Track 8: Safety, Social Performance and Talent Management

Framework For Responsible Mining And Processing In India R. Chadha1, *K. Bansal2, T. Pal3, G. Sivamani4 and K. Prahalad5 Abstract Mining is a high-risk and high-reward sector. Discovering new resources and reserves involves many uncertainties, which are offset by the revenue generated from extracting and selling them in the future. The economic importance of the mineral sector has grown exponentially as demand for critical minerals used in clean energy technologies has increased. Countries with very low mining capacity but abundant resources, such as Indonesia and Zimbabwe, have accelerated exploration and mineral production. The mineral sector is also associated with significant negative externalities that affect ecological balance and the living conditions of local communities. Regulators and companies, across jurisdictions, have faced challenges in creating a responsible mineral value chain. Analysis of mining-induced conflicts across global supply chains and the measures taken by stakeholders to address them emphasise the need for responsible practices. The authors participated in a field study across three top mining states in India – Odisha, Rajasthan and Chhattisgarh to identify the challenges in developing responsible mineral value chains domestically. This paper aims to establish the need for a comprehensive, responsible mining and processing framework for India. Through an examination of legislative enactments and judicial interventions, the paper examines the challenges the mining sector faces in adopting responsible practices, thereby contributing to the already existing costs of conflict. A responsible minerals framework is proposed, comprising five pillars that address challenges in mineral allocation, environmental regulations, community benefit sharing, health and safety, and operational monitoring. The framework is based on field studies and expert consultations, providing policymakers with focus areas and proposed solutions to mitigate mining-induced conflicts. Keywords Responsible Mining, Communities, Conflicts, Accountability, Benefit Sharing INTRODUCTION Mining provides the raw materials needed to enable modern living and lends positive impetus to economic growth through downstream sector linkages and job creation. However, it has also led to several negative externalities. These adverse impacts include imbalances in the local climate, depletion of biodiversity in flora and fauna, air, soil, and water pollution, and other ecological disruptions affecting all lifeforms. Externalities from mining and processing activities have affected communities in the vicinity, leading to long-lasting conflicts amongst stakeholders. 11 Senior Fellow, Centre for Social and Economic Progress (CSEP); 2 Research Associate, CSEP; 3 Research Associate, CSEP; 4 Associate Fellow, CSEP; 5 Research Analyst, CSEP *Presenting Author: kbansal@csep.org 143

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