1. MAC, Mining and the Voluntary Principles
DRAFT
MAC, Mining and the Voluntary Principles
Ryerson University
November 24, 2017

2. About MAC
Mining and Host Countries
About TSM
MAC Voluntary Principles Commitment

3. ABOUT MAC Advocacy – to advance the business of mining.
Mining association of Canada
ABOUT MAC
The national voice of Canada’s mining industry.
Advocacy – to advance the business of mining.
TSM Initiative – stewardship and social license.
40+ members in iron ore, gold, diamonds, oil sands, met-coal, base metals, uranium.
50+ members in engineering, environment, finance.
Members engaged in exploration, mining, smelting, semi-fabrication, supply.

4. Goldcorp, water testing at the Cerro Negro Mine, Argentina
Canadian mining Leadership Abroad
Canadian mining companies abroad are leaders in responsible business practices.
Mining is an economic engine for host communities that drives improvements in well- being and the benefits are inclusive.
While the outcomes are not always perfect, Canadian mining companies work hard to address issues when they arise.
Working in partnership, we can achieve more.
There is significant opportunity to leverage international development resources through the strong social and economic contributions of Canadian mining companies to local communities.
Goldcorp, water testing at the Cerro Negro Mine, Argentina

5. MAC study of its members’ mining activities outside of Canada showed:
Aggregate MAC member Value Distribution Data:
Beneficiaries within host countries
Canada’s mining sector is a global leader and makes significant contributions to raising living standards and poverty eradication.
With over 1,400 companies active in more than 100 countries, the value of Canadian mining assets abroad reached $170B in This figure is double that of Canadian mining assets at home.
MAC study of its members’ mining activities outside of Canada showed:
MAC member companies spent US$10.7B in host countries, and employed 53,000+ employees and contractors at international operations.
In fact, a 2015 MAC study found that almost 80% of the revenue generated by Canadian mining companies overseas is spent in host country economies.
The positive impact was most clear in non-OECD countries where 8 members operating in 12 non-OECD countries spent $6.2B on in-country businesses, employees and taxes.
When compared to Canada’s entire Official Development Assistance budget of $4.8B in 80 countries, the significant contribution of Canada’s mining sector to international development is apparent. 

6. Case Study: Kinross – Measuring Social benefit
Results of socio-economic surveys, Tasiast local area, 2011 (light) v (dark)

7. Mining and Social Conflict?
Some Quantitative Evidence
A new study by University of Ottawa Prof. Paul Haslam examines social conflict and mining companies in Latin America
Prof. Haslam looked at the mining industries in Chile, Brazil, Argentina, Peru and Mexico and found that:
Local firms have experienced fewer conflicts (in terms of being less associated with social conflict), than foreign firms
Among foreign firms, Canadian firms experience fewer conflicts than foreign non-Canadian firms
The analysis shows a clear country-of-origin effect which is extremely robust across specifications and even sample variation
Local firms have experienced fewer conflicts (in terms of being less associated with social conflict), than foreign firms
Among foreign firms, Canadian firms experience fewer conflicts than foreign non-Canadian firms
Local firms probably enjoy a legitimacy premium in comparison to foreign firms (ie., anti-imperialism as mobilizing frame for activists)
Seems like Canadian and Local firms perform better in poorer communities (ie., manage distributional concerns better)

8. Mandatory participation for MAC members.
TOWARDS SUSTAINABLE MINING®
About TSM:
Mandatory participation for MAC members.
Improves environmental and social performance in critical areas beyond regulations:
Environmental Footprint (tailings, biodiversity, mine closure).
Energy Efficiency (energy use, GHG emissions).
Community and People (engagement, safety & health, crisis management).
Program Strengths:
Performance measured at facility-level.
Monitored by external Community of Interest (COI) Advisory Panel.
Results are externally-verified.
Encourages excellence and continuous improvement.

9. Publication of results company specific
Tsm public reporting
Publication of results
company specific
aggregated for the membership as a whole
On website (
Useful for comparison between companies (and peer pressure)

10. TSM implemented nationally: Canada Finland Botswana Argentina
Growing interest in tsm
TSM implemented nationally:
Canada
Finland
Botswana
Argentina
Philippines
Additional countries with mines reporting on TSM indicators:
Burkina Faso
Mexico
USA
Peru
Suriname
Turkey
Australia
National associations and governments that have sought to learn more about TSM:
South Africa +
Brazil +
Chile +
Ecuador *
European Union *
Greenland + *
Indonesia
Norway *
Spain +
Sweden + *
Cuba + *
* Interest from government
+ Interest from association
Countries with mines implementing TSM, but not yet reporting:
Australia
Greece

11. Tsm and responsible sourcing
MAC has integrated Prevention of Child and Forced Labour components into TSM and anticipates that the next version of the Apple Standards will reflect this.

12. Established in February 2017:
MAC member commitment to the voluntary principles
Established in February 2017:
MAC member companies that rely upon private or public security forces have committed to implementing a human rights and security approach consistent with the VPs and based on a determination of risk at mining facilities that they control. Furthermore, MAC members with international mining operations will report on their implementation annually in MAC’s TSM Progress Report.
Members will begin reporting in MAC’s 2018 TSM Progress Report.
This commitment also creates a MAC Community of Practice for security practitioners. This group held its first workshop in March with DCAF who provided training on their VP implementation tools.
MAC is the first and only industry association to-date to make such a commitment.

13. The VP’s are a component of the Canadian Government CSR strategy
Why Make the Voluntary Principles a Membership Commitment?
VP’s are a widely recognized and effective framework for protecting human rights in conflict situations
The VP’s are a component of the Canadian Government CSR strategy
Many MAC members already commit to following the Voluntary Principles
Membership commitment provides an additional credibility to compliance asks to local security forces
MAC members expressed a willingness to provide peer support

14. For more information please contact:
Ben Chalmers
Vice President, Sustainable Development
Mining Association of Canada
Pierre Gratton
President and CEO
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