Local development: strategic relationships

Transcription

1 Local development: strategic relationships Fernanda Diez, Manager of Research and Intelligence PeruMin, 23 September

2 Esta presentación ICMM Asociaciones para el desarrollo Percepciones públicas de la minería en el Perú Caja de herramientas para entender las relaciones con comunidades

3 ICMM at a glance CEO led 23 Company members 35 Association members Over 950 sites in 59 countries

4 ICMM member companies Norway Canada Barrick Goldcorp Teck USA Freeport McMoRan Copper & Gold Newmont UK Anglo American Lonmin Rio Tinto France Areva Hydro Switzerland Glencore Russia Polyus China MMG Japan JX Nippon Mining and Metals Mitsubishi Materials Sumitomo Metal Mining Chile Antofagasta Minerals Codelco South Africa African Rainbow Minerals AngloGold Ashanti Gold Fields Australia BHP Billiton South32

5 Asociaciones para el desarrollo cómo surgió la iniciativa : ICMM undertook comparative research across 33 countries, taking 4 country case studies in depth, to Understand the direct economic and social impacts of mining Identify critical success factors that enabled some countries to benefit from resource endowments and avoid the resource curse Jointly agree practical steps for industry, governments, civil society and development agencies to enhance success factors Finding: the resource curse is not inevitable /mpd

6 Mining: Partnerships for Development Toolkit The MPD Toolkit provides a systematic approach to: Measuring economic & social impacts and their interaction with the existing governance framework Assessing the main causes (success factors and failings) underlying impacts Encouraging multi-stakeholder collaboration to develop practical partnership ideas that address capacity gaps and enhance mining s contribution Applied in 7 countries to date: Peru, Chile, Ghana, Tanzania, Lao PDR, Brazil and Zambia /mpd

7 A model to transform mineral wealth into development needs: * collaborative solutions around six partnership areas: local content, revenue management, social investment, regional development, fiscal policy and dispute resolution * Robust evidence base detailing the contribution of mining to social and economic development over time * Understanding perceptions

8 The MPD process Inception Analysis Dialogue Action planning Implement Continuous Stakeholder Engagement c12 weeks c20 weeks c4 weeks 8 16 weeks Ideas for moving forward: Social Investment What is our collective objective? What could each stakeholder group contribute to a partnership? Chamber of Mines Work to convene/support for a for engagement, transparency and trustbuilding Government Local government capacity and finance, to enable engagement, including with DDCC and DSA Creating a framework for cooperation between stakeholders Civil Society Institute of Directors: champions ISO26000, and other frameworks/standards Civil Society Openness to engagement, and communication /mpd /mpd

9 Key insights Success factors are multi-faceted Case studies have shown: Positive impacts depend on all of these factors Sound national macro-economic management Revenue transparency Avoidance of mineral revenues funding conflicts over their distribution Reasonable standards of national governance Responsible behaviour by companies Implementation of key international initiatives: EITI, Voluntary Principles but can be further enhanced by these Quality of governance at the sub-national level (regional and local institutions) Quality of collaboration between government, companies, development partners and civil society organizations to enhance contributions in particular challenging areas, including: Mining AND (1) poverty reduction, (2) revenue management, (3) regional planning, (4) local content, (5) social investment, and (6) dispute resolution. These emphasize the inherently local nature of mining and the collaborative support needed to overcome challenges in these areas.

10 Some insights NATIONAL versus LOCAL level Impacts Case studies have shown that mining often generates large benefits at the national level BUT benefits at the local level are more limited at the same time, the local level suffer the largest negative impacts (e.g. in-migration, environmental impacts, resettlement, disruption)

11 2012 Peru findings (i) Between 2006 and 2012 the mining sector benefitted from strong international metal prices the aggregate contribution on the economy has grown. BUT repeated instances of social conflict and tension around individual mines Despite positive aggregate contributions and perceived benefits at the local level, stakeholder expectations are not being fully met, and the social acceptability of individual mines is increasingly at risk.

12 2012 Peru findings (ii) The Peruvian mining industry has not yet formulated a collective vision around its support for, and contribution towards, achieving public objectives, including improving social inclusion. The industry s approach to communication reflects this: companies tend to showcase individual local-level programmes and projects. There is scope for the industry to engage more strategically with the public sector, particularly at the inter-ministerial, regional, provincial and district levels. The corporate sector could do more to align its mandated and voluntary social investment contributions with a credible set of public objectives. How can they be delivered in a way that would strengthen trust in public entities?

13 Stakeholder Research Toolkit The toolkit provides step-by-step guidance for companies seeking to measure and monitor their reputation among all stakeholder groups.

14 Peru survey findings Mining is not a very well accepted industry by Peruvians. The mining sector s performance in delivering benefits is assessed quite negatively. Peruvians think that benefits from mining are distributed unfairly. Peruvians have little trust in any stakeholder group to act in society s interest. Peruvians are divided on whether foreign involvement in the mining sector is beneficial. Perceptions of the industry s community engagement practices are very muted. Non-mining respondents appreciate the industry far more than those in mining regions do.

15 Peru survey findings Community relations, transparency, and community development / poverty alleviation are the most important drivers of trust The environment is another key predictor of trust among mining respondents. National economic and developmental contributions of the sector are what drive higher level of trust among the general public. Trust in the mining sector drives acceptance Positive views of foreign companies in Peru are important direct pathways to trust in and acceptance of the sector. Direct drivers of social acceptance relate to the industry s economic and development contribution.

16 Understanding Community Relations Toolkit In some situations, relationships can be described as conflictual. You ll know this from your experience here where the Peruvian Ombudsman s office reported 210 social conflicts in their June 2015 report. The majority of these conflicts were sparked by concerns over the environmental impact of mining and other extractive industry activities. Improving company/community relations and community support is important for the industry, yet until the development of ICMM s UCR toolkit, no publicly available guidance on how communities can objectively assess the state of a company s relationship with communities was available. Understanding the basis for community support, or the reasons for the lack of it, is critical to developing effective approaches for improving it.

17 Understanding Community Relations Toolkit This year we piloted the toolkit in Canada and Peru in order to determine if the toolkit was fit for purpose and what refinements were needed before it is finalized The Peru pilot highlighted interesting findings which will help refine the toolkit in terms of: the need for a common understanding of terms (such as trust and respect ) the usefulness of the internal assessment piece which is often missing from other perception work the toolkit as a useful means for building a cross functional understanding in companies (beyond just community relations and including others such as supply chain, human resources and communications) e-mensual-de-conflictos-sociales-n-136-junio-2015.pdf

18 For further