1. 0 www.dundeeprecious.com Sustainability – Net Positive Environmental and Social Gains from Mining Reuben Mills, Director Health Safety & Environment October 2009

2. 111 Contents Concept of Net positive environmental gains from mining Case studies of Net positive gains –Golden Cross Mine frog relocation program –Great spotted Kiwi Predator control program Spring Creek Mine –Awaroa Stream Diversion rehabilitation and offset program –Snail relocation program Cypress Mine –Blue Duck (Whio) Offset program Discussion

3. 2 Net Positive Gains General Concept Measurable conservation outcomes resulting from actions designed to compensate for significant residual adverse environmental impacts arising from project development and persisting after appropriate prevention and mitigation measures have been implemented The goal of environmental offsets is to achieve no net loss, or preferably a net gain, of environmental benefits on the ground with respect to species composition, maintenance of biodiversity, habitat structure and ecosystem services, including social aspects Opportunity for long-term partnerships between business and Government agencies, local communities and NGO’s

4. 3 Net Positive Gain Potential Activities Improving and creating new habitat Strengthening of ineffective protected areas Safeguarding unprotected areas Maintain bio-diversity Establishing buffer zones Zoning of project areas Securing migration paths for fish and birds Removal and control of predator species Long-term research

5. 4 Case Study 1: Frog Relocation Program Golden Cross Mine Golden Cross Project Development 1989 Endangered frog species Hochstetter’s frog identified in project area Agreement with Department of Conservation to relocate frogs to near by catchment with similar habitat Agreement included relocation and long- term monitoring

6. 5 Case Study 1: Frog Relocation program Golden Cross Mine Specialists engaged to capture and release frogs 1990 Frogs captured and released prior to construction works being undertaken Long-term monitoring has been ongoing for 20+ years Monitoring shows that population of frogs is sustainable with no net loss of species or habitat

7. 6 Final Rehabilitation Golden Cross Mine A farm in 1990... A gold mine in 1995... A community asset in 2001 Green from Gold; The tailings storage facility

8. 7 Case study 2: Great spotted Kiwi protection program Spring Creek Mine Great spotted Kiwi was identified adjacent to the Spring Creek mine Population under severe threat from wondering dogs Agreement reached with West Coast Regional Council to provide predator control fencing 750m of dog proof fencing installed Kiwi numbers have significantly increased Long-term support for predator control relationship between regulator and business

9. 8 Case study 2: Great spotted Kiwi protection program Taking a closer look at the new fence (from left to right) David Horn, CEO of the West Coast Regional Council, John Clayton, Chairman of the West Coast Regional Council, and Dr Don Elder, CEO of Solid Energy New Zealand Ltd.

10. 9 Case Study 3: Awaroa Stream Diversion 6 km of streams required diversion as part of the Rotowaro Opencast development project Current stream was alter from farming operations and had very low conservation values New sections of stream were designed to improve and replace habitat with the aim of supporting endangered fish species Fish surveys show very low fish stocks

11. 10 Case Study 3: Awaroa Stream Diversion Project was developed with Department of Conservation and local Maori tribe Stream sections were diverted over a 10 year period 5 species captured and released in to new streams with aid of local tribe Endangered fish species Giant Kokopu was relocated to new habitat Long-term monitoring shows that fish and invertebrates are thriving in the improved habitat Endangered species” Giant Kokopu

12. 11 Case Study 4: Snail relocation project Cypress Mine Project included a survey of the mining area for endangered species Snail species Powelliphanta Patrickensis located on 10% of the area Agreement with Department of Conservation to relocate snails to adjoining habitat Agreement included predator control and support for long-term research

13. 12 Case Study 4: Snail relocation project Cypress Mine 500 animals considered to be in mine area 6000 animals captured 4000 animals released back into environment Animals studied and breeding in captivity Agreement includes 10 years ongoing research Long-term relationship between Conservation Authority and business

14. 13 Case Study 5: Blue Duck (Whio) offset mitigation program Blue duck (Whio) is an endangered native duck of New Zealand Partnership between Conservation authority and Solid Energy NZ to provide predator control as offset environmental mitigation Stoat traps laid on 75 km of banks of West Coast Rivers Project has a term of 10 years Outcome significant increase in reared ducklings Population thriving and moving towards sustainability

15. 14 Discussion Net positive environmental gains are: Positive for the community, business and the environment Provide long-term sustainable solutions Allow community and business to develop long-term strong relationships Help maintain bio-diversity Business and the community working together for sustainable outcomes

16. 15 Discussion Net Positive offset concepts require legislative support European directives generally do not allow for this approach Concept provides benefits for all A sustainable approach to development Opportunity for the community and business to work together