Within the context of the recent Global Mining Initiative Conference in Toronto, talking with Ian Wood, Vice President of Sustainable Development of BHP Billiton.

Wood has responsibility for the development of BHP Billiton’s strategic response to global environmental and community relations issues including the sustainable development agenda, corporate social responsibility, and public reporting on the company’s environmental and community performance. The role involves the development of the Company’s public policy positions on sustainable development and corporate social responsibility and the development of supporting management standards. Prior to this, he was responsible for the provision of technical support to the Company’s Minerals Business with particular emphasis on the Asia Pacific Region. Before joining BHP in 1995, he had extensive site based experience as an environmental manager in the mineral sands, copper (including Ok Tedi in PNG), tin, and gold sectors of the minerals industry. Ian is an Environmental Scientist by qualifications from Murdoch University in Western Australia.

- How does BHPBilliton confront the issue of sustainable development?

” We have responded to the sustainable development agenda in a number of ways. Our Company Charter and Policy combine to provide a clear commitment to pursue the objective of sustainable development in all that we do. These policy positions are supported by a set of detailed management standards that we apply globally to ensure a consistent standard of performance. We have also recognized the need to enhance our interaction with local communities and ensure that they benefit in a sustainable way from our presence. To this end we have set a company target to spend 1% of our pre-tax profit on community development programs. At the Corporate level we have also created a Forum on Corporate Responsibility (external advisory group) that provides an opportunity for our senior management to discuss issues of common interest with the leadership of some influential NGOs.

We are also committed to publicly reporting our progress and I would encourage your readers to view our most recent Health, Safety, Environment and Community Report on web site at www.bhpbilliton.com.

- What’s your impression of the recent GMI in Toronto?

” I think the conference was a great success as it brought together the CEOs of many of the world’s largest mining companies for discussions with key government, NGO and academics with an interest in our industry. The discussions at the conference helped shape the Toronto Declaration released by the International Council on Mining and Metals immediately after the conference. The Declaration provides a high level outline of the work program the ICMM will carry forward on behalf of the industry.

Securing the attendance of the industry’s key stakeholders in the conference was a clear objective from the outset. It was recognized that the conference would be a waste of time if we simply provided a forum for the industry to talk to itself. The fact that the conference was attended by 20 CEOs or chairmen from the world’s largest mining companies, mining related officials from 25 governments including state ministers, industry association and academic participants and leaders from 74 non-government organizations confirms that this objective was achieved.

While there were calls from some participants for industry to move well beyond the recommendations included in the MMSD report, I think the majority of participants recognized that the MMSD was a genuine commitment to advance the industry’s environmental and social performance. It was also recognized that many of the recommendations were a significant stretch for most companies and that in many instances industry could only achieve progress through engagement with others.

I think there would also be logic in a follow up meeting at some point to demonstrate the progress the industry has made and discuss the next steps”.

- What do you think of the MMSD Report?

” The MMSD project was always going to be a major challenge due to the massive work program and the relatively tight timeframe. I think the MMSD team did a great job of commissioning and recognize a substantial research program and reflecting a diverse range of views in the final report. While I do not agree with all the recommendations in the report, the report provides a clear guide to the expectations of our stakeholders and the areas where industry and individual company efforts will be most effective. In many ways though the report is only the beginning. To be of value the industry will need to effectively respond to the recommendations both as an industry and as individual companies. As mentioned earlier, we also need to recognize that many of the recommendations are dependent on the actions of agencies outside the industry and we need to ensure their continued engagement”.

- What’s your opinion of the recently created ICMM?

” The ICMM will be the voice of the global mining industry on sustainable development and related issues. In this capacity it will play a critical role in the future of the industry. As well as facilitating ongoing debate with the industry’s key stakeholders, the ICMM will seek to identify and promote best practice within the industry. It will also pursue partnerships with other parties to help progress the industry along a path to greater sustainability”.

- What do you think of the ICMM Toronto Declaration?

“ I think the Toronto Declaration is a good summary of the ICMM members response to the MMSD and GMI conference and provides a very high level overview of the key areas in which the ICMM will be active going forward. The ICMM is now in the process of developing detailed work programs to progress the implementation of the declaration. This is where we will see some detail and clarity around timeframes and outcomes”, said Ian Wood.


by Raul F. Campusano
Director Internacional Areaminera