COMMENTARY — Responsible mining abroad

Plain common sense and adherence to ethical standards are the best guides to carrying out mining activities in the developing world.

Nevertheless, in the words of the great modern thinker and writer, John W. Gardener: “You discover that no matter how hard you try to please, some people in the world are not going to love you.”

Developing countries are receptive to mining because they view it as one avenue toward achieving the status of a “developed nation.” It generates foreign earnings and tax revenue; it is labor-intensive, generally paying the country’s highest industrial wages; and it results in upgraded health and educational institutions.

So what responsibilities should a mining company shoulder when it enters a pre-industrial cultural environment?

I submit that there are no absolute rights or wrongs here. There are things that can and should be done to minimize cultural impact, while working with local leaders to improve living standards.

Permit me to toss up some points based on the experiences of Battle Mountain Gold and other mining companies.

* Maximize the employment of national citizens — They know more than you about acceptable and non-acceptable practices in the local culture. In Bolivia, which has a long mining heritage, Battle Mountain Gold has a staff consisting entirely of Bolivians, and this has prevented potential conflicts.

* Avoid association with a single political faction — Remember that your mine was granted by government entities that likely did so over the objection of interested parties, either local or foreign. To the extent that it is possible, maintain cordial, but arm’s-length, relations with all facets of the political spectrum.

* Be sensitive to local artisinal mining activities — Many of the new “discoveries” are in areas worked actively by artisanal miners (or garimpieros). In fact, many of the big discoveries in tropical regions are the result of artisanal miners showing the way. Foreigners constitute a threat to their livelihood, unless the locals can be incorporated into the new project.

* Emphasize health care and education — In most developing countries, these are the areas that are of most concern. I would suggest the creation of a foundation to work on these and related improvement projects — in the community. Without a separate, autonomous organization, conflicts are bound to surface and remain unresolved.

* Involve community leaders from the beginning — You’re on their turf and they can make things rough if you leave them out of the loop. You need to hear their concerns; they will be back to haunt you later if you ignore them.

Alternately, when they are working with you, their insights and connections can be of tremendous value, whether you are concerned with a foundation, infrastructure, or other local needs.

* Encourage and support local business — RTZ, in its work on developing the big gold project on Lihir Island in Papua New Guinea, has worked with, and trained, local entrepreneurs in establishing their own businesses to provide services.

* Work toward sustainable development — It’s noble to seed community development and new local businesses, but it’s essential to move them along to self-sufficiency. Your mine won’t always be there, and when you are gone, you don’t want to leave thwarted aspirations and boarded-up businesses in your wake.

We are a small industry in comparison to others — we have an obligation to our shareholders, our host country and its people to maintain the highest standards of ethics and practices wherever we operate.

— The author is chairman and chief executive officer for Battle Mountain Gold. The preceding is from a speech he gave at a symposium of the Canadian Institute of Mining, Metallurgy & Petroleum.