Mining Case Studies Tanzania: Partnerships for skills training In Tanzania, gold mining companies and the Tanzanian government have formed a partnership specifically to address the need for technical vocational skills in the local mining sector. Led by AngloGold Ashanti and Acacia Mining plc, the Integrated Mine Technical Training (IMTT) Programme was initiated in 2008 through the Tanzanian Chamber of Minerals and Energy and the Tanzanian Vocational Education and Training Authority. Hosted by an existing vocational training centre in Moshi, the IMTT programme offers training aligned with international standards. AngloGold Ashanti and Acacia Mining plc sponsor 80 per cent of the students, with nine other mining companies supporting the remainder. The programme is an example of how leading gold-mining companies can work with local authorities to design public-private partnerships that have a meaningful impact on the ground. Canada: Opportunities for indigenous communities Understanding the impact of gold mining on local communities before, during and after the life of a mine is a vital part of responsible mining. This includes dealing not only with national governments, but understanding the needs and aspirations of indigenous communities. New Gold’s New Afton Mine started operations in July 2012. The site is located in the asserted traditional territory of the Tk’emlúps and Skeetchestn Indian bands, who are part of the larger cultural group known as the Secwepemc or Shuswap First Nation. The mine operates under a mutually-beneficial ‘Participation Agreement’, which has established shared environmental goals, economic opportunities and social and financial considerations. The New Afton Participation Agreement ensures business, employment, training and educational opportunities for the local First Nations. In 2012, 23 per cent of New Afton employees were First Nations, and the company engaged with 30 local First Nation businesses, providing them with C$14.5 million (US$13.9 million) in aggregate revenue. New Gold also sponsors scholarships for local First Nations and provides education and job opportunities, along with funding for sports, healthcare and community groups. Chile: Harvesting water from snow Responsible gold-mining companies are mindful of their impact on the local environment, but some are also using their expertise in water management to assist communities in remote locations. The Maricunga and La Coipa mines are located approximately 4,000 metres above sea level in the Atacama Desert, one of the driest places on Earth. The water in this basin is a vital factor in the region’s ecosystems, supporting wetlands that are crucial habitat for wildlife including vicuna, flamingo and guanaco. In this water-stressed area, Kinross Gold Corporation has undertaken extensive studies to better understand the hydrological cycle, implemented measures to improve water efficiency and worked with local water authorities to improve water stewardship. Annual precipitation is approximately 150 millimetres and comes as snow, which if not captured is lost to evaporation. In 2011, Kinross installed two 100-metre lines of wooden snow fencing, aiming to improve snowmelt infiltration into groundwater. The company is optimistic that the snow fences can result in meaningful contributions to the local water supply. Kinross and the Chilean National Irrigation Commission are exploring a joint research project to test the efficacy of snow harvesting and evaluate its potential in other water-stressed areas. Finland: Supporting local fire fighters Gold mining companies require a skilled workforce to operate their sites. The infrastructure, equipment and training in use in mining operations often have wider benefits to communities beyond their immediate economic impact. Fighting fires and rescuing people injured in traffic accidents isn’t a regular ‘day at the office’ for members of the mine rescue team at Agnico-Eagle’s Kittilas mine. But on any given day, the team puts their emergency response skills to the test in real-life emergency situations as members of their local volunteer fire departments. According to Jani Jauhojarvi, Training Coordinator and Head of the Volunteer Fire Department at the Kittila mine: “We want to make a difference in our community but the benefit really goes both ways. “By taking on these volunteer roles, our employees are often managing real-life crisis situations, which sharpen their skills and improve their overall level of health and safety preparedness on the job, too. Being prepared and teamwork are two of the most essential elements of any solid health and safety programme.” Guatemala: Investing in social infrastructure While responsible gold mining creates jobs and economic opportunities, many companies also choose to invest in social infrastructure outside of their immediate sphere of operations. Often, this takes the form of partnerships with national or regional governments or community organisations, so that investments are targeted to meet the needs of local populations. Goldcorp’s Marlin mine, along with Guatemala’s Citizen’s Development Corps, has created the Fundacion Sierra Madre (the Sierra Madre Foundation). Its mission is to initiate and implement sustainable, community-based development and capacity-building programmes in the municipalities of San Miguel Ixtahuacan and Sipacapa. The Fundacion has become an important part of the local community. It has been involved in infrastructure development, working on more than 100 construction projects, including schools, computer labs, recreation halls, sports fields, roads, and improvements to water and sewage systems. It has also built and equipped a community medical centre in San Miguel and vocational classrooms for electrical and automotive mechanical training. Papua New Guinea: Supporting the financial system Gold is found in developed and developing countries. Some gold-mining companies are working to help overcome challenges faced by low-income and remote communities, such as access to financial products. For many people around the world, easy access to banking services is taken for granted, with branches or automated teller machines (ATMs) on virtually every street corner. For the residents of Porgera, however, this is not the case. But for the first time in 10 years, they now have a bank branch and two ATMs, thanks to a long-term partnership between Barrick Gold and the Bank of South Pacific (BSP). The region’s previous bank branch had closed due to the precarious security situation, and the closest branch was in the provincial capital, Wabag - 75 kilometres away over difficult terrain. Barrick asked BSP to consider building a branch with retail services in the Porgera Valley, so that employees and the community at large would enjoy better access to financial services. After careful consideration, BSP decided to go ahead. Having a bank branch where residents can make deposits means that there are fewer cash transactions, helping crime prevention, increasing personal savings and reducing cash in homes. The bank also caters to small businesses, offering access to credit, which will helps owners to build their businesses locally. Ghana: Healthcare Golden Star Resources provides National Health Insurance Scheme coverage for all its Ghanaian employees and their immediate families, as well as providing mine site clinic access for some 5,600 people (employees and their registered family) for 2012. Golden Star Resources has upgraded its local clinics to better provide services to its employees. As part of their corporate responsibility programmes, Golden Star built a health centre at Nsadweso, an Outpatients Department at the Prestea Government Hospital, nurses quarters at Bogoso, a mini-clinic at Brakwaline, and a community health post at Bondaye. Golden Star is a supporter of Project C.U.R.E. (www.projectcure.org), which, since 2003, has delivered 29 containers of medical equipment to Ghana, serving over 18 million people. In partnership with the German aid agency GIZ, Golden Star delivers health and wellbeing programmes to its employees and to its stakeholder communities. Russia: Developing a skilled workforce Kinross’ Kupol operations are located in the remote Chukotka region of northeastern Russia, 200 kilometres from the nearest town. While mining has historically been a cornerstone of the region’s economy, most of the previous mining was completed decades ago and did not employ modern technologies. Kupol is one of only a few significant employers in the area, providing much-needed jobs at its two underground mines – Kupol and Dvoinoye, and processing mill. The mine operates an on-site training centre that helps locals acquire the skills to work at modern mining operations. Workers who complete the training receive accredited professional certifications recognised throughout Russia under a licence obtained from Chukotka’s Department of Education. Currently, the centre provides 36 different certificates in such careers as underground miner and haul truck driver. Since the centre opened in 2008, approximately 2,000 people have been trained and Kinross has issued more than 860 certificates to employees, including 67 indigenous residents. Kyrgyz Republic: Local purchasing Centerra’s Kumtor mine is the largest private sector purchaser of goods and services in the country, with over $70 million procured within the Kyrgyz Republic in 2013. Due to quality issues, metal grinding balls were only procured internationally until 2012. These metal balls are used to crush and mill ore in preparation for the gold extraction processes. In 2012, Vulcan Plus was established in the Kyrgyz Republic with the primary purpose of supplying Kumtor with a portion of its grinding balls. In 2013, Kumtor purchased $1.7 million grinding balls from this supplier. Another example is the safety and specialist working clothes worn by workers at the Kumtor mine. Many are supplied by a local company Aiko Seiko LLC, based in Karakol, which was founded by a female entrepreneur. Aiko Seiko demonstrated it could consistently meet Kumtor’s quality, quantity and safety requirements, becoming a preferred supplier. Established in 2003, the company now employs approximately 120 people.