Roundup: Expert calls for improved mining practices in Mekong, beyond

The mineral resources of Southeast Asia's emerging economies are plentiful, but mine management practices may make all the difference in maximizing returns for operators, host nations and local communities alike.

That is the message taken to Vietnam, Cambodia and Laos this week by mining engineer and academic Associate Professor Dr. David Laurence, director of the Sydney-based Australian Center for Sustainable Mining Practices at the city's prestigious University of New South Wales.

Addressing audiences of government, industry and related sectors in the capitals of the three neighboring nations over a week-long mission to the region, Laurence highlighted the importance of introducing lessons learnt from around the world and applying them to local contexts at all stages, from exploration to closure.

He said evidence showed too many poorly-managed mines around the world were being forced to close prematurely, reducing the returns to all stakeholders and potentially leaving a difficult or dangerous legacy with the potential to overshadow the socio- economic benefits of the sector.

The visit, co-hosted by Australia's national external trade organization Austrade, is being held to promote a series of 14 industry-focused handbooks on sustainable approaches to multiple aspects of mining with case studies from around the globe.

Speaking to Xinhua in Vientiane, Laurence highlighted the role of safety and resource efficiency, in addition to the so-called triple-bottom line of economic, environmental and social aspects to maximizing sustainability in the extractives sector.

Conscious and active planning and implementation for every stage of the mining life cycle from pre-development to closure was essential to maximize sustainability and returns, he said.

"Sustainable mining practices have a lot of dimensions. While the focus in the past has understandably been environmental, more recently it's been more on the side of community engagement. We also need to focus more these days on the economic development aspect of this engagement," Laurence said.

A positive record and stakeholder engagement had potential to pay off, not only through maintaining a so-called "social license to operate" but also enhancing the company's reputation and opening up new opportunities.

Laurence offered the examples of MMG's Sepon and Phu Bia's Phou Kham operations as examples of so-called leading practice in Laos with potential to leave a positive legacy beyond the life of both mines.

Both mines are operated by established Australian companies enjoying a majority Chinese ownership.

He also cited the increasing supply of affordable power in Laos, much produced through hydroelectric generation, as allowing the nation to undertake value-added production and processing, such as that being undertaken on copper, mined at Sepon.

Natural resource-rich Laos has a long relationship with mining, with archeological evidence of gold and copper extraction dating back centuries.

The relationship with the extractive sector has experienced complications more recently, with compliance issues relating to more than 50 projects cited in the imposition of a 4-year moratorium on new mines in 2012, which is due to expire next year.

Laurence said the temporary suspension in Laos and the cyclical downturn in commodity prices globally, provided an opportunity for the nation's regulators to embed sustainability principles in preparation for an upswing of investor interest later in the commodity price cycle.

He said while international mining companies bear a responsibility to take a lead, state regulatory input remained vital. "To get sustainability in the mining sector, it can't be just left to the industry alone," he said.

"Governments have to set the framework. One of the important things is to have clear rules and regulations applied and implemented consistently," he added.

"Companies need certainty so if they explore and find something they are able to develop. They're looking for a stable fiscal regime so again the rules aren't changed once they commit," Laurence said. Endi