A/HRC/18/35/Add.6 scale mining operations continued and, in some cases, intensified the environmental damage, the effects of which are still felt today. 36. In recent years, changes to the regulation and conduct of mining operations indicate a trend towards more responsible mining practices, and offer promising examples of joint environmental stewardship by the Kanak people and mining companies. For example, Société Le Nickel (SLN), a major mining company, has undertaken a number of environmental recovery and reforestation activities and participated in the creation of a fund to enable mining companies to partner with local authorities to clean up mines in use prior to 1975. However, runoff from other open and abandoned mines has not abated. For example, in the northern areas of South Province, Kanaks have expressed frustration over the runoff from open-pit and abandoned mines. According to reports, the runoff clogs streams, suffocating fish, crabs and other living creatures, reduces the quality of the soil for farming and, as it washes out to sea, damages the reef. 37. Mechanisms for monitoring and mitigating the impact of a new nickel-processing plant in South Province has been included in the innovative “Pacte pour un développement durable du Grand Sud,” an agreement between local Kanak customary authorities, the Customary Senate, the indigenous environmental organization Rheebu Nuu, and the Brazilian-owned mining company, Vale-NC.16 The pact ensures Kanak oversight of the environmental impact of the project and incorporates consultation with the Kanak during nearly every phase of project development. It also includes provisions for the reforestation of land beyond the project area, and the creation of a Customary Environmental Consultative Committee to oversee environmental assessments and respond to concerns. Kanak authorities reported satisfaction with the pact and the plans to train staff and managers from among the local population for plant operations. At the same time, they highlighted their concerns over the environmental impacts of the nickel mining and processing operations, and emphasized the need to ensure effective implementation of environmental controls under the terms of the pact. Extractive industries and innovative models to generate income 38. The Special Rapporteur heard a number of Kanak chiefs and representatives express frustration over the absence of economic benefits to their people from the enormous nickel wealth being generated in the country. The Grand Sud pact addresses this concern with an innovative mechanism to deliver economic benefits. While the pact does not provide for profit sharing with the affected Kanak clans or for royalties to be paid to them, it does establish a corporate foundation with a mandate to invest in development projects in the neighboring communities. The foundation, under the leadership of a board of directors composed of customary authorities, Kanak environmental activists, customary senators and representatives of Goro Nickel Company, the joint venture company in charge of developing the mine, will fund projects proposed by local communities. Possible project areas include social and cultural development, including education and training, environmental protection, development of economic activities not linked to mining operations, and any other initiatives contributing to sustainable and participatory development in the area. Goro Nickel has committed to invest 160 million CFP francs (US$1.95 million) per year for the first four years of the pact. 39. Another innovative arrangement to generate economic benefits in which Kanak people can share is in North Province, which is mostly populated by Kanaks. Under the leadership of the Kanak political coalition FLNKS, the Province has entered into a novel 16 12 See Vale, Les Communautés Voisines: Pacte pour un développement durable du Grand Sud, available at http://www.vale.nc/pages/communautes/developpement-durable.html.