MRF > Environment > UNEP Initiatives > Cyanide Code > Steering Committee Minutes

CYANIDE CODE

CYANIDE CODE STEERING COMMITTEE

Minutes of the 5h Meeting, December 3-5, 2001, held in Santiago, Chile

Present:

Steering Committee

Harold Barnes, Chair (Homestake Mining Co.)
Stephen Bailey, IFC/ World Bank
Julio Bonelli, Ministry of Energy & Mines, Peru
John den Dryver, Normandy (Australia)
Fred Fox, Kennecott Minerals Co. (USA)
John Gammon, Government of Ontario
Stephen Hunt, United Steelworkers
Juergen Loroesch, Degussa
Basie Marie, Anglo Gold (South Africa)
Michael Rae, WWF
Stan Szymanski, ICCA
Stephen Theben, European Commission

 

Secretariat

Wanda Hoskin, UNEP
Tom Hynes, ICME/ ICMM

 

Code Manager

Norm Greenwald

 

Observer

Paul Bateman, The Gold Institute

Regrets:

 

Glenn Miller, University of Nevada/ Sierra Club
Federico Villaseñor, Luismin (Mexico)

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Agenda Item 1
The Chair opened the meeting at 12:30 noon, later than expected due to problems that both Steering Committee members and presenters were having arriving at the meeting due to flight delays. However, with a slightly rearranged agenda, the presentations and discussion continued.

1.A Presentation by Jerome Simpson, Regional Environmental Centre for Central and Eastern Europe (Hungary)

Jerome Simpson spoke to us of who reviewed the draft Code and had some specific questions and areas of concern. Because these are highlighted in his presentation (attached), the specifics are not reiterated here.

1.B Presentation by Dr. Andrew Parsons, South African Chamber of Mines

Andrew Parsons talked about mining in South Africa and the South African Chamber's development of their cyanide Guideline which is intended to be complementary to the international Code (a copy of his presentation slides are also attached). One of the very interesting points is that all gold miners in South Africa had been spoken to their Code drafter. In addition, a copy of the South African Guideline has been given to every gold mine in South Africa (each mine signed that they received a copy) regardless of whether they were Chamber members of not. Larger companies which are Chamber members have been asked to mentor smaller gold mining operations as standards of all gold mining operations need improvement.

As an indication of government support, the Chief Inspector of Mines has issued a note to all gold mines recommending implementation of the cyanide Guideline and in the event of an accident, mines will have to give reasons why the Guidelines were not implemented.

In terms of the relationship between the international Code and the South African Guideline, essentially the international Code provides the overview umbrella with national guidelines falling under it and being more specific to local circumstances and then under that, will be company specific guidelines which are even more specific to their individual sites. The South Africa Guideline will be revisited after the international Code is finalized.

In the discussion following Andrew's presentation, several points were made, namely:

  • the process of developing the international Code has been dominated by northern, OECD countries yet non OECD countries produce 64% of the world's gold production;

  • the importance of having a good Code (as opposed to aiming for the perfect Code);

  • the Code must be workable (including the numeric standards) in remote locations in poor countries;

  • there is need to allow for flexibility and innovation in its implementation;

  • the 22 ppb for free cyanide is impractical and scientifically dubious;

  • verification and certification are key issues - the Chamber supports 3rd party accredited auditors;

  • education is important as government departments as well as SME's need education;

  • reinstate 10 ppm for HCN gas; and

  • an Index would help.

In terms of the Administering body, it should be independent of any one stakeholder group and should be internationally focussed (this points to the idea from UNEP for an International Mining and Minerals Forum or the initiative proposed as an outcome of the World Summit by the government of Canada).

1.C Presentation by Dr. Peter Lotz, MINTEK (South Africa)
Peter Lotz gave a technical presentation about the debates around criteria, measuring and monitoring of cyanide (presentation attached). Part of the information presented is that currently most labs cannot measure free cyanide in the parts per billion range, and there are only 2 methodologies to test for 22 ppb and, in South Africa, there is only 1 lab that can measure to such a low level. He also spoke of the fact that different methodologies have differences of detection and differences of quantification the consequences of which are that the numeric standards cited in the Code have to, in fact, be measurable and verifiable - that is, the Code needs to be able to be implemented in reality if it is to make a difference.
Peter Lotz offered the Committee several recommendations, namely:

  • establish methodologies to quantify WAD internationally in the mining world including in remote locations;

  • organize inter-laboratory tests (including NGO chosen labs) for round robin tests;

  • establish individual and overall confidence levels;

  • exchange practical experiences worldwide;

  • have at least 1 lab accredited for mining specific cyanide analyses in each mining country; and

  • periodically review best practice not pie-in-the-sky.

Agenda Item 2 Recent Cyanide Spills (Ghana and China)
Wanda presented some information on the recent cyanide spills in Ghana and in China and handed out a table, compiled by UNEP of cyanide spills from 1983-2001 (attached).

On 16 October, in Tarkwa, Ghana, there was a pipeline break resulting from a slipping toe of the heap leaching pad which broke a nearby pipeline. The mine is owned and operated by Gold Fields of South Africa. UNEP encouraged the company to post the environmental report of the accident that was filed with the Ghanaan authorities. The spill was reported shortly after the break occurred; a small nearby lake was impacted and, a 3rd party inspection found there were 54 dead fish; the 2 downstream villages were personally notified at 5:45 and water trucks made available in the villages until it was ascertained the water was safe to drink and the cyanide was neutralized in the water with sodium hypochlorite. UNEP calculated that 117 kg of cyanide was released into the environment.

On 28 October 2001, there was an unknown cyanide spill at a mine owned by Satellite Goldfields in Kubekro, Ghana. No information has been posted on the Internet and no information is available from the government authorities. However, due to the lack of news, combined with impressions from personal discussions, Wanda indicated that the cyanide spill was probably minimal although any spill results in further blackening the eye of the mining industry.

On 1 November 2001, there was a transport accident in Henan province, China when 11 tonnes of liquid sodium cyanide was released into a river. 500 tonnes of hypochlorite was used to neutralize the cyanide. The river was sealed off, detoxified and then opened again. A large fish kill was reported.

After the accident in Ghana, Wanda had asked the Code Manager to investigate with the technical experts the recommended means to handle cyanide spills into flowing water as there are impacts from hypochlorite and from dumping one chemical to flow after another chemical doesn't result in neutralization.

In the resulting discussion about how the Code might have prevented these (and other) accidents, the first point made was that the Standards of Practice relating to use, transport and emergency preparedness would have made a difference as the Code deals with monitoring and inspection, packaging for transport; and information about neutralizing spills. It was acknowledged that companies must not just add chemicals to free flowing water, and that companies will need to think about what kinds of accidents can occur and what the appropriate remedies are to follow. The first point also is that employees must be informed and educated about what to do in the event of an accident.

Agenda Item 3 Code Rollout, Administrative Issues and Promotion
Harold Barnes started the discussion about the Code Rollout, promotion and the importance of everyone being involved in making the Code known and in getting it implemented. Steve Bailey mentioned that for small companies, there might be some funds available that they could access related to training and other members also mentioned sources of funds for training. Wanda mentioned that UNEP will be able to mail it to governments via UNEP's Committee of Permanent Representatives (essentially UNEP's Board of Directors) and to financial institutions via its Financial Institutions Initiative.

The Code will be published in January, co-sponsored by UNEP, the Gold Institute and hopefully by ICMM as UNEP and ICME initiated the investigation into cyanide and mandated the Steering Committee's efforts.

A color sample of the trademark symbol was shown and Paul will be follow-up on the necessary steps to register this (hopefully it will become as well known and respected as that for Responsible Care).

Cyanide Code Logo

Harold is working with Winner Associates on the website development (www.cyanidecode.org) and a small mailer will be prepared for sending out, probably in January. Frequently asked questions and answers will need to be prepared and posted on the website. Where applicable, information needs to be available concerning cyanide related initiatives being undertaken by other organizations (eg UNEP and ICOLD).

Agenda Item 4 Steering Committee Member Perspectives
Information was shared during the round table, as follows:

Steve Hunt: labour has reviewed the Code and it looks good from their vantage point.

Fred Fox: Kennecott did a pilot test of the Code and they found there was room for improvement in aspects of their operations vis-à-vis the Code and these areas are being addressed.

Basie Marie: Anglo Gold also pilot tested the Code and although a significant portion of their cyanide bill is going into improvements, they are not there yet. There is a relationship between the international Code and the South African Guidelines, which, since it was launched has lost its initial momentum. The wait and see attitude is really not helpful. He expressed some concern that the smaller companies in SA may not want to sign up to the international Code (ie just sign on to the SA Guidelines). However, since the SA Guidelines have been launched, he has been approached by the Press about what is going on internationally.

Norm Greenwald: 7 mines pilot tested the Verification Protocol and although they found administrative problems (i.e. repetitious in places) they discovered interpretation issues and areas where clarification was needed. In response, there has been clarification and some consolidation of the text to make it more user-friendly.

Juergen Loroesch: the Code will lead to improvements for the producers and transporters as well as in the mine site operations. The Code will strengthen global emergency response and this is also needed.

Michael Rae: This Code was discussed at a recent NGO meeting and participants were "underwhelmed" by draft 7. Most NGO's are concerned about the scope and especially how issues like the "home" for the Code and 3rd party verification will be operationalized. Will the Code prevent another Baia Mare accident? There remains concern: about the silence of the suitability of heap leaching in areas of high rainfall; community issues; host governance; industry-community issues; accreditation of auditors (i.e. technical competence and probity). Essentially, NGO's are reserving judgement until they see results.

John den Dryver:A meeting in Perth reviewed the Code and there have been 2 trail runs. Normandy has spent a lot of time in management development and is reviewing all its sites. A lot of work will be required to prepare emergency plans and undertake training.

John Gammon: The Code is a good product but general knowledge about it is very low as is mining association knowledge; this is of concern. For governments, they are asking if this is relevant for them as they think that large companies are already doing this but there is concern about SME's. Implementation will produce the real and needed results and candid communications will be important.

Tom Hynes: Although ICME has evolved into ICMM, there is a question as to what ICMM will do vis-à-vis the Code although he will recommend that ICMM support it and co-publish it. The Environment Committee has deisgnated work of tailings for the next 2 years but this has to be formalized.

Wanda Hoskin:UNEP DTIE circulated the Code widely to participants of: the UNEP Australia Regulators Workshop, the APELL mailing list; other contacts; and posted it on the MRF wevbsite (www.mineralresourcesforum.org). It was also sent to the UNEP Chemicals Unit for comments (which were received). UNEP sees the implementation of this Code as an important step forward and meets the UNEP-ICME mandate to:

  • develop a Code that would significantly improve performance in cyanide management of large, medium and small gold miners;

  • drive improved environmental performance through high standards of technology, management and control; and

  • provide the public with confidence that their expectations were being addressed. Compliance with the Code will be certified by a 3rd party auditor.

Harold Barnes: Homestake has undertaken audits of both a heap leach and autoclave project to see how the Code would work and pilot tested the Protocol to determine the level of evidence required. This is a workable Code that will make a difference.

Paul Bateman: The IAG has continued to meet and all the feedback was given to Norm Greenwald.

Steve Bailey: The draft Code was given to key World Bank and IFC people for their review.

Stephan Theben: the draft Code was circulated in the European Commission and to Member States and the EC has essentially 5 critical issues to be addressed in order to have its support: the nature of the Administering body; loss of certification; WAD cyanide levels; decomissioning and scope of Code.

Stan Szymanski: ICCA has publicized his presence on the Code Steering Committee and he has had requests for information. He has circulated the Code to numerous people and has received some concerns about auditing and legal issues. He also received some comments about issues of liability and cost of liability insurance and areas of legal action but this is focussed mainly in the USA. [During discussion Michael Rae mentioned that, for the Forest Stewardship Council issues, there were several certifying companies in the US and they have performance standards to audit against and perhaps some of these questions could be posed to them.]

Juergen Loroesch: Newmont had contacted DeGussa to help them with trying to implement the Code as there may be concerns over language especially between the company and the cyanide producer (there may be a liability problem when the mining company looks at a producer's operations. As a suggestion, the Administering Body could audit producers and have a list which then mining companies could refer to (rather than having each mining company look at their producer's operations). There is a need to have an audit trail. He gave the Code to DeGussa's office in Germany who pointed out 2 issues: in a risk analysis, what is the weakest point and, in case of an accident in open water, one must not dump in more chemicals - the Code needs to be helpful in this matter.

Julio Bonelli: presented the draft Code at last two mining conventions but received no comments. In Peru, the government will change audit procedures next year. Time will be needed to implement Code.

Agenda Item 5 Review of the Paris Workshop's Expectations for the Code

Harold Barnes reviewed the 7 key points for the cyanide Code as given from the Paris
Workshop (May 2000), namely that the Code should:

  • establish high standards for the use of cyanide in gold mining

  • drive improved performance

  • provide the public with confidence in improved operations

  • be a voluntary industry Code

  • promote, encourage and invite action by industry

  • let others regulate, and

  • ensure that implementation improves performance in a meaningful, credible and publicly visible way.

Agenda Item 6 Recommended Changes to Draft 8

Norm Greenwald went over all the comments received on the draft in an organized way talking about both the Principles and Standards of Practice, the Preamble, Scope and Code Management.

The Committee discussed all issues and comments received and made a decision on what will be in the final draft. Points were discussed from both a mining operation point of view and how an auditor would ascertain the Standards of Practice. In all cases, a consensus decision was reached and Norm is making final changes to the Code.

Agenda Item 7 Presentation by Tomas Astorga, Government of Chile
Tomas Astorga was invited to give a presentation to the Steering Committee on the 2nd day about mining in Chile and the use of cyanide. Key points included:

  • mining represents about 10% of the GDP although in the Northern regions this percentage can reach 50% of the GDP of that region

  • mining represents 22% of the value of exports

  • of the $8.4B mining exports, $7.3B is from copper

  • investment in the past decade is approximately $12B although this investment is expected to decline but probably not less than $700-800M.

  • direct mining employment is 85,000-100,000 with an indirect:direct ration of 3:1. He pointed out that in the Northern region, there is very little other employment

  • while Chile has 35% of the world copper reserves, it also mines gold, nitrates, iron ore, and lithium

  • a new mining agreement with Argentina was signed in 2000

  • Chile also has y medium and small scale mines - of the 800 mining companies, 25 are large, 5-10 are medium and the remainder are small - and these are the most typical operations

  • SONAMI is the national mining enterprise and they buy product from the SME's and sell it for them. They also undertake technology development and exploration. They also provide a stable price - considered a loan when international prices are low and these are repaid when the price is high (for copper only)

  • With respect to policy matters, there is a new permitting system which has been streamlined

  • Chile is active in CAMMA (mining Ministries of the Americas), APEC GEMEED (the Group of Experts for Mineral and Energy Exploration and Development), International Copper Study Group and other international organizations

  • The government is studying new trends and new applications of base metals

  • He explained about: the Ministry of Mining, Cochilco (Chilean Copper Commission), Sergeomin (national geological survey), CIMM (the national mining and metallurgy research centre), CODELCO (the state copper mining company) and ENAMI.

  • With respect to gold, most gold produced in Chile is the result of smelting as a by-product of copper

  • SME's tend to use cyanide

  • Artisinal miners - range between 1000-8000 miners in gold (most use mercury) and coal (about 150)

  • Biggest problem of cyanide is in tailings ponds

  • The Chilean government will encourage the implementation of the international cyanide Code

  • A new National Centre for Cleaner Production started last year

Agenda Item 8 Sergio Chavez, General Manager of Homestake in Chile
Sergio Chavez came and spoke to the Committee about SME's in Chile. He has had personal experience in all aspects of the mining industry in Chile.

  • SME's don't have many resources so they can use all assistance possible to implement a Code such as this one

  • The number of SME's fluctuates widely depending on the commodity price. Prices are now low so there are fewer miners than in the past. SME's can average 2-4 people or a family per site

  • The typical Chilean mill grinds ore - it was originally made of stone with a steel belt - most use mercury and then squeeze the mercury out of a cloth bag

  • Education is very important - it takes time but the training process must start

  • Cyanide is mostly used by larger companies

  • Code needs to be made easily available, in Spanish (the Code will be translated into Spanish)

  • Chile has a good system of technical schools and the Code will be a very important addition to their curricula

Agenda Item 9 Code Administration
There was discussion about the logo - this will be registered by the Gold Institute.

Cyanide Code Logo

Harold gave a presentation on The International Cyanide Management Institute.

The Organization is seen as:

  • Not for profit/tax exempt

  • Governed by a voluntary Board of Directors

  • The Managing Director serves on the Board + 1 part time employee

The Board of Directors Responsibilities:

  • Approves operating procedures

  • Undertakes Code Reviews and Revisions

  • Miner Certification process review

  • Auditor Certification process review

  • Dispute resolution process

  • Establishes fee structure

The Managing Director

  • Manages the activities of the Institute in accordance with established procedures

  • Regularly reports to the Board of Directors on activities and non-routine events

  • Accepts comments on the Code and identifies potential revisions

  • Auditor certification process

  • Identifies funding sources and methods

The Staff Responsibilities are to:

  • Administer the web site

  • Respond to information requests

  • Maintain records and

  • Certification cycle notices

Potential Funding Sources include:

  • Fees from signatories and certified mines, supporters and auditors

  • Grants - foundations and governments

  • Contributions from producers, mining companies and mining associations

  • Patents/new technologies - license use

The Chair asked the Committee about how to go forward as there remain several details which need to be worked out. Harold will be sending a letter to UNEP and ICMM, who mandated the Code, with a proposal for a separate Administrative Body as well as indicating other related issues that came up during the meetings and which will need addressing in the future. Two points of major concern to members of the Committee, during discussions, were the home for the Code and how non-compliance with the Code will be handled. Without an Administrative Body established to implement the Code's audit provisions, the Code's effectiveness was questioned.

Finally, in a round table discussion, each of the Committee members indicated to whom they might be willing to send letters to encourage recognition of and implementation of, the new Code, as ultimately only significant reduction in the number of cyanide accidents will "prove" the benefits of implementing the Code. (something is missing here)

Agenda Item 10 Closing Remarks
In closing, John Gammon, on behalf of the government members of the Committee (Peru, EC and Canada) offered sincere words of thanks -

  • to UNEP and ICME/ICMM for initiating this exercise;

  • to Paul Bateman for his fund raising efforts with the Gold Institute and industry to support hiring a Code Manager and to enable the Code to be developed to this point;

  • to Norm Greenwald for his skill in drafting this Code, and

  • to the Chair, Harold Barnes, someone who cares deeply about making improvements in the use of cyanide in gold mining, who has worked very hard to ensure that the coverage of the mandated issues has been thorough and fair.

Finally, John said, on behalf of the Committee that the Committee endorsed and empowered him to carry the final issues forward to UNEP and ICMM, making whatever proposals he deemed appropriate.

The Chair did a round table and asked each of the Committee members to give their assessment of the Code in a grade as measured against the mandate the Committee was given. The roundtable indicated a consensus grade of A (excluding the issue of a 'home' for the Code). Comments included:

  • Code has high standards for the use of cyanide in all areas except decommissioning

  • Standards of Practice for production is also applicable to producers

  • People were impressed with the commitment of making the Code work for everyone including workers

  • Good science and good use of plain English

  • A rewarding experience and the bar has definitely been raised. The fact that some big companies will have to spend money to address Standards of Practice is an indicator of the high standard

  • An excellent road map - the challenge is to get 3rd party verification and there is a need to address the other issues raised

  • The process has proved workable and meaningful - it could be a model for other Code development; appreciated the tough but non-combative work

  • Originally doubted that this could be done in 1 year but all are to be commended for their hard work to achieve meaningful results. The Code indeed represents a high standard.

  • An excellent product in a timely way.

  • Product has guts and meat - very useable although not all the man-in-the-street issues addressed. It may be too challenging for small and medium operators but even they must try and improve. The education component of the Code is very important.

  • Liked hearing the various presentations including the mentoring example for the SA Guidelines.

  • This is the first multistakeholder international voluntary Code developed. Implementation is important and this will provide a model for other codes.

  • The Code will drive continuous improvement and will improve performance.

  • The public will be able to have confidence in this Code.

  • The balance between environment and occupational safety and health will make a difference in South Africa

  • The Code has already started making improvements

  • The challenge remains with smaller companies

  • There is a need to drive improvement and other issues will need to be dealt with in the future.

  • The Code is a Guide to Good Practice in cyanide and when implemented, will provide the public with confidence.

  • There will be a positive trickle down effect.

  • All stakeholders including local communities should have a copy of the Code.

Agenda Item 11 Code Roll-Out/Promotion/What's Next
Some discussion took place about the possibility of a Press Conference in January, the letter to UNEP and ICMM, the website and how to garner support to by and for governments and industry.

Norm Greenwald will remain for awhile to finalize text, circulate to Committee and for the legal review. The Winner Associates contract will be downsized and will become more focussed on the website.

The Chair expressed his warm personal appreciation to the Group. He thanked everyone for their hard work and wished everyone well in their future endeavours.

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