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A Journey Towards Responsible Mining

23 June 2016

In this blog Josh Hendry, Principal Consultant, reflects on the Initiative for Responsible Mining Assurance Standard and its planned roll -out in 2017. 

When the Initiative for Responsible Mining Assurance (IRMA) was first established in 2006, it was ahead of its time.  While the public was starting to demand more transparency and accountability in product supply chains, it was still a niche market of concerned consumers.

Developing Version 2.0

Version 2.0. of the Standard now comes out at a time when  expectations around transparency relative to sourcing materials have continued to grow and mature.   It has taken almost a decade of multi-stakeholder negotiations, but the IRMA is getting close to finalizing their Standard for Responsible Mining.  IRMA has issued version 2.0 of the Standard, which focuses on certifying mine sites not companies,  and has extended the public  consultation and comment period to June 30th.  Whether you are working in the mining industry, a product manufacturer that uses metals, a retailer, or an interested member of the general public, this is a critical time to directly engage in shaping the development of the Standard on which the first certifications will be based.

Last week I had the opportunity to talk with Aimee Boulanger, IRMA Coordinator, about the development of the Standard and what can be expected in the future as they plan for a roll-out in 2017.

Ms. Boulanger noted that over the course of developing the Standard, direct engagement from the mining industry has increased and diversified.  There is still, however, some concern from the industry about the rigour of the Standard given the number of other codes and standards they already respond to.    The IRMA however has attempted to align its requirements with other codes and standards that are commonly accepted and considered effective at managing a specific impact or issue (e.g., International Cyanide Management Code),  and has then focused on developing new requirements where there are clear gaps.  The idea of becoming certified to the IRMA Standard, Ms. Boulanger suggested, would therefore mean that a mining company would know they have gone above and beyond the requirements of most existing codes and standards.

The process of stakeholder engagement to develop and evolve Version 2.0 recognises that certain topic areas within the Standard (e.g., water quality) may require refinement, Ms. Boulanger cited that IRMA has, “flagged”, these sections in version 2.0 and hopes to receive “solution-based suggestions” from stakeholders.  While this indicates there are still some gaps in the Standard Ms. Boulanger believes one reason IRMA has had success bringing more stakeholders to the table is their openness to seek input on contentious issues.

The feedback received from some of the industry so far has suggested that the certification to the Standard could be a good way to differentiate their operations from the competition.  That may be increasingly enticing for companies dealing with low commodity prices and some significant challenges around the performance of specific sites and companies in recent years.

What’s changed?

Beyond changes to the content within many  of the Standard’s Chapters, there have also been further organizational developments in the Standard through Version 2.0.  The previous version of the Standard was set up to be a pass / fail certification, i.e., your mine site was either certified “Responsible” or it was not.  Now IRMA has moved to a model more directly tied to the concept of continuous improvement, with three levels of engagement for participating companies to demonstrate their progression towards certification.

IRMA has also added two new members to its Steering Committee, Microsoft (as downstream purchaser) and ArcelorMittal (as mining representative) .  Ms. Boulanger cited that the addition of these two companies contributed significantly to the development of the latest draft Standard and further demonstrates the level of interest in the initiative.

Piloting the Standard

IRMA plans to launch the first phase of certification with a “beta” or pilot testing process in  2017, acknowledging there may be a need to adjust the Standard based on feedback from companies and other individuals involved in the pilot.  IRMA is currently working to identify mining companies interested in piloting the Standard and is hoping for a diversity of materials, locations, etc. to ensure it is broadly applicable across different types of mine sites and a variety of metals.  Next year will be a learning process for both IRMA and participating organizations, but Ms. Boulanger suggested that those first movers on the Standard will have a head start and further ability to differentiate in the market.

What’s Next?

For IRMA to successfully emerge from the development stage and get accepted by the mining industry will still take some time.  While some mining companies may see potential competitive advantage in getting certified the true measure of success for IRMA will be getting broad uptake of the Standard across the industry.   That type of uptake typically comes in response to the standard or code being specifically required by key downstream markets.

A decade after its inception, however, IRMA finds itself well positioned to meet that demand starting in 2017.    For that reason, regardless of your position in the supply chain or your level of support for the concept, there is value in getting it right.  The best way to insure that result is through engaging in the process… by June 30th!

For more information about the services Anthesis Group provides across the Mining and Metals Supply Chain please contact Josh Hendry: josh.hendry@anthesisgroup.com, or alternatively, fill in our enquiry form below:

 

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