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

2. 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

3. 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

4. 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

5. 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

6. Part 2: What we heard the past few days

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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 !!

13. Part of the Way there

14. Workshop Agenda

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

16. 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 ?

17. Workshop Notes

18. 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

19. 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