustainable Mining in Indonesia

• Community Engagement and Sustainable Mining

• Towards Greater Sustainable Mining in Indonesia

Introduction• Why Sustainable Mining and Why it is urgent?

• Sustainable Development in mining industry

Why Sustainable Mining?• Viability of Mining Sector

– Mining industry concerns that its future is largely determined by their achievement on sustainable development.

• The need to generate maximum contribution to society– Mining operation should meet social expectations and share the

responsibilities with stakeholders. Communities better understand their rights and placing more

demand on governments and companies to ensure fair benefits from mineral activities.

• Net value should be positive– Tangible and intangible

Why Sustainable Mining is Urgent?• Mining is a temporary land use.

• Increasing demand of minerals to support human life.

• Response of challenges faced by the industry:– Land access

– Social problems

– Market access

– Financial access

Reputation of Mineral Industry

HOW?

Sustainable Development in Mining Industry

• Sustainability in mining does not mean an individual mine should be operated eternally, but how the industry can contribute to sustainable development

• Focused on the efforts to maximize the benefits of mining projects while in the same time to improve the environmental and social sustainability

• Emphasized on the optimization of positive impacts with the concern to the integration of economic, social and environmental pillars

Sustainable Development in Mining Industry

• Sustainability in mining does not mean an individual mine should be operated eternally, but how the industry can contribute to sustainable development

• Focused on the efforts to maximize the benefits of mining projects while in the same time to improve the environmental and social sustainability

• Emphasized on the optimization of positive impacts with the concern to the integration of economic, social and environmental pillars

Issues on Sustainable Mining

• Key challenges facing Mineral Sector

• Three priority areas to ensure sustainability in mining sector

• Toward Sustainable Mining

Key challenges facing the Mineral Sector

• Viability of the mineral industry

• The control, use, and management of land

• Minerals and economic development

• Local communities and mines

• Mining, mineral, and environment

• An integrated approach to using minerals

• Access of information

• Artisanal and small-scale mining

• Sector governance: roles, responsibilities, and instruments

Three priority areas to ensure sustainability in mining sector (JPoI 2002):

• Address the environmental, economic, health and social impacts and benefits of mining throughout their life cycle

• Enhance the participation of stakeholders

• Foster sustainable mining practices through the provision of financial, technical and capacity-building

Toward Sustainable Mining

Contributions

benefits

impacts

Toward Sustainable Mining

Mining Stakeholders

Government agencies

Non-government

organizations (NGO's)

Local Community

Politicians

Financial institutions

Labour unions

Environmental groups

Religious and traditional

groups

Commercial & industrial

enterprises

Media

Engagement

Current situation of Sustainable Mining in Indonesia

• Efforts to Maximize Mining Contribution to Sustainable Development

• Challenges of Sustainable Mining implementation

Efforts to Maximize Mining Contribution to Sustainable Development in Indonesia

• Government– Export ban for unprocessed minerals– Domestic market obligation for mined

Coal– Public consultation on EIAs and Mine

Closure Plan

• Mining Firms– Membership association (ICMM, MAC)

• Civil Society– NGOs

• Indigenous People– Dayak Indigenous Council

Questions:• How are the stakeholder engagements?• How are the intangible values?• Are these sufficient to lead to net positive value?

• Emerge as response to the proliferation of mining‘s negative impacts and misfortune of abandoned mined sites

• Critics directed towards the regional's development dependence on mining, questioning the fate of the regions after the mine being closed

Challenges of Sustainable Mining implementation in Indonesia

• Understanding of sustainable mining

• Lack of stakeholders capacity

• Missing public report and parameters of sustainable mining achievement

green mining or responsible mining

Community Engagement and Sustainable Mining

• What is Community Engagement and to what extend it may encourage mining to be more sustainable

• Community Engagement (in a form of Public Consultation) in the early stage of Mining, a Case Study

• Lessons learned from the experience:– Involved Stakeholders in the Community Engagement

– Participants Characteristic and Distribution

– Main Issues and Level of Concern

– Community Preferences

Community Engagement and to what extend it may encourage mining to be more sustainable

• Community engagement is a process of involving community in problem solving or decision making, and uses their feedbacks to achieve beneficial solutions.

• It allows companies to demonstrate their social responsibility and awareness against the environmental impact problems.

• An effective community engagement may lead mining firms to improve their social legitimacy, credibility and generate trust from stakeholders which is critical to a sustainable minerals industry.

• Essential for company business rather than a philanthropy.

Community Engagement (in a form of Public Consultation) in the early stage of Mining

A Case Study

Lessons Learned:

Community Engagement

Process

Government agencies

NGO's

Local Community

Religious and

traditional groups

Media

1. Involved Stakeholders in the Community Engagement

2. Participants Characteristic and Distribution

PRA Conventional

Subdistrict Head and Officials 3 9

Village Headman, Officials, and Council 27 11

Community and Indigenous Leaders 70 1

Women 10 0

Total 110 21

Number of ParticipantsMethod

Lessons Learned:

Description:5:Very High 4:High 3:Medium 2:Low 1:Very Low

Without a proper consultation,

legitimate issues may not be heard,

leading to conflict and

unsustainability

3. Main Issues and Level of Concern

Lessons Learned:

Name of Village:

4. Villages Interest Characteristic

Lessons Learned:

Toward greater Sustainable Mining in Indonesia

• What are to be expected?

• Measures toward Indonesian Sustainable Mining

What are to be expected?

• Stimulating local economy activity

• Contribution of mining to revenue and employment

• Mining Concert and Orchestra

– roles for government, companies and civil society in delivering on sustainable development in the sector

Measures toward Indonesian Sustainable Mining

• Defining roles and build capacity to address sustainable mining issues– Government

– Mining Company

– Civil Society

• Capacity improvement on policies and systems of community engagement

• Availability of information that publicly accessible to support effective public participation in decision-making

• Mining company should work with civil society where government capacity is lacking

• Internalizing sustainable mining principles into all stages of mining