Luke Danielson is a leading authority on the legal structure and functioning of environmental impact assessment systems and environmental issues in the natural resource and energy industries.

Dear Mr. Danielson, what is MMSD, what kind of work are you doing, what are the aims and goals of the project?

The Mining, Minerals and Sustainable Development Project is an unique opportunity for the minerals sector to overcome the paradox it faces: how to supply the world’s demand for minerals while addressing the social, environmental and community impacts brought by the extraction, production and trading of minerals in a way that encourages poverty alleviation and environmental safeguarding.

The project is an independent two-year participatory process with the objective of “identifying how mining and minerals can best contribute to the global transition to sustainable development.” By involving a broad range of stakeholders – NGOs, community representatives, industry, academics, governments, international bodies – we aim to paint a detailed picture of the situation today, how stakeholders interact, what the stumbling blocks are, examples of best practice and what lessons we can learn from other sectors.

We hope that the project will act as a real catalyst for change both in terms of laying the foundations for a global framework for the mining sector that will integrate sustainable development into the extraction, production and trading of minerals, and providing a platform for stakeholders to engage with each other in the future.

So far, would you say this initiative has achieved its objectives?

We have made significant progress towards achieving our objective of bringing together a broad and diverse range of stakeholders into the process. We recognise that not everyone is in this process but feel quite happy with what he have accomplished thus far. MMSD has been able to bring together institutions, individuals, groups and companies face to face for often the first time. Our workshops and debates have shown clear areas of divergence. This has helped us to understand the challenges the sector faces and recognise that bringing people together is a fundamental first step in finding a solution.

We have succeeded in creating a structure that is sponsored by 28 leading mining companies and 15 other non-industry sponsors including the World Bank, UNEP, the Rockefeller Foundation, the International Union for Conservation of Nature, the Australian, Canadian and British governments, the ICEM representing over 20 millions workers and Cochilco from Chile, as well as creating a highly respected Assurance Group of 25 individuals who act as a peer review committee. Their function is to verify the independence and integrity of the MMSD project. In addition, we have formed regional partnerships with reputable institutions in important minerals producing and consuming parts of the world, who will continue our work once MMSD finishes. In South America, we are working with the Mineral Policy Research Institute of the IDRC in Montevideo and CIPMA in Santiago.

Would you say it is possible to define mining as a sustainable activity?

That’s a good question. Clearly, any mine is finite and thus not sustainable. The real question is what this process can contribute to sustainable development. We need a constructive debate that aims for a balance between the social and environmental needs of local, national and regional communities and the increasing demand for mineral products. In other words, finding mining’s role in a sustainable world. Many industries are facing similar challenges – forestry, marine, chemical, energy – and we can learn lessons from them and try to identify best practice and set mechanisms in place for continuous improvement. What has become increasingly apparent is the inter-related nature of the problems faced by the mining sector. Issues of waste, land ownership, skills, infrastructure development, conservation – are interdependent and any definition of sustainable development in the context of the mining sector will need to take a holistic approach. There’s no quick fix – sustainable development must be a long-term commitment which will impact the very survival of the mining industry.

How would you explain the negative image mining has in several regions of the world?

Mining has been castigated by observers from Pliny the Elder to Emile Zola. Mining is perceived to be big, bad and unfriendly and the industry must take responsibility for the mistakes that have been made in the past. The situation has been worsened by the lack of consultation among stakeholders. However, it’s important to note that several national economies depend on mining revenues. At any rate, MMSD is trying to point out that it is imperative for the sector as a whole to recognise that the status quo is no longer acceptable and that change needs to occur.

Why is this report important?

The report will be the culmination of the MMSD project and will be presented at the Rio +10 Earth Summit in April 2002. It will show that through its levels of participation the project’s findings can be an agent for change – it is an exceptional opportunity to challenge the status quo within the minerals sector. It will state the divergence/convergence of opinion around strategic questions/topics and suggest mechanisms to build trust and resolve disputes. There are four main areas on which we want the report to act as a catalyst for change:

Global framework: MMSD aims to highlight best practice and propose a broadly accepted global framework to the sector which will raise the bar for the management of issues such as human rights, the environment and community impact. There is widespread demand for such standards from governments, NGOs, some mining companies, commercial banks, the World Bank and shareholders.

Certification: MMSD is exploring certification systems whereby companies can meet certain standards that have been developed by consensus. Any certification system will contain independent verification acceptable to the companies, governments, the capital markets and NGOs.

Linking standards and access to capital: For the capital markets the mining industry is currently considered small and high risk. The industry’s market capitalisation is low, the amount of criticism it attracts is high. Certification could mean cheaper access to capital from both the World Bank and commercial banks. They want the comfort of independent verifiable standards.

Supply chain assurance: Large-scale consumers of minerals and metals increasingly want supply chain assurance. For example, the diamond industry now has a scheme which monitors the origins of diamonds, however it currently does not cover the “softer” issues such as environmental management. There is a need for transparency as to the origins of minerals so that the end consumers can be confident that they will not compromise their values or commercial interests.

Who are you trying to reach with the report?

By publishing a draft report towards the end of the year and encouraging comments from the broadest range of stakeholders, we hope that we may get the input of anyone who is involved in the sector and has a view as to what could be done to change it for the better. We want the report to be independent yet truly representative. By doing so it will have the mandate to act as a catalyst for change. By presenting the report at Rio +10 we hope that an international audience will recognise the sector has grasped the opportunity to integrate sustainable development into the extraction, production and trading of minerals, as well as hold the sector to account should they fail to deliver.

What will happen with MMSD after delivering its report?

MMSD was established as a two-year independent participatory project – supported by regional partner organisations in four centres across the globe. While the Work Group and Assurance Group that have been established specifically for the two-year period and will be disbanded once the final report is published, we are confident that the regional partner organisations will continue the work. We hope that the foundations will have been laid for a global standard of sustainable development for the mining sector. We may finish the project report but the process of change is just starting and will have to go on for years.