Sustainable Development Stakeholder Engagement Focus Group. Kennecott Utah Copper Corporation

Transcription

1 Sustainable Development Stakeholder Engagement Focus Group Kennecott Utah Copper Corporation Friday, May 6, :30 am 1:00 pm Utah Cultural Celebration Center Summary Report July 15, 2005 Prepared by: Michele Straube, Facilitator CommUnity Resolution, Inc E. Oakhurst Drive Salt Lake City, UT 84108

2 Sustainable Development Stakeholder Engagement Focus Group May 6, 2005 Meeting Summary Report July 15, 2005 I. Background II. III. IV. Stakeholders Overview of Kennecott s Community Relations Kennecott s External Stakeholder Engagement Strategy V. Sharing Kennecott s Future VI. VII. Future Focus Group Meetings Open Forum Discussion Appendices A. Focus Group Participants B. Invitation Letter C. Presentation Slides -- May 6, 2005 Focus Group Meeting D. Sharing Kennecott s Future Revised Presentation Slides (based on comments received from focus group) -1-

3 I. Background Kennecott is committed to engaging its stakeholders in a two-way conversation about its sustainable development activities. As a first step to learn more from its stakeholders people who have an interest in what Kennecott does about how they should and could be involved in the company s sustainable development efforts, Kennecott convened a sustainable development stakeholder engagement focus group in late The company had three goals in mind for the focus group effort. They wanted to: inform stakeholders about Kennecott s sustainable development efforts; seek input from stakeholders about the type of sustainable development information stakeholders think is important to receive from Kennecott, and how it should be presented to be most helpful; and learn about stakeholders desired role in Kennecott s sustainable development efforts. Kennecott hosted a meeting of the sustainable development stakeholder engagement focus group on November 14, 2003, which was attended by eighteen stakeholder representatives. Two additional stakeholder representatives who could not attend the meeting were interviewed as part of this initial focus group engagement process. The November 14, 2003 focus group meeting fostered a lively discussion which gave Kennecott valuable input about its sustainable development activities and stakeholder engagement process. In addition to receiving a good deal of positive feedback, the focus group discussions identified several opportunities for improvement: Stakeholders valued proactive and timely communications from Kennecott. They asked the company to reduce surprise and to ensure that all information provided was accurate. Stakeholders encouraged Kennecott to provide relevant information before or as decisions are made. Stakeholders sought additional education on Kennecott s sustainable development activities. There was particular interest in the company s future plans the future of mining activities, restoration and land development. Stakeholders preferred methods of receiving communications from Kennecott were personal meetings, targeted information and web-accessible information. Stakeholders sought broader distribution of Kennecott s annual sustainable development report. They requested wide distribution of a summary containing the report s essential information, as well as access to the full report for those who were interested in more detail. A complete summary report of the November 2003 focus group meeting can be found on Kennecott s website, In December 2004, many of the focus group members were interviewed by third party auditors hired by Rio Tinto, Kennecott s parent company, as part of an assurance -2-

4 review to assess Rio Tinto s and Kennecott s corporate social and environmental performance. The external reviewers sought the group s opinion on issues such as: benefits and impacts (positive or negative) from Kennecott and its operations on the local community; Kennecott s interactions with neighbors and local communities; how Kennecott consults with its stakeholders; opportunities to discuss issues of interest; areas for improvement; and community programs supported by the operation. Kennecott took this stakeholder input into consideration in updating and expanding its external stakeholder engagement strategy. The focus group was reconvened on May 6, 2005, to provide feedback on the revised external stakeholder engagement strategy, and to comment on a new stakeholder engagement activity the company is ready to launch a presentation entitled Kennecott s Future. The concept for sharing Kennecott s future with stakeholders developed in response to comments received by Kennecott at the November 2003 stakeholder focus group meeting. Seventeen stakeholder representatives attended the May 6, 2005, focus group meeting held at the Utah Cultural Celebration Center in West Valley City. The meeting was facilitated by Michele Straube of CommUnity Resolution, Inc. The facilitator prepared this summary report of the focus group discussions. This information will be used by Kennecott to continually improve its external stakeholder engagement strategy and to inform its stakeholder engagement activities. Slides accompanying Kennecott s presentations to the focus group at the May 6, 2005 meeting can be found in Appendix C. II. Stakeholders Membership in the sustainable development stakeholder engagement focus group was designed to include representation from each of the major stakeholder groups potentially interested in Kennecott s sustainable development activities. The interests included in the focus group are: federal and state regulators, federal, state and local elected officials, community leaders, environmental and conservation organizations, business / trade partners, employees and retirees, customers, suppliers / vendors, and academic institutions. -3-

5 Representatives of each stakeholder interest were invited and attended the May 6, 2005 focus group meeting. A list of participants can be found in Appendix A. The invitation letter can be found in Appendix B. One focus group participant commented that the academic institutions stakeholder interest has several subsets, including elementary / middle / high schools, undergraduate / graduate institutions, and technical institutions of learning. Another participant suggested that Kennecott retirees and their spouses be considered its own stakeholder interest, one which has recently not felt fully included in the company s engagement activities. III. Overview of Kennecott Community Relations Louie Cononelos, Kennecott s Director of Government and Public Affairs, gave a brief overview of the company s community engagement activities in the past year. The overview of KUC s Community Relations Programs included Corporate Giving, Community Relations Network, Communications and Mining Education: monetary and in-kind contributions to educational, truly needy, civic and environmental/ecological groups and organizations, as well as community and charitable groups; support for community events and health fair fundraisers; communications activities including public opinion polling, advertising, and environmental and community newsletters; preparation of a new video for the Bingham Canyon Mine Visitors Center and for distribution to all Utah public, private and parochial schools; mining education activities; and Kennecott s visitors center has hosted over 2,060,000 visitors to date. A summary of Kennecott s 2004 Sustainable Development Report was handed out to each focus group participant. The full report is available at Kennecott s website, IV. Kennecott s External Stakeholder Engagement Strategy Kennecott s revised external stakeholder engagement strategy, which reflects input received from the focus group in November 2003, has six major objectives. In engaging its stakeholders. Kennecott seeks to: keep stakeholders informed about the company s current operations and future plans; maintain a two-way dialogue on sustainable development with stakeholders; -4-

6 partner with local communities for their mutual long-term benefit; work with customers to enhance products and services; foster sustainable development policies and practices at the local, state and federal levels of government; and educate the general public about the role of sustainable development in mining. Kennecott has a multi-faceted approach to meeting these stakeholder engagement objectives. New components of the engagement strategy designed with these objectives in mind include: providing public forum opportunities to discuss Kennecott s current operations and future plans, as well as sustainable development topics; increasing the availability of informational material about Kennecott s activities, future plans and sustainable development; enhancing the company s website content ( providing briefings to interested stakeholders on key issues as they arise; and expanding customer engagement and product stewardship activities. Kennecott s goal in all its stakeholder engagement activities is to provide clear, consistent and ongoing communications to help the company s employees and stakeholders cultivate an understanding of their products and role in the marketplace to build support for Kennecott s operation. A realization of the company s commitment to sustainable development should also result in stronger relationships in the community and with regulators, as well as improved customer satisfaction. Focus group participants were asked to provide feedback on Kennecott s revised external stakeholder engagement strategy, especially whether it will meet the needs of each participant s constituency. The following comments were made: Kennecott should consider using Rio Tinto s global commitment to sustainable development as part of its own brand. One aspect of this is Rio Tinto s reliance on its own values and standards to define performance measures, even in parts of the world where no strong regulatory requirements exist, essentially defining its own corporate best practices. Likewise, Kennecott s expectation that employees perform at levels that exceed compliance needs can be seen as a showpiece for Rio Tinto. One participant suggested that future sustainable development reports should describe Rio Tinto s values / standards / commitment to sustainable development and how they inform corporate practices, and highlight that Kennecott s performance is a positive model of that commitment. One employee found the Kennecott s Future presentation reassuring, noting that open and honest communication from management to employees is critical. This person also suggested that increased one-on-one communication between employees and managers to improve transparency in decision-making would be helpful. -5-

7 The interconnection between Kennecott Utah Copper and Kennecott Land Company is confusing and needs to be clarified. Who is in charge of which activities? How will the two companies work together? Kennecott Land Company should publicize its sustainable land development activities more aggressively to promote similar activities by other developers. Kennecott could focus particularly on the amenities that are provided through sustainable land development. Kennecott employees need to be educated about sustainable development concepts, so that they see the value of this approach and buy into it. One participant mentioned that employee education has addressed this topic in recent years. Kennecott s stakeholder engagement strategy should provide ways to regularly address environmental issues such as groundwater and impact on the Great Salt Lake, and not raise these issues solely at the point of decision-making. Vendors and suppliers need to be included in the engagement strategy. Outsourcing needs to be addressed specifically. More stakeholders should be encouraged to visit the mine. Kennecott should ensure that new staff is introduced to regulatory agencies. V. Sharing Kennecott s Future One component of Kennecott s expanded stakeholder engagement strategy is to provide public forum opportunities to discuss Kennecott s current operations and future plans. Kennecott shared a new presentation entitled Kennecott s Future: Being Good Neighbors with the focus group. Key issues addressed in the presentation are mine life, environmental clean-up, and closure and land stewardship planning. Specific topics covered include: safety history; pit and concentrator expansion plans; further resource development plans; environmental clean-up and protection accomplishments; land development activities, with specific focus on the Daybreak development; and Kennecott s long-term commitment to the community and the environment. Slides accompanying the Kennecott s Future presentation given to the focus group can be found in Appendix C. The Kennecott s Future presentation has been revised -6-

8 to address the comments received from the focus group; the revised slide presentation can be found in Appendix D. Bill Champion, President and CEO of Kennecott Utah Copper Corporation, and Peter McMahon, President of Kennecott Land, gave the Kennecott s Future presentation to the focus group. Starting in July 2005, Kennecott managers will make this presentation to stakeholder groups. Kennecott began outreach training for its managers within a few weeks after the May 6, 2005 focus group meeting. Ideally, the presentations should be given by a Kennecott Utah Copper / Kennecott Land team, since topics covered in the presentation cross corporate boundaries. However, the outreach training will prepare presenters to address questions that arise if they are giving the presentation on their own. Focus group participants were asked to comment on the Kennecott s Future presentation and to identify questions that the presenters can anticipate and should be ready to answer. The following comments were made: General Comments About the Presentation The audiences for this presentation may not be innately knowledgeable about Kennecott, mining or sustainable development. The presentation should include more background information and less jargon. Some terms that may need definition or further discussion are: o sustainable development o LEED certification The presentation should clearly foster an open door policy for communications with Kennecott. The presentation does not talk about the economic value that mining has added to communities and the state (e.g., contributions to ZAP from the sales taxes paid by Kennecott). It could give historical data, as well as future projections. Will the presentation be tailored to the audience? E.g., will more detail be given about environmental issues if the audience is an environmental organization? Will Kennecott be prepared to give contact information for a go to person if questions arise during a presentation that the presenter cannot answer? One participant suggested that Rio Tinto s philosophies and commitment to sustainable development should be reflected in the presentation to build trust and reassurance. Another suggested that the presentation should focus on the ethics of taking care of the community through proactive environmental management. The presentation should talk about Kennecott s use of local suppliers and businesses. -7-

9 Mention should be made of sustainable building products that are being used (or can be used) in Kennecott Land s developments. The business community may see opportunities with increased awareness. The presentation contained a good balance between Kennecott Utah Copper and Kennecott Land Company information. This balance should be maintained, even when a manager from only one of the companies is available to do a presentation. All audiences will be interested in hearing Kennecott s plans for the long-term sustainability of its land. Long-Range Planning and Community Involvement in Kennecott s Future Much of the locked-up land left behind by mining supports wildlife habitat and species diversity. As access to these areas increases, Kennecott needs to be sensitive to the impacts of human disturbance. Restricted access was viewed as an important aspect of protecting the wildlife and its habitat. What type of postmining long-range planning is Kennecott doing to determine which areas along the west bench can be developed and which areas should be preserved for open space, trails and wildlife habitat? How is the public going to be involved in any such long-range planning? Several participants identified the need for community involvement in shaping Kennecott s future. Has Kennecott initiated any discussions with communities, the county and relevant water districts about regional wastewater treatment and disposal needs that will arise as a result of Kennecott s long-range land development plans? Activity-Specific Questions What is the future of the Copperton community and township as mining continues and/or expands? When will a light rail line (TRAX) be available to South Jordan and the Daybreak community? Is there a timetable for the development of Little Valley in Magna? Several participants asked for more detail about the tailings dam expansion, with particular focus on the ultimate footprint of the tailings impoundment and whether there will be any increased discharges to the Great Salt Lake. This issue was clarified by Kennecott s response that the tailings dam footprint will remain within the 1996 permitted boundaries and that the expansion is more focused on height. What are the beautification plans for the Old Bingham High School site? -8-

10 The Magna Improvement District has received a number of phone calls concerning the concentrate (sulfates and selenium) that would result from cleaning the contaminated groundwater in the Southwest Jordan Valley and asked for an update. VI. Future Focus Group Meetings Recognizing that Kennecott s external stakeholder engagement strategy is evolving, Kennecott asked the focus group participants how they would like to be updated on the company s stakeholder engagement activities. The majority of participants felt that an annual meeting would be helpful, and would provide an opportunity for stakeholders to hear each other s interests and concerns. Those who did not want to meet annually were concerned about meeting for meeting s sake. Bill Champion suggested that some future meetings could include an educational component such as a field trip with a walk-through of the property. Lynn defreitas suggested that such an excursion include a visit to the inland shoreland bird preserve. All participants were interested in this more interactive option. One employee suggested that educational opportunities such as this field trip should be offered to all employees, many of whom have never seen any Kennecott operation other than the one in which they work. The group decided to meet semi-annually to receive updates about Kennecott s external stakeholder engagement activities, with strong support for interactive activities during the meeting. Focus group participants were also encouraged to contact Kennecott staff directly at any time with suggestions, questions or concerns about its operations or stakeholder engagement activities. VII. Open Forum Discussion The focus group meeting concluded with lunch and an opportunity for open discussion about any issues of interest to the participants. The discussion centered on the engagement strategy and Kennecott s Future presentation. Specific observations have been included in previous sections of this report. Kennecott personnel were available at the end of the meeting for one-on-one conversations with remaining focus group participants. The substance of these discussions was not recorded or summarized. -9-

11 Appendix A Focus Group Participants At May 6, 2005 Meeting

12 KENNECOTT UTAH COPPER CORPORATION SUSTAINABLE DEVELOPMENT STAKEHOLDER ENGAGEMENT FOCUS GROUP PARTICIPANTS MAY 6, 2005 MEETING Walter Baker Utah Division of Water Quality Dept. of Environmental Quality Ken Burton University of Utah College of Mines and Earth Sciences Annette Call Salt Lake County Director Rep. Chris Cannon s Office Jackie Christensen Kennecott Employee Mayor Lynn Crane Herriman City Gary Curtis Copperton Town Council Retired Kennecott Employee J.D. Davis University of Utah Development Office Lynn defreitas Friends of Great Salt Lake Senator Brent H. Goodfellow State Senator Ed Hansen Magna Water Company Councilman Mike Jensen Salt Lake County Council David Litvin Utah Mining Association Laura Jo McDermaid Magna Chamber of Commerce Jack Nielsen Magna Township Planning & Zoning Kennecott vendor Dan Peay Magna Community Council Shane Rice Kennecott Employee Todd Richards Magna Area Council Kennecott Observers Larry Bunkall Bill Champion Louie Cononelos Vania Grandi Chantae Lessard Peter McMahon Marcelle Shoop Kort Utley Facilitator Michele Straube

13 Appendix B Invitation Letter

14 Kennecott Utah Copper Corporation P.O. Box 6001 Magna, Utah (801) William H. Champion President and CEO April 15, 2005 Dear [focus group participant]: When Kennecott met with the Sustainable Development Stakeholder Engagement Focus Group in November 2003, we received valuable input from those participating in the group for enhancing Kennecott s ongoing stakeholder engagement efforts. We would like to invite you to another Stakeholder Engagement Focus Group meeting to describe these efforts in more detail and receive your feedback on a presentation designed to inform stakeholders about Kennecott s future. Date: Friday, May 6, 2005 Time: 8:00 a.m. - Continental breakfast 8:30 a.m. - Convene discussion Working Lunch 2:00 p.m. Conclude meeting Place: Utah Cultural Center in West Valley City (This is the location we met in November 2003; directions are attached.) Facilitator: Michele Straube of CommUnity Resolution, Inc. Dress: Casual At the meeting we propose to: Review Kennecott s enhanced stakeholder engagement strategy and obtain your feedback Review our presentation: Kennecott s Future and obtain your feedback Provide an opportunity for questions and discussions concerning Kennecott Our external engagement strategy can be summarized through the following statement: Kennecott seeks to develop partnerships and obtain input from key stakeholders and is open to listening to divergent points of view. One of the company s strategic objectives is to provide stakeholders with information relevant to their needs and interests through timely, open and honest communication that promotes an understanding and appreciation of the intertwined relationships between Kennecott and those stakeholders.

15 Driving this statement are the following goals: Maintain a two-way dialogue with stakeholders regarding Kennecott s current operations, plans for the future, sustainable development and other issues. Partner with local communities for long-term mutual benefit and be actively involved in the affairs of the communities. Work with customers to enhance products and service. Work at the federal, state and local levels of government to foster sustainable development practices and policies. Educate the public about the importance of mining and sustainable development. The strategy continues the company s historical stakeholder engagement activities and adds new future engagement activities to address the interests and concerns that you raised at the focus group meeting. Suggested additional future activities include: An increased number of meetings annually between Kennecott management and stakeholder groups to present targeted and relevant information about Kennecott activities. More frequent newsletters and an expanded distribution network. A broader message about Kennecott activities to include information about the future, such as the future of mining activities and non-mining lands, and education about sustainable development. Enhanced content for the Kennecott website. An update on information presented during tours of Kennecott s mine to include environmental and sustainable development information. A greater emphasis on proactive communication to inform and include stakeholders in a timely manner before major decisions are made. We appreciate your willingness to participate in this meeting. Please confirm your availability to attend this meeting by contacting Vania Grandi, Senior Communications Advisor, Sustainable Development, at grandiv@kennecott.com or at Please contact Louie Cononelos at or Marcelle Shoop at if you have any questions or concerns. Sincerely, Attachment: Directions to Utah Cultural Center William Champion

16 Appendix C Presentation Slides May 6, 2005 Focus Group Meeting

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25 Appendix D Sharing Kennecott s Future -- Revised Presentation Slides (revised based on comments received from focus group)

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