Sunday, July 18, 2010

GOOD MINING PRACTICE : “A CONCEPT AND ITS IMPLEMENTATION”

INTRODUCTION

Developing a civilization means development of a civilized society. It must fullfill a number of important principles, i.e. justice, integrity, truth, kindness, beauty and peace. Sustainable development of civilization may be defined as a development concept towards the well-being of present generation without having to sacrifice the capacity of future generations to satisfy their needs. In mining or mineral industry this concept emphasizes the issues of democracy, justice, and equity which must involve inter-generation.

Good Mining Practice (GMP) is the development of good mining activities, criretia, norms and principles so that the utilization of mineral resources can provide optimal benefit and minimal negative impact. This include licensing, mining techniques, safety and occupational health, environment, relation between upstream and downstream, conservation and added value and development of the local community in the framework of existing laws, regulations and standards.

MINING IS SUSTAINABLE OPERATION. Efforts in finding new deposits and processing technology progress have been successful in increasing mineral reserve which has otherwise been considered as marginal deposit to be exploited. GOOD GOVERNANCE as a part of the Implementation Plan Document of Johannesburg Summit is the core of SD, not only for domestic institution but also even for regional and global institutions. To maintain and encourage mining activities as well as to obtain better social and economic benefits in developing mineral resources in Indonesia, a concept on Good Mining Practice should be encouraged.

THREE PILLARS OF SUSTAINABLE DEVELOPMENT

1. Economic Sustainability
2. Social Sustainability
3. Environmental Protection

Increasing efficiency and sustainability of natural resources utilization and production process
Decreasing natural resources (environmental) degradation and wastes/pollution

Good Governance

Three Components


Three Pillars


CONCEPT OF GOOD MINING PRACTICE


COMPANY /INVESTOR
a. Profit; ROI
b. Production, efficiency
c. Minimize Risk
d. Legal certainty
e. Security/stability/politic
f. Image

GOVERNMENT
a. Compliance with law
b. Conservation; added value; ROA
c. Zero accident
d. Environmental protection
e. Community/regional dev.
f. Sustainability of the dev.

CHARACTERISTICS OF GOOD MINING PRACTICE

a. Committing the existing laws and regulations
b. Having a comprehensive and holistic planning of mining development based on applicable standards
c. Applying the good and correct mining technology based on acceptable standard technique
d. Applying the principle of efficient and effective in the mining operation
e. Applying the principle of conservation, value added and upstream-downstream linkage
f. Concerning about occupational safety and health
g. Applying the principle of environmental protection
h. Paying attention and supporting program of the local community empowerment
i. Providing a rational profit to company
j. Achieving a principle of sustainable development





REQUIREMENT FOR IMPLENTATION OF Good Mining Practice

a. CODE OF CONDUCT
* A code of conduct in the form of standard and guidelines acceptable to all concerned is required.
* The reference will be the code of conduct for field workers or implementers (industry and company) and for the apparatus and supervisors (mine inspector and other authorized personnel).
* Standard and guidelines should be prepared through standardization activities by taking into considerations the specific characters of mining activity.



Figure 2
Concept of General mining Standards

b. HUMAN RESOURCES
* The quality and integrity of human resources determine their output. Human resources (in government, industry, and community) are required to be eligible, capable and consistent in carrying out their duties. Their should have code of ethics to carry out duties.
GOOD GOVERNANCE
* Synergy as well as partnership, active role is essential for achieving success.

c. EQUIPMENT AND TECHNOLOGY
* Basic prerequisites for the application of Good Mining Practice
* Without adequate equipment and technology, Good Mining Practice will only become a concept on paper only
* Equipment and technology improve efficiency and minimize impact to the environment
* Cost effective of mining tech (include its environmental management) is suitable and compatible with local condition and its supporting equipment could be easily obtained locally.

d. LAW ENFORCEMENT
a. Consistent internal and external law enforcement and control is an effective mechanism in application of a concept
b. Incentive as an appreciation and disincentive for ignorance or violation will effective to encourage mining industry to operate within the corridors of laws and standard principles which has been agreed by all.

CHALLENGES
Domestic
a. Forestry issue
Law No. 41/1999, article 38 clause 4: open pit mining is prohibited in protected forest (CONSTITUTIONAL COURT HAS DECIDED THAT LAW NO.19/2004 IS ACCEPTED TO ALLOW MINING ACTIVITIES CAN PROCEED THEIR ACTIVITY)
b. Legal issue
Recent legal condition: Lack of good inter-sectoral and inter regional government coordination, VAT, illegal mining
c. Effect of regional autonomy implementation
Regional autonomy has not been carried out well (there are some distortions), due to lack of regulations or guidelines for the implementation.
d. Globalization
Every change in policy or investment condition, both domestic and overseas, will immediately have its global influence. ACT LOCALLY BUT THINK GLOBALLY should become our motto in mining industry.



LAND UTILIZATION IN INDONESIA BASED ON DIFFERENCE ACTITIVIES --- Year 2002



Process of Mine Closure Planning

STRATEGY

a. Inter-stakeholders coordination and consolidation
b. Efficiency of services
c. Regional autonomy development
d. Improvement of guidelines, standards, and criteria
e. Promotion of mining investment
f. Public relation.

CONCLUSION
a. Mineral resources in Indonesia have a huge potential to accelerate regional development by opening the isolation and followed by other investment growth and by providing employments
b. Mining industry can contribute substantially to sustainable development
c. Mining industry should be constantly implement Good Mining Practice concept which is basically emphasized not only to the economic aspects but also to the quality of best practice standards of health, safety and environment performance.
d. A policy for mining product management is required to ensure the transformation of benefits that can be enjoyed by the society and not only limited to the life of mine.
e. The key factor to achieve the objective of sustainable development in mining is the conscience of the stakeholders: business community, central government, regional (local) government and other stakeholders (society, university, NGO).