Building Political & Social Capital – An Explorer’s ... · Building Political & Social Capital...
Transcript of Building Political & Social Capital – An Explorer’s ... · Building Political & Social Capital...
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Building Political & Social Capital – An Explorer’s Perspective
AAMIG Seminar – Celtic Club – 21 August 2013
Exploring Golden Frontiers
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Capital Structure ASX Code: MDIShares on Issue 125m
Unlisted Options 18.5m
Number of Shareholders ~700
Top 20 Shareholders ~63%
Directors ~21%
Institutions ~30%
Newmont ~10%
Cash (30/06/13) A$5.63m
Market Cap (at A$0.145) A$18m
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Corporate Strategy• Gold.
• West Africa.
• Minimum +1Moz ‘stand-alone’ resource base.
• Leverage off management’s 24 years local experience & contacts.
• Jurisdictions with acceptable risk profile.
• Jurisdictions with exposure to US$ gold price & costs.
• Domains with track record of successful project development.
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Projects• 3 West African countries
(combined area of ~5,400km2).
• Acquiring an 80% interest in the Samira Hill gold mine & mill, plus interests in 9 exploration permits, comprising the Sirba Project – Niger (2,577km2).
• 100% of Reo Project– Burkina Faso (1,166km2).
• 100% of Nuon River Project– Liberia (1,676km2).
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CSR Commitment
• Board and management commitment.
• Clear & quantifiable target (5%).
• Shareholder endorsement.
• Primary objective to build political & social capital.
• Dedicated Community Relations Manager.
• Recognise community engagement as first line of security.
• Respect governments and communities as our hosts.
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CSR Framework
• UN Millennium Development Goals.
• AusAID objectives under UNMDG.
Water & sanitation.
Child & maternal health.
Education.
Agriculture.
Capacity building in Mining.
• Assists in attracting co-funding.
• Internal policies & procedures.
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CSR Policy
• Distributed fairly across permit areas.
• Consistent with community objectives.
• Community must contribute 5% of project value.
• Must be community owned.
• Sustainable by community well beyond MDI tenure.
• Designed, implemented, managed, monitored & measured by recognisedNGO.
• Project/program must be accompanied by training and capacity building.
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CSR Fundamentals
• Employment and training most basic form of social development.
• Wherever possible procure goods & services locally.
• Secure major assets as a priority:
Camps.
Principal prospects/deposits.
Infrastructure/infrastructure corridors.
Progressively expand reach.
• Engage all stakeholders:
Central, provincial & local government.
Relevant government departments & authorities.
Traditional chiefs & individual communities.
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CSR Fundamentals (cont.)
• Communication essential:
Manage community expectations.
Routinely inform communities of plans & progress.
• Independent grievance mechanism:
Use NGO or suggestion box.
Check regularly and deal with issues quickly & transparently.
• Build political capital:
Invite politicians, public servants, donors & media to inauguration ceremonies.
Build community to advocate on your behalf.
• Ultimately become a valued community member.
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Niger & Burkina Faso• Relative Peace.• French colonial legacy.• Decentralised institutions.• Traditional structures.• Development NGOs.
Different Country Contexts
Liberia• Civil War.• No social capital.• Inherent distrust.• Centralised government.• Relative absence of traditional structures.• Humanitarian NGOs.
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Burkina Faso – Solar Water System
Project:• Construction of solar-powered reticulated water
system: 5 tap stands; 3 institutional connections, 1 household connection for 1000 water users.
• Training of local authorities, local water users’ association & system management committee.
Partners:• Eau Vive – project management, social
mobilisation, capacity building, monitoring.• Australian Government – DAP co-funding under
AAMIG initiative.
Budget: • US$66,000 (DAP: US$22,500).
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Burkina Faso – Supporting Market Gardeners
Project:• Construction of 4 lined wells and tanks,
4 demonstration drip irrigation sites & market stalls.
• Capacity Building of 50 producer cooperatives, umbrella organisation, local authorities.
Partners:• Eau Vive – project management, social
mobilisation, capacity building, monitoring.• Australian Government – DAP co-funding under
AAMIG initiative.• All Terrain Services – procure vegies locally.
Budget: • US$82,000 (DAP: US$22,500).
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Niger – New Primary School
Project:• Construction - fully furnished and equipped 3-
classroom school, latrine block, water pump.• Hygiene Awareness & Capacity Building of
school management committee, PTA & Mothers for Education Association.
Partners:• Eau Vive – project management, social
mobilisation, capacity building, monitoring.• Australian Government – DAP co-funding under
AAMIG initiative.• Eau Sans Frontières – co-funding.
Budget: • US$112,000 (DAP: US$14,000).
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Liberia – High School Annexe
Project:• Construction of 5-room Annexe for 11th & 12th
grade.• Social mobilisation with local community –
campfire night, workshops, focus groups, football tournament.
Partners:• ECREP – social mobilisation, capacity building,
monitoring.• BADRA – construction.• Australian Government – DAP co-funding under
AAMIG initiative.
Budget: • US$57,000 (DAP: $22,500).
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Building CSR as a Process
• Importance of the process.• A concrete commitment
generates goodwill.• Benefits of a local partner
NGO.• Partnerships to increase
scope & impact.• Laying groundwork for the
future.• Become a valued community
member.
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Thank you & questions Unit 2, 2 Richardson Street West PerthWestern Australia, 6005 Tel +61 (08) 9322 1430Fax +61 (08) 9322 1474www.middleisland.com.au