Maximising mining related employment for Kanak people p in New Caledonia. Rosemary Taufatofua November 2011
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1 Maximising mining related employment for Kanak people p in New Caledonia Rosemary Taufatofua November
2 Background Mining (nickel and cobalt) the backbone of the New Caledonia economy the world s fourth thlargest producer, ~ 12% of global l nickel production. New Caledonia s has approximately 25% of the world s resources. accounts for between 7 10% of the country s GDP contributing 80% towards foreign earnings. Vale s Goro Nickel is located SE of Noumea in New Caledonia, and is one of the largest mining projects under construction in the world. The Goro mine is expected to be fully operational by
3 Vales commitment t to support Kanak socio-economic i development Valé s Sustainable Development Policy (2009) guides CSR. Underpinning this are several international principlesp ILO Conventions - rights to cultural identity, traditional lands and territories, self-determination & participation in development planning. UN Declaration on the Rights of Indigenous Peoples - minimum standards for the survival, dignity and well-being of Indigenous peoples International Council on Mining and Metals (ICMM) principles - especially principle 3 - Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities. 3
4 Key messages With a strong mining sector New Caledonia should be able to reduce the socio-economic disparity which exists between the Kanak and French population The paper will suggest that in order to provide sustained economic participation for Kanak people, efforts need to be framed within the broader geo-political and socio-cultural o cu context t of communities providing an integrated approach to longer term Kanak employment. 4
5 Scope of presentation This presentation considers the effectiveness of Kanak engagement and economic development in line with opportunities with Vale Goro nickel mine operating in a complex social environment in NC employment opportunities for Kanak people living proximate to mines local community response to challenges which have occurred as a result of mining in the region including constraints to employment as well as community impacts from mining employment 5
6 Location of Mine considered 6
7 Methodology scoping study approach Literature review Interviewed ~ 30 people Vale Inco personnel Government agencies Kanak Community Members ~ 25 people including Mayor of Yatè a mix of men and women community members Rheebu Nuu representatives Technical assistance agencies, researchers, non- government agencies and relevant professionals 7
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11 Mining employment & Kanak economic aspirations Mining i industry related employment - relies on a skilled workforce which can meet operational goals with a sound commitment to the workplace and clients. Lucrative opportunities at different stages of operation eg construction higher numbers employed with range of skills 4500 people employed and up to 80% of WAP from Yatè communities Kanak respondents recognise both the need for economic participation and yet for some traditional activities are just as important 11
12 Constraints to longer term Kanak employment in Yatè region Legacies, conflict and divergent mindsets - A legacy of misinformation from government and industry relationships with Kanak communities suspicion and angst claims that the Goro mine was imposed on the community without adequate communication or consultation. it was a brutal project for the local people, they were not prepared, one day the mine was not there and the next it was there was no communication (personal communication 2010) the nickel boom brought wealth to the French, while the Kanak people have witnessed environmental degradation and largely missed out on the prosperity. Kanak communities continue to operate collectively whereby those not formally employed are supported by working family members. 12
13 Balancing employment and home life in Yatè region Difficulty adjusting to new socio-economic situations Kanak communities largely followed a subsistence economy. Formal employment has introduced new ways of working and incomes into households requiring personal, family and community adjustment and management. Key adjustments feeling inadequate starting work not understanding workplace culture and ethics - some people have never worked before a cash income has helped meet community cultural u obligations o and get better houses and commodities. but, many families do not spend their money wisely - more young people p drinking; a reported increase in alcohol related driving accidents children left at home alone while parents go to work for up to 12 hours a day related behavioural issues 13
14 Constraints to longer term mining related employment Imported Labour reportedly not a key concern in the construction phase, however may become an issue in the operational stage if Vale continue to use Filipinos when Kanak people can do the same jobs. Recruitment constraints such as language barriers, lack of specific skills or qualifications - anecdotally 70% children in Yatè do not finish schoo to work at the mine you need a degree, some have one some don t, they [the local Kanaks] are not trained enough which makes it difficult for the young people to access jobs. (personal communication 2010) 14
15 An integrated approach to Kanak employment The process to increase Kanak participation into longer term employment can be complex and challenging A more integrated and holistic approach, rather than one based on western post-colonial rhetoric will provide a solid platform to address Kanak economic participation i in the Yté Yaté region. All stakeholders will need to be committed to learn from each other while utilising culturally appropriate motivators and drivers to guide training and skills development processes. 15
16 Achieved by? Building partnerships - communities, mining operators and other stakeholders - enable Kanak people to be active participants in their economic development Capacity development to transition into a new socio-economic paradigm - can encompass: 1. Develop community vision. The minerals industry knows where its operations will be in several years and communities also need to develop this level of information. 2. Recruitment and retention practices that encourage longer term employment - build close relationship between mining operators and communities and nurture potential recruits. 3. Manage the transition to a waged household through wider community, support mechanisms. 16
17 Conclusion Through opportunities generated by the Goro project, Valé has the opportunity to support efforts that encourage Kanak employment and economic participation. i Understanding di the local l environment in which they operate and building a strong relationship with local communities are initial steps. Yet it is important to recognise that the processes required to encourage longer term Kanak economic participation can be complex and may mean thinking broader than habitual mindsets. 17
18 Thank You 18
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