Stakeholder Newsletter: December 2021
Last week was Human Rights Day, and I wanted to take a moment to reflect on the role of business in championing the rights of everyone, everywhere – regardless of race, colour, religion, sex, language, political or other opinion, national or social origin, property, birth or other status.
In a year that was rightly focussed on the climate crisis it is important that we never lose sight of our responsibilities in supporting social progress and human dignity. In the 73 years since the signing of the UN Declaration of Human Rights, it is possible to call to mind countless examples of compassion, courage and care that have advanced sustainable development in and around mining communities. This is what I want the mining and metals industry to be known for, which includes full and fair redressal in instances where the industry has fallen short.
As an organisation, ICMM is working to enhance the contribution of mining and metals to sustainable development. To this end, we believe that the transforming of finite natural resources into economic growth and social development is best achieved through their responsible extraction, within effective mineral resource policy frameworks set by government. Transparency and accountability by government and industry are key for this.
Therefore, I’m delighted to announce that ICMM company members have committed to enhance their performance expectations and disclose all mineral development contracts granted or entered into from 1 January 2021, wherever they operate. This new commitment, set out in ICMM’s updated Transparency of Mineral Revenues: Position Statement, marks a significant step by approximately a third of the mining and metals industry to strengthen approaches to mineral resource governance.
Next year we will enhance transparency even further with the publication of a framework for consistent reporting on social and economic benefits generated. The framework will include a commitment to report tax information country-by-country. This will allow stakeholders to track, for example, if a company extracts copper in Zambia and then sells it in Europe, how much tax is being paid to the Zambian government.
Contract and tax transparency are two critical components of a safe, fair and sustainable mining and metals industry, representing two sides of the same coin. The former allows citizens to understand what should have been paid, and the latter enables them to see what has actually been paid.
Actions such as these, and others included in this newsletter, are just the start. Our Strategy and Action Plan for 2022–2024, to be published early next year will include a strong focus on the ‘S’ and ‘G’ in ESG because we believe that the 2030 Agenda will only be met if we achieve prosperity for people everywhere and the planet at large.
New Commitment on Contract Transparency
Members have committed to disclose all mineral development contracts granted or entered into from 1 January 2021, wherever they operate, marking a significant step by approximately a third of the global mining and metals industry to strengthen mineral resource governance.
The commitment builds on ICMM’s existing membership requirement on ethical business practices and sound systems of corporate governance through the disclosure of tax and royalties as set out in ICMM’s Mining Principles. This new commitment is part of ICMM’s updated Transparency of Mineral Revenues: Position Statement, representing a leadership position that is aligned to the Extractive Industries Transparency Initiative (EITI)’s existing requirements on contract transparency. Read the press release for more information.
ICMM Publishes Members’ 2020 Tax Contribution
In 2020, members reported total payments of US$23.7 billion, representing an effective tax rate of 39.7 per cent.
This latest report, which was produced by PwC, found that between 2013 and 2020 ICMM members have paid over US$185 billion (corporate income tax of $119.1 billion and royalties of $66.4 billion) to tax authorities across the world. Read the report here.
New Research Examines Implications of the External Drivers Shaping the Future of the Mining Industry on Community Resilience
In our latest Skills for our Common Future issues brief we investigate how critical external drivers are shaping how operations are developed and managed in the future. And how critically important it is for companies to integrate social performance approaches, including skills programmes, within wider business strategy to help build community resilience.
Among the key findings are that mining communities are becoming more vulnerable. Geo and socio-political volatility caused by extreme weather events and rising temperatures, driven by climate change, is eroding resilience and increasing the vulnerability of local communities, with women being disproportionately affected. Defining strategies to protect and build community resilience, including through skills training initiatives, will become increasingly key to mining companies delivery on ESG responsibilities. Read the issues brief here.
ICMM and CRIRSCO Partner to Promote High Standards of Public Reporting on Deposits Exploration
The Committee for Mineral Reserves International Reporting Standards (CRIRSCO) was formed in 1994 as a volunteer-organisation that promotes high standards in public reporting of mineral deposit estimates and exploration progress. This is vital for maintaining confidence in the accuracy of companies exploration results: the estimated mineral resources and reserves available prior to an operation starting.
ICMM has been working with CRIRSCO since 2010. During this time CRIRSCO has strengthened national reporting organisations (NROs) - the bodies that are responsible for developing national and regional mineral reporting codes and guidelines – around the world, through the development of the CRIRSCO Template. Read the full article here.
ICMM Publishes Grievance Mechanism Guidance in Russian
ICMM recognises the importance of undertaking meaningful stakeholder engagement and commit to implementing the UN Guiding Principles on Business and Human Rights.
ICMM’s Handling and Resolving Local Level Concerns and Grievances: Human Rights in the Mining and Metals Sector guidance takes the effectiveness criteria for operational-level grievance mechanisms, as set out in the UN Guiding Principles on Business and Human Rights, and provides a method for how mining and metals companies can design mechanisms to handle and resolve community concerns or grievances. It also provides practical tools to support companies with implementation. In translating the guidance into Russian, with the support of Polyus, we hope to encourage take up of our good practice throughout Russia. The guidance is also available in English and Spanish.
The Future Minerals Summit
Riyadh, Saudi Arabia • 11–13 January 2022
Ro Dhawan will be at the Future Minerals Summit where he will join ICMM Council Members Mark Bristow (Barrick Gold) and Roy Harvey (Alcoa) to discuss the importance of building sustainable foundations for mining in the Middle East, Central Asia and Africa.
8th Annual International Mining and Resources Conference + Expo
Hybrid event • 31 Jan – 2 Feb 2022
Ro Dhawan will be giving a keynote presentation on the ESG forces shaping the industry at 8.45am AEDT (21.45pm GMT) on 1 February.
Also at IMARC:
Nicky Black will be joining Newmont CEO Tom Palmer for a fireside chat where they will discuss why social performance is mission critical for the industry at 10.35am AEDT (23.35pm GMT) on 1 February 2022.
Danielle Martin will be sitting down with IGO’s Sam Retallack to explore how companies can build strong relationships with local communities at 2.45pm (3.45am GMT) on 1 February.
ICMM’s newest director Christian Spano is talking about technology and innovation at 10.40am AEDT (11.40pm GMT) on 2 February.