Sustainable Development and the Minerals Sector ù Leaving a Lasting Legacy

The minerals industry has enormous potential to positively contribute to sustainable development and many leading companies have concluded that their long-term success is directly linked to their ability to leave a lasting positive legacy. While there are many examples of success, there have been failures as well and much work has been done in recent years to define the role of the minerals industry in sustainable development and identify the key elements for success. In the past, our sector could point to the taxes and royalties it paid, the exports it generated and employment it created and felt confident that its contribution would be recognised and duly acknowledged. This is no longer the case. Critics of the industry have highlighted resource-rich countries that have failed to capitalise on their resource wealth and have arguably lower standards of living than their resource-poor peers û the æresource curseÆ hypothesis. Recent research has done much to clarify the factors that contribute to a countryÆs success or failure and all stakeholders in the industry now need to include these learnings in their approaches going forward. We know that our long-term success relies on embedding a company- wide approach to sustainable development into all aspects of our business operations. In this paper we highlight BHP BillitonÆs experience in the development and implementation of policies and systems designed to enhance our contribution to sustainable development. We detail the business drivers for excellence in this area and the key external codes and initiatives that have shaped our approach. The values-based BHP Billiton Charter, Sustainable Development Policy and associated Health, Safety, Environment and Community (HSEC) Management Standards are central to our approach. Implementation is reviewed through our HSEC audit program. One area in which we have placed particular emphasis is our approach to community development. BHP Billiton has a corporate target to contribute one per cent of its pre-tax profit on a three year rolling average to voluntary community programs. As our profit stream has increased with the minerals boom this is approaching an A$100 million commitment. In our paper we detail how we are working to ensure we maximise the value of this contribution for our communities and our shareholders.