2002, International Institute for Environment and Development (IIED), World Business Council for Sustainable Development (WBCSD)
Mineral products are essential to contemporary societies and economies. Many basic needs cannot be met without them. But simply meeting market demand for mineral commodities falls far short of meeting society’s expectations of industry. The process of producing, using, and recycling minerals could help society reach many other goals – providing jobs directly and indirectly, aiding in the development of national economies, and helping to reach energy and resource efficiency targets, among many others. Where industry is falling far short of meeting these objectives, it is seen as failing in its obligations and is increasingly unwelcome.
The mining and minerals industry faces some of the most difficult challenges of any industrial sector – and is currently distrusted by many of the people it deals with day to day. It has been failing to convince some of its constituents and stakeholders that it has the ‘social licence to operate’ in many parts of the world, based on the many expectations of its potential contributions:
- Countries expect that minerals development will be an engine of sustained economic growth.
- Local communities expect that the industry will provide employment, infrastructure, and other benefits that counter the risks and impacts they experience and will leave them better off than when the project started.
- The industry’s employees expect safer and healthier working conditions, a better community life, and consideration when their employment ends.
- Local citizens and human rights campaigners expect companies to respect and support basic rights, even when they are operating where government does not.
- Environmental organizations expect a much higher standard of performance and that the industry will avoid ecologically and culturally sensitive areas.
- Investors expect higher returns and have shown considerable concern about the industry’s financial results.
- Consumers expect safe products produced in a manner that meets acceptable environmental and social standards.
Companies must do much more, sometimes with fewer resources.There are boundaries to the responsibilities companies can take on in society: most people would be uncomfortable in a world where companies were the main sources of education and health care, the principal agencies protecting individual rights, or surrogate governments. Other actors have important roles to play – governments above all. Government must provide an enabling environment, define the standards expected of industry, assure those standards are being met, and have meaningful incentives and sanctions to encourage compliance. It must be a better service provider and a better protector of minority rights.
Success will require improved capacity and performance by all in the minerals sector – industry at all stages from exploration to processing, government, international organizations, non-governmental organizations (NGOs), academia, civil society, communities, labour, lenders, insurers, and consumers. All will need to learn to pursue their own objectives in ways that move society as a whole forward.
Against this background, and with the World Summit for Sustainable Development planned for 2002 in mind, nine of the world’s largest mining companies decided to initiate a project to examine the role of the minerals sector in contributing to sustainable development, and how that contribution could be increased. Through the World Business Council for Sustainable Development, they contracted with the International Institute for Environment and Development to undertake a two-year independent process of research and consultation – the Mining, Minerals and Sustainable Development Project (MMSD). The project ultimately attracted support from more than 40 commercial and non-commercial sponsors. From April 2000, Project teams in London and four key regions worked to meet four broad objectives:
- to assess the global mining and minerals sector in terms of the transition to sustainable development,
- to identify how the services provided through the minerals supply chain can be delivered in ways that support sustainable development,
- to propose key elements for improving the minerals system, and
- to build platforms of analysis and engagement for ongoing communication and networking among all stakeholders in the sector.
The project was supervised by an independent Assurance Group of 25 experienced individuals from different perspectives and regions who served as individuals rather than representatives of any organizations.The group met eight times to review progress and advise on future direction.The project management maintained independence throughout the process.
Breaking New Ground presents an analysis of a large and heterogeneous sector through the many stages of minerals and metals exploration, production, use, reuse, recycling, and final disposal.The project assumed from the start that sustainable development could provide a useful framework to guide the minerals sector. It also believed that by setting out the challenges – from all perspectives, in a balanced way – new ways forward would emerge.
