Mineral Exploration

F A L L 2 0 1 5 23 Conflict-Affected and High-Risk Areas. The enhanced strategy also has flexibility to build awareness of Canadian CSR guid- ance, notably the Mining Association of Canada's Towards Sustainable Mining program and the Prospectors and Developers Association of Canada's e3 Plus program. Davidson, a former mining executive with international experience, says he understands the challenges small compa- nies face working abroad. Nevertheless, he says there are "too many examples" of juniors that have seen large compa- nies option their projects and walk away because things went sour on the ground. Davidson urges juniors to provide CSR training to exploration crews. "They are often the first point of con- tact, and it's critically important for this contact to happen in a positive way. Geologists have to be prepared to listen, and understand what people say to them, and understand the protocol of entering a community and who to see." Managing community expectations is also important, Davidson says, partic- ularly in remote areas with minimal gov- ernment presence. He suggests that social investments be made in a sustainable manner, through stakeholder partner- ships and collaboration. "The goal should be to build capacity in a community." One change Davidson is hoping for is for companies, particularly juniors, to come forward and seek assistance when issues arise despite their best efforts. "The idea is to not let [the issues] simmer and escalate," Davidson says, "because if we see something going on, through any corridor, it is incumbent on us to work with stakeholders, companies and local governments to facilitate a resolution." For proactive companies, the oppor- tunity to resolve issues or refute meritless allegations in an informal setting is obvi- ously more appealing than the prospect of a full-blown dispute before the NCP. Companies that won't commit to either of these processes face consequences beyond the loss of reputation and with- drawal of government support in foreign markets. Findings of non-compliance could also be taken into account dur- ing the due-diligence process, as most financial institutions, including all five of Canada's chartered banks, have adopted their own CSR policies and principles. ■ CSR: Three examples of getting it right Dozens of resource companies have faced protests over the past decade for alleged environmental and human-rights violations, including Goldcorp, First Majestic Silver Corp. and Fortuna Silver Mines. However, these companies have learned from their experiences and are now recognized as innovators and leaders in CSR. Goldcorp considers transparency to be a fundamental value – it was the first to commission a formal human rights assessment (HRA) for its Marlin mine in Guatemala, after allegations of abuses came to the attention of socially conscious investors. The company has since addressed 95 per cent of the recommendations of the HRA, including integrating respect for human rights into its management processes. A voluntary increase in royalties helped address community development gaps. Christine Marks, director of corporate communications for Goldcorp, says community relations have improved significantly in recent years. "The evidence is that [communities] are now welcoming of continuing exploration. They see the benefits of the mine." First Majestic has also made progress since being the target of protests at some of its Mexican projects. In response, the company reached out to non-governmental organizations focused on ensuring that local communities benefit from mine development. First Majestic has since earned numerous awards for its collaborative CSR approach. Fortuna, also active in Latin America, faced protests largely based on fears that its mines would compromise already scarce resources. The company took an innovative approach during construction of its San Jose Mine in Oaxaca, Mexico. Sourcing water from wells and rivers was not an option in the semi-arid region, so Fortuna identified an alternate source, an abandoned greywater treatment plant that channeled raw sewage into a nearby river and polluted the local aquifer. In early 2010, Fortuna signed an agreement to refurbish and operate the plant in exchange for residual greywater to use at its mine. The plant now provides 20 per cent of the mine's water supply, with the balance from rainwater and recycled water. It also does not pollute the environment, thereby reducing health hazards for neighbouring communities. Fortuna also took a practical approach at its Caylloma Mine in Peru by providing financial and other support to a nearby trout farm project in 2012. The initial project was such a success that it was expanded into three harvest campaigns in 2014.

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