Developing Industry Based Voluntary Initiative Towards Sustainable Mining

1. Developing Industry Based Voluntary Initiative Towards Sustainable Mining Improve Mining Industry’s Reputation Eurasia MeNa Mining Summit Turkey 16-17May 2012

2. Sustainable Mining Corporate Social Responsibility “Reputation Drives Value”

3. Nature of the Mining Industry Mining impacts our everyday lives not only from economic and employment perspective, but in our day-to-day living. From mining come the highways, electrical and communications networks, clean-energy technologies, housing, automobiles, consumer electronics andother products and infrastructureessential to modern life.

4. Challenges Mining, by its very nature, disturbs land, air and water systems to some degree. People expect the mining industry to operate in a way that respects the environment and society. The challenge for mining companies is to find, extract and process metals and minerals while disrupting these systems as little as possible.

5. Challenges The industry must therefore be responsible for more than finding and extracting ore at a profit. We believe that the industry and the people share a common interest in making sure mining takes place responsibly, in a way that creates economic opportunities, respects community interests, protects the environment and ensures public heath and safety.

6. Goals • Protecting the environment and workers are key goals of today’s modern mining industry and the health and safety of its workers is a core value. • It is important for mining facilities to apply sustainabilty principles, adhere to strict regulatory standards and socially responsible mining practices while continually develop  new technologies. • Mining companies want their operations to do more than just follow the letter of the law. • Develop and continually improve Industry standards and ahere to them

7. International CSR Standards Mining companies follow many voluntary standards and frameworks as part of their international corporate social responsibility: • Extractive Industries Transparency Initiative • Global Reporting Initiative • ICMM Sustainable Development Framework • IFC Performance Standards on Social and Environmental Sustainability • OECD Guidelines for Multinational Enterprises • United Nations Global Compact • Voluntary Principles on Security and Human Rights • MAC – TSM Voluntary Initiative

8. How to Achieve It is foreseen as best: mining association of the country establish voluntary based industry standards and Mining companies should participate, measure their performance and publicly report In Turkey : Miners’ Association of Turkey should take this task to develop and manage the initiative

9. How to Achieve - Mechanism • The leading mining association of the country establishes a system • Set industry CSR standards to comply with • Develop guidance, principles and decleration • Establish key performance indicators • Set targets • Companies Measure their performance and report scores • Periodical external verification • Recognize best performers • The mining association manage and maintain the system • Mandotary for member companies to participate

10. Example (Mining Association of Canada) • A voluntary initiative: • Towards Sustainable Mining • spearheaded by MAC to helpthe industry improve its performance. • The initiative helps member companies manage their corporate responsibilities for social and environmental sustainability. • As a condition of membership in MAC, members must participate in TSM. Members must subscribe to a set of guiding principles backed by specific performance indicators that member companies report on annually. • The reported results are externally verified every three years and reviewed by the TSM Community of Interest Advisory Panel

11. Example Performance Measures & Protocols A voluntary initiative Peformance of member companies are measured against defined KPI’s

12. TSM Principles Community of interest Advisory Panel PolicyFormwork Defining Performance Indicators Tailings Management Energy & GHG Emissions Management Crisis Management and Planning Committies Outreach Safety and health Biodiversity conservation Management Water and Mining Mine Closure Performance Measurement System Performance Reporting Reporting Guides Verification System Assessment Protocols current Under development Technical Guidelines Future TSM Architecture

15. THANK YOU

16. Questions