The Asia Century.Chair: Robyn Leeson, Director, Net Balance Foundation; Member, GRI Stakeholder Council
Amanda Keogh, Sustainability Manager, Fuji Xerox Australia Kane Hardingham, Environment Manager, Woolworths LimitedJames Porteous, Communications Advisor, MMG
Members of the Minmetals Resources Limited group of companies (HKEx:1208)
A SUSTAINABLE PATHWAY
China Minmetals Corporation (CMC)And
Minerals and Metals Group (MMG)
‘The Asia Century’
GRI Focal Point Australia conference
27 March 2012, Melbourne
James Porteous
MMG and CMC – A SUSTAINABLE PATHWAY
• MMG majority shareholder (72%), China Minmetals Corporation, only Chinese company in United Nations Global Compact LEAD program
• MMG is headquartered in Melbourne
• Listed in Hong Kong under MMR
• Mining in Australia, Asia and Africa
• Primary products include zinc, copper, gold, silver and lead. International sales.
• Major growth projects in Australia, Canada and now the DR Congo
• Exploration in Australia, Canada, the USA, Chile, Indonesia, Africa and Jamaica
• MMG revenues hedge CMC costs
Anvil Mining
China Minmetals Corporation
China Minmetals Non-ferrous
Metals
Minmetals Resources
MMG
Public shareholders
72% 28%
2010
2012
State-owned enterprise
Legend:Development / explorationAvebury
(Australia) Nickel (development**)
Dugald River (Australia) Zinc/lead/silver (development)
Izok Lake (Canada)
Zinc/copper/lead/silver (development)
High Lake (Canada)
Zinc/copper/lead/silver (development)
Exploration areasAustralia, Indonesia, Canada,
Jamaica
Bauxite exploration Jamaica
ProductionSepon (Laos) Copper/gold
Century (Australia) Zinc/lead/silver
Golden Grove (Australia) Zinc/copper/lead/gold/silver
Rosebery (Australia) Zinc/copper/lead/gold/silver
Kinsevere (DR Congo) Copper/gold
Operating assets
Development assets
Exploration areas
** The Avebury operation is currently on care and maintenance.
4
MMG - OVERVIEW OF ASSETS
CHINA MINMETALS CORPORATION (CMC)
• Established 1950, one of China’s largest and most awarded state-owned enterprises. Over 20 years operation in Australia
• Engaged in the development, production, trading and integrated services of metals and minerals products. Also finance, real estate, logistics and technical R&D mining and metallurgy
• Revenue >US$39.1 billion, 168,000 employees
• Joined the Global Compact Environmental Stewardship Project consisting of only 20 members worldwide in Oct., 2009
• Endorsed Caring for Climate Signatory in May, 2010
• Became founding member of Global Compact LEAD in Nov. 2010
CMC – SUSTAINABILITY DRIVEN
‘Thinking Global, Acting Local’
• CSR integrated across all facets of operations
• High sensitivity to achieving best-practice CSR
• Commitment to local community investment
• Proactive, broad stakeholder engagement
• Fundamental to operational success
2011 – MMR Australian sustainability report
> First Chinese company sustainability report launched in Australia
> A demonstrable lead for other Chinese organisations in CSR
> Increase international understanding of CMC’s CSR commitments
Eternity; Tenacity;Radiance;
Transparency
‘Building a responsible Minmetals and co-creating a bright future’
7
MMG - GLOBAL ENGAGEMENT
• First Chinese-controlled full council member of International Council on Mining and Metals (ICMM)
• GRI engagement through ICMM’s 10 Principles. ICMM alignment process
• Member and current chairperson (Andrew Michelmore) International Zinc Association
• Regional mining and metals association membership – Minerals Council of Australia, Mining Association of Canada.
• Global Reporting Initiative A+ Sustainability Reporter
• Engaging international community partnerships – UNICEF Zinc Saves Kids
Fundamental integration of CSR across strategy and operations – seeking leadership opportunities. Proactive - not reactive.
MMG - OUR STRATEGY
Build a major international upstream diversified base metals group…
• Top 3 of mid-tier resource companies within 5 years
• Outside China. Global Sales
• Mining. First stage processing – not smelting
• Copper, Zinc and Nickel, Bauxite/Alumina
…through internal exploration and development opportunities as well as M&A.
Committed to being the next generations’ leading global diversified base metals business, a standard bearer for CSR integration, an operator and employer of choice.
“We must leave an area better off than when we arrived - that is the challenge for all mining companies.” Andrew Michelmore, CEO, MMG
MMG’s CSR – ADVANTAGES OF CMC OWNERSHIP
• One major shareholder – reduces usual shareholder pressure on profit before CSR performance, allows longer effort timeframe in CSR results
• Internal competition for investment capital – incentivises good behaviour
• Sensitivity to perception of Chinese operations means CSR investment and willingness to learn fast
• Capital for CSR and operational investment more available
• China (and CMC) also have committed foreign aid funds
EMBRACING A BROADER PERSPECTIVE
Take home points
• Our current CSR frameworks (such as GRI) are largely western, European-centric in approach – there are some fundamental cultural challenges for Eastern organisations in participating
• Eastern nations and companies have a time and development gap to bridge as well. However, they bring valuable new perspective, approaches and learning to CSR thinking
• Eastern and Chinese companies are not all the same – as is the case for western ones
James PorteousCommunications Adviser, [email protected]
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