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Beyond the Gate: Corporate Social Responsibility and Mining

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Beyond the Gate: Corporate Social Responsibility and Mining
The University of British Columbia - School of Mining Engineering
Vancouver, Canada | March 2004
www.waynedunn.com

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Beyond the Gate: Corporate Social Responsibility and Mining

  1. 1. Beyond the Gate Beyond the Gate: CSR & Mining UBC Mining Lecture March 19, 2004 Vancouver, Canada Presented by: Wayne Dunn www.waynedunn.com info@waynedunn.com A History of Creating Innovative PartnershipsPage 1
  2. 2. Beyond the GateCSR is a Value Strategy Share price of a CSR failure that rendered a multi- billion dollar reserve un-developable ~$13.00 $0.29 A History of Creating Innovative PartnershipsPage 2
  3. 3. Beyond the GatePresentation Objective Basic understanding of the Why, How and How Not of CSR and Mining. Know of a couple of Best Practices A History of Creating Innovative PartnershipsPage 3
  4. 4. Beyond the GatePresentation Outline  WHY  HOW and HOW NOT  Some Examples  Questions/Discussion A History of Creating Innovative PartnershipsPage 4
  5. 5. Beyond the Gate Why is CSR happening? Globalized world is demanding more of business…  Global media – The CNNization of the world – remote local issues direct to television screens  Proliferation of NGOs and CBOs – direct, well organized and financed support to communities  Internet and other communications innovations – direct communications from remote projects to worldwide audience  Global Democratization – increased attention to local issues A History of Creating Innovative PartnershipsPage 5
  6. 6. Beyond the GateCSR and Development Quotes from the World Summit  UN Secretary General Kofi Annan “lasting and effective answers can only be found if business – working together with other actors including government and civil society– is fully engaged ”  Prime Minister Chretien (Canada) “Building creative and innovative partnerships to promote sustainable development is a defining theme of our global agenda”  EU President/ Prime Minister of Denmark Anders Fogh Rasmussen, “The business sector has a very important role to play in sustainable development. To pursue this goal, we must all work together; governments, the business sector and civil society. I look forward to further cooperation between the EU and private business.” A History of Creating Innovative PartnershipsPage 6
  7. 7. Beyond the Gate The Mining World Has Changed • “We are determined to provide multi-skilling to workers and assist them to cope with retrenchments. This is a must and not a choice for industry” • “It is important for mining to ensure that economic benefits accrue to society as a whole and more specifically to communities affected by mining . . . The social environment has not, in my opinion, been adequately addressed in the past” Hon. Phumizile Mlambo-Ngcuka South Africa Minister of Minerals and Energy A History of Creating Innovative PartnershipsPage 7
  8. 8. Beyond the Gate The Mining World Has Changed Social issues are as important as Technical Issues A History of Creating Innovative PartnershipsPage 8
  9. 9. Beyond the GateCSR IS about value Bougaineville - corporate practices were directly implicated in provoking civil war, allegedly cost Rio Tinto $3 billion (Stanford Univ study) Tambo Grande Ovacik/Eurogold Saskatchewan Uranium Industry A History of Creating Innovative PartnershipsPage 9
  10. 10. Beyond the GateMining IS a Development Business  Mining industry is amongst world leaders in creating local value from investments and operations.  SD/CSR will continue to grow in importance. A History of Creating Innovative PartnershipsPage 10
  11. 11. Beyond the GateBeyond Beads ‘n Trinkets  To create bottom line value CSR must create meaningful development value in areas such as: – Poverty Alleviation – Community Health – HIV/AIDS – Rural Development – Local Capacity Development – Infrastructure Support Value Created is not measured in money spent A History of Creating Innovative PartnershipsPage 11
  12. 12. Beyond the GateSD/CSR Implementation Challenges more than a warm fuzzy issue Spending isn’t the answer ?Results? Framework Plan System Solving social problems Objectives A History of Creating Innovative PartnershipsPage 12
  13. 13. Beyond the GateSD/CSR Implementation Framework  Focus on Value Creation  Be systematic and integrate with overall development objectives of the country/region  Catalyst for Development – development partnerships  Accept that there will be negative impacts (e.g. AIDS)  Build from local strengths / mitigate local weaknesses  Begin closure planning NOW  Build international relationships  Communication is critical – appropriate and strategic  Bring the industry along with you  Quantify objectives and results A History of Creating Innovative PartnershipsPage 13
  14. 14. Beyond the GateSome Examples Placer Dome South Africa Poverty alleviation HIV/AIDS Capacity development Eldorado Gold - Kisladag Poverty alleviation Environmental rehabilitation Rural development Capacity development Porgera (PNG) Infrastructure Rural Development. National HIV/AIDS Strategy Closure Planning Approach A History of Creating Innovative PartnershipsPage 14
  15. 15. Beyond the GatePlacer Dome Care Project  Original objective – mitigate the social and economic impacts of retrenchment and assist 70% of family units to become economically active  Innovative rural development and HIV/AIDS program, delivered at community level across 3.5 million sq km of southern Africa – Extensive involvement of women and families – Pioneered new 13 step process with extensive counseling, training and support. (Process is being copied by other development programs in the region) A History of Creating Innovative PartnershipsPage 15
  16. 16. Beyond the GatePlacer Dome Care Project  HIV/AIDS program won prestigious Development Innovation Award at World Bank’s Development Marketplace – Over 2,400 development projects from 122 countries  CSR can create real development value A History of Creating Innovative PartnershipsPage 16
  17. 17. Beyond the GateFuture Development Current reality Mining Outreach Partnership Helps to mitigate the social and economic impact of AIDS Healthy worker Virtually no support for families in rural villages leaves village Challenge is too vast for any Financially sustainable through for employment single company to address fee for service approach Scalable beyond the mining industry Training, Support and Medical Supplies Family Assist Family to Employed Medical Family and Counselling Worker becomes Care for terminally ill Worker Repatriation Community and HIV Positive and Supporting Terminally Ill Prepared to Integration Eventually develops Extended Man Returns Recieve with AIDS Care Process assists Family To Village Worker Community Family member to Services Develop alternative Economic Opportunity Without intervention the worker goes home to overwhelm family who have no support and no means of economic sustainabilty A History of Creating Innovative PartnershipsPage 17
  18. 18. Beyond the GateEldorado Gold - Kisladag Project  Strategic approach to use mining project to facilitate sustainable rural development – Development of agriculture related industries and infrastructure; – Increased involvement of women; – Improved grazing and land management (reduce desertification) A History of Creating Innovative PartnershipsPage 18
  19. 19. Beyond the GatePorgera  Working to leave behind a sustainable community – Development of local, non-mine related, business – Creation of local infrastructure to support a sustainable community after the mine leaves – National HIV/AIDS PPP Strategy – Innovative closure planning A History of Creating Innovative PartnershipsPage 19
  20. 20. Beyond the GatePorgera Closure Framework A History of Creating Innovative PartnershipsPage 20
  21. 21. Beyond the GateSummary Why Because it is smart business and creates/preserves value How not Don’t simply throw money at social issues How Systematic and Value Creation Focused Measure, Measure, Measure Examples South Africa, Turkey, Papua New Guinea A History of Creating Innovative PartnershipsPage 21
  22. 22. Beyond the GateMain Point CSR is about value creation not Charity A History of Creating Innovative PartnershipsPage 22
  23. 23. Beyond the GateQuestions and Discussion A History of Creating Innovative PartnershipsPage 23

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