CSR Abroad – Economic Development and Local Procurement
Companies may make contributions in the area around a project as part of building and maintaining a positive relationship with local community stakeholders. For example, companies might generate local job opportunities, procure goods locally, support local initiatives, and invest in communities. These contributions can bring lasting, much-needed benefits to local communities. Below are some examples of how Canadian mining and exploration companies have contributed to sustainable local economic and community development:
Responses by Company
Agnico Eagle Mines Limited
The company encourages local economic and community development through a policy for local contracts everywhere, through the creation of women cooperatives in Mexico to diversify the economy, and through a policy of local employment: our Mexican and Finnish mines have 0 expatriates.
The company has contributed to a dental and medical clinic in Mexico, investments in cancer research, investments in education in Mexico, and investments in sports for youth everywhere.
We share with local communities our supply needs and encourage the creation of local suppliers and entrepreneurs. In Mexico, we supplied material for the construction of classrooms. In Finland we contributed money for the construction of sports facilities.
American Potash Corp.
Advancement of the project towards development would intrinsically contribute to local economic development and to local employment. Currently the area is highly weighted on seasonal service industry level jobs.
American Vanadium Corp.
The company encourages engagement with local planning departments to ensure project development is aligned with local and state plans. The company has formal programs under development, but local resources are used to the maximum extent possible. The company is still in the planning stage, but contribution to local infrastructure is a key element of the development plans.
Angkor Gold Corp.
The basis of the economy is agriculture. Angkor gold established a demo garden to do research on cash crop potentials and aquaculture, so that villagers can 'see' the results of alternative or diverse applications in agriculture that can triple or 5X their existing income, without buying more land. We try to demonstrate how to maximize the land use to increase income, increase nutritional intake for the villagers, and generally get more value out of their current assets.
The company has contributed to local education by placing a training centre at Banlung where students attend regular classes in English, computers, GPS mapping, arts, and other classes, as well as educational kids' summer camps during the 'summer holiday' season. For health initiatives, containerized medical supplies and equipment are brought from Canada to Cambodia on an annual basis after we complete needs assessments in health centres and regional hospitals in Cambodia.
We work with a variety of NGO's - some global like Oxfam and Plan, and some local like Highlander Association and DPL Cambodia. Their representation on the village council is important to have perspective on the development of the natural resources.
The company’s sample bags (40,000 per year) are made by local village women who we taught how to sew. Food, equipment, drilling, and UXO (unexploded ordinance) clearance is all done by local companies.
Angkor Gold participates in many water solutions in over 20 villages, in building roads, in equipping health centres, and providing needed medical supplies to over 10 health facilities in each year. Some examples include Container #7 reaching to over 6 health facilities, building a 3-room school in Okalla, assisting with school supplies in several primary schools each year, roads and 2 bridges in Pursat, solar power in HC, etc…
AuRico Gold Inc.
The company contributes to local economic development by ensuring, where possible, we procure and purchase items from within the local and provincial communities. The sites employ locally where possible and each site includes members of the local Ejido communities. Further detail can be found in our annual sustainability reports located on our website. The company aims to source, where it can, consumables and products from within the region in which we operate. In 2014, 22% (representing over $60 million dollars) of the total purchases for our two operating mines were made from the local or regional areas in which we operate.
In education we have provided scholarships for the children of employees at our Mexican operation and students who live in the local communities that neighbour the operation. We have supported the building and development of a medical centre for the local community in Mexico. We have also provided eye testing and eye glasses for the school children located in the local Ejido community.
The company contributed funding towards the construction of a sewing workshop building and the skills development of the local Ejido Women. It also contributed funding towards the construction of a farming project in conjunction with a local trade school. Wherever we operate we strive to provide business opportunities for the local communities.
Created in 2005 and operating solely in the DRC, the Banro Foundation has a mandate to improve the quality of life and opportunities for individuals and communities near Banro’s operations. The priority investment areas of the Banro Foundation – Education, Health and Social Infrastructure Development – were selected following consultations with local communities and their leaders, central and provincial government officials and Catholic Church authorities in the months leading up to the commencement of Banro’s exploration activities in November 2004.
The Banro Foundation also provides Humanitarian Assistance as required and helps to sponsor major community events. Beginning in 2014, it will also focus on fostering sustainable agricultural projects in communities near Banro’s operations.
Among the principles guiding the work of the Banro Foundation is a focus on needs identified by local community leaders, with priority given to projects that benefit communities as a whole. Promotion of opportunities for women is an important guiding principle of the Foundation.
Since its creation, the Banro Foundation has completed over 65 projects with a total value of about US$4.46 million. The Foundation is a registered charity in the DRC; a sister charity in Canada, the Banro Congo Charity, raises funds for construction of health clinics and schools in the DRC. In 2013, the Banro Foundation employed in the DRC eight Congolese nationals and two foreign nationals of Congolese origin.
Since completing its first school in 2009, the Banro Foundation has now constructed 10 schools and rehabilitated two more schools. Built to serve approximately 5,000 students, the schools are educating a current total of 7,300 students. All 12 schools have also been outfitted with desks and furniture.
In Kindu, Maniema Province, the Banro Foundation completed construction of a 12-room women’s residence for 24 students at the University of Kindu. The new facility, the first of its kind for the Foundation, will be inaugurated at a public ceremony during the first quarter of 2014. Total construction and equipment costs were US$250,000.
Non-capital education programs also continued through 2013 to promote educational opportunities and access. This included a teacher retention program which pays a basic salary to 158 teachers and principals at schools built or rehabilitated by the Foundation, with the goal of retaining educators in remote areas and boosting school participation rates for girls. Total cost of this project in 2013 was US$110,200.
The Foundation also continued to finance a scholarship program which currently supports five high achieving secondary school students from the Twangiza area at the respected Institut Technique Fundi Maendeleo in Bukavu, at a cost of approximately $10,000 per year. The Banro Foundation also partners with the Julian Barings Scholarship Foundation, which supports a Congolese graduate student at an elite university abroad. The current participant is Erick Senga, a Metallurgist employed by Banro, who is studying at the University of Pretoria in South Africa. For several years, the Banro Foundation has also provided financial support for a scholarship program for university students from Maniema Province.
Other ongoing projects include support for the Makalanga Women’s Centre in Lugushwa, which teaches literacy, sewing, bread making, soap making and hair dressing skills to local women. The Women’s Centre was built by the Foundation in 2011. The Foundation continued to provide financial support for the Don Bosco Foundation in the capital city of Kinshasa which rescues street children and provides schooling and skills training programs for over two thousand children and youth.
The US$174,000 Salamabila Referral Hospital in Maniema Province near Namoya will be the main health facility serving a catchment area of about 100,000 people. It was built partly with funds raised through a fundraising event hosted by the Banro Foundation in Toronto in September 2012. The Salambila Hospital was also Banro’s 2012 Commitment to Action as a member of President Bill Clinton’s foundation, the Clinton Global Initiative (CGI).
The Banro Foundation in 2013 also moved toward completion of the new Tukolo Health Centre, Phase I in the town of Kamituga. On October 19, 2013, local community leaders and the Banro Foundation laid the cornerstone for the new Biyombe Health Centre near Lugushwa.
These three new facilities follow two other health care facilities which the Banro Foundation has built in the past. In 2012, the Foundation completed construction of multi-purpose women’s health unit at the world-renowned Panzi General Referral Hospital in Bukavu. The Kigumo health clinic was opened in Lugushwa in 2010.
We partner with many local and international NGOs. For example, in a program to rescue child artisanal miners and provide them with a future, we partnered with a local NGO, Association for the Protection of Families and Children, in integrating 100 former child artisanal miners into a 3 year educational program with psychological counselling, and providing another 100 older children with livelihood skills training programs, such [as] sewing, carpentry and mechanics.
In constructing 10 new schools and rehabilitating two more schools, the Banro Foundation is also addressing the challenge of low enrollment levels for girls. Parents must pay teachers’ salaries and often cannot afford to pay for daughters. Other obstacles to female attendance include a lack of proper school latrines and the role of girls in performing household chores such as fetching water. In tackling this challenge, the Banro Foundation in 2012 introduced a “teacher tuition” program which pays a basic salary to teachers employed in schools built by the Foundation. We also build proper latrines at each new school and invest in potable water projects, which help relieve girls from household chores, thus freeing up time to attend school.
In the remote town of Lugushwa, at the request of local women, the Foundation in 2011 built a women’s resource centre, which today offers courses in basic literacy, sewing, bread making, soap-making and hair dressing. The women run the centre and those with skills do the teaching. Well over 130 women have graduated from these courses so far. We believe this centre could serve as a model for other such centres across the DRC.
In 2012, the Banro Foundation built the new US$121,000 multi-purpose women’s health unit at the world-renowned Panzi General Referral Hospital in Bukavu. The Panzi Hospital treats an average of 3,500 women each year, free of charge. The multi-purpose women’s centre supports prenatal consultation, family planning and HIV sensitization, child health and other activities related to women’s health. It was built using funds raised through a charity golf tournament held near Toronto in 2011.
Community initiatives undertaken by Banro’s Twangiza Mining operation include adult literacy and numeracy training. A total of 1,896 residents in the chefferie of Luhwindja successfully completed two literacy training phases of six months each. 95 percent of the beneficiaries are women. Phase III of the program is mainly numeracy training, with 272 individuals completing the program by the end of 2012. The same program is offered in the neighboring chefferie of Burhinyi, whereby 1,210 adults have been enrolled in literacy training phase and another 445 adults in numeracy training.
In the South Kivu provincial capital of Bukavu, the Banro Foundation began work in 2012 with a Canadian NGO, ERDO (Emergency Relief and Development Overseas), to implement on an experimental basis a micro-financing project for 225 women in the neighborhood of Essence.
Banro sources almost all materials and equipment within Africa, primarily from the Republic of South Africa, a key source of industrial goods and mining technical consulting services. Kenya, which is the main portal for goods coming from RSA via the port of Mombasa, also plays a growing role as supplier, as does Uganda, a reliable manufacturer of light industrial goods, including piping, pumping engines, fencing and white goods, as well as furniture and domestic soft goods. The mining centre of Mwanza in Tanzania remains an important source of mining equipment. Excluding purchases in the DRC, Banro in 2013 sourced a total of US$106 million in goods and services in Africa.
Banro is a member of the Congolese Business Association in order to expand its universe of potential local suppliers, particularly at the provincial level. The Company also contractually requires its provider of catering services to source foodstuffs from local farmers.
In 2013, the Company spent US$100.6 million on goods, services and wages in the DRC. These purchases included primarily foodstuffs, construction services, construction supplies and materials, banking services, rental accommodations, transportation services and clothing, as well as salaries and wages
In May 2013, the Banro Foundation completed construction of one its most ambitious undertakings to date. This was the Nabuntalaga marketplace, a large regional marketplace built at a cost of US$124,700 and serving the surrounding region at Twangiza. Regional markets contribute to economic development by creating a focus for the commercial exchange of goods and increasing the velocity of money in circulation. The market quickly filled to capacity. Thus in late 2013, the community leaders recommended that the Foundation focus next on expanding the market with the addition of two additional sets of stalls. This expansion is being done under the terms of the Memorandum of Agreement (MOA) with the community. Preparatory work on a new community soccer pitch in Luhwindja, also being built under the MOA, began in late 2013.
The 2013 projects represent a departure for social infrastructure spending, which in the past has focused on such initiatives as the construction or re-construction of over 100 kilometres of roads and bridges, the building of potable water systems, which today serve a total of 33,000 people in South Kivu province, and construction of new community basketball courts.
Barrick Gold Corp.
At most of our operations, employees tend to come from the country and communities where we operate. Creating employment opportunities for local community members is an important way we can contribute to social and economic development. Recruiting talent locally increases the positive benefits to host communities by helping build new skills and creating new sources of income. Barrick also benefits: local hiring can potentially provide us with significant cost-savings on recruitment, accommodation and transportation that might be required for non-local employees.
Our Community Relations Management System (CRMS) establishes requirements in this area, including the development of local employment plans, which define measurable targets and guide local employment efforts over the life of the mine. At sites, the human resources function develops and leads the local employment plan, supported by community relations teams. In general, local employment plans integrate recruitment and retention of local employees into the broader human resources system/approach. This includes an assessment of the skills and capabilities available in a the local community, and the development of recruitment and retention programs that are targeted specifically at local communities, along with guidance on helping address skills shortages and creating a culturally-appropriate work environment.
As a large-scale mining company, we spend billions of dollars each year on goods and services in support of our mining activities. We are actively working to increase our local spending as this can have a significant positive effect on local economies. Our Community Relations Management System (CRMS) and Barrick Supply Chain group’s Local Procurement and Contracting Standard guide our community relations and supply chain teams to develop the capacity of local and regional suppliers, increasing their access to supply opportunities, and helping us buy more locally.
- Preparing local suppliers for success in rural Zambia
- Selling their curds and whey
- Nsabo Yetu program empowering women in rural Zambia
Everywhere we operate Barrick provides support for education in a number of ways: investing in teacher training; providing scholarships; donating classroom materials, books and computers; and developing adult literacy programs and small business training. We do this in the belief that access to a quality education is at the root of healthier and prosperous communities. See links at the end for examples of educational initiatives.
Barrick also supports numerous, wide-ranging community health programs. These programs help promote health and wellness among our employees, their families and the wider communities in which they live. To assess community health issues and risks and to map out mitigation strategies, Barrick completes Health Impact Assessments (HIAs) and/or baseline Health Surveys at relevant projects and operations. Our focus is on small, targeted health interventions specific to the regions where we operate. Examples include funding for HIV/AIDS awareness programs and clinics near our mine in Papua New Guinea, an oral hygiene program for children in Argentina, and the distribution of bed nets to combat malaria in communities where needed. In developed countries such as Australia, Canada and the United States our community health investments consist mainly of targeted donations, including to advances in neurosurgery at the Toronto Western Hospital, the Northern Nevada Juvenile Diabetes Research Foundation, and health education for children through a mobile learning centre in Australia.
- Community comes together for voluntary counseling, testing in Zambia
- Transferring knowledge
- Barrick recognized for youth technical education in Papua New Guinea
- Barrick continues its support of Nevada’s Great Basin College
Our community relations staff work closely with communities to create and implement integrated development programs that address local priorities and concerns. Recognizing that our mines may operate in some communities for 20 years or more, we focus on long-term sustainable development and often partner with organizations to assist us. Over the years, a wide range of organizations, agencies and institutions have become important partners with Barrick in this effort. These partnerships vary greatly, from grassroots NGOs, to environmental non-profits, from local governments to global organizations offering best practices for addressing difficult social and developmental challenges. Whether local, national or international, we value the expertise partners bring, which often complements the company’s programs in such areas as health, education, water access and poverty alleviation. We have forged partnerships with a number of well-respected organizations over the years, including World Vision, CARE, the Clinton Global Initiative, the UN Global Compact, White Ribbon, and numerous others.
For Barrick, infrastructure projects are tailored to local community needs and can include building schools and medical clinics as well as the construction of local services such as water supply and sewer projects.
Brazil Resources Inc.
We hire employees locally to work on our projects and purchase supplies, equipment and services from local vendors whenever possible.
Cameco does not specifically target infrastructure investments, but we receive many requests for investments from local communities to support these types of projects because many of these communities have infrastructure deficits. Through our community investment program we have provided donations that have gone towards the building of community arenas, fire halls, and educational institutions.
Delta Gold Corp.
This is a high priority area for us. We are a business. We understand the certainty that buying and employing locally brings to our investments.
Goldcorp contributes to the economic development and wealth of host communities and countries through royalties and taxes paid directly to governments, as well as through: wages and salaries paid to employees and contractors; job creation through the expansion of existing projects and new growth projects; payments to suppliers for goods and services; indirect job creation and small-business development in surrounding communities and towns; upgrades to local infrastructure; financial support for community development; and direct voluntary royalty payments to local communities.
All of our operations have an impact on their local and regional economies. Therefore, we have not attempted to identify particular sites that may have a greater or lesser impact. We have defined our local areas of influence as those communities immediately surrounding the mine; regional areas of influence as the broader area surrounding the mine, often equating to a state or province, and usually including one or more large population centres; national areas of influence as the country in which the mine is located; and international areas of influence as all countries other than the host country.
Goldcorp recognizes that we have the ability to impact local economies around our sites in a positive way. Through local hiring and procurement, we actively seek to extend the economic and social benefits of our operations beyond the mine boundary. We are in the process of developing policies and procedures that will help implement this goal. We have a number of site-specific programs already in place, such as the support for trade schools in Mexico and Argentina, which will contribute to a strong local skilled labour force.
Goldcorp continued to contribute to the health and well-being of the communities around us by supporting local sports and recreation programs, medical research and infrastructure, local hospital foundations, health and sanitation awareness campaigns and other such programs. Some notable health initiatives in 2013 included sponsoring a breast cancer screening clinic in Chile near our El Morro project and a donation of orthopedic supports at our Peñasquito mine in Mexico.
Education is a key focus area for Goldcorp because it lays the foundation for a brighter future. We endeavour to support all levels of education. We contribute to community investment programs, such as literacy and education programs at our El Sauzal site, as well as donate to local schools and universities. In 2013, we continued supporting the very successful CONALEP scholarship program in Mazapil, Mexico, which provides college-level training in skilled trades to local youth.
We actively seek out partnerships with local communities, government, civil society and non-governmental organizations. Since 2012, we have used a Stakeholder Engagement Tool developed in partnership with CARE Canada. With CARE’s extensive expertise in community development and their engagement approach, which reaches out to the most marginalized groups, Goldcorp sites have the opportunity to learn best practice in the field. The Stakeholder Engagement Tool outlines our guiding principles for successful stakeholder engagement.
We give preference to local businesses wherever possible, provided they meet minimum safety, quality and cost requirements. However, we are always conscious of the potential distortion that our purchasing policy can have on local economies and we take care to keep unwanted impacts to a minimum. In 2013, 42% of goods and services were purchased from local and regional sources. This amount is a slight increase from what was reported in 2012. High-cost capital equipment (including trucks, shovels, mills and processing equipment) and most bulk reagents cannot be sourced locally.
HudBay Minerals Inc.
We recognize that local procurement and local employment are of mutual interest to our company and our local communities, and we recognize that positive local economic development will enhance the stability of our relationships with our local communities. We have informally encouraged our sites to implement programs to support local employment, local procurement, and to contribute to local economic development - and we are in the process of developing corporate standards for community investment and for local procurement and employment. In practice, we have formal community investment and community development agreements with our neighbouring communities in Peru.
Our contributions to local education include specific programs to support local schools and teacher skills in Peru, university and college scholarship programs in Peru, and support to specific skills development programs at each of our locations (e.g. a heavy equipment operator training program for local community members in Peru; and a formal training agreement signed with the Ministry of Labour in Peru). Local health initiatives in Peru have included assisting local communities in accessing government healthcare resources - such as funding a study in one community to define requirements and obtain government funding for an expanded healthcare facility. In our education and health programs we have a strong preference for supporting and participating in government or industry-sector programs rather than creating Hudbay specific programs.
One such partnership example is our previously described Multisectoral Development Committees in Peru which are committees of Hudbay and community members that lead the implementation of the development plan for each rural community and whose members are the ones who decide how to boost the priority areas (education, health, nutrition, productive development and infrastructure).
In Peru we have had numerous local procurement initiatives, including programs to lease vehicles from local community enterprises, and a program to develop local catering suppliers (including training for community members in commercial food preparation, and inspection programs). In Peru we have initiatives to assist local providers to qualify for contracts with Hudbay.
For example, in Peru through the Multisectoral Development Committee funding was provided for a local community to implement a water distribution and sewage collection and treatment system.
Kinross Gold Corp.
Our approach to generating economic value consists of two complementary strategies: first, by maximizing the value generated through rigorous financial discipline and a high-performance operating culture; and second, through careful consideration of our recruitment, procurement, and community investment activities to ensure host countries and communities have opportunities to benefit from that value. We track the distribution of our direct economic impact. The amount is significant: in 2013, about 78% of total expenditure by our operations was spent in host countries.
In addition to tracking in-country spending, we also track spending at the local, regional, national and international levels. In this case “local” applies for suppliers registered as businesses within the appropriate “local” administrative unit (this varies by site but generally corresponds to municipality, county, or district); as “regional” within the sub-national administrative unit (generally corresponding to state or provincial level); and as “outside region” for all other spending within the host country.
The 2013 Benefit Footprint graph shows the breakdown at the sub-national levels for 2013. In aggregate, 26% of our spending was at the local level, 11% at the regional level, and 42% elsewhere within host countries. About 22% of our spending was outside host countries.
Understanding our benefit footprint helps inform our strategies for community engagement, community investment, local procurement, and recruitment. We are also working to measure the social impact of the benefit footprint. For example, sociological surveys have shown reductions in poverty and unemployment in local households around the Tasiast project (see case study), and a review of our community contributions at Fruta del Norte has identified several tangible results as we wind down our activities in Ecuador (see Looking Back at Kinross in Ecuador).
- 2013 CR Report (PDF 5.6 Mb – pages 31-33, 39)
- Our Strategy for Value Distribution
- Measuring our Benefit Footprint
- Corporate Donations and Sponsorships
Kinross’ Chirano operation initiated the development of a new Corporate Responsibility Strategy in mid-2012. Developed in consultation with the Community Consultative Committee (CCC), which is comprised of stakeholder representatives from traditional authorities including tribal chiefs and security agencies, and local government, farmers and institutions, the updated strategy is currently awaiting final ratification. In the interim, we continue to support community priorities, such as educational and sanitation infrastructure as part of our community investment program.
Our community investment strategy has reached over 120,000 beneficiaries during the reporting period through a range of initiatives:
- We contributed $433,120 to educational initiatives including funds to build three local schools in the communities of Etwebo, Akoti and Paboase. The new schools reduced overcrowding in existing schools, replaced unsuitable buildings, and enabled children who previously travelled to other communities to attend school to stay in the local community. Following construction, the schools were transferred to the Ministry of Education.
- Funding was also directed to building a new kindergarten and primary school for approximately 275 children in Obrayeko, which significantly reduced overcrowding in the Chirano schools. Kindergarten blocks for Kwame-Aninkrom and Lawerkrom, and a block of six classrooms for Akasso, were also built. In Etwebo and Akoti, support was also provided for extra classes, desks and furniture, and reading and writing materials.
In partnership with the NGO, Santé Sans Frontière (SSF), our mobile medical clinics bring critically needed health care to 16 villages and two community health centres to communities in and beyond the Tasiast area. Since the clinics were introduced in 2012, they have served over 5,500 people spread out over the 16 villages, including over 1,600 children. To learn more, see our video on the mobile medical clinics. We continue to provide access to site medical facilities for emergency care and basic health care for populations living around the Tasiast mine.
Our local business program is intended to help suppliers develop the capacity to effectively compete and win business from Kinross while meeting the Company’s standards for due diligence, quality, health, environment and safety. Our aim is to purchase a large percentage of goods and services within the local communities, regions and countries where we operate, with the target of procuring 75 - 80% of our goods and services within the host country. Each local procurement program is managed by the supply chain representative responsible for implementation and is administered by a cross-functional committee comprised of representatives from community relations, human resources, operations and maintenance, health and safety, communications, legal, regional leads for local business programs, and other Kinross stakeholders.
Our operations partner with government and other entities to help build schools, health-care facilities, civic gathering places, and other vital infrastructure in the communities where we operate. In 2013, about 6% of our community investment went to infrastructure development. In Ghana, Kinross’ Chirano operation has made significant contributions to the local communities, including construction of schools, water bores, roads, and common facilities.
At Tasiast, a survey conducted by Mauritanian sociologists found that the number of local households living below the extreme poverty line had been reduced by more than half since 2011, from 28% to 13%, the unemployment rate had declined from 47% to 24%, and per capita spending had doubled.
- 2013 CR Report (PDF, 5.6 Mb – page 34)
- Case Study: Creating Jobs and Empowering People in Mauritania
Since 2009, we have provided micro-loans, seed capital, technical assistance and infrastructure support to approximately 412 APEOSAE (Small Organic Farming Exporter’s Association) members and approximately 500 coffee farmers who produce organic and fair-trade coffee. In 2009, APEOSAE’s production doubled to nearly 250,000 pounds as a result of increased access to new export markets in the European Union.
Kinross sponsored research by Russian institutions to generate a White Paper on how Russia can attract more foreign investment in the mining sector, which led to some positive reforms in the sub-soil regulatory framework.
- 2011 CR Report (PDF 5.6 Mb – pages 33-34)
- Case Study: Encouraging mining investment in Russia
Initiatives to enhance the benefits in Paracatu include our local supplier pre-qualification program, the annual Partnership Seminar process for selection of community projects for support by the mine, and several education and vocational training programs in partnership with local schools and universities. Our team was also an active participant in the development of Paracatu’s Sustainability Development Plan 2030, a community-driven initiative to develop a planning document that outlines key objectives for the economic, environmental, social, and institutional sustainability of the city.
- 2011 CR Report (PDF, 5.6 Mb – pages 35-36)
- Case Study: Supporting community sustainability at Paracatu
We employ approximately 2,200 employees and contractors at our operations in Russia (of whom 98% are from Russia), purchased goods and services from about 50 local suppliers generating $90.0 million in local procurement within Chukotka, and contributed about $105.5 million in taxes, royalties and payments to governments within Chukotka.
Since being established in 2009, the Kupol Foundation in Russia has awarded financial support to 46 projects. Under its governance structure, funding recommendations are made by an independent board of regional stakeholders. To support transparency, a “community audit” of Foundation projects was introduced in 2013 and openly reviewed by community stakeholders. Going forward, the audits will be conducted annually. In December 2013, the Kupol Foundation was expanded to reflect our increased presence in the region following the opening of our Dvoinoye mine.
Our Maricunga operation in Chile provides financial assistance and scholarships to Colla students. Employee volunteers from La Coipa team up with students from Liceo José Antonio Carvajal, a technical school, to help them hone the wiring, plumbing and other skills they have learned in the classroom.
MBAC Fertilizer Corp.
The objective of the Employment Management Plan during operations is to ensure that the local communities benefit from the Project. The company designs training programs with Local Training Organizations; gives priority to project affected people; informs local suppliers and contractors of the requirements to comply with the procedures and generally develops the local supply chain to support its operation activities.
The company through local health authorities will monitor the health and co-participate in health and disease prevent campaign. Special speeches and education training in schools are being continuously applied with focus in environmental aspects, safety at home, and sexual education.
The company has a partnership with the local communities of “Brejao” in the implementation of an organic vegetable garden (similar to a Mandala), by supporting it with resources and training. The company runs a partnership program with IEL for the development and empowerment of local suppliers.
The company has a program for the development and empowerment of local suppliers. The company supports local suppliers and contractors on the requirements to comply with procedures, and generally develops the local supply chain to support its operational activities.
The company invested in a 250km power line that, not only supports the operation, but also has the capacity to supply the neighboring cities. This transmission line is not a dedicated facility to the project, but its implementation is planned to improve the power availability for all the Southeast Tocantins states. The company maintains the surrounding rural roads that benefit the surrounding communities and farmers. The company provided complete designs for a new elementary school in the Lagoa da Pedra community.
Nortec Minerals Corp.
The Company not only fully believes in wealth creation for its investors, but also for the potential future wealth of the people and region in the Country that the Company is conducting operations.
Nortec primarily hires only local employees from the region, and attempts to minimize any foreign hiring. Nortec believes that only locals will contribute strongly to regional development, and that foreign workers do not enrich and develop firm connections with local communities. Nortec currently operates in Finland, and we use a local subsidiary with local staff, a local legal service, and local drilling companies.
Nortec helped fund a local school in Ecuador in the mid-2000s as part of its exploration programme. Nortec is no longer involved in Ecuador, but the company attempted to work closely with the local community and improve both communication and infrastructure.
NOVAGOLD Resources Inc.
Our agreements with native landowners require us to preferentially hire their shareholders and afford contracting opportunities to their businesses. We take these requirements very seriously and have an excellent track record of local hire and workforce development.
We invest significantly in community education programs as well as sponsoring our own training efforts. We are also strong advocates of promoting health and safety and wellness initiatives. For example, on our Donlin Gold Project in Alaska where subsistence fishing is an integral part of people's lives, we have specifically sponsored regional safe boating programs.
Sustainable development is integrated into each of our partnerships with our native landholders. We have also partnered with the National Fish and Wildlife Foundation in Alaska to help to preserve sensitive fish and wildlife species, including specific projects targeting salmon populations in the Donlin Gold Project region.
Specific investments have been made in schools and community infrastructure throughout the Donlin Gold region in Alaska.
Sherritt International Corporation
In Madagascar, we have a "buy local, hire local" policy in place. We also have a local business initiative for our procurement needs and a business training center to train individuals and businesses on general business skills. In some of our more established operations, almost 100% of our workforce is from the local community.
In Madagascar, we have an HIV/AIDS awareness and prevention program, targeted at the community and our workforce. We also contribute to community efforts to improve enrollment, retention, and achievement rates in primary schools.
We have partnered with a range of social and environmental organizations -- from UNICEF to the WWF -- in Canada, Cuba and Madagascar. We also work closely with local communities in Cuba and Madagascar on sustainable development and community development priorities. In Madagascar, all current partnerships are associated with Ambatovy's Social Investment Fund dedicated to making investments that are effective, transparent, and sustainable. The Social Investment Fund represents Ambatovy’s commitment of $25 million to support these practices and the company's goals for social development.
In Madagascar, we have a large database of suppliers of which 2,700 are local. In 2013 alone, local procurement totaled over US$440 million.
In terms of voluntary contributions, we have contributed to roads, schools, university buildings, health care facilities, government buildings, and markets in Madagascar. In Cuba, we regularly support the improvement of local infrastructure through our Cuba CSR program. Some recent examples include: providing public lighting and also contribute to the maintenance of it; refurbishment of a seniors home; lights and electrical materials for a local hospital; two buses for public transport; air conditioning for a local hospital; materials for the maintenance of schools; and bins for the public service of garbage collection to name a few.
Stans Energy Corp.
We support local welfare in the village nearest the mine site. The villages we have helped out that are close to our mine site and processing plant are the villages of Ak-tyuz and Orlovka, both small, perhaps several hundred populations and are very poor. The financial support we have dedicated to a variety of problems has totalled roughly $100,000 p.a. for several years.
Some specific projects have been: repairing the water supply to the village, water intake and delivery pipes, repairs to roads, (mostly mud tracks), school repair –broken windows, painting, heating system, school books, computers, and financial support for retired seniors and veterans. We also purchased a small bus so that children in Kashka village could be ferried to school in Orlovka.
In addition, the company contributed to repairs to village school, funds for purchase of supplies, and the donation of several computers.
Local procurement programs mean finding the best price or equipment available from two or three local suppliers. Some equipment is sourced wherever it can be found in the region, such as electrical motors from Ukraine, items from Russia, etc.
Where possible the company hires locals; e.g. plant and property security and general labourers.
Strata Minerals Inc.
Whenever possible, procurement is made via local suppliers/contractors/etc.
Suncor Energy Inc.
We have provided equipment funding, instructor training and curriculum development for trade qualification in Libya.
We have also participated and partnered with the following groups:
- Boston College Center for Corporate Citizenship
- World Business Council for Sustainable Development
The company identifies opportunities for enhancing local economic well-being by fully training diamond drill crews and core handling, as well as staffing local chefs.
The company contributed to local education and health initiatives via a hygiene and food handling training, as well as personal protective equipment use training.
The company contributes to local infrastructure in local road upgrades and contributes to local education through school uniforms and computer equipment.
U.S. Oil Sands Inc.
The Company is hiring about 30 local residents. The type of work generally commands a good wage level therefore increasing the standard of living for our workers, families, and trickledown effects on the communities in which they live. The company’s procurement program considers all aspects of the deliverable, including local content.
A company contributes to economic and community development by supporting specific initiatives, donations, taxes, and direct employment; by participating and supporting health activities in the Americas; by working closely with local communities for employment opportunities as well as supporting local businesses; by maintaining roads and other infrastructure within the zone of influence; and by supporting water conveyance and irrigation projects, community recreational facilities and centers, etc…
A company indicated that, whatever the stage of project development, it meets with community leaders to find as much local labour as it can meaningfully employ. If the project yields encouraging results, more employment follows and as it gets more involved, opportunities are presented for these people to learn new skills through on the job training. Many of these skills are lifelong and portable to other jobs. Young professionals have been trained and mentored to meet certain standards.
A company indicated that, as much as possible, it procures supplies and services from local vendors. This can lead to business expansion through higher economic strength. The company encourages self-help and in one community, supplied required materials for infrastructure maintenance to the community rather than do it for them (which they very happily did). Besides the obvious benefits of improved infrastructure, such things enhance cooperation and self-confidence within the community. Many communities have different needs and the company has tried to be sensitive to this rather than have a rigid plan or policy set.
A company indicated that it contacts schools early in a program to determine needs. This usually starts with school supplies and textbooks so that each child has their own. At one project, the company has funded expansion of a school, expansion and equipment for a local clinic, equipment for a regional hospital, helped start a cooperative small business, provided funding for school programs, and supplied computers for students to use as they enter university.
A company indicated that it purchases whatever it can from local suppliers. When a small local hotel was closing for economic reasons, the company provided funding to keep it open and ensured that its personnel and visitors to the project used it. Whenever the company holds local community events, or any other meeting, it buys local. Even for social events, the company hires local musicians and food services.
A company indicated that it contributes to local infrastructure, from building community toilets to additions to schools and clinics. If a project goes beyond exploration and economic studies to become a producing mine, further contributions are included.
The following companies indicated that they identified opportunities to enhance the economic well-being of the people who work and live in the project’s area of influence, but declined to provide further details on any contributions:
- Candente Copper Corp.
- Endeavour Silver Corp.
- Handa Copper Corp.
The following companies indicated that they contribute to local education or health initiatives, but declined to provide further details:
- Candente Copper Corp.
- Endeavour Silver Corp.
The following companies indicated that they have partnerships with NGOs, local communities and/or indigenous communities that contribute to the sustainable development plan, but declined to provide further details:
- Candente Copper Corp.
- Endeavour Silver Corp.
The following companies indicated that they have local procurement programs in place, but declined to provide any further details:
- Candente Copper Corp.
- Endeavour Silver Corp.
- Handa Copper Corp.
The following companies indicated that they contribute to local infrastructure projects, but declined to provide further details:
- Candente Copper Corp.
- Endeavour Silver Corp.
- Handa Copper Corp.
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