UNFC, Sustainable Development Goals and elaboration of challenges in resource development
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The document discusses the challenges and opportunities in resource development related to energy within the framework of the United Nations Economic Commission for Europe's sustainable development goals. It highlights the need for innovative strategies to minimize waste in mining, improve governance and management of resource wealth, and the importance of aligning resource systems with global standards like the UNFC. Additionally, it emphasizes a collaborative approach involving governments, industries, and communities to ensure sustainable and equitable resource utilization.
UNFC, Sustainable Development Goals and elaboration of challenges in resource development
- 1. ENERGY United Nations Framework Classification (UNFC) Sustainable Development Goals and Challenges in Resource Development Hari Tulsidas United Nations Economic Commission for Europe
- 2. ENERGY Sustainable Development Goals The ‘Standard Model’ for Planet Earth 2 We still rely on century old models which assure essential products and services only for a chosen few. Therefore, 3.5 billion people, including 600 million in Sub- Saharan Africa today have no access or only unreliable access to energy. UN reforms kick started by the Secretary General in 2017 focuses not on the processes, but on the actual outcomes.
- 3. ENERGY Mining and the society Eroding thrust and confidence 3
- 4. ENERGY Ban on mining Mining is seen as an undesirable activity 4 Mining bans have become part of State policies
- 5. ENERGY Costly mistakes Stalled projects have become more common today • Lengthy wait for the necessary licenses • $2 billion spent in acquisition + $1 billion in exploration and development since 2012 • Local communities believe the activity would hurt the regional tourism industry, destroy forests and pose a contamination risk to the groundwater. • (Later government provided two approvals.) 5
- 6. ENERGY Opportunity To harness the resources for human development Far from being hostage to an incurable resource curse, this generation of political leaders has an opportunity to harness resource wealth for a transformation in human development 6 Kofi Annan, Africa Progress report, 2013
- 7. ENERGY Africa Mining Vision Critical points were intervention is required 7 1. Availability and quality of the resource potential data 2. Capacity to negotiate equitable contracts 3. Good governance 4. Capacity to manage resource wealth 5. Infrastructure development 6. Encompass artisanal and small-scale mining
- 8. ENERGY Mining drains out value and creates waste End product is a mountain of waste Zero waste solution has to start somewhere! Mining and Zero Waste Art of the possible 8 The Canada Mining Innovation Council has launched “Towards Zero Waste” that has support from major mining companies. This has collaboration form industry, universities and government. The goal is to move to net zero waste from mining and minerals processing in the next 10 to 20 years.
- 9. ENERGY Decreasing productivity Uncertain demand Markets in a flux Only innovation can sustain productivity Mining and Innovation Future proofing resources 9 Mine of the Future Big Data AI Block Chain Robotics 3D Printing Autonomous Vehicles
- 10. ENERGY Social licence to operate Shareholder value Partnerships Shared vision Transformative business models Embracing digital revolution Assuring security in operations Healthy and inclusive workforces Integrated management systems Productivity and growth 10 top challenges to mining Building a futuristic industry 10 The top 10 trends mining companies will face in the coming year, Deloitte, 2017
- 11. ENERGY The Trends Future proofing resources 11 Prices Markets will remain subdued for a long time Carbon Carbon neutrality will become a public necessity Technology Rise of technologies already happening End of commodity super cycle, carbon nuertality and ‘dematerialization’
- 12. ENERGY 5 Principle activities to be harmonized For building a sustainable resource industry in Africa 12 System-wide Policy framework aligned to SDGs and AMV Government/Industry Resource management system Economic Capital allocation Businessprocess New models Operational Capability Tailored to national/regional/company situations Total resource industry life-cycle
- 13. ENERGY The structure to understand and manage the mineral sector Applicable horizontally and vertically to the sector Embeds all project risks and opportunities Why UNFC? Part of a global movement for increasing performance 13 UNFC promotes clear thinking and a shared vision
- 14. ENERGY Reserves and resources by themselves are not important “Comprehensive recovery” increases available reserves No “peak resources” Resources redefined Art of rediscovering value 14 How can the reserves and resources be turned into socio-economic value?
- 15. Provides definitions, rules and guidelines Not a single mineral deposit or oil accumulation is the same Each mineral deposit or oil accumulation needs a defined progression pathway ENERGY UNFC advantages A view in 3 dimensions 15 Principles Rules Guidelines
- 16. ENERGY UNFC in 3D Simple, yet flexible 16 Commercial Projects Potential Commercial Projects Non-Commercial Projects Exploration Projects Additional In-situ Quantities Other Combinations Extracted Quantities Codification E1 F2 G3 Economic Viability E1: Confirmed to be economic E2: Expected to become economic E3: Not expected to become economic or too earlystage to determine economic viability Field Project Status & Feasibility F1: Feasibility confirmed F2: Feasibility under evaluation F3: Feasibility not known F4: No project identified Geological Knowledge G1: High confidence G2: Moderate confidence G3: Low confidence G4: Potential accumulation
- 17. ENERGY UNFC in 2D Maps with other commonly used systems What is important are the lines separating the different classes 17
- 18. ENERGY The pathway all the way through production Consider the full life-cycle from the start Resource progression The missing element 18 Who, Why, When, Where, What and How?
- 19. ENERGY Secondary sources for energy or raw materials UNFC specifications for turning “waste” into wealth Recovery from wastes Anthropogenic Resources are wealth not discovered 19 SDG #12.5 - “by 2030 substantially reduce waste generation through prevention, reduction, recycling and reuse.”
- 20. ENERGY UNFC Social and environmental guidelines Social and Environmental Guidelines The essential dimension 20 Value-adding Non-exploitative Regenerative
- 21. ENERGY • State Commission on Mineral Resources of the Russian Federation (GKZ) has bridged its oil and gas classification system to UNFC. GKZ has announced it will bridge its new national solid minerals classification also to UNFC. • Ukraine has been using UNFC for may years now. • The Nordic countries (Norway, Sweden and Finland) have developed standard sub-regional guidelines for applying UNFC to the minerals sector, to making ‘green mining’ a reality and to provide a pathway for demonstrating carbon emissions reductions. • The Ministry of Land and Resources of the People’s Republic of China has developed draft bridging documents to align its national mineral and petroleum systems to UNFC. • The Coordinating Committee for Geoscience Programmes in East and Southeast Asia (CCOP) has decided to develop guidelines for adoption of UNFC as the unifying framework in 14 member countries. UNFC Adoption Increasing use of UNFC 21
- 22. ENERGY AMV and UNFC-AMREC Platform for holistic resource development 22 Africa Mining Vision Knowlede-driven Good goverance Diversification Economic linkages Optimization Artisanal/Samll-scale mining Competetive UNFC-AMREC Principles Generic Specifications Environmental and Social Guidelines Competent Person Guidelines Best Practices Parnerships PARC Reorting Specifications Reserve and Resource Defenitions Specific Project Guidance Competant Person requirements
- 23. ENERGY • Design a system for Africa that provides all the information needed for stakeholders to transparently and efficiently manage oil, gas, mineral and renewable resources • Align the system with innovation and best technological progress • Align the system with business processes including social and environmental impact • The UNFC-AMREC roadmap: • Define the model and structure of UNFC-AMREC • Define public reporting PARC code and put in place Competent Person requirements • Define capacity building requirements The proposed UNFC-AMREC Model Comprehensive system for sustainable development 23 AMV Goals Knowledge driven Sustainability Good Governance Diversification Economic linkages Artisanal mining Competitiveness
- 24. ENERGY Hari Tulsidas harikrishnan.tulsidas@un.org UNECE 02 I 10 I 2017, Cairo Thank you!