Development Synergies between LSM and ASM Jeffrey Davidson Rio Tinto 7th Annual CASM Conference Ulaanbaatar, Mongolia 9 September 2007

PART 1: Managing Relationships Madagascar 2006 Focus on interactions (positive and negative) between LSM and ASM Examples from Ghana and DRC of how large operators have responded to challenges of managing their relationships with local miners

From the company perspective Some of the key concerns regarding ASM Encroachment (trespass and invasion) Unlawful removal (theft) of gold Environmental damage and contamination Injuries and accidents Violence and human rights abuses

Company initiatives to stabilize relationships Technical and material assistance Engineering and geology Tools and technology Contacts with other assistance organisations Access to areas within the concession Employment Company workforce Alternative enterprises outside the gates Dialogue and negotiations Work agreements; tributer arrangements

General recognition by LSM Importance of ASM to the social and economic welfare of local communities A livelihood and development issue, not a law enforcement issue In own interests to find a way of living together Benefits to be gained in working in partnership with others, whenever possible

Part 2: What we heard the past few days

Positive: from and about LSM Reaffirmation recognition of ASM as a legitimate social and economic activity ASM as part of a development challenge for the company and the country with a law enforcement dimension positive relations between LSM and ASM deliver mutual benefits New commitments to positive engagement and working in partnerships

Positive: from and about government initiatives Philippines – legal framework for promoting accommodation of ASM on or near LSM coal license areas Papua New Guinea – adjustments to law to clarify rights and obligations of LSM and ASM in mine development situations Mongolia – legal powers to soum governors to promote accommodation of ASM livelihood needs on commercial concessions; historic accommodations (fluorspar) and recent efforts to build new models of accommodation (coal and gold) within concessions

Positive: from and about ASM Willingness to cooperate and participate with government and LSM in new initiatives Also the importance of consultation and communication in developing laws, policies, and projects with which ASM are expected to comply or participate in (Peru) Desire to learn how to work safely, legally and in an environmentally responsible way

Not so positive Emergence of a new class of informal miners (especially the entrepreneurs) who prefer to operate illegally even when possibilities for legal operation exist Reactive, unilateral actions in situations which call for consensus and broad based commitment in order to achieve sustainable solutions (on part of both LSM and governments) Different expectations of responsibility applied to mining companies and ASM

Worrisome: in places where both LSM and ASM activities are increasing Inconsistent implementation of existing LSM and ASM law and policy in some countries Continuing legal and policy vacuums in other countries

What do you see ? A young man burning amalgam in an open vessel or A young man conscious of the hazard, burning the amalgam outside of the ger, on the edge of the compound, upwind and wearing a mask – ready perhaps to take the next steps ! Dare we step aside or do we step up - to work together to help ASM take those next steps !!

Part of the Way there

Workshop Agenda

Additional Perspectives on LSM / ASM threats and opportunities from Mongolia and elsewhere Part 3

Part 4: Possibilities for promoting Development Synergies between LSM, ASM and Government Can we move beyond relationship management to building partnerships for positive development ? What key elements are required but are missing ? What existing conditions limit our ability and need to be clarified, changed, or improved To allow us to explore and create development partnerships as LSM, ASM and governments ?

Workshop Notes

Recommendations from Madagascar LSM Integrate ASM policies into company CSR strategy Make satellite deposits available for ASM within concessions More funding for ASM technical assistance Governments Improve legislation Grant legal rights to ASM Increase land access

Recommendations from Madagascar CASM Advocacy Stronger voice to miners and tradersin international forum More involvement of LSM with ASM Greater collaboration with Chambers of Mines John Ruggie and the human rights agenda Information Good practice guidance Map of who is doing what and where Follow-up DRC and Ghana