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OECD creates extractive sector-specific stakeholder engagement guidance The Organisation for Economic Cooperation and Development launched a new guidance for stakeholder engagement within the extractive sector at the CIM Convention in May, advocating a focus on the stakeholders most vulnerable and affected by resource projects. The guidance looks broadly at how to engage with all stakeholders, but also outlines how to engage with four specific groups: Indigenous Peoples, workers and trade unions, women, and artisanal and small-scale miners. It takes a “risk-based” approach to engagement, according to Barbara Bijelic, the OECD’s legal expert on responsible business conduct.

“Stakeholders are often best positioned to identify risk posed to themselves and also to help formulate strategies for how to prevent or mitigate it,” she said. Bijelic said the OECD turned its attention specifically to the extractive sector because it saw a lot of cases brought before its national contact points (NCPs) – moderators stationed in each OECD member country that hear grievances between companies and stakeholders – specifically dealing with the sector and its poor stakeholder engagement. “The extractive sector is one of the more challenging sectors that we work on. There’s a large environmental and social footprint that comes along with extractive operations,” she said. “So it was something where there seemed to be a need for additional guidance.” The guidance, now available online, was in the works for three years,

including a two-year drafting process, and was initially proposed by the government of Canada. An advisory group of 50 people, representing governments (among them Norway, France, the Netherlands, and Colombia), industry, indigenous groups and industry associations including PDAC and the Mining Association of Canada, contributed to the document. Ben Chalmers, MAC’s vice-president of sustainable development, said the association saw the document as being “very complementary” to its own Towards Sustainable Mining program’s community engagement protocol. Following the guidance is voluntary, but Chalmers said he believes companies will participate because “it really represents a multi-stakeholder consensus view of how to best conduct engagement activities.” The OECD is currently translating the document into French and Spanish,

SUSPENDS PRODUCTION

CAMECO AT RABBIT LAKE As uranium prices continue to drop – slumping to US$25.69/lb in April, the lowest point since May 2005 – Cameco announced on April 21 it would temporarily suspend production at its Rabbit Lake operation, located in Saskatchewan’s Athabasca Basin. Rabbit Lake began the transition to care and maintenance immediately, which is expected to be completed by the end of August. As a result, Cameco cut its 2016 production estimates for Rabbit Lake to 1 million pounds, down from 3.6 million pounds. At its United States uranium operations, production estimates have also been cut, dropping to 1.1 million pounds from 1.4 million. Cameco’s overall 2016 uranium production is expected to fall to 25.7 million pounds, down from an initial projection of 30 million. – Vince Morello 26 | CIM Magazine | Vol. 11, No. 4

500 JOBS LOST + 85 JOBS LOST

AT RABBIT LAKE AT CAMECO’S U.S. URANIUM OPERATIONS

REMAIN 150 WILL AT RABBIT LAKE

FOR CARE & MAINTENANCE

170

WILL REMAIN

EMPLOYED IN THE U.S.

35

$ million

THE COST OF PLACING RABBIT LAKE UNDER CARE AND MAINTENANCE FOR 2016

million pounds

McARTHUR/ KEY LAKE’S EXPECTED 2016 PRODUCTION down from 20 million

Profile for CIM-ICM Publications

CIM Magazine June/July 2016  

METALLURGY The sweet science of separation • FEATURE Properly managing a mine’s environmental impact is key to a successful operation • MATE...

CIM Magazine June/July 2016  

METALLURGY The sweet science of separation • FEATURE Properly managing a mine’s environmental impact is key to a successful operation • MATE...