Managing Complexity: Tampakan, Philippines Case … Complexity: Tampakan, Philippines Case Study ......
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1 RESPONSIBLE RESOURCE DEVELOPMENT Managing Complexity: Tampakan, Philippines Case Study Ian Callow, CWiMI 10 May 2017
Transcript of Managing Complexity: Tampakan, Philippines Case … Complexity: Tampakan, Philippines Case Study ......
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RESPONSIBLE RESOURCE DEVELOPMENT
Managing Complexity:Tampakan, Philippines Case Study
Ian Callow, CWiMI10 May 2017
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Tampakan Copper-Gold Project
– Future Tier 1 asset from one of the largest undeveloped copper-gold deposits in the world
• 2.94 Bt resource at 0.51% Cu grade• 15 Mt contained Cu• 17.9 Moz contained Au
– Potential 17 year mine life producing 375,000 t/yr Cu and 360,000 oz/yr Au
– Developed by Sagittarius Mines as the Philippines Government contractor under a Financial and Technical Assistance Agreement (FTAA)
The Prize
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Location
– Near General Santos City, approximately 1,000km south of Manila
– Four provinces
– Four municipalities
– Nine barangays
– ~2.6M people
Project Setting
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Location
– Situated in the headwaters of four river systems at the south-western extent of the Quezon Mountain Range
– High rainfall (2,400mm/yr) but south of typhoon belt
– Highly seismic
Project Setting
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Social
– Strong Catholic influences with little or no religious issues
– Lumads or indigenous peoples (IPs) in the mountainous areas (B’laan)
– Social services active but grossly underfunded
– Little regard for authority with peace and order issues (often violent) prevalent
Project Setting
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Economic
– Light industry, irrigated and dry land agriculture and associated support services
– Few well paying jobs with resultant drain of skilled workers to Manila or overseas (OFW)
– Strong cash economy impacts Government revenue base and little revenue flows to Mindanao
– Areas of illegal logging and artisanal small scale mining in remote areas
Project Setting
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Political
– Patronage politics influences governance at all levels and most local governments:
• Have weak administrative capacities • Hold a narrow sense of development • Are driven by partisanship and vested personal interests
– The Philippines has a hyperactive democracy with a highly vocal and organized civil society that:
• Influences public opinion• Drowns out core systemic issues
– Fringe group of leftist and public interest lawmakers seek to repeal and replace the Mining Act of 1995 with stricter regulations partial to Filipino businesses and small-scale mining ventures
Project Setting
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Multiple challenges – a selected list…..
Project Development
Political Technical
InconsistentlegislativeframeworkProvincialbanonopenpitminingLowlevelofunderstanding ofminingbydecisionmakersPoorhistoryofmining inthePhilippines
CorporateIRR/NPVrequirementsMinewastemanagementoptionsLarge resourcewithrelativelylowgradesElevatedarsenicSeismicityPowerandportoptions
Environment Social
Competingdemands forhighqualitywaterHigh rainfall – multiplecatchmentsElevatedsulphate/ARDpotentialLimitedbaselinedataMineclosure(perpetual issues)Oldgrowthforest/biodiversity
Limited/no understanding ofminingLackofsafetycultureRequiredresettlement of5,000+IPsPeaceandorderissues(inc NPA)Employmenthungry unskilledworkforceStronganti-miningCatholicchurch
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Sustainable Development Principles – integral to business model and decision-making
– Xstrata Business Principles– Xstrata Sustainable Development Framework– ICMM Sustainability Principles and Guidelines– UN Global Compact– UN Declaration on Human Rights– Voluntary Principles on Security and Human Rights (VPSHR)– Relevant ISO Standards– International Finance Corporation (IFC) Standards
Project Development
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Engineering and environmental staff working together
– Early identification of environmental issues
– Concurrent engineering and environmental studies• Mitigation strategies incorporated into design
– Multi-Criteria Analysis (MCA) approach• Tailings and waste rock management• Ore movement• Water management and water treatment• Closure options
Challenge: Integrated Mine Planning
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Final Mine Design – 66Mtpa processing rate
Challenge: Integrated Mine Planning
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Open-pit and waste rock storage
Challenge: Integrated Mine Planning
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Ore and high S waste movement – Dobbelmayr RopeCon
Challenge: Integrated Mine Planning
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Demand for water – Mal River upstream of irrigation dam
Challenge: Water Management
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And downstream…..
Challenge: Water Management
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Water Management Plan
Challenge: Water Management
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Multiple Public and Private Presentations
Challenge: Community Understanding
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Information Centres
Challenge: Community Understanding
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“Seeing is Believing” – tours to operating/closed mines and dams
Challenge: Community Understanding
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“Seeing is Believing” – tours to operating/closed mines and dams
Challenge: Community Understanding
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“Seeing is Believing” – tours to operating/closed mines and dams
Challenge: Community Understanding
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Sensational Statements
Challenge: Active Anti-mining Groups
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Regular Protests
Challenge: Active Anti-mining Groups
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Peace and Order Issues
Challenge: Protection of Human Rights
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Human Rights
– Human Rights Security Assessment (Business for Social Responsibility)
– All human rights covered but with focus on security risks
– Voluntary Principles for Security and Human Rights training provided to all police, regular and reserve army, security contractors, staff operating in Project Area
– Addressed in Social Impact Management Plan
Challenge: Protection of Human Rights
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Social Impact Management Plan – maximise social benefits/minimise social impacts
– Business opportunities– Employment opportunities– Community investment (inc statutory requirements)– Capacity building (inc statutory requirements)– Mine closure– Environmental monitoring (inc statutory requirements)– Project induced inward migration– Health– Contractors and workforce– Human Rights
Challenge: Social Impacts
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Social Impact Management Plan – Business Opportunities
Challenge: Social Impacts
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Focus on approvals in particular indigenous consent (FPIC)
– Limited support for greenfield projects by Glencore and sold to the Philippine listed Alcantra Group in June 2015
– Working to resolve Philippine mining fiscal regime (taxes and royalties)
– On-going consultation with IPs and National Commission of Indigenous Peoples (NCIP)
– Offsite approvals – port and power solution
– Environmental Compliance Certificate cancelled by then DENR Secretary Lopez in February 2017
Current Status
