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“We know the Ring of Fire’s future will not be determined within the region
itself but in southern Ontario, where the majority of the political ridings
are,” she noted. “Or it will be decided [in Ottawa] to the extent that the
federal government is involved.”
“So we must win the hearts and minds of those people sitting at home because
that’s how your project is going to be approved,” she said, stressing that
meaningful CSR and engagement with locally affected communities was one of
the best methods of doing this. (Kate Lyons)
TORONTO (miningweekly.com) – Opposition to the extractive industries continues to grow in Canada, with increasing influence on decisions that surround project approval, delegates at the Canada-Southern Africa Chamber of Business risk mitigation and corporate social responsibility (CSR) seminar were told last week.
“The world of the stakeholder is large. From the comfort of a home heated by natural gas or cooled by electricity, and probably using a device laden with metals, a person can discover whether they are ‘against’ an industry,” Goodmans partner Kate Lyons said.
Opposition can develop among thousands of people living many kilometres away from a mining region, their opinions shaping and influencing project outcomes. Lyons highlighted northern Ontario’s Ring of Fire as an example.
“We know the Ring of Fire’s future will not be determined within the region itself but in southern Ontario, where the majority of the political ridings are,” she noted. “Or it will be decided [in Ottawa] to the extent that the federal government is involved.”
“So we must win the hearts and minds of those people sitting at home because that’s how your project is going to be approved,” she said, stressing that meaningful CSR and engagement with locally affected communities was one of the best methods of doing this.
However, successful CSR in Canada depends on effective consultation, with particular reference to constitutional and environmental issues, the latter heavily informed by the Canadian Environmental Assessment Act, 2012. “The new Act has the opportunity for joint panels for provincial and federal examination of environmental matters,” Lyons said.
But a panel’s recommendations are nonbinding and ultimate decisions on project approval reside with the Minister. “A panel’s mandate [only] requires it to weigh the evidence and to present a balance sheet accounting for its associated recommendations,” Lyons explained. “The Minister can still do whatever he or she wants.”
Lyons underlined the importance of aboriginal engagement and cited the recent case Grassy Narrows First Nation versus Ontario (Natural Resources). “The court decided that the Province of Ontario could take up land in a treaty area without having to consult the federal government,” she noted. “But the case is also important because of its clear commentary that consultation must be undertaken.”
In addition, the commentary stressed the need for accommodation. “But accommodation is almost redundant as I have to believe that consultation must automatically include accommodation. [Consultation] can’t simply just mean sitting and listening,” she said.
“Some companies might say: ‘But we’ve got a benefits agreement and done the consultation work. They told us what they want and we’ve got an agreement on the table’. Well that’s never going to work,” she said.
“A benefits agreement is not a commercial arrangement that business people are typically aware of and engagement is much more akin to a marriage contract – a marriage contract with someone who hasn’t agreed to marry you at the start,” she quipped.
Getting the right CSR team in place and giving them the necessary support is vital. “Ensure your officers have the sufficient authority and resources to establish and maintain all elements of the CSR programme, including training and documentation,” she said. “Finally, require your officers to report regularly to the board. Ensure your senior team is aware of and can respond to issues as they arise.”
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