Knowledge Hub

Lundin Mining – SDG 11

Lundin Mining

Website: lundinmining.com/

Industry: Mining

Primary SDG Focus

Secondary SDG Focus

SDG 13 Joint Climate Action

How was your primary SDG focus identified and prioritized in the company’s value chain?

Minera Candelaria is a very active member of the local communities within its area of influence – including Tierra Amarilla, Copiapó, and Caldera in the Atacama region of Chile. A variety of opportunities to integrate SDG 11, among others, were identified and implemented within our nearby communities in 2018, including extensive and ongoing engagement and collaboration with stakeholders, a critical component to the identification of meaningful opportunities and implementation of programs involving innovation and improved sustainability performance, both at the mine and in the neighbouring areas.

Being a trusted neighbour to the community, advancing programs developed through collaboration and transparent dialogue, has always been a top priority for Minera Candelaria. Local and regional development, in a sustainable manner, is also extremely important for the mine, providing for long-term shared value, responsible operation, development of robust partnerships that address some of the region’s top priorities for sustainable development.

How was your primary SDG integrated and anchored throughout your business?

The SDG has been integrated throughout the business through formal mechanisms for community-company dialogue, transparent and constant communications, robust partnerships for contributing to the goal, such as that with the Lundin Foundation, as well as via interdepartmental ideas-sharing and consultation at all levels. Through their Inventa Comunidad Program with the Lundin Foundation, Candelaria employees are involved in business incubation support, provide mentoring as business and technical advice/feedback to the entrepreneurs involved in the program. This ensures ongoing support for Candelaria to implement SDG 11 and advance local and regional activities that contribute measurably to sustainable development. Other formal mechanisms by which the communities can communicate their priorities for sustainable development include online submission platforms, direct dialogue with site representatives, social media, public forums, the establishment of community offices open to the public, and close relationships with local municipalities.

Did you employ any innovative approaches in your efforts to implement the goal?

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The primary goal has been implemented at Candelaria using a variety of innovative approaches through various initiatives. Firstly, Candelaria, in partnership with the Lundin Foundation, funded and established the Inventa Comunidad Program. Launched in 2016 as a business incubator, Inventa Comunidad has created a network of 74 public and private sector partners, mobilizing actors and funding agencies to add value to community innovations and entrepreneurs. These partners form a network critical to sustainable development of the region. Inventa has trained 535 people in environment and social innovation and is incubating 13 products/initiatives into scalable social and environmental enterprises that can serve the broader Atacama region. The program is implemented in two phases. The first is a business incubator, the second an accelerator designed to help products with market-launch. The program also provides start-up capital to create prototypes.

Second, to address broader goals for sustainable development, Candelaria proactively renegotiated their Power Purchase Agreement to improve carbon footprint as well as operational economics – money accessible for further SDG contribution. The innovation in contract management enabled changes to the energy market to be leveraged to guarantee 80% renewables in their energy supply, not previously guaranteed, with a focus on wind and solar. Capacity for self-generation was also negotiated.

Another initiative was the planting of a native forest in Tierra Amarilla. Following extreme drought, Candelaria recognized that a stand of Eucalyptus trees was placing undue stress on an already water-stressed desert community. Consequently, they have voluntarily reforested six hectares of land with local trees, with an additional 4 planned over the course of 2019. Aligned with this is Candelaria’s participation in Water Day in Copiapó, where site experts educated locals on the importance of water management in the area.

Were any partnerships leveraged or created?

The Inventa Comunidad Program is made possible through the leveraging and creation of robust partnerships with a common goal. It was established in partnership with the Lundin Foundation and a local Chilean university, as a strategic community investment program with the objective of supporting scalable community-led innovations for sustainable development in the region. The Lundin Foundation plays a very active and critical role alongside Candelaria in facilitating the program and ensuring that there is support for applicants and entrepreneurs who are budding as a result.

The proactive renegotiation of the Power Purchase Agreement employed innovative approaches and opportunity-identification to leverage the long-standing partnership with a national energy provider, AES Gener.

The reforestation project in the Alcaparrosa sector of Tierra Amarilla is a Candelaria-led initiative, however partnerships and buy-in from the local government were necessary to ensure success and community support. Similarly, good relationships with the local municipal government enables Candelaria to actively participate in education-oriented community events and initiatives, such as Water Day in Copiapó among others.

What communications strategy did you employ to share the initiative with your stakeholders?

There are several mechanisms by which Candelaria’s contributions to SDG 11 are communicated. Firstly, all relevant projects and initiatives are communicated within the annual, award-winning Lundin Mining Sustainability Report. It is well-regarded as transparent, balanced and has a wide audience of external and internal stakeholders. Another method of communicating these initiatives, in a manner suited well for local stakeholders of all types, is through open dialogue both formally and informally through the local community offices and public forums. Stakeholders can inquire through the Community Dialogue department or other relevant subject matter experts directly using these methods. Candelaria also participates in many local community events, where community members have the opportunity to discuss these initiatives and provide their feedback. Further, social media, such as an open WhatsApp group for locals to join, as well as local publications are used to communicate these initiatives.

There are frequent notices for employees and contractors on-site, in the form of news stories and publications around the mine, for internal stakeholders to be exposed to the various projects completed and ongoing. This allows for ongoing engagement and empowers them to be involved.

How were KPIs and the levels of success outlined and defined?

Inventa Comunidad:

  • In partnership with the Lundin Foundation, the target outcome is help locally led, financially viable social and environmental solutions to scale and serve the Atacama Region, and the second is to inspire local entrepreneurship and community driven solutions. This was defined in close consultation with implementing partners and local communities.
  • The program also defined KPIs to track the progress of businesses as they matured and the catalytic role that the program can play in engaging additional funding partners to help entrepreneurs succeed, for example:
    • Number of prototypes developed.
    • Number or market-ready products.
    • Number of businesses generating first revenue and value of annual sales.
    • Number of businesses securing third-party funding and the value of third-party funding.

Power Purchase Agreement Renegotiation:

  • Leverage changes to energy market to transition to a cleaner energy supply and reduce the carbon footprint of Candelaria.
  • Achieve cost-savings under new contract to improve operational economics.

Alcaparrosa Reforestation Project

  • Plant 10 hectares of native tree species in a previously introduced eucalyptus forest, to reduce water stress in the region and conserve local habitats.

Water Day in Copiapó

  • Engage with local stakeholders to share information on sustainable water management.
  • Share information related to Candelaria’s sourcing of water from its Punta Padrones desalinization plant.
  • Advance education on the importance of responsible water consumption.

How were reporting and monitoring conceptualized and undertaken?

The Inventa Comunidad Program performance is facilitated through the Lundin Foundation and Lundin Mining/Candelaria’s social teams, who track the progress and ensure that funding is carried out successfully. Support is also provided ongoing to entrepreneurs as a part of the program – their successes and challenges communicated within the Company and reported on in the annual Sustainability Report. Close monitoring of the program and support-provision to entrepreneurs is conducted to ensure that the businesses mature as projected, and that relevant support is offered based on the specific needs of the business.

Candelaria’s Power Purchase Agreement renegotiation was a significant undertaking, led by the Energy Specialist with support from senior managers at site and corporate. The progress of the effort was continuously monitored through the Supply Chain department and communicated/reported to internal stakeholders regularly.

The reforestation program is an ongoing project for which the commitment is monitored, as well as the health and well-being of the trees planted to ensure the new forest’s successful plantation. As a voluntary initiative as part of an agreement made with the local government, it is tracked, and the progress is reported to the relevant stakeholders.

Events such as Water Day in Copiapó are identified and participated in whenever possible. The success of each event is reported internally, detailing the objectives and outcomes. Events such as these are also reported in the annual Sustainability Report for Lundin Mining.

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What were some key lessons learned?

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Inventa Comunidad – there is incredible ingenuity within local communities to be leveraged. Helping good ideas grow with a viable business model takes time and patience, as entrepreneurs will have many false starts and need to overcome barriers for business ideas to succeed. Business ideas are a commonplace; however, it is the spirit of the entrepreneur that will enable the business to launch successfully.

Early stage financing is a critical gap needed to finance solutions for the SDGs. There are few opportunities for start-up entrepreneurs to get the small amounts of funds needed to create a prototype or first market product. The ability for the Inventa Comunidad program to offer start-up funding has helped many entrepreneurs get off the ground and has played a pivotal risk-minimization role in proof-of-concept of the business to other funding actors.

What were the key impacts and results?

Inventa Comunidad:

  • In total, 13 environmental and social solutions have been incubated through the program, with 100% of ideas maturing to market-ready products and 100% of businesses reaching the accelerator phase, launching first revenue.
  • Water Scarcity Technologies:
    • Desalination plant powered by renewable energy.
    • Water collection and storage system from mist and clouds in desert zones.
  • Energy Access and Sustainable Technologies:
    • Vertical wind turbine that generates energy from low winds.
    • Intelligent bicycle parking and locking system to promote sustainable transportation.
  • Recycling and Waste Reduction:
    • Battery recycling to recover dry battery metals through an environmentally friendly process.
    • Construction bricks made from recycled plastic and cement for emergency housing following natural disasters.
    • Paving bricks developed from mine tailings.
    • Modular furniture created from Tetra Packs and other recycled materials.
  • Contributed USD$348,000, additional USD$400,000 committed to expand program in 2019.
  • Leveraged USD$156,000 in third-party funding.

Power Purchase Agreement Renegotiation

  • Successful renegotiation.
  • Pre-2023, negotiations achieve USD$21,000,000 in savings.
  • Post-2023, the new PPA will achieve savings of USD$62,000,000.
  • Improved energy grid mix, reducing carbon footprint – 80% of supply from renewable sources.
  • Self-generation up to 20 MW with solar and wind projects for powering the desalinization plant being evaluated.

Alcaparrosa Reforestation Project

  • 6 hectares of land planted with native trees, reducing water stress and providing habitat. Additional 4 hectares planned for planting over 2019.

Water Day in Copiapó

  • Participated in event and successfully achieved the KPIs previously defined.

Supporting Links:  

Inventa Comunidad

Yakka Project: https://youtu.be/fvQVqkCqquU

Project Recybatt: https://youtu.be/uWLlSvWEvJ4; http://www.chrysalis.cl/noticia/recybatt-desde-atacama-aportando-al-reciclaje-y-cuidado-del-medio-ambiente/

Eco Adequines: https://youtu.be/dCVqkfx9SIY

Tetrapak Modular Furniture: http://www.letrabrava.cl/panalinea-una-emprendedora-atacamena-irrumpiendo-en-el-mercado-mobiliario/

Solution for water scarcity and renewable energy: http://www.chrysalis.cl/blog/yakka-conoce-el-innovador-atrapanieblas-creado-en-Copiap%C3%B3-capaz-de-capturar-110-litros-por-dia/

2017 Sustainability Report

https://www.lundinmining.com/site/assets/files/7311/lmc_csr2017_v10.pdf

2018 Sustainability Report

https://www.lundinmining.com/site/assets/files/7930/lun_2018_sustainability_report_final.pdf