8.1 Definition of the System of Responsibilities
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faith with a view to the best interests of the company and to exercise the care, diligence and skill that a reasonably prudent person would in comparable circumstances.
Duty of care responsibilities now requires the company’s directors to provide oversight of the material risks of a corporation. Oversight of tailings dam risks is typically
assigned to the board committee mandated to oversee sustainability issues.
Mining companies must accept full responsibility for the location, design, construction, operation, decommissioning and closure of tailings facilities in a manner
that ensures its risk management strategies provide an acceptable level of protection
for the safety, health, and welfare of the public and the environment. They should
discharge this responsibility and express their commitment to the highest standards
of risk mitigation through the adoption of strong policy statements based on rational
risk assessments, the establishment of a comprehensive governance framework and
the implementation of comprehensive assurance activities.
Finally, it may be a company’s objective to ensure dams are designed and operated
to the highest standards but it is impossible for a company to ensure that its facilities
will be risk free.
To develop robust risk management systems and processes to identify and mitigate
material risks, some mining companies have adopted ISO 31000:2009 Risk Management—Principles and Guidelines (ISO 31000, see Sect. 14.1) to provide a framework
for the management of all corporate risks. The introduction to the standard states:
…the adoption of consistent processes within a comprehensive framework can help to ensure
that risk is managed effectively, efficiently and coherently across an organization. The generic
approach described in this International Standard provides the principles and guidelines for
managing any form of risk in a systematic, transparent and credible manner and within any
scope and context. (ISO 31000:2009)
Board leadership is an absolute necessity for a company to achieve high levels
of performance. A company’s tailings management programs must be driven from
the top. Without such support, those responsible for designing and operating a tailings facility will have more difficulty in gaining acceptance and receiving adequate
resources for what needs to be studied and designed and then operated to the highest
standards.
The Chief Executive Officer is appointed by a company’s board of directors and
is responsible for the execution of a company’s strategy and policies within the
limits of the CEO’s delegated authority. With regard to tailings management, the
CEO will be guided by corporate policies approved by the board. Corporate risk and
sustainability policies will provide general guidance, but for material risks such as
tailing management specific policies and standards will also be required.
To implement the requirements of the policies as they apply to tailings management, a CEO will assign responsibility for their development and implementation to
key members of the company’s corporate office. In a large company this may include
the chief operating officer (COO), the Chief Risk Officer (CRO), the sustainability
officer and the officer assigned responsibility for the internal audit function. The
assignment of responsibilities on specific aspects may be a combination of individual and team efforts. However, what will make it all work will be the demonstrated
105
faith with a view to the best interests of the company and to exercise the care, diligence and skill that a reasonably prudent person would in comparable circumstances.
Duty of care responsibilities now requires the company’s directors to provide oversight of the material risks of a corporation. Oversight of tailings dam risks is typically
assigned to the board committee mandated to oversee sustainability issues.
Mining companies must accept full responsibility for the location, design, construction, operation, decommissioning and closure of tailings facilities in a manner
that ensures its risk management strategies provide an acceptable level of protection
for the safety, health, and welfare of the public and the environment. They should
discharge this responsibility and express their commitment to the highest standards
of risk mitigation through the adoption of strong policy statements based on rational
risk assessments, the establishment of a comprehensive governance framework and
the implementation of comprehensive assurance activities.
Finally, it may be a company’s objective to ensure dams are designed and operated
to the highest standards but it is impossible for a company to ensure that its facilities
will be risk free.
To develop robust risk management systems and processes to identify and mitigate
material risks, some mining companies have adopted ISO 31000:2009 Risk Management—Principles and Guidelines (ISO 31000, see Sect. 14.1) to provide a framework
for the management of all corporate risks. The introduction to the standard states:
…the adoption of consistent processes within a comprehensive framework can help to ensure
that risk is managed effectively, efficiently and coherently across an organization. The generic
approach described in this International Standard provides the principles and guidelines for
managing any form of risk in a systematic, transparent and credible manner and within any
scope and context. (ISO 31000:2009)
Board leadership is an absolute necessity for a company to achieve high levels
of performance. A company’s tailings management programs must be driven from
the top. Without such support, those responsible for designing and operating a tailings facility will have more difficulty in gaining acceptance and receiving adequate
resources for what needs to be studied and designed and then operated to the highest
standards.
The Chief Executive Officer is appointed by a company’s board of directors and
is responsible for the execution of a company’s strategy and policies within the
limits of the CEO’s delegated authority. With regard to tailings management, the
CEO will be guided by corporate policies approved by the board. Corporate risk and
sustainability policies will provide general guidance, but for material risks such as
tailing management specific policies and standards will also be required.
To implement the requirements of the policies as they apply to tailings management, a CEO will assign responsibility for their development and implementation to
key members of the company’s corporate office. In a large company this may include
the chief operating officer (COO), the Chief Risk Officer (CRO), the sustainability
officer and the officer assigned responsibility for the internal audit function. The
assignment of responsibilities on specific aspects may be a combination of individual and team efforts. However, what will make it all work will be the demonstrated