La Granja Project Integrated water management shared benefit Water Stewardship Conference, Lima April 9, 2014
Introduction CONFIDENTIAL 2 Overview Rio Tinto overview; La Granja Project; Overview; Water context; RTMP approach; Community Partnering; Concluding
Rio Tinto a world leader in mining 3
Rio Tinto Global projects & operations 4
Rio Tinto Approach to water Access to water is critical for mining and processing operations; Water risks tend to be location-specific. For instance, we operate in: Water constrained settings; Water surplus settings; Sensitive ecological settings. Rio Tinto s approach to water has three components: Improving water performance; Accounting for the value of water; Engaging with others on water.
La Granja Project - Location
La Granja Project: Pacific / Atlantic catchment 7
La Granja Project: Local catchment CONFIDENTIAL 8
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La Granja Project Community context - water Contaminación Enfermedades Inflación Daño a la ganadería Daño a la agricultura Empleo Pobreza Corrupción Desigualdad e inequidad Cumplimiento de compromisos Riesgo accidentes Ruido Total N de talleres Inseguridad ciudadana Fondo Social LG Falta de mano de obra Manejo y cuidado del agua Altera costumbres y modo de vida 0 2 4 6 8 10 12 14 16 18 20
La Granja Project Community context - water
La Granja Project: Water context CONFIDENTIAL 12 Overview Water access and its management is recognised as a significant project risk by Rio Tinto Minera Peru (RTMP); La Granja project not unique in this regard - throughout Peru water access is a sensitive issue; Adoption of RT environment, water and community policies, standards, strategies inherent in project design; Upholding ICMM commitments; Due to the sensitivities about water technical solutions alone will not be sufficient to underpin RTMP s approach to water; Implementation of community acceptance strategy will be critical for success; Our progressive approach follows
Rio Tinto Minera Peru WATER STRATEGY Our vision for water management at RTMP is for the La Granja project to be recognised by communities, government, non-government organisations and peers as the leader in integrated water management in Peru s mining industry Improving Performance Objectives Improve our current performance to lessen our impact, sustain our licence to operate and increase community confidence in our ability to manage water Protecting the Environment Objectives Minimise our impact on the natural environment and downstream communities and maximise opportunities to enhance catchment health Community Participation Objectives To implement a community and stakeholder participation and engagement program to build trust and credibility on water issues Regional Development Design & Management Regional Water Management Objectives Support government partners to improve the regional management of water to support improved access and use of water resources Long Term Focus Objectives Plan our activities to support long term operations, community benefit and minimise water related closure legacies Objectives Outcomes Building Capacity Ensure that RTMP has the awareness, internal skills and capacity to instil a culture that recognises Community the importance of water in business Participation activities Watershed Protection Organisation is equipped to identify and manage water risks, supported by a high level of employee awareness of the importance of managing water Outcomes Outcomes Outcomes Outcomes Outcomes Improved understanding of improvement opportunities, decreased environmental footprint and increased focus on water management Final project plans and designs reflect and consider the importance of managing water and natural resources effectively. Communities and other stakeholders acknowledge and participate in the efforts of RTMP to facilitate comprehensive and transparent engagement Improved recognition and management of water resources in the district leading to improved access and efficiency Long term water management risks recognised and evaluated and factored into project designs to protect the environment and communities
La Granja Project Partnering with stakeholders Regional development strategy RTMP: build trust with communities in the districts, benefits of mine development are understood and welcomed; solid, transparent and trusting relationship with communities, particularly relating to water; establish partnerships, leveraging the resources and active participation of communities and other stakeholders of interest; Work together with farming leaders and district leaders (Ronderos) - strengthen their organizations, seek outcomes which promote the integrated management of water resources; Our focus: promoting integrated water resource management through community partnerships
La Granja: Integrated water planning - Querocoto Irrigation User committees - ALA Reorganization and creation Creation of a local Integrated Water Resource Management Group (IWRMG) Irrigation canals Improvement program focussed on crucial sections Rio Tinto - La Granja Social Fund IWRMG promoting integration to the Querocoto district Coordination Board 2012 2013 2014 24 users committees Irrigation infrastructure inventory 33 irrigation canals IWRMG includes representatives of: Water User committees Rondas Federation Central Rondas Municipality Technical Education Institute Querocoto Rio Tinto Fondo Social La Granja Develop IWRMG plan for the Querocoto District - ALA Written Acceptance by User committee Obtaining a permit for water use 3.5 km of canals repaired / lined
Progress small steps, building trust 24 water user committees formally recognised and authorized by the Chotano-Llaucano water authority; Paperwork filed with water authorities to obtain usage permits for all 24 water user committees; 5 water-use permits issued to date; Improving capability of water user committees; Improvements to crucial sections of existing irrigation canals in conjunction with the La Granja Social Fund; Integration of the Integrated Water Resources Management Commission of Querocoto to the District Roundtable: Attendees: representatives from the Irrigation user committees, Rondas, Municipality, Rio Tinto and Fondo Social La Granja
Progress small steps, building trust Community environmental monitoring committees Comite Vigilancia Ambiental Groups created voluntarily by residents of communities in the area directly affected by the Project; Monitoring through community environmental inspection; Innovative, gender equality, early warning awareness ; Respect of local culture and community structures; Partnering benefits Clear, reliable and harmonious relations among communities and the company; Early problem identification; Community skills development & training; Empowering women and community leadership; Active participation in the baseline studies - environmental impact study. Zero environmental conflicts to date;
Next steps Towards long term partnering Develop integrated water management plan for Querocoto; More CVAs downstream; Collaboration of the local water authority at the inauguration of the crucial section of the Succhuran Sigues Canal Strategic alliances with government to strengthen water management : Improved irrigation infrastructure; Detailed water sources inventory establishment; Further assessment of the quality, quantity and uses of water and water users; Understand water priorities in the local districts Water infrastructure co-funding opportunities; Promote the linkages of biodiversity conservation and water; Promote co-existence of communities, farming and mining; Continue community participation in the EIA process mesas de trabajo etc Inauguration of work in the crucial section of the Shanquigua canal - User Committee - Rio Tinto
CONFIDENTIAL 19 La Granja Project: Concluding La Granja is a Rio Tinto project full complement of Rio Tinto expectations and requirements is being implemented; Access to and management of water is a project critical risk La Granja is not alone in that regard; Community sensitivities about water are central; RTMP approach recognises the importance of water to the communities and the environment great opportunities exist; Community partnering to improve access and management of water integrated management of water resources; Small steps achieving positive outcomes and building trust; RTMP confident that communities, agriculture and mining can co-exist More work to do
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