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