SUSTAINABLE

MINING CHARTER
PART B
Implementation Roadmap
and Guidelines
/ Table of Content
LIST OF FIGURES 2 3.4 Mine Plan 14
LIST OF TABLES 2 3.5 Mine Sustainability Goals Development Framework 14
1. Introduction 3 4. Target Setting and Intervention Development 16
1.1 Purpose of Part B of the Charter 3 4.1 Target Setting 16
1.2 Sustainability Implementation Road Map for a Mine 3 4.2 Development of Interventions 17
2. Understanding Site Conditions and Maturity of Mine Practices 5 5. Development of Execution Plan 18
2.1 Understanding Site Conditions 5 6. Review and Reporting 19
2.2 Understanding the Maturity of Mine Practices 8 6.1 Review 19
3. Mine Sustainability Goals Development 9 6.2 Reporting 20
3.1 Mine-Specific Factors 10 ANNEXURES 21
3.2 Corporate Sustainability Goals 11 Annexure 1: Self-Assessment Questions for each Thematic Areas 22
3.3 Local Community Needs 12 Annexure 2: Sustainability Scorecard 29
Reference 31

/ List of Figures
Figure 1. Sustainability implementation road map for a Figure 4. Stages of understanding and addressing local
4 12
mine community needs
Figure 2. Steps for conducting a baseline study 7 Figure 5. Steps in developing a mine sustainability
15
Figure 3. Factors affecting mine-level sustainability goals framework
9
goals Figure 6. Target-setting process 16

/ List of Tables
Table 1. Self-Assessment Questionnaire on Land Table 3. Risk Opportunity Matrix 13
8
Management Table 4. Framework for Developing Interventions 17
Table 2. Hindalco Corporate Sustainability Goals across Table 5. Suggested Review Architecture 19
11
Thematic Areas

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1. Introduction
1.1 PURPOSE OF PART B OF THE CHARTER

Part A of the Sustainable Mining Charter provides the frameworks and Part B has been developed to help ensure the effectiveness of the Charter
approaches which can be used by mine teams to improve sustainability by offering implementation guidance to mine teams. It provides mine teams
performance across the seven thematic areas : with a sustainability implementation roadmap, which provides guidance on
identifying mine level sustainability goals, designing interventions across
SUSTAINABLE WASTE BIODIVERSITY the seven thematic areas to achieve these goals, guidance for ensuring
LAND USE MANAGEMENT MANAGEMENT effective implementation and frameworks for reviewing and reporting mine
level sustainability performance.
WATER EMISSIONS HEALTH AND
STEWARDSHIP REDUCTION SAFETY

LOCAL
ECONOMIC
DEVELOPMENT

1.2 SUSTAINABILITY IMPLEMENTATION ROAD MAP FOR A MINE

The development of a sustainable mining implementation roadmap for / Developing mine sustainability goals: The development of long- term
a mine requires the establishing of long-term mine sustainability goals. sustainability goals for a mine requires consideration of multiple factors
These goals are distilled into short term – one or two year – targets and then including the corporate sustainability goals and the needs of local
interventions are designed to achieve these targets. The roadmap outlines communities. It should also include mine-specific factors such as the
the key steps which mine teams can follow in order to improve sustainability mine’s stage in its life cycle, the duration of the lease, and the type of
performance across the seven thematic areas. These steps include: mineral being extracted. These goals should be aligned with overall mine
development plans and should focus on improving mine sustainability
/ Understanding mine site conditions and the maturity of mine practices: beyond the compliance requirements.
Mine site conditions include environmental and socio-economic
/ Setting targets and developing interventions: Once long-term
conditions in which the mine operates. Understanding these is critical for
sustainability goals have been developed for the mine, action plans
identifying the challenges faced by the mine and for designing effective
for yearly targets need to be established. This process should take into
interventions. Understanding the maturity of existing sustainability
account the maturity of current sustainability practices and the mine
practices is also key to developing a baseline, which can then be used to
life/lease duration; it should also incorporate inputs from the mine
identify gaps and design-appropriate interventions.
development plan and should be guided by what has been learned from
progressive closure.

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 1.2 SUSTAINABILITY IMPLEMENTATION ROAD MAP FOR A MINE (CONT..)

/ Execution plan development:This stage involves developing project plans, implementation and timely course correction. Information generated by
identifying teams, clarifying roles and responsibilities, and carrying out reports and reviews should be incorporated into the further refining of
the project. the actions plans and targets of the various initiatives.
/ Reviewing and reporting: A reporting mechanism and architecture for
conducting reviews should be developed in order to ensure effective

FIGURE 1. SUSTAINABILITY IMPLEMENTATION ROAD MAP FOR A MINE

Understanding
Target setting
site conditions and Mine sustainability Execution plan Review and
STAGES and Intervention
maturity of mine goal development development Reporting
development
practices

/ Understand site / Incorporate mine- / Develop yearly Develop a plan to / Report performance
conditions through specific factors targets for execute different against targets
baselining studies (lease duration, different goals initiatives including / Review performance
/ Understand mineral type / Design finalizing: against overall goals
maturity of etc.), corporate interventions / Teams and action plans
ACTIVITIES current practices sustainability goals, utilizing / Roles and
local community responsibilities / Score and track
across thematic approaches mine level
areas utilising needs and mine provided in Part A / Project timeline
plan to develop sustainability
self assessment of the Charter and budget performance
questionnaires mine sustainability
goals

1. Baseline 1. Sustainability 1. Yearly targets 1. Plan for executing 1. Performance

information across goals across across thematic different initiatives report
thematic areas different thematic areas (project plan, 2. Adjustments to
OUTPUT 2. Mine maturity areas 2. Interventions roles and action plans
score across different responsibilities,
areas budgeting).

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2. UNDERSTANDING SITE CONDITIONS AND MATURITY OF MINE PRACTICES
2.1 UNDERSTANDING SITE CONDITIONS

In order to develop a sustainability strategy across the seven thematic helps in the formulation of sustainability goals for the mine. Across the
areas, mine teams need to understand current baseline conditions. This thematic areas, mine teams should have access to baseline data, including:
understanding is key to assessing the challenges in different areas; it also

FOCUS AREA BASELINE ASSESSMENTS

/ Location, topography, and geological maps

/ Land patches that are available, with plot sizes and ownership information
/ Slope and terrain
/ Soil composition (including water and mineral content) and drainage capacity

/ Results of hydrogeological studies of the core zone (5 km radius) and buffer zone (10 km radius) of the mine lease
/ Annual and seasonal rainfall trends
/ Projection of water consumption in mining operations
/ Projection of impact on water resources in terms of quality and quantity
/ Current sources of water for drinking, household use, irrigation, and other usages
/ Presence of watershed and rainwater harvesting structures on reclaimed and community land

/ Assessment of slope for slope stability of overburden dump

/ Assessment of necessary conditions for waste management in clearances, consent forms, and other documents
/ Projection of the waste that will be produced under various categories
/ Availability of an authorised waste recycler/handler

/ Analysis of ambient air quality (AAQ) standards as laid out by the Ministry of Environment, Forestry and Climate
Change
/ Assessment of AAQ parameters in core and buffer zones
/ Calculation of Scope 1 and Scope 2 greenhouse gas (GHG) emissions
/ Conducting of energy audit to identify areas for improvements in energy efficiency
/ Conducting of feasibility studies for adoption of renewable energy

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2.1 UNDERSTANDING SITE CONDITIONS (CONT.)
FOCUS AREA BASELINE ASSESSMENTS
/ Inventory of:
o forest trees and orchids
o avian species
o mammal species
o other relevant biodiversity parameters
o density and list of endangered species (if any)
/ Assessment of forest and animal migration patches:
o Any endemic species
o New species that can be introduced
/ Assessment of weather and seasonality trends

/ Assessment of mining communities:

o demographic details (gender, age)
o education, skill level, healthcare, livelihoods, connectivity, infrastructure status
o short- and long-term needs and aspirations
o local resources and available skills
o local heritage, art and culture status

/ Assessment of the physical, chemical, and biological safety of the community

/ Assessment of leading and lagging indicators
/ Assessment of the global and Indian-industry averages of leading and lagging indicators
/ Periodic Medical Examination of employees

These data points help the mine identify current conditions and key as indicated by maps showing a low water table, lack of water resources in
challenges across different areas of the mine’s functioning. These can then the area, and poor rainfall. Under such conditions, water management will
be used as inputs in the development of sustainability goals for the mine. A be an important focus area and long-term goals for the mine can include
mine, for example, may be situated in an area affected by water shortages, minimising water usage and increasing recycling practices.

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2.1 UNDERSTANDING SITE CONDITIONS (CONT.)
2.1.1 CONDUCTING BASELINE STUDIES

Baseline data may be available in some cases; however, where the mine FIGURE 2. STEPS FOR CONDUCTING A BASELINE STUDY
team needs to collect additional environmental and socio-economic data,
a baseline study will be necessary. To ensure effective use of resources,
mines can plan for an effective baseline assessment by:
BASELINE
1) Identifying the baseline study area: This should encompass the STUDY
geographic area of the mine as well as its anticipated area of influence, AREA
that is, the area which is likely to be affected by mining activities. Mine
planners may want to collect details about a specific land parcel; in such SCOPING
cases, the area of interest should be clearly identified before conducting
the baseline study.

2) Scoping: In order to avoid wasting resources, decisions should be made

in advance as to the factors about which data is to be collected, the data-
collection methods to be used, and whether data can be collected by
mine teams or if external agencies should be deployed to conduct the
study.

3) Conducting an advance data survey: Before undertaking field studies, a DESK-BASED

survey should be undertaken of the baseline data that is already available ASSESSMENT
from government studies or other public resources. Using such existing
data, the mine team can develop a preliminary baseline report across the
FIELD-BASED
thematic areas which can help determine field survey needs.
ASSESSMENT
4) Carrying out field-based assessments: Field-based assessments can be
used to fill the gaps remaining after the preliminary data survey. Because
field assessments for large mining areas require significant time,
resources, and cost commitments, they should be planned in detail in
advance to avoid wastage. Mines typically employ external contractors
for carrying out field assessments. The process of selecting such an
external agency should include a consideration of their experience, the
costs that will be incurred, and the appropriateness and scientific rigour FINAL
of the methodology to be followed. BASELINE
REPORT

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2.2 UNDERSTANDING THE MATURITY OF MINE PRACTICES

Self-assessment questionnaires (SAQs) can be used by mines to determine SAQs can help mine teams track year-on-year scores so as to understand
the current maturity of sustainability practices across different thematic performance across different thematic areas. Thematic areas where scores
areas. SAQs provide a quick understanding of the practices being followed have not improved require additional focus; in such cases, teams should
and of the degree of evolved maturity of these practices across different determine the root cause of low scores and identify practices that can be
thematic areas. Mine teams can assess current performance through incorporated or improved to ensure better performance.
allotting scores out of 10. Table 1 shows a sample SAQ for land management,
and Annexure A details SAQs for all thematic areas.

TABLE 1. Self-Assessment Questionnaire on Land Management

RESPONSE
[Link]. QUESTION
(Y/N)
1 Has survey been conducted to identify total land to be displaced, soil characteristics, native vegetation etc. ?
2 Has the impact of land disturbance on the local environment and communities been clearly identified ?
3 Has the mine received any regulatory notice related to land rehabilitation ?
4 Does the mine have a dedicated team for land management ?
5 Have key performance indicators been defined for land management ?
6 Have specific goals been defined by the mine for land management in the current year?
7 Did we achieve the goals defined last year? Is there an internal review mechanism to monitor achievement against these goals ?
8 Does the mine have a land rehabilitation plan which will generate benefits ( income, health, education, etc) for the community?
9 Does the land rehabilitation plan align with local environmental conditions and needs of the community ?
10 Were the local stakeholders involved in designing the land management plans?

To ensure better process integrity, regular external audits can be planned. maturity mine teams can modify the evaluation criteria to ensure continued
The SAQs are not static documents, and as practices achieve greater effective assessment.

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3. MINE SUSTAINABILITY GOALS DEVELOPMENT
Overview

A key aspect of mine-level sustainability performance is the development FIGURE 3. FACTORS AFFECTING MINE-LEVEL SUSTAINABILITY GOALS
of specific and quantifiable goals across the seven thematic areas. These
should include corporate sustainability goals as well as the needs of Mine-specific Local
local communities. Further specific mine-level factors will affect the factors community
implementation and outcome of different initiatives across thematic areas needs
and hence should be taken into consideration during goal development.

Corporate
sustainability
goals MINE-LEVEL
GOALS ACROSS Mine
THEMATIC AREAS plan

3.1 MINE-SPECIFIC FACTORS

Mine sustainability goals are affected by the type of mineral being mined, goals that the mine can hope to achieve and the interventions that can be
the type of mine (open cast or underground), and the mining methodology. planned; for example:
Because these aspects affect various elements of the project such as waste
generation, impact on land, and water usage, they need to be taken into i. Minerals such as coal typically have a longer mine life cycle and
consideration during the development of mine sustainability goals. The more complicated mining processes. Sustainability interventions
relevant operational characteristics of a mining project are outlined below, should thus be designed to incorporate the associated challenges;
though a mine team can incorporate further factors based on site-level for example, the land reclamation process for a coal mine is typically
specifics: more time consuming and challenging. Mines should therefore set
corresponding goals with regard to land reclamation and design
1) Type of mineral, extraction methodology, and nature of interventions.
operations: This refers to the differences between mines resulting from
the type of mineral (coal, bauxite), extraction methodology (open cast, ii. For minerals such as bauxite, which have a comparatively short mine
underground), and the type of operations (manual or automated). Each life cycle, sustainability goals and interventions should ensure that
of these will influence the sustainability goals that can be planned across desired results are achieved within that reduced time.
the thematic areas.
b. Extraction methodology: Underground and open cast mines impact
a. Type of mineral: The nature of a mineral, the challenges of its extraction, the environment differently; sustainability approaches specific to each
and the life cycle of mining operations will impact the sustainability methodology should therefore be designed. Open cast mining operations,

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3.1 MINE-SPECIFIC FACTORS (CONT.)

for example, have a larger ecological footprint than underground mines; 2) Mine and land lease duration: Lease duration determines the time left
this is due to the high volume of materials involved, wider impact, and before mine closure; this will influence the initiatives that can be planned,
greater displacement of land. Sustainability interventions for such mines their timelines, and mine sustainability goals. A mine with a shorter lease
therefore require more planning and broader coverage. Underground (under five years), for example, should avoid a goal which focuses on
mines, on the other hand, face challenges related to worker safety which increasing the tree cover in the area as the typical lead time for ensuring
impact their sustainability planning. successful reforestation is typically about 10 years.

c. Nature of operations: Sustainability goals and the nature of interventions 3) Land availability: This refers to the total land available to the mine
are impacted by the type of operations, particularly whether they are for carrying out sustainability projects after regulatory and tenancy
labour intensive or have a higher degree of mechanisation/automation. requirements have been met. Land availability will directly impact the
A more highly automated mine, for example, will need to prioritise local interventions that can be planned as well as goals such as increasing tree
employment generation as the mine operations themselves will offer cover or the development of renewable energy capacity in the mine.
few employment opportunities for local unskilled labour.

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3.2 CORPORATE SUSTAINABILITY GOALS

Corporate sustainability goals are defined for company-wide operations; Table 2 shows Hindalco’s corporate sustainability goals across the seven
they identify, and set goals for, the various material aspects of the business. thematic areas.

TABLE 2. Hindalco Corporate Sustainability Goals across Thematic Areas

[Link]. MATERIAL TOPICS Goals

1 Water stewardship / Reduce specific water consumption

2 Waste management / Minimise waste generation and maximise waste utilisation

3 Emissions Reduction / Reduce greenhouse gas emissions and increase the share of renewables in overall emissions

/ Strive toward the achievement of Sustainable Development Goal 15, with the aim of No Net Loss (NNL) of
4 Biodiversity management
biodiversity and prevention of operations in critical habitats

/ Provide support through capacity building sessions on agriculture and allied activities; conduct vocational
and technical skills development training in various skill areas
/ Promote education as a means of socio-economic development; focus on preschools, educational support
5 Local economic development programmes, vocational and technical education training, and school infrastructure
/ Provide best in-class healthcare services to local communities
/ Focus on raising the standard of living through the development of infrastructure in local communities

/ Through a three-pronged approach, utilise leadership for safety, world-class processes and practices, and
6 Health and safety right organisation for implementation to achieve a target of “zero harm”
/ Set and maintain a target of zero fatalities and avoidance of all life-threatening occupational diseases

Source: Sustainability Report of Hindalco, 20201

Mine teams can use these goals as a reference for developing mine-level can assess the applicability of renewable energy in the context of a specific
targets and identifying key focus areas within different thematic areas. In project; at a bauxite mine, for example, which has lower land availability,
terms of Emissions Reduction, for example, the corporate sustainability emissions reduction efforts may focus on other levers such as process
target is focused on utilising renewable energy as a key lever. Mine teams improvement or use of biofuels and electric vehicles.

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3.3 LOCAL COMMUNITY NEEDS
Mining operations in an area affect its social ecosystem. Mines therefore baselining are required in order to understand the local context. Figure 4
require an approach which incorporates the needs of local communities outlines the three broad stages in the process of identifying and prioritising
into the development of mine goals; proactive stakeholder engagement and local community needs.

FIGURE 4. STAGES OF UNDERSTANDING AND ADDRESSING LOCAL COMMUNITY NEEDS

ASSESS LOCAL ENGAGE COMMUNITIES PRIORITISE

CONDITIONS IN IDENTIFYING NEEDS NEEDS

Before a mine engages with local Proactive engagement is critical for effective Community engagement processes will
stakeholders on identifying their priorities, identification of community needs and typically generate a set of development
multiple variables specific to the local for the success of the programmes that priorities ranked according to their level
context need to be understood; these are implemented to meet those needs. of importance to local stakeholders.
include the socio-economic conditions of Community engagement should be an Using this as a starting point, mine
the communities, social infrastructure, ongoing exercise and should not be restricted teams can employ screens or filters
demographics, and employment to specific programmes or initiatives. Ongoing as a decision-making tool to further
opportunities. The company must also engagement will help ensure productive refine the shared areas of interest;
understand local issues; these may include participation by the community during the this screening process can be done
historical legacies and conflict settings, process of identifying requirements and internally before soliciting feedback
elite capture, gender issues, and issues priorities for the mine . For further details, from stakeholders (World Bank 2010)2.
relating to local governance and other please refer “Stakeholder engagement”
agencies which are already engaged with section in Part A of the Charter.
the community.

Examples of different types of filters that can be used by the company / Fit with government development priorities and plans
include: / Local capacity and ease of implementation
/ Level of stakeholder priority (high, medium, low) / Ability of company to add value/comparative advantage
/ Level of risk or opportunity presented (high, medium, low) / Number of people benefiting versus cost
/ Fit with company sustainability principles

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3.3 LOCAL COMMUNITY NEEDS (CONT.)
A mine team may find it useful to assess different developmental needs and / What is the level of opportunity presented in terms of ease of
issues in light of project-level risks and opportunities. Questions to be asked implementation, probability of success, and likely impact?
could include:
Table 3 details the risks and opportunities related to community health and
/ What is the risk to the company of not addressing these issues? employment interventions. The mine team should prioritise programmes
to address community issues that pose a high level of risk for the mine and
which are likely to have a strong positive impact if successfully implemented.
TABLE 3. Risk Opportunity Matrix

LEVEL OF LEVEL OF
COMMUNITY ISSUE NATURE OF RISK NATURE OF OPPORTUNITY
RISK OPPORTUNITY

INADEQUATE Potential loss of productivity among The company can help set up healthcare
HEALTHCARE employees living in communities with facilities and collaborate with governments to High Medium
FACILITIES poor healthcare services strengthen existing infrastructure

The company can set up programmes to

Possible frustration and anti-company
HIGH RATES OF promote skills training and can invest in
sentiments due to high unemployment High High
UNEMPLOYMENT and low levels of education
entrepreneurial initiatives to increase the
income prospects of local residents
Source: World Bank (2010)

In order to rank risks and opportunities as high/medium/low it is important to The level of opportunity presented by each issue can be similarly evaluated.
establish a common definition of what these ratings mean. While evaluating It can be assessed by understanding the ease of implementation, cost, and
risks, for example, factors to consider include: potential impact. Considerations thus include:
/ How great a risk does the issue pose to the company in terms of project / Are there potential partner organisations with sufficient expertise and
delays and disruptions, potential interference with the social license to implementation capacity?
operate, or possible undermining of the company’s reputation? / Is the issue supported by government and included in local/regional/
/ Is the issue considered high priority by most local stakeholders or by national development plans?
only a select minority? / How practical and/or easy is it to carry out the activity (that is, can it be
/ What is the probability or likelihood of a “risk event” if the need or issue done readily by the company or is a third party required)?
is not addressed? / What is the potential for impact (that is, what is the likelihood that the
/ Has the issue drawn the attention of NGOs or media? intervention will result in broad-based benefits)?

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3.3 LOCAL COMMUNITY NEEDS (CONT.)

Community needs can be prioritised through combining risk and present a strong opportunity, that is, easy implementation, high probability
opportunity ratings. Ideally, the mine should identify needs that constitute of success, and significant impact.
a potential high risk for the company if no action is taken, but which also

3.4 MINE PLAN

The mine development plan and closure plans should be considered The details provided in the mine development plan will act as inputs to
as baseline to which the mine team must adhere while developing the the design of interventions and to the execution planning process. The
mine sustainability goals. Mines should set sustainability goals that add mine development plan, for example, provides details about how mining
value over and above the statutory requirements and which exceed those will proceed throughout a particular land parcel; it can therefore be used to
prescribed by the closure plan. guide reclamation planning.

3.5 MINE SUSTAINABILITY GOALS DEVELOPMENT FRAMEWORK

Mines can use the approach outlined in Figure 5 to develop sustainability the current maturity of the mine, and the mine plan. Figure 5 presents the
goals, incorporating the factors detailed above. While a consideration of steps in developing a mine sustainability goals framework. The factors
corporate sustainability goals and local community needs will help identify listed are not exhaustive, and during the mine’s goal development the mine
key themes across different areas, mine-specific factors can be used to team can include others which they feel are critical.
prioritise themes. Goal quantification will depend on baseline conditions,

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3.5 MINE SUSTAINABILITY GOALS DEVELOPMENT FRAMEWORK (CONT.)

FIGURE 5. STEPS IN DEVELOPING A MINE SUSTAINABILITY GOALS FRAMEWORK

IDENTIFYING KEY THEMES ACROSS THEMATIC AREAS

CORPORATE SUSTAINABILITY LOCAL COMMUNITY

1

GOALS NEEDS
P
E

Identify corporate-level Identify local community needs

ST

goals across seven thematic such as water supply, educa-

areas; Focus on key themes tion, healthcare, employment

PRIORITISATION BASED ON MINE-SPECIFIC FACTORS

ASSESS MINE LIFE COMPLIANCE

STAGE REQUIREMENT

ST
IMPACT

E
Prioritise goals based on Assess goals considering the Prioritise goals basis compliance

P
impact severity across remaining duration of mine for example land ownership and

2
thematic area lease forest regulations

GOAL QUANTIFICATION

CORPORATE BASELINE MINE

GOALS CONDITIONS MATURITY
ST

Where applicable, Understand baseline Decide goals in light

E

corporate targets can conditions of maturity of current

P
3

be used as reference mine practices

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4. TARGET SETTING AND INTERVENTION DEVELOPMENT
4.1 TARGET SETTING

Once sustainability goals for the seven thematic areas have been developed, FIGURE 6. TARGET-SETTING PROCESS
mines should develop yearly targets for each area. These targets will
depend on the overall mine goals, the mine plan, and the maturity of Provides inputs on current
current practices. Mine teams can set yearly targets utilising the key factors development, land availability and
listed above. Teams can start with an overall goal in a particular thematic progressive closure activities
area, which is to be achieved in the course of the mine’s life cycle. This
can be synchronised with the time remaining on the lease and the maturity Provides overall
of current practices in order to break goals down into yearly targets. The quantitative Provides
maturity of current practices focuses on understanding the existing skills, targets along understanding of
expertise, and experience within the team; this is critical to ensuring with timeframe maturity of current
successful implementation of interventions and achieving targets. for their mine practices
achievement
MINE
PLAN

CU

M NT
RR
AT PR
GO INE
S

E
UR A
AL
M

ITY CTI
OF CES
YEARLY
TARGETS

SUSTAINABLE MINING CHARTER | 2021 16

4.2 DEVELOPMENT OF INTERVENTIONS

Interventions across different thematic areas can be developed using the the factors that mine teams should consider while developing interventions.
frameworks and approaches provided in Part A of the Charter. Table 4 details

TABLE 4. Framework for Developing Interventions

[Link]. FACTOR DESCRIPTION

Interventions should be technically feasible and not too difficult to implement. Greater complexity leads to
1 Technical feasibility
higher costs and increased probability of failure.

Cost is a key consideration for intervention [Link] should have a clear understanding of budgetary
2 Budgetary constraints
constraints.

The impact of interventions should be clearly understood in light of the effort and cost required for their
3 Impact
implementation.

4 Implementation challenges The broad challenges associated with implementation of interventions should be clearly mapped out.

Teams should check if sufficient experience and know-how regarding a possible solution is available within
Experience and knowledge
5 the team. If not, teams should explore the utilisation of external experts who can provide guidance and
within the team
training.

Availability of implementation For interventions which depend on new techniques or technologies, mine teams should assess the
6
partners availability of implementation partners.

Mine teams should familiarise themselves with similar interventions carried by other mining companies;
7 Previous implementation cases
this can help mine teams to better understand potential challenges and thus be better prepared.

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5. DEVELOPMENT OF EXECUTION PLAN
PROCESS

This stage focuses on planning for the execution of different interventions encompasses various other departments. Key performance indicators
designed for the seven thematic areas. Once yearly targets and interventions (KPIs) should therefore be set to ensure coordination among departments.
have been identified, mine teams should develop detailed execution plans
that clearly identify the personnel and the financial and technical support 3. Allocation of budget: Allotment of adequate financial resources will
that a project requires. Activity-level plans should be developed to clearly facilitate the smooth implementation of activities.
identify the time and budget required by a particular project and the roles
and responsibilities of the different team members. 4. Training and capacity building: Training of team members and other
relevant stakeholders is required to raise awareness around sustainable
The development of an effective action plan requires that the following mining and deepen their understanding of the seven focus areas.
activities be carried out:
Initiatives that can be implemented to enhance awareness and capacity
1. Set up an action team: Building an effective and efficient team is an building include:
essential part of action plan development. In order to help leverage / Awareness sessions on sustainable mining during the induction of
collective experience and expedite decision-making, a corporate- and site- new employees
level sustainability team should be set up which includes representatives
from various cross-functional areas such as corporate planning, human / Internal e-mailers, magazine subscriptions, and newsletters for raising
resources, finance, operations, and corporate social responsibility. In awareness
case of lack of expertise in a particular area, mine teams should explore / Organisation-wide collection of ideas to improve sustainability
onboarding external experts who can significantly improve chances of performance
success and help in building the skill levels of existing teams.
5. Developing a project plan: A focused, area-specific list of activities with a
2. Defining key performance indicators: To translate goals and targets defined timeline must be developed and adequate financial and human
into an action plan and to ensure effective implementation, the resources should be deployed to implement these activities. Project
responsibilities and targets of each stakeholder must be defined. The plan development should not be a static activity; it should be regularly
scope of sustainability is not just limited to the sustainability team; it updated and monitored in order to identify any risks which may impact
the schedule.

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6. REVIEW AND REPORTING
6.1 REVIEW

An effective review mechanism ensures continuous monitoring of progress in, and agenda of, the review will differ depending on the level at which it
against targets, as well as identification and mitigation of potential risks is being conducted. Table 5 shows a suggested review architecture, which a
that may affect implementation. Cascaded reviews can be conducted mine can use as a reference when designing a review mechanism for their
across multiple levels to ensure the effective implementation of different specific context.
interventions and provide support to the executing teams. The participants

TABLE 5. Suggested Review Architecture

REVIEW FREQUENCY REVIEW PARTICIPANTS OBJECTIVE (AGENDA)
/ Track weekly progress and align targets
DAILY Project leaders and team members / Assess plan for the following week
/ Identify and manage key operational constraints

/ Align overall progress against targets

Sustainability head and project leaders, with other
WEEKLY / Revise actions plans if required
participants added as per requirements
/ Review additional budgetary or resource requirements

/ Assess overall progress on initiative against targets

Mine head, sustainability head, functional head, and / Review additional budgetary and resource requirements
MONTHLY
project leaders / Gauge need for support on organisational issues impacting
progress

/ Assess overall mine-level performance

QUARTERLY Business head, mine heads, and sustainability head
/ Review key strategic issues and challenges

/ Review sustainability performance for mining vertical

Managing director, business head, mine heads, and / Review progress on key initiatives and challenges
BIANNUALLY
sustainability head / Set strategic directions and goals for the remainder of the
year

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6.1 REVIEW (CONT)

To ensure an effective and successful review, mine teams should focus on 3. Set targets for subsequent week/month: Based on the level of
the following questions: achievement to date, what targets should be reached by next meeting?
1. Review of performance: How do achievements compare to goals? 4. Agree on action items: What actions need to be taken and what work
2. Identification of root causes: What are the reasons for the level of needs to be done in order to reach targets?
achievement? 5. Additional requirements: What support is required to achieve targets?

6.2 REPORTING

Mines can use the sustainability scorecard for reporting on sustainability Using the mine maturity index in the sustainability scorecard, mine
performance across different thematic areas and for assessing overall teams can report performance in different areas as well as overall mine
mine performance (Annexure B). Details on how to use the sustainability performance.
dashboard have been provided in Annexure 2.
Mine-level external audits can also be conducted to ensure objective tracking
of performance and to enhance improvement of sustainability practices.

SUSTAINABLE MINING CHARTER | 2021 20

ANNEXURES
ANNEXURE 1 / SELF-ASSESSMENT QUESTIONS FOR EACH THEMATIC AREA
Self-assessment questionnaires (SAQs) can be used by mine teams to the scores obtained, teams can assess the maturity of practices and identify
assess the maturity of current sustainability practices across the seven key gaps across different thematic areas. Table A1 lists the SAQ questions
thematic areas. SAQs have been prepared for all the thematic areas; they for each thematic area.
follow a Yes/No response scoring pattern, with Yes = 1 and No = 0. Based on

TABLE A1. Self-Assessment Questions for each Thematic Area

1. SUSTAINABLE LAND MANAGEMENT

RESPONSE
[Link]. QUESTION
(Y/N)

1 Has survey been conducted to identify total land to be displaced, soil characteristics, native vegetation etc. ?

2 Has the impact of land disturbance on the local environment and communities been clearly identified ?

3 Has the mine received any regulatory notice related to land rehabilitation ?

4 Does the mine have a dedicated team for land management ?

5 Have key performance indicators been defined for land management ?
6 Have specific goals been defined by the mine for land management in the current year?

Did we achieve the goals defined last year? Is there an internal review mechanism to monitor achievement
7
against these goals ?

Does the mine have a land rehabilitation plan which will generate benefits ( income, health, education, etc)
8
for the community?

9 Does the land rehabilitation plan align with local environmental conditions and needs of the community ?
10 Were the local stakeholders involved in designing the land management plans?

SUSTAINABLE MINING CHARTER | 2021 22

2. WATER STEWARDSHIP

RESPONSE
[Link]. QUESTION
(Y/N)

1 Has a hydrogeological study been conducted for the mine?

2 Have the impacts on water resources including diversions been clearly identified?

3 Has the mine received any regulatory notice related to water management?

4 Does the mine have a dedicated team for water management?

5 Have key performance indicators been defined for water management?
6 Have specific water management goals been defined by the mine for the current year?

Did the mine achieve the goals set last year? Is there an internal review mechanism to monitor achievement
7
against these goals ?

8 Does the mine have an action plan for optimizing water usage for the current year ?
9 Does the mine have an plan for improving water quality for this year ?
10 Were the local stakeholders involved in the design of water management plans

23 SUSTAINABLE MINING CHARTER | 2021

3. WASTE MANAGEMENT

RESPONSE
[Link]. QUESTION
(Y/N)

1 Has there been clear identification of hazardous and non hazardous waste generated by the mine?

2 Have the risks associated with overburden, waste rock, tailing, sludge etc. been clearly identified?

3 Has the mine received any regulatory notice related to waste management?

4 Does the mine have a dedicated team for waste management?

5 Have key performance indicators been defined for waste management ?
6 Have specific waste management goals been defined by the mine for the current year?

Did we achieve the goals defined last year ? Is there an internal review mechanism to monitor achievement
7
against these goals ?

8 Does the mine have an action plan to reduce waste generation for the current year ?
9 Does the mine have an action plan to improve waste recycling for the current year ?
10 Were the local stakeholders involved in designing the waste management plans

SUSTAINABLE MINING CHARTER | 2021 24

4. EMISSIONS REDUCTION

RESPONSE
[Link]. QUESTION
(Y/N)

1 Have GHG and non-GHG emissions been identified for different operations?

2 Has an energy audit been conducted for the mine?

3 Has the mine received any regulatory notice related to Emissions Reduction?

4 Does the mine have a dedicated team for Emissions Reduction?

5 Have key performance indicators been defined for the mine’s Emissions Reduction?
6 Have specific Emissions Reduction goals been defined by the mine for the current year?

Did we achieve the goals defined last year ? Is there an internal review mechanism to monitor achievement
7
against these goals ?

8 Does the mine have an action plan to reduce GHG emissions for the current year ?

Does the mine have an action plan to reduce suphur oxides (Sox),nitrous oxides (Nox) and other significant
9
emissions for the current year ?

10 Were the local stakeholders involved in designing the Emissions Reduction plan?

25 SUSTAINABLE MINING CHARTER | 2021

5. BIODIVERSITY MANAGEMENT

RESPONSE
[Link]. QUESTION
(Y/N)

1 Have details of local flora, animal species etc. been captured?

2 Has the impact of mining on local biodiversity been clearly identified?

3 Has the mine received any regulatory notice related to biodiversity management?

4 Does the mine have a dedicated team for biodiversity management?

5 Have key performance indicators been defined for biodiversity management in the mine?
6 Have specific biodiversity management goals been defined by the mine for the current year?

7 Did the mine achieve the goals defined last year ?

8 Have action plans been developed to reduce or mitigate damage to native flora for the current year?
9 Have action plans been developed to restore native biodiversity after mine closure?
10 Were the local stakeholders involved in designing the biodiversity management plans

SUSTAINABLE MINING CHARTER | 2021 26

6. HEALTH AND SAFETY

S.I. RESPONSE
QUESTION
NO. (Y/N)

1 Have the different type of health & safety risks from mining operations for mine workers been clearly identified?

2 Have different type of health & safety risks from mining operations for local communities been clearly identified?

3 Has there been any major health & safety incident (fatality) during the year ?

4 Does the mine have a dedicated health & safety policy for contractors as well ?
5 Does the mine have key performance indicators for managing employee as well as community health & safety ?
6 Have goals been identified at mine level for health and safety management for the current year ?

7 Did the mine achieve the goals set last year ?

8 Have any initiatives been taken for improving health and well-being of mining communities in the current year ?
9 Have any specific action plans been prepared for the current year to reduce worker health and safety risks?
10 Were the local stakeholders involved in designing the health & safety management plans?

27 SUSTAINABLE MINING CHARTER | 2021

7. LOCAL ECONOMIC DEVELOPMENT

RESPONSE
[Link]. QUESTION
(Y/N)

Has a baseline study been conducted to identify the income levels , skills and occupation of members of
1
local community ?

Has there been a clear identification of the needs of community in terms of infrastructure, health facilities,
2
employment etc.?

Have any community development, upskilling or social infrastructure development programs been
3
implemented in the local community ?

4 Does the mine have a dedicated team for managing relationship with local communities ?

Have key performance indicators been defined to measure mine’s performance in local economic
5
development initiatives ?

6 Have specific local economic development goals been identified for the mine?

7 Did the mine achieve the goals defined last year?

Have plans been developed to improve income levels/ employment opportunities for local communities in
8
the current year ( including procurement of goods and services from communities, skills training, etc.)?

Have plans been developed to improve the community’s social infrastructure (educations, health, etc) for
9
the current year?

10 Were the local stakeholders involved in designing the local economic development plans?

SUSTAINABLE MINING CHARTER | 2021 28

ANNEXURE 2 / SUSTAINABILITY SCORECARD
12.2 SUSTAINABILITY SCORECARD AND MATURITY INDEX

The sustainability scorecard focuses on internal reporting. It provides a

TABLE B1.
structured framework for quantifying the sustainability performance of a Maximum
Scorecard of Performance for each Focus Area
mine using a defined set of key performance indicators and weightages Total Score

that are assigned to each focus area. The maturity matrix provides the user Level 1: Baseline Assessment 1.00
with a set of maturity levels which may be assigned to a mine based on its No baseline assessment is conducted 0.00
sustainability score. Baseline assessment is conducted internally 0.50
Baseline assessment is conducted by an external party 0.75
Baseline assessment is conducted by an external party and 1.00
STEP 1: DEFINE SCORING PARAMETER published publicly
Scoring parameters define a quantitative metric for measuring the
Level 2: Goal & Target Setting 1.00
performance of each focus area at different levels of the implementation Goals setting not completed 0.00
plan. Table B1 presents the scorecard used in each of the focus areas. Quantitative goals have been set for the focus area 0.50
Goal have been set and have been disclosed in public 1.00
domain

Level 3: Action Plan Development 1.00

Annual work plan is not developed for the assessment year 0.00
Annual work plan is developed for the assessment year 1.00

Level 4: Implementation, Monitoring and Review 1.00

Less than 20% of the target is achieved 0.00
20% of the target is achieved 0.20
40% of the target is achieved 0.40
60% of the target is achieved 0.60
80% of the target is achieved 0.80
100% of the target is achieved 1.00

Level 5: Reporting, External Audit and Assurance 1.00

No audit is conducted 0.0
Internal audit is conducted 0.25
External audit is conducted 0.50
Performance reported in public domain (with 0.75
internal and external audits)
Performance results are assured by a third party 1.00
Total Maximum Score Possible 5.00

29 SUSTAINABLE MINING CHARTER | 2021

12.2 SUSTAINABILITY SCORECARD AND MATURITY INDEX (CONT.)

STEP 2: DEFINE WEIGHTAGE TABLE B2. Sustainability Scorecard Showing Weightage of

Each focus area is assigned a weightage to measure the overall score of a each Focus Area of the Mine’s Operations
mine. These weightages should be defined by the corporate-level committee Focus Areas Weightage
and should be based on the type of local risks (social, environmental, and Sustainable Land Use [x1]
economic), the mineral extracted, and the topography, hydrogeology, and Water Stewardship [x2]
mining methods. Waste Management [x3]
Emission Reduction [x4]
Biodiversity Conservation [x5]
Local Economic Development [x6]
Health and Safety [x7]
Total Score 1.00

STEP 3: DEVELOP SCORECARD TABLE B3. Calculation of Total Sustainability Score of a Mine,
The overall mine site score can be generated on the basis of the weightage as Determined by the sum of Weighted Scores
assigned and the score generated for each of the thematic areas. Weightage Score Weighted
Focus Areas (W) (S) Score (W*S)
Sustainable Land Use [x1] [y1] [x1 * y1]
Water Stewardship [x2] [y2] [x2 * y2]
Waste Management [x3] [y3] [x3 * y3]
Emission Reduction [x4] [y4] [x4 * y4]
Biodiversity Conservation [x5] [y5] [x5 * y5]
Local Economic Development [x6] [y6] [x6 * y6]
Health and Safety [x7] [y7] [x7 * y7]
Total Score (out of 5) [ sum ]

MATURITY INDEX TABLE B4. Maturity Index Showing Level of Maturity of a

The index shown in Table B4 can be used to define a mine’s level of maturity Mine’s Sustainability Path
Score Range
on the sustainability path. Maturity Level Minimum Maximum
Stage 1 0 2
Stage 2 2 3.5
Stage 3 3.5 4.5
Stage 4 4.5 5

SUSTAINABLE MINING CHARTER | 2021 30

/ REFERENCE
1. ^ Hindalco. 2020. Building a Resilient, Responsible and Reliable Future. 2. ^ World Bank Group. 2010. Strategic Community Investment: A Quick Guide.
Sustainability Report FY 2019–20. Mumbai, India: Hindalco. [Link] Washington, DC: International Finance Corporation, World Bank Group. https://
[Link]/upload/pdf/[Link] [Link]/wps/wcm/connect/4e313b34-a5d2-477f-8fde-5f422a28815b/
IFC_com_inv_handbook_2.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-
4e313b34-a5d2-477f-8fde-5f422a28815b-jqeEYVL.

31 SUSTAINABLE MINING CHARTER | 2021

THIS PAGE IS INTENTIONALLY LEFT BLANK
 ABOUT HINDALCO INDUSTRIES LIMITED
Hindalco Industries Limited [HIL] is the metals flagship company of the Aditya Birla Group. An $18 billion metals
powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major player in copper. It is
also one of Asia’s largest producers of primary aluminium.

Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a
sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world’s largest producer of aluminium beverage
can stock and the largest recycler of used beverage cans (UBCs). The Company operates several bauxite and coal
mines in India for captive consumption in its aluminium business.

Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, a fertiliser plant
and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location.

Hindalco’s global footprint spans 47 manufacturing units across 10 countries.

ABOUT VIKAASA: Founded as India2022, Vikaasa is a business-led coalition creating new a growth model for India
in line with the United Nation’s Sustainable Development Goals. The member companies of Vikaasa will incubate
and pilot new growth models creating impact at scale.

Core team members for this project: Debashis Ghosh, Susant Kumar Guru, Anoma Basu from Hindalco and Nakul Gupta, Vaibhav Doshi,
Nishant Shekhar, Ashish Verma from Xynteo.

In case of any queries on the charter, please write to [Link]@[Link]

June 2021 | © All rights reserved. All information, advice, text, images and other content provided in this Sustainable Mining Charter (“Charter”) is given in good
faith and is based on sources believed to be reliable and accurate at the time of release of the Charter. Whilst every endeavour is taken to keep the information up-
to-date and correct, Hindalco Industries Limited (“HIL”) make no representations or warranties of any kind, expressed or implied, about the accuracy, completeness,
suitability, reliability with respect to the content of the Charter or any other information contained in the Charter for any purpose. HIL own all copyright in the Charter
under the Copyright Act, 1957. Except prior written permission of HIL, you are prohibited from copying, reproducing, modifying, distributing, displaying, performing
or transmitting any of the contents of the Charter for any purposes, and nothing otherwise stated or implied in the Charter confers on you any license or right to do
so.

You may use the content of the Charter solely for your own individual non-commercial and informational purposes only. Any other use, including for any commercial
purposes, is strictly prohibited without our express prior written consent. Requests and inquiries concerning any of the above mentioned rights should be addressed
by email to [Link]@[Link]

33 SUSTAINABLE MINING CHARTER | 2021

SUSTAINABLE
MINING CHARTER

VERSION 1.0: JUNE 2021

HINDALCO INDUSTRIES LIMITED.

Registered Office: Ahura Centre, 1st Floor, B Wing
Mahakali Caves Road Andheri (East), Mumbai 400 093
Website: [Link]

Document design, layout and illustrations by Shubho Broto Das, [Link]