What works in Laos? CSR & MMG Sepon Mmg watsford

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This document summarizes corporate social responsibility initiatives at the Sepon mine in Laos. It discusses four key initiatives: 1) Partnership for Development which is working with local farmers on high-value crops like mandarin and silk; 2) Developing Small Business which has created over 400 jobs and $3 million in income through business training; 3) Improving Rice Yield and Milling which is working with over 1,300 farmers and 8 millers to increase rice yields and income; and 4) Infrastructure Development which includes building roads, electricity, and donating over $3 million to community projects. The initiatives aim to create jobs, increase incomes, and support long-term sustainable development in the local communities.

Corporate Social
Responsibility at
MMG LXML Sepon
November 2014

Progress to date:
• Identified 4 potential businesses:
• Mandarin, pineapple, silk, &
chicken.
• Engaged 15 buyers (Coke Cola,
PepsiCo, Kellogg, Ikea etc)
• Agreed partnership with Ironbark
Citrus. They have initiated
registration as Lao business.
• 25,000 seedlings planted
• 10 initial farmers identified
• Credit secured
• District support
Next Steps:
• Import trees
• Identify next 100 farmers
High Value Agriculture
High-value
agriculture

Developing Small Business
Local
business
Local Business Development
• 100s of jobs
• Multiple businesses
• Millions of $ in income
• 439 jobs
• 26 businesses
• USD $2.975 M income 2013
• USD $15,650,000 income to date
• Extensive training to develop
required skills
• Partnership with Lao National
Chamber of Commerce and Lao-
Japan Human Resource Training
Institute
• Developing both mine and non
mine dependent businesses
• Building on local skills
• Focused on quality
• Next step develop new markets
244,295
167,920
1,401,302
490,949
2,517,461
1,792,993
2,624,649
2,228,920
2,975,299
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013
USD
Annual Income for Small Business Groups

Improving Rice Yield and Milling
Rice
SNV Enhanced Rice
• 1,300+ farmers
• Milling businesses
• Market driven
• Sticky rice is a cultural icon and
fundamental to the Lao perception of
livelihood security.
• Targets:
• Increase yields from 2.5 to 3 tonnes
per hectare
• Improve quality
• 159% increase in income for farmers
($105/hectare).
• 200% increase in income for rice
millers.
• Leverage LXML rice consumption for local
benefit
• LXML Sticky rice sourced 100% from
Vilabouly
• In partnership with the Netherlands
Development Agency (SNV)
• Market driven
• Beneficiaries:
• 1,300+ farmers
• 8 rice millers
• Rice group

Earning the Privilege to Grow
Area 2014 est. LOM
Government Receipts ($’m) $100m $1.3 billion
Infrastructure (28A, village
roads, and electricity grid) - $46 million
Vilabouly Trust Fund ($’m) $0.75m $5 million
Community development
and poverty alleviation $1.2m $5.8 million
Cultural Heritage (including
Vilabouly Cultural centre) $200,000 $1.4 million
Extension to Huay Khong
Training Centre $200,000 $0.2 million
Local business income $2.9 m $18 million
UXO Clearance ($’m) $4.5m $40 million
People Development
Training Hours 273,000 1.7 million

Donations and Sponsorship
US$3 million since 2003 Emphasis on direct
development benefit to
community, assisting
women and children.
US$3 million in donations
Humanitarian and disaster
assistance (US $440,000
in flood relief, dengue etc)
Support for Savannakhet
Hospital, Mother Child
Hospital, Paediatrics etc.
Monuments of national
significance – National
Assembly, Chao Anou
Support for Capacity
Building – UXO, EITI etc.

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