The Changing Resource Development Paradigm: Maximizing Sustainable Local Benefits from Resource Development

The Changing Resource Development
Paradigm

Maximizing Sustainable Local Benefits
from Resource Development

Prepared for

Government of British Columbia
Ministry of Community
Development Cooperatives and
Volunteers
January 2001

2457 Bakerview Road
Mill Bay, BC CANADA V0R2P0
Tel: +1-250-743-7619
Fax: +1-250-74307659
info@waynedunn.com
www.waynedunn.com

Table of Contents
Executive Summary ........................................................................................................... i
1 Introduction ........................................................................................................... 1
2 The Growing Importance of Corporate Responsibility and Sustainable Development
................................................................................................................................. 3
3 International Multi-Stakeholder Initiatives ..................................................... 15
3.1 Business Partners for Development ................................................................ 15
3.2 Global Mining Initiative .................................................................................. 16
3.3 Prince of Wales Business Leaders Forum ...................................................... 17
3.4 UNEP Annual Round Table with the Finance Industry............................... 19
4 Examples of Effective Corporate Social Responsibility .................................. 21
4.1 Cameco in Northern Saskatchewan................................................................ 21
4.2 The Porgera Project, Papua New Guinea ...................................................... 24
4.3 Weyerhaeuser and Clayoquot Sound – A Region In Transformation ............... 34
4.4 Mitigating the Impact of Downsizing – Placer Dome in South Africa ........ 39
4.5 NorSask Forest Products/MLTC .................................................................... 45
4.6 Common Themes .............................................................................................. 49
5 A Framework for Understanding and Developing Effective Corporate / Community
Relations............................................................................................................... 51
5.1 Traditional Corporate Approaches to Community Relations Management51
5.2 Elements of a Systematic Approach ............................................................... 53
6 Changing the Paradigm...................................................................................... 58
6.1 The Business Case for Government Support of CSR ................................... 58
6.2 Government Tools for Supporting CSR ........................................................ 59
6.3 Stakeholder Actions ......................................................................................... 61
7 Conclusion ........................................................................................................... 64

List of Tables, Charts and Figures
Table 4-1: Clayoquot Economic Comparison (Pre/Post)................................................. 38

Chart 4-1 Cameco Northern/Aboriginal Purchases .......................................................... 23

Figure 2-1 Growth of International NGOs......................................................................... 5
Figure 5-1 Ad-hoc Community Relations........................................................................ 52
Figure 5-2 Interaction Continuum ................................................................................... 55

The Changing Resource Development Paradigm

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The report is organized into seven sections.
EXECUTIVE SUMMARY
Section 1 identifies and discusses pertinent
introductory issues. Section 2 examines the
“In a transparent, globalized world,
economic performance, environmental changing paradigm of resource
performance and social performance hang
development, illustrating some of the global
together. Business is realizing that it has
become an integral part of society and now trends that have pushed corporate social
has wide-ranging responsibilities…
shareholder value and social responsibility responsibility and sustainable development 1
support each other” into the mainstream, making it a critical
Göran Lindahl,
President and CEO,
bottom-line issue for many corporations and
Asea Brown Boveri (ABB) industries. A number of factors are
discussed in terms of their impact on the
The discovery and harvesting of primary overall resource development environment.
resources such as, furs, fish, forestry, natural These include:
gas, minerals and now possibly oil, has been • Global democratization;
the economic backbone of British Columbia
• Growth of NGOs;
since the first Europeans arrived. Even with
the growth of a knowledge-based economy, • Growth of the global media;

natural resources are still critical to the • Rise of ethical investment funds;
economic future of many BC communities • Internet and other communications
and residents. The Ministry of Community innovations;
Development, Cooperatives and Volunteers
• Globalization;
has commissioned this report to review
• Increased permeability of institutional
resource development from a global
and organizational boundaries;
perspective, exploring what is and what can
be done to improve the way in which • Growing value and importance of
resource development impacts the social and reputational capital;
economic well-being of local communities
1
and residents. Many firms refer to their community relations work as
Sustainable Development and/or Sustainability. For the
purpose of this report, we will use the terms
interchangeably.


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• Regulatory frameworks and • Global Mining Initiative
licensing/permitting procedures; and • Price of Wales Business Leaders Forum
• Growing number of international • United Nations Environment Program
standards, directives and codes of Annual Round Table with the Finance
conduct. Industry

Section three examines a number of global, In Section 4, five best practice examples of
national and local initiatives aimed at corporate social responsibility in natural
fostering dialogue and improved resource development are reviewed to
collaboration between industry, illustrate the potential for increased
communities, governments and other industry-community collaboration. These
stakeholders, (e.g., the Conference Board of examples, drawn from mining and forestry
Canada’s Canadian Centre for Business in projects in Canada, Africa and Asia,
the Community, Business at the Summit, demonstrate that effective application of
Canadian Council for Aboriginal Business’ sustainable development principles can lead
Progressive Aboriginal Relations initiative, to profitability and meaningful benefits for
University of Warwick’s Mining and Energy all stakeholders. An analysis of the case
Research Initiative, National Round Table studies identifies five common
on Environment and Economy’s Aboriginal characteristics:
Communities and Non-Renewable Resource
Development, and the World Business • A desire to develop mutually beneficial,
Council on Sustainable Development’s action-oriented, collaborative multi-
forestry project.). The report also identifies party approaches to addressing
and examines four international multi- community and local development;
stakeholder initiatives that directly relate to
• Appropriate support from governments
the community component of sustainable
and external stakeholders;
development. The initiatives are:
• Business Partners for Development • Long-term stakeholder commitment;


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• Stakeholder leadership – while different • Interactions
examples demonstrated leadership by • Measuring, Monitoring and Reporting
different stakeholders, all of them
exhibited strong leadership (in a
Section 6 focuses on specific actions and
collaborative manner); and
strategies that government and other
• A long-term approach to capacity stakeholders can utilized to facilitate more
development (no quick fixes). effective relationships between key
stakeholders in the resource development

Section 5 discusses a framework that can be process. The business case for sustainable

utilized by all stakeholders to facilitate more development is examined from a

systematic integration of sustainability government perspective and six reasons are

principles and priorities into resource put forth for investing public funds to

projects and to assist with the development encourage and support corporate social

of common understanding and a map of responsibility and sustainable development.

specific relationship opportunities. The
framework is designed to assist stakeholders Section 6 concludes with a discussion of

to move beyond a beads and trinkets stakeholder opportunities for action and

interaction model to embrace more leadership on sustainable development. To

sustainable, results oriented relationships. illustrate, thirteen specific actions that could

It identifies six critical elements for be initiated by government, industry and

successful relationships between communities are presented and stakeholders

corporations and local communities. They are encouraged to begin dialogue and

are: discussions aimed at identifying and
implementing concrete activities in support
• Organizational ethos
of their collective interests.
• Communications and consultations

• Capacity development The concluding section, Section 7, notes
• Leveraging other relationships that, throughout the planet, the resource


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development paradigm is changing.
Corporate Social Responsibility (CSR) and
sustainable development have become
business imperatives. Successful projects
require stakeholder collaboration and
participation and, increasingly, a focus on
how resource development can support the
long-term social and economic objectives of
all stakeholders.

Successful CSR therefore requires
commitment and leadership from all
stakeholders (including governments), each
with particular roles to play and support to
provide. Therefore Government of British
Columbia can, and should, support
communities and industry to develop and
maintain mutually beneficial relationships
that will support their respective social and
economic goals.


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strategically address the long-term capacity
1 INTRODUCTION
and sustainability of local communities,
often leaving them with little economic
“Social responsibility is a The
diversification and vulnerable to industry
matter of hard-headed dis
downturns. The resultant impact on
business logic... Its about cov
communities was frequently disastrous as
performance and profits” ery
industries often simply closed down,
and
Sir John Browne, creating economic havoc. Local citizens
CEO BP-Amoco har
and businesses risked losing everything.
ves
After investing in roads, schools and other
ting of primary resources, forestry, mining,
public infrastructure, governments often had
natural gas and now possibly oil, has long
to step in and try to cushion the impact that
been a mainstay of the British Columbia
closure had on families and local businesses.
(BC) economy. Although there is currently
Unfortunately, there is often little that can be
a transition to a more knowledge based
done after the fact.
economy, resources still have, and will
continue to have, a major impact on the
Recently however, a strong trend is
economic lifeblood of BC communities.
emerging whereby resource companies work
with communities and the public sector to
The 1990s have seen a major shift in the
organize business activities so they
resource development process. Previously
maximize value for a broader range of
the regulatory approval procedure was
stakeholders. Planning for and addressing
primarily an interaction between the
issues of social acceptability, local cultural
applicant-business and relevant government
awareness and the long-term sustainable
authorities. Communities and third party
economic development of the region are
interests had limited influence and minimal
becoming as important as ensuring
consideration was given for the long-term,
responsible environmental stewardship.
sustainable impact on local people and
While nothing can ever guarantee the
communities. Little was done to
sustainability of resource dependent


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communities, stakeholders are discovering paradigm and suggests strategies for
that through collaborative activities, much ensuring that resource development makes a
can be done to create additional value and long-term, sustainable contribution to the
mitigate downside risk. social and economic well being of BC
communities. It also addresses the business
The Government of British Columbia, case for sustainable development – the,
through the Ministry of Community what’s in it for me? – from the perspective
Development, Cooperatives and Volunteers of industry, communities and government.
(MCDCCV) has recently released a It concludes with an examination of
Discussion Paper, Toward Revitalized, mutually beneficial, strategic approaches
Resilient and Sustainable Communities that could be initiated by various
Across British Columbia. The paper stakeholders to maximize the long-term,
outlines a potential policy and legislative sustainable benefits that communities
framework that would provide new methods receive from existing and future resource
for the Government to partner with local harvesting projects.
communities to enhance sustainable social
and economic development.

The Ministry of Community Development,
Cooperatives and Volunteers is tasked to
support communities in their efforts to
acquire meaningful and sustainable benefits
from the development and harvesting of
local resources. As part of their ongoing
efforts the Ministry contracted Wayne Dunn
& Associates Ltd. to prepare this report.

This report explores global changes that are
occurring in the resource development


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financial performance 2. Everywhere that
resources are harvested, local communities
2 THE GROWING IMPORTANCE OF
and a business’s ability to work with them
CORPORATE RESPONSIBILITY
effectively has direct and significant bottom
AND SUSTAINABLE
line impacts. BC is no exception.
DEVELOPMENT
What has happened to push social issues
Note: To illustrate that corporate onto the corporate agenda? And, will this
responsibility and sustainable trend last? These are two questions that
development are more than local must be addressed to understand how to
phenomenon, the following encourage corporate social responsibility.
discussion is based on a global
perspective. While no single factor can be credited with
pushing social issues onto the corporate
In Canada and throughout the world, agen
Triple Bottom Line da,
resource companies are recognizing that
Many companies are moving beyond
there is a direct link between their ability to simply measuring financial we
performance to embrace some form can
meet society’s needs and their own long-
of triple bottom line, where they
term sustainability. Firms everywhere are strive for performance along ident
financial, social and environmental ify a
embracing triple bottom line concepts and
dimensions. Some, such as BC
many are producing social, environmental Hydro, even produce annual Triple num
Bottom Line Reports. ber
and sustainable development reports. This
is not the work of ‘do-gooders’ – a June of
2000 survey of 100 business leaders noted events and trends that, together, are driving
that 42% saw corporate responsibility as the process. Some of these are listed below.
having a direct impact on share price and

2
Survey conducted by Burson-Marsteller, the world’s
largest communications agency for the United Kingdom
based Prince of Wales Business Leaders Forum


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Global democratization – Democratization Organization (WTO) meetings in Seattle.
and the ability of citizens and communities NGOs have the ability to disrupt corporate
to influence their governments is increasing. operations, alienate markets and directly
Although in many cases it is far from impact financing when they deem
perfect, the last decade has seen many corporations are not meeting social and
countries move to democratic elections and environmental responsibilities. BC has
more responsible and responsive witnessed this first hand, as many NGOs
governments, (e.g., the toppling of the have been instrumental in influencing
government of Slobodan Milosevic in Serbia market perceptions of BC forest products
and the reversal of ‘officially’ announced and ultimately, influencing operational
election results in Cote d’Ivoire are recent strategies and decisions for the BC forest
examples). Governments and corporations industry. For example, according to the
everywhere must pay more attention to the Aug. 25, 2000 Globe and Mail, ‘Seven of the
will of the people and how resource projects top ten
impact local people and communities. U.S.
“NGOs distribute more
home aid than World Bank
improve and, if viewed as a
Non-Governmental Organizations
nation, would rank 8th
(NGOs) – Throughout the world there has ment in economic power...
been an exponential growth of well- retailers, Key roles in trade,
environment, corporate
organized and financed NGOs includin decision making”
(non-governmental organizations), most g Home Washington (AP)

with social and environmental agendas and Depot,
the ability to influence publics and markets. have issued restrictive lumber buying
Among other things, NGOs have been policies in the wake of an aggressive
largely responsible for; the Anti-Landmine campaign by environmentalists While
movement and its subsequent Nobel Peace industry is still sorting exactly what this
Prize, Shell’s loss of business following means, there is no doubt that it threatens a
Brent Spar and problems in Nigeria, and the significant share of the traditional market
shutting down the World Trade for BC forest products’.


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institutions are recognizing the importance
Figure 2-1 Growth of International NGOs of sustainable development. Numerous
investment funds have been established that
Global media / CNNization of the world – have social/ethical as well as financial
The global media reaches into every corner objectives and criteria. Investor interest in a
of our planet, influencing consumers, firm’s non-financial performance has led
markets and stakeholders. No matter where Dow Jones, one of the most respected
a resource development project is located, it economic institutions in the world, to create
is only one incident away from international a Sustainability Index. (Placer Dome, a
infamy and its resultant bottom line impact. global mining company headquartered in
Cameco, a Canadian mining company, BC has been accepted onto this index.)
discovered this after a relatively minor spill
in Kyrgzstan turned into a costly Internet and other communications
international incident in May 1998. innovations – We live in an age where, no
matter where one is on the planet, it is
Ethical Investment Funds / Dow Jones possible to communicate economically and
Sustainability Index – Driven by the desire instantaneously with other individuals and
of some investors to judge more than interests from around the world. According
financial performance and the recognition to Time Fortune “a company’s activities, in
that there is a direct connection between even the remotest parts of the world are
corporate responsibility and
sustainable long-term
“Corporations must start shouldering their share of
financial performance,
social responsibilities… the world could stumble
financial markets and back into warfare if global business interests don’t
address the serious social concerns surrounding
globalization”

Thomas d’Aquino President,
Business Council on National Issues
(Banff, Sept 21, 2000)


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subject to immediate inspection and reaction Reputational Capital – For many firms, the
by virtual networks of consumer oriented most valuable asset they have is their brand
activists”. NGOs and other interests (reputation) and they will go to extreme
regularly use communication to advance lengths to protect it. In the resource industry
their causes and interests. Email and brand value can translate into improved
internet communications is cited as the key marketability, easier permitting and
organizing tool responsible for the Anti- regulatory approvals and enhanced access to
Landmine campaign’s Nobel Peace Prize, future opportunities. Firms that are known
and for organizing protestors at the WTO for their social, environmental and economic
meetings in Seattle and the recent World performance will have distinct advantages in
Bank meetings in Prague. acquiring new opportunities and operating
existing projects. Reputational capital is
Globalization – Resource firms operate in a also a factor in project financing. Multi-
world where financial and product markets lateral financial institutions such as the
are global. How a company operates in one International Finance Corporation (IFC) are
corner of the planet can quickly affect its beginning to review the social and
financing, marketing and operations in other environmental performance of projects. In
countries and areas. fact the IFC has recently appointed an
Ombudsperson as part of a drive to boost the
Increased permeability of institutional social and environmental performance of its
and organizational boundaries – investments. As well, NGOs are holding
Boundaries and borders are becoming public and private sector financial
blurred – the line between business, institutions responsible for the
government, community and civil society is environmental and social performance of
no longer distinct. The old saying, the investments, and attempting to devalue the
business of business is business simply reputational capital, and thus attack the
doesn’t hold any longer. client base of those institutions that finance
questionable projects.


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Regulatory frameworks and initiatives include United Nations’ Secretary
licensing/permitting procedures Resource General Kofi Annan’s January 1999
projects everywhere must pass through challenge to global business leaders to sign a
increasingly detailed environmental review ‘Global Compact’ based on international
processes in order to receive necessary principles concerning human rights, social
permits and developmental approvals. development, labour and environmental
Social and community issues are also standards 4. Another initiative is the Global
becoming a major component of this Sullivan Principles (built on the original
process. Public forums draw attention to Sullivan Principles which promoted ethical
these aspects of a project which, if not business practice in apartheid-era South
addressed in good faith with stakeholders, Africa), which promote economic, social
can cause expensive delays and add cost and and political justice by companies
complexity to project development and worldwide.
ongoing operations.
In additon to the various multi-stakeholder
International standards and directives initiatives, there are a number of
There is a growing surge of initiatives international standards and directives 5 (see
promoting standards for responsible footnoted list below) that have been
business behaviour 3. Many of these involve
4
See http://www.unglobalcompact.org/ for details on this
multi-stakeholder (Business, Governments initiative.
5
Some of the more important ones include:
and Communities/Civil Society) • World Bank: Operational Directive 4.30 –
Involuntary Resettlement;
collaboration (See Section 3 for several • World Bank: Operational Directive 4.20 –
Indigenous Peoples;
examples of multi-stakeholder collaborative • IDB: Community Consultation, Sustainable
Development;
initiatives). The latest codes cover all • IDB: Operational Directive 710 – Involuntary
Resettlement;
aspects of sustainable business. Recent • International Labour Organization Convention 169 on
Indigenous and Tribal Peoples Convention;
• United Nations Conference on Environment and
3 Development: Chapter 26, Agenda 21;
For a detailed discussion and analysis of various
initiatives see A Content Comparison of Various Codes of • United Nations: Declaration on the Rights of
Conduct at http://www.web.net/~tccr/benchmarks/rsp- Indigenous Peoples (Draft)Organization of American
GSP.htm This page was developed by the Global States: and
Accountability Program at the Interfaith Center on • Declaration on the Rights of Indigenous Peoples
Corporate Responsibility. (Draft)


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promulgated by various multi-lateral undermining their long-term financial
agencies such as the United Nations. A sustainability.
Directive such as the World Bank’s
Operational Directive 4.20 – Indigenous Combined, the trends and activities
Peoples, sets out the expectations and discussed above demonstrate the new
requirements for how World Bank financed paradigm of business. They underscore an
projects will interact with Indigenous expectation of how companies and
Peoples. When combined with the multi- communities should engage and how
stakeholder initiatives and the other trends resource development and extraction should
discussed above, these standards and occur in a manner which creates sustainable
directives are beginning to create somewhat and meaningful benefits for local people and
of a global standard for business. While communities. Stakeholders in British
little has been done to formalize this Columbia’s resource economy cannot afford
emerging trend, firms that habitually to ignore this reality.
transgress it by ignoring the environmental
and social aspects of thier operations risk
Two recent surveys, one in Canada and the other in Europe, illustrate the global nature of this
issue.

According to a recent Environics Poll:

• 43% of Canadians feel that a company’s role in society should be to “set higher ethical
standards and help build a better society”;

• Only 11% of Canadians feel that a company’s role is to “make profit, pay taxes, create jobs
and obey laws" (meaning that the remaining 89% feel a company has a larger
responsibility).


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A recent Burson-Marsteller/Business Leaders Forum survey demonstrates that the corporate
social responsibility agenda is growing in importance, and that significant shifts in emphasis are
occurring. The key trends they identified are:

• Corporate social and environmental responsibility must be dealt with as an integrated part
of business planning;

• Exemplary environmental performance is regarded as a minimum requirement when
assessing a company, but more and more attention to softer, human relations is also now
being demanded; and

• Charitable giving by companies - whilst still commendable - is not of sufficient importance
on its own, and, in fact, unless good social and environmental stewardship is in place,
charitable giving is viewed with suspicion.

permitting processes and enable the
company to better manage social and
political risks and “should help us to achieve
greater profitability”.

The growing interest in corporate social
responsibility and sustainable development
has spawned a number of research efforts
Speaking in Ottawa at a conference on and multi-stakeholder initiatives as industry,
Ethics in the New Millennium, Placer Dome governments, institutions, NGOs,
CEO Jay Taylor noted that their communities and other stakeholders strive to
commitment to community development operate in this new paradigm. In addition to
“represent(s) an added cost, but is an the international multi-stakeholder
essential investment in our future”. He went initiatives discussed in detail in the
on to note that this investment would following section, there are numerous other
improve access to projects, expedite efforts to document and encourage improved


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corporate involvement in community with the overall result of sustaining
development and adjustment. Some shareholder value.
representative examples are discussed
below. Information on past research and
publications can be reviewed at
The Conference Board of Canada, and http://www.conferenceboard.ca/ccbc/.
many other Conference Boards around the
world have launched research efforts and are Business at the Summit is an annual event
coordinating conferences 6, round tables and organized by British Columbia Indigenous
other fora for the exchange of information and Industrial leaders to provide an
and ideas on corporate social responsibility. opportunity for discussing and enhancing
The Conference Board of Canada has corporate aboriginal relationships in the
established a special unit, the Canadian province. The Summit encourages face-to-
Centre for Business in the Community face dialogue and cooperation between
(CCBC), which focuses exclusively on Indigenous Peoples and business leading to
issues related to corporate social the identification of common agendas and
responsibility. In addition to publishing the creation of mutually beneficial economic
various reports and organizing conferences, opportunities. The Summit first took place
the CCBC acts as a resource for member in 1995 at the Squamish Nation Recreation
firms. Based on their research and other Centre and has occurred annually since that
work over the past several years they time. The 1999 Summit focused on the
maintain that corporate social responsibility theme “Partnerships for Prosperity” with
can help to achieve a balance between speakers and workshops dedicated to
economic, environmental and social profiling successful partnerships and
imperatives as well as addressing discussing strategic issues and approaches to
stakeholders’ expectations and demands, identifying and developing mutually
beneficial relationships between business
6
Mr. Greg Goodwin, Executive Director of Community and Indigenous Peoples.
Enterprise for the MCDCV recently made a presentation at
a Conference Board of Canada Conference in Ottawa,
Canada.


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The Canadian Council for Aboriginal performance benchmarks in companies that
Business (CCAB) is a national non-profit want to develop mutually beneficial
organization that promotes the full relations with Aboriginal people and
participation of Aboriginal communities in communities.
the Canadian economy. Membership
includes leading Canadian corporations and Additional information on CCAB and their
Indigenous organizations. Working with programs, research and other activities is
industry and other stakeholders, CCAB available on their website at
undertakes a number of initiatives aimed at http://www.ccab-canada.com.
increasing aboriginal involvement in
business. The Mining and Energy Research
Network (MERN), is based in the Corporate
CCAB is currently working with the Citizenship Unit of the University of
National Quality Institute and Canadian Warwick at Coventry, United Kingdom.
Indigenous and business leaders to launch an MERN is an international collaborative
innovative program to promote and research programme seeking to facilitate
recognize leadership in relationships improvements in the social performance and
between corporations and aboriginal people. competitiveness of mining and energy
The initiative involves a certification companies. It seeks to understand the
program for corporate aboriginal relations relationship between regulation, technical
called Progressive Aboriginal Relations change, social policy and competitiveness in
(PAR). This initiative, which is in the the global minerals industry. MERN’s
process of certifying the first four objective is “Can minerals and energy
companies, will provide companies with the resource development, demonstrably
right to use the PAR logo, signifying that essential to modern industrial society, be
they are committed to community relations, undertaken without damaging the
individual capacity building, aboriginal environment or undermining the
employment and business development. development opportunities of local
PAR sets out a framework for establishing communities and can the benefits be


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distributed amongst stakeholders more consensus and identify the reasons for
equitably?” disagreement in other areas. The round
table process is a unique form of
Additional information on MERN and its consultation, permitting progress on diverse
research projects can be found on their issues. It is of value in overcoming
website at entrenched differences and arriving at
http://users.wbs.warwick.ac.uk/ccu/mern. recommendations for action.” 7

The National Round Table on Many of the Round Table’s initiatives, such
Environment and Economy (NRTEE) is as the ongoing Sustaining Canada’s North:
an independent advisory body that provides Aboriginal Communities and Non-
decision makers, opinion leaders and the Renewable Resource Development seek to
Canadian public with advice and document and promote best practices in
recommendations for promoting sustainable environmental and corporate social
development. National Round Tables were responsibility. The program mentioned
formed in many countries as a result of above will focus on non-renewable resource
agreements generated at the 1992 United development issues in the Western Arctic.
Nations Conference on Environment and Working with industry, local Aboriginal
Development (UNCED) in Rio de Janeiro. communities, government and
The Canadian National Round Table on the Environmental Non-Governmental
Environment and the Economy uses; “A Organizations (ENGO), the purpose is to
multi-stakeholder approach, combined with produce concrete recommendations on how
impartiality and neutrality. By creating an to accommodate competing interests in the
atmosphere in which all points of view can area of mineral development and oil and gas
be expressed freely and debated openly, the exploration to ensure long-term
National Round Table has established a sustainability of these communities. A
process whereby interested parties
7
National Round Table website http://www.nrtee-
themselves define the environment/economy
trnee.ca/eng/programs/aboriginal/aboriginal-
interface within issues, determine areas of bulletin4_e.htm


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recent workshop identified a number of retention of revenues generated by non-
important themes: renewable resource development.

Additional information on the NRTEE is
• Doing it right – the high level of available on their website located at
participation demonstrated faith and http://www.nrtee-trnee.ca.
optimism that key players are able to
work together to ensure that non- The World Business Council for
renewable resource development more Sustainable Development (WBCSD) was
effectively contributes to building also formed as a direct result of UNCED. A
sustainable Aboriginal communities; number of global business leaders made a
• The crisis in community capacity- commitment at UNCED that they would
building – participants discussed promote improved social and environmental
capacity-building (i.e., skills and responsibility in their own companies and
education), as a long-term challenge that amongst the global business community in
must to addressed to ensure communities general. WBCSD is a coalition of some 150
benefit from non-renewable resource international companies united by a shared
development, and a short-term crisis in commitment to sustainable development, i.e.
capacity was also identified; environmental protection, social equity and
economic growth. Members are drawn from
• Respect – the need for all-encompassing
30 countries and more than 20 major
respect was stressed throughout the
industrial sectors. They organize
workshop;
conferences, collaborates in research and
• Partnerships – partnerships are needed other initiatives 8 aimed at encouraging and
that will involve Aboriginal people from supporting improved social and
the beginning to build a common vision environmental practices. The WBCSD
with all stakeholders; and recognizes Corporate Social Responsibility
• Retention of local benefits – participants 8
WBCSD collaborates with the Prince of Wales Business
expressed a desire to see the local Leaders Forum and is a key stakeholder in the Global
Mining Initiative, both of which are discussed in detail in
the following section.


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(CSR) as a critical aspect of their work and The above, combined with the four multi-
have organized five sectoral projects to stakeholder initiatives discussed in the
understand, promote and support CSR in following section, illustrate the multi-
industry specific situations. The five dimensional interest in corporate social
sectoral projects encompass Forestry, responsibility. Two common themes
Mining and Minerals, Cement, Mobility, and permeate most initiatives. They are:
the Electrical Utility Industry.
• The importance of bringing stakeholders
The forestry project aims to foster dialogue together to participate in developing
amongst all forest stakeholders; to provide their own solutions and to facilitate the
global business leadership; and to develop a sharing of experiences and initiatives;
strategy to manage the sustainability of and
forests. Twenty-one companies and
organizations form the industry working • The necessity of approaching corporate
group for the project. The project’s primary social responsibility as a strategic
purpose is to develop a factual base upon business issue rather than as a
which to begin a constructive dialogue philanthropic add-on.
process with stakeholders in broader forest
issues. Another anticipated outcome is the Practical examples of the application of
ultimate creation of new public–private these principles are discussed in five case
partnerships to address the myriad of forest studies in Section 4.
issues that currently cause so much
confusion.

Additional information on WBCSD can be
found on their website at
http://www.wbcsd.ch.


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3 INTERNATIONAL MULTI-
The Natural resources cluster brings
STAKEHOLDER INITIATIVES
together a number of corporate and civil
society stakeholders to share information
A number of multi-stakeholder initiatives and examine specific examples. This cluster
have been launched in the past ten years that is co-convened by CARE International, BP
directly relate to the community component Amoco and the World Bank Group. The
of sustainable development. What is cluster identified focus projects in mining,
significant is that the institutions involved in and oil and gas, which demonstrated the
these initiatives are significant global application of the tri-sector (industry,
players in the area of finance and resource government and civil society) approach to
development and are leaders in the changing development. Project locations were
paradigm of natural resource development. distributed throughout the developing world
(Venezuela, Colombia, India, Indonesia,
3.1 Business Partners for Development etc.)

Business Partners for Development (BPD) is
an initiative launched by the World Bank in The organizational structure of BPD

1997. It is a “programme designed to study, attempts to ‘lead by example by:

support and promote the creative • Involving the World Bank Group and

involvement of businesses as partners internationally recognized NGOs in

alongside governments and civil society for cluster activities to help companies and

the development of communities around the local NGOs transcend issues and work

world”. BPD is divided into four more effectively with each other and

‘clusters’; Natural Resources, Water and host country governments

Sanitation, Youth Development and Road
Safety. Each cluster has identified a number • Providing an opportunity for
of focus projects that are being used to better practitioners and other stakeholders to
understand the role of business as a partner review leading edge projects and
in development.


- 16 -

maximize learning and dissemination of In order to maximize learning from BPD,
knowledge. the partners have recently added a fifth
cluster, the Knowledge Resource Group.
• Convening workshops, study sessions This group is convened by the Prince of
and other activities to better understand Wales Business Leaders Forum (see
and build from the focus group discussion on this organization later in this
examples. section).Additional information on Business
Partners in Development is available on
The focus group projects have identified that their website at www.bpdweb.org.
effective sustainability programs have
direct benefits for the tri-sector partners. 3.2 Global Mining Initiative
The Global Mining Initiative (GMI) grew
Business
out of an informal discussion held in 1998
• Reduced and shared social risks
between CEOs from nine companies who
• Compliance with emerging social
were concerned about the sustainability of
ethics and regulations
the mining industry in the face of societies
• Improved access to new opportunities growing discontent with industry
• Increased shareholder value performance and a shift in ability of
stakeholders to effectively impact business
activity. Initial discussions resulted in the
conclusion that the problems facing the
Civil Society and Government industry would not be resolved with a public
• Increased local socio-economic impact relations program and that to change public
• Increased regional development impact attitude, industry must change the way it
• Greater sustainability of community does business.
projects
• One of the primary elements of the GMI is
the Mining Minerals and Sustainable


- 17 -

Development Project (MMSD). This project • More active engagement between the
is an independent process of participatory industry and others in order to
analysis with the objective of identifying understand the issues better, and the
how mining and minerals can best contribute identification of the priorities as we go
to the global sustainable development forward; and
transition. The MMSD project has gained
Clarification on where the boundaries
momentum and industry sponsorship for this
lie for action by different participants.
program has grown from nine to twenty
With this information and a new
seven of the world’s leading mining
platform for constructive stakeholder
companies.
dialogue, industry sponsors of the
MMSD project will develop” an action
To ensure transparency and independence,
plan for change” based on the priority
this study has been commissioned through
issues identified and in partnership with
the World Business Council for Sustainable
strategic stakeholders.
Development and is managed by the
International Institute for Environment and
Development (IIED) 9 Additional information on GMI and MMSD
is available at www.iied.org/mmsd
The expectation is that this Study will
generate:

• Broadly based and authoritative analysis 3.3 Prince of Wales Business Leaders
of key issues which arise from people’s Forum
expectations of sustainable development; The Prince of Wales Business Leaders
Forum (PWBLF) is an international
• The foundation for the new relationships
educational charity set up in 1990 to
and partnerships which the scale of the
promote responsible business practices
challenges demands;
9
See IIED website at http://www.iied.org/ for information
on the organization


- 18 -

internationally that benefit business and • Helps to create an 'enabling
society, and which help to achieve social, environment' to provide the conditions
economic and environmentally sustainable for these practices and partnerships to
development, particularly in new and flourish.
emerging market economies.

Through:
Fifty leading companies from Europe, the
• Making the case that in the new world
Americas, Asia and the Middle East support
order, well-led and competitive
the Forum. In addition to its corporate
businesses have a positive role to play in
membership, the Forum’s network also
development challenges, through
includes valuable strategic alliances with
responsible core business practices and
international agencies such as the World
engagement with society
Bank, United Nations, European
Commission, the United Kingdom • Showing that – while partnership and
Department for International Development, collective action is difficult – in the
major international non-governmental networked society it is essential to
organizations and international and national combine business skills and resources
business coalitions. with community support and public
accountability
The Forum:
• Demonstrating that scale can only be
• Encourages continuous improvement in achieved and economic exclusion
responsible business practices in all addressed through 'enabling
aspects of company operations environments' in which governments,

• Develops geographic or issue-based international institutions and the media

partnerships to take effective action on play a part.

social, economic and environmental
issues According to the PWBLF, in the mid-1990s,
its attention on issues of business ethics,


- 19 -

social development and human rights was experience reaches across cultures,
seen as rather radical and ill focused. Less countries and unfamiliar contexts
than six years later, the same issues could be
• It has recorded demonstrable success in
discussed comfortably in most Boardrooms.
engaging the attention of business
This underscores the earlier discussion on
leaders, and mobilising them at all levels
the changing paradigm and shifting of
in practical action - to 'make a
boundaries and responsibilities.
difference' through core business
practices, community involvement and
The Forum's defining characteristics are:
policy dialogue
• The Forum provides a focus on the
• It has experience of implementation in
contribution of business to 'social'
progress, as well as to economic the demanding conditions of transition

multipliers and good environmental economies – through implementation of

practice – the 'triple bottom line' in responsible business practices and

practice public/private partnerships

• It offers in-depth understanding and
• It is a source of 'practice-based' analysis
and information on leading edge widely regarded analysis of the

business practices from its 'on the 'enabling public framework' - for

ground work' - on how the macro trends, responsible business and cross-sector

challenges and opportunities in partnerships.

responsible business practices can be Additional information on the Prince of
effectively linked to the practical micro- Wales Business Leaders Forum is available
level implementation on their website www.pwblf.org.

• It has a strong track record in
partnership-building experience, and is 3.4 UNEP Annual Round Table with the

trusted as a neutral facilitator of cross- Finance Industry

sector partnerships with business, public The United Nations Environment Program
and NGO sectors. Its capacity building (UNEP) Financial Institutions Initiative on


- 20 -

the Environment was launched in 1992 with the Statement outlines the principles of the
the intent to engage a broad range of initiative.
financial institutions - from commercial
banks to investment banks to venture “We members of the financial services
capitalists to asset managers to multi-lateral industry recognize that sustainable
development banks and agencies - in a development depends upon a positive
constructive dialogue about the interface interaction between economic and social
between economic development, development, and environmental protection,
environmental protection, and sustainable to balance the interests of this and future
development. generations. We further recognize that
sustainable development is the collective
This Initiative, which maintains a Secretariat responsibility of government, business, and
in the United Nations Environment individuals. We are committed to working
Programme, promotes the integration of cooperatively with these sectors within the
sustainable development considerations into framework of market mechanisms toward
all aspects of the financial sector's common environmental goals.
operations and services. An additional
objective of the initiative is to foster private We regard sustainable development as a
sector investment in environmentally and fundamental aspect of sound business
socially sound technologies and services. management.

A core part of this Initiative is to foster
An International Round Table is held every
endorsement of the UNEP Statement by
year to bring together stakeholders.
Financial Institutions on the Environment
and Sustainable Development, which
Additional information is available on the
commits signatories to incorporating
initiative’s website
environmentally sound practices into their
www.unep.ch/etu/finserv/fimenu.htm
operations. The following introduction to


- 21 -

4 EXAMPLES OF EFFECTIVE
CORPORATE SOCIAL
RESPONSIBILITY

4.1 Cameco in Northern Saskatchewan
Cameco is the largest uranium producer in
the world, with mining activities in Northern
Saskatchewan. Early in the development of
these properties Cameco recognized that
business success was inextricably connected
to its ability to work effectively with the
residents of the area, ensuring that they
received meaningful and sustainable benefits
from mineral development.

Northern Saskatchewan has a total
population of 38,000 people living in many
small communities scattered over 250,000
square kilometers. Demographically, the
north’s population is 75% aboriginal
representing the Woodland Cree, Dene, and
Metis Nations. The majority of the
aboriginal population of northern
Saskatchewan are treaty Indians (First
Nations) living primarily in communities on
treaty reserve lands. The remaining
aboriginal and non-aboriginal population


- 22 -

lives in small settlements and villages under participating in trapping, hunting and other
provincial jurisdiction. traditional activities when they are not at the
minesite.
Cameco’s management knew that failure to
work effectively with Northern By November 1999, 450 aboriginal
Saskatchewan residents would add cost and employees, representing about 45% of the
complexity to all aspects of the permitting site operations workforce, made Cameco
and licensing process and could even one of Canada’s leading industrial
undermine the sustainability of the entire employers of aboriginal people. Northern
industry in the region. People were not people employed in Cameco’s mining
prepared to support the mining development operations collectively earn approximately
unless it provided them with meaningful C$20 million in direct salaries and wages
benefits such as employment and business every year, and the majority of this
opportunities. employment income remains in the north.
Salaries are attractive (Cameco employees at
In response, the firm developed a complex its Key Lake minesite average $56,000 per
array of economic, social and community year including benefits) and most
relations programs, with a strong focus on communities have little other permanent
employment and business development. wage based employment.
Cameco has facilitated the integration of
aboriginal northerners by giving priority to Cameco has cooperated with various
northern hiring, requiring contractors to agencies representing federal and provincial
meet northern hiring targets, maintaining a governments, and First Nations and Metis
seven-day in, seven-day out work schedule organizations to develop a proactive, long-
and a network of northern air traffic pick-up term labour force development strategy. In
points for employees. This system makes it 1999, Cameco invested more than a million
convenient for northern employees to work dollars in post-secondary education and
in the mines one week and remain in their training support, scholarships, education
home communities the next, often awards programs, summer student


- 23 -

employment, science program sponsorships,
school site tours, school-based athletic Chart 4-1 Cameco Northern/Aboriginal
programs and career information initiatives. Cameco Northern/Aboriginal Purchases

All were designed to encourage northern

Purchases in CAD$
$93.3
100 $74.5
aboriginal children to stay in school, pursue

Millions
$44.5 $44.1
50 $22.8 $27.9
post-secondary training and consider 10.6 16.7
0
occupations in the mining industry. As a 1991 1992 1993 1994 1995 1996 1997 1998

result of these efforts, Cameco is beginning Year

to experience substantial gains in the Purchases
employment and advancement of aboriginal In addition to employment Cameco

people in the management/supervisory, systematically promotes northern business

technical/professional and trades development, giving preferential

occupations. As of September 1999, consideration to suppliers with northern and

Cameco directly employed 20 aboriginal aboriginal involvement. Volumes of

managers/supervisors, 42 aboriginal northern purchases have increased by 880%

employees in technical/professional over eight years, rising from about C$10

occupations and 40 aboriginal tradespeople. million in 1991 to more than C$90 million
in 1998 (see Chart 4-1). Northern
procurement now represents a very
substantial part Cameco’s total purchases in
support of its northern Saskatchewan mining
operations.

Northern Resource Trucking (NRT) is one
example of a successful northern aboriginal
business nurtured by Cameco’s northern
business development strategy. NRT’s 71%
aboriginal ownership consists of nine First
Nations and three Metis communities


- 24 -

representing the northern Dene, Woodland The efforts of Cameco and other northern
Cree and Metis people of northern Saskatchewan mining firms have
Saskatchewan. Today NRT employs about precipitated a fundamental shift in the
140 people, has annual sales of C$18 million overall development capacity of northern
and has a permanent office and transit Saskatchewan. The education level of the
warehouse in the north. area is improving and northern aboriginal
peoples have many more professional and
Another example is the Mudjatik/Thyssen managerial opportunities than ever before.
joint venture, owned by Thyssen Mining The revenue and associated salaries enables
Construction Ltd. and the Mudjatik communities to be more financially self-
partnership, a consortium of northern sufficient and enhances the overall
aboriginal partners. In 1999 they provided economic capacity.
over C$39 million in underground mining
and construction services to Cameco, While, the short-term economic viability of
employing more than 100 aboriginal people the region is still very dependent on the
in some of the highest paid industrial jobs mining industry, over the long-term the
available. Other examples include Tron increased capacity will make it easier to
Power, wholly owned by the English River identify and develop alternative economic
First Nation, which had Cameco contracts activities.
worth more than C$9 million in 1999.

Cameco has developed extensive
community consultation and involvement
procedures and has even appointed Chief
4.2 The Porgera Project, Papua New
Harry Cook, Chief of the Lac La Ronge
Guinea
First Nation, the largest First Nation in
Situation
Saskatchewan, to Cameco’s Board of
The Porgera Project is a world-class gold
Directors.
mining operation situated in the remote


- 25 -

highland province of Enga in Papua New capital cost exceeding one billion dollars
Guinea (PNG). Gold in this area was first US. Key players involved in impacting the
discovered by John Black, an Australian success of the project were:
patrol officer, on March 25,1939. This
discovery coincided with the western • Local Landowners;
world’s making first contact with the people • National Government;
of the Porgera valley. Due to the remote and • Provincial Government; and
hostile environment encountered in the • Joint Venture Partners.
Porgera Valley, exploration activity was
limited until the 1970’s when Placer Pacific Local Landowners - The mining
Ltd. began exploration in this unique area. development permit approval process in
In 1979, a joint venture was formed PNG is unique due to their land ownership
between Placer Pacific Pty. Ltd, Rension structure. In PNG, landowners have control
Goldfields Pty. Ltd. and Mount Isa Mines over land surface rights. No activity
Ltd. in order to further exploration activity. proceeds on traditional clan land without the
In the mid 80’s, with the discovery of a full authorization and support of the
high-grade zone called “Zone Seven,” landowner.
commercial development of the Porgera
gold deposit became a possibility. The Special Mining Lease area defined for
Concurrent with further mineral exploration the Porgera Project occupied over 2,200
and preparation of a feasibility study, the hectares of land. Detailed genealogy studies
Joint Venture engaged in local training, were conducted on the special mining lease
community relations and business to identify landowners and their traditional
development activity. In 1988 a decision clan land boundaries. Seven clan groups
was made by the joint venture partners to were identified which were further broken
proceed with the development of a mining down into sub-clan groups totaling twenty-
operation, subject to receiving the necessary three. Identification of the geographical
permit approvals. Construction was to occur location of sub-clan boundaries presented an
in four stages over a five-year period at a interesting challenge, as historically


- 26 -

boundaries had been the cause of clan relocated families in addition to outlining
disputes resulting in tribal warfare. the criteria that would be used to determine
Development of the Porgera Project required who would receive a relocation house. Four
compensation to be paid for surface hundred families, involving over three
disturbance and consequently many old thousand people, were relocated from the
boundary disputes resurfaced. Through the active mining area.
traditional process of clan tribal fighting and
negotiation the clan boundary issues were Two important factors contributed to the
ultimately resolved success of the Porgera Project. Firstly, the
Landowner Committee played an important
Two important agreements for role by participating in frequent fora for
compensation and relocation were discussion and communication of issues and
negotiated between the joint venture concerns for the involved parties. Given the
partners and a Landowner Committee complexity of the task there were many
represented by the twenty-three sub-clan opportunities for miscommunication,
groups. The Compensation Agreement misinterpretation, and misunderstanding due
determined the rate of compensation to be to language, culture and value differences.
paid to a landowner for all improvements Secondly, the Relocation and Compensation
made on the land, as well as determining an Agreements committee structure formed the
annual lease rate to be paid to the landowner basis for successfully addressing issues.
based on land surface area utilized for There were many circumstances and
development. This Agreement included a concerns that arose that were not identified
compensation rate schedule for garden in the original Agreements that needed
vegetables, bush material houses, fences, a resolution. Due to the fact that these
wide assortment of jungle trees, vines, ferns agreements were not fixed, but flexible, they
and other bush material traditionally used by could be revisited and re-negotiated as
local landowners. The Relocation concerns surfaced. Meetings with the
Agreement documented the house design Landowner Committee were frequent
and specifications that would be built for


- 27 -

ensuring the opportunity to resolve issues royalties and taxation would be distributed.
and disputes promptly. They included commitments to construct
community infrastructure such as schools
National Government – Papua New and hospital facilities. Following the
Guinea has a democratically elected process of engagement, the National
government similar in structure to the government issued the Joint Venture
British system. One of its key roles was Partners a Special Mining Lease permit
issuing the necessary permits for allowing authorizing them to proceed with the
the Project to proceed. The Porgera Project development under the specified terms. As
was permitted under a process called the with the Compensation and Relocation
Mining Development Forum. This involved Agreements, success of the National
a series of open meetings to hear and record Government agreements was due to the fact
input at the local, provincial, and national they were “living documents”. They
levels. Two important issues became the documented the broad intent of the
focus of discussion: agreement, but many unidentified issues
needed to be, and were, clarified and
• How the wealth created from the mine resolved through an ongoing process of
would be distributed; dialogue and negotiation.
• Resolution of the environmental
impacts. Provincial Government – The Provincial
Government’s role as a stakeholder in the
These discussions then led to the Porgera Project was administration of the
negotiation of two agreements; one between provincial revenue generated by the project.
the National Government and Landowners Road construction creating access for
representatives, the other between the isolated villages became one of their
National Government and the Provincial primary roles. Providing police services and
Government. These agreements largely bringing law and order to this frontier was
focused on how the wealth generated from another role receiving provincial
the mining operations resulting from government attention. These were


- 28 -

fundamental and key elements in the success community. Compensation, local business
of the project because without a system development aspirations and training were
based on order, nothing is sustainable in the in place. With the rapid build up of
long-term. construction personnel to the mine site,
(2,000 people) the initial culture shock
The Joint Venture Partners – The experienced by this group was significant.
feasibility study completed in 1988 by The cultural learning curve was steep which
Placer Pacific, Renison Goldfields, and often resulted in landowners shutting down
Mount Isa Mines Ltd. indicated the work until issues were resolved. The
development of the Porgera gold deposit frequency of work stoppages due to local
was economically viable. A decision was landowner disputes all but disappeared once
made to develop the project as equal the Joint Venture Partners began operating
partners, subject to government approval. as a team. This involved the integration of
Once the project was approved the National community relations, lands, and business
Government exercised its option to development activities with the traditional
participate as a joint venture with a 10% construction functions. Local landowners
interest. This left the other partners with an had taught their visitors an important lesson;
equal share of 30% each. In 1993, after the project would not go forward unless all
three years of successful operation, the state landowner issues of compensation, business
increased its ownership in the property to development or other community issues
25%; the other three partners reluctantly were resolved. Billions of Dollars were at
agreeing to each reduce their ownership to stake This lesson taught the Joint Venture
25%. Partners to be good listeners and creative
problem solvers.
Due to the lengthy exploration phase
required for this project, the Joint Venture Driving Factors
Partners had time to work within the local The motivation for the Company and the
culture of the Porgera valley and develop a Community to work together was simple.
working understanding with the local The Joint Venture Partners needed the


- 29 -

support of the community to build and benefits of taxation being reinvested into
operate the project and the Community their communities.
wanted the project to proceed as they saw it
providing them with a better quality of life. The local landowners viewed the
development of the Porgera gold deposit as
The investors needed the landowners to their opportunity to improve their quality of
lease the land necessary for the project life. In this way they shared a large
development and also needed their support commitment to see the project proceed and
to ensure a stable social environment. become successful. Due to the remoteness of
Managing risk to capital invested through the Porgera valley, basic infrastructure such
active community relations programs was, as road access, schools, medical facilities
and continues to be, a strategic component and electricity were nonexistent or
of the Joint Venture Partners business plan. nonfunctional due to lack of funds for
Staffing within the Lands and Community staffing and maintenance. The Joint
relations department is maintained at healthy Venture Partner’s investment of $ 1 billion
levels, between 80-100 employees. They US dollars provided local employment
work closely with landowners to address opportunities, royalty payments and
community issues and support women’s and infrastructure.
youth organizations. Community relations
staff also work closely with locals to Successes
administer the National Government’s tax The main success of this project was the
credit program. This program allows for a win-win situation created by the primary
portion of the annual tax payable to be short- stakeholders. The community of Porgera
circuited directly into local communities achieved their goal of improving access and
impacted by the mine for the creation of services to the valley with the construction
needed infrastructure. This initiative was of a good quality road, new airstrip, and
largely in response to local landowner commercially viable electrical power supply
complaints that they were not seeing the and distribution network. Additionally, they
improved the quality of local educational


- 30 -

service and medical facilities with new manage state affairs. This is encouraging, as
school facilities, a large education trust fund it requires the support of a functional,
for advanced education, and a modern new responsible government and legal system in
sixty-bed hospital. In conjunction with order to make a sustainable developmental
these new facilities the development now contribution. The additional wealth
supports additional commercial activity to available in the community has complicated
provide service to Porgera and the the tradition of polygamy. Traditionally, a
surrounding area. wealthy man would have two or three wives.
With the new wealth generated by the mine
While the community enjoys the new wealth five, six or seven became possible. This
derived from the mining activity town invariably has led to more frequent violence
planners are thinking about life after the and breakdown within some family units.
mine closes. Their vision is to continue to Gambling, alcohol, and sexually transmitted
be a hub for goods and services. They plan disease have also become problematic in the
to have the best medical facilities in the community as people struggle with the
country thereby attracting people throughout complications of their new wealth. Through
the country to come to Porgera to receive the support of social workers employed by
medical attention. They are also planning to the mine, as well as government support
be a commercial distribution center for food workers, families are making progress
and dry goods to the residents of the Porgera dealing with these challenges. Women’s
valley and surrounding district. and youth education programs are two areas
of primary focus.
Culturally there are many changes too, some
positive and some negative. Tribal fighting Mine operation success can be measured by
is becoming a less common occurrence and the fact that the mine was constructed and
generally law and order is improving. has continued operation uninterrupted by
Government bureaucrats and politicians are social disturbances. The exceptions to this
also improving their performance as they were several minor power outages caused by
improve their capacity to govern and the downing of power transmission lines to


The Changing Resource Development Paradigm: Maximizing Sustainable Local Benefits from Resource Development

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