ICMM
Thank you, Mr Chairman. As a representative of the mining industry, I am most grateful for the
opportunity to contribute to this important discussion.
The overall description of the mining industry that we have heard focuses very much on the
challenges and difficulties of our sector. There is also much good practice. I know, of course, that the
problems are very real, but they are neither universal nor inevitable.
I would like to introduce some examples of current best practice in the mining world that will allow
the delivery of macro-economic benefits and also real, sustainable poverty reduction.
I must begin by saying that I represent the International Council on Mining and Metals (ICMM) ? an
industry leadership group ? that emerged from the world?s largest multi-stakeholder process,
?Mining, Minerals and Sustainable Development? (MMSD) in 1999-2001.
MMSD identified the roles to be played by industry, governments, civil society and the international
donor community in order that the supply of essential raw materials could also deliver sustainable
outcomes ? socially, economically and environmentally.
ICMM is led by the member company chief executives. It seeks to provide leadership in the
development of mining good practices ? in safety, occupational health, community health (HIV/AIDS,
TB, malaria), environment and biodiversity, mine closure, metals and mining process stewardship,
community development, working with indigenous communities, human rights. All member
companies are signatories to the Extractive Industries Transparency Initiative (EITI) and the Global
Compact. I should emphasise that all this work is conducted with other stakeholders. The member
companies are supported by a wide range of national and commodity associations.
We are well aware of the resource curse thesis, but we are also aware of many economies that have
?escaped? the curse, and we have studied just what the critical success factors are to this end, and
what steps need to be taken to increase the sustainable development outcomes ? and avoid the
resource curse.
The key lessons can be summarised:
? With a clear, consistent regulatory regime, mining foreign direct investment (FDI) and
mining fiscal revenues can contribute to steady macro-economic development.
? In some cases there is also a clear contribution to poverty reduction: 40% in Chile, 60% in
Region II. In Ghana there was greatest poverty reduction in Accra and the four main mining
regions.
? This is not, however, a universal outcome, and the key factors are:
o Capacity (at national, regional and local levels) to manage the mining rent,
o Good governance (again, at national, regional and local levels)
Importantly, these are challenges that can be addressed. The key lesson is that no one party working
alone can deliver sustainable development. It is critical for key stakeholder groups to work in
partnership: companies, governments, civil society, and international donor agencies.
The major companies that make up ICMM?s membership are also working with others in many
partnerships all over the world to deliver better sustainable development outcomes.
The mining industry remains committed to delivering raw materials for society, to use the natural
resource endowment in such a way that ultimately finite natural capital is turned into enhanced
economic, human, infrastructure and environmental capital: to achieve a net positive contribution to
sustainable development locally and nationally.
We have made great strides in responding to the challenges of Agenda 21 and also in the past 10
years. There is, of course, much more to do, and we encourage others to work with us.
Thank you, Mr Chairman.
opportunity to contribute to this important discussion.
The overall description of the mining industry that we have heard focuses very much on the
challenges and difficulties of our sector. There is also much good practice. I know, of course, that the
problems are very real, but they are neither universal nor inevitable.
I would like to introduce some examples of current best practice in the mining world that will allow
the delivery of macro-economic benefits and also real, sustainable poverty reduction.
I must begin by saying that I represent the International Council on Mining and Metals (ICMM) ? an
industry leadership group ? that emerged from the world?s largest multi-stakeholder process,
?Mining, Minerals and Sustainable Development? (MMSD) in 1999-2001.
MMSD identified the roles to be played by industry, governments, civil society and the international
donor community in order that the supply of essential raw materials could also deliver sustainable
outcomes ? socially, economically and environmentally.
ICMM is led by the member company chief executives. It seeks to provide leadership in the
development of mining good practices ? in safety, occupational health, community health (HIV/AIDS,
TB, malaria), environment and biodiversity, mine closure, metals and mining process stewardship,
community development, working with indigenous communities, human rights. All member
companies are signatories to the Extractive Industries Transparency Initiative (EITI) and the Global
Compact. I should emphasise that all this work is conducted with other stakeholders. The member
companies are supported by a wide range of national and commodity associations.
We are well aware of the resource curse thesis, but we are also aware of many economies that have
?escaped? the curse, and we have studied just what the critical success factors are to this end, and
what steps need to be taken to increase the sustainable development outcomes ? and avoid the
resource curse.
The key lessons can be summarised:
? With a clear, consistent regulatory regime, mining foreign direct investment (FDI) and
mining fiscal revenues can contribute to steady macro-economic development.
? In some cases there is also a clear contribution to poverty reduction: 40% in Chile, 60% in
Region II. In Ghana there was greatest poverty reduction in Accra and the four main mining
regions.
? This is not, however, a universal outcome, and the key factors are:
o Capacity (at national, regional and local levels) to manage the mining rent,
o Good governance (again, at national, regional and local levels)
Importantly, these are challenges that can be addressed. The key lesson is that no one party working
alone can deliver sustainable development. It is critical for key stakeholder groups to work in
partnership: companies, governments, civil society, and international donor agencies.
The major companies that make up ICMM?s membership are also working with others in many
partnerships all over the world to deliver better sustainable development outcomes.
The mining industry remains committed to delivering raw materials for society, to use the natural
resource endowment in such a way that ultimately finite natural capital is turned into enhanced
economic, human, infrastructure and environmental capital: to achieve a net positive contribution to
sustainable development locally and nationally.
We have made great strides in responding to the challenges of Agenda 21 and also in the past 10
years. There is, of course, much more to do, and we encourage others to work with us.
Thank you, Mr Chairman.