Rio Tinto Land Use Agreement

The Centre for Social Responsibility in the Mining Sector has developed a guide to the production agreement with indigenous groups, including useful case studies of successful mining development and resource development projects in indigenous countries. “It is also a real profit share between the company and traditional owners in activities on their land.” All measures related to an agreement and its implementation are called the “agreement process.” These include consultation, negotiation, ratification, implementation, monitoring, evaluation and verification. The agreements contain provisions defining who members of the community should be involved in the agreement process and consulted on opportunities and opportunities. We know that mining can be complex and that is why we want to explain our business and processes in a way that is accessible to a wide range of stakeholders. We make sure to engage culturally and communicate clearly and openly. We also strive to minimize our effects through careful waste management, including mining waste such as waste, slag and depots, as well as non-mining waste, such as used oils and office waste. For example, for our Oyu Tolgoi plants in Mongolia, 40-50% of waste is diverted from the waste management centre through reuse and recycling programs. Not only does this reduce the amount of material that arrives at the landfill (which extends the life of the waste management centre`s landfill cells), but it also supports Mongolian communities and industries. Used oils are treated as lubricants for reuse, plastic waste is recycled into plastic pellets for other products, and plastic pellets are processed into packaging and medical containers. The final product of cooking oil from kitchen waste is cleaned by a local company and used for soap making. Certain types of agreements are specific to certain jurisdictions. Details of different types of agreements and contracts in different legal systems – Australia, Canada, New Zealand and South Africa – can be found on the website of Agreements, Treatys and Negotiated Settlements, an initiative of the University of Melbourne supported by the Australian Research Council and Rio Tinto. Mongolia`s Mineral Law (Article 42.1) requires mining and mining licensees to “work in cooperation with local administrative authorities and enter into agreements on environmental protection, demining and infrastructure development issues with respect to mine development and job creation.” Banjima Native Title Aboriginal Corporation President Slim Parker said the people of Banjima confirmed that the agreement with Rio Tinto had lasted many years and required considerable effort on both sides.

Ultimately, agreements are a mechanism of accountability and provide businesses and communities with reciprocal performance indicators covering all stages; exploration to project planning and operations, even after closure. These agreements, which are often the result of long-standing commitments, not only document reciprocal commitments that are both enforceable and verifiable, they also codify the “how” – the behaviour that our employees and contractors expect. They help reduce the potential impact of a project on communities and their environment.