Audit Solutions

Challenge: Undertake an Environmental and Social Audit prior to the decision to provide finance for a major mining project in the Asia-Pacific region. Audit criteria to include EIS commitments as well as compliance with relevant international sustainability guidelines such as World Bank Guidelines, International Finance Corporation (IFC) Performance Standards, and the Equator Principles.

Strategy: Graham A Brown & Associates assembled a qualified and skilled audit team consisting of environmental and social auditors, who travelled to the Sepon gold and copper mine in Laos to complete the audit. The audit scope included all operations and involved detailed community survey and audit processes to determine the status of the environmental and community development programs. The audit results were presented in a formal audit report to the ANZ Bank to inform the lenders of the status of current environmental and social management practices, and future intentions, relating to the proposed loan facility. The report included a rating system to provide benchmark results and allow for future comparison and performance trending.

Results: Audit completed on time and on budget. Good news stories relating to the environment included water security, reduction in reliance on slash and burn agriculture (creates smoke, damages soil and produces sediment runoff), stabilisation of slopes, control of sediment from mining activities, and revegetation of disturbed areas, often with species that enhance the productivity or aesthetics of the area. Other good news stories include the clearing of UXO, enhanced security within an area and the reunification of families that have been separated for many years through wars or economic necessity.

Follow-up: Graham A Brown & Associates have been involved with ANZ Bank in completing environmental and social audits of other facilities such as the Pan Australian 'Phu Bia' Gold Mine in Laos and the Climax Mining Ltd ‘Didipio’ Gold Mining Project in the Philippines. We continue to complete environmental and social audits on behalf of the mining companies themselves, independent of any bank lending requirements.