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PHASE 1 REPORT

SOCIOECONOMIC ASSESSMENT OF MINERA LOMA DE NÍQUEL, C.A.

THROUGH THE SOCIOECONOMIC ASSESSMENT TOOLBOX /

SEAT METHODOLOGY PHASE 1

December, 2004

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Consultant Team

Zaira Berti ÁvilaClemy Machado de Acedo

Yonaide Sánchez Ferrer

José Luis Fernández - Shaw Statistical Estimates

Beatriz Barrot Data Processing

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TABLE OF CONTENTS

FOREWORD ____________________________________________________________________ 5 1. OPERATION PROFILE __________________________________________________________ 8 2. COMMUNITY PROFILE AND CONTACT WITH STAKEHOLDERS TO IDENTIFY KEY ISSUES10

2.1. Stakeholders involved by Categories _________________________________________ 10 2.2. Segregating Communities: identifying groups in the community__________________ 11

Tiara Non-Urban Parish_______________________________________________________ 12 Altagracia de la Montaña Parish ________________________________________________ 16 Other Communities __________________________________________________________ 20

2.3. Overview of stakeholders survey and gap analysis _____________________________ 20 Tiara Community ____________________________________________________________ 21 Altagracia de la Montaña Community ____________________________________________ 24 Mldn Neighbors Who are Land Owners/ Tenants/ Special Users (Pisatario) ______________ 26 Shareholders _______________________________________________________________ 28 Union Associations __________________________________________________________ 31 Providers and Contractors_____________________________________________________ 35 Customers _________________________________________________________________ 37 Non-Governmental Organizations _______________________________________________ 39 Professional Associations _____________________________________________________ 43 Mass Media ________________________________________________________________ 46 Catholic Church and Religious Organizations ______________________________________ 48 Political Parties _____________________________________________________________ 50 Mayor’s Offices and Municipal Councils __________________________________________ 52 Ministry of the Environment and Renewable Natural Resources and Ministry of Energy and Mines _____________________________________________________________________ 55 National Assembly___________________________________________________________ 59 National Armed Force, Police Agencies And Firemen Station _________________________ 61 Ministry of Finances, Seniat, Cadivi _____________________________________________ 66 Ministry of Labor ____________________________________________________________ 68 Ministry of Health and Social Development________________________________________ 71 Other Governmental Agencies (Ivss, Ince, Conavi, Conacuid) _________________________ 73 Government and Legislative Council of the State of Aragua___________________________ 77 Government and Legislative Council of the State of Miranda _________________________ 81

2.4. Building the Basic Community Profile ________________________________________ 85 2.4.1. BUILDING THE TIARA COMMUNITY PROFILE ______________________________ 86

Geographical Context ______________________________________________________ 86

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The Origins ______________________________________________________________ 86 Demographic Aspects ______________________________________________________ 87 Economic Activity _________________________________________________________ 87 Health Services ___________________________________________________________ 87 Education Services ________________________________________________________ 88 Other Services____________________________________________________________ 88 Main Community Needs ____________________________________________________ 89 MLdN contribution to Community Development __________________________________ 91 The Collective Imaginary____________________________________________________ 96

2.4.2. BUILDING THE ALTAGRACIA DE LA MONTAÑA COMMUNITY PROFILE _________ 97 Geographical Context ______________________________________________________ 97 The Origins ______________________________________________________________ 98 Demographic Aspects ______________________________________________________ 99 Economic Activity ________________________________________________________ 100 Health Services __________________________________________________________ 101 Education Services _______________________________________________________ 101 Other Services___________________________________________________________ 102 Main Community Needs ___________________________________________________ 102 MLdN contribution to Community Development _________________________________ 105 The Collective Imaginary___________________________________________________ 109

2.4.3. CHARACTERIZATION OF MINERA LOMA DE NÍQUEL C.A. AREA OF INFLUENCE110 2.5. Overview of Potential Impacts and Possible Causes ___________________________ 114

2.5.1. Tiara Community Perspective ____________________________________________ 114 Tiara Community Proposals for the Company __________________________________ 118

2.5.2. Altagracia de la Montaña Community Perspective ____________________________ 120 Altagracia de la Montaña Community Proposals for the Company___________________ 123

2.5.3. Workers Perspective ___________________________________________________ 125 2.5.4. Workers’ Relatives Perspective___________________________________________ 128 2.5.5. Management Perspective _______________________________________________ 130 2.5.6. Other Stakeholders Perspective __________________________________________ 132

Relationship with the Company______________________________________________ 132 Concern for Company Operations ___________________________________________ 136

3. SUMMARY OF ISSUES MENTIONED BY STAKEHOLDERS AND NEEDS IDENTIFICATION140 AS CONCLUSION ______________________________________________________________ 143

With regard to Tiara Community _________________________________________________ 143 With regard to Altagracia de la Montaña community __________________________________ 143 With regard to the Area of Influence ______________________________________________ 144 With regard to Workers ________________________________________________________ 145 With regard to Workers’ Relatives ________________________________________________ 145 With regard to Other Stakeholders _______________________________________________ 146 Comparing Issues raised by Stakeholders _________________________________________ 147

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FOREWORD The Mining company referred to as Minera Loma de Níquel C.A., MLdN, started operations in Venezuela in February 2001. For the Anglo American Group, and for MLdN as part of the corporation, to address socioeconomic impacts from mining and industrial activities on those sites that could be affected by their operations is a critical issue, both from a public policies perspective and the sustainable development and risk management ones.

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In fact, MLdN seeks balancing the use and promotion of four types of capital: the natural capital represented by the nickel usage as natural resource; the built capital including infrastructure and capital, financial, and business assets; the human capital related to nutrition, health, and education levels shown by the people and the social capital related to the degree of confidence, civic behavior norms, and the extent up to which associating levels are encouraged in a given society.

As an example of the importance given by Anglo American to this issue, the Corporation has carried out a significant investment in designing and using the Socio Economic Assessment Toolbox – SEAT Methodology. This methodology aligned with its Good Corporate Neighbor principles, and as input to enrich Community Linkage Plans, seeks to “better equip the mechanism to understand impacts dynamics and, upon measuring them, allow their handling in a more creative way as a manner to contribute to the economic, social and educational welfare of communities related to our operations”.1

Objectives for this methodology are the following:2 1. Identify key socioeconomic impacts and issues that must be handled.

2. Evaluate existent initiatives, provide feedback about its success and relevance, and identify areas for

improvement.

3. Be a useful resource to develop a Community Linkage Plan.

4. Provide the analytic structure to help operations to assess their overall sustainability, particularly when balancing natural resources extraction activities and the human and social efforts involved.

5. Ensure that “best practices” are captured and shared across Anglo American.

6. Provide a planning tool to handle social and economic impacts in any facility or operations. 7. Gather and assemble data for corporate social reports, as well as for developing relevant indicators for

local conditions.3 This report corresponds to the first methodology phase, referred to as “Profile of Anglo American Operation and Related Communities and Key Issues Identification”, and includes works carried out when developing Tools A1, B1 (Tables B1.1., B.1.2., B.1.3), B2 (Table B.2.1.), B3 (Table B.3.1) and B6 (Table B6.1)

1 ANGLO AMERICAN: S.E.A.T. Socio Economic Assessment Toolbox. Mimeo. Page 1. 2 Idem. Page 3. 3 Idem. Page 3.

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To develop this work, the firm Gerencia Social Consultores Asociados (G-Social) built instruments of six types in order to gather relevant information for the inquiry: a generic questionnaire focused on learning overall opinions about the operation and its impact had by some stakeholders involved; a questionnaire emphasizing health-related aspects addressed to area authorities; a questionnaire emphasizing safety-related aspects and intended to learn area authorities’ opinions on impacts from the operation; a questionnaire addressed to community authorities, local leaders, and significant stakeholders address to gather community profile data; a questionnaire addressed to the MLdN management, and three focus groups guidelines for community groups, MLdN employees and MLdN employees’ relatives. The inquiry comprised 139 people ranked as recommended in the SEAT methodology: affected groups, interested groups and authorities, with their corresponding internal subdivisions. In addition, some official sources were consulted, such as the XIII Population and Housing General Census of 2001 carried out by the Statistics National Institute (INE) – from which our own estimates and calculus were derived – on-line materials from official agencies, figures and data furnished by local authorities and MLdN documents. G-Social would like to state its acknowledgment to Minera Loma de Níquel C.A. for having entrusted us this work; to Lic. Ricardo Pérez, in his character as institutional counterpart for its devotion, constant willingness and efficiency, as well as to Lic. Liliana Bruno, for her ongoing cooperation; to Ing. Juan Carlos Cuenca for his contribution within the first inquiry design phases, to MLdN management, employees and employees’ relatives for answering the instruments, taking part in focus groups and for their trust when furnishing quite valuable information; to all authorities, officers, providers, contractors and third parties in general who took part in the inquiry at a national, regional, and local levels and particularly to Tiara and Altagracia de la Montaña communities, represented by their associations, authorities, organized groups and neighbors for the receptivity, warmth and opening granted to us during the survey and for having stated their demands and aspirations.

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1. OPERATION PROFILE 1. Company Details Anglo American Division: Anglo Base Metals Company Name: Minera Loma de Níquel, C.A. Company Location: Tiara, State of Aragua, Venezuela Author’s Name and Position: Ricardo Pérez, Human Resources Management Contact Details: Tel.: +58-244-4000460

Email: [email protected] Local facilities related to Anglo Carbones del Guasare (Anglo Coal) 2. Company Operations Fundamentals Date on which the operation began: February 2001 Foreseen closing date: December 2031

Product: Production (Ton/year) What does this operation yield? Nickel 17,825

Return from Operations (US $/year): 135,901,691 Number of employees working for this operation (equivalent to full time):

548

Total salaries paid (US $/year) 12,996,178 Total retirement pensions paid (under a public or private scheme, US $/year):

0

Number of contractors’ employees (equivalent to full time):

Main contractors: 109 Other contractors: 382

Number of community people dependent from Anglo for their livelihood (financial or supporting means people does need to earn a living): ‐ Tiara (Santos Michelena Municipality) ‐ Altagracia de la Montaña (Guaicaipuro Municipality) (Computed as total number of employees (Anglo plus contractors) multiplied by family average, multiplied by family income ratio average derived from Anglo): 327 x 4.02 x 90 = 1,183 Social investment budget for the community (US $/year): Community issues: 138,887 Special advantages: 71,791 3. How do you think company operations will unwind in the future? In 5 years In 10 years In 20 years Production (tons) 17,911/year 17,645/year 16,118/year Employment– Anglo employees 520 Employment– employees under contract 135 4. Which main consumables are bought to the local community?

Item Approximate value (US$/year)

From where do these purchased items come from? (Company and place)

I. Building Materials 500,000 Materiales Rodríguez (Las Tejerías) II. Spare parts 30,000 Repuestos Atlántico (Las Tejerías) III. Mechanized parts 100,000 Gearca (Los Teques)

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5. Which workers’ percentage is recruited from local communities and the country? Total

Nº Local

% Regional(*)% National % Expatriates %

Senior Management /professionals/ scientists 69 7 12 72 9 Middle managers /traders, administrators/ technicians /qualified manual workers 147 13 16 71 0

Administrative subordinate employees, non-qualified manual workers 356 24 49 27 0

Contractors 467 70 22 8 0 (*) States of Aragua and Miranda 6. Please, provide details about the Capital Expenditures Plan, including values (US $/year): 2003: 10,293,000 2004: 10,315,000 2005: 3,839,000 2006: 2,800,000 2007: 2,091,000 2008: 4,014,000

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2. COMMUNITY PROFILE AND CONTACT WITH STAKEHOLDERS TO

IDENTIFY KEY ISSUES

2.1. Stakeholders involved by Categories In accordance with the SEAT methodology, stakeholders’ selection was carried out as per foreseen categories: affected parties, interested parties and authorities, and the corresponding subcategories. Total number of stakeholders invited to take part in the inquiry was 218, of which 139 did actually take part, representing a 63.7%. Various techniques were used to carry out the inquiry process, such as surveys, personal interviews, and focus groups. Annex 1 shows the technique - stakeholder relationship and Annex 2 shows instruments used. Details of stakeholders involved with the inquiry are set forth hereon:

STAKEHOLDERS INVOLVED WITH THE INQUIRY BY CATEGORY Stakeholders Category Represented by/Nº

Affected Parties

La Esperanza ambulatory health center staff / 1 Tiara ambulatory health center staff / 1 Tiara school unit staff / 1 Farmers/ 2 Cattle raisers/ 2 Neighbors Associations: Capachal / 3, Tiarita / 1 Neighbors / Sectors: Rodeíto / 1, Las Dolores de Aragua / 2, La Mata / 1, Casco Central / 1 Neighbors from other sectors / 3 Parish promotion commissioner / 1 Parish Board President / 1 Parish Board (Environmental Commission) / 3

Tiara Community

Trader / 1 Parish Board/ 3 Neighbors/Sectors: El Palito / 3, Altagracia /2, El Amparo / 1, La Rosca / 1, Santa Isabel / 2, La Cortada /1, Los Amarillos /1, Los Bagres / 2, Santa Isabel/ 2 Neighbors Associations: San Daniel / 1, El Palito /2, La Guía / 1, Los Amarillos /1 Housing Civil Associations / Sectors: Santa Isabel /1, Las Dolores / 1 Civil registry staff / 1 Venezuela, Juventud y Futuro Foundation / 1 Evaristo González Palma school staff / 2 Trader / 1 Altagracia ambulatory health center staff / 2 Guaicaipuro Mayor’s Office/1 Altagracia de la Montaña Prefecture /2

Altagracia de la Montaña Community

Demarcation Office Staff /1 Employees MLdN staff and contractors staff / 24

Employees’ relatives Relatives / 7

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Interested Parties

MLdN Management Managers/ 3 Shareholders Anglo American plc /2

Nickel Workers Union (SINTRANIQUEL) /1 Labor Union Associations Construction Works Union (SUTIC) /1 Suppliers Providers and contractors/ 11

Acción Campesina/1 Non-Governmental Organizations Dividendo Voluntario para la Comunidad /1

Industrial Chamber of the State of Aragua /1 Professional Associations Venezuelan Mining and Metallurgy Industry Association (AIMM) /1 Radio Broadcasting/3 Mass Media Printed media/ 3

Authorities

Vice- Ministry of Mines /2 Direction of Mining Protection/ 1 Management Control Division / 3 Ministry of Energy and Mines

Regional Technical Inspectorate - Aragua / 3 General Direction of Education

- Miranda Direction to Support Educational Subregions / 1

Councilman for Acción Democrática (AD) political party /1 Santos Michelena Municipal Council Councilman for Movimiento Quinta República (MVR) political party/1

Guaicaipuro Prefect /1 Tácata Prefect /1 Prefectures Santos Michelena Prefect/ 1 Corposalud Aragua /1 Rafael Rangel Camp/1 Corposalud Miranda /1 Health Organizations

Sanitary District Nº1of the Ministry of Health (MSDS)- (Miranda) /1 Training Center INCE- Coordination of La Victoria Metal-Mining Center/1 Firemen Station Miranda Firemen– IACBEM /1

2.2. Segregating Communities: identifying groups in the community To identify representative and the various groups present in the community and gather the broader range of community needs, aspirations and concerns as accurately as possible, the SEAT methodology provides guidelines to systematize these groups based on significant variables, as shown in the following table:

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TABLE B.1.2 SEGREGATING COMMUNITIES: IDENTIFYING GROUPS IN THE COMMUNITY

TIARA NON-URBAN PARISH

Gender Age Stakeholders Category Comments M F < 18 18-

35 36-54 55>

Access to decision making Parish Board Elected by the community 2 1 3 Prefect Appointed by the competent authority 1 1 Parish Promotion Commissioner Community representative before the Santos Michelena Mayor’s Office 1 1 1

Health Center Physician Reports to the Municipal Health Direction 1 1 School Center Directors Report to the Regional Educational Direction 2 1 1

Councilmen Due to its nearness, this community can be actually visited by councilmen on a frequent basis 5 2 x x

Company programs beneficiaries La Esperanza Ambulatory Health Center Users

MLdN built the Public Clinic, pays the nurse’s salary and bears minor maintenance expenses of the Public Clinic

Tiara Ambulatory Health Center Users MLdN pays the physician’s salary and carries out the minor civil maintenance Approximately renders 4,800 health care

activities per annum - the new road built has significantly improved access to the parish, because it is shorter and road conditions are better than those had by the still existent old road. - The road was built by MLdN and – voluntarily- is also carrying out its maintenance from km. 54 of the central regional highway up to MLdN. In addition, as a duty set by mining titles, it carries out maintenance from MLdN up to La Mata and Tiara

Overall Community

Due to an obligation set by the environmental impact survey, the community has been benefited by the following MLdN initiatives: a) a water well construction, b) remodeling of Rafael Rangel Epidemiological Camp and its staff salaries payment, c) reforestation campaigns throughout concession areas.

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35 36-54 55>

d) As part of the special advantages, MLdN built an electrical substation which was donated to Cadafe, allowing ELECENTRO to use such infrastructure to improve power supply service for the community.

On public security matters, the community benefits from the agreement held by MLdN with the Aragua Police intended to keep La Mata police module in operation

MLdN does eventually cooperate with some punctual help requested by the community such as donating food baskets in Christmas, repair sport fields, remodeling the parish board premises, donating tires for the ambulance, donating medicines for the pharmacy, etc.

Users of the qualified manual labor certification program

Program carried out within the agreement with INCE (National Institute for Educational Cooperation)

Users of the environmental education program

Program carried out within the agreement with MARN (Ministry of Environment) under which three courses will be developed: “Environmental Impact” (completed), “Rural Fire Prevention Brigades Training” and “Voluntary Environmental Watch”/ VIVA (the 2 last courses will be held in 2005)

Users of the sexual education and the HIV/AIDS program

Program carried out within the agreement with the NGO Acción Solidaria

Representatives

Parish Board First instance for community election and community representation

Neighbors Associations

The community has the following neighbor associations: Las Dolores de Aragua, Tiarita, El Castaño, La Esperanza, Los Bagres de Aragua, Cagua de Las Mercedes, El Cascarronal, Agua Amarilla, Tiara, 4 de Febrero, La Puerta, La Horqueta and Boca de Agua

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35 36-54 55>

Employment Status Direct MLdN employees

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MLdN contractors’ employees

MLdN has also an agreement with the Mayor’s Office, the parish board, the union associations and the contractor companies, as to give priority to local people when employing manual labor, particularly the non-qualified manual labor.

Access to the land Owners

Tenants

People with no access to lands

There are no statistics on this topics; however, we learned that most lands are municipal lands or under the property of the National Lands Institute, and that most people is in process of updating their land holding situation

Access to infrastructure and services Power supply service Service coverage: Tiara (Capital) 84.97 % La Esperanza 100% Las Dolores 84.29% The rest of Tiara parish 87.82 %

Water supply service Access to this service is spread by supply mode used: piping, tank, public basin, well with piping, spring of water, or other. The higher coverage by mode in each sector is as follows:

Tiara (Capital) Well with piping: 86.6% La Esperanza Spring of water : 94.5% Las Dolores Other modes: 94.2% The rest of Tiara parish Spring of water: 54.4 and Piping: 26.9%

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35 36-54 55>

Home garbage collection service Service coverage:

Tiara (Capital) 69.2% La Esperanza 11.9% Las Dolores 2.86% The rest of Tiara parish 0 Telephone Service Service coverage: Tiara (Capital) 0 La Esperanza 1% Las Dolores 0 The rest of Tiara parish 1.9% Educational Level (enrolled within 2003-2004 at the school center in the capital city) Pre-school 70 x Basic School 300 x Diversified High School 80 x Location Rural The XIII Population and Housing General Census from 2001 defines Tiara as a non-

urban parish

Home Structure (municipality figures based on 8,731 homes) Sole-individual homes 9,8% Nuclear families 57,6% Extended families 29,4% Compound homes 3,1% Income levels People’s income There is no income-related data at a parish level, or any figure that allows making

reliable statistical estimates on such topic.

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ALTAGRACIA DE LA MONTAÑA PARISH

Gender Age Stakeholders Category Comments M F < 18 18-35 36-54 55> Access to decision making Parish Board Elected by the community 3 1 2 Prefect Appointed by the competent authority 1 1 Public Clinic Physician Reports to the Municipal Health Direction 1 1 School Center Directors Report to the Regional Educational Direction 1 1

Councilmen (Altagracia, Tácata and Paracotos parishes)

Because of their distance from the Municipality capital city (Los Teques) and their small size when compared to other communities in the same municipality, they have no frequent contact with municipal or state authorities.

1

1

Company programs beneficiaries

Children in Los Bagres School

Due to an obligation derived from the environmental impact survey, MLdN built Los Bagres rural school and pays all teachers’ salaries and benefits, and bears all maintenance and operation expenses. 71 students are enrolled in this school, spread as follows: 16 in preschool, 11 in 1st grade, 10 in 2nd grade, 7 in 3rd grade, 8 in 4th grade, 8 in 5th grade and 11 in 6th grade.

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Overall Community

- the new road built has significantly improved access to the parish, because it is shorter and road conditions are better than those had by the still existent old road. - The road was built by MLdN and – voluntarily- is also carrying out its maintenance from km. 54 of the central regional highway up to MLdN. In addition, as a duty set by mining titles, it carries out maintenance from MLdN up to La Mata and Tiara.

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Gender Age Stakeholders Category Comments M F < 18 18-35 36-54 55> Due to an obligation set by the environmental impact survey, the community has been benefited by the following MLdN initiatives: a) remodeling of Rafael Range Epidemiological Camp and its staff salaries payment, b) reforestation campaigns throughout concession areas, d) construction and donation of Loma de Níquel electrical substation allowing Elecentro to use such infrastructure to improve power supply service for the community.

As part of the special advantages, MLdN built an electrical substation which was donated to Cadafe, allowing ELECENTRO to use such infrastructure to improve power supply service for the community.

MLdN does eventually cooperate with some punctual help requested by the community such as donating food baskets in Christmas, donating tires for the ambulance, donation of a building for multiple uses, support to organize a cooperative to manufacture uniforms, etc.

Users of the qualified manual labor certification program

Program carried out within the agreement with INCE (National Institute for Educational Cooperation)

Users of the environmental education program

Program carried out within the agreement with MARN (Ministry of Environment) under which three courses will be developed: “Environmental Impact” (completed), “Rural Fire Prevention Brigades Training” and “Voluntary Environmental Watch”/ VIVA (the 2 last courses will be held in 2005)

Users of the sexual education and the HIV/AIDS program

Program carried out within the agreement with the NGO Acción Solidaria

Representatives

Parish Board First instance for community election and community representation

Neighbors Associations The community has the following neighbors associations: San Daniel, Los Bagres de Miranda, Las Dolores de Miranda, Chaguaramas, Los Amarillos, El Cascajo, El Pegón and Las

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Gender Age Stakeholders Category Comments M F < 18 18-35 36-54 55> Casitas.

Employment Status Direct MLdN employees

6

MLdN contractors employees

MLdN has an agreement with the Mayor’s Office, the parish board, the union associations and the contractor companies, as to give priority to local people when employing manual labor, particularly the non-qualified manual labor.

Access to Land Owners

Tenants

People having no access to lands

There are no statistics on this topics; however, we learned that most lands are municipal lands or under the property of the National Lands Institute, and that most people is in process of updating their land holding situation

Access to infrastructure and services Power supply service Service coverage:

Altagracia de la Montaña (Capital) 98.2% The rest of Altagracia parish 87% Water supply service

Access to this service is spread by supply mode used: piping, tank, public basin, well with piping, spring of water, or other. The higher coverage by mode in each sector is as follows:

Altagracia de la Montaña (Capital) Piping: 86.6% The rest of Altagracia parish Piping: 56.5% Home garbage collection service Service coverage: Altagracia de la Montaña (Capital) 18.8% The rest of Altagracia parish 0 Telephone service Service coverage: Altagracia de la Montaña (Capital) 11.9% The rest of Altagracia parish 8.5%

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Gender Age Stakeholders Category Comments M F < 18 18-35 36-54 55> Educational Level (enrolled within 2003-2004 at the school center in the capital city) Preschool 61 x Basic School 240 x Diversified High School 70 x Location Rural - urban From a total of 3,629 inhabitants, 2,857 live in the capital city and

772 spread within the parish

Home structure (municipality figures based on 53,990 homes) Sole-individual homes 7,7% Nuclear families 58,6% Extended families 30,9% Compound homes 2,8% Income levels

People’s income There is no income-related data at a parish level, or any figure that allows making reliable statistical estimates on such topic.

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OTHER COMMUNITIES LAS TEJERIAS AND LOS TEQUES

• MLdN has not been very much in contact with these communities. The highest impact is related to workers employment, both directly and through contractors. Likewise, works contracts and materials, equipments and services purchases to contracting companies and providers in these communities have brought a positive impact from MLdN operation.

• MLdN has foreseen to offer sexual education and HIV/AIDS workshops to Las Tejerías students.

• As they are capital cities of municipalities (and the state in the case of Los Teques) we think that the

population does have access to decision making processes and that their representative channels are sufficiently developed. The company has not held any formal or permanent contact with these communities neighbors associations, not even with those where MLdN employees or MLdN contractors’ employees are currently living. It has a relatively frequent contact with some councilmen and municipal authorities from Las Tejerías and to a lesser extent with those from Los Teques.

TÁCATA

• MLdN has not been very much in contact with this community. Yet, as it is ranked as a parish, we think that it shows the same features regarding decision making processes and their representative channels as Altagracia de la Montaña but, as it is larger, its specific weight in the municipality and the state should be higher than the latter.

• The higher contribution to this community is the construction of two water dams in Loma de Níquel and Santa Helena. These dams regulate water flows and ensure an ongoing water supply throughout the year, thus preventing the significant variations they had to endure before, lacking from water in the summer and having excess and turbid water in the rainy season. Indirectly, the reforestation campaign does also benefit this community as it helps to keep the Mesia River basin and source, which is the main affluent of Boca de Cagua River that goes through this community. Paradoxically, this community has raised frequent claims for an alleged river pollution and poor dam water operation. No MLdN employees are from this community because, although it is not far away, transportation and commute eservices are not adequate. However, this has not been a conflictive issue as it seems people from this community never expected it.

2.3. Overview of stakeholders survey and gap analysis From the information gathered in tables above, we could systematize the gap analysis in Table B1.3. This table shows an overview of all stakeholders involved with this operation, their features, key issues reported by them and indications of whether operations has consulted them or communicated with them in the past.

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TABLE B1.3: OVERVIEW OF STAKEHOLDERS SURVEY AND GAP ANALYSIS

TIARA COMMUNITY

STAKEHOLDERS FEATURES

Stakeholders

Category

Stakeholder and name of its

representative

Location/ Base

Local / State/ National/

International Focus

Scope/Extent of Influence

Who/ Nº of people represented

Affected Groups

Tiara Community: Parish Board, Felipe Nieves Prefect, Juan José Meléndez Neighbors Associations

Santos Michelena Municipality. State of Aragua

Local

‐ During the construction phase related to the

infrastructure: community people were engaged, roads were damaged, and the bubonic plague threatened to reappear

‐ At the beginning of the project, some claims

were raised with regard to the scope and fulfillment of special mining title advantages. This issue has been sufficiently clarified from a legal standpoint, although there is still a general feeling that such advantages should be greater and better, and that they should be reviewed. All these claims brought the community to block access to MLdN on several times.

Community/ local

2,449 parish inhabitants

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COMMUNICATIONS HISTORY

Are stakeholders

being consulted?

YES/NO

Key issues on contacts and details Communications frequency Recent

concerns How the issue has been addressed Stakeholder Answer

Tiara Community: YES

‐ Initially, most frequent

claims related to community people employment, road damages, and the bubonic plague threat

‐ Conflicts regarding

community workers employment were basically caused by political reasons, due to existent disagreements between the construction workers union and community representatives.

- Initially, communications were sporadic

and punctual, more reactive than anything else, and regarding community requests or claims; since year 2000 communications have been systematic

- Weekly meetings between the Parish

Board President and the MLdN Community Relations Head, who in his/her turn has an on-site delegate almost everyday to supervise compliance with agreement regarding local manual labor employment.

- Open forums in the community every

two months, approximately, with the presence of all Parish Board members, the Prefect and Neighbors Associations representatives. Likewise, municipal and regional authorities such as the Mayor’s Office, Municipal Council, Corposalud, MARN Aragua, Aragua Police and MEM Aragua are invited to attend these forums.

Claims related to air and water pollution and roadways issues.

- Issues regarding local workers

employment have almost disappeared since the mayor’s office, the parish board, union associations and contractors entered into an agreement intended to give priority to candidates proposed by the Parish Board, mainly for the non-qualified labor force.

- An agreement was reached so that

MLdN would repair those sections showing more damages than at the beginning of the project. The remaining works would be taken care of by the regional government.

- MLdN attitude has been to talk with

community representatives and their relevant authorities. With regard to claims related to air and water pollution, MLdN contacted universities and scientific societies to fund research focused on obtaining information on the actual nature of the problem and potential preventative and corrective measures to be taken.

- The Parish Board appointed

an environmental commission which with the support from some community members, an ecologist society from La Victoria and a lawyer filed a claim before the National Assembly; the relevant investigation is currently underway.

- They recurred to the

regional media, and that made the General Attorney’s Office of the Republic to initiate another investigation, which is also currently underway.

- Contacts sought with

universities and scientific societies have not been successful

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Are

stakeholders being

consulted? YES/NO

Key issues on contacts and details Communications frequency Recent

concerns How the issue has been addressed Stakeholder Answer

- Since 2002, MLdN

issues a quarterly newsletter called "Mining Vicinity" that is distributed to all MLdN workers and MLdN contractor’s workers, through the Parish Board and the Tiara High School.

- MLdN Public Affairs committee attends all meetings including representatives from such areas as HR, Community Relations, HSE, and Legal Affairs. Meetings are based on a previous agenda and records of addressed issues are also drawn up.

- Due to the high diffusion through the regional media, and denounces brought to the National Assembly and the General Attorney’s Office of the Republic, MLdN hired attorneys specialized on environmental matters, and went to the RRII Secretariat of the State of Aragua and several congressmen for the State of Aragua in order to inform them about our version of the facts. Several ads were published in the regional printed media, and various spaces were scheduled in regional radio stations, to inform about the MLdN certification on quality, safety, health, and environmental protection matters. Mass media representatives were invited to visit MLdN premises.

- Up to this date, no media representative has visited MLdN premises.

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ALTAGRACIA DE LA MONTAÑA COMMUNITY


Stakeholders Category

Stakeholder and name of its representative

Location/ Base


International Focus

Scope/Extent of

Influence


Affected Groups Altagracia de la Montaña Community Guaicaipuro Municipality / State of Miranda

Local

Local employment, roadway system, fulfillment of special mining titles advantages, improvement of social infrastructures

Community/ local

3,629 parish inhabitants


Are stakeholders

being consulted?

YES/NO

Key issues on contacts and details

Communications frequency Recent concerns How the issue has been addressed Stakeholder

Answer

Altagracia de la Montaña Community: YES

During the construction phase related to the infrastructure, most frequent claims made were about community workers employment and roadway damages due to the heavy traffic going through the old road.

Initially, communications were sporadic and punctual; since year 2000 communications have been systematic /weekly meetings between the Parish Board and MLdN

Claims related to community workers employment, roadways damage, and water and power supply

Issues regarding local workers employment were solved when the mayor’s office, the parish board, union associations and contractors entered into an agreement intended to give priority to candidates proposed by the Board. With regard to roadways, MLdN offered to

Claims came to an end.

25


Are

stakeholders being

consulted? YES/NO


Communications frequency Recent concerns How the issue has been addressed Stakeholder

Answer

Other claims: scope and fulfillment of special mining titles advantages, provision and enhancement of schools, high schools and ambulatory health centers premises, roadway for La Mata – Altagracia section, construction of an “Australian” type water tank in concession lands, usage of the MLdN electrical substation.

Community Relations. Bimonthly forums with the community. Since that year, MLdN issues a newsletter called “Vecindad Minera” (Mining Vicinity), on a quarterly basis and distributes it to workers and community members.

repair those sections showing more damages than at the beginning of the project. The remaining works would be taken care of by the regional government. The water tank construction was agreed upon. The issue regarding special mining title advantages has been clarified from a legal standpoint, although there is still a general feeling that such advantages should be greater and better. We have always talked with community representatives and their relevant authorities, depending on the nature of the claim.

26

MLdN NEIGHBORS WHO ARE LAND OWNERS/ TENANTS/ SPECIAL USERS (PISATARIO4)




Location/ Base


International

Focus



Affected Groups MLdN neighbors who are land

owners/tenants/users

Tiara and Altagracia Parishes

Local - MLdN purchased lands from some of them in order to build the entire infrastructure.


Are

stakeholders being

consulted? YES/NO

Key issues on contacts and details Communications frequency Recent concerns How the issue has been

addressed Stakeholder

Answer

MLdN neighbors who are land

owners/tenants/ users: YES

- Some land owners cultivate their farm, or raise cattle in it; others use it to spend the weekends and leisure time, and other lease it. There are also land

Frequent within the first project development phases

The new land laws could encourage invasions to non-

- In order to prevent invasions,

plans are to fence and/or signal

4 TN: Pisatario – individual that develops agricultural or cattle raising activities in other people’s lands and pays in kind for such usage (Source: The Venezuelan National Agrarian Institute (IAN)

27


Are

stakeholders being

consulted? YES/NO

Key issues on contacts and details Communications frequency Recent concerns How the issue has been


Answer

users who were there before MLdN arrived to the site. - Occasionally, there have been discussions between some of them for land ownership and usage issues. - Within the project construction phase, issues arose with some of them with regard to the new ways to access their land lots after the new roadway was built from km 54 of the Central Regional Highway (CRH) - In the past, some claims were raised with regard to cattle killed by vehicles in the new roadway and loss of flowers and vegetables due to an assumed air and water pollution coming from MLdN.

exploitable lands within the mining concession.

in detail the concession borders and engage a rural security service allowing early detection of any invasion.

- On this matter, we have the support from the community and current land owners/tenants/users.

- As this is a pacific group, on some occasions we have let them to cultivate or use lands within the concession for their own benefit, as a strategy to stop the arrival of new land users or invaders whose conduct or intentions would be unknown.

- There have been no claims regarding land purchases No new land users or marginal invaders have arrived (there was a first attempt last year, which was controlled with the help of governmental agencies - There have been no claims regarding access to land lots

28

SHAREHOLDERS


Stakeholders

Category


Location/ Base

Local / State / National/

International

Focus



Anglo American plc. Brian Beamish London International

- Majority Shareholder (90% shareholding)

- Issues that are more usually addressed include: financial, technical/operational, health/safety/environment, human resources, community relations and the country’s political environment

International/ commercial, technical

Federal Group. Jorge Daal Caracas National - Minority Shareholder

- Issues addressed: political environment

National/ political

World Bank. David Varela Caracas International

- Minority Shareholder (is not part of the Board of Directors)

- Issues addressed: political environment (usually is also interested in environmental aspects and community relations issues)

National/ political

Interested Groups / Shareholders to handle impacts

Jordex

- Minority Shareholder (is not part of the Board of Directors)

- Has never shown any interest for any issue other than potential dividends he might be receiving.

29


Are stakeholders

being consulted?

YES/NO

Key issues on contacts and details Communications regularity Recent concerns

How the issue has been

addressed Stakeholder Answer

Anglo American plc: YES

Because of its status as top multinational corporation of the mining sector, this shareholder is being constantly watched by investors, business analysts and NGO’s as for how it meets promises in those areas and for its worldwide operations not to be damaging communities. The environmental issue is a particularly sensitive one. Any adverse news that could damage its public image can negatively affect its shares quote in stock exchange markets.

On a daily basis

The current country’s political situation, highly marked by ideologies and unfavorable for private companies

The Anglo president for South America visited Venezuela and held meetings with senior executives, entrepreneurial associations, and major political characters in order to feel the country’s political environment.

- Within the last three years it has promoted issues regarding corporate image, social responsibility, sustainable development, good corporate governance, occupational safety and health, environmental protection, human rights, and fight against AIDS, among other.

Federal Group; YES

- It has been quite successfully contacted within this year since denounces on environmental were raised, - Occasionally, it has been willing to render services to MLdN through one of its companies (currently, Jantessa, a Federal Group company is rendering services in the project engineering area).

Scarce. It has become more frequent because of environmental pollution denounces and the National Assembly and the General Attorney’s Office investigation

It has evidenced having good relationships that help in political lobby activities.

30


Are

stakeholders being

consulted? YES/NO

Key issues on contacts and details Communications regularity Recent concerns

How the issue has been


World Bank: YES

In the double role played by the World Bank (as shareholder and lender) until recently, the lender role was the most significant one, as it was more involved in meeting funding agreements that in anything else. Since the currency exchange control was implemented, MLdN tried to get the WB help to make political lobby before the government. Currently, the WB is just a shareholder, since the debt was absorbed by Anglo American.

Scarce It’s activities in favor of MLdN were less determined than expected

Jordex: NO - plays no role at all

Scarce

31

UNION ASSOCIATIONS


Stakeholders

Category


Location/ Base


International

Focus



SINTRANIQUEL. Gerardo Rosales, Pedro Cicerelli MLdN Local

Union association gathering all MLdN workers – It is not affiliated to any union federation, and has kept its independence. Claims relate to supervision and industrial health issues

MLdN 489

Construction Works Union Association (supporting the CTV). Carlos Pinto

Affiliates construction and assembling companies working for MLdN. They watch for the collective construction contract to be complied with

Construction Works Union Association (supporting the UNT).

Gathers construction and mounting companies working for MLdN. They watch for the collective construction contract to be complied with

Workers National Union (UNT) National They try to affiliate MLdN contractors

Interested Groups / These have knowledge about impacts

FETRAMIRANDA Los Teques,

State of Miranda

State It is concerned by the contractors’ workers situation

Note: MLdN policy is to allow its workers to become affiliates of any union association and vote for those candidates they prefer. Two union elections have been held, and the

current board of directors was elected last October.

32


Are stakeholders being consulted?

YES/NO Key issues on contacts and

details Communications

frecuency Recent concerns How the issue has been addressed Stakeholder Answer

SINTRANIQUEL: YES

- They have raised claims regarding supervisory styles and industrial safety and health - Relationships can be described as positive, and there is a good communication with it

Almost daily

Usually their releases are anonymous and do personally attack some executives or department heads. This is contradictory with regard to the respect that the union association directors require for their affiliates

The MLdN management has told union directors that it is in disagreement with the way in which the union writes its releases

There have been no strikes or conflictive petitions; just once workers have stopped operations for no reason at all; and twice, the union has called employees not to work overtime, as a way to make pressure

Construction Works Union Association supporting the CTV: yes

Issues related to due compliance of economic clauses of the construction collective contract Union practices in the construction industry depends on politics and is quite conflictive, therefore, preventative actions must be taken with contractor companies, which tend to fail to comply with the construction collective contract.

Its competitors are the Tiara and Altagracia Parish Boards who demand that all workers’ recruiting activities must be channeled

Almost daily

-They are constantly trying to get into other MLdN contractor companies from sectors other than the construction and assembly one. This has been prevented up to this date, although it could be that in the future a collective contract would be reached with these other workers that currently have no contract.

Relationships are focused on ensuring labor peace with contractors. During the construction works phase, there were many contractors, yet, currently there are very few contractors (less than 200 workers which will be reduced in the short term, so no significant future is foreseen for this relationship).

During the infrastructure construction works phase, the union association submitted a conflictive petition and held an unlawful strike for eleven days, until and agreement was reached. They have accepted that Parish Boards are the ones in charge of workers recruiting

33






through them. Its highest interest is focused on keeping their union delegates in the contractors payroll as a source of employment for them

activities.

Construction Works Union Association supporting the UNT: YES

Issues related to due compliance of economic clauses of the construction collective contract Union practices in the construction industry depends on politics and is quite conflictive, therefore, preventative actions must be taken with contractor companies, which tend to fail to comply with the construction collective contract.

Its competitors are the Tiara and Altagracia Parish Boards who demand that all workers’ recruiting activities must be channeled through them. Its highest interest is focused on keeping their union delegates in the contractors payroll as a source of employment for them

Almost daily

They are constantly trying to get into other MLdN contractor companies from sectors other than the construction and mounting one. This has been prevented up to this date, although it could be that in the future a collective contract would be reached with these other workers that currently have no contract.

Relationships are focused on ensuring labor peace with contractors. During the construction works phase, there were many contractors, yet, currently there are very few contractors (less than 200 workers which will be reduced in the short term, so no significant future is foreseen for this relationship).

There have been no strikes or conflictive petitions; just once workers have stopped operations for no reason at all; and twice, the union has called employees not to work overtime, as a way to make pressure

UNT: YES Occasional

On two occasions, workers have stopped operations for no reason

34






at all

FETRAMIRANDA: YES

Occasional

35

SUPPLIERS AND CONTRACTORS


Stakeholders

Category


Location/ Base

Local / State/ Regional / National/

International

Focus



Suppliers and contractors Aragua and Miranda Regional Regional

Suppliers and contractors Other country’s states National National

Interested Groups/These have knowledge about impacts

Suppliers and contractors Other countries International

Contracted services quality, answering time, urgent services and labor related claims brought by contractor’s workers.

International

36


Are

stakeholders being

consulted? YES/NO

Punto clave de los contactos y detalles

Communications regularity Recent concerns How the issue has been addressed Stakeholder

Answer

Providers and contractors: YES

- Priority has been given to Venezuelan contractors over foreign ones, particularly emphasizing those from the Guaicaipuro and Santos Michelena Municipalities, whenever possible. - MLdN has tried to help Tejerías, Tiara and Altagracia providers’ development through courses for micro-entrepreneurs, but has not been very successful.

Very frequent

- Most troubles with contractors

arise from the fact that they fail to comply with labor laws and with industrial safety and health standards and this has brought some workers to raise claims before the Labor Inspectorate in Los Teques.

- The general perception is that

contractors abuse from MLdN good faith and the lack of control that could be present in some areas, particularly when emergency services are requested.

- MLdN is trying to replace small contractors with low organizational skills with other contractors showing higher size and structure. It is working on reducing the No. Of contractor companies by allotting similar services to a lower number of companies. - Suppliers and customers should be required to align by requirements set forth by such standards as ISO, OHSAS and SA on quality, environment, occupational safety and health as well as on corporate social responsibility. - Contractors should be integrated into voluntary help and social work programs in neighboring communities - Contractor’s workers should be educated on environmental protection matters jointly with the Ministry of Environment (MARN) using the educational infrastructure had by public high schools in the area. - Ensure that contractor’s workers receive an induction on industrial safety and health before going into MLdN facilities.

Note: Contractors role in employing non-qualified or low-qualified manual labor from Tiara, Altagracia y Las Tejerías is a significant one, and does considerably reduce the pressure on direct jobs offered by MLdN (that are only a few).

37

CUSTOMERS


Stakeholders

Category


Location/ Base

Local / State/ Regional / National/

International

Focus



Thyssen Krupp Nirosta GMBH, Jens Geimen

Germany International

Considar Europe (ALZ), Michel Le Chef / Inge Van Put Belgium International

Outokumpu Stainless Ltd, Sarah Yates England International

Acerinox S.A., Genaro Bujeda / Fernando Baldor Spain International

Thyssen Krupp Acciai Speciali Terni S.P.A., Mauricio Lepra Italy International

Interested Groups / These are part of the community in the broader sense

Siderúrgica del Orinoco (SIDOR), Fanny Zapata Venezuela National

Typical business issues. Commercial/ National and International

38



YES/NO Key issues on contacts and details Communications

frequency Recent concerns How the issue has been addressed Stakeholder Answer

Thyssen Krupp Nirosta GMBH: YES

Considar Europe (ALZ): YES

Outokumpu Stainless Ltd: YES

Acerinox S.A. : YES

Thyssen Krupp Acciai Speciali Terni: YES

Siderúrgica del Orinoco (SIDOR): YES

Business issues within the frame of long term agreements and sales conditions which are typical in international commodities markets

Very frequent. They are channeled through the Anglo American offices in Brazil

MLdN and Anglo have been interested in developing International Certification programs, and programs focused on due compliance with the highest international standards related to quality, safety, environment and social responsibility matters

MLdN has had no knowledge about their concern regarding social responsibility, environment or sustainable development matters

39

NON-GOVERNMENTAL ORGANIZATIONS




Location/ Base


International

Focus



Acción Campesina. Manuel Gómez (Peasant action)

Los Teques. State of Miranda Regional

- Promote sustainable agriculture within a local development frame - Part of the CESAP Social group

- State of Miranda: Guaicaipuro, Pedro Gual, Acevedo and Paez. Municipalities - Lara-Yaracuy-Mérida axis

Rural Communities

Dividendo Voluntario para la Comunidad (DVC). Arq. Luis Alemán (Voluntary Dividend for the Community)

Caracas National - Promotion and channeling of the personal and corporate social responsibility

- 400 companies and 10,000 countrywide workers affiliated

The social investment is channeled towards projects benefiting children and elders in education and health areas

Acción Solidaria contra el SIDA. Marlin Bello (Solidary Action against AIDS) Caracas National HIV/AIDS prevention and care of

people affected by HIV/AIDS

It works with teachers, students, company staff and NGO’s educating for prevention

Youngsters and Adults affected by HIV/AIDS

Interested Groups / These have knowledge about the impact

Tierra Viva Foundation Caracas National

- Promotes and carries out sustainable development projects based on environmental education and community organizational processes.

- It works in cooperation with the Living Earth organization (U.K.)

Environmental education and community organization.

Teachers, urban, rural and indigenous communities, and NGOs

40




Location/ Base


International

Focus



CESAP Caracas National

Group of organizations focused on developing programs in such areas as health, environment, education, housing, and productive development

Groups 22 social development organizations at a national level

Urban and rural communities

Fundación para el Desarrollo de la Economía Popular (FUDEP) (Foundation for the Popular Economy Development)

Caracas Central Region Promotion of social and human development Basically urban

communities

Daniela Chappard Foundation Caracas National Care of seropositive individuals and HIV/AIDS prevention

41




frequency Recent

concerns

How the issue has

been addressed

Stakeholder Answer

Acción Campesina: YES

- There is a standing agreement to give project identification and planning workshops addressed to Altagracia community leaders, and they intend to hold it in Tiara. If workshop results are successful, medium and long term agreements could be reached for it to render consultant services in community relations.

Frequent

Community expectations generated exceeded MLdN attention potential

MLdN has asked it handle expectations in a more appropriate way

Very positive

Dividendo Voluntario para la Comunidad (DVC): YES

- In addition to making a contribution as affiliation, the Voluntary Contribution through the Payroll program is being carried out (employees can voluntarily contribute to the DVC with part of their salary for projects intended to improve the educational and health infrastructure in rural and marginal areas (the company contribution matches the employees total contribution). - Relationship with the DVC meets the strategic objective of involving employees in the contribution for most needed people and communities

Frequent

Workers have asked to take part in selecting social project to be supported

A funding request was submitted for a project to be performed in Zuata

Quite favorable. Project funding was approved

Acción Solidaria contra el SIDA: YES

- An agreement was reached as to hold a workshop covering sexual education, early childbearing, and HIV/AIDS for students in the last high school year from Las Tejerías, Altagracia and Tiara within the first quarter, and later on, these students should be replicating the workshop in their communities and schools - The idea is to hold a long term relationship, as Anglo American is a worldwide leader on cooperating with the fight against AIDS.

Frequent

Foreseen workshops have not been held yet. The organization has great demand and its infrastructure is not enough as to answer to all demands

Workshops are still pending Favorable

Fundación Tierra Viva: NO

- Contacts were initiated, but were fruitless. MLdN wants to insist in the contact because it is searching for an NGO widely acknowledged on

Occasional

42




frequency Recent

concerns

How the issue has

been addressed

Stakeholder Answer

environmental matters to build a long term relationship. Ideally, NGOs we relate with should have a link with international NGOs widely acknowledged in their scope of work.

CESAP: NO Contacts were initiated, but were fruitless. It has programs in Las Tejerías. There is none

They have shown some interest, but their answer is too slow

FUDEP: NO Contacts were initiated, but were fruitless. It has programs in Las Tejerías. There is none

They have shown some interest, but their answer is too slow

Fundación Daniela Daniela Chappard: NO Contacts were initiated, but were fruitless There is none

43

PROFESSIONAL ASSOCIATIONS




Location/ Base

Local/State/ National/

International

Focus



State of Aragua Mining and Industry Chamber. Pablo Mesa

Maracay. State of Aragua State

Communications related to political and economic issues, particularly on new legislation matters

Venezuelan Mining Chamber. Gilberto Sánchez Caracas National


Mining and Metallurgy Industry Association. Alfredo Gibas Caracas National


National Council for Investment Promotion (CONAPRI) Caracas National It sends macro-economic studies regarding

the country’s conditions

Centro de Divulgación del Conocimiento Económico (CEDICE) (Economic Knowledge Dissemination Center)

Caracas National It sends macro-economic studies regarding the country’s conditions

ASOINCO. Edgardo Bossio Las Tejerías. State of Miranda Local Economic support to organize annual

conventions

Venezuelan-American Industry and Trade Chamber (VENAMCHAM) Caracas International


Venezuela / ETUI

More than 1,261 domestic and transnational companies and more than 6,576 executives in both countries

Interested Groups / These have knowledge about the impact

British Industry and trade Chamber Caracas International Communications related to political and economic issues, particularly on new legislation matters

44


Are

stakeholders being

consulted? IS/NO

Key issues on contacts and details Communications frequency Recent concerns

How the issue has

been addressed

Stakeholder Answer

State of Aragua Regional Chamber: YES

- Affiliation (recent)

- To be updated about relevant issues related to legislation matters

and common business administration practices in the country, share experiences with other companies, establish contact networks with other companies and make use of training and updating activities offered (to a lower extent than the American and British Chambers)

Not frequent

Venezuelan Mining Chamber: YES

- Affiliation

- Basically an institutional presence relationship

Not frequent Concerns brought by the new Mining Law are shared

Positive

Mining and Metallurgy Industry Association: YES

- - Affiliation


Not frequent Concerns brought by the new Mining Law are shared

Positive

National Council for Investments Promotion (CONAPRI): YES

- Affiliation - To be updated about relevant issues related to legislation matters

and common business administration practices in the country, share experiences with other companies, establish contact networks with other companies and make use of training and updating activities

On a monthly basis

Concerns shared are related to: - Current juridical insecurity in the country - Currency exchange control

Positive

Centro de Divulgación del Conocimiento

- Affiliation - Basically an institutional presence relationship

Not frequent Concerns shared are related to: - Current juridical

Positive

45


Are

stakeholders being

consulted? IS/NO


How the issue has

been addressed

Stakeholder Answer

Económico (CEDICE): YES

insecurity in the country - Attacks against private companies

ASOINCO: YES - Non affiliated (contact are being initiated)


Scarce

Venezuelan-American Industry and Trade Chamber (VENAMCHAM): YES

- MLdN is an affiliate and does actively take part in its HR and Taxes Committees.

- To be updated about relevant issues related to legislation matters


Frequent, at least on a monthly basis

Concerns shared are related to: - Taxes and labor related matters - The country’s political situation

Positive

British Industry and trade Chamber : YES

- Affiliation - To be updated about relevant issues related to legislation matters


Frequent, at least on a monthly basis

46

MASS MEDIA


Stakeholders

Category


Location/ Base

Local / State/ Regional/ National/

International

Focus



Regional printed media: El Siglo / Mireya Surita, El Aragueño / Evert García, El Periodiquito / Gustavo Urbina, El Clarín / Luis Fernández, Avance / Rómulo Hernández, La Región / José Materán Tulene

Aragua and Altos

Mirandinos Regional

- Usually, we have presence whenever a negative event or a critic against our operations does arise. For almost one year now, we also have a positive presence basically for social and community activities developed by MLdN. - MLdN prefers to appear in the regional printed media

States of Aragua and Miranda

Countrywide Media Caracas National MLdN has no interest in appearing in mass media other than the regional ones

National

Regional Radio Stations: Emisora Máxima 98.5 / Luis Alarcón, Emisora Metropolitana 97.1 / Omar García, Emisora Victoria / Cruz María Sigala, Emisora Sonera La Victoria / Andrés Sosa Mendoza

Aragua and Altos

Mirandinos Regional MLdN has no preference for having

presence in radio stations States of Aragua and Miranda

Interested Groups / These are part of the community in the broader sense

Regional TV Stations: Televisora Regional de Aragua (TVS), Francisco Narsette

Maracay, State of Aragua Regional MLdN has no preference for having

presence in TV stations States of Aragua and Miranda

47


Are stakeholders

being consulted?

YES/NO


Communications frequency Recent concerns How the issue has been


Answer

Regional printed media: YES

Regional radio stations: YES

- MLdN must have a basic relationship with and personal knowledge of owners, editors, and journalists. - MLdN needs that the various community relations, environmental control and sustainable development currently under progress are known and disclosed within the region.

Scarce

- Since denounces against us were reported, we have had more presence. - We have not been able to set a systematic or permanent contact with media owners, editors and journalists.

- Some attempts have been made to establish contact. - MLdN works with a media advisor company that helps it up to a certain extent. - Up to now, company policy has been not to answer to any attack against MLdN through the media.

Apathy

Regional TV stations: YES

MLdN has no knowledge about having appeared in the regional TV Scarce

Countrywide media: NO

Scarce interest to make contact On very few occasions

48

CATHOLIC CHURCH AND RELIGIOUS ORGANIZATIONS


Stakeholders

Category


Location/ Base

Local/State/ Regional/ National/

International

Focus



Bishop

Los Teques, State of Miranda State Religious

Interested Groups / These are part of the community in a broader sense

Parish Priest, William Guerra Las Tejerías Local

There is no evidence of a great religious activity in neighbor communities (none has a parish priest and only Altagracia has a Mass service on Sundays). We also don’t know whether or not other cults (evangelic, Mormons, etc.) are present in the communities.

Religious

49


Are

stakeholders being

consulted? YES/NO


Communications frequency Recent concerns How the issue was addressed Stakeholde

r Answer

Catholic Church: NO

- Only when the plant was dedicated the Bishop of Los Teques (who failed to attend) and the parish priest of Las Tejerías were invited.

Virtually non-existent

- After reports about environmental pollution were raised, one of the informants declared to the media that the parish priest of Las Tejerias had arranged a meeting at the church to analyze these accusations, but we ignore whether or not this is true.

- The MLdN stance is of total respect towards the religious beliefs of its employees and the neighbor communities. The company is willing to cooperate with these religious organizations as long as they are seen as community leaders and their requests for aid are not of a short-term charity nature, but as promoters of some project of a greater scope. In any case, it will basically depend on the leadership they have in their community

50

POLITICAL PARTIES


Stakeholders

Category


Location/ Base

Local/State/ Regional/ National/

International

Focus



PODEMOS

MOVIMIENTO QUINTA REPÚBLICA (MVR)

Interested groups / These are part of the community in a broader sense

ACCIÓN DEMOCRÁTICA (AD)

Caracas National Reports on environmental pollution at the National Assembly

Political / NA

51


Are stakeholders

being consulted?

YES/NO

Key issues on contacts and details Communications frequency Recent concerns How the issue was


Answer

PODEMOS: Yes Movimiento Quinta República (MVR): Yes

Acción Democrática (AD): Yes

- Contact has been recent after reports of environmental pollution were raised before the National Assembly. Contacts have been made through congress representatives had by these organizations at the NA, of some council representatives of Santos Michelena Municipality and of some union leaders of Fetramiranda and the construction union in favor of CTV. One of the council representatives of Santos Michelena Municipality took these reports as part of his pre-election campaign for the mayor’s office, but afterwards a good communication was established with him.

- Other topics usually have to do with donations for

sports events, for their election campaigns or to process some demand or request for donation for some emergency or for people in extreme poverty (e.g., donation of spare wood).

- Specific projects which may be of, or represent some

help for its community and which are not too expensive, nor set a precedent or future obligation for MLdN.

Frequently

Topics discussed with political organizations have dealt with reports of environmental pollution, and the environment and reaction have been positive and supportive for MLdN.

- At the end of the

year, a cocktail is organized where municipal political leaders are invited. Attendance can vary.

- The idea is to keep these public contacts over time through parties, lunches and collaboration

Reactions have been positive and supportive for MLdN

52

MAYOR’S OFFICES AND MUNICIPAL COUNCILS




Location/ Base


International Focus

Scope/ Extent of Influence


Mayor of Guaicaipuro Municipality, Raúl Salmerón. Council Representatives: Moreno León / MVR, Francisco Ramírez/ AD, Jairo Caro / COPEI, José Mangarre / PODEMOS

Los Teques / State of Miranda

Local

Local employment, pollution of water of rivers, taxes, invasions

Governmental / local

222,768 municipality inhabitants

Authorities / they are aware of the impact from operations

Mayor of Santos Michelena Municipality, Reinaldo Lorca. Council Representatives: Wolfang Quintero / PODEMOS, José Gregorio Diaz/ MVR, Pastor Piña / AD

Las Tejerías / State of Aragua

Local Local employment, training of micro-entrepreneurs, taxes.

Governmental / local

37,262 municipality inhabitants

53




frequency Recent concerns How the issue was addressed

Stakeholder Answer

Mayor’s Office Guaicaipuro Municipal Council: Yes

Employment of workers from Altos Mirandinos, pollution of the river crossing Tacata; municipal taxes exemption because it is a mining company, invasions of lands of the mining concession and thwarted attempts with the municipal police to install a booth at Km 54, similar to that of La Mata, with the Aragua police.

Not frequent at all

- There has been some pressure in order for us to cooperate with our contractors’ payment of municipal taxes - There have been some problems with invasions of lands of the mining concession

- MLdN claims that it is exempt from paying taxes because it is a mining company.

- This was successfully settled with the Mayor’s Office.

Mayor’s Office Santos Michelena Municipal Council: Yes

Main topics related to the Mayor’s office and the municipal council have been: employment of local workers, training of micro-entrepreneurs and payment of municipal taxes.

Non-systematic, not frequent

- There has been some pressure in order for us to cooperate with our contractors’ payment of municipal taxes - Local workers employment expectations have not been met

- MLdN claims that it is exempt from paying taxes because it is a mining company. MLdN stresses hiring non qualified or semi-qualified local workers, because the municipality has neither ET nor an INCE center and its industrial area is small and depressed.

54





Stakeholder Answer

Courses to train micro-entrepreneurs were run at INCE, which created expectations which were not met

NOTE: There is a belief that the community of Los Teques does not see MLdN as part of the State of Miranda, but rather as part of the State of Aragua.

55

MINISTRY OF THE ENVIRONMENT AND RENEWABLE NATURAL RESOURCES AND MINISTRY OF ENERGY AND MINES


Stakeholders

Category


Location/ Base

Local / State/National/ International

Focus Scope/ Extent of Influence


MARNR- Regional Director, Alcides Arzola

Los Teques, State of Miranda

State Granting of official permits . Legal / state

MARNR – Regional Director, Luis C. Rodríguez

Maracay, State of Aragua

State

Reports on environmental pollution in Tiara. Controversy about

permits for building the water well. Legal / state

MEM / Viceminister, Orlando Ortegano. General Director of Mines, Francisco Salas. Director Mining Protection, Oscar Angulo

Caracas National Reports, taxes, institutional

relations. Differences regarding the Mining Law interpretation

Legal / National

Authorities/ They grant licenses and permits

MEM – Regional Supervisor, Jorge Bolívar

Maracay, State of Aragua

State Mandatory contacts for purposes established in the Mining Law Legal / state

56





frequency Recent concerns How the issue was addressed Stakeholder Answer

MARN State of Miranda: Yes

Official permits for operations. Granting of different permits, systematic measurements of environmental variables, taking care of claims from neighbors regarding environmental pollution and environmental education. Public relations. Equipment breakage with environmental consequences.

Weekly

Environmental pollution report which was published in the newspaper

MLdN requested environmental education courses addressed to the community.

Make additional measurements and issue a final report before the end of 2004. There is certain slowness in permits granting process and the courses organization. Excessive permeability to accusations with no previous checking. Waiting terms to repair failures before resorting to penalization.

MARN State of Aragua: Yes

Request of environmental information and measurements due to reports of pollution in Tiara. Administrative contentious remedy related to the construction of the water well in Tiara; according to MARNR, authorization had to be issued by the office, and according to MLdN, by the Mayor’s Office of Santos Michelena.

Weekly

Report of environmental pollution which appeared in the newspaper

- MLdN offered a survey enabling to determine the company liability in the loss of harvests due to water and air pollution, causes and corrective measures to solve the problem. Public relations MLdN requested environmental education courses addressed

- MARNR declined the offer - Further environmental measurements - Administrative contentious remedy with MARN Aragua related to the construction of a

57






to the community. water well in Tiara. - A certain slowness in the permits granting process and the courses organization

MEM / Headquarters: Yes

Delivery of reports required by the Law, payment of specific taxes resulting from the Mining Law and mining titles, institutional relations in general

At least once a month, the Technical Representative before MEM (who is also our Head of Community Relations) and the Legal Affairs Manager visit MEM headquarters, whether or not there is a specific topic to be dealt with.

- Differences between MLdN and MEM due to the interpretation of amendments to the Mining Law. - Differences of appreciation as to exploitation tax and special advantages

- Two contentious remedies due to the interpretation of two amendments of the Mining Law: one to make it retroactive and the other one unduly extending the same to the interpretation of the mining titles. Lobby at the level of the Minister and Vice-Minister. - Position of MLdN is that the interpretation of both the Mining Law and the mining titles must always be the same, and that the rules of the game cannot be changed halfway through.

Lobby with no positive results

58






- Invite officers to visit other mining operations of the Anglo American group in the world.

Ministry of Energy and Mines (MEM) Aragua / Yes

Contacts in order to comply with the Mining Law

Permanent contact for various purposes set forth in the Mining Law. There is an officer assigned almost permanently at MLdN

59

NATIONAL ASSEMBLY


Stakeholders

Category

Stakeholder and name of its

representative

Location/ Base


International

Focus

Scope / Extent of Influence


Member of the Environmental Commission, Luis Carlos Padilla

Member of the Energy and Mines Commission, Yofre Navas

Authorities / They are aware of the impact from operations

NA representatives for Aragua: Ismael García, Elvis Amoroso, Alberto Mora, Héctor Larreal

Caracas National Environmental pollution reports Political / legal

60



YES/NO Key issues on

contacts and details Communications


National Assembly: Yes

Formerly lacking. Currently fluid, frequent and positive

- environmental pollution reports - Likely changes in the mining legislation or over foreign investments - Relations with the community, unions and authorities

MLdN had to receive an environmental subcommission investigating pollution reports It seems that the presentation made and the information delivered has been enough to expect a favorable decision for MLdN. - Political lobby after environmental pollution reports were filed before the NA on January of this year. Political lobby

Quite cooperative

61

NATIONAL ARMED FORCE, POLICE AGENCIES AND FIREMEN STATION




Location/ Base


International Focus

Scope/ Extent

of Influence


National Guard Division of La Victoria. Pablo Stephen

La Victoria. State of Aragua

Local

- Jurisdiction on environmental, mining and customs matters - Legal permits processing

Security / local

National Guard Division of Puerta Morocha. Major Arturo Ramos Local Legal permits processing Security /

local

National Guard Division of Sabaneta. Pablo Stephen Local Legal permits processing Security /

local

Ministry of Defense (DARFA) - Gregory Nieto Alba, Chief of the Explosives Division - Eduardo Richany Jiménez, Armaments Director of FAN

National

Legal permits processing Security /

National

CICPC (Division of Investigation and Supervision of Chemical Substances) Carlos Luis Monzani Vázquez

National

Legal permits processing

Industrial Security / National

Authorities / they grant licenses and permits

Fire Department (Division of Prevention and Risk Investigation and Analysis) Major Demis De Lima

Los Teques. State of Miranda

State

Legal permits processing Security /

State

62




Location/ Base


International Focus

Scope/ Extent

of Influence


Aragua Police Commander Angel Mercado Maracay. State of Aragua

State

Cooperation agreement in citizenship security

Security / Tiara, Altagracia and MLdN

Miranda Police. Commander Hermes Rojas


State

Cooperation in events of public riots

Security / State

Los Teques Municipal Police Los Teques.

State of Miranda

Municipal Cooperation in events of public riots

Security / State

DISIP Caracas National Security /

National

Directorate of Military Intelligence (DIM) Caracas National Security /

National

63


Are stakeholders being

consulted? YES/NO


How the issue was addressed

Stakeholder Answer

National Guard Division La Victoria: Yes

Periodical renewal of permits - Shipment of exports through Puerto Cabello port (permanent presence of an officer at MLdN)

Daily

National Guard Division Puerta Morocha: Yes Processing of legal permits Daily

National Guard Division Sabaneta: Yes Processing of legal permits Daily

Ministry of Defense (DARFA): Yes Processing of legal permits Sporadic

CICPC (Division of Investigation and Supervision of Chemical Substances): Yes

Contacts due to thefts occurred at the plant (cooperation limited to the minimum required in procedures)

Sporadic

Very slow. It seems to lack from organizational resources

Fire Department (Division of Prevention and Investigation and Risk Analysis): Yes

Processing of legal permits

64



consulted? YES/NO



Stakeholder Answer

Aragua Police: Yes

Recently, an agreement was signed to improve security conditions of Tiara, Altagracia and MLdN, setting forth: assignment of MLdN property to install a police module, remodel with extension potential, help to maintain a patrol car, telecommunications equipment supply, and supplying food for police officers assigned to the module. - Collaboration with MLdN in events of public riots, when its presence is required due to reasons of public order (basically, blocking of roads by communities in the past).

Community threats to block the road

Request for support Favorable

Miranda Police: Yes

- MLdN has offered to sign an agreement similar to that of the Aragua Police (property at Km 54 of CRH) without a positive result - A good communication is kept through the Head of Community Relations - Collaboration with MLdN in cases of public

disorder collaborating with MLdN when its presence has been required due to reasons of public order (basically, blocking of the road by communities in the past)

It has not stated any interest in establishing a cooperation agreement to optimize security

65



consulted? YES/NO



Stakeholder Answer

Los Teques Municipal Police: Yes

- MLdN has made an offer similar to that of the Aragua Police (property at Km 54 of CRH) without a positive result - A good communication is kept through the Head of Community Relations - Join work with MLdN in cases of public disorder. It has helped MLdN when its presence has been required due to public order reasons (basically, road blocking by communities in the past) -

Threats to block the road by the community

It has not expressed an interest in establishing a cooperation agreement to optimize security Collaboration in view of community threats as to block the road

DISIP: NO There have been no contacts up to this date

Directorate of Military Intelligence (DIM): NO

There have been no contacts up to this date

NOTE: The type of communication we wish to establish with these security agencies is the minimum required. However, it is possible that we have to become more involved due to the Anglo American adherence to the statement of Voluntary Principles on Human Rights.

66

MINISTRY OF FINANCES, SENIAT, CADIVI




Location/ Base


International

Focus



SENIAT (Special Taxpayers Capital Region). Lic. Yornan Mendoza

Caracas National MLdN is a special taxpayer, a major importer and exporter for the Venezuelan State Authorities/

They grant licenses and permits Currency Administration

Commission (CADIVI) Caracas National Entity in charge of granting foreign currency within the current exchange control framework standing in the country


Are

stakeholders being

consulted? YES/NO


Communications frequency Recent concerns How the issue was


Answer

SENIAT (Special Taxpayers Capital Region): Yes

- There is a department dedicated to tax issues (Income Tax, VAT, IDB, IAE) and to obtain foreign currency with Cadivi.

Very frequent

- Seniat shows serious and very significant delays regarding the VAT retrieval, which are causing significant losses and could even make MLdN to stop operations. It is not very clear for how long or how we are going to deal

- Due to our special relation with the State because it is a concession of the same, this issue has been handled in a very delicate manner, and not as openly as we would prefer

67


Are

stakeholders being

consulted? YES/NO


Communications frequency Recent concerns How the issue was


Answer

- So far penalties have been kept to a minimum and we have no knowledge about any administrative procedure against MLdN

with the VAT retrieval issue - Some contractors and suppliers fail to comply with fiscal regulations and it seems that MLdN does approve that, which affects our public image

and are entitled to - Control and supervision of contractors and suppliers has been reinforced

CADIVI: Yes There is a department particularly dedicated to tax issues and to obtain foreign currency with CADIVI

Very frequent

- CADIVI shows serious and very significant delays regarding foreign currency granting, which are causing significant losses and could even make MLdN to stop operations. It is not very clear for how long or how we are going to deal with the foreign currency granting issue.

- Due to our special relation with the State considering the granted concession, this topic has been handled in a very delicate manner and not as openly as we would have wished and to which we are entitled

Very slow. Poor cooperation

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MINISTRY OF LABOR


Stakeholders

Category


Location/ Base


International

Focus

Scope/Extent of

Influence


Authorities / They grant licenses and permits

Ministry of Labor (Los Teques Labor Inspection Office). Marcia Torres

Los Teques State

- The relation does just refer to inspections, summons, requests or claims of labor nature, which have been very infrequent - Sometimes we have had relations with the Inspection Office of La Victoria for recruiting staff at the beginning of operations

69






Ministry of Labor (Los Teques Labor Inspection Office): Yes

Topics discussed are related to failure to comply with the labor legislation by MLdN contractors; in some cases, plaintiffs have filed suits against MLdN because it was the contracting company (principle of employer solidarity)

Scarce

- Our contractors have been summoned much more frequently for various defaults, which indirectly damages our image before the Inspection Office.

- Some attempts to approach officers of Los Teques Inspection Office have been made through the external lawyers of the company, but the high volume of work at the Inspection Office and the high staff turnover have prevented these activities from being carried out. - MLdN is implementing an audit process to contractors in order to guarantee that they are complying with the legislation. - Certification of the SA 8000 standard on the social responsibility will make us to have a tighter and demanding inspection on labor conditions our contractors offer to their workers.

70






Small contractors and/or major contractors who are disorganized are being replaced by other larger and/or more organized and responsible ones, even though this means a cost increase in the short run.

71

MINISTRY OF HEALTH AND SOCIAL DEVELOPMENT




Location/ Base

Local /State/ National/

International Focus



Ministry of Health and Social Development. Regional Directorate State of Miranda (CORPOSALUD). Domingo Parababi


State

- Renewal of various health permits for our facilities - Cooperation in some epidemiology campaigns


Ministry of Health and Social Development. Regional Directorate State of Aragua (CORPOSALUD). Benito Aguilera

Maracay. State of Aragua

State

- Renewal various health permits for our facilities - Cooperation in some epidemiology campaigns - Cooperation for ambulatory health centers operations

Tiara and La Esperanza

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Stakeholder Answer

Ministry of Health and Social Development. Regional Directorate. State of Miranda: Yes

- A very positive and fluid relationship with its officers - We cooperate with MSDS with regard to community claims, e.g. Altagracia ambulance maintenance.

Very frequent

Ministry of Health and Social Development. Regional Directorate State of Aragua (CORPOSALUD): Yes

- A very positive and fluid relationship with its officers - We cooperate with MSDS with regard to community claims, e.g., ambulance maintenance and minor repairs of Tiara and La Esperanza ambulatory health centers infrastructure, although these tasks are under the state and municipal governments’ responsibility. - We help in some low cost dental and epidemiology operations for MLdN. This collaboration is to be increased in the near future once the Rafael Rangel camp refurbishing is completed, which is mainly intended for surveillance activities regarding bubonic plague. Yet its facilities and resources may be also used for other epidemiology campaigns, such as cholera, dengue fever, bilharzia, chagas disease,

Very frequent

Denounces related to respiratory and skin conditions in Tiara due to an alleged environmental pollution caused by MLdN, which is being considered by Corposalud Aragua.

MLdN has offered Corposalud to fund a scientific research to determine whether such conditions exist or not, their extent magnitude or seriousness, causes and potential preventative and corrective measures. In this regard, MLdN has contacted some universities and scientific associations.

Quite favorable

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Stakeholder Answer

AIDS, in which MLdN would be willing to help (in addition to paying for refurbishing works and salaries of the camp staff).

OTHER GOVERNMENTAL AGENCIES (IVSS, INCE, CONAVI, CONACUID)




Location/ Base


International Focus



IVSS-General Directorate, Ana Sánchez Caracas National

Administrative procedures and payment of mandatory contributions


INCE- Coordination of the Mining Metal Center

La Victoria, State of Aragua

Local Administrative procedures and payment of mandatory contributions

74




Location/ Base


International Focus



INCE- Regional Manager´s Office Maracay, State of Aragua

State Administrative procedures and payment of mandatory contributions

CONAVI Administrative procedures and payment of mandatory contributions

CONACUID Caracas National

Compliance with the Organic Law on Narcotic and Psychotropic Drugs (Art. 101)

75





Stakeholder Answer

IVSS: Yes

- MLdN has an agent for administrative procedures and payment of both corporate and employee mandatory contributions - A lawsuit regarding payment of forced unemployment insurance contributions is currently in process. The judgment in the first instance was favorable to the company

Permanent and quite frequent

Troubles regarding issuance of payment evidences

An agent is available

Despite difficulties, payment evidences are obtained

INCE –Coordination of the Mining Metal Center: Yes

- Very good relations have been kept, for instance, regarding micro-entrepreneurs training and certification of qualified labor in communities. - They wish to go on with the qualified labor certification program in communities


INCE- Regional Management: Yes

- Very good relations have been kept, for instance, regarding the formation of microentrepreneurs and certification of qualified labor in the communities - They wish to go on with the program for certification of qualified labor in the communities. - A lawsuit is being held regarding manner of calculation of the legal tax. The judgment in the first instance has been favorable to the company


Lately, some problems have arisen mainly regarding apprentices training centers and the acknowledgment of training costs deductions, but this is a nationwide problem. Troubles regarding issuance of payment evidences

MLdN does directly process payment evidences

Despite difficulties, payment evidences are obtained

76





Stakeholder Answer

CONAVI: Yes Its activity is completely decentralized in the banking system, at least in reference to compliance with the Housing Policy Law.

Scarce

CONACUID: Yes The manner in which we must comply with the investment regarding the fight against drugs since next year, as required by the law, must be defined.

Contacts are being made for the first

time

The amount of the contribution to be made by MLdN is rather high. We have to define the way to administrate and manage it

Intermediation through an NGO has been foreseen

Positive

77

GOVERNMENT AND LEGISLATIVE COUNCIL OF THE STATE OF ARAGUA




Location/ Base


International Focus

Scope/ Extent

of Influence


Authorities / They are responsible for all issues related to socioeconomic development, services infrastructure and provision, local planning and financing

Government of the State of Aragua

Maracay State

- After the plant was opened, the Government, through the Government Secretary, took part in a work team with MLdN and other official organizations, upon request from President Chavez, and due to the claims Tiara Community had raised about the project. This contact was lost over time, once the team coordinator submitted his report for the President. - Issues discussed in these relations have been related to environmental pollution and analysis of statements made by Tiara Community with regard to public services (power supply, roadways, health, education, housing, security)

Political 1,436,314 State of Aragua inhabitants

78




Location/ Base


International Focus

Scope/ Extent

of Influence


Legislative Council of the State of Aragua

Maracay State

Frequent contacts were held at the beginning of the project to obtain political support for the project development, but contacts ceased once concessions and permits were granted.

Political

79


Are stakeholders

being consulted?

YES/NO



Government of the State of Aragua: Yes

The relationship with the government of Aragua has been kept by highlighting our operations significance for the regional and the neighbor municipalities’ economy, as well as for the stability image of the country in general, because it is a major foreign investment project. - the Secretariat of Institutional Relations has helped us to establish contacts with National Assembly representatives for the State of Aragua and with political parties leaders which support the government (Podemos, MVR). - We intend to keep these political contacts with the government on a permanent basis, and have stated the potential of letting the government use facilities owned by the company at km 54 of the highway under commodatum contract, in order for it to install an environmental information system or an information center about Loma de Niquel project and its impact, or of any other use of public interest.

Very infrequent

- Reports of Tiara Community on environmental pollution - Claims of Tiara Community related to public services

- Contacts with the government have started again after the environmental pollution reports, particularly with the Secretariat of Institutional Relations. - We have handled them by stating that these are not our responsibility, but that we can help to channel them; in some cases we have helped with specific minor maintenance infrastructure works (e.g., repair of sports facilities, paving the old road)

- The relationship with the Secretariat of Institutional Relations of the Government has been quite fruitful: support for political lobby and control of activities and conflicts with political parties in Tiara Community related to pollution claims. - The government has shown interest in research projects submitted by MLdN about respiratory and skin conditions and in flowers and vegetables cultivation

80


Are

stakeholders being

consulted? YES/NO



- So far, we have not received inappropriate requirements in exchange for the help requested by MLdN.

- Sometimes, the Government has tried to make us to assume some responsibilities such as the Tiara ambulance purchase, maintenance and the payment of its driver’s salary, which we have not accepted because that is not our responsibility.

Legislative Council State of Aragua: NO

- We expect to start contacts so that they do not think we only contact them when we have problems. In this regard, we intend to keep a permanent public relations activity with this institution.

Scarce

81

GOVERNMENT AND LEGISLATIVE COUNCIL OF THE STATE OF MIRANDA




Location/ Base


International Focus

Scope/Exten

t of Influence


Authorities / They are responsible for all issues related to socioeconomic development, services infrastructure and provision, local planning and financing

Government of the State of Miranda

Los Teques State

- Contacts were frequent at the beginning of the project in order to obtain political support for project development, but once the concessions and permits were granted, contacts did not continue. There has not been a significant interest from the government. - Topics addressed within these relations have been those referred to security at km 54 road to La Mata, this road delivery and maintenance, and Los Bagres school construction, and our contribution to pay teachers’ salaries and benefits. We also see that they do not consider us as part of the community of Miranda, but rather as part of the community of Aragua.

Political 2,330,872 State of Miranda inhabitants

82




Location/ Base


International Focus

Scope/Exten

t of Influence


Legislative Council of the State of Miranda

Los Teques State

Frequent contacts at the beginning of the project intended to obtain political support for their development, but once the concessions and permits were granted, these contacts did not continue

Political

83


Are stakeholders

being consulted?

YES/NO

Key issues on contacts and details Communications frequency Recent concerns How the issue

was addressed Stakeholder Answer

Government of the State of Miranda: Yes

- The relationship with the government of Miranda has been kept by highlighting our operations significance for the regional and the neighbor municipalities’ economy, as well as for the stability image of the country in general, because it is a major foreign investment project. This message has been, and is actually supported by the government which has provided us all political support. - Our relationship with the Directorate of Education of the State of Miranda has been very good, however, this school year it has failed to comply with its duty to provide educational materials and maintenance for Los Bagres school, which has had an impact on the school abandonment rate. - We intend to start political contacts with the government on a permanent basis and have stated the potential of letting the government use facilities owned by the company at km 54 of the highway under commodatum contract, in order for it to install an environmental

Very infrequent

- Claims from the Altagracia community with regard to public services. - MLdN has to extend the school this year 2004 by adding two more classrooms. There have been confusions as to what type of social benefits must be included within the contribution we make for school teachers. - Regarding the road constructed by MLdN from km 54 of the highway to our plant, the road was donated to Invitrami, a regional entity which should be in charge of the roads in Miranda.

- We have handled them by stating that these are not our responsibility, but that we can help to channel them; in some cases we have helped with specific minor maintenance infrastructure works

- The secretariat of the government has offered us support when road blockages other riots were held, mainly during the project construction works phase - Unfortunately, this entity has not carried out any maintenance activity in this road, which causes us a major expenditure, because we have to pay for it.

84


Are

stakeholders being

consulted? YES/NO

Key issues on contacts and details Communications frequency Recent concerns How the issue

was addressed Stakeholder Answer

information system or an information center about Loma de Niquel project and its impact, or of any other use of public interest.

Legislative Council of the State of Miranda: NO

- Contacts were frequent at the beginning of the project; then, these did not continue. There has not been any interest from the Legislative Council. - We expect to start contacts so that they do not think we only contact them when we have problems. In this regard, we intend to keep a permanent public relations activity with this institution.

Scarce

85

2.4. Building the Basic Community Profile In order to build the profile of those communities near Minera Loma de Níquel C.A. operations, the SEAT methodology provides Tool B.2, particularly intended to help learning about communities that could be affected by the operation. The base line information gathered with this tool allows to:

a. Create a benchmark to determine future impacts on the community b. Provide information that can be further used as input for the Community Commitment Plan (PCC) and

to define community investment strategies. The knowledge and understanding of a community requires an overview of its particular geographical and socio-demographic context. For such purpose the information about Venezuela and the States and Municipalities where communities forming the MLdN area of influence are located was systematized, and can be seen in Annex 3. The information about communities has been organized in two sections: Building the Profile of Tiara Community and Building the Profile Altagracia de la Montaña Community. Each section includes the following points: Parish characterization

• Geographical context • Origins • Demographic aspects • Economic activity • Health services • Education services • Other services • Main needs • MLdN contribution to community development • The collective imaginary

Finally, the Minera Loma de Níquel Area of Influence is characterized on such basis as considering both parishes as an overall reference and intervention area for the corporate social investment policy.

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2.4.1. BUILDING THE TIARA COMMUNITY PROFILE

Geographical Context At only one and a half hour from Caracas, off the Tejerias intersection, we find the town of Tiara. This small town, traditionally supported by cattle trade, now bases its economy on nickel mining and extraction since a modern plant for its extraction was recently installed. The route between this town and San Sebastian goes across small hills and meadows, with various views and vegetations making it one of the most complete trips in terms of landscapes and lands.

The Origins We could not determine with accuracy the time when the community of Tiara was born, but neighbors talk about four generations that have lived in the area. It was founded very near the Tiara River, at the Caramacate River head, and the story goes that first settlers came from San Sebastian de Los Reyes, Barbacoa and Valle de la Pascua. Tiara was an area of cocoa and coffee farms, although a good part of its economy was a subsistence one due to the bad conditions of the roads, which made it difficult to send agricultural production to market. Slowly, the people emigrated toward nearby cities to be part of the starting industries and agricultural and cattle raising activities diminished progressively. The first highway went from Villa de Cura to Tiara and was extended afterwards from Tiara to Chaguarama. The farm of Gonzalo Gomez, Juan Vicente Gomez' son, was located in Santa Rosa and General Lopez Contreras, the only Venezuelan president to visit Tiara (in 1936), had a farm in Chaguarama. Ascanios and Blancos are among the first families who lived in Tiara. Mr. Seferino, 86 years old, a community neighbor, offers his memories for reconstructing the history: “Near the plaza was the first grocery store. On Saturdays, the salted meat was bought there and you had to carry a huge backpack to put in all the meat and vegetables of all types you could buy for three coins. The whole area was agricultural -corn, quinchoncho (variety of pigeon pea), rice, black beans...). A bottle of milk was twenty-five cents, a Tiarita's "queso de mano" (a Venezuelan type of white cheese) from Nicasia Delgado's house, was worth seventy-five cents and was enough for an entire family to eat. A cassava cake or a naiboa (cassava cake with sugarloaf) was worth thirty-five cents. The children built the courts ourselves (one at El Rodeo and the other one at Peña Street), we used to fly kites and we played whip top during the Holy Week, while the older ones were already working and went to the harp parties on Saturdays. In Tiara, there were movie projections and acrobats. It was very pretty and there were many people, but there were few jobs after coffee plantations disappeared.” In 1920, the Inmaculada Concepcion Beneficial Society was created. It was the first community organization devoted to social work.

87

Demographic Aspects The population of the Tiara parish is estimated in 2,449 people, 1,341 men and 1,108 women; 1,176 people live in the parish capital city. 633 of them are men and 543 are women (calculations based on the Census – Annex 4). The Tiara non urban parish has a total of 1,006 houses, 629 (62.5 %) are occupied, with an average 3.9 people per house. There are 116 vacant houses (11.5 %), 224 for occasional use (22.26 %) and 37 under construction (3.6 %). These are the only figures shown on the XIII General Population and Housing Census regarding Tiara Non Urban Parish.

Economic Activity Traditionally, the main economic activities of Tiara community have been agriculture and cattle breeding, and once the MLdN operations started up, the mining activity has been added. In the community, people cultivate various vegetables, such as beans, grains, cauliflower, broccoli, beet, carrot, avocado –which are basically traded at the Coche market in Caracas- double purpose cattle is bred and, recently, they have developed floriculture; nevertheless, it seems to be a very diminished activity. The survey made it possible to identify some changes in recent year employment trends; as reported by surveyed people, when the decline of agriculture and cattle breeding began, Tiara labor force started to migrate toward nearby cities, as Las Tejerías, La Victoria, and Los Teques, seeking new employment opportunities. The Anglo operations opening meant a great attraction for local people since it brought an employment possibility that did not imply to abandon the area and be separated from the family, along with the potential to be employed in far more beneficial conditions from the socioeconomic point of view than the ones offered by Tiara traditional activities; this took place particularly during the initial stages of the operation. Nowadays, informers perceive that there has been a certain recovery of the agricultural activity since MLdN capacity for absorbing local labor has diminished with regard to initial mine exploitation phases. This is how changes in trends are mainly attributed to MLdN operations impact. In Tiara, most lands are municipal property and lands belonging to the Instituto Nacional de Tierras -National Lands Institute- (INTI). Nowadays, the people are trying to normalize their land ownership.

Health Services In the Parish capital city, there is a Rural Type II Ambulatory Health Center built by the community with support from the Ricaurte District Municipal Council and the Aragua State Executive in September 1963. Additionally, there are other two ambulatory health centers functioning in the parish: one in La Esperanza and another in Las Dolores de Aragua. The average monthly coverage of the capital city Health Center ranges from 400 to 500 people, it has a nurse or nursing auxiliary, a regular physician recently appointed as reported by the

88

corresponding Sanitary District –which means that one of the community most restated demands -due to the irregularity and poor continuity of the physician presence in the Health Center- was finally met. A neighbor reported the presence of a social worker, but it was not possible to verify such information. The Ambulatory Health Center renders services such as general curative medicine, vaccinations, sample taking for laboratory tests that are performed in Las Tejerias, emergencies referral to hospital centers in Las Tejerias and Los Teques, pediatric control, obstetrics, cytology, onchocerciasis, informative lectures related to prevention and health care, home visits and rural penetration. The most frequent illnesses are allergies, skin illnesses and intestinal disease. The people consulted describe the community health services quality as regular or deficient due to standing limitations in terms of infrastructure, shortages in medications supply and lack of adequate equipment.

Education Services Tiara has an educational center that covers Preschool, Basic Education and Diversified High School Education, and whose has –approximately – 70 children in Preschool and 300 and 70 in Basic and Diversified Education, respectively. The informers’ perception about the education services quality is more negative as one goes up in educational levels. Thus, for Preschool Level, it is between “Excellent” and “Very Good”, for Basic Education it is “Good”, and with relation to Diversified High School Education, the majority describes it as “Deficient”. All educational levels are covered by around 27 teachers. With regard to educational services, the people consulted show their concern as for quality and the need to improve and extend the infrastructure and educational center equipment and supplies. They report that there is no filter to guarantee water quality for students, the deterioration shown by classrooms and other facilities, the lack of laboratory and sport fields, the poor endowment of the library, frequent floods and eventual cattle invasions inside educational facilities.

Other Services

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Tiara counts with certain social infrastructure that, although insufficient for community needs –according to the neighbors’ perception - offers some services considered as important by the people who live there. So it has four children day care multi-homes whose services are described as excellent or very good and a sort of nursery called Cielo Abierto, of private character, attended by Mrs. Julia Olmedo servicing around 20 children, from 2 to 4 years old. There is a sports field deemed as insufficient, as it is used by the school students during class hours, thus restricting the chance for other community members to use it. Apart from that, it does not have a lighting which would allow extending its usage schedule. A space for communitarian meetings does exist, the Parish Board premises, which are equipped for public attention, a room for formative activities, a computer center and common areas. Tiara has a Dance School, “Semblanzas de Tiara”, and the group “Burbujitas de Cristal” as a stimulus to cultural activities development. Tiara does not have other services as daycare centers, access to Internet, public library or space for cultural activities development. It was possible to verify the presence of governmental social programs as Mercal, Mision Vuelvan Caras and Mision Ribas.

Main Community Needs The Tiara community states several needs regarding basic services, specifies sectors being more affected by these lacks, agencies that should attend them and the nature of requirements to meet them. A synthesis of the information obtained in that regard is shown below:

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TABLE Nº 1: NEEDS RELATED TO BASIC SERVICES (TIARA)

NATURE OF THE REQUEST NEED SECTORS AFFECTED

AGENCY Activation Extension Improvement

Potable water supply Rodeíto, El Castaño, El Rodeo

Mayor’s Office

CORPOSALUD

x

Power supply Tiara Community ELECENTRO x x

Roadways From Las Tejerias to Tiara

MLdN x x

Garbage Collection Tiara Not mentioned x

Transportation People who study and work outside Tiara

Private sector x

The community does not report fixed telephone services, public security or a sewage system as priority needs. With regard to community needs that go beyond basic services existence and coverage, neighbors furnished valuable information that was processed according to each sector needs and particular specifications, as shown in the following table:

TABLE Nº 2: NEEDS RELATED TO OTHER SERVICES PER SECTOR (TIARA)

SECTOR

NEED

HEALTH

• To have two physicians and another nurse, or at least a permanent physician. CORPOSALUD does not appoint the physician with the required regularity

• To improve the physician house

• To reduce the multiple physician shifts

• To instrument dental and ophthalmology services

• To increase the Public Clinic medications supply and improve facilities (extension, front roofing, dividing panels, filters, restrooms improvements)

• To have an ambulance adequate for the area roadways

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EDUCATION

• School general repair (painting, lighting, fencing)

• Water filters installation

• A school cafeteria

• Contracting of a janitor

ROADWAYS

• Maintenance of the old highway.

• Improvement of the roadway from Las Tejerias to Tiara

SPORTS

• Power supply for the field lighting

EMPLOYMENT

• To open MLdN to Tiara youngsters to avoid migration and offer professionalization opportunities

MLdN contribution to Community Development The people surveyed to build the community profile acknowledge a number of contributions and efforts that MLdN has done to favor Tiara community since operations startup. These contributions can be synthesized as follows:

• Construction of a new roadway and repair of the old highway

• Repairs to the Public Clinic and contributing to its maintenance. Payment of medical fees

• Construction of a well that would help the community water supply, even though it is not working yet

• Generating employment opportunities in the area / micro-companies have been created / contractors offer employment

• Construction of the police module in La Mata

• Repair of the sports field

• Delivery of food bags in December to some families

• Granting of scholarships to study at INCE in La Victoria

• Professionalization of staff within the company

• Contribution to repair, improve and install air conditioning at the Parish Board

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The summary table on Community Profile proposed by the SEAT Methodology is shown below:

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TABLE B2.1.1. BUILDING THE TIARA COMMUNITY BASIC PROFILE

GEOGRAPHICAL CONTEXT Local Settlement

Settlement Tiara

Settlement size (population) 2,449 people

Distance from Anglo operations

Local owners

Owners directly adjacent to operations / property (number)

Owners (names) Data not available

Key activities / type of land use from these owners

Agriculture and cattle breeding. Almost all lands are municipal lands or belong to the Instituto Nacional de Tierras (INTI).

HISTORICAL CONTEXT

Year when the settlement was established

Undetermined. According to informers, at least four generations have lived in the community

History of the settlement in relation to the Anglo operations

Tiara community existed before MLdN operations started up

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Description of Anglo contributions to the settlement development

- Construction of a new roadway and repair of the old highway

- Repairs to the Public Clinic and contribution for its maintenance. Payment of medical fees

- Construction of a well that would help the community, even though it is not working yet

- Generation of employment opportunities in the area / micro-businesses have been created / contractors offer employment

- Construction of the police module in La Mata

- Repair of the sports field

- Delivery of food bags in December to some families

- Granting of scholarships to study at INCE in La Victoria

- Professionalization of staff within the company - Contribution with the repair, improvement and air

conditioning of the Parish Board

COMMUNITY FEATURES

Gender (%)

The population is distributed as follows: 1,341 men (54.7%) and 1,108 women (45.3%)

Age (%)

Data not available

Population age structure description

Data not available

Main religions

Catholic and Evangelical

Main ethnic groups

There are no prominent ethnic groups in the community

ECONOMIC AND SOCIAL INFRASTRUCTURE

Type Number, coverage, features

Health infrastructure

Rural Type II Ambulatory Health Center

400 people per month

Education infrastructure

Education Center with preschool, basic and diversified high school education at the parish capital. There are 6 other schools in the rest of the parish and a high school at La Esperanza.

In the capital city education center, preschool takes care of 70 children, basic education levels have near 300 children and the diversified high school level has around 80 youngsters (the third high school promotion graduated recently)

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Services

Power supply

Waste disposal system through septic wells

Water

Garbage collection

There are constant power failures, water does not always go through the adequate processing, garbage collection only covers the parish capital city.

Transportation Infrastructure

Interurban

1 route Tiara – Las Tejerias with two departures and two arrivals per day

LIVELIHOOD

Sector

Livelihood

Main economic sectors in the local area

- Agriculture

- Cattle breeding

- Mining industry

Forms to earn a living in the local area

Cultivation of vegetables and fruits. Double purpose Cattle breeding

Employment in MLdN

Fruits and vegetables trade at the Coche market and agricultural subsistence economy.

Double purpose and family consumption cattle breeding

Direct employment at MLdN or at the contractor companies linked to it

Average income level

Data not available

Main business sectors and employment per sector

- Agriculture

- Cattle breeding

- Mining industry

According to neighbors’ estimates, 40% people works in agriculture, 30% in cattle breeding, 10% in floriculture and 20% in the mine.

Estimated employment level

In the entire MLdN area of influence (Tiara and Altagracia parishes), the predominant occupation categories are:

- Permanent Employee or worker: 38.2%

- Freelance worker: 35.1%

- Hired employee or worker: 11.5%

Changes in employment in the last five years

Before MLdN operations started-up, main economic activities were agriculture and cattle breeding. Subsequently, a relative abandonment of these activities was evident given the people’s preference to be employed by the company due to the beneficial socioeconomic conditions offered. Currently, some recovery of the

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agricultural activities and a growth in unemployment can be seen because the capacity of the company to absorb local labor has decreased.

The Collective Imaginary The survey wanted to learn about the imaginary of the Tiara community people regarding the operation, since the ideas they have about events and incidents affecting them are part of their reality and influence the way they perceive possible impacts. Therefore, the operation should be interested in learning about that imaginary, stated through the following phrases:

• “The company only places filters when MARN representatives come by”

• “Water turned orange”

• “Accidents have increased and the company keeps that secret”

• “There are some nuggets in the mine some say they are gold”

• “Company officers are plotting against Tiara high school graduates to hinder them from working in the mine”

• “The transportation of some pipes that had mice infected with bubonic plague, from Brazil to the mine, was the cause of death of many community people. They are buried in a special cemetery for those dead by this cause. The great majority of mine workers are not from Tiara; nevertheless, many people from Tiara died at the beginning of the mine exploration due to bubonic plague. This is unfair”

• “It is the mining company responsibility to develop the community due to their contract. That is why the government does not help”

• “If MLdN did not exist, people would lead more peaceful lives, living on their cattle, sowing lands. Nobody would fight, not as they do now. They fight a lot with the company and among themselves”

• “The mining company gets many profits and, therefore, they should help the community”

• “Meetings are not worthwhile because we never get results”

• “They take the wealth, they contaminate the town and take out the water”

• “The company does not help us but it is also true that the community has not organized itself in an appropriate way”

• When we think about MLdN, we evoke “death, disaster, disease increase and destruction”

• “Minera can represent an opportunity and we are always willing to talk”

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2.4.2. BUILDING THE ALTAGRACIA DE LA MONTAÑA COMMUNITY PROFILE

Geographical Context 5 Altagracia de la Montaña is located in the south west of the State of Miranda and south of the Altos Mirandinos Subregion. It is bordered by Tacata Parish and Paracotos to the North; to the South, by the State of Aragua; to the East, by Tacata Parish and Urdaneta Municipality and, to the West, by Santos Michelena Municipality of the State of Aragua. It shows nineteen sectors: Las Dolores, El Guasimo, El Cascajo, Bucarito, San Daniel, Los Amarillos, Bagre, Altagracia, Las Oficinas, La Concepcion, El Pegon, la Union, Los Bagres, Bella Vista, Curazao, Las Casitas, El Palito, Santa Cecilia, Los Tres Palos, and nine big farms: La Lagunita, La Emilia, El Provenir, El Amparo, Guare, El Carmen, Carupero, La Laguna and El Salto. The region natural resources include a hydrographic net formed by two main rivers: El Guare and La Emilia, which flow into in the Tuy basin after collecting numerous affluent rivers and streams. It shows a quite varied relief, with valleys, plains and high mountains, which are the predominant feature. The vegetation is very diverse and exuberant, characteristic of subhumid tropophylic forests, with natural pasturelands encircled by bushes. Cloudy forests and plains can be seen in the high areas. There are outstanding trees of great beauty like tecoma, apamate, bucare, maría, drumstick tree and orare; and timber-yielding species like mahogany, pardillo (laurel), cedar, with predominance of saman, carob tree, huisache, yellow mombin, mijao, trumpetwood and zagua regue. Various orchid species exist in the area, as well as, flor de montaña and lily. The fauna is also quite diversified and you can find species such as agouti, deer, armadillo, wild pig, guinea pig, rabbit, sloth, ant bear, opossum, howling monkey, skunk, iguana and squirrel. There are snakes like rattlesnake, tigra, bejuca, dos cabezas, coral and macaurel; and birds such as guacharaca, sparrow hawk, woodpecker, heron, parakeet, parrot, oriole, jay, indigo bunting, wild hen, toucan, among others. Altagracia de la Montaña area is rich in customs and traditions like the patronal festival to honor Saint Judas Tadeo, patron saint of the parish -celebrated in October each year- the feast to honor Saint Daniel and the clothing of the Cross of May. During the Holy Week, processions are held. The custom is to eat dry fish, boiled and stew, as well as rice with coconut. In Christmas time, they cook the traditional hallaca filled with hash and in August, they eat cachapa (a type of cornbread) with "queso de mano", which is made of tender corn (jojoto) and is wrapped in corn leaves. The typical beverage is the corn "carato"; the typical dish is composed of black beans, corn bread, cheese and egg; the traditional dance is the "joropo tuyero" and the toys are marbles and "perinola" (kind of top). 5 Taken from the material kindly provided by its author, Mr. Francisco Seijas, Prefect of the Altagracia de la Montaña Parish.

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The Origins 6 According to Lucas G. Castillo Lara in his book “Una tierra llamada Guaicaipuro” (“A land called Guaicaipuro”), Altagracia de La Montaña was a land property of Mr. Luis Rivero, around the year 1792. Castillo Lara states that the Englishman J.M. Spencer visited the area, along with a diplomat from Lisbon, and together with Don Luis Rivero, they wanted to colonize this region bringing immigrants –something like what is currently known as Colonia Tovar. By then, a German to whom a piece of land had been leased had already established himself there. The Englishman was seduced by the natural landscape beauties and said: “A natural amphitheater with wavy lands, with enough and high densely forested mountains, which would be big enough for enterprises and industries and 20,000 immigrants. The lands are indescribably rich and the climate is comparatively fresh and definitely pleasant”. The migratory project –said the Englishman- was unfeasible, since the area lacked from roadways and was located very far from markets. In addition, he defined the area as did Christopher Columbus when he arrived at the Venezuelan coast: “We feel like Christians should have felt in sight of the celestial city”. Luis Rivero founded the lower part. The English owners of Guare occupied the highest section and exploited the indigo and exported blue and burgundy color paints that were very valued in European markets due to their quality for painting cotton. There were two big farms, Guare and La Concepcion; the latter was sold to an Italian and Guare was sold to two brothers from Spain: Jose Brigido Seijas and Manuel Seijas, since the slaves had revolted several times and the situation had become unsustainable. With time, Jose Brigido established himself, founded his family and started to distribute coffee farms he had founded: Las Dolores, El Guasimo, Santo Tomas, Bucarito, El Pauji; all this around 1870. The main farms were those of the current area of Altagracia, which had not the same names as now, but it seems that they were called La Merced, Guare, La Lagunita, Las Dolores, El Guasimo, Bucarito, El Pauji, La Emilia, among others. At the beginning, one of the best coffees was produced Las Dolores and El Guasimo; this cultivation was ended by the 60’s, because the cocoa had already been lost. This happened because, with the fall of Perez Jimenez, city leaders went to the fields to convince country people to abandon the farms and go searching for better opportunities. The farms had no more credit and crops were progressively lost. At that time, there were more people living in the area than nowadays but they emigrated to Los Teques, Caracas, Aragua, Valles del Tuy. Later on, one of these farms passed to the hands of General Eleazar Lopez Contreras and came to be famous due to its cattle quality. By early 1900, movies were shown in El Carmen farm; where the Parish Board is now there was a place to pasteurize milk - a colonial house that was torn down– and wire telephone that operated through a switchboard in Tacata. Big farms had telephone and they could communicate among themselves. With regard to the first people who lived in the region, according to tracks found in caves and stones of the Guare and La Emilia rivers, it is presumed that in very remote times the lands of Altagracia de la Montaña were inhabited by the indigenous quiriquires, a tribe that dominated Valles del Tuy, Tacata and part of Paracotos by the time when the Spaniards arrived. These natives could have arrived at this area following the contrary course of the river Guare as a result of the conquerors’ pressure.

6 Taken from the material kindly provided by its author, Mr. Francisco Seijas, Prefect of the Altagracia de la Montaña Parish and from information gathered from the interview performed regarding this survey.

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It is difficult to determine who founded this locality, since there is no documentary source to support such information; we can only infer that it was colonized by the white man, who subsequently introduced the African slave labor, which was utilized to work in coffee, cocoa and indigo plantations. Evidences of this activity can still be found specifically in the Guare farm, property of the Seijas family, where the ruins of what was “the office” –thus it was called- where they processed coffee can be seen,. Also in the sector currently known as La Concepcion, there are ruins of a sugar cane processing facility; in La Union sector there is a sugar mill structure, where sugar cane was processed and sugarloaf was manufactured. Currently, Altagracia de la Montaña is a parish segregated from the Tacata Parish, according to the Official Gazette of the State Miranda dated on April 23rd 1992.

Demographic Aspects According to the last Population and Housing Census carried out in 2001, the Altagracia de la Montaña Parish total population is of 3,629 people, of which 1,881 are men and 1,748 are women. It is worth rescuing a censual work carried out by the Civil Head Office of the Parish, which shows figures on total population spread by population sectors and age groups, very similar to the Census official numbers. Results of this work were furnished by Mr. Francisco Seijas, Prefect of Altagracia de la Montaña, are as follows:

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TABLE Nº 3: ALTAGRACIA DE LA MONTAÑA POPULATION ACCORDING BY GENDER AND AGE

GROUP

SECTORS CHILDREN TEENAGERS ADULTS TOTAL M F M F M F

Las Dolores 26 33 10 15 63 40 187 El Guasimo 22 17 12 13 50 57 171 El Cascajo and Bucarito 47 36 16 26 77 56 258 San Daniel 68 79 27 15 135 126 450 La Bolívar 03 02 09 04 26 14 58 Santo Tomas 01 03 01 01 09 02 16

SubTotal 1140 Altagracia, Las Oficinas and La Concepcion 09 16 07 09 53 39 133 El Pegon and Santa Clara 37 49 10 19 103 79 297 Los Amarillos 35 48 24 09 77 68 261 Los Bagres 46 43 16 19 68 62 254 Santa Cecilia 25 28 09 11 35 38 146 Las Casitas 43 39 19 17 77 77 272 La Cortada 15 18 04 03 36 30 106 La Emilia Los Tres Palos

05 17 05 02 28 14 71

SubTotal 1540 El Palito 29 36 24 13 63 59 224 Curazao 32 20 11 12 46 45 166 Cambural 11 06 04 01 17 11 50 La Union 14 15 09 04 37 43 122 Casupero 30 26 08 03 44 30 141 Los Bagres 29 54 10 13 65 45 216 Santa Isabel Carret. Nacional

02 06 05 06 19 19 57

SubTotal 976 Total 3656

Economic Activity The predominant activity in the region is agriculture. Farmers cultivate corn, beans, yam, taro, cassava, coffee, vegetables and fruits as guava, passion fruit, papaya, orange and tangerine, which are basically traded at the Coche market in Caracas; there is a small flower production in Las Dolores area. Animal breeding is also exploited: bovine, pork, growing-fattening and laying poultry. More recently, mining activities started when the nickel exploitation in “Loma de Níquel” area was initiated. A small part of the population works in the services sector (school, public clinic, commerce). Even though agriculture is still the activity concentrating the greater number of people, the survey reports that previously the people was more dedicated to agricultural activities and cattle raising and emigrated more in search of better opportunities, while since the mining operations started agriculture has diminished a little and emigration is also less frequent due to the potential to be incorporated to work in the mine. People consider that nowadays there is more employment, and that the cause for this is the positive impact from mine operations, although its capacity to absorb local labor has diminished with regard to the construction phase

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and the operation start up. There is no new employment source in the community and that brings stagnation and progressive impoverishment for its inhabitants.

Health Services In the Parish capital city, there is a Rural Type II Ambulatory Health Center. Additionally, in the rest of the parish there are three other ambulatory health centers functioning: one in San Daniel, depending from the Municipality and two Type I, in Bucarito (attached to the Regional Government) and Las Dolores (attached to the Municipality). The average monthly coverage of the capital city Ambulatory Health Center is around 400 people, and it has a nurse or nurse auxiliary and a regular physician, who also renders services in nearby areas through the rural penetration activities. The Ambulatory Health Center renders services such as general medicine, ophthalmology (every 15 days or monthly), healthy children control, cardiovascular control, respiratory illnesses control, prenatal control, sample taking for laboratory exams, lectures on the importance of health prevention and care and rural penetration. Some time ago, there used to be a dentistry service and some equipment was available, but nowadays no dentist is appointed. It was created in 1952 and functions in the following way: the Regional Government transfers resources to the Health Committee, which is a instance chosen by vote of the Community Assembly; the corresponding document is registered and the Regional Government makes the monthly contributions. The Board of Directors of the Ambulatory Health Center Association has three members who administer contributions and watch for the good operation of the health center. Most frequent diseases are infectious illnesses, dermatitis, intestinal parasitoses of all types, vermicular enterobiasis, ascaris lumbricoide, histoparasitosis, leishmaniasis, onchocerciasis; people say that there is bilharzias, but the physician did not confirm it; some isolated cases of leprosy, a lot of diarrhea and amibiasis in children, pharyngitis, tonsillitis, bronchitis, asthma, allergies. There are many cases of malnutrition, light or in risk area (it was detected at Los Bagres and is beginning in Altagracia). The surveyed people describe the health services quality in the community as regular or deficient due to the lack of supplies and infrastructure, most of all in Type I Ambulatory Health Centers.

Education Services Altagracia de la Montaña has one educational center, Evaristo Gonzalez Palma School, covering Preschool, Basic Education and Diversified High School Education. Within year 2003-2004, Preschool had 61 children, Basic Education had around 240 children and Diversified High School had near 70 youngsters. The school has a total of 37 teachers and was awarded the certificate of educational excellence by MECD. In the rest of the parish, there are 9 schools and a high school in the locality of La Esperanza.

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In San Daniel preschool, children enrolled for year 2003-2004 were 27; 20 in Los Amarillos and 17 in El Pegon. In San Daniel Basic School there are around 170 students; and other schools have from 20 to 50 students. The Evaristo Gonzalez Palma and San Daniel schools are the best ones, yet the La Concepcion school staff works well too, according to surveyed people’s reports. Just as it happens in the case of Tiara, the surveyed people perception about the educational services quality is negative as one goes up in the educational levels. Thus, for the Preschool Level it is between “Excellent” and “Very Good”, for Basic Education it is “Good”, and with relation to the Diversified High School Education the majority qualifies it as “Deficient”.

Other Services In Altagracia de la Montaña Parish there are near 10 children day care multi-homes whose services are qualified as good by most people surveyed. It has a sports field in regular conditions, a place for community meetings –which are usually the Parish Board facilities and the school - a small chapel, a baseball Sports Foundation and several neighbors Associations. In Altagracia, there are no services such as Daily Care Homes, daycare centers, public library, Internet access center, ad hoc spaces for community meetings or any promotion or stimulus regarding cultural events.

Main Community Needs Altagracia de la Montaña Community states several needs regarding basic services, specifies sectors being more affected by these lacks, agencies that should attend them and the nature of requirements to meet them. In fact, this is a community that perceives itself as truly lacking from services, both regarding coverage and quality. Potable water supply service, power supply, interurban transportation and roadways deterioration are Altagracia people major needs. They report with a lot of emphasis the lack of regularity in the power supply service having entire sectors that water does not reach like it should, the transportation limitations that affect especially those who study and/or work outside of the community and the bad shape of the roadways. A synthesis of the information obtained to that respect is shown bellow:

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TABLE Nº 4: NEEDS RELATED TO BASIC SERVICES (ALTAGRACIA)

NATURE OF THE REQUEST NEED

SECTORS AFFECTED

AGENCY Activation Extension Improvement

Potable water supply service

La Concepcion / all sectors in the

summertime. Los Amarillos / San Daniel / Las Oficinas, La Union

and Los Bagres / Bucarito / El Guasimo

MSDS / MARNR Environmental cleaning/ Rural Aqueducts / Municipality / Regional Government

x x x

Fixed Telephone Altagracia Community CANTV / Telcel x

Power supply

Sectors depending on ELECENTRO / La Union / Las Casitas / Los Bagres to El Mijao / Mirasol / El

Palito

ELECENTRO / MLdN through the electric

substation x x

Sewage system Altagracia Community Malariology x

Roadways

Road of El Pegon, San Daniel, Bucarito, El

Cascajo / from La Mata to Tacata / collective and

particular transportation

MLdN / INVITRAMI x x

Garbage Collection

San Daniel, El Pegon, Los Amarillos

Guaicaipuro Municipality

x x

Transportation Las Dolores / Los Bagres Private sector. x x

Public Security issues

Parish entrances, from Tacata, from Aragua

towards Miranda through La Mata / San Daniel /

central highway

Miranda Police x x

As it can be seen, the community reports an extensive range of priority needs with regard to basic services, including some that were not reported by Tiara community, such as fixed telephone, public security and sewage systems. Other community needs more related to social services were also submitted by neighbors; this information was processed according to the sector each need refers to and the relevant specification, as can be seen in the following chart:

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TABLE Nº 5: NEEDS RELATED TO OTHER SERVICES PER SECTOR (ALTAGRACIA)

SECTOR NEED

Performing laboratory tests in the ambulatory health center Frequent ambulance damages

An increase has been noted in allergic rhinitis, nasal flows. The physician cannot affirm that this is brought by the mining company operations. The changing climate, hereditary factors, and dust are contributing factors.

Beliefs in midwives and faith healers are still kept. Many times women give birth at their homes with midwives

The ambulatory health center equipment is very deficient.

More physicians are needed

A Type III Ambulatory Health Center is needed. The present one exists since 1952.

There is a lot of early pregnancy; at school year 2004 closing five girls were pregnant.

A Type I small hospital is need, since people from Paracotos, and Tiara are being attended to and demand has grown.

Medicine supply is insufficient.

HEALTH

Emergencies cannot be attended to properly and must be referred to La Victoria or Los Teques.

Extension and repair of the School (restrooms are damaged, classrooms are humid, blackboards are very damaged, population is too large for such a small

school)

Construction of a new school (the existing one does not admit more repairs and very little has always been invested in its infrastructure)

Supplies of the existing school

Some schools are very remote and should reach at least to ninth grade, because the transportation is not easy and it is difficult for the children to get to

the Evaristo Gonzalez Palma High School, particularly those living in Los Bagres, Las Dolores de Miranda and nearby areas.

EDUCATION

Creation of a public library

To incorporate more local people to MLdN, mainly youngsters EMPLOYMENT Stimulating the creation of agribusiness, bread-making, dressmaking, pastry and

other cooperatives that would expand the opportunities of subsistence for the community

RECREATION

To create a House of the Culture

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MLdN contribution to Community Development Altagracia de la Montaña community acknowledges a number of MLdN contributions to the parish and its people, and they refer the importance to see the company as a development opportunity that can and must be taken advantage of in mutual benefit. A synthesis of the opinion of the surveyed people is shown bellow:

• “It has benefited people and families with employment”

• “It has offered support in school supplies, particularly with the electrical equipment”

• “It donated some shelves (oxidized) to the ambulatory health center”

• “Together with Accion Campesina, it is reconstructing the history of the community”

• “It has helped with the highway maintenance”

• “It pays the salary of a school teacher”

• “It has developed interesting workshops for the community with the Accion Campesina organization”

• “We are talking MLdN into granting some resources for a tank to be placed in the higher section of Las Oficinas, which is going to feed this sector”

• “It helped with the construction of Los Bagres Educational Unit and it pays the school staff, although payment is incomplete since the company does not acknowledges their right to bonuses or benefits (this information comes from the individual in charge of education in the Regional Government)”

• “It placed a Guard Post in La Mata that has contributed to diminish the risk in the area”

• “It set an environmental plants production agreement that helped over thirty-five families” Bellow, you will find the summary table on the Community Profile proposed by SEAT Methodology:

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TABLE B2.1.2. BUILDING THE ALTAGRACIA DE LA MONTAÑA COMMUNITY BASIC PROFILE

GEOGRAPHICAL CONTEXT

Local Settlements

Settlement Name Altagracia de la Montaña

Settlement size (population) 3,.629 inhabitants

Distance from Anglo operation To be determined

Local owners

Owners directly adjacent to the operation / property (number)

Owners (names)

Key activities / types of land use made by these owners

Agriculture and animal breeding. Almost all lands are municipal lands

HISTORICAL CONTEXT

Year when the settlement was established

It began as a farm around year 1792. Formally, Altagracia de la Montaña is a parish segregated from the Parish of Tacata, according to Official Gazette of the State of Miranda dated April 23rd 1992.

History of the settlement in relation to the Anglo operation

The Altagracia de la Montaña community existed before MLdN operations started up.

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Description of Anglo contributions to the settlement development

• It has benefited people and families with employment

• It has offered support in the provision of the school (electrical equipment)

• It donated some shelves to the ambulatory health center

• Together with Accion Campesina, it is reconstructing the history of the community

• It has collaborated in the maintenance of the highway

• It pays the salary of an educator of the school

• It has developed interesting workshops for the community with the Accion Campesina organization

• We are talking MLdN into granting some resources soon for a tank that is going to be placed in the higher part of Las Oficinas.

COMMUNITY CHARACTERISTICS

Gender (%)

The population is distributed almost equitably between men and women: 1,881 (51.8 %) are men and 1,748 (48.2 %) are women

Age (%)

Data not available

Population age structure description

According to census elaborated by the community itself, the structure of age is as follows: - Children: 30.63 % - Adolescents: 12,45 % - Adults: 56.92 %

Main religions

Catholic and Evangelical

Main ethnic groups

There are no prominent ethnic groups in the community

ECONOMIC AND SOCIAL INFRASTRUCTURE

Type Number, coverage, characteristics

Health infrastructure

Rural Type II Ambulatory Health Center (parish capital)

400 people per month

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Education infrastructure

Education Center with preschool, basic and diversified high school education (parish capital). Nine other schools in the rest of the parish.

In the capital city education center, enrollment in Preschool was 61 children, in Basic Education it was around 240 children and in High School Diversified Education near 70 youngsters (school year 2003-2004)

Services

Power supply

Excretions disposal system through septic wells

Water supply service

Garbage collection

Power supply comes from Valles del Tuy; from the grocery store downward, it comes from Las Tejerías and it has the worst quality. There is a plant which is used just in a thirty% and the other seventy% is lost. There is water but it does not reach homes adequately; a work was done and the water supply service is going to be better, it is going to extend supply. In La Union and Los Bagres there is no potable water supply service. There is only one truck for garbage collection in populated centers, but it is not enough

Transportation Infrastructure

Interurban Extremely irregular

LIVELIHOOD

Sector Livelihood

Main economic sectors in the local area

Agriculture

Animal breeding

Mining

Forms to earn a living in the local area

Vegetables and fruits cultivation. Double purpose stockbreeding

Employment in MLdN

Fruits and vegetables trade in the market of Coche and agricultural economy of subsistence. Double purpose and family consumption animal breeding. Direct employment in MLdN or in contractor companies

Average income level Data not available

Main business sectors and employment by sector

Agriculture The majority of the labor force is absorbed by the agricultural

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Stockbreeding

Mining

activity

Estimated employment levels

In the whole MLdN area of influence (Tiara y Altagracia parishes) predominant occupation categories are:

- Permanent employee or worker: 38.2 %

- Freelance worker: 35.1 %

- Hired employee or worker: 11.5 %

Changes in employment in the last five years

Agriculture and animal breeding, as in the past, are the activities in which most of the people in the community is occupied. Nevertheless, since MLdN operation started up, there has been a group of people dedicated to the mining activity since they joined the company as employees and they are a contingent that keeps a high income expectation.

The Collective Imaginary Also in the case of the inhabitants of Altagracia de la Montaña, the survey wanted to include the knowledge of certain ideas, beliefs and appraisals that conform a collective imaginary regarding the company and its operation, which are important as long as they are not only a way to see themselves, but also a way to understand themselves and their relationship with MLdN. In this sense, it would be worth to wonder: What do the people believe? What do they value? How do they feel regarding the company?

• “The mine produces 14 minerals, but in its greater part it produces nickel (55 million tons per year)”

• “We believe that the company does contaminate, but it has not been possible to verify it”

• “The benefits have been greater for Tiara than for Altagracia, and it is that way because of their proximity to the company, although the plant this in Altagracia (in Tiara they have repaired ways, they reconstructed the dispensary, sports fields)”

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• “The company does not pay attention to Altagracia de La Montaña, only to Tiara, because this community confronts them; they have even dared to block the highway”

• “In Tiara and in La Esperanza, they have built ambulatory health centers, but not in Altagracia. La Esperanza also has a field that has been maintained by MLdN”

2.4.3. CHARACTERIZATION OF MINERA LOMA DE NÍQUEL C.A. AREA OF INFLUENCE Both the States and Municipalities where Minera Loma de Níquel C.A. is located were characterized in the previous sections, as well as the Tiara and Altagracia de la Montaña communities being the nearest ones to MLdN operations. Such characterization included demographic data from the census and aspects that had to be reconstructed taking the survey made as a basis, i.e. historical context, geographical context, economic activity, services, needs, impacts ad proposals made to the company. Now we will characterize what we have called the MLdN “Area of influence”, which differs from the geographically and administrative spaces outlined above. The reason to also outline this area of influence relates to the fact that the mine is located in the boundary between two parishes and therefore, both of them –and not each one of them- form its area of influence. This means to substitute the traditional organizational scheme based on states and municipalities with an area perspective allowing formulating integrated policies focused on a determined issue, maximizing resource usage, streaming the social investment in a more appropriate way and developing a comprehensive view towards these communities. The latter required developing estimates and calculus based on the XIII General Population and Housing Census carried out by the National Statistics Institute of the Bolivarian republic of Venezuela, because that census does not provide data spread as to a parish scope level other than population data. In order to outline communities forming this area of influence, the geographical area was distributed as per the following criteria linked to the number of inhabitants: Parish Capital City, populations of 250 people and more (Las Dolores and La Esperanza) and the rest of the parish (populations of less than 250 people). On such basis, we can say that the area of influence includes:

- Capital City of Tiara Parish - Las Dolores - La Esperanza

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- Rest of Tiara Parish: Tiarita, Agua Amarilla, Agua Fría – Las Charas, Buena Vista or La Montaña, Cagua de Las Mercedes, Hacienda El Cacao, El Peñón, Las Mercedes – Los Naranjos.

- Capital City of Altagracia de la Montaña Parish - Rest of Altagracia de la Montana Parish: Los Bagres (La Mata), Hacienda El Carmen, Hacienda

Casupero (La Laguna) – Bella Vista, El Pegón (El Algarrobo), Agua Caliente, Los Araguatos (Los Cocos), Cana Amarga, Finca Cisneros, Fundo El Amparo, La Emilia – Parte Alta, Hacienda La Emilia, Hacienda La Palma and Hacienda Santo Tomas.

GRAPHICAL REPRESENTATION OF THE AREA OF INFLUENCE

Colored circles show:

MLdN location

Tiara (capital)

Altagracia de la Montaña (capital)

Las Dolores

La Esperanza

The statistical summary serving as a basis to build the Profile of Minera Loma de Níquel C.A. Area of Influence is shown below (details can be found in Annex 5):

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CHART Nº 6: MINERA LOMA DE NÍQUEL AREA OF INFLUENCE. STATISTICAL PROFILE

VARIABLE VALUES

Population

6,078 people; 3,222 men (53%) and 2,856 women (46.9%).

Masculinity rate: 1.16.

Dependence rate: 0.82.

Demographic Indicators

Replacement rate: 5.7.

Age Structure

55.62% people are less than 24 years old.

10% people are 60 years old or more.

Educational Level

68.2% people completed primary or basic education, and 8.40% completed high school. 0.36% people are middle technician, 1.03% are high technicians and 3.20% is a university graduate. There are 617 illiterates. The widest educational coverage related to 6 to 14 year old children (93.3%)

The average study years had by the adult population is of 4.50 years.

Population Activities

Economically active population sums up to 3,340 people.

Activity rate: 50.1

Unemployment rate: 11.9

Masculine activity rate: 77.3

Masculine unemployment rate: 12.6

Feminine activity rate: 18.0

Feminine unemployment rate: 8.7

Unemployment rate in Tiara capital city: 13.13

Unemployment rate in Las Dolores: 4.58

Unemployment rate in La Esperanza: 6.83

Unemployment rate in the rest of Tiara: 6.40

Unemployment rate in Altagracia capital city: 3.06

Unemployment rate in the rest of Altagracia: 4.90

Working Population

38.2% people are permanent employees; 35.1% are free lance worker; 11.5% are hired employees or workers; 8.2% are occasional employees or workers.

85% people work in the private sector.

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VARIABLE VALUES

71% people work in companies having 5 employees or less.

Housing

There are 2,251 houses of which 1,510 are occupied. Average people living in such occupied houses are 4.02.

Power supply (homes)

92.4% homes have power supply service.

Water supply service

50.1% houses have water supply service through piping.

Garbage collection service

76.5% homes do not have this service.

Telephone service

93.2% homes do not have this service.

This information about the MLdN area of influence besides the knowledge about community needs and expectations, and MLdN corporate priorities and commitments can be very useful as to direct and focus the company social investment policies and actions. Such information is the main input for the formulation process showing overall policies, and particularly the social policy as output. All the latter in tune with the Good Neighbor corporate principles, the business social responsibility commitments, and stakeholders co-responsibility as to face social issues of unpostponable nature, as they put the country’s development in a compromised situation.

2.5. Overview of Potential Impacts and Possible Causes In order to get an overview of both positive and negative potential impacts related to MLDN operations and gather information about those issues more frequently mentioned by consulted stakeholders, results obtained from the survey are shown below spread as per stakeholders’ group. The purpose is to ensure that the entire spectrum of issues and problems is duly taken into account.

2.5.1. Tiara Community Perspective Focus groups held with Tiara community neighbors and the correspondent questionnaire submitted to community members allowed ranking by issues their perception about impacts from operations. Results obtained were as follows:

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TABLE B3.1. LISTING OF IMPACTS AND CAUSES (TIARA)

ISSUE IMPACTS POSSIBLE CAUSES

Air pollution

The company does not use filters on a permanent basis

Loss of quality in flowers and vegetables crops

Nickel polluting factors. Roses get spotted, the tecoma trees are now scarce, pastures have been damaged thus affecting the

cattle.

Environment

Sectors surrounding the roadway have debris

After the road was repaired, debris was not appropriately

removed. Increase of skin conditions Increase of allergies Increase of respiratory conditions

Health

Potential impact on congenital malformations, sexual impotence and hair loss

Fine dust from the mine. Polluting factors from the operation

Demographic

Changes

Immigration increase

Socioeconomic conditions shown by the work at the mine attract people. This has brought some pressure on health and education services, natural resources (there is less water for human consumption and irrigation) and some changes in community relations People perceive MLdN workers as people with a higher socioeconomic status

Tensions between community members The community shows a division between those who defend the

operation and those who oppose it

Community Relations

Local leadership consolidation or weakening

The defense or confrontation attitude had by local leaders towards the company can be a leadership legitimating factor or not

Reduction of employment options for workers spouses

Potential employees think that their economic situation is well-off and that giving him/her the job would be the same as reducing opportunities for the more needed people

Weakening of agricultural and cattle raising activities

People prefers to try working at the mine for the socioeconomic benefits granted

Recently, agricultural activities have started to be more visible

Loss of the company capacity as to absorb local workers

The mining company has tacitly refused to incorporate high school graduates from Tiara Few training opportunities for local workers in areas which are relevant for the mining company Loss of the company capacity as to absorb more workers Lack of an INCE training center

Few local workers are employed

Lack of an initiative from the mining company as to foster an INCE center installation at the community

Economic Activity

Employment opportunities currently opening

Relate to activities other than agricultural or cattle raising ones. This was quite significant within the construction works phase

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ISSUE IMPACTS POSSIBLE CAUSES Too much traffic through the old road

Sometimes, the excessive traffic brings obstacles to the new roadway Excessive heavy traffic from the company MLdN has failed to comply with commitments made

The old road was damaged

The company does not take care of claims regarding landslides caused by company works

Roadways

More traffic accidents Company standards are not followed by its own management Tourism Internal tourism reduction Rivers have lost their attractiveness due to air and water pollution

The combination of MLdN contributions acknowledged by the community and the perception had about impacts from operations on Tiara community shows an appraisal where positive and negative aspects do live together. This appraisal can be seen in some statements made by people when asked: which is the phrase or image that comes to your mind when you hear Minera Loma de Níquel? They answered as follows: In the case of the Tiara community, a strong community perception can be observed with regard to the company as having failed to help as the Tiara people expected, and that expectations regarding community improvements that arise with operations start up have not been met. Some statements showing such perception would be the following: • “The company fails to comply with agreements reached with the community and people feel deceived.

They must give an immediate response”. • “The mining company made commitments when operations started up and has not met them such as

building a clinic, an educational center up to High Technician level and support for power supply services”.

• “The mining titles have been requested and have not been given to the community”. Here, we should mention that MLdN has to help transportation, education and health services, among others. Particularly, people refers to the support granted to extend and maintain the Ambulatory Health Center, the school built, roadways repair and maintenance carried out, more employment for local workers and lighting in main roadways.

The community reports a complex relationship with company representatives in Tiara, in which communication is difficult and that gets worse with the apparent spacing between meetings and the lack of follow up on agreements and results from specific requests such as the request for help to buy sports gloves, toys, building materials such as sand, concrete, cement, cables, and lamps to

“Minera is future” “Minera is progress” “Minera does pollute” “Minera means a job” “Without minera, the community would have died” “Minera is joy” “Minera does not want to help us” “Minera does not want to make

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repair the town square. Those who took part in the survey stated discomfort, lack of trust, low transparence and clarity and certain fatigue towards a relationship based on terms with which they do not agree, and do not deem as positive for the community. At the same time, an openness to go on discussing could be observed, and a willingness to establish a mutual link being more profitable than the one had up to this date.

Tiara Community Proposals for the Company The survey included an inquiry about Tiara Community proposals for the company in order to enhance positive impacts and minimize negative impacts perceived from operations. Such proposals summary is shown below:

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CHART Nº 7: TIARA COMMUNITY PROPOSALS BY SECTOR

SECTOR

COMMUNITY PROPOSALS FOR THE COMPANY

Carry out a survey to demonstrate the non-polluting nature of company operations and appropriately distribute it.

Environment

Take water samples and show results to the community

Incorporate more community people to the company

Support an INCE center installation in the community

Economic Activity

Relate youngsters training more with company staffing needs/ encourage crafts training

Activate the electrical substation

Basic Services

Jointly request ELECENTRO to install street lighting

Help with the ambulatory health center extension and refurbishing

Help with infrastructure improvements needed by the school

Social Services

Help with the sports field roof and lights

Improve the Las Tejerías – Tiara roadway

Roadways

Improve roadways going through Pao and El Castaño.

Recover meetings frequency and invite everyone, not only the parish board members l

Company-Community Relations

Schedule a meeting with representatives from the national, state and municipal governments, the mining company and the community to clarify commitments, set agreements and responsibilities and follow up on what is agreed

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2.5.2. Altagracia de la Montaña Community Perspective The SEAT methodology provides the B3 Tool and particularly Table B3.1 to give a comprehensive view of issues and potential impacts related to Anglo operations and their causes. Focus groups held with Altagracia de la Montaña community neighbors and the correspondent questionnaire submitted to community members allowed ranking by issues their perception about impacts from the operation. Results obtained were as follows:

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TABLE B3.1. LISTING OF IMPACTS AND CAUSES (ALTAGRACIA)


Impairment in the fruits and vegetables crops quantity and quality

Polluting factors from nickel exploitation. Company security systems are not reliable

Air quality reduction Polluting factors from nickel exploitation.

Environment Reduction of the available water quality and quantity. The stream source has significantly dried

Mining operations need a great amount of water

Respiratory and skin conditions increase

Polluting factors from nickel exploitation.

Health Early pregnancy has increased

Workers from other areas have come to carry out occasional works for the company, but they have no roots

Immigration increase

Mining work socioeconomic conditions are attractive. This has brought pressure on health and education services,

Demographic

Changes Reduction in the emigration process

Hope to get a job in the mine

Failure to comply with expectations regarding job generation

MLdN restrictions to engage local workers. It prefers to engage people from Tiara. There are no new job sources. Youngsters have no opportunities to go on with their education.

Economic Activity Agricultural activities have started to be more visible

MLdN restrictions to engage local workers. There are no new job sources

Road accidents increase Drivers do not follow safety norms Excessive heavy traffic from the company MLdN failure to comply with commitments

Roadways

Damages to the old road Company norms are not followed by its own management

Tourism Internal tourism reduction Rivers have lost their attractiveness due to air and water pollution

More thefts and assaults Public Security Drug abuse has increased

People with other customs have come. This is a floating population

As in the case of Tiara community, the Altagracia de la Montaña people does value MLdN contributions but also report negative impacts on the community life. In this case, negative impacts from operations are as important as benefits the community could have received from MLdN but have not come true. Here we could also gather statements showing such double perception:

“If minera were not there, people would work more in agriculture” “Minera is an opportunity we must use” “Minera does pollute the air and water” “Minera fails to comply with its promises” “Minera is progress” “Minera has made the area to be known; before no one knew Altagracia de la Montaña even existed” “Minera is a job” “Minera is unemployment”

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Most people in Altagracia community thinks that the company has not met expectations arisen at operations start up; and also reports dissatisfaction with the way in which relations between the company and the community have been oriented. Statements were gathered in both senses: With regard to expectations that have not been met:

• “The company asks workers to undergo a great deal or tests just to engage them for a short period, and asks for repetitive tests (e.g. they must undergo a medical examination even when having a certificate valid for one year)”.

• “In Altagracia there are high school graduates that have not been engaged because of the assumed deficient education they have received in Altagracia (each attempt made by high school graduates to join the company finds a new obstacle hindering their engagement), but no one helps them to improve their training”.

• “The Los Bagres sector, which is the nearest to the mine is the one that has received less benefits (it has no ambulatory health center or ambulance); before the mining company helped in medical emergency cases, but it has refused to help in most recent cases”.

• “It has failed to comply with the school to be built after the first year of exploitation (actually, this is true, there are classrooms were teachers give class to three grades). The company says that the Bagres school is ready, but it must be completed, it is too small to service all children from the sector and that was part of the commitment made by the company with the community. They have just built two classrooms”.

• “They talked about building a small store for the company employees and the community. That seemed an interesting project but has not come true”.

• “Roadways maintenance has not been fully carried out”.

• “The hospital construction, maintenance and equipment have not come true”.

• “There was an agreement to produce environmental plants with a community association that benefited about 30 families and was terminated after three years to favor another company with a new agreement, which purchased all plants from the local organization at a price lower than the actual cost, but as it was the only offer, it had to accept it, and enduring that has been considered an offense. This has brought serious economic problems to the people who depended on that production”.

• “In MLdN hires more people from Tiara than from Altagracia, due to the lack of qualification shown by Altagracia people. They always favor Tiara because its people blocks the roadway”.

• “The company promised money to the Santa Isabel community for the power supply service, but the project was stopped and people were mad at that”.

With regard to the company-community relationship:

• “Communities have had conflicts with the company with regard to the budget of promised repairs”.

• “The company argues that the community should ask the Mayor’s Office for the money for some things because taxes paid by the company are for the community welfare”.

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• “When the company was not operating, it had meetings with the community on a monthly basis, but after it started to operate, they have failed to take care of the community on that matter (they are irregular, this year there has been only one). The contact with the company has been lost”.

• “The meeting agenda is set by the company and the neighbor board members and the community cannot take part in that. Many agreements are reached in those meetings but they never come true”.

• “The company holds meetings about projects that never come true”.

• “The community has had no official information about the Mining Titles where company commitments are set forth because MLdN has not furnished them”.

• “The community is not taken into account, and it has submitted projects for its development”. • “Some times the company has held meetings with the neighbors board and they say that

they have no health commitment with t community, only education ones”.

• “We have lost our trust in the company representative”.

• “The company cannot be fully committed with the community due to the lack of organization of the neighbors’ board”.

• “The ideal relationship with the company is not that the mining company has to solve all problems, but it has to take the community into account and fulfill commitments assumed”.

Altagracia de la Montaña Community Proposals for the Company The survey included an inquiry about proposals had by the Altagracia de la Montaña community for the company in order to enhance positive impacts and minimize negative impacts perceived from the operation. Such proposals have been synthesized below:

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CHART Nº 8: ALTAGRACIA COMMUNITY PROPOSALS BY SECTOR

SECTOR COMMUNITY PROPOSALS FOR THE COMPANY

Environment

To carry out a study to show water is not polluted and distribute it. Carry out a study to adequately demonstrate that the operation is harmless for fruits and vegetables cultivations

Demonstrate that the operation does not bring an increase in respiratory and skin conditions

Support agricultural and food projects that could enhance life quality for many families. Complete the medicine retail project and, if necessary, to help training pharmacy assistants (in los Teques there is a school that gives that training).

Honor agreements regarding employed people percentages between Tiara and Altagracia (50% each), which is not being honored.

Economic Activity Help with the Altagracia people training to work in MLdN.

Basic Services Help with the power supply service by starting-up the electrical substation

Complete Los Bagres School construction Help to repair the ambulatory health center and the school

Social Services

Help to build a duly equipped Type III Ambulatory Health Center

Help to repair the road from La Mata up to Altagracia and roadways in general Roadways Repair the road, particularly from La Mata up to Mijao and La Concepción, and also in El

Pegón area.

The company must have a budget to meet promises made to Altagracia de la Montaña, and citizens want to know the amount of that budget and who will be in charge of allotting it.

Give an answer about seven proposals covering community needs that were submitted to the company.

Sign an act for each commitment assumed with the community so that it can not avoid its performance.

The company has to organize a meeting with the governmental entity and the neighbors so that tax money can be used to make necessary repairs or construction works.

Clearly set forth areas in which it can help the community ad the correspondent budget, so that citizens can organize themselves taking that information as a basis

MLdN executives (the general director) should visit the area once in a while because they are not aware of their problems. A meeting with the company director should be scheduled – after knowing the consultants report – in order to know where does he/she stands with regard to some issues and to hear peoples’ needs and proposals

Company-community relations

Develop a team work with the State government and the Parish Board to carry out projects to solve issues and needs existent in the area

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2.5.3. Workers Perspective

Two focus groups were held with MLdN employees and contractors’ employees as part of the survey. Among benefits from working with the company, the workers highlighted:

Economic stability Social security (life insurance, hospital, surgery and maternity insurance, funerary insurance) Scholarships granted Opportunity to work in the same place they live in an activity other than agriculture Knowledge gained Encouragement for ongoing improvement implied by work Relatives involvement through visits to the plant and celebrations on special days

However, they highlight other aspects deemed as negative, such as:

The salary and welfare degree do not match the exposure hazards or the effort needed to perform the job The work day starts too early Workers feel that, in some way, the community makes them responsible – as employees- for

damages assumedly caused by the operation, yet this does not translate into significant tension levels. Some employers limit job opportunities for MLdN workers relatives, to favor other people they

deem as being in a less favorable economic situation. As fundamental needs, workers pointed out:

To have a home of their own Higher frequency in transportation services Extend the medical care timetable and enhance the ambulatory health center coverage and

quality That the roadways system, the power supply service and roadway safety should be enhanced That skilled workers should be trained in the community

Impacts from the operation in accordance with workers are systematized below:

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TABLE B3.1. LISTING OF IMPACTS AND CAUSES (WORKERS)


Community beliefs regarding pollution

Rumors about genetic mutations in crop plants

Lack of information about operation-related activities

Environment

In storage areas, vegetation is not growing anymore Debris brought by operations

Increase in the number of school students Services

Increase in the house rental offer and costs within areas adjacent to the company

Immigration of workers with their families

Immigration of people from other places

Increase in criminal related activities

Lack of organization in the community with regard to security norms

Public Safety

Higher employees exposure to thefts General perception is that workers have a high income

Social security coverage They have life insurance, Hospital, surgery and maternity insurance funerary insurance, medical evaluation when joining the company

Health

Higher awareness on health prevention and care both in workers and their relatives

Training given by the company

Roadways More accidents Roadways damages

Economic help for high school promotions

Improvements in Tiara Ambulatory Health Center

Community Support

Building a ambulatory health center in La Esperanza

Company awareness about the social investment importance

Economic Activity

Backwardness in Tiara Abandonment of agricultural activities and incorporation into the mining activity

Workers state some general perceptions that can be summarized as follows:

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The company must invest in the community as compensation for the impact caused to the environment The company must accept workers with no condition regarding age, gender, and training level

Proposals made by workers to the company include:

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CHART Nº 9: WORKERS PROPOSALS BY SECTOR

SECTOR WORKERS PROPOSALS FOR THE COMPANY

Engage more services in the area Economic Activity Support community companies through loans, even though such are not related to the company but to the area development

Reforest Environment Inform the community about activities to be carried out in the mine

Foster or grant scholarships to high school graduates Community Support Train labor through courses and workshops jointly with the INCE.

2.5.4. Workers’ Relatives Perspective The survey included a Focus Group held with workers’ relatives. For them, benefits from the company include:

Economic stability Social security Source of employment for the area Telcel (mobile telephony) antenna mounting Partial roadways improvement Labor stability Ongoing progress from contact with state of the art technology

Among negative issues they highlight MLdN failure to comply with certain commitments assumed, such as security enhancements, building two classrooms in addition to those already built in Los Bagres School, improving ambulatory health center premises, establish an agreement with the INCE to train youngsters and give preference to engage workers from neighboring communities. On the other hand, they mention the lack of help for workers to purchase a home of their own. Basic needs pointed out by workers’ relatives, both for them and the community, include the following:

Dental health prevention More employment opportunity for local people Basic services quality improvement Roadways improvement, including those in Altagracia de la Montaña

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Building a sewage system Support for trading area products Scholarships granting Benefit of two vacations per year for workers.

At the same time, impacts pointed out include:

TABLE B3.1. LISTING OF IMPACTS AND CAUSES (WORKERS’ RELATIVES)


Public Security Wore are exposed to higher insecurity Perception is that workers have a high income

Respiratory and skin conditions have increased

Dust from operations Health

Early pregnacy has increased Immigration of people from other places

Demographic Changes High immigration Mining operations start-up

Extremely long workday Restrictions to enjoy family time

Workers become exhausted due to the long workday

Family and Intracompany Relations

Few opportunities to get in touch with families and workers from other departments

The company promotes activities only by departments or work areas

Among proposals set forth by workers’ relatives to the company we can mention:

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CHART Nº 10: RELATIVES PROPOSALS BY ISSUE

ISSUE PROPOSALS FOR THE COMPANY

Public Security

Limit working activities during the weekends and holydays due to the risk entailed by moving within times having very low traffic

Economic Activity Comply with the commitment of engaging 60% workers from the area

Foster leisure spaces for workers’ relatives integration (affiliation to clubs)

Avoid scheduling courses on workers’ free days

Schedule courses for relatives in areas benefiting their development

Family and Intracompany Relations

Organize sports groups

Grant scholarships and foster funding to follow post-graduate studies

Make schedules more flexible so that people can also study

Workers’ Career Development

Implement mechanisms to acknowledge workers achievements

Family Support

Grant scholarships to workers’ children, give away toys in Christmas, develop vacation plans, promote sports activities and sponsor outstanding athletes and students, and implement health prevention programs (nutrition and dental care)

2.5.5. Management Perspective

The stakeholders’ survey made also use of answers give by two professionals in MLdN organizational chart who furnished information about standing policies in areas showing a high corporate and community interest and the impact from company operations within various scopes. Their insight about impacts is shown below, besides some clarifying comments enabling to have a comprehensive view of their answers:

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CHART Nº 11: LISTING OF IMPACTS BY ISSUE (MLdN MANAGEMENT)

ISSUE IMPACTS

Demographic Changes Slight increase in the number of inhabitants

Slight increase in the demand for health and education services

Price increase regarding goods and services

Services

Price increase regarding real estate property

Impairment of community relations quality

Increase of community associating levels

Community Relations

Tensions between MLdN workers and the rest of the community

More employment for local workers

Opportunities opened for local suppliers

Local economy activation

The general perception in the community is that employment policies are unfair or discriminatory

Economic Activity

Improvement of life conditions for workers’ families

Roadways construction and maintenance Roadways

Roadways have been damaged

Environment

Conflicts with the community regarding access to natural resources.

Here, we should point out that surveyed do not coincide in considering as an impact the increase shown by demand for local basic services such as water supply, power supply, garbage collection and excrete disposal, the local population resettlement, social infrastructure improvements, the increase in criminal activities or the higher incidence shown by traffic accidents in roadways giving access to MLdN and the neighboring communities. Surveyed managers do not consider as impacts new diseases or health conditions onset, or the improvement in the education coverage and quality, the reduction in natural resources availability and quality, the environmental conditions impairment (noise, landscape affectation, vibration, loss of biodiversity), or the fissure shown by traditional values. Here we must point out that, as environmental impacts, they only mention the reduction in lands availability for trading or livelihood activities and some conflict with the community arisen from the access to natural resources.

With regard to local workers employment, managers point out that the company engagement policy seeks maximizing neighbors’ involvement with no discrimination whatsoever, either for MLdN employees or contractors’ employees, or service providers, and that when proposals are alike, they give preference to community micro-companies. However it seems the community perceives an unfair or discriminatory engagement policy towards a population sector. Even though communities perceive that they are exposed to hazards related to company operations, managers deem that these hazards are not related to the operation, but to collaborating factors such as the

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poverty conditions in which local families usually live, the poor dedication and distribution of State resources to build community infrastructures, to take care of education and health sectors (including potable water supply, sewage system and waste waters treatment), sanitary education and landslides caused by rains. They state that MLdN social investment policy is focused on strengthening such sectors as health, basic education, and education for work, as well as on fostering micro-companies and small companies in neighboring areas. They say that MLdN seeks to supersede an assistance-oriented approach to favor relationships based on sustainable development, prioritizing issues and needs to be covered. With regard to the formalization degree of MLdN social policy, managers think that this is the outcome from a planning process; that social issues to be intervened are clearly defined, and the people to be benefited has also been clearly identified. Likewise they say that social policy has specific goals and objectives that they carry out systematic assessments and have specific allowances to be used for social investment. As for the degree of promotion given by MLdN to community involvement they think that, in fact, the company does promote communication channels towards the community and that areas for improvement relate to community access to decision making channels and their involvement in the assessment of social programs carried out by the company.

2.5.6. Other Stakeholders Perspective

46 questionnaires were given to affected groups (5), interested groups (27) and authorities (14). From these stakeholders, the main function had by 12 of them is to attend and promote community development, 11 are suppliers and/or contractors, 7 are in charge of watching and inspecting mining activities, 6 are from the media, 5 grant licenses and permits, 4 are in charge of social recovery and 1 is engaged in labor training and skill building.

Relationship with the Company Most people surveyed from these groups report that there is a relationship with the company, highlighting instances supporting the community, followed by those having a business relationship (suppliers and contractors). From the 7 surveyed people reporting that they have no relationship with the company, 6 people hold functions related to community support.

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Legend: Ninguna- None Proveedor/contratista – Supplier/contractor Apoyo a la comunidad- Community support Fiscalización operación de la empresa- Inspection of company operations Contraloria Sanitaria/Seguridad- Health comptrollership/security Comunicación Social: Media Afiliación/accionista: Affiliate, shareholder Discusión contrato colectivo: Collective contract discussion Formación mano de obra: Labor training 21 stakeholders stated that their relationship with the company is appropriate and 23 say that is could improve. From the latter, 11 hold functions related to community support and 6 are authorities who grant licenses and permits. Answers showing the highest frequency are from those who think that it would be necessary to have more communications with the company, mainly pertaining to interested groups, both related to the community and groups that have knowledge about the impact. Answers showing the second highest frequency refer to groups considering that the relationship could be improved by the company having a higher involvement with the community.

Legend: Conoc del Impacto: Knowledge about the Impact Socios: Partners

Comunidad: Community Otorgan licencias: Grant licenses

NS/NR: Do not know/did not answer Adecuada: Adequate Podria Mejorarse: Could be improved

Gráfico 1: Relación de los Stakeholders con MLDN

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Chart 2: Type of relationship by Stakholders

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Chart 1: Stakeholders relationship with MLdN

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Legend: Conoc del Impacto: Knowledge about the Impact Socios: Partners Comunidad: Community Otorgan licencias: Grant licenses

Teniendo más contacto con la comunidad: Having more contact with the community Cumpliendo las leyes: Complying with the law Mayor comunicación con las empresas: Having more communication with companies

With regard to communications frequency and effectiveness, 27 stated that it is actually frequent and effective, but 17 deem they are not. From those who answered affirmatively, 15 are from interested groups that have knowledge about the impact and 7 grant licenses and permits. From those who answered negatively, 11 are related to community work. 15 stakeholders state that there is coordination with MLdN, 8 say that it is sporadic, and 4 say that it is not effective; yet 18 did not answer or stated not to know. Most surveyed stakeholders stating that there is coordination are from interested groups that have knowledge about the impact; and those stating that the relationship is sporadic are basically related to community work. Legend: Conoc del Impacto: Knowledge about the Impact Socios: Partners

Comunidad: Community Otorgan licencias: Grant licenses

NS/NR: Do not know/did not answer Si: Yes / No: No

Chart 3: How could the relationship with MLDN be improved

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Gráfico 4: Comunicación efectiva y frecuente por Stakeholder

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Chart 4: Effective Communication by Stakeholder

Interested Groups Authorities

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Concern for Company Operations 29 stakeholders stated to have certain concerns regarding company operations and 17 stated that they had none. Those reporting a higher concern were authorities granting licenses and permits, interested groups that have knowledge on the impact, affected groups and interested groups related to the community. The issue giving raise to more concerns is the environmental pollution (15 stakeholders), whose cause is attributed to fine dust emissions, river beds dryness and the flora and fauna extermination. The second relevant concern refers to the inadequate relationship with the community (7 stakeholders) due to the lack of interest and communication from the company, the lack of knowledge from the community and the polluting nature of operations. Issues regarding roadways and basic public services are ranked as the third concern; and its causes relate to damages caused by operations in current roadways and services and the environmental pollution brought by it. Local workers employment is ranked as the fourth concern. The following chart shows details about concerns and associated causes:

CHART Nº 12: CONCERNS FOR MLdN OPERATIONS BY CAUSES

Causes

Concerns Dust emissions, rivers dryness, flora and fauna extermination

Lack of interest,

communic.

Damage to roadways / services

Lack of knowledge

from Community

Poor planning

Labor Law application

Environmental Pollution 12 2 1 0 0 0

Non employment 0 0 0 0 4 0

Roadways or public services issues

2 0 3 0 0 0

Inadequate relationships with Community

1 3 0 3 0 0

Diseases increase 2 1 0 0 0 0

Lack of knowledge about social programs results and impact

0 1 0 0 0 0

Failure to comply with security norms

1 0 0 0 0 2

Social and economic changes

1 1 0 1 0 0

Other minerals exploitation 0 0 0 0 0 0

Lack of information in the media

0 0 0 0 0 0

Currency exchange control 0 0 0 0 0 0

Political Instability 0 0 0 0 0 0

Total 19 8 4 4 4 2

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Continued… Concerns for MLDN Operations by Causes

Causes

Concerns Governmental

Policies/ instability

Abandon. of

Agriculture

Lack of presence

in the Media

Union pressures

Technical aspects

Accidents

Environmental Pollution 0 0 0 0 0 0

Non employment 0 0 0 0 0 0

Roadways or public services issues

0 0 0 0 0 0

Inadequate relationships with Community

0 0 0 0 0 0

Diseases increase 0 0 0 0 0 0

Lack of knowledge about social programs results and impact

0 0 0 0 0 0

Failure to comply with security norms

0 0 0 1 0 1

Social and economic changes

0 1 0 0 0 0

Other minerals exploitation 0 0 0 0 1 0

Lack of information in the media

0 0 1 0 0 0

Currency exchange control 1 0 0 0 0 0

Political Instability 1 0 0 0 0 0

Total 2 1 1 1 1 1 In addition to mention various concerns and their causes, stakeholders made several proposals to face issues that can be carried out by their own organizations, by MLdN and by the community. In order to address main concerns set forth above, stakeholders propose the following actions:

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CHART Nº 13: PROPOSALS TO ADDRESS STAKEHOLDERS CONCERNS

Concern Stakeholder MLdN Community

Environmental Pollution

More watchfulness, control and respect for the standing legislation, foster community involvement and organization, set linkage mechanisms between the government and the community.

Carry out environmental impact surveys, release information, and seek higher integration with the community

More organization and involvement, and request information from the company

Inadequate relationship with the community

Foster community involvement and organization, facilitate the link between the government and the community, build trust

Seek a higher integration with the community, release and convey the information

More community involvement and organization and higher contact with the company.

Damage to roadways and public services impairment

Link between the government and the community and watch and control compliance with the law.

Restore infrastructure

More community involvement and organization, request information from the company, and set higher contact/meetings with MLdN

Low employment of local workers

Foster community involvement and organization, train youngsters and carry out socio economic assessments.

Carry out activities with the community, release information, develop strategies focused on integration, transparency and local workers employment to restore infrastructure

Labor training, evaluate human resources, higher involvement and organization

In addition, some proposals made foresee other organizations involvement. Among them, we can mention the project funding and performance by the government (national and regional), Corposalud, universities, Consorcio Social Tejerías and Fe y Alegría). The environmental assessments are proposed to the Ministry of Environment (MARNR) and SUMACOP. Roadways repairs should be made, according to stakeholders, by the MARNR and the Ministry of Planning and Development. Details are shown in chart below:

CHART Nº 14: PROPOSALS FOR OTHER ORGANIZATIONS INVOLVEMENT

Proposals

Organizations Project funding or perform.

Environmen-tal

Assessment

Setting Agreemts

Community Org.

Roadway repairs

Guarantee concession

area

Training Improve relations with government

Ministries 1 3 5 1 0 1 0 0 State governments- Mayor’s offices

4 0 1 0 2 0 0 0

Public institutions 2 3 0 0 1 1 2 0 Universities 2 1 0 0 0 0 0 0 Community 0 0 1 3 0 0 0 0 International Agencies

2 0 0 0 0 0 0 2

NGO's 4 1 0 0 0 0 0 0

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With regard to other stakeholders’ perception on major impacts related to Minera Loma de Níquel operations, results can be grouped into three blocks, as per frequency recorded. First block of impacts:

Increase of local people employment (38) Increase in prices for real estate property (31) Increase in the demand for health and education services (29) Increase in community association levels (29) Opportunities opened for local suppliers (29)

Second block of impacts:

Increase in the demand for local services (28) Roadways construction and maintenance (28) Impairment in environmental conditions (28) Social infrastructure enhancement (28)

Third block of impacts:

Increase in the nº of inhabitants (27) Improvement in educational coverage and quality (27)

The following chart shows total spread of frequencies shown by each answer:

CHART Nº 15: IMPACTS REPORTED BY OTHER STAKEHOLDERS

Impact Does not know Impact

Increase in the nº of inhabitants 1 27 Increase in the demand for health and education services 2 29 Increase in the demand for local services 3 28 Impairment in the community relations quality 1 19 Increase of local people employment 1 38 Resettlement of the local people 1 23 Increase in prices for goods and services 2 20 Increase in prices for real estate property 0 31 Increase in community association levels 0 29 New diseases onset 3 19 Improvement in educational coverage and quality 1 27 Social infrastructure enhancement 0 28 Roadways construction and maintenance 0 28 Roadways impairment 0 26 Opportunities opened for local suppliers 1 29 Reduction in natural resources availability and quality 1 21 Impairment of environmental conditions 0 28 Increase in criminal activities 2 18 Fissure of traditional values 2 18 More traffic accidents in the roadways giving access to MLDN 2 17

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When we asked about the image, phrase or word that would better describe the company for the stakeholder, answers obtained show a basically positive appraisal regarding Minera Loma de Níquel. Those having higher weight were “job” (11%), “progress” (9%), and “welfare for the people” (6.5%), followed by “successful project”, “effectiveness”, “excellence”, “peace of mind”, “hope”, “development”, “perfection”, “technology”, “professionalism”, “prosperity”. Negative aspects highlighted were “lack of communication”, “just another company”, “destructible monster”, “the shout of Tiara”.

3. SUMMARY OF ISSUES MENTIONED BY STAKEHOLDERS AND NEEDS IDENTIFICATION

As a synthesis, we show the record of the various issues resulting from the survey in order to give an overview of those issues that were most commonly mentioned and those showing variations.

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TABLE B6.1: SUMMARY OF ISSUES MENTIONED BY STAKEHOLDERS

Other Stakeholders Interested Groups Authorities

Listing of issues mentioned Tiara Community

Altagracia Community Workers Workers’

Relatives MLdN

Managers Affected Groups Knowledge

about impact Partners Community in the Broader Sense

Knowledge about impact

Grant licenses/ permits

Increase of inhabitants x x x x x x x x x Reduction in the emigration process x Increase in the demand for health/education services x x x x x x x

Increase in the demand for local services x x x x x

Impairment of community relations x x x x x x x Life conditions enhancement of workers families x

Increase in local employment x x x x x x x Community perception regarding a discriminatory employment policy x

Low local workers employment x x Local employment increase when thh operation started up x

Restrictions as to enjoy family time x Social security coverage and labor stability x x

Higher awareness regarding health prevention and care x

Population resettlement x x x x x x Increase in prices for goods and services x x x x x x x x

Increase in prices for real estate property x x x x x x x x

Higher community associating levels x x x x x x x New diseases onset x x x x x x x x x

Increase in early pregnancy x x

Education improvement x x x x x x Social infrastructure enhancement x x x x x x x Roadways construction and maintenance x x x x x x x

Roadways impairment x x x x x x x x Opportunities for local suppliers x x x x x x x Reduction in natural resources x x x x x x x

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Other Stakeholders Interested Groups Authorities

Listing of issues mentioned Tiara Community


Relatives MLdN

Managers Affected Groups Knowledge

about impact Partners Community in the Broader Sense

Knowledge about impact

Grant licenses/ permits

Conflicts with the community for the access to natural resources x

Reduction of lands availability for trading or subsistence activities x

Environmental impairment/pollution x x x x x x x x Pollution belief from the community x Increase in criminal rates x x x x x x x x Vulnerability before criminal activities x x Fissure of values x x x x x x More traffic accidents x x x x x x x x x Training x x

Improvements in community income levels x

Tourism activities increase x Tourism activities reduction x x Center for mining development x Agricultural activities become more apparent x x

Weakness of agricultural and animal breeding activities x x

Loss of cultivation quality x x x Tensions between community members x

Note: boxes in blue show the impact deemed as more important by the Stakeholder in the case of communities, workers and workers’ relatives. In the case of “Other

Stakeholders”, blue boxes show issues that were more frequently mentioned.

AS CONCLUSION Using the SEAT Methodology in its first phase has enabled us to have a comprehensive view on those matters deemed as more relevant by the various stakeholders consulted in terms of needs and expectations, as well as of positive and negative impacts from MLdN operation. Some considerations derived from the survey carried out are set forth hereon, in order to give the company an input for social investment and community linkage plans in tune with its Good Corporate Neighbor principles.

With regard to Tiara Community

• The Tiara community reports basic services needs basically related to potable water supply deficit, lack or regularity in the power supply service, roadways damage and limited scope of the home garbage collection and transportation services.

• Needs related to social services do mainly refer to shortages in local Ambulatory Health Centers and

schools infrastructure, staffing, equipment and supplies and few employment opportunities for local workers.

• Among benefits the community acknowledges to have received from MLdN we can highlight the new

roadway built, repairs made to the Ambulatory Health Center and professional fees payment to the physician, the water well and La Mata police module built, repairs made to the sports field, improvements to the Parish Board premises, scholarships granted to study in the INCE and employment opportunities opened for community people.

• As for most relevant negative impacts, consulted stakeholders show a highly critic perspective with

regard to MLdN operations in three particularly sensitive issues: the failure to meet expectations with regard to local workers employment, environmental pollution –the assumed increase of skin and respiratory diseases – and damages caused to the old roadway.

With regard to Altagracia de la Montaña community • As main needs related to basic services, the community identifies the extremely low quality shown by

the power supply service, damages on the old roadway, the poor coverage had by home garbage collection and transportation services and troubles to access potable water sources.

• As for social services, most urging needs refer to the limited medical care available, shortages in health

and school infrastructure, lack or insufficient spaces for leisure and cultural activities and few employment opportunities for the community people, basically for young high school graduates.

• Among benefits the community acknowledges to have received from MLdN we can highlight equipment

donated to the school, payment of one teacher’s salary, the Los Bagres School built and payment of Los Bagres teachers’ salaries, placing a National Guard post in La Mata, workshops held with the Acción Campesina NGO and employment opportunities for the local people, including an agreement - currently terminated - to produce environmental plants that benefited approximately 35 families. Here we should point out that Los Bagres School built is perceived more as a compensation for negative impacts caused at the beginning of the construction works than as a benefit.

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• Negative impacts refer to environmental pollution – which has brought damaging effects on crops, an

increase in respiratory and skin conditions and a reduction in air and water quality – as well as to the increase in early preganacy, damages caused to the old roadway, the relative abandonment of the agricultural and cattle raising activities, and the failure to comply with expectations regarding local workers employment.

With regard to the Area of Influence • Both communities do basically report the same negative impacts. This would favor MLdN design

and implementation of common lines of work thus facilitating investment maximization and better and more successful impacts.

• Communities acknowledge company contributions and in both, although more in the case of

Altagracia de la Montaña than in Tiara, there is a general willingness to build a closer, more transparent, and horizontal relationship, based on a more accurate knowledge about MLdN commitments set forth in Mining Titles and potential to renegotiate initial agreement in accordance with community needs and expectations.

• Proposals to minimize negative impacts from operations relate to:

- Developing studies to demonstrate the non-polluting nature of operations. - Supporting productive projects development such as cooperatives in various areas. - Fostering youngsters training in sectors and jobs related to company activities and other activities

generating human and social capital, and fostering community sustainability over time. - Directly help or develop mediation activities focused on improving water and power supply

services for the community. - Implementing mechanisms to reach a more frequent contact and a better articulation between the

company and the community in its broader sense, and design joint strategies to follow up on existent agreements and commitments.

• The survey shows the relevancy of considering both communities as the area of

influence, because they have very similar socio demographic features, needs and issues; yet without disregarding some specific features or main issues shown by each one of them.

• The area of influence perspective seeks to supersede the traditional political-

administrative and juridical division to favor a comprehensive view to support an integral social investment and linkage with communities focused on balancing people’s needs and expectations with MLdN commitments and corporate policies.

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With regard to Workers

• Benefits reported both by company and contractors’ workers do particularly value the economic stability and social security brought by MLdN operations. Likewise, we can highlight the opportunity to work with a local company, to acquire knowledge, to be in contact with the latest and state of the art technology, the way in which career and personal development are fostered and the support received for their children education.

• On the other hand, workers state lack of satisfaction for the time the work day does start and because the general feeling in the community is that in some way they are responsible for damages brought by operations. Yet the latter does not translate into significant tension. Another aspect that should be pointed out is that contractors’ workers feel that salary and social benefits they are currently receiving are not in accordance with the risk and effort level entailed by their work activities.

• Among fundamental needs stated by workers we can mention a home of their own, enhanced transportation and health services, better roadways, and skilled labor training.

• Most relevant impacts for workers are: common belief and rumors in the communities about the environmental pollution caused by MLdN operations, how the vegetation has been affected in the warehouse areas, the increase in home rental offers and cost, the exposure to criminal activities for being working for MLdN and the social security coverage.

• Proposals made to MLdN by workers with regard to the various issues include: - Environment: reforesting intervened areas and informing communities about operational activities. - Economic Activities: engage more local services, support community companies through loans, even if

such are not related to MLdN activities. - Community Support: fostering or granting scholarships to high school graduates so that they can go on

with their studies, and train skilled labor jointly with the INCE through courses and workshops.

With regard to Workers’ Relatives

• Among benefits acknowledged by workers’ relatives as received from the company we can highlight: the job and economic stability, social security and constant progress potential arising from their contact with state of the art technology.

• Negative aspects include MLdN failure to comply with certain commitments made, such as

enhancing security, building two additional classrooms in Los Bagres School, improving Public

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Clinics premises, enter into an agreement with the INCE to train youngsters and give preference to engage workers from nearby communities. On the other hand they mention the lack of help to purchase a home of their own.

• Among fundamental needs both for workers and communities they pointed out: dental health

prevention, more employment opportunities for local people, quality improvement for social and public services, better roadways (including Altagracia de la Montaña), support for trading local products, scholarships, and the benefit of two vacations per year for workers.

• Most relevant impacts for workers’ relatives are: restrictions to enjoy family time, workers’ higher

exposure to insecurity, the increase shown by respiratory and skin conditions, few opportunities for families and workers from different MLdN departments to get in contact and share.

• Proposals made by workers relatives to MLdN regarding standing issues were:

- Family and intra-company relations: avoid scheduling courses in workers free days, foster leisure

spaces and integration among workers’ relatives (affiliation to clubs), organize sports groups and offer courses for the relatives.

- Workers career development: more incentives such as scholarships or funds to follow studies, more flexible work timetables.

- Economic activity: fulfill the commitment made about engaging 60% workers from the area. - Public security: limit work activities during weekends and holydays, as they entail the need to move

during times having very low traffic. - Family support: scholarships for workers’ children and implement health prevention programs

(nutrition and dental care)

With regard to Other Stakeholders For other stakeholders involved, including governmental officers with responsibilities within the MLdN area of interest, providers, contractors, the mass media, shareholders, unions and professional associations, a positive impact from MLdN operations is the increase in local workers employment and opportunities arisen for local providers, as well as the community associating levels enhancement.

• As negative impacts we can point out the higher prices had by real estate property, the higher

demand for health and education services and the impairment of environmental conditions. • With regard to the environmental pollution, in their turn stakeholders propose watchfulness, control

and compliance with the standing regulation, and the company proposes to carry out environmental impact studies and issue and distribute information on such topic.

• As for community relations, MLdN intends to make more efforts related to community association

and involvement, for the company-community integration and also to develop a mediation and accompaniment work to foster trust.

• With regard to local workers employment, proposals include making socio-economic studies, train

youngsters, assess available human resources and open job opportunities for the area.

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Comparing Issues raised by Stakeholders For communities, the low local workers employment is one of the most relevant impacts brought by

MLdN operations, while on the contrary, the group identified as “Other stakeholders” point out the increase in local workers employment as a positive impact.

As for the environmental pollution issue, all stakeholders report it as an impact except workers, workers’

relatives and managers. Particularly, stakeholders reporting it include the Tiara Community, affected groups (including community individuals) and interested groups that have knowledge about the impact (contractors, suppliers and the mass media). In addition, assumed consequences from the environmental pollution such as new diseases or health conditions and natural resources reduction are reported as impact by most stakeholders. To the latter, communities add to loss of quality shown by their crops.

The price increase shown by goods, services, and real estate properties is reported as an impact by

almost all stakeholders except communities and workers’ relatives. With regard to community associating levels enhancement, stakeholders are spread by two main

sectors: managers and “other stakeholders” report it as an impact, but communities, workers and workers’ relatives do not even record it.

Education improvements are only reported by the group of “other stakeholders”; however, communities,

workers, workers’ relatives and managers are not aware of such. This fact is worth mentioning because this is a corporate social investment item.

Damages suffered by roadways is another topic where most stakeholders are coincident, and it is

particularly highlighted by communities, authorities in charge of granting licenses and permits, and interested groups that have knowledge about the impact.

For authorities, most relevant impacts are the increase in the number of people living in the area, the

higher demand for health and education services, the impairment of community relations, the increase in local workers employment, as well as the price increase shown by goods, services, and real estate property, enhancement in community associating levels, educational improvement, roadways built and their maintenance besides roadways deterioration, opportunities for local providers, crime rate increase, lack of values and road accidents increase.

It seems that authorities, contractors and suppliers are stakeholders better assessing the

impact from MLdN operations, while communities within the area of influence show a more critic view. In their turn, workers show a positive perspective regarding benefits brought by MLdN both for them and for the Tiara and Altagracia de la Montaña communities. At the same time, they record some negative impacts that must be addressed, while their relatives state more negative impacts but do not obviate socioeconomic and work related benefits that must be acknowledged.

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REPORT PHASES 2 AND 3

SOCIOECONOMIC ASSESSMENT OF MINERA LOMA DE NÍQUEL, C.A.

THROUGH THE SOCIOECONOMIC ASSESSMENT TOOLBOX /

SEAT METHODOLOGY

December, 2004

150

Consultant Team

Zaira Berti ÁvilaYonaide Sánchez Ferrer

Clemy Machado de Acedo

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TABLE OF CONTENTS Foreword

4

Phase 2: Identify and Assess Economic and Social Impacts and Share Assessment Results

5

Tool C1: Identifying activities of social and economic impacts

5

Tool C2: Assessing issues raised within the survey process

28

Tool C3: How to compute operations added value

42

Tool C4: Inventory of payments made to the public sector

42

Tool C5: Computing total employment arising from operations

42

Tool C6: Identifying and assessing the current community social investment

43

Tool C7: Guide to evaluate performance related to corporate policies

69

Phase 3: Develop a Managerial Response to Key Issues

100

Tool E1: Developing a Management and Monitoring Plan

100

Tool F: Increasing local procurement and outsourcing to support local business development

133

2005-2007 Social Investment Plan

137

Tool F4: How to build alliances

201

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FOREWORD

This document corresponds to the Phase 2 development, “Identify and Assess Economic and Social Impacts and Share Assessment Results”, and Phase 3, “Develop a Managerial Response to Key Issues” of the Socio Economic Assessment Toolbox (SEAT) Methodology, and comes to complete the process started in Phase 1. Survey on operations impact, the elaboration of communities profile and the exploration with regard to their needs and expectations, done within Phase 1, were a main input to implement further phases. Phase 2 allowed identifying operations activities which bring social and economic impacts, evaluating issues raised by the Staff when making the Survey, compute the added value of operations and make an inventory payments made to the public sector, as well as identifying and assessing the current social investment and evaluate performance against corporate policies and designing a plan to share process results with stakeholders. Phase 3 included designing a plan to manage or give a response to impacts raised within the Survey, to then explore opportunities to encourage local business by developing new suppliers. Results from the whole previous process were fed to the process to prepare the 2005-2007 Social Investment Plan for Minera Loma de Níquel C.A., which includes the human capital development as a transversal perspective or axis incorporated to projects and activities design. Finally, we set a guide to build alliances between the company and potential partners around common outlines and goals. Activities correspondent to the Operations Closing Plan shall be developed in the future, upon Minera Loma de Níquel decision. Gerencia Social Consultores Asociados /G-Social would like to state its acknowledgment to Minera Loma de Níquel C.A. for the opportunity to go on with the SEAT methodology implementation, to Mr. Ricardo Pérez for the quality and devotion in his institutional counterpart role; Mr. Juan Carlos Cuenca, the Public Affairs Committee and the Logistics Management representatives who patiently dedicated their time to give us the information needed by this methodology, and to Lic. Liliana Bruno for her ongoing cooperation.

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PHASE 2: “IDENTIFY AND ASSESS ECONOMIC AND SOCIAL IMPACTS AND SHARE ASSESSMENTS RESULTS”

The SEAT methodology C1 Tool, called “Identifying activities bringing social and economic impacts”, is focused on obtaining the broadest possible view on operations activities causing both positive and negative impacts through the incorporation of the Staff to the analysis. The Staff presence complements the various Stakeholders’ perspective raised within the survey (SEAT Phase 1), as the latter are not always familiar with technical processes that can generate impacts. Information gathered through this tool was directly fed to the Social Investment Plan made within Phase 3 and the Community Commitment Plan, particularly with regard to aspects needing to audit economic and social impacts, from operations in their area of influence. Tables C1.1 “Identifying Activities and Related Change Mechanisms” and C1.2. “Identifying Priority Issues/Impacts” are shown hereon. The first table explores operation related activities, aspects of these operations that might bring changes to the local context, and identifies those changes as well as the resulting economic and social impacts, to whom is impacted and which managerial measures have been undertaken to handle them. In addition, the table records if impacts were mentioned as such within the survey in order to set a first link between the Staff perception and the Stakeholders perception to finally determine whether they are significant or not, taking the following criteria as a basis:

• Assure or endanger the license to operate • Generate a direct financial benefit or a cost to operations • Improve or stress relationships with neighbors • Improve or stress relationships with regulatory agencies and NGOs • Improve or undermine the business unit perception within the Anglo American group • Improve or go against operations • Improve or damage corporate reputation • Complies or fails to comply with Good Neighbor principles • Improves or impairs shareholders’ return

These criteria were used to analyze Table C1.2 and results found were recorded both in that table and in table C1.1, as per methodology requirements.

60 activities were recorded, both of a permanent and punctual nature, besides others being which are under preparation and for which no impacts were recorded, as they have not been developed yet. Here we must point out that all activities developed since operations start up were taken into account, including the plant construction works phase, thus enabling systematizing activities and impacts from operations in accordance with technical information arrangement criteria.

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TABLE CE.1. IDENTIFYING ACTIVITIES AND RELATED CHANGE MECHANISMS

Activities Aspect of activity

causing the change in local

context

Changes in immediate

environment

Economic or social impact resulting from

the change Who is

impacted?

Does an effective managerial

measure exist? Which is it?

Was the impact raised as an issue in the Survey?

Yes / No

Is it a significant

impact? Yes / No

Reforestation campaign

Sowing of 20,000 trees. Plans are to sow 30000 to 4000 c/a.

Increase of the vegetation

Increase of labor activity through micro-businesses and schools of Altagracia de la Montaña. Oxygen emission and habitat improvement. Original species recovery.

Head of the Mesia River/ Altagracia Parish

Maintenance and development of the forest. Sowing of species of commercial and landscaping value as a contribution to the sustainable development of the influence area.

Yes Yes

Construction of deep water well

Well of 100 mt./10 liters p/s.

Availability of water in Tiara

Potential extension of the supply to other areas

Tiara, Capital city and near towns

Effective construction Yes Yes

Recovery of Rafael Rangel epidemiological camp

Construction and endowment of a new camp

Follow up on the bubonic plague control.

Establishment of the epidemiological control base

Aragua and Miranda

Annual contribution to MSDS payment of salaries and staff benefits

Yes Yes

Remodeling of Tiara public health unit

Physical recovery. Payment of the doctor

Service start up Improvement of quality and coverage and epidemic control.

Capital Tiara and near communities.

Activity carried out Yes Yes

155



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Construction of La Esperanza health unit

Nurses, maintenance and operation payment

Health service activation

Improvement of quality and coverage and epidemic control.

La Esperanza and near towns

Annual contribution to CORPOSALUD for payment of salaries and benefits. Direct contribution to maintenance and operation

Yes Yes

Los Bagres School Construction (Extension)

Edification construction

Education service activation

Improvement of coverage and quality of education. Improvement of the sector's power supply.

Community Los Bagres

Annual payment to Miranda Gov. for salaries and benefits. Direct contribution to maintenance and operation Construction will continue up to 9th. Grade.

Yes Yes

Recovery of Las Mercedes Cagua School

Infrastructure repairs

Improvement of social infrastructure

Improvement of education's physical conditions

Cagua of Las Mercedes Activity carried out No Yes

MLdN - Tiara Road maintenance

Road mending works and gutters, gabions maintenance.

Improvement in roads system

Accidents decrease, easier transportation / products commercialization

Tiara and part of Altagracia

Recruiting of community micro-businesses

Yes Yes

Road 002 Altagracia - La Esperanza recovery

Road mending works and gutters, gabions maintenance.

Improvement in the roads system


Tiara and Altagracia

Activity carried out through local contractor

Yes Yes

156



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Construction and maintenance new road Autopista Regional del Centro - MLdN

Construction 19 Km. road

Incorporation of new road to the national highway net


Tiara, Altagracia, Villa de Cura and Tácata.

80% local recruiting on the part of the contractor. Negotiating agreement with INVITRAMI so that it assumes maintenance.

Yes Yes

Recruiting of assistants and degree candidates

Recruiting of 64 assistants of other areas p / a.

Possibility of enrollment in the company if there are vacancies and they show appropriate performance.

Support to technicians' formation in geology and mining.

Students of universities and IUT of the country.

Report to the MEM and participation in Mining Engineering School's Council, UCV.

No

Offer of mineral donation to the UCV Pending for Answer No

Offer of metal sale to Casa de la Moneda Pending for Answer No

Technology supply Offer to the MEM of officials visits to Anglo's operations

Pending for Answer No

Support to the State for minerals evaluation

Offer to the MEM of training activities Pending for Answer No

157



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Contribution for booms checkup (to mark the concessions boundaries)

Economic contribution to the MEM

References system preservation

Preservation of relationships with the owners

Owners of the surroundings.

Timely contribution to MEM. The activity will continue in the future.

No Yes

Cooperation with mining entities of social character (activity to be carried out)

Pending activity No

Food Stamps (Cesta tickets) distribution

Substitution of grocery store's administration by food stamps (cesta tickets) distribution.

Foods purchase contribution

Improvement of workers and their families' life quality

Workers and their families

Collective contract execution No Yes

Exploitation tax payment Payment of 6% instead of the statutory 3%

Compliance with statutory obligations

It is not known

Tesorería Nacional. The region is not receiving resources.

Petition to MEM to continue paying current 6 % in taxes.

No Yes

La Mata / Aragua police module

Cession in commodatum and guard post remodeling.

More police presence

Improvement of public security


Agreement for patrols: maintenance, foods stamps (cesta tickets) to officials, daily foods, telecommunication equipment donation

Yes Yes

158



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Contribution to Dividendo Voluntario para la Comunidad

Contribution that company and workers make for investment in sanitary and educational infrastructure

None

Canalization of workers' interest in social collaboration. Strengthening of the DVC fund for investments. Sanitary and educational infrastructure improvement.

DVC and beneficiaries organizations. Workers.

Agreement with the DVC. Yes Yes

Uniforms manufacture cooperative promotion

To facilitate cooperatives organization and registration, training and financing obtaining

Existence of new cooperatives. Large shed donation and installation.

Generation of productive employment. Basis for sustainable development. Improvement in labor training.

Community of Altagracia. It was first offered to Tiara without success.

Preparing purchase contracts with beneficiaries

Yes Yes

Qualified labor certification program with INCE

Contractors employees are evaluated and certified by the INCE

Formal recognition of workers' qualification.

Better life quality and employment level improvement

Workers and their families Informal agreement Yes Yes

Micro-entrepreneurs training

Encouragement to micro-businesses organization

Existence of new cooperatives.

Generation of productive employment. Labor training.

Community of Altagracia. Informal agreement Yes Yes

Remodeling of Tiara's Parish Board Physical recovery. Infrastructure

improvement

Appropriate spaces for community organization and educational activities.

Community of Tiara Activity carried out Yes Yes

159



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Tires donation and ambulances repair

Ambulance physical recovery

Health equipment Improvement

Health coverage and quality improvement

Tiara and Altagracia Activity carried out Yes Yes

Electric substation donation to CADAFE

Existence of electricity potential

Potential extension of the service

Potential use of the service in Tiara and Altagracia


Negotiations before CADAFE Yes Yes

Foods baskets donation in Christmas Food distribution

Improving community perception about the operation

Contribution to the family well-being in Christmas time

Tiara, Altagracia and Las Tejerias

Annual activity Yes Yes

Sport courts remodeling Recovery works Infrastructure improvement

Improvement of conditions for sport practice. Criminal activities prevention.

Tiara and La Esperanza Activity carried out Yes Yes

High School's sport court maintenance Maintenance works

School infrastructure improvement

Students and workers' sport practice conditions improvement

La Victoria Activity carried out No

Vecindad Minera Magazine issue Periodic printing

Divulging community interest issues

Better information of the communities

Tiara and Altagracia Recurrent activity Yes Yes

Donation of waste material sales product

Economic contribution

Punctual economic improvement

None Tiara and Altagracia Activity carried out No

160



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Air conditioning equipment donation to Infocentro

Equipment endowment

Infrastructure improvement

Improvement of conditions for information surveys and technological dexterities development

Las Tejerias Activity carried out No Yes

Equipment and educational materials donation to High School Altagracia

Equipment endowment

Endowment improvement

Education quality improvement Altagracia Activity carried out Yes Yes

Computers donation to official entities

Equipment endowment


Work technological conditions improvement MARN Activity carried out No Yes

Support to Tiara's high school students graduation act

Economic support Graduation act realization support

Approach to the educational community organization

Tiara students Activity carried out No Yes

Support to High School students' social work

Donation of materials


Strengthening of social work Tiara Activity carried out No Yes

Donation of cleaning and educational material and of foods

Distribution of materials and foods


Education quality improvement


Activity carried out No Yes

Realization of environmental education courses

Dictation of workshops

Participants of workshops with training in environmental education

Recent program. Potential improvement of environment quality

People from Tiara and Altagracia

Courses coordination with MARN No Yes

161



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Recruiting of local labor

Creation of cooperatives and other employment mechanisms

Increase of people employed locally

Employment increase, family income Improvement, migratory process control

Labor of Tiara, Altagracia and Las Tejerias

Agreement with contractors to favor staff from the area in recruiting

Yes Yes

Metal-mechanic area suppliers development

Production and development of metal-mechanic parts

Production to smaller price and same quality than imported parts

Employment opportunities, technology development; model company in Aragua State

Companies within the area of influence

Support in parts design and purchase No Yes

Collaboration with ASOINCO Annual Convention

Main sponsor, economic contribution and stand placement.

Participation in event Positioning of MLdN Las Tejerias Activity carried out No Yes

Local staff preferential recruiting for INCE training

Identification of youngsters

Training of youngsters

Contribute to the professional qualification of youngsters


Politics of human resources MLdN Yes Yes

Preferential recruiting of labor of the area for non qualified activities

Identification and recruiting

Employment of youngsters of the area

Local employment increase and life quality improvement


MLdN human resources policies Yes Yes

CONACUID

Negotiations before CONACUID for implementation. To incorporate in social investment plan

No

162



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Sport activities for workers

Investment of 15 million p/a for activities

Sport practice increase

Workers' life quality and health improvement Workers Benefit additional to

established No Yes

Contribution to nurseries for workers' children

Investment established by law.

Children's access to initial education

Families and children's life quality improvement

Workers and their families LOT execution Yes Yes

Scholarships for workers and their children, school supplies and toys

Investment established in collective contract

Access to education and school endowment improvement

Life quality and education improvement


Collective contract execution Yes Yes

Subsidy to refectory Investment established in collective contract

Access to appropriate feeding

Life quality improvement Workers Collective contract execution Yes Yes

Vacations bonus, savings bank, profits

Investment established in collective contract

Access to socioeconomic benefits

Life quality improvement Workers and their families

Collective contract execution Yes Yes

Training annual plan Plan design and execution

Training and development

Professionalization of human resources and operation quality Improvement

Workers MLdN human resources development policy

Yes Yes

Water dams and treatment plant construction and operation

Infrastructure construction and start up

Water flow control, sowing of fish

Constant water supply, water quality improvement, fauna preservation.

The area of influence

Environmental care measures No Yes

Training on early childbearing and HIV / AIDS

Workshops Information levels improvement

Better handling of sexual and reproductive health

5th year students, Altagracia and Las Tejerias

NGO recruiting negotiation (Acción Solidaria)

No

163



context


environment


the change Who is

impacted?




Yes / No

Is it a significant

impact? Yes / No

Realization of a biodiversity study

To detect typical autochthonous fauna or flora and conservation proposals

Detection of species Environment preservation

Flora and fauna from the area of influence

Recruiting of NGO No Yes

Payment of statutory taxes

Mandatory taxes payment Payment evidence

Preservation of relationships with regulatory entities

Fisco Nacional Compliance with obligations No Yes

Parafiscal contributions (payroll)

Payment of obligations Payment evidence

Preservation of workers' labor and social conditions

Workers Compliance with obligations No Yes

Community projects evaluation workshops through Acción Campesina

Workshops design and execution

Opening of community training channel

Community empowerment around problems and solutions

Altagracia and San Daniel Recruiting of NGO Yes Yes

Environmental variables monitoring

Variables air, water, noise and soils.

More information about the operation

To identify if the operation is causing damage and to take correctives

The area of influence

Activity is carried out more frequently and rigorously than demanded

No Yes

International assistants program

Support to universities that offer careers in geology and mines area

Presence of foreign internships

Training and experiences exchange

Students from Holland and Brazil

MLdN training policies No Yes

Staff remuneration Payment of salaries above the average

Purchasing power rise

Rise of satisfaction and life quality levels


MLdN human resources policies Yes Yes

164

TABLE C 1.2: IDENTIFYING PRIORITY ISSUES/IMPACTS

Assure / endanger

license

Direct financial benefit / cost to

operations

Improve/ stress relationships

with neighbors


with regulatory agencies and

NGOs

Improve/undermine business unit

perception in the Anglo group

Improve/ go against

operations

Improve/ damage

corporate reputation

Comply/ do not comply

with Good Neighbor principles

Improve / decrease

stakeholders return

List of impacts identified

Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No

ACTIVITIES/IMPACTS IDENTIFIED BY THE STAFF

Recruiting internship assistants and degree candidates

Cooperation in training geology and mining technicians. x x x x x x x x x

Contribution for booms checkup (to mark concessions boundaries)

Preserving relationships with owners by respecting their properties limits.

x x x x x x x x x

Distribution of Food Stamps ("cesta tickets)" to workers

Improvement of workers and their families quality of life. x x x x x x x x x

Exploitation tax payment

Compliance with statutory obligations x x x x x x x x x

165

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No La Victoria high school sport court maintenance

Improvement of sport practice conditions for students and workers

x x x x x x x x x

Vecindad Minera Magazine issue

Diffusion of issues having interest for the community x x x x x x x x x

Donation of air conditioned equipment to Infocentro Las Tejerías

Improvement of conditions for information and technological skill building development

x x x x x x x x x

Environmental Education Courses

Enhanced knowledge about environmental regulations x x x x x x x x x

Cooperation for the graduation act of Tiara High school

Approach to the educational community organization x x x x x x x x x

166

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return



Punctual donation of cleaning, school and food supplies

Improvement of equipment for school activities x x x x x x x x x

Suppliers development in the metal-mechanical area

Opening opportunities for jobs, family income improvement, migratory process reduction

x x x x x x x x x

International apprentices program

Encourage university students in geology and mining areas at an international level

x x x x x x x x x

Environmental variable monitoring

Identify potential damages from operations and include corrective measures

x x x x x x x x x

Biodiversity survey Environmental preservation x x x x x x x x x

167

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Support to Tiara students’ social work

Strengthen community social work x x x x x x x x x

Las Mercedes Cagua school recovery

Improvement of physical conditions for education x x x x x x x x x

IMPACTS IDENTIFIED BY STAKEHOLDERS BY AREA

Demographic changes Inhabitants increase x x x x x x x x x Inhabitants resettlement x x x x x x x x x Health and Education Increase in demand for services x x x x x x x x x

New diseases onset x x x x x x x x x Early childbearing increase x x x x x x x x x

Higher awareness for health prevention and care x x x x x x x x x

Community Impairment of community relationships x x x x x x x x x

168

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Increase in community organizations x x x x x x x x x

Traditional values fissure x x x x x x x x x

Tension between community members x x x x x x x x x Economic activity/employment Perception in the community of discriminatory employment policy

x x x x x x x x x

Low local labor employment x x x x x x x x x Local employment increase at operations start up x x x x x x x x x

Opportunities for local suppliers x x x x x x x x x

Improvement in community income x x x x x x x x x Tourist activity increase x x x x x x x x x Tourist activity reduction x x x x x x x x x Creating a mining development center x x x x x x x x x

Agricultural activity recent rise x x x x x x x x x

169

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Weakened agricultural activity occupation x x x x x x x x x

Time in family enjoyment restrictions x x x x x x x x x

Social security coverage / labor stability x x x x x x x x x

Infrastructure and services capacity and quality

Increase in demand for local services x x x x x x x x x

Road accidents increase x x x x x x x x x Roads construction and maintenance x x x x x x x x x

Roads deterioration x x x x x x x x x

Goods and services prices increase x x x x x x x x x

Properties price increase x x x x x x x x x Environment Natural resources decrease x x x x x x x x x Conflicts with community for access to natural resources x x x x x x x x x

170

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return



Decrease of lands available for commercial activities /subsistence

x x x x x x x x x

Environment deterioration / pollution x x x x x x x x x

Commnunity belief about pollution x x x x x x x x x

Loss of crops quality x x x x x x x x x Crime and disorder

Delinquency increase x x x x x x x x x

Workers' vulnerability to criminal activity x x x x x x x x x

IMPACTS IDENTIFIED BY STAKEHOLDERS AND THE STAFF

Reforestation Campaign Labor activity and revenues increase. Creation of plant nurseries and sowing through Altagracia community micro-businesses and schools. Oxygen improvement and species recovery

x x x x x x x x x

Building of a water well in Tiara

171

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return



More availability of water and possible use by other areas, if they were connected to net of the Tiara Parish

x x x x x x x x x

Recovery of the Rafael Rangel Epidemiological Camp

Establishment of the epidemiological control base for Aragua and Miranda

x x x x x x x x x

Remodeling of Tiara public health unit

Improvement of health quality and coverage and epidemiological control.

x x x x x x x x x

Construction of La Esperanza health module


x x x x x x x x x

Building of Los Bagres School

Improvement in education coverage and quality. Improvement of power supply of the whole sector

x x x x x x x x x

172

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Plant - Tiara road maintenance

Decrease of accidents, greater easiness for transportation of agricultural and poultry products

x x x x x x x x x

Recovery of the local 002 way between Altagracia and La Esperanza

Decrease of accidents, greater easiness for transportation for agricultural and poultry products

x x x x x x x x x

Construction and maintenance of the new way from the CRH to the plant

Decrease of accidents, greater easiness for transportation for agricultural and poultry products

x x x x x x x x x

La Mata Police Module

Improvement of public security x x x x x x x x x Contribution to the Dividendo Voluntario para la Comunidad

173

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return



Channeling workers' social collaboration interest. Strengthening the DVC fund for investments. Improvement in the communities health and educational infrastructure

x x x x x x x x x

Promotion of cooperative to manufacture uniforms

Productive employment generation. Establishment of basis for sustainable development by means of products sales to other organizations. Improvement in local labor training.

x x x x x x x x x

Certifying Program for qualified labor with INCE

Improvement of life quality and employment level x x x x x x x x x

Training of micro-entrepreneurs

Productive Job Generation. Labor training. x x x x x x x x x

Tiara Parish Board Remodeling

174

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Availability of appropriate places for community organization and educational activities

x x x x x x x x x

Donation of tires and ambulance repair

Improvement in health coverage and quality x x x x x x x x x

Donation of the electrical substation to CADAFE

Potential use of the service in Tiara and Altagracia x x x x x x x x x

Donation of food baskets in Christmas

Contribution to family well-being in Christmas time x x x x x x x x x

Sports fields remodeling

Improvement of sport practice conditions in Tiara and La Esperanza. Prevention of criminal activities

x x x x x x x x x

Donation of equipment and educational supplies to Altagracia High School

175

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return


Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Improvement of educational endowment and quality x x x x x x x x x

Donation of de-incorporated computers to MARN

Technological equipment improvement x x x x x x x x x

Colaboration with the Tiara High school graduation act

Approach to the educational community organization x x x x x x x x x

Local labor employment

Opening of opportunities for employment, family income increase and reduction of the migratory process

x x x x x x x x x

Project evaluation workshops

Issues identification and options analysis by the community.

x x x x x x x x x

Payment of socioeconomic benefits

Improvement in workers and their families life conditions x x x x x x x x x

176

Assure / endanger

license


operations


with neighbors



NGOs



Improve/ go against

operations

Improve/ damage




Improve / decrease

stakeholders return



Compliance with liabilities set forth in the LOT(Labor Law)

Company adjustment to liabilities and life improvement for workers and their families

x x x x x x x x

Compliance with the collective contract and additional benefits

Improvement in workers and their families life conditions and MLdN positioning as a highly competitive company

x x x x x x x x x

177

The C2 Tool “Assessing Issues raised within the Survey” is aimed at evaluating the significance of the varies issues for the specific Stakeholders, relate issues raised by SH to aspects of MLdN operations, list who have been impacted by such issues and identify whether any managerial measure has been undertaken for each issue and which are these measures. Table C2.1 “Summary of Survey Results” is shown below. This table was very useful to determine, from the Staff standpoint, if the issues/impacts mentioned by SH are actually attributable to any operations aspect. As for impacts recorded by SH not acknowledged as true by the Staff, as “environmental pollution”, for instance, reported managerial measures are actions carried out by operations as to prevent or mitigate its potential negative impact, or minimize or eliminate such negative perception from SH. In order to submit an adequate analysis and due to the size, this table was divided by two: C2.1 A and C2.1 B. The firsts one analyzes the issue significance from a SH perception as per the following criteria:

A: It is not easy to solve B: Prevent an active action against operations C: Has the potential to cause a rupture in relationships with operations D: Is causing a direct impact on life quality or livelihood levels E: Prevent emigration from operations F. Has the potential to cause a conflict between local SH G. Is causing high personal stress and anxiety levels

Operations aspects that could be bringing issues/impacts mentioned by SH are analyzed in Table C2.1 B, also defining whether such impact is significant, who has been impacted, if there is an effective managerial measure, and which is such measure.

178

TABLE C2.1 A: SURVEY RESULTS SUMMARY Issues Significance for Stakeholder type

Other Stakeholders

Interested Groups Authorities Subjects raised by SH Tiara Community


families MLdN

Managers Affected Groups Impact is

known PartnersCommunity in a broad

sense Impact is

known License granting

Demographic changes Population increase D D D D D D D D D

Emigration process decrease D

Population resettlement BD BD BD BD BD BD Health and Education Local labor training D D

Increase in local services demand D D D D D

Appearance of new illnesses CF CF CF CF CF CF CF CF CF Early child bearing increase D D

Education improvement BD BD BD BD BD BD

Greater awareness in health prevention and care DE

Community Deterioration of community relationships CF CF CF CF CF CF CF

Increase in forms of community organization BD BD BD BD BD BD BD

Breaking of traditional values F F F F F F

Tension between community members CF

Workers and their families life conditions improvement DE

Economic activity / employment Local employment increase BDE BDE BDE BDE BDE BDE BDE

179

Issues Significance for Stakeholder type

Other Stakeholders



families MLdN



sense Impact is


Perception of community about discriminatory employment policy ACF

Little employment of local labor ACF ACF

Local employment increase at the beginning of the operation BDE BDE

Opportunities for local suppliers BDE BDE BDE BDE BDE BDE BDE

Community income improvement D

Tourist activity increase D

Tourist activity decrease C C

Recent agricultural activity rise D D

Weakening of agricultural activity occupation ACD ACD

Restrictions to time in family enjoyment ADG

Coverage in social security and labor stability BDE BDE


Social infrastructure improvement BD BD BD BD BD BD BD

Road accidents increase CF CF CF CF CF CF CF CF CF

Roads construction and maintenance BDE BDE BDE BDE BDE BDE BDE

180

Issues Significance for Stakeholder type

Other Stakeholders



families MLdN



sense Impact is


Roads deterioration CD CD CD CD CD CD CD CD

Increase in goods and services prices ACG ACG ACG ACG ACG ACG ACG ACG

Increase in property prices ACG ACG ACG ACG ACG ACG ACG ACG

Environment

Natural resources decrease D D D D D D D

Conflicts with community for natural resources access C

Decrease of land availability for commercial and subsistence activities

C

Environment deterioration / pollution CDF CDF CDF CDF CDF CDF CDF CDF

Belief of pollution on the part of the community G

Loss of crops quality CD CD CDG

Crime and disorder Delinquency increase AD ADG AD AD AD AD AD AD

Workers vulnerability for criminal activities ADG ADG

181

TABLE C 2.1 B: SURVEY RESULTS SUMMARY

Subjects risen by SH Aspect of the operation causing the impact

Is the impact significant?

Yes / No Who is being

impacted? Is there an effective

managerial measure? Yes / No

Describe the managerial measure

Demographic changes

Population increase

Construction and assembly of new equipment and infrastructure works

Yes Tiara, Altagracia Yes

Agreement with contractors to favor employment of staff from the community and to settle down in other areas the foreign staff hired and not to affect the service demands

Emigration process decrease Creation of cooperatives and other employment mechanisms

Yes Communities of Altagracia, Tiara and Las Tejerías

Yes Agreement with contractors to preferably hire staff from the area

Population resettlement Beginning of the construction Yes

Pisatarios7 established in concession areas / Altagracia

Yes Compensation / support for resettlement

Health and Education

Encouragement to micro-business organization. Yes Altagracia Yes Informal agreement.


Yes Altagracia and Tiara Yes MLdN Human Resources policy Local labor training

Uniforms confection cooperative promotion Yes Altagracia Yes Purchase contract with beneficiaries

7 TN: Pisatario – individual that develops agricultural or cattle raising activities in other people’s lands and pays in kind for such usage (Source: The Venezuelan National Agrarian Institute (IAN)

182







Increase in local services demand

Workers living in other areas; economic activity generated by the company

Yes Altagracia, Tiara, Las Tejerías, La Victoria No

Appearance of new illnesses

Operation start up increases population, proneness to illness caused by the activity in sensitive people

Yes Influence area Yes

Medical evaluation plan agreed with MSDS, direct workers and contractors' pre employment, periodical and egress evaluations. Statistics incorporated to official State reports. Epidemiological camp activation. Tiara public clinic recovery and La Esperanza public clinic construction.

Early child bearing increase Operation start up increases foreigner population

Yes Altagracia No

Donation of equipment, educational and cleaning material and food

Yes Students from Altagracia, Tiara and Las Tejerías

No

Education improvement Los Bagres School Construction Yes

Educational community / Los Bagres-Altagracia Sector

Yes

Annual payment to Miranda Gov. for salaries and benefits. Direct contribution to maintenance and operation. Classrooms construction will continue up to 9th grade.

Greater awareness in health prevention and care

Company policies and procedures regarding the subject / compliance with the law

Yes Direct and contractors' workers Yes

Informative campaigns, medical service, periodical bulletins distribution, medical care plan, administration follow up by MSDS.

Community

Deterioration of community relationships

Staff recruiting, environmental emissions, relationship with the community policy (contrary to donations)

Yes Tiara and Altagracia, Las Tejerías Yes

Agreement with municipal authorities, unions, communities and authorities for recruiting local labor / periodic meetings with communities / Vecindad Minera

183







Increase in community organization forms Activities start up Yes

Tiara and Altagracia and the rest of the influence area

Yes

Workshops with NGOs to stimulate the organization and canalization of employment applications through Parochial Boards and Neighbors Asoc., incentive to creation of cooperatives for sustainable development projects

Breaking of traditional values Activities start up Yes Tiara and Altagracia Yes

Information on operations and on measures to be taken, respecting the population agricultural vocation and their values / preference for the use of natural and human resources characteristic of the area / local labor certification / support to cooperatives

Tension among community members

Community perception about the polluting character of operations and status differences between MLdN workers and the rest of the population

Yes Tiara and Altagracia Yes Information about operations and widely convoking the community for meetings

Workers and their families life conditions improvement

Food stamps (Cesta Tickets) distribution Contribution to workers' children nurseries / scholarships. Vacations bonus, savings bank, profits

Yes Workers and their families Yes Compliance with collective contract, LOT

and additional benefits

184







Economic activity / employment

Sowing of 20,000 trees. It is intended to sow 30,000 to 4000 c/a through micro-businesses

Yes Altagracia Yes

Maintenance and development of the forest. Sowing of species of commercial and landscaping value and like a contribution to the influence area sustainable development.

Uniforms confection cooperative promotion Yes Altagracia Yes Purchase contracts with beneficiaries

Encouraging the conformation of micro-businesses.

Yes Altagracia Yes Informal agreement.

Creation of cooperatives and other employment mechanisms

Yes Altagracia, Tiara and Las Tejerías Yes Agreement with contractors to preferably

hire staff from the area

Manufacturing and development of imported parts (metal-mechanic area suppliers)

Yes Companies in the influence area Yes Support in the design and purchase of

parts

Local employment increase


Yes Altagracia and Tiara Yes MLdN Human Resources policy

Community perception of a discriminatory employment policy

Staff recruiting, environmental emissions, relationship with the community policy (contrary to donations)

Yes Tiara, Altagracia and Las Tejerías Yes

MLdN policy of favoring recruiting local labor and services in neighboring communities through authorities, Parochial Boards and unions.

185







Little employment of local labor High technology operation Yes Tiara, Altagracia and

Las Tejerías Yes

To train staff and to certify the qualification of local labor together with INCE. Contractual scholarships for workers. Preference is given to neighbors as INCE assistants and apprentices

Local employment increase at the beginning of operations

Low company staff turnover; high demand during construction

Yes Tiara, Altagracia and Las Tejerías Yes

MLdN policy of favoring recruiting local labor and services in neighboring communities.

Opportunities for local suppliers Operation start up Yes Area of influence / the

region Yes

Company policies, principles of the Good Citizen, preference for local supplier, suppliers' ranking according to their headquarters municipality

Community income improvement

Operation start up, Company socioeconomic package

Yes Area of influence / the region Yes

Salaries and benefits periodical surveys in the region and per sector to maintain competitive wages.

Tourist activity increase Operation start up, construction of new access rout

Yes Tiara and Altagracia No

Tourist activity decrease Operation start up and supposed pollution due to industry features

Yes Tiara and Altagracia No

186







Recent agricultural activity rise

Low Company staff rotation and operation stabilization

Yes Tiara and Altagracia Yes

Company policy regarding the agricultural vocation of the communities, incentive to create tree nurseries and cooperatives and to sustainable development

Weakening of agricultural activity occupation

Operation start up and attractive socioeconomic package

Yes Tiara and Altagracia Yes

Attempt of purchase products of the area, reforestation campaigns, encouragement to the organization of rural producers

Restrictions to time in family enjoyment

Over time and training courses realization aside from the normal workday

Yes Workers and their families Yes

Compliance with the Norma SA 8000 that regulates work conditions and internal control policies

Coverage in social security and labor stability

Company Human Resources policy and compliance with the law

Yes Workers and their families Yes

Company procedures, collective contract, benefits superior to the obligations, emphasis in execution of labor legal obligations on the part of the contractors


Remodeling of Tiara's Parochial Board Yes Tiara No Activity carried out

Construction of deep water well Yes Tiara capital and near

towns No Activity carried out

Social infrastructure improvement

Recovery of Rafael Rangel epidemiological camp

Yes Aragua and Miranda Yes Annual contribution to MSDS for payment of salaries and benefits of staff.

187







Remodeling of Tiara's public health unit Yes Tiara capital and near

communities. Yes Doctors' salary and benefits payment

Electric substation donation to CADAFE Yes Tiara and Altagracia Yes Negotiations for the service use on the

part of the community

Sport courts remodeling Yes Communities of Tiara capital and La Esperanza

No Activity carried out

High School's sport court maintenance Yes

Students and MLdN workers residing in La Victoria

No Activity carried out

Road accidents increase Utilization of local road 002 during the construction phase

Yes Tiara and Altagracia Yes Road recovery when concluding the plant's construction

Road MLdN - Tiara maintenance (road mending works, gutters, gabions maintenance)

Yes Tiara and part of Altagracia Yes Contracting of micro-businesses of the

community

Road 002 Altagracia - La Esperanza recovery (road mending works, gutters, gabions maintenance)

Yes Tiara and Altagracia Yes Maintenance through contractor of the area Roads construction and

maintenance

Construction and maintenance new road Autopista Regional del Centro - MLdN

Yes Tiara, Altagracia, Villa de Cura and Tácata. Yes

80% local recruiting on the part of the contractor. In negotiation, agreement with INVITRAMI so that it assumes maintenance.

Roads deterioration Utilization of local road 002 during the construction phase

Yes Tiara and Altagracia Yes Road recovery when concluding the plant's construction

188







Increase in goods and services prices

Operation start up and economic activity energizing

Yes Tiara, Altagracia, Las Tejerías and La Victoria

Yes Cesta tickets distribution

Increase in property prices Operation start up and economic activity energizing

Yes Tiara, Altagracia, Las Tejerías and La Victoria

No

Environment

Natural resources decrease

Operation start up; intervention of 10% of the concession's area (650 Has.)

Yes Tiara, Altagracia and Tácata Yes

MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN; submitting reports to MARN, Anglo, and World Bank.

Conflicts with community for natural resources access

Operation start up; intervention of 10% of the concession's area (650 Has.)

Yes Tiara, Altagracia and Tácata Yes

MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN; submitting reports to MARN, Anglo, and World Bank, periodic meeting with the community

Decrease of land availability for commercial and subsistence activities

Construction and operation start up Yes Pisatarios in the plant

construction area Yes Compensation and support for resettlement

189







Environment deterioration / pollution

Mine construction and exploitation Yes Areas intervened and

influence area Yes

MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN; submitting reports to MARN, Anglo, and World Bank.

Belief of pollution on the part of the community

Mine construction and exploitation Yes Tiara and Altagracia Yes

Reports in regional press, wide convoking and periodic meetings with the community for information on operations, realization of biodiversity study, environmental supervision and follow up plan

Loss of crops quality Mine construction and exploitation Yes Tiara and Altagracia Yes

Reports in regional press, wide convoking and periodic meetings with the community for information on operations, realization of study on biodiversity and effects of the nickel dust on vegetation development; environmental supervision and follow up plan

Crime and disorder

Delinquency increase Increase of foreigner staff during plant construction Yes Influence area Yes

Cession in commodatum of premises guard post remodeling. Agreement for patrol car maintenance, delivery of cesta tickets to officials, daily food service, and donation of telecommunications equipment.

Workers vulnerability in front of criminal activities

Socioeconomic package offered to workers Yes

Workers from Tiara, Altagracia, Las Tejerías and La Victoria.

Yes Payroll deposit in bank account, staff transport service in routes near to their residences

190

The C3 Tool “How to compute Operations Added Value” (also referred to as gross added value) is the measure of the business contribution to the economy. This information is quite useful to report an Anglo American key corporate performance indicator

OPERATIONS ADDED VALUE - USD 2003 YTD 2004 Outlook 2004 Budget 2004

Operating Benefits

55,411,697.87 115,969,102.09 143,179,797.85 91,721,685.00

Staff Costs 12,996,178.01 11,835,356.13

17,244,224.70 14,580,311.00

Depreciation and Amortization

19,172,456.31 15,791,440.43 19,183,988.30 19,832,723.00

Added Value 87,580,332.19 143,595,898.65

179,608,010.85 126,134,719.00

Note: Operating benefits before interests and taxes, excluding benefits for subsidiaries or assets transfer

The C4 Tool “Inventory of payments made to the public sector” is aimed at helping identifying total company contribution to public sector earnings. It was partly developed as answer to the Extractive Industries Transparence Initiative (EITI) and the Global Report Initiative (GRI), as a way to increase transparency about payments and income had by the extractive sector in countries being highly dependent from such resources.

TAXES AND OTHER PAYMENTS TO THE PUBLIC SECTOR

2004 STATEMENTS

TOTAL Bs. TOTAL USD (*)

Income Tax – Suppliers 1,679,883,253,676.73 874,939,194.62 Withheld VAT –Suppliers 6,786,105,357.17 3,534,429.87 VAT Paid 673,865,600.73 350,971.67 Exploitation Tax 930,421,543.64 484,594.55 Special Advantages 1,552,614,844.36 808,653.56 Tax on Bank Debits (I.D.B.) 1,112,754,185.87 579,559.47 TOTALES 4,269,656,174.60 2,223,779.26

(*) Currency Exchange Rate 1,920 USD

The C5 Tool “Computing Total Employment arising from Operations” includes direct jobs generated by the company, indirect jobs in the region (workers engaged for the operation and indirect jobs through suppliers and/or sub-contracts), jobs generation in the region from community social investment activities, including local business development and jobs promoted in local communities by direct or indirect sales, employees and local services. 8

8 The information correspondent to Tables C5.1 “Computing Indirect Jobs” and C5.2 “How to Compute Anglo contribution taking the Community Social Investment as a basis” is pending for inclusion by MLdN.

191

The C6 Tool “Identifying and Assessing the Current Community Social Investment” is aimed at identifying the entire range of community social investment provided by operations up to this date and furnish a checklist to evaluate the effectiveness and relevance of such investment. This evaluation shall enable the company Staff to identify up to which extent the current social investment can be improved and how to add value to beneficiaries and operations. The Table C6.1 “Summary of the Current Community Social Investment Activities” shows a simple summary of the various community social investment types as per beneficiaries’ category. In some cases, the calculus for the number of beneficiaries and costs regarding some activities are still pending from MLdN.

192

TABLE C6.1. SUMMARY OF THE CURRENT COMMUNITY SOCIAL INVESTMENT ACTIVITIES (YEAR 2004)

BENEFICIARIES

COMMUNITY SOCIAL INVESTMENT OPERATION ACTIVITY DESCRIPTION

APPROXIMATE COST (US $ p/a)

OTHER CONTRIBUTIONS

RESPONSIBLE WITHIN THE OPERATION Who are they How many

EMPLOYEES

Parafiscal contributions (IVSS, LPH, INCE) Payment of obligations

654,391

Ricardo Pérez and

Ramón Sandoval Workers

Social benefits (refectories, nurseries, toys, supplies, scholarship granting for workers and workers' children, life and accident insurance, HCM and funeral expenses, individual contract benefits, etc.)

Payment of obligations 1,687,204 Ricardo Pérez and

Ramón Sandoval Workers and their families

Medical service Operation and service rendering expenses Luis Espinoza,

José García Workers

Equipment and accessories to preserve workers' health

Investment in purchase of equipment and accessories Luis Espinoza Workers

Enrollment, annual and termination medical examinations

Payment of examinations Luis Espinoza Workers

Transport time Payment of obligations Ricardo Pérez Workers B

enef

its w

ith a

djus

tmen

t to

lega

l obl

igat

ions

Condition and work environment monitoring

Follow up and control of variables associated to preservation of worker's health

Luis Espinoza Workers

Works in overtime, extra hours Payment of obligations 621,370

Ricardo Pérez, Ramón Sandoval Workers

193

BENEFICIARIES



OTHER CONTRIBUTIONS


Bonus (night bonus, trip’s time bonus, weekly rest, temporary substitutions, incentive)

Payment of obligations 1,319,997 Ricardo Pérez, Ramón Sandoval Workers

Compensations for dismissal and notice, antiquity benefit and interests

Payment of obligations 845,211 Ricardo Pérez, Ramón Sandoval Workers

Staff transport service Transfer of personal from their residence places to MLdN and vice versa

863,023 Ricardo Pérez, Ramón Sandoval Workers

Contributions to union organization Payment of obligations

33,915


Parties for workers, children's party, year-end party

Organization of activities and payment of corresponding expenses

42,610 Ricardo Pérez, Ramón Sandoval


Medical attendance plan Payment of obligations


Sport activities for workers Organization of activities and payment of corresponding expenses

17,511


Training bonus Organization of activities and payment of corresponding expenses

Ricardo Pérez Workers

194

BENEFICIARIES



OTHER CONTRIBUTIONS


Ben

efits

with

adj

ustm

ent t

o th

e M

inin

g Ti

tles

Food Stamps (Cesta Tickets) (supply) Purchase and distribution 421,500 Ricardo Pérez and

Ramón Sandoval Workers and their families

International assistants program

Support to universities that offer careers in geology and mining area and organize apprenticeships

Ricardo Pérez Workers

Annual training plan Plans design and execution

Ricardo Pérez and Ramón Sandoval Workers

Ben

efits

add

ition

al to

lega

l obl

igat

ions

Remunerations (salaries, vacations) Payment of obligations 3,989,418 Ricardo Pérez and

Ramón Sandoval Workers

195

HIV scanning voluntary programs Payment of examinations


Voluntary program to eliminate tobacco, alcohol and drugs addictions



Safe

ty a

nd in

dust

rial h

ygie

ne m

easu

res

dedi

cate

d to

wor

kers

pr

otec

tion

High Blood pressure program



Dev

elop

men

t of i

nter

com

mun

ity

know

ledg

e

Payroll voluntary contribution to DVC

Payroll discount to workers and company's contributions payments

22,575

Ricardo Pérez and

Juan Carlos Cuenca

Workers, DVC, children, youngsters and elders beneficiaries of projects supported by the DVC

196

PARTNERS, CLIENTS AND SUPPLIERS

Supp

ort f

or e

xpan

sion

of s

uppl

iers

' bus

ines

s th

roug

h tr

aini

ng o

r inv

estm

ent

Uniforms manufacture cooperative promotion


Juan Carlos Cuenca

Small producers from Altagracia de la Montaña

NEIGHBORS / COMMUNITY IN GENERAL

Voluntary activities

Program to certify contractors qualified labor with INCE

People employed by contractors are evaluated and certified by INCE

Juan Carlos Cuenca Contractors workers

Educ

atio

n, tr

aini

ng a

nd e

leva

tion

of

know

ledg

e

Uniforms confection cooperative promotion

Fostering cooperatives organization and registry, training and financing obtaining

Juan Carlos Cuenca Small producers from Tiara

197

Support to Tiara high school students graduation act

Economic contribution payment

Ricardo Pérez and Juan Carlos Cuenca

Tiara's High School educational community

Support to High School students' social work

Materials donation


Tiara's High School educational community

Vecindad Minera Magazine issue

Periodic printing



Realization of environmental education courses

Courses design and delivery


Communities of Tiara and Altagracia

Legal obligations Assistants and degree candidates recruiting

Recruiting 64 assistants from other areas p / a. Juan Carlos Cuenca University students

Los Bagres School extension Premise construction Juan Carlos Cuenca

Los Bagres School educational community

Payment of educational salaries and benefits Los Bagres School

Payment of obligations Juan Carlos CuencaLos Bagres School educational community

Donation of cleaning, educational, and food supplies

Purchase and distribution of supplies and foods

Juan Carlos Cuenca Educational communities

Collaboration with ASOINCO Annual Convention

Economic contribution and stand placement.

Juan Carlos Cuenca Entrepreneurs from Las Tejerías

Don

atio

ns

Tires donation and ambulances repair

Purchase of tires and physical recovery of ambulance

Juan Carlos Cuenca

Communities of Tiara and Altagracia

198

Affiliation to DVC Payment of membership contribution

Ricardo Pérez DVC


Maintenance new road Autopista Regional del Centro - MLdN

Road mending works, gutters, gabions maintenance.

Juan Carlos Cuenca, Marco Almeida and Regis de Padua

Tiara, Altagracia de la Montana, MLdN

Maintenance of local road 002




Statutory obligations

Tran

spor

t inf

rast

ruct

ure

Maintenance of road MLdN - Tiara




Voluntary activities Loan without interests to drugstore for medications supply

Loan payment

Juan Carlos Cuenca Community of Tiara


Hea

lth

Recovery of Rafael Rangel epidemiological camp and payment of staff salaries and benefits

Construction and endowment of new camp

Luis Espinoza People from Aragua and Miranda

199

Contribution to Tiara, Altagracia and La Esperanza public health units

Payment of Tiara and La Esperanza public clinic staff. Donation of public health units to Altagracia

Juan Carlos Cuenca

Tiara, La Esperanza and Altagracia


Biodiversity study

Survey to detect typical autochthonous fauna or flora and to elaborate conservation proposals

Luis Espinoza

Tiara, Altagracia de La Montana and MLdN

Study dust effects on vegetation development Study

Luis Espinoza




Follow up and control of air, water, noise and soils variables.

Luis Espinoza


Envi

ronm

enta

l pre

serv

atio

n

Reforestation campaign Sowing of trees

Luis Espinoza



Serv

ices

Water dams and treatment plant operation

Payment of operation and maintenance expenses

Luis Espinoza, Wilmer Pérez, Luis Carlino

Tácata and MLdN

200

Sowing of fish (cachama and coporo)

Purchase of species and activity organization and monitoring

Luis Espinoza Neighbors from the region

Tiara sport field maintenance Execution of maintenance

Juan Carlos Cuenca Community of

Tiara Construction of large shed for social activities in Altagracia

Project design and construction works execution

Juan Carlos Cuenca Community of

Altagracia


Construction of deep water well

Construction of well of 100 mts / 10 liters p/s

Luis Espinoza Juan Carlos Cuenca Community of Tiara

La Mata police module / Aragua

Cession in commodatum and guard post remodeling.

Juan Carlos Cuenca Tiara, Altagracia

and MLdN


Recruiting of NGO for workshops design and execution

Ricardo Pérez, Juan Carlos Cuenca

Altagracia and Tiara

Con

stru

ctio

n of

cap

aciti

es th

roug

h tr

aini

ng /

tuto

rshi

ps /

wor

k ex

perie

nces


Staff identification and recruiting

Juan Carlos Cuenca Tiara and Altagracia

201

Local labor employment Creation of cooperatives and other employment mechanisms

Juan Carlos Cuenca Tiara and Altagracia

Spon

sors

hip

for b

usin

ess

deve

lopm

ent

Affiliation to Cámara Minera, Asociación de Industriales Mineros y Metalúrgicos, VENAMCHAM, Cámara Británica, Cámara Regional de Aragua, CONAPRI.

Payment of membership contributions

Ricardo Pérez Gremial organizations and chambers

202

Table C6.2 provides a list of key issues and topics to consider when evaluating the relevance and effectiveness of the community social investment made by operations. This evaluation is carried out around three topics: Aligning projects with Anglo corporate policies and principles, in accordance with the following criteria:

• Improve capacities of communities where operations are involved • Support community projects showing local people priorities, sustainability and cost effectiveness • Build long term and mutually beneficial relationships with business partners, contactors and

suppliers based on fair and ethical practices • Contribute to the social and economic welfare of communities related to operations including

developing local business and granting opportunities to workers with disadvantages

The process followed for the identification, planning and implementation of the community social investment was based on the following criteria:

• Social investment initiatives are based on community needs identification • Community needs were identified through a survey and consultation process with key SH • Efforts were made in order to include a representative sample of people living in the community • Efforts were made to maximize SH involvement in the Social Investment planning and

implementation The nature and extension of benefits related to this investment, in accordance with the following criteria:

• SI initiatives benefit community people showing disadvantages • SI initiatives help to reduce needs and issues identified in the community • SI initiatives foster rather more autonomy than dependence • Abilities obtained through SI are transferable to sectors external to Anglo • SI initiatives bring social, economic, or environmental benefits to some areas without negatively

impacting other areas • Were potential negative impacts/hazards from initiatives considered before selecting and

implementing them? Have they been addressed? • Initiatives can go on when Anglo funding does terminate • Initiatives shall respect community cultural sensitivity and life style

This analysis was quite useful as input for the decision making process regarding activities to include in the 2005-2007 Social Investment Plan, under the light of those issues and criteria proposed by the methodology. In some cases, to apply criteria proposed to certain activities was not relevant. Such cases were recorded as NC (Non-Correspondent).

203

TABLE C6.2. NOTES TO ANALYZE THE COMMUNITY SOCIAL INVESTMENT RELEVANCY AND EFFECTIVENESS

Are projects aligned with the Anglo Corporation policies and principles?

ACTIVITIES Improve communities capacities

Support community projects showing local priorities, sustainability and cost effectiveness

Build long term and mutual beneficial relationships with business partners, contractors and suppliers based on fair and ethical practices

Contribute to the integral well-being of communities / develop local business / opportunities for workers with disadvantages

Contribute to take care of community health priorities

Reforestation campaign Yes Yes Yes Yes Yes

Construction of deep water well No Yes No Yes Yes

Recovery of Rafael Rangel epidemiological camp No Yes Yes Yes Yes

Remodeling Tiara public clinic No Yes Yes Yes Yes Construction of La Esperanza health module No Yes Yes Yes Yes

Los Bagres School Construction Yes Yes Yes Yes No Recovery of Las Mercedes Cagua School Yes Yes Yes Yes No

MLdN - Tiara Road maintenance No Yes Yes Yes No Road 002 Altagracia - La Esperanza recovery No Yes Yes Yes No

Main access road construction No Yes Yes Yes No New road maintenance No Yes Yes Yes No Recruiting assistants and degree candidates Yes No Yes Yes No

Offer of mineral donation to the UCV No No No No No

Offer of metal sale to Casa de la Moneda No No No No No

204







Technology supply No No No No No Support to the State for minerals evaluation No No No No No

Contribution for booms checkup (to mark the boundaries of the concessions) No No No No No

Cooperation with mining entities of social character (activity to be carried out) No Yes Yes Yes No

Cesta tickets distribution No No No No No Exploitation tax payment No No No Yes No La Mata / Aragua police module No Yes Yes Yes No Contribution to Dividendo Voluntario para la Comunidad No Yes No Yes Yes

Uniforms manufacturing cooperative promotion Yes Yes Yes Yes No

Qualified labor certification program with INCE Yes Yes Yes Yes No

Micro-entrepreneurs training Yes Yes Yes Yes No

Remodeling of Tiara Parish Board Yes Yes Yes Yes No

Air conditioning equipment donation to Infocentro Yes Yes Yes Yes No

Tires donation and ambulances repair No No No Yes Yes

205







Electric substation donation to CADAFE No Yes Yes Yes No

Foods baskets donation in Christmas No No No Yes No

Sport courts remodeling No No Yes Yes No

High School sport court maintenance No No Yes Yes No

Vecindad Minera Magazine issue Yes Yes Yes Yes Yes

Donation of waste material sales product Yes No Yes Yes No

Equipment and educational materials donation to High School Yes No Yes Yes No

Computers donation to official entities No No Yes No No

Support to Tiara high school students graduation act No No No No No

Support to High School students' social work Yes Yes No Yes No

Donation of cleaning and educational material and of foods Yes Yes No No No

Environmental education courses Yes Yes Yes Yes No

Metal-mechanic area suppliers development Yes No Yes Yes No

206







Collaboration with ASOINCO Annual Convention Yes No Yes Yes No

Local staff preferential recruiting for INCE training Yes No Yes Yes No

Preferential recruiting of area labor for non qualified activities Yes No Yes Yes No

CONACUID (Activity to be carried out) Yes Yes Yes Yes Yes

Sport activities for workers No No Yes Yes No

Contribution to nurseries for workers' children Yes No Yes Yes No

Scholarships for workers and their children, school supplies and toys Yes No Yes Yes No

Subsidy to refectory No No Yes Yes Yes

Vacations bonus, savings bank, profits No No Yes Yes No

Training annual plan Yes No Yes Yes No Water dams and treatment plant construction and operation No Yes Yes Yes Yes

Training on early childbearing and HIV / AIDS Yes Yes Yes Yes Yes

Biodiversity survey No No Yes No No

Payment of statutory taxes No No No Yes No

207







Parafiscal contributions (payroll) No No No Yes Yes

Community projects evaluation workshops through Acción Campesina Yes Yes Yes Yes Yes

Environmental variables monitoring No No Yes Yes Yes International assistants program Yes Yes Yes Yes No Staff remuneration No No Yes Yes No

Have key Stakeholders been involved in the Community Social Investment identification, planning and implementation?

ACTIVITIES The initiatives of Social Investment are based on the community' needs identification

Community needs were identified through survey with key SH

Efforts were made to include a representative sample of the community residents

Efforts were made to maximize the SH involvement in Social Investment planning and implementation

Reforestation campaign Yes Yes Yes Yes

Construction of deep water well Yes Yes Yes Yes

Recovery of Rafael Rangel epidemiological camp Yes Yes No

Yes Remodeling of Tiara public clinic Yes Yes Yes Yes Construction of La Esperanza health module Yes Yes Yes Yes

208






Los Bagres School Construction Yes Yes Yes Yes Recovery of Las Mercedes Cagua School Yes Yes Yes Yes

MLdN - Tiara Road maintenance Yes Yes No Yes Road 002 Altagracia - La Esperanza recovery Yes Yes Yes Yes

Main access road construction Yes Yes No Yes New road maintenance No Yes Yes Yes Recruiting assistants and degree candidates No Yes Yes Yes

Offer of mineral donation to the UCV No No No Yes

Offer of metal sale to Casa de la Moneda No No No Yes

Technology supply No Yes No Yes Support to the State for minerals evaluation No Yes No Yes

Contribution for booms checkup (to mark the boundaries of the concessions) No Yes No Yes

Cooperation with mining entities of social character (activity to be carried out) Yes Yes No Yes

Cesta tickets distribution No Yes No Yes Exploitation tax payment No Yes No Yes La Mata / Aragua police module Yes Yes Yes Yes

209






Contribution to Dividendo Voluntario para la Comunidad Yes Yes NC

Yes Uniforms manufacturing cooperative promotion Yes Yes Yes

Yes Qualified labor certification program with INCE Yes Yes Yes

Yes Micro-entrepreneurs training Yes Yes Yes Yes

Remodeling of Tiara Parish Board Yes Yes Yes Yes

Air conditioning equipment donation to Infocentro Yes Yes Yes

Yes

Tires donation and ambulances repair Yes Yes Yes Yes

Electric substation donation to CADAFE Yes Yes No Yes

Foods baskets donation in Christmas Yes Yes Yes Yes

Sport courts remodeling Yes Yes Yes Yes

High School sport court maintenance Yes Yes Yes Yes

Vecindad Minera Magazine issue Yes No Yes Yes

Donation of waste material sales product No No Yes Yes

Equipment and educational materials donation to High School Yes Yes Yes Yes

210






Computers donation to official entities No Yes No No

Support to Tiara high school students graduation act Yes Yes Yes Yes

Support to High School students' social work Yes Yes Yes Yes

Donation of cleaning and educational material and of foods Yes Yes Yes Yes

Realization of environmental education courses Yes Yes Yes Yes

Metal-mechanic area suppliers development No Yes No Yes

Collaboration with ASOINCO Annual Convention No Yes Yes Yes

Local staff preferential recruiting for INCE training Yes Yes Yes Yes

Preferential recruiting of labor of the area for non qualified activities Yes Yes Yes Yes

CONACUID (Activity to be carried out) Yes Yes Yes Yes

Sport activities for workers Yes Yes Yes Yes

Contribution to nurseries for workers' children Yes Yes Yes Yes

Scholarships for workers and their children, school supplies and toys Yes Yes Yes Yes

211






Subsidy to refectory Yes Yes Yes Yes

Vacations bonus, savings bank, profits No Yes Yes Yes

Training annual plan Yes Yes Yes No Water dams and treatment plant construction and operation Yes Yes Yes Yes

Training on early childbearing and HIV / AIDS Yes Yes Yes Yes

Biodiversity survey No No No Yes

Payment of statutory taxes No NC NC NC

Parafiscal contributions (payroll) NC NC NC Yes

Community projects evaluation workshops through Acción Campesina Yes Yes Yes Yes

Environmental variables monitoring Yes Yes No Yes International assistants program Yes Yes Yes Yes Staff remuneration Yes Yes Yes Yes

212

Do projects contribute with sustainable benefits to the community in the long term?

ACTIVITIES

SI initiatives benefit community people with disadvantages

SI initiatives contribute to diminish needs and problems identified in the community

SI initiatives stimulate autonomy more than dependence

The abilities obtained through SI are transferable to sectors external to Anglo

SI initiatives contribute social, economic or environmental benefits or in some areas without impacting others negatively

Were initiatives negative potential impacts / risks considered before their selection and implementation? Have they been taken care of?

Initiatives can continue after Anglo's financing concludes

They respect the community initiatives, cultural sensibility and life style

Reforestation campaign No Yes Yes Yes Yes Yes Yes Yes

Construction of deep water well Yes Yes No No Yes Yes Yes Yes

Recovery of Rafael Rangel epidemiological camp No Yes No Yes Yes Yes Yes Yes

Remodeling of Tiara public clinic No Yes No Yes Yes Yes Yes Yes Construction of La Esperanza health module No Yes No Yes Yes Yes Yes Yes

Los Bagres School Construction No Yes No Yes Yes Yes Yes Yes Recovery of Las Mercedes-Cagua School No Yes No No Yes Yes Yes Yes

MLdN - Tiara Road maintenance No Yes No No Yes Yes Yes Yes Road 002 Altagracia – La Esperanza recovery No Yes No No Yes Yes Yes Yes

Main access road construction No Yes No Yes Yes Yes Yes Yes New road maintenance No Yes No No Yes Yes Yes Yes Recruiting assistants and degree candidates No Yes No Yes Yes Yes No Yes

Offer of mineral donation to the UCV No No No Yes Yes Yes No Yes

Offer of metal sale to Casa de la Moneda No No No No Yes Yes No Yes

213


ACTIVITIES









Technology supply No No Yes Yes Yes Yes No Yes Support to the State for minerals evaluation No No No Yes Yes Yes No Yes

Contribution for booms checkup (to mark concession boundaries) No Yes No No Yes Yes No Yes


No No Yes Yes Yes Yes Yes Yes

Cesta tickets distribution No Yes No No Yes Yes No Yes Exploitation tax payment No No No No Yes Yes No NC La Mata / Aragua police module No Yes No Yes Yes Yes Yes Yes Contribution to Dividendo Voluntario para la Comunidad Yes Yes No Yes Yes Yes Yes Yes

Uniforms manufacturing cooperative promotion No Yes Yes Yes Yes Yes Yes Yes

Qualified labor certification program with INCE No Yes Yes Yes Yes Yes Yes Yes

Micro-entrepreneurs training No Yes Yes Yes Yes Yes Yes Yes Remodeling of Tiara Parish Board No Yes Yes Yes Yes Yes Yes Yes

Air conditioning equipment donation to Infocentro No Yes Yes Yes Yes Yes Yes Yes

214


ACTIVITIES









Tires donation and ambulances repair No Yes No Yes Yes Yes Yes Yes

Electric substation donation to CADAFE No Yes No Yes Yes Yes Yes Yes

Foods baskets donation in Christmas Yes Yes No No Yes Yes No Yes

Sport courts remodeling No Yes No Yes Yes Yes Yes Yes High School sport court maintenance No Yes No Yes Yes Yes Yes Yes

Vecindad Minera Magazine issue No Yes Yes Yes Yes Yes Yes Yes

Donation of waste material sales product No Yes Yes Yes Yes Yes Yes Yes

Equipment and educational materials donation to High School

No Yes No Yes Yes Yes No Yes

Computers donation to official entities No Yes No Yes Yes Yes Yes Yes

Support to Tiara high school students graduation act No Yes Yes No Yes Yes No Yes

Support to High School students' social work No Yes Yes No Yes Yes No Yes

Donation of cleaning and educational material and of foods

No Yes Yes No Yes Yes No Yes

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ACTIVITIES









Realization of environmental education courses No Yes Yes Yes Yes Yes Yes Yes

Metal-mechanic area suppliers development No Yes Yes Yes Yes Yes Yes Yes

Collaboration with ASOINCO Annual Convention No Yes No Yes Yes Yes No Yes

Local staff preferential recruiting for INCE training No Yes Yes Yes Yes Yes No Yes


No Yes Yes Yes Yes Yes No Yes

CONACUID (Activity to be carried out) Yes Yes No Yes Yes Yes No Yes

Sport activities for workers No Yes No Yes Yes Yes No Yes

Contribution to nurseries for workers' children No Yes No Yes Yes Yes No Yes

Scholarships for workers and their children, school supplies and toys

No Yes No Yes Yes Yes No Yes

Subsidy to refectory No Yes No No Yes Yes No Yes Vacations bonus, savings bank, profits No Yes No No Yes Yes No Yes

Training annual plan No Yes Yes Yes Yes Yes No Yes

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ACTIVITIES









Water dams and treatment plant construction and operation No Yes No Yes Yes Yes Yes Yes

Training on early childbearing and HIV / AIDS No Yes Yes Yes Yes Yes Yes Yes

Biodiversity survey No Yes No Yes Yes Yes Yes Yes

Payment of statutory taxes No Nc No No Yes NC No NC Parafiscal contributions (payroll) No NC No No NC NC No NC Community projects evaluation workshops through Acción Campesina

No Yes Yes Yes Yes Yes Yes Yes

Environmental variables monitoring No Yes No Yes Yes Yes No Yes

International assistants program No Yes Yes Yes Yes Yes No Yes Staff remuneration No Yes No No Yes Yes No Yes

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The C7 Tool “Guide to Evaluate Performance related to Corporate Policies” is aimed at enabling operations to carry out a self evaluation, regarding performance as per Good Neighbor Principles, Industrial Safety and Health Policies, and Managerial Principles. As for key actions and elements, four performance levels were taken into account for the company: Level A: Policies results have been considered and local responses have been initiated Level B: Plans to implement actions needed have been developed Level C: Actions have been developed and implemented Level D: Actions have been implemented and their performance has been checked This analysis evidences that most key actions developed by operations are within levels C and D, therefore, an important effort has been made not only to plan actions within the corporate policies frame, but also to implement them and check their performance. This is a “Good Practice” from a managerial point of view that can be used by all operations being part of the Anglo American Group.

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TABLE C7.1. CONTRASTING PERFORMANCE WITH AA POLICIES AND PRINCIPLES

LEVEL KEY ELEMENTS KEY ACTIONS A B C D

SUPPORTING EVIDENCE FOR LEVEL ELECTION

MANAGERIAL RESPONSIBILITY

Within the Good Neighbor principles-Our responsibilities with our stakeholders Communities

Periodic meetings with communities of Tiara and Altagracia

x Minutes of meetings and agendas

Ricardo Pérez and Juan Carlos Cuenca Promotion of strong

relationships with the communities

Vecindad Minera Magazine issue x Issue of 9 Numbers. Recruiting Marketing Plus / Consultants


Reforestation campaign x Reports submitted to MARN Luis Espinoza

Los Bagres School Construction x Miranda Government Direction of Education and MEM Juan Carlos Cuenca

Recruiting assistants and degree candidates x Human Resources Dept. reports

and reports submitted to MEM Juan Carlos Cuenca

Recovery of Las Mercedes Cagua School x There is no evidence Juan Carlos Cuenca

Uniforms manufacture cooperative promotion x Credit application to the Miranda

Government Juan Carlos Cuenca

Qualified labor certification program with INCE x INCE Aragua Juan Carlos Cuenca

Micro-entrepreneurs training x Santos Michelena Municipality - Textile INCE Juan Carlos Cuenca

Improvement of communities capacities that operations are part of

Remodeling Tiara Parish Board x Parish Board Juan Carlos Cuenca

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Air conditioning equipment donation to Infocentro x Infocentro in Tiara Parish Board Juan Carlos Cuenca

Equipment and educational materials donation to High School x Evaristo González Palma High

School Juan Carlos Cuenca



Donation of waste material sales product X Minutes of the Public Issues

Committee Luis Espinoza, Juan Carlos Cuenca and Wilmer Pérez

Support to High School students' social work x Students' applications and

reports and materials donations Juan Carlos Cuenca

Donation of cleaning and educational material and of foods x Educational centers Tiara and

Altagracia Juan Carlos Cuenca

Performance of environmental education courses x Application before MARN-

Miranda Juan Carlos Cuenca

Metal-mechanic area suppliers development x Logistics Management

purchases historical Yonny González

Collaboration with ASOINCO Annual Convention x ASOINCO. Payment support Juan Carlos Cuenca

Local staff preferential recruiting for INCE training x MLdN Human Resources Dept. Juan Carlos Cuenca

Preferential recruiting the area labor for non qualified activities x MLdN contractors payroll Juan Carlos Cuenca

CONACUID (to be carried out) X CONACUID Ricardo Pérez and Juan Carlos Cuenca

Contribution to nurseries for workers' children x MLdN Human Resources Dept. Ramón Sandoval

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Scholarships for workers and their children, school supplies and toys x Human Resources Dept. and

Sintraniquel Ramón Sandoval

Training annual plan x Budgetary execution and Quarterly Reports to INCE

Ricardo Pérez and Ramón Sandoval

Training on early childbearing and HIV / AIDS x Acción Solidaria service offer Juan Carlos Cuenca


x Reports submitted to Miranda Gov., MEM, FUDESEM and other authorities


International assistants program x Reports to Anglo Ricardo Pérez

To establish regular commitments regarding issues affecting them

Periodic meetings with communities of Tiara and Altagracia

x Minutes of meetings and agendas



Construction of deep water well x Well Geology for aquifer survey, EIA

Luis Espinoza and Juan Carlos Cuenca

Recovery of Rafael Rangel epidemiological camp x Reports to MSDS Luis Espinoza

Remodeling Tiara public health unit x Tiara Public Clinic, Reports

submitted to CORPOSALUD Juan Carlos Cuenca and Luis Espinoza

Construction of La Esperanza health module x La Esperanza Module, Reports


To support community projects adjusted to local priorities, sustainability and cost effectiveness

Los Bagres School Construction x Miranda Government Direction of Education and MEM

Juan Carlos Cuenca and Luis Espinoza

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MLdN - Tiara Road maintenance x MLdN budgetary execution and reports to MEM


Road 002 Altagracia - La Esperanza recovery x

MLdN budgetary execution and reports to Aragua Government and Santos Michelena Municipality

Luis Espinoza

Main access road construction x Budgetary execution and report to MARN Luis Espinoza

New road maintenance x Budgetary execution Regis de Padua and Marco Almeida


x Verbal contacts with MEM Juan Carlos Cuenca

La Mata / Aragua police module x Agreement with Aragua State Police and reports to MEM and MARN


Contribution to Dividendo Voluntario para la Comunidad x Agreement with DVC Ricardo Pérez and Juan

Carlos Cuenca

Uniforms manufacture cooperative promotion x

Credit granted by the Miranda Gov. and cooperative constitution document


Qualified labor certification program with INCE x INCE Aragua Juan Carlos Cuenca and

Ramón Sandoval



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Electric substation donation to CADAFE x Donation to Cadafe document Marco Almeida





CONACUID (Activity to be carried out) x CONACUID Ricardo Pérez and Juan

Carlos Cuenca

Water dams and treatment plant construction and operation x Feasibility study Luis Epinoza and Marco

Almeida



x Reports submitted to Miranda Government, MEM, FUDESEM and other authorities



To evaluate contributions from operations to the local economic and social development

Preparation of annual Social Balance x

Social balance 2004 to be submitted in 1er. Quarter of 2005 / Recruiting G-social

Ricardo Pérez

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Periodic reports to government entities on contributions related with the execution of the Mining Titles' special advantages and of Environmental Impact Survey

x Reports submitted Luis Espinoza and Juan Carlos Cuenca

Contracting external consultants specialists in sustainable development

x G-Social and Acción Campesina contract Ricardo Pérez

Periodic reports to Anglo x Reports submitted Luis Espinoza and Ricardo Pérez

Reports to World Bank x Reports submitted Luis Espinoza and Ricardo Pérez

Clients and partners


Construction of deep water well x Well. Geology for aquifer survey, EIA



Remodeling Tiara public health unit x Tiara Public Clinic, Reports





To look for mutual benefits in the long term with partners, contractors and suppliers based on fair and ethical practices


224








Luis Espinoza








Juan Carlos Cuenca







225






Sport courts remodeling x Tiara Parish Board Juan Carlos Cuenca

High School's sport court maintenance x Union Juan Carlos Cuenca



Foods baskets donation in Christmas x Payment orders Ricardo Pérez and Juan

Carlos Cuenca

Donation of waste material sales product x Minutes of the Public Issues




Computers donation to official entities x Correspondences

Jorge Pierantozzi, Luis Espinoza and Juan Carlos Cuenca







226




Preferential recruiting labor of the area for non qualified activities x MLdN contractors payroll Juan Carlos Cuenca


Carlos Cuenca

Sport activities for workers x Budgetary execution, Sintraniquel and collective contract

Ricardo Pérez




Subsidy to refectory x Collective contract Ricardo Pérez Vacations bonus, savings bank, profits x Collective contract Ricardo Pérez




Almeida



x Reports submitted to Miranda Government, MEM, FUDESEM and other authorities



x Reports to MARN Luis Espinoza and Wilmer Pérez

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Staff remuneration x Budgetary execution Ricardo Pérez Support to High School students' social work x Students' applications and

reports Juan Carlos Cuenca

Biodiversity survey x Report to MARN Luis Espinoza and Wilmer Pérez

Governmental entities

Exploitation tax payment x Tax payment forms Juan Carlos Cuenca and Ronald Marino

Offer of mineral donation to the UCV x Correspondence sent Juan Carlos Cuenca

Offer of metal sale to Casa de la Moneda x Correspondence sent Juan Carlos Cuenca

Technology supply x Correspondence sent Juan Carlos Cuenca

Support to the State for minerals evaluation x Correspondence sent Juan Carlos Cuenca


Carlos Cuenca

Payment of statutory taxes x Tax payment forms Ronald Marino, Ulises Lara and Vincent Cannistraro

To respect the laws of each country being socially responsible

Parafiscal contributions (payroll) x Payment cancellation forms Ricardo Pérez and Ramón Sandoval

Non Governmental Organizations

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x Reports surrendered to Miranda Gov., MEM, FUDESEM and other authorities


Training on early childbearing and HIV / AIDS through Acción Solidaria

x Acción Solidaria service offer Juan Carlos Cuenca



To seek having constructive relationships with relevant NGOs


Carlos Cuenca

Within Anglo Good Neighbor principles - Behavior principles Corporate citizen





Remodeling Tiara public health unit and staff expenses payment x Tiara Public Clinic, Reports


To contribute to communities integral well-being / local business development / opportunities to workers with disadvantages



229










Luis Espinoza







Exploitation tax payment x Tax payment forms Juan Carlos Cuenca and Ronald Marino


Juan Carlos Cuenca


Carlos Cuenca

230











Tires donation and ambulances repair x Corposalud Aragua and Tiara

and Altagracia Parish Boards Juan Carlos Cuenca


Sport courts remodeling x Tiara Parish Board Juan Carlos Cuenca

High School's sport court maintenance x Union Juan Carlos Cuenca



Donation of waste material sales product x Minutes of the Public Issues






231










Carlos Cuenca

Sport activities for workers x Budgetary execution, Sintraniquel and collective contract

Ricardo Pérez




Subsidy to refectory x Collective contract Ricardo Pérez Vacations bonus, savings bank, profits x Collective contract Ricardo Pérez




Almeida


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Payment of statutory taxes x Tax payment forms Ronald Marino, Ulises Lara and Vincent Cannistraro


x Reports surrendered to Miranda Gov., MEM, FUDESEM and other authorities


Environmental variables monitoring x Reports to MARN Luis Espinoza and Wilmer

Pérez


Staff remuneration x Budgetary execution Ricardo Pérez

Parafiscal contributions (payroll) x Budgetary execution and payment forms


Employment and labor rights

Norm SA8000 x BVQI Ricardo Pérez and Mary Prado

Open Line x Anglo General Manager and Legal Manager

To promote the equity in the work place and eliminate all discrimination forms

Code of Ethics, Collective contract x Company Manuals Ricardo Pérez and MLdN Legal Management




To promote the equity in the work place and eliminate all discrimination forms



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Security, health and environmental handling


Recovery, operative maintenance of Rafael Rangel epidemiological camp

x Reports to MSDS Luis Espinoza

Remodeling Tiara public clinic and staff expenses payment x Tiara Public Clinic, Reports


Construction of La Esperanza health module and staff expenses payment

x La Esperanza Module, Reports submitted to CORPOSALUD


Los Bagres School Construction and staff expenses payment x Miranda Government Direction

of Education and MEM Juan Carlos Cuenca








To work in function of reaching a good balance among the economic, social and environmental development



234





Almeida


Pérez


Roads construction and maintenance x Budgetary execution Luis Espinoza, Regis de

Padua and Marco Almeida



Within the Safety and Industrial Hygiene policies Recovery, operative maintenance of Rafael Rangel epidemiological camp


Remodeling Tiara public health unit and staff expenses payment x Tiara Public Clinic, Reports





To contribute in the attention of communities priorities in regards to health

Tires donation and ambulances repair x Corposalud Aragua and Tiara

and Altagracia Parish Boards Juan Carlos Cuenca



Almeida To preserve environmental resources


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Pérez Reforestation campaign x Reports submitted to MARN Luis Espinoza

Recovery, operative maintenance of Rafael Rangel epidemiological camp


Remodeling Tiara public clinic and staff expenses payment x Tiara Public Clinic, Reports





Los Bagres School Construction and staff expenses payment x Miranda Government Direction

of Education and MEM Juan Carlos Cuenca


To contribute to prevent or mitigate operations adverse impacts (Understanding these as environmental and social impacts)


Almeida


To demonstrate effective land and biodiversity handling Survey about the dust effect on the

vegetation development x Report to MARN Luis Espinoza and Wilmer Pérez

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Within the managerial principles

Commitment


Carlos Cuenca To dedicate appropriate human and financial resources to guarantee that operations social issues are managed so that they reflect their high corporate priority

Building relationships with the community costs center x Budgetary execution Ricardo Pérez

Risks evaluation

Environmental variable monitoring above legal obligations x Report to MARN and Anglo

American Luis Espinoza and Wilmer Pérez To accurately identify, evaluate

and prioritize hazards and risks related with all operations activities Turnbull Risks Analysis x Reports to Anglo American Ronald Marino

Prevention and control Coupling with the Communities Triennial Plan x Reports to Anglo American Ricardo Pérez

Turnbull Risks Analysis x Reports to Anglo American Ronald Marino

SEAT x Reports to Anglo American and contracting of G-Social Ricardo Pérez

To prevent, minimize, or control high-priority risks through planning, design, investment, management, and procedures of the work area

Public Issues Committee x Meetings minutes

Ricardo Pérez, Luis Espinoza, Juan Carlos Cuenca, General Manager and Legal Manager

Performance

Establish goals, objectives, and performance indicators adapted External consultants x Lawyers Office of and internal

and external Auditors John Mackenzie, Ronald Marino and Legal Manager

237




SEAT x Reports to Anglo American and contracting of G-Social Ricardo Pérez

Norma SA8000 x BVQI Ricardo Pérez and Mary Prado

Good Neighbor Principles x Company policy and procedures manuals. Informative material for staff

Ricardo Pérez, Jesús Sánchez and Legal Management

Environmental Impact Survey x Reports to MARN, MEM, MSDS and Corposalud Luis Espinoza

to all our operations, as well as respect all the applicable laws and regulations, and where appropriate, use the best international practices

Mining Titles' Special Advantages x Reports to MARN, MEM, MSDS

and Corposalud Juan Carlos Cuenca

Evaluation

Accurately monitor, review and confirm the management and performance effectiveness in the work area

Performance contract x Anglo American, MLdN Human Resources Management

Brian Beamish, John Mackenzie and Ricardo Pérez

238

The D1 Tool: “Sharing SEAT Process Results with Stakeholders”, is aimed at giving the opportunity to discuss and prove results strength and validity with stakeholders, allow them to develop a shared understanding of all issues and topics, and give the opportunity to get involved in potential solutions development process, usually giving raise to innovative solutions. It also helps to know if stakeholders understand the effect from impacts, had by their communities, in order to be better prepared to make easier the related company handling processes. Table D1.1: “Planning Feedback Requirements” is divided into two sections: the first one refers to identifying issues and topics mentioned by each SH group, determining its main features and the feedback method proposed for each one. Then, taking as a basis the feedback activity selected, the second section records SH to be involved, supporting materials needed and the responsible individual.

239

TABLE D1.1: PLANNING FEEDBACK REQUIREMENTS

Part 1 - Identifying the Feedback requirements per Stakeholders Stakeholders

Name of Stakeholders Key issues raised Main features Feedback method proposed

Increase in health / education services demands Coverage in social security and labor stability Greater awareness in health prevention and care Increase in goods and services prices Increase in property prices Improvement of social infrastructure Belief of pollution on the part of the community Delinquency increase

Vulnerability to criminal activities

Road accidents increase Weakening the agricultural activity occupation

WORKERS

Loss of crops quality

MLdN employees and contractors workers Assembly and distribution of magazine “Vecindad Minera”

Population increase

Restrictions to time in family enjoyment

Coverage in social security and labor stability Appearance of new illnesses

WORKERS' RELATIVES

Early childbearing increase

Mostly, they are influence area residents (Tiara, Altagracia de La Montaña, Los Teques)

Assembly and distribution of magazine “Vecindad Minera”

240



Vulnerability to criminal activities

Population increase Emigration process decrease Little employment of local labor Local employment increase at the beginning of operations Appearance of new illnesses Early childbearing increase Deterioration of roadways Natural resources decrease Environment deterioration / pollution Delinquency increase Road accidents increase Tourist activity decrease Recent agricultural activity rise

ALTAGRACIA DE LA MONTAÑA NEIGHBORS


Group formed by local authorities, neighbors associations members, agricultural producers, health, education and NGOs staff


Population increase Little employment of local labor Local employment increase at the beginning of operations Appearance of new illnesses Deterioration of roadways Environment deterioration / pollution Road accidents increase Tourist activity decrease

TIARA NEIGHBORS

Recent agricultural activity rise

Group formed by local authorities, neighbors associations members, agricultural producers, health, education and NGOs staff


241



Weakening the agricultural activity occupation Loss of crops quality


Population increase Increase in health / education services demands Increase in local services demands Deterioration of community relationships Local employment increase Population resettlement Increase in goods and services prices Increase in property prices Increase in community organization ways Appearance of new illnesses Early childbearing increase Education improvement Improvement of social infrastructure Deterioration of roadways Opportunities for local suppliers Natural resources decrease Environment deterioration / pollution Delinquency increase Break of values Road accidents increase Training

MEM, Miranda Government Education Direction, Prefectures, Corposalud, MSDS, Rafael Rangel Camp, Miranda Fire Department,

Community income improvement

Authorities that grant licenses or permits and have knowledge on impact from operations

Meeting / visits of officials from: MEM, Miranda Education Direction, Corposalud, MSDS, Rafael Rangel Camp. Sending of informative material to Miranda Prefectures and Fire Departments

242



Population increase Increase in health / education services demands Increase in local services demands Deterioration of community relationships Local employment increase Population resettlement Increase in goods and services prices Increase in property prices

Increase in community organization ways

Appearance of new illnesses Education improvement


Roads construction and maintenance Deterioration of roadways Opportunities for local suppliers Natural resources decrease


Delinquency increase Break of values

Professional and Union Associations, NGOs, social Communication media, suppliers and contractors and Councilmen

Road accidents increase

Interested groups that are part of the community in a broad sense and who have knowledge on impacts from operations

Union Associations: assembly with MLdN workers. Unions, NGOs, suppliers / contractor and council members: sending informative material. Social Communication Media: meeting / visit

Deterioration of community relationships Local employment increase Population resettlement Increase in goods and services prices

STAKEHOLDERS

Increase in property prices

Anglo American Representatives Sending informative material

243



Increase in community organization ways Appearance of new illnesses Education improvement


Roads construction and maintenance Deterioration of roadways Opportunities for local suppliers Natural resources decrease


Delinquency increase Fissure of traditional values Road accidents increase

Mining development center

244

TABLE D1.1: PLANNING FEEDBACK REQUIREMENTS Part 2 - Feedback Program Summary

Feedback Activity Stakeholders to be involved / covered (*) Supporting materials needed Time and responsible

Assemblies Workers, Sintraniquel, SUTIC, workers families, Tiara and Altagracia de la Montana's neighbors

1) Divulging material including issues / more relevant impacts and fundamental aspects of the MLdN Social Investment Plan (Brochure)

First quarter 2005 / Ricardo Pérez, Juan Carlos Cuenca

“Vecindad Minera” magazine distribution MLDN and contractors' workers, Tiara and Altagracia de la Montana's neighbors

1) To include informative summary on issues / more relevant impacts and fundamental aspects of the MLdN Social Investment Plan. 2) Divulging material including issues / more relevant impacts and fundamental aspects of the SI Plan

First quarter 2005/ Ricardo Pérez, Juan Carlos Cuenca

Meetings / visits

Officials MEM, Corposalud, MSDS, Miranda Government Direction of Education, epidemiological Camp and social communication media

1) Divulging material including issues / more relevant impacts and fundamental aspects of the MLdN Social Investment Plan (Brochure)


Sending informative material Prefects, Miranda Fire Department, suppliers / contractors, NGOs, councilmen, Professional organizations

1) Divulging material including issues / more relevant impacts and fundamental aspects of the MLdN Social Investment Plan (Brochure / printed and digital formats)


98

LIST OF STAKEHOLDERS INVOLVED IN THE SURVEY

AUTHORITIES

Francisco Salas, Mines General Director Oscar Matos Víctor Andrade, Director of Planning and Mining Economy; Tamara Armao, Contadora – Management Control Division; José Rojas, Planning head of the Management Control Division José Joaquín Cortés, national Mines Protection Sub-Director

MEM

Jorge Bolívar, Regional Inspector / Aragua; Oscar Matos, Administrator; Eduardo Oviedo, Mining Engineer

EDUCATION DIRECTION OF MIRANDA

Mercedes Millán, Coordinator, Support Direction to Educational Sub-region Sonia Salazar Prefect of Guaicaipuro Rafaela Jiménez, Prefect of Tácata PREFECTURES Coromoto Manchego, Prefect of Las Tejerías Migdalia Rodríguez, Chief Physical Health District No. 1 (Miranda) Benito Aguilera, Health Municipal Director– Aragua Damaris Palomo, RII Coordination Corposalud

HEALTH AGENCIES

Antonio Espinoza, Adviser for Rafael Rangel Camp MIRANDA FIREMEN Teniente Benis D'Lima, Technical Division Head

WORKERS

Jesús Ramón Benavides, Wilfredo Quintero, Pablo Muñoz, Dennis Cantalla, Roberto Jaspe,Deivid Palacios, Jhonny Rangel,Natalio González, Roxana Camejo, Francisco Morales, Giselo Rivero, Carlos Acevedo, Pady Ramírez, Pablo González, Andrés Suárez, Simón Padilla, Alberto Vásquez, Angel Díaz, Juan Lucena, Johana Acosta, Noel Will, Pedro Reaza, Jairo Rodríguez

WORKERS’ RELATIVES Gloria Muñoz, Mayela de Muñoz, Leticia Velásquez, Raiza Losada, Carmen Campo, Luis Lucena, Ingrid Segovia

NEIGHBORS FROM ALTAGRACIA DE LA MONTANA

Edgar Castillo, Maira Osorio, Yakelin Taboada, Maria Toro, Maria de Seijas, Nicolasa Manrique, Saturnina España, Elba Bogado, Alexis Chávez, Delia Seijas, Antonio Arocha, Ciro Ojeda, Salome Frías, Emperatriz Aguero, Gloria Marchena, Cesar Romero, Armando Rodríguez, Aristóbulo Orellan, Armando Morera, Pedro Escobar, Antonia Martines, Julio Seijas, Elvira Sánchez, Rosa Escobar, Enrique Osorio, Lenny Osorio, Carmen de Seijas, Francisco Seijas

NEIGHBORS FROM TIARA

Luis Mendoza, Margot Arrieta, Ilidis López Mendoza, Marco González, Dionicia Aponte, Javier Lorca, Xiomayra Rivas, Augusto Rivero, Xiomara Torres, Maritza González, Yelitza Torres, Víctor Lugo, Victor José Lugo O., Wolfang Natera, Renny Escobar, Pedro Cabrera, Izamar Martínez

99

SHAREHOLDERS Brian Beamish, AA plc

INTERESTED GROUPS

Gerardo Rosales, Sintraniquel UNION ASSOCIATIONS

Carlos Pinto, Executive Secretary Industrial Safety Dpt. SUTIC

Pedro Pablo Meza, President - Cámara de Industriales del Estado Aragua Industrial Chamber of the State of Aragua) PROFESSIONAL

ASSOCIATIONS Asociación de Industriales Metalúrgicos y de Minería de Venezuela (AIMM) (Venezuelan Metallurgic and Mining Industrial Association)

INCE Yandira Rivero de Fayad, Center Coordinator

Nhelsyr González, Operative Coordinator Operativa Acción Campesina NGOs

Luis Alemán, DVC Executive Director

Zulay Bevacqua, Sales Executive - Creaciones Lo Máximo, C.A.

Ruy Alexander Sánchez, Operations Manager - Leomin

Asdrúbal Silva, Staff Chief - Montajes Totales MT, C.A

Jacobo Abadi, Territory Manager / Industrial Sales – Mobil Productos Refinados

Saomara Larreal, Sales Manager - 3M Manufactura de Venezuela

Leonardo Pino, General Manager – Inversiones Pino H. I.C.A

Albert Richter, Operations Manager - Industria Metalmecánica Zerri, C.A. Efraín Naranjo, General Director – Intru - Sol Cesar José Messina, Administrator - Industrial Locati de Cagua, C.A.

Manuel Pereira, Manager – Materiales Rodríguez, C.A.

SUPPLIERS / CONTRACTORS

Franklin Ocando, Quality Assurance Head Calidrat Evert García, Periodista –Director, Diario El Aragüeño

Omar García, General Director Radio Metropolitana 97.1 FM

Luis Alberto Alarcón, General Director - Máxima 98.5 FM

Joel Urbina, RRPP and Publicity Manager - El Periódico de Aragua

José Materan Tulene, President - La Región

MEDIA

Honorio Cruz Sigala, General Director Radio Victoria (Victoria 103.9 FM)

Pastor Pina, Concejal Cámara Municipal Santos Michelena COUNCILMEN

José Gregorio Díaz, Concejal Municipio Santos Michelena

100

PHASE 3: DEVELOP A MANAGERIAL RESPONSE TO KEY ISSUES INCLUDING PLANNING FOR A POTENTIAL CLOSURE

The E1 Tool “Developing a Management and Monitoring Plan” is aimed at providing outlines to develop managerial measures and performance indicators regarding issues identified in the assessment. The information gathered in this tool shall be a direct input to the Community Commitment Plan, particularly with regard to such plan aspects needing identifying key managerial objectives, account rendering and resources requirements. Tables E1.1 and E1.2, respectively, provide the structure for the management and monitoring plan, addressing the identification and evaluation processes for managerial measures. For such purpose as drawing up the 2005-2007 Social Investment Plan Table E1.1 was completed as set forth by the SEAT methodology, while Table E1.2 components were directly included to the plan design formats. Activities highlighted in grey, in table E1. 1 have been performed and were recorded as part of the operations activities inventory since star up; therefore, they were not included in the 2005-2007 Social Investment Plan.

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TABLE E1.1. KEY COMPONENTS OF THE MANAGERIAL PLAN

IMPACT MANAGERIAL GOAL MANAGERIAL MEASURE RESPONSIBLE TIME BENEFICIARIES

PERFORMANCE KEY INDICATORS

IMPACTS IDENTIFIED BY STAFF

Cooperation in the training geology and mining technicians.

To contribute to train technicians in areas of interest to operations and collaborate with employees' families by recruiting assistants and degree candidates

Recruiting assistants and degree candidates. Report to the MEM and participation in Mining Engineering School's Council, UCV.

Juan Carlos Cuenca, Ramón Sandoval and David Torin

Permanent

Mining technical institute students from Táchira, Merida, Bolivar and human resources from Aragua and Miranda. 24 assistants per year

Recruiting 24 assistants per year (2 per each concession)

Preservation of relationships with owners by respecting their property limits.

To guarantee appropriate relationships with neighbors by setting operations boundaries

Timely contribution to the MEM. Maintenance of booms will continue in the future.

Juan Carlos Cuenca

Permanent

Neighbors near operations and MLdn and operations

Anglo internal audit. Positive MEM evaluation. There are no complaints or claims

Improvement of the workers and their families' life quality.

To favor economic improvement and contribute with an adequate feeding of workers and their families

Purchase and distribution of "cesta tickets"

Juan Carlos Cuenca Ramón Sandoval

Permanent Workers and their

families MEM inspections with positive results

Compliance with statutory obligations

To cancel MLdN tax obligations on time and with arrangement to the law

Petition brought before MEM to continue paying current 6 % exploitation tax

Juan Carlos Cuenca Ronald Marino

Permanent Tesorería Nacional

(National Treasury)MEM inspections with positive results

102



Students' and workers' sport practice conditions improvement

To contribute with the physical and mental health of students and workers as well as with the organization that represents them

La Victoria's High School sport court maintenance


Permanent

La Victoria's High School Educational Community

There are no complaints from Unions

Diffusion of community interest issues

To offer a permanent channel for information and diffusion of issues linked to operations and the community life that are of interest for the Tiara and Altagracia de la Montaña people.

Periodic edition of the "Vecindad Minera" magazine


Permanent

Tiara and Altagracia Communities (2,000 copies)

Quarterly issue of 2,000 copies of the magazine. Addressees’ positive responses.

Improvement of conditions for information surveys as well as for technological skills development

To contribute to improve the information access conditions for the users of INFOCENTRO

Furnishing air conditioned equipment to INFOCENTRO

Juan Carlos Cuenca Activity accomplished

INFOCENTRO Las Tejerías Users Equipment furnished

Better knowledge of the environmental regulations

To contribute to train neighboring communities people in the legislation and regulations relative to environmental preservation

Courses coordination and performance with the MARN

Juan Carlos Cuenca Luis Espinoza Permanent

People from Tiara and Altagracia de la Montaña

Training 100 people per year. At least three annual courses

103




To strengthen bonds with the educational community organization

Economic support for Tiara high school graduation acts

Juan Carlos Cuenca Ricardo Pérez

Activity accomplished

Tiara high school graduates

Administrative counseling for economic support granted

Improvement of educational activity endowments

To contribute with health conditions improvement materials availability as support to the neighboring communities schools

Supplying cleaning, and educational material and, possibly, food

Juan Carlos Cuenca Permanent

Educational communities of Altagracia de la Montaña, Tiara and Las Tejerías

Administrative support regarding materials supplied

Opening employment opportunities, family income improvement and migratory process control

To favor local employment opportunities and technology development through production incentives and purchase of metal-mechanic parts

Support in the design and purchase of metal-mechanic parts

Jesús Sánchez Yonny González Permanent

Suppliers and contractors of the central region

Purchase of growing volumes of metal-mechanic parts made by local suppliers

Incentives to university studies in the area of geology and mines at an international level

To give support to foreign students coming from universities that offer careers in the geology and mines area

Coordination and execution of apprenticeship international programs

Ricardo Pérez Permanent European universities students

Recruiting an assistant coming from an European university on a annual basis

To identify possible damages from operations and to introduce corrective measures

To identify if operations are causing some damage and to introduce immediate corrective measures if needed

Monitoring variables above required obligations and standards

Luis Espinoza, Wilmer Pérez Permanent

Communities and workers of operations

Periodical reports. Anglo inspections according to or above standards

104



Environmental preservation

To detect typical autochthonous fauna or flora and elaborate conservation proposals, with an eye on environmental preservation

Performance of biodiversity survey Luis Espinoza Activity

accomplished

Flora and fauna of operations influence area

Survey carried out

Strengthening community social work

To contribute with the availability of materials required for developing students’ social activities

Supplying materials Juan Carlos Cuenca Ricardo Pérez Permanent Tiara students Administrative support

for materials supplied

To improve the physical conditions for education

To contribute with the availability of materials required for developing students’ activities

Supplying educational supplies and materials to Altagracia High School



Educational Community U.E Evaristo González Palma, Altagracia de la Montaña

Administrative support for materials supplied

Workers' health quality preservation

To guarantee the workers a quality medical service

Payment of operations and medical care expenses

Luis Espinoza Jose Luis García Permanent Operations

employees

Number of annual benefits. Type of benefits offered. Number of people assisted. Reason for the medical consultation. Appropriate and timely supply

105



Equipment and accessories to preserve workers' health

To make available the equipment and accessories that guarantee the preservation of workers' health and life

Investment in equipment and accessories purchasing

Luis Espinoza José Luis García Permanent Operations

employees

Timely equipment Purchase. Appropriate use of equipment. Number of accidents related to faulty quality and inadequate use of equipment and accessories

Workers' health preservation

To fulfill obligations relative to periodic medical workers’ examinations

Payment of enrollment, annual and termination medical examinations

Luis Espinoza José Luis García Permanent

Operations employees. MLdN

Number of examinations practiced / examinations intended. Type of examinations practiced.

Workers' health preservation

To fulfill labor obligations relative to workers' rest

Payment of obligations for workers' weekly rest

Ricardo Pérez Ramón Sandoval Permanent


Effective execution of the rest stipulated for each worker. There are no complaints from workers and unions.

Family income improvement

To fulfill labor obligations relative to workers' transport time

Payment of obligations for transport time



Administrative support for transport time payments. There are no complaints from workers and unions.

106




To fulfill labor obligations relative to workers' night bonus

Payment of night bonus obligations



Administrative support for night bonus payments. There are no complaints from workers and unions.

Preservation of work environment quality

To guarantee health and hygiene of operations and its workers

Follow up and control of work environment and variables associated to preservation of worker's health



Periodical reports. Anglo inspections according to or above standards.

Contributions to union associations operations.

To comply with the Company obligations and agreements with the unions.

Payment of contributions to union associations.

Ricardo Pérez Ramón Sandoval Permanent Unions

Administrative support for payments according to plans

Preservation of the social protection of workers and their families

To contribute to the well-being and social protection of workers and their families

Payment of obligations regarding the funeral expenses plan.

Ricardo Pérez David Torin Permanent

Operations employees and their families

Administrative support for funeral expenses payments. There are no complaints from workers and unions.

107



Preservation of the social protection of workers and their families

To contribute with the well-being, social security and life quality of workers and their families

Payment of obligations relative to life insurance and personal accidents



Administrative support for relevant payments. There are no complaints from workers.

Preservation of health and medical care quality of workers and their families

To contribute with the well-being, health and life quality of workers and their families

Payment of obligations relative to medical care plan



Administrative support for obligations payments. There are no complaints from workers and unions. Workers' favorable opinions


To fulfill the labor obligations relative to over time payment

Payment of over time obligations

Ricardo Pérez Ramón Sandoval Permanent Operations

employees

Administrative support for over time payments. There are no complaints from workers and unions.

Workers' professionalization and training

To fulfill the labor obligations relative to training bonus

Payment of expenses corresponding to training bonus


employees

Administrative support for relevant payments. There are no complaints from workers

108



Improvement of life quality of workers and their families

To fulfill labor obligations relative to benefits of individual contracting

Payment of individual contracting benefits


employees

Administrative support for relevant payments. There are no complaints from employees.

Appropriate management of sexual and reproductive health in teenagers

To improve the quantity and quality of information youngsters have about sexual and reproductive health

Development of volunteer programs for HIV scanning.


5th year students from Tiara, Altagracia and Las Tejerías

Number of courses dictated / intended. Number of youngsters attending. Positive courses evaluation from participants.

Workers' health quality improvement

Health quality improvement of workers with specific addictions

Activities organization and payment of expenses corresponding to volunteer programs to eliminate tobacco, alcohol and drug abuse


employees

Number of programs carried out. Number of attendants / intended. Number of people who overcome addictions.

Workers' health improvement

Workers' health quality improvement

Activities organization and payment of expenses corresponding to Hypertensive Program


employees

Number of programs carried out. Number of attendants / intended. Number of people who overcome or manage their condition.

109



Higher medication availability

To contribute with the supply of medications offered by Tiara drugstore

Loan payment without interests to drugstore for medication purchases

Activity accomplished Tiara Community Administrative support

to loan payment

Preservation of the area of influence vegetation

To know the possible noxious effects of dust on the vegetation

Survey about the effect of dust on the vegetation. To ask

Luis Espinoza José Luis García

Activity accomplished Influence Area Survey carried out

Preservation of fish species

To contribute to preserve fish species characteristic of the area

Purchase and sowing species (cachama and coporo) and organization and monitoring the activity

Luis Espinoza Wilmer Pérez Permanent Communities and

operations

Number of species bought and sowed, budget executed / programmed

Space availability for social activities

To offer the community of Altagracia de la Montaña an appropriate space to carry out social activities

Designing a project and perform construction works for large shed intended to carry out social activities in Altagracia de la Montaña




Large shed built

Affiliation to Cámara Minera, Asociación de Industriales Mineros y Metalúrgicos, VENAMCHAM, Cámara Británica, Cámara Regional de Aragua, CONAPRI.

To bond the company with professional Chambers linked to operations

Payment of contributions for membership to professional Chambers

Ricardo Pérez, Juan Carlos Cuenca, John Mackenzie, Ronald Marino, Ramón Sandoval, Gema Mújica

Permanent Professional organizations and operations

Affiliation support Administrative support for payments.

110



In preparation To contribute to small mining development

Cooperation with mining entities of social character establishing bonds with the Misión Piar

Juan Carlos Cuenca Permanent Small miners MEM Inspections

In preparation To support the performance of scientific studies for best use of minerals

Offer of mineral donation to the UCV Juan Carlos Cuenca Permanent Students MEM Inspections

In preparation To contribute with activities characteristic of the Casa de la Moneda (Mint)

Offer of metal sale to Casa de la Moneda Juan Carlos Cuenca Permanent Banco Central de

Venezuela MEM Inspections

Improvement of MEM operations capacities

To contribute to the knowledge of operations and training officials

Technology supply Juan Carlos Cuenca Permanent MEM

MEM Inspections. Number of officials' visits / intended. Training activities carried out / intended.

In preparation To support the State for minerals evaluation

Offer the MEM training activities for officials Juan Carlos Cuenca Permanent MEM Officials

Number of training activities carried out / intended. Number of officials qualified / intended

In preparation

To contribute to the improvement of economic conditions in the communities

Donation of waste material sales product

Juan Carlos Cuenca, Wilmer Pérez, Jesús Sánchez

Permanent Communities of Tiara and Altagracia

Administrative support for donation

111



Positioning MLdN

To strengthen the bonds of the company with ASOINCO through collaboration with their annual convention

Collaboration with ASOINCO Annual Convention and stand placement

Juan Carlos Cuenca Permanent Entrepreneurs from Las Tejerías

Administrative support for contribution

In preparation

To develop a program of prevention and fight against drugs use with arrangement to legal dispositions and orientations and requirements of CONACUID

Negotiate before CONACUID for implementation. To be incorporated in social investment plan

Ricardo Pérez, Juan Carlos Cuenca Permanent

Operations employees, families and communities

Number of campaigns carried out, support materials distributed, number of events carried out, number of awareness workshops, number of workshops attendants

Constant water supply, improvement of water quality, fauna preservation.

To improve the quality and quantity of water supply

Construction and operations of water dams and treatment plant

Luis Espinoza, Wilmer Pérez, Luis Carlino Permanent Tácata and MLdN

Specific indicators according to requirements of the area

112



Improvement of technological work conditions

To contribute to improve the condition of employees, communities and official entities' technological equipment

Endowment of de-incorporated fixed assets

Juan Carlos Cuenca, Gema Mújica, Ulises Lara

Permanent

Workers, communities of Tiara and Altagracia, MARN

Administrative support for computers donated

Strengthening community social work

To contribute to strengthen the social work of students from the neighboring communities

Endowment of equipment Juan Carlos Cuenca Permanent

Tiara, Altagracia and Las Tejerías High School Students

Administrative support for equipment donated

IMPACTS IDENTIFIED BY STAKEHOLDERS ACCORDING TO SUBJECTS

Demographic changes

Population increase at the beginning operations

To maintain at manageable ranges the pressure of new residents about local services

Agreement with contractors to favor employment of staff from the community and to settle down in other areas the foreign staff hired and not to affect the service demands

Ricardo Pérez, Juan Carlos Cuenca Jesús Sánchez

Permanent Tiara Altagracia and Las Tejerías

Foreign staff hired residing in other areas

Decrease of emigration process

To favor the permanency of staff from the area in their residence place

Agreement with contractors to preferably hire staff from the area

Ricardo Pérez, Juan Carlos Cuenca Jesús Sánchez

Permanent Tiara Altagracia and Las Tejerías

Population residing in the area

113



Population resettlement

To guarantee the appropriate relocation of people affected by the installation of the plant

Compensation / support for resettlement Juan Carlos Cuenca Activity

accomplishedPopulation relocated

People affected resettled. Administrative support for economic compensations

Health and Education

Training local labor

To favor recruiting local staff as well as encourage and develop productive and training activities

Informal agreement to encourage micro-business organization. Preferential local staff recruiting for INCE training. Incentive to create cooperatives for uniforms manufacturing / purchase contract with beneficiaries

Juan Carlos Cuenca, Jesús Sánchez, Ramón Sandoval, Ricardo Pérez

Permanent

Communities of Santos Michelena and Guaicaipuro municipalities

Number of people of the area qualified

Increase in local services demands

To strengthen the communities capacities for detecting needs and formulating and administrating projects for community improvement

Community formation in the needs administration through Acción Campesina

Ricardo Pérez and Juan Carlos Cuenca Permanent

Community of Altagracia de la Montaña

Number of people qualified. Number of projects formulated.

114



Appearance of new illnesses

To prevent onset of new illnesses in the area of influence

Medical evaluation plan agreed with MSDS; direct workers and contractors' pre employment, periodical and termination evaluations. Statistics incorporated to official State reports. Epidemiological camp activation. Tiara public clinic recovery and La Esperanza public clinic construction.

Luis Espinoza, Juan Carlos Cuenca Permanent

Tiara, Altagracia de la Montaña and Las Tejerías

MSDS inspections. Medical evaluations plan executed. Reports presented. Support activities to the infrastructure and health service of the area carried out. Administrative support for payments made.

Increase of early childbearing

To contribute to an appropriate handling of teenagers' sexual and reproductive health

Give training courses on early childbearing and HIV / AIDS by contracting the NGO Acción Solidaria


Being negotiated

5th year students Tiara, Altagracia and Las Tejerías

Number of teenagers qualified - intended. Number of workshops dictated - intended.

115



Education improvement To contribute with the area infrastructure and educational service quality

Annual payment to Miranda Gov. for salaries and benefits. Direct contribution to maintenance and operations. Classrooms construction will continue up to 9th grade.


Los Bagres School Educational Community Organization

Administrative support for salaries and benefits paid. Miranda State Government inspections. Classrooms built.

Greater awareness regarding health prevention and care

To contribute to workers' health preservation and care

Informative campaigns, medical service, periodical bulletins distribution, medical care plan, administration follow up by MSDS.

Luis Espinoza, David Torín Permanent Employees

Campaigns carried out. Medical care plan executed. MSDS inspections. Medical benefits served.

Community

Deterioration of community relationships

To improve relationship terms between the company and neighboring communities

Agreement with municipal authorities, unions, communities and authorities for recruiting local labor / periodic meetings with communities / Vecindad Minera

Ricardo Pérez, Juan Carlos Cuenca, Jesús Sánchez

Permanent Tiara, Altagracia de la Montaña, Las Tejerías

Number of people of the area hired directly or through contractors. Periodical meetings carried out. Magazines distributed.

116



Increase of community organization forms

To promote strategies and channels to stimulate community organization

Workshops with NGOs to stimulate the organization and channeling of employment applications through Parish Boards and Neighbors Asoc., incentive to creation of cooperatives for sustainable development projects


Tiara and Altagracia de la Montaña

Number of workshops given - intended. Number of people qualified - intended. Number of employment applications channeled. Negotiations carried out for cooperatives creation.

Traditional values fissure To favor the preservation of beliefs, customs and values of local people.

Information on operations and on measures to be taken, respecting local people agricultural vocation and their values / preference for the use of natural and human resources characteristic of the area / local labor certification / support to cooperatives



Number of informative activities carried out / intended. Divulging material distributed / intended. Number of beneficiaries of labor Certification Program / intended. Negotiations carried out for cooperatives creation / intended

117




To guarantee a constant flow of information about operations towards communities

Information about operations and widely convoking the community for meetings



Divulging material distributed / intended. Number of meetings carried out / intended. Number of attendants / intended.

Improvement of workers' families life conditions

To offer workers and their families fair and competitive socioeconomic benefits

Collective contract execution, LOT and additional benefits

Ricardo Pérez Permanent Workers and their families

Socioeconomic benefits granted according to legal obligations and beyond. There are no complaints from workers and unions. Results of wages and benefits comparative surveys.

118



Economic activity / employment

Local employment increase

To favor the generation of local employment by recruiting staff from the area and encourage and develop productive and training activities

1. Maintenance and development of the forest. Sowing species of commercial and landscaping value and like a contribution to the area of influence sustainable development. 2. Purchase contracts with beneficiaries from uniforms cooperative. 3. Informal agreement for encouraging the conformation of micro-businesses with Las Tejerías Municipality. 4. Agreement with contractors for preferential recruiting local staff. 5. Support in the design and purchase of parts in metal-mechanic area. 6. Preferential local labor recruiting for non qualified activities.

Luis Espinoza, Juan Carlos Cuenca, Ricardo Pérez, Jesús Sánchez

Permanent Communities of Tiara, Altagracia and Las Tejerías

Number of people from the area who participate in reforestation / intended. Number of negotiations carried out as encouragement to cooperatives formation / intended. Number of people from the area employed / intended.

119



Community perception of discriminatory employment policy

To develop strategies directed to minimize the community negative perceptions regarding the company employment policies

MLdN policies to favor local labor recruiting and services in neighboring communities through authorities, Parish Boards and unions



Number of negotiations carried out as incentive to cooperatives formation / intended. Number of people from the area employed / intended. Number of informative activities / intended.

Little employment of local labor

To favor the recruiting of local labor

To train staff and to certify local labor qualification of jointly with the INCE. Contractual scholarships for workers. Preference is given to neighbors as INCE assistants and apprentices



Number of negotiations carried out as incentive to cooperatives formation / intended. Number of people from the area employed / intended. Number of informative activities / intended

Increase of local employment at the beginning operations

To favor recruiting staff from the area directly or through contractor companies

MLdN policy to favor local labor recruiting and services in neighboring communities.



Number of people from the area contracted / intended.

120



Local suppliers opportunities

To favor the generation of local employment and productive activities in the area

Company policies, principles of the Good Neighbor, preference for local supplier, suppliers' classification according to municipality of headquarters location



Number of effective local suppliers / intended

Community's income improvements

To favor the generation of local employment and productive activities in the area

Salaries and benefits periodical surveys in the region and per sector to maintain competitive wages. Preference for local labor and suppliers. Encouragement to alternative productive initiatives

Ricardo Pérez, David Torin

April, October, and December.

Company and workers

Positive results of surveys carried out. Number of people from the area hired / intended. Number of local suppliers / intended. Number of negotiations for cooperatives creation encouragement

Tourist activity increase To favor tourist use of certain areas intervened or modified by operations

A feasibility study will be carried about out about tourist and business use regarding the dam

Juan Carlos Cuenca, Luis Espinoza, Ricardo Pérez

Semester 1 year 2006

Neighbors from the region Study carried out

Tourist activity decrease

To develop strategies directed to minimize possible negative consequences of operations on tourist activity

A feasibility study will be carried about out about tourist and business use regarding the dam

Juan Carlos Cuenca, Luis Espinoza, Ricardo Pérez

Semester 1 year 2006

Neighbors from the region Study carried out

121



Agricultural activity recent rise

Incentive to agricultural productive initiatives

Company policy regarding the agricultural vocation of the communities, incentive to create tree nurseries and cooperatives and to sustainable development

Luis Espinoza, Wilmer Pérez, Juan Carlos Cuenca, Jesús Sánchez


Number of agricultural productive initiatives supported in their creation and / or operations

Weakened agricultural activity occupation

To foster actions directed to buy nutritious products from the area and to stimulate the rural production

Attempt of purchase products of the area, reforestation campaigns, encouragement to rural producers organization of

Jesús Sánchez, Luis Espinoza, David Torino Permanent

Communities of Tiara, Altagracia and Las Tejerías

Volume of purchases of products from the area. Number of agricultural productive initiatives supported in their creation and / or operations

Time in family enjoyment restrictions

To develop actions directed to efficiently combine company staff labor performance with the right to the rest and enjoy free time

Execution of the Norma SA 8000 that regulates work conditions and internal control policies

Ricardo Pérez, Mary Prado Permanent Workers and their

families

Level of workers' performance. Level of work conditions. Compliance with regulations. Number of complaints from workers and unions.

122



Social security coverage / labor stability

To offer fair and competitive socioeconomic conditions to workers

Company procedures, collective contract, benefits superior to the obligations, emphasis in execution of labor legal obligations from contractors

Ricardo Pérez, Ramón Sandoval, Jesús Sánchez

Permanent Workers, families and contractors

Collective contract execution. Compliance with statutory obligations. Follow up on contractors labor obligations.


Social infrastructure Improvement

To contribute with the life conditions improvement of communities from operations area of influence

1. Tiara Parish Board remodeling. 2. Construction of deep well of water in Tiara. 3. Epidemiological camp recovery and annual contribution to MSDS for payment of salaries and benefits of staff. 4. Payment of salaries and benefits to physician and nurse, maintenance and operations of Tiara and La Esperanza public clinics. 5. Negotiation before CADAFE to use electric substation service from community. 6. Sport court remodeling. 7. La Victoria High School court sport maintenance.

Luis Espinoza, Juan Carlos Cuenca Permanent

Communities of Tiara and Altagracia de la Montaña

Reports to the MEM, MSDS, remodeling works executed / intended and budget executed / intended

123



Road accidents increase

To guarantee the main road maintenance in order to mitigate potential impacts from operations

Performance of road mending works, gutters and gabions maintenance


Permanent Communities of influence area, workers

MLdN budgetary execution and reports to MEM

Roads construction and maintenance

To guarantee the main road maintenance in order to mitigate potential impacts from operations

1. MLDN area maintenance through contractors - Tiara. 2. Agreement with INVITRAMI so that it assumes maintenance (from ARC to MLDN) in negotiation.

Juan Carlos Cuenca, Regis de Padua, Marco Almeida

Permanent Communities of influence area, workers

MEM inspections

Roads deterioration Recovery of local road 002 when concluding the plant construction

Performance of road mending works, gutters and gabions maintenance

Luis Espinoza Year 2000 Tiara and Altagracia de la Montaña


Goods and services prices increase

To grant benefits to MLdN workers that favor their life quality conditions

Distribution of food stamps ("cesta tickets")

Ricardo Pérez, Ramón Sandoval and Juan Carlos Cuenca

Permanent MLdN workers Budget executed

Properties price increase Not being considered

124



Environment

Natural resources decrease

To guarantee operations in harmony with the environment and communities of the area of influence

MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN.

Luis Espinoza and Wilmer Pérez Permanent

People from Tiara and Altagracia de la Montaña, workers

Reports to MARN, MSDS, Anglo American and World Bank

Conflicts with community for access to natural resources


MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN; submittal of reports to MARN, Anglo and World Bank, periodic meetings with the community




Decrease of lands available for commercial activities /subsistence

To guarantee resettlement of population affected by activities startup

Compensation and support for resettlement Juan Carlos Cuenca Beginning the

construction Population relocated

Payments made by compensation

125





MLdN policies, environmental monitoring programs, environmental supervision and follow up plan, intervened areas recovery, all under the surveillance of MARN; submittal of reports to MARN, Anglo and World Bank




Belief of pollution from community

To develop a communicational policy oriented to show the efforts and results of operations with regard to environmental preservation

Reports in regional press, wide convoking and periodic meetings with the community for information on operations, performance of biodiversity survey, environmental supervision and follow up plan

Luis Espinoza, Juan Carlos Cuenca, Ricardo Pérez, Gema Mújica

Permanent People from Tiara and Altagracia de la Montaña

Number of meetings with the community, number of meetings attendants, studies carried out, reports to MARN

126




To develop a communicational policy oriented to show the efforts and results of operations with regard to environmental preservation

Reports in regional press, wide convoking and periodic meetings with the community for information on operations, performance of survey on biodiversity and effects of nickel dust on vegetation development; environmental supervision and follow up plan

Luis Espinoza, Juan Carlos Cuenca, Ricardo Pérez, Gema Mújica

Permanent People from Tiara and Altagracia de la Montaña

Number of meetings with the community, number of meetings attendants, studies carried out, reports to MARN

Crime and disorder

Delinquency increase To collaborate with official agencies of the region in public security enforcement

Cession of premises in commodatum and remodeling La Mata guard post. Agreement for patrol car maintenance, delivery of food stamps (cesta tickets) to officials, daily food service, and donation of telecommunications equipment. Negotiations for similar agreement with KM 54 Guard post



Budget executed / programmed

127



Workers' vulnerability to criminal activities

To favor workers' safety conditions

Payroll deposit in bank account, staff transport service in routes near to their residences

Ramón Sandoval Permanent Workers Decrease of criminal activities against workers

IMPACTS IDENTIFIED BY STAKEHOLDERS AND STAFF

Labor activity and revenues increase. Creation of tree nurseries and sowing through Altagracia community micro-businesses and schools. Oxygen improvement and species recovery

To guarantee the recovery of areas intervened by means of a strategy that favors the generation of labor activity and income to the communities of the influence area

Maintenance and development of the forest. Sowing species of commercial and landscaping value like a contribution to the area of influence sustainable development.

Luis Espinoza, Wilmer Pérez Permanent Company and

small producers

Number of plants sowed, number of plants bought to tree nurseries, reports to MARN

More availability of water and possible use by other areas, if they were connected to the Tiara Parish’s net

To contribute with the access to water from community

1. Effective construction of deep well of water 2. Support to community negotiations before competent entity

Luis Espinoza and Juan Carlos Cuenca Year 2005 Tiara Parish New sectors of Tiara

with access to water

Establishment of the epidemiological control base for Aragua and Miranda

To contribute with the sanitary authorities in the performance of the epidemiological control in the region

Recovery of epidemiological camp and annual contribution to MSDS for payment of staff salaries and benefits

Luis Espinoza Permanent

People from area of influence (Aragua and Miranda)

MARN Inspection

128




To support the administration of the Tiara public health unit to contribute in the improvement of the community health conditions

Annual contribution to CORPOSALUD for payment of salaries and benefits to Tiara public clinic staff. Maintenance and operations.

Juan Carlos Cuenca Permanent Tiara and near communities

MEM inspection, reports to Corposalud


To support the administration of La Esperanza public health unit to contribute in the improvement of the community health conditions

Annual contribution to CORPOSALUD for payment of salaries and benefits to La Esperanza public clinic staff. Maintenance and operations.

Juan Carlos Cuenca Permanent La Esperanza and near communities

MEM inspection, reports to Corposalud

Improvement in education coverage and quality. Improvement of power supply of the whole sector.

To support the administration of Los Bagresschool

Annual payment to Miranda Gov. for salaries and benefits of Los Bagres school staff. Direct contribution to maintenance and operations. Classrooms construction will continue up to 9th grade.

Juan Carlos Cuenca Permanent Los Bagres school educational community

Number of children assisted, classrooms built, budget executed / programmed

Decrease of accidents, greater easiness for transportation of agricultural and poultry products

To guarantee roads maintenance

Contracting micro-businesses of the community for maintenance of road Tiara - MLdN


Permanent Tiara, Altagracia de la Montaña, MLdN


129



Decrease of accidents, greater easiness for agricultural and poultry products transportation


Recovery of the local road 002 between Altagracia and La Esperanza through contractor of the area.





Decrease of accidents, greater easiness for agricultural and poultry products transportation


80% local recruiting from contractor for construction and road maintenance from Km. 54 ARC to the plant .In negotiation, agreement with INVITRAMI so that it assumes maintenance.


Permanent Tiara, Altagracia de la Montaña, MLdN

MLdN budgetary execution

Improvement of public security

To collaborate with public security enforcement from official agencies of the region

Agreement with Aragua police: patrol cars maintenance, cesta tickets to officials, daily food, donation of telecommunications equipment to La Mata's police module and negotiations to establish similar agreement with KM 54 guard post.




130



Channeling workers' social collaboration interest. Strengthening the DVC fund for investments. Improvement in the communities health and educational infrastructure

To support the administration of the Dividendo Voluntario para la Comunidad (Voluntary Dividend for the Community) and to facilitate Company workers compliance with social responsibility

Participation in DVC volunteer contributions program through payroll


MLdN workers, children, youngsters and elders beneficiaries of projects supported through the DVC

DVC report's, number of projects supported, number of projects beneficiaries

Productive employment generation. Establishment of basis for sustainable development by means of products sales to other organizations. Improvement in local labor training.

To promote the creation and consolidation of cooperatives as a mechanism for employment opportunities diversification, income and training improvement.

Promotion and support to cooperatives. Purchase contracts (potential) with beneficiaries


Small producers from Tiara and Altagracia de la Montaña

Cooperatives constituted and operative, budget executed / programmed

Improvement of life quality and employment level

To favor the diversification of training and employment opportunities for Tiara and Altagracia communities

Staff training and certification of local labor qualification together with INCE. To give preference to neighbors as INCE assistants and apprentices. Informal agreement with contractors

Juan Carlos Cuenca Permanent Tiara and Altagracia de la Montaña

Number of staff members qualified, number of assistants, number of apprentices INCE

131



Availability of appropriate places for community organization and educational activities

To favor community organization and participation

Remodeling Tiara Parish Board Juan Carlos Cuenca Activity

accomplished Tiara Effective remodeling, budget executed / programmed

Improvement of health coverage and quality

To support the administration of health services by taking care of punctual petitions

Supplying tires and ambulances repair

Luis Espinoza, Juan Carlos Cuenca, Gema Mújica and Ricardo Pérez

Permanent Tiara and Altagracia de la Montaña

Effective donations, budget executed / programmed

Potential use of the service in Tiara and Altagracia

To contribute with the improvement of basic services coverage and quality in Tiara and Altagracia

Donation of the electric substation to CADAFE. To support the community in their negotiations before CADAFE for the potential use of the electric substation

Juan Carlos Cuenca Year 2005 Tiara and Altagracia de la Montaña

Effective electric connection

Contribution to family well-being in Christmas time

To collaborate with family well-being through punctual donations

Donation of food baskets in Christmas time

Juan Carlos Cuenca, Ricardo Pérez


Low income families from Tiara


Improvement of sport practice conditions in Tiara and La Esperanza. Prevention of criminal activities

To favor the performance of sport activities in the communities

Remodeling and maintenance of 7 sport courts by means of the attention of punctual donation petitions

Juan Carlos Cuenca and Ricardo Pérez Permanent Tiara, Altagracia,

Las Tejerías,

Effective remodeling, budget executed / programmed

132



Improvement of educational endowment and quality

To contribute with the administration of Altagracia Evaristo González Palma High School

Donation of equipment and educational materials


Altagracia de la Montaña Educational Community



To strengthen the relationships with the community and to support educational administration

Collaboration with graduation act of Tiara high school promotions

Juan Carlos Cuenca Activity accomplished

Tiara High School Educational Community

Effective donation, budget executed / programmed

Identification of problems and alternatives analysis from community.

To favor the construction of communities capacities for self-management of their needs

Contracting NGO Acción Campesina for performance of projects evaluation workshops

Juan Carlos Cuenca and Ricardo Pérez

Semester 2 years 2004 and 2005


Workshops carried out, number of workshop attendants, number of projects formulated and negotiated, budget executed / programmed

Improvement of life quality of workers and families and positioning MLdN as a highly competitive company

To offer the workers fair and competitive remunerations with arrangement to the law

Execution of collective contract and additional benefits

Ricardo Pérez Permanent Workers and company


133

The purpose for the F tool -"Increasing local procurement and outsourcing to support local business development"- is to increase new suppliers opportunities before goods and services demand from operations, since local provisioning capacity is not always enough and possible options range offered by the company has not been sufficiently explored. Table F1.2, "Local suppliers’ evaluation", made easier for the Staff to analyze potential business and products that could be provided by new suppliers. The information available only allowed completing those table columns related as to whether the production is useful for MLdN and whether appropriate volumes for operations requirements are being produced. The Staff shall complete the rest of the information (competitive costs, acceptable quality, suppliers' trust and general production fitness) once relevant inquiries are carried out.

134

TABLE F1.2. LOCAL SUPPLIERS EVALUATION

BUSINESS AND PRODUCTS PRODUCTION

USEFUL FOR MLDN YES / NO

ADEQUATE VOLUMES YES / NO

COMPETITIVE COSTS YES / NO

ACCEPTABLE QUALITY YES / NO

SUPPLIER'S TRUST ACCEPTABLE

YES / NO

GENERAL FITTING HIGH / MEDIUM / LOW

Uniforms manufacture (Altagracia de la Montaña) Yes Yes To be determined To be determined To be determined To be determined

Provisions purchase for the refectory (Tiara and Altagracia de la Montaña) Yes Yes To be determined To be determined To be determined To be determined

Enrollment and termination medical examinations for contractors' employees and workers (Las Tejerías and La Victoria)

Yes Yes To be determined To be determined To be determined To be determined

Office supplies (Las Tejerías, Los Teques and La Victoria) Yes Yes To be determined To be determined To be determined To be determined

Purchase of educational supplies (Las Tejerías and Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Engines rewining (Las Tejerías, Los Teques and La Victoria) Yes Yes To be determined To be determined To be determined To be determined

135







YES / NO


Production of mechanized and metal-mechanic parts (Las Tejerías, Los Teques and La Victoria)


Storage of spare parts and materials for operations (Las Tejerías and La Victoria) Yes Yes To be determined To be determined To be determined To be determined

Technical training INCE (Los Teques, Las Tejerías and La Victoria) Yes Yes To be determined To be determined To be determined To be determined

Purchase of painting to the manufacturer (Las Tejerías) Yes Yes To be determined To be determined To be determined To be determined

Purchase of liquefied gas (Las Tejerías) Yes Yes To be determined To be determined To be determined To be determined

International courier service (Las Tejerías) Yes Yes To be determined To be determined To be determined To be determined

Purchase of medications (Las Tejerías, La Victoria, Maracay, Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Hardware and construction materials (sheets, beams, angles) (La Victoria, Los Teques) Yes Yes To be determined To be determined To be determined To be determined

136







YES / NO


Purchase of electric and electronic materials (La Victoria and Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Purchase of supplies for medical care services (Los Teques, La Victoria) Yes Yes To be determined To be determined To be determined To be determined

General and pediatric medical consultations (Las Tejerías) Yes Yes To be determined To be determined To be determined To be determined

Purchase of cleaning supplies (La Victoria, Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Purchase of screws, valves and minor spare parts (La Victoria and Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Industrial maintenance services contractors (Maracay, La Victoria, Los Teques) Yes Yes To be determined To be determined To be determined To be determined

Engineering and construction contractors (Maracay, Los Teques, La Victoria) Yes Yes To be determined To be determined To be determined To be determined

Contractors of administrative, managerial, legal consultancy, accountant and educational activities (Maracay and Los Teques)


137

2005 – 2007 SOCIAL INVESTMENT PLAN MINERA LOMA DE NÍQUEL C.A.

Drawing up the 2005-2007 Social Investment Plan for Minera Loma de Níquel C.A. is framed within the company concern as to have a tool enabling focusing on and maximizing results had by social investment made, both towards its workers and their families and the community within its area of influence. This Plan has been prepared as part of Phase 3 of the Socio Economic Assessment Toolbox / SEAT methodology, with which the Anglo American Group intends to understand impacts form its operations from the perspective had by the various stakeholders involved in order to minimize negative consequences and maximize potentials. The reference frame is given by Minera Loma de Níquel C.A. social investment policy which has been formulated as follows: “Minera Loma de Níquel C.A. social investment policy is oriented to promote sustainable development and to build human and social capital through initiatives addressed to enhance life quality of its workers, their families and communities, by performing a portfolio of projects managed under such values as transparency, involvement, co-responsibility, networking, excellent management, equity, justice and solidarity, being all within the frame of Anglo American”. “Good Corporate Neighbor Principles” and “Managerial Principles” Good Neighbor Principles emphasize the need to build strong relationships and commitments with communities and NGO’s, taking as a basis the support to high priority projects and local business development, promoting equity and non-discrimination for work; helping to search for long term and mutually beneficial relations with customer and partners; effectively handling land and biodiversity by preventing or mitigating any adverse effect from operations; seek an optimal balance between economic, social and environmental development, and honor the laws of each country while being socially responsible. “Managerial Principles” are geared around commitment, risk evaluation, control and prevention, performance and evaluation, showing the importance of allotting resources in order to ensure and reflect the high priority had by social issues, while identifying, prioritizing and evaluating risks related to operations and prevent them by planning and managing job procedures, setting adequate goals, objectives and performance indicators, and monitoring, checking and confirming operations managerial effectiveness. 2005-2007 Social Investment Plan is the tool to make such principles operative, in addition to the utmost importance given by Anglo American to design strategies and activities intended to contribute generating human capital and social capital, being both determined by the nutrition, health and education degree had by people, and the trust, reciprocity and richness levels featured by the social mesh. All and any investment focused on such terms shall be a contribution, not only to enhancing the economic and social welfare but also to mature public awareness and community involvement, democratic stability and the strengthening of governance conditions. Its design is based on the profile, needs and expectations had by the Tiara and Altagracia de la Montaña communities, operations impacts from perspectives had by managers, workers, communities, authorities and other stakeholders, commitment derived by statutory obligations (Mining Titles, Environmental Impact Study, cooperation project with CONACUID, collective contract) and recording and analyzing the social investment made up to this date.

138

The Plan is structured around seven focal areas: Education, Environment, Productive Development, Infrastructure, Social Economic Benefits, and Institutional Strengthening. And these areas do operate in two dimensions: an internal one referring to strategies and actions intended to protect and develop Minera Loma de Níquel workers, and an external one intended to bring contributions to communities within the operations area of influence. Each area comes to be the organizational criteria for several programs and/or projects which, in their turn, comprise the following categories Activities, Managerial Objective, Managerial Measure, Responsible, Time/Frequency, Goals/Beneficiaries, Performance Indicators and Report Type and Frequency. Likewise, each project is displayed in a format designed to record the relevant performance showing performance indicators for each Plan year. All the information included in the Plan was furnished by the Public Affairs Committee members and the Logistics Management representatives, and systematized as per conceptual and technical requirements set by the SEAT methodology. Likewise, it gathers the relevant information raised during Phase 1 of this methodology, which included a survey on impacts from operations, communities profile, as well as on needs and expectations. Mandatory activities are shown in white, the voluntary activities having higher priority (as per the analysis made) are highlighted in yellow, and those having the lower priority are highlighted in green, as a didactic resource to help reading the Plan. Estimates regarding some goals and costs shall be included on a further date, as it is still pending from Minera Loma de Níquel C.A.

139

EDUCATION AREA

140

FOCAL AREA EDUCATION PROGRAM / PROJECT WORKERS TRAINING PROGRAM

MANDATORY X

MINING TITLE

LABOR LEGISLATION COLLECTIVE CONTRACT

X

ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE VOLUNTARY

ACTIVITIES

MANAGERIAL OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME /

FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

REPORT TYPE /

FREQUENCY

Inte

rnal

dim

ensi

on

Performance and evaluation

Professionalization of Human Resources, both formal and in the work place, and operations quality preservation

To guarantee appropriate operationalization of Human Resources policies regarding training and development

Ricardo Pérez Ramón Sandoval

Annual

2005 464,697

xx workers xx activities xx hours

Training activities carried out / intended. No. of hours given / intended. No. of people qualified / intended. Budget programmed / executed

Quarterly Performance Reports

PERFORMANCE RECORD No. Activities carried out No. Hours given No. People qualified Budget executed Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

141

FOCAL AREA EDUCATION

PROGRAM / PROJECT EXPERIENCE VALIDATION PROGRAM

MANDATORY

MINING TITLE


ENVIRONMENTAL IMPACT STUDY

CONACUID

NATURE

VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

REPORT TYPE /

FREQUENCY

Inte

rnal

dim

ensi

on

Program design, Performance and evaluation

To contribute to authenticate workers experience as to obtain an officially certified medium or superior technician degree, by designing a curriculum to be supported by an educational center

To establish alliances, to guarantee financial resources and cooperate in the design, organization and coordination of the Program

Ricardo Pérez

Year 1: Design Year 2:

Preparation Year 3

Performance

xx workers

Program performed / intended No. of attendants No. Certifications obtained Budget executed / programmed

Performance report

PERFORMANCE RECORD

No. of attendants No. and type of certifications obtained

Budget executed

Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

142

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

SCHOLARSHIPS PROGRAM

MANDATORY

MINING TITLE LABOR LEGISLATION COLLECTIVE CONTRACT

X

ENVIRONMENTAL IMPACT

STUDY

CONACUID

NATURE VOLUNTARY

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND FREQUENCY OF REPORT

Inte

rnal

dim

ensi

on To select

beneficiaries and follow up on their compliance regarding Scholarships Program

To stimulate the workers qualification enhancing through scholarships granting, to follow superior and language studies, both through individual and collective contract

To implement the criteria of scholarships granting, monitor beneficiaries performance and guarantee financial resources for Program development

Ramón Sandoval Annual xx workers

Scholarships granted / programmed Type of studies followed Studies completed / initiated Budget executed / programmed

Record and Performance report

PERFORMANCE RECORD

No. scholarships granted Type of studies followed No. studies completed Budget executed


143

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

COMPETENCIES IDENTIFICATION AND TALENT MANAGEMENT PROGRAM

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Inte

rnal

dim

ensi

on

To performance and evaluate the Program

To contribute developing university graduate employees' talents and vocations, thus improving their promotion possibilities and the quality of their contribution to operations, by applying a competences model

To guarantee human, physical and financial resources to develop the Program and coordinate performance

Ricardo Pérez

Annual

xx workers

Program developed / intended No. of attendants / intended Budget executed / programmed

Human Resources Management Performance report

PERFORMANCE RECORD

Program developed No. of attendants according to area of origin Budget executed Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

144

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

INTERNATIONAL APPRENTICESHIPS PROGRAM

MANDATORY X



STUDY

CONACUID NATURE

VOLUNTARY

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on To organize

and carry out the Program with arrangement to Anglo American policies

To take part in the International Apprenticeships Program coordinated by Anglo American with European universities to foster high studies in geology, mining and metallurgy

To coordinate the curriculum and financial performance of apprenticeships in MLdN and monitor and take care of the assistants

Ricardo Pérez Annual

To have at least 1 student from a European university per year

Apprenticeship carried out / intended. Budget programmed / executed

Reports to Anglo

PERFORMANCE RECORD

Assistants origin (Country / University) No. assistants Budget executed Performance indicators 2005

Performance indicators 2006


145

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

ASSISTANTS AND DEGREE CANDIDATES PROGRAM

MANDATORY

MINING TITLE

X LABOR LEGISLATION

COLLECTIVE CONTRACT


CONACUID

NATURE

VOLUNTARY

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Sending communications to study centers Channeling applications Beneficiaries' selection (when they are not enough, employees and communities institutes applications will be prioritized) Performance and evaluation Involvement in Mining Engineering Schools Council / UCV.

To contribute with the training of technicians in areas of interest for operations through assistants recruiting, with preference to those coming from UCV and from of Geology and Mines careers.

To guarantee compliance with obligations derived from Mining Titles in regard to assistants and degree candidates training

Juan Carlos Cuenca Annual

24 assistants per year (2 per each concession), mining technical institute students from Táchira, Merida, Bolivar and Human Resources from Aragua and Miranda.

No. assistants incorporated / intended No. of degree candidates Budget executed / programmed

Human Resources Dept. Reports Report submitted to the MEM

PERFORMANCE RECORD

No. of assistants and origin (educational center) No. degree candidates Budget executed Performance indicators 2005 Performance indicators 2006


146

FOCAL AREA EDUCATION

PROGRAM / PROJECT MEDIUM LEVEL TECHNICAL TRAINING CENTER

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS

PERFORMANCE INDICATORS


Exte

rnal

dim

ensi

on

To make possible cooperators aware of the issue To carry out a feasibility study To help preparing infrastructure works and academic activities To support Program Performance

To help creating a medium level technical training center in Las Tejerias or in Altagracia for training in administrative, industrial, or agricultural jobs, jointly with the Government, Santos Michelena Municipality, and INCE.

To jointly progress the study and focus on concreting the project, allowing to offer opportunities especially to youngsters from Tiara and Altagracia de la Montaña

Juan Carlos Cuenca

Year 1 Exploration, sensitization, contents design Year 2 Infrastructure preparation, teachers selection Year 3 Beginning of activities

1 feasibility study Appropriate infrastructure 1 Program under performance

Feasibility study carried out Cost executed / cost programmed Available infrastructure Teachers selected

Progress Reports Study final report

PERFORMANCE RECORD

Feasibility study carried out Budget executed


147

FOCAL AREA EDUCATION PROGRAM / PROJECT

LOCAL LABOR CERTIFICATION PROGRAM THROUGH INCE

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on

To divulge information about the Program and support the candidates selection

To favor the formal recognition of local labor qualification

Informal agreement with contractors


$10,000 (to verify year)

xx contractors employees

No. of employees certified / intended Certification area

To be determined

PERFORMANCE RECORD

No. de attending employees per contractor Certification Area Performance indicators 2005



148

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

TRAINING AND ACCOMPANIMENT FOR THE COMMUNITY ADMINISTRATION STRENGTHENING

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS



Replication of needs identification workshops and formulating projects in other areas and regions by using specific methodology

To favor the methodology replication with support from entities like CAF or World Bank

Contracting NGO Acción Campesina

Ricardo Pérez Juan Carlos Cuenca

Annual

xx workshops xx people qualified

No. of workshops carried out / intended No. people qualified / intended No. of projects formulated Budget executed / intended

Acción Campesina Reports according to contract terms

Exte

rnal

dim

ensi

on

Delivery of leaders training workshops

To contribute to community leaders' detection and development

Contracting NGO Acción Campesina


Annual

xx workshops xx people qualified

No. of workshops carried out / intended No. People qualified / intended Budget executed / intended

Acción Campesina Reports according to contract terms

PERFORMANCE RECORD

Project formulation workshops Leaders training workshops

No. workshops

No. attendants. No. projects Budget executed No.

workshops No. attendants Budget executed




149

FOCAL AREA EDUCATION PROGRAM / PROJECT SUPPORT TO SCHOOLS ADMINISTRATION

MANDATORY

X

MINING TITLE

X

LABOR LEGISLATION COLLECTIVE CONTRACTING

ENVIRONMENTAL

IMPACT STUDY

X

CONACUID

NATURE VOLUNTARY

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Los Bagres school infrastructure extension up to 9th. grade

To guarantee human, financial and managerial resources

Juan Carlos Cuenca

First semester Year 1

2 classrooms built and equipped xx children assisted

Classrooms built / intended. No. children assisted / intended Budget programmed / executed

Reports to Miranda Government Education Direction and MEM

Annual payment of staff salaries and benefits and contribution to Los Bagres School maintenance and operation

To support Los Bagres school administration

To guarantee financial resources to comply with commitments derived from Mining Titles

Juan Carlos Cuenca

Annual

Budget executed according to items / intended No. children assisted / intended


Exte

rnal

dim

ensi

on

To develop recovery works in one of the two schools near the main road

To support the physical recovery of school

To guarantee human, financial and managerial resources

Juan Carlos

Cuenca

Year 1

1 school recovered

Works carried out / intended Budget executed / intended


150

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



To identify educational needs To determine support types To transfer materials and equipment To identify MLdN staff to offer training to computing equipment users

To support the libraries and computers centers administration in schools and high schools of operations area of influence communities in regards of the CONACUID Project

To coordinate needs detection and materials and equipment transfer to communities schools

Juan Carlos Cuenca

According to needs

identification


According to needs identification

Educational materials supplied / intended No. of computers equipment supplied / intendedSchools benefited No. of users of materials and equipment Budget programmed / executed

Reports to Aragua and Miranda Governments Education Directions

PERFORMANCE RECORD

Support to Los Bagres School Support to physical recovery of school

Support to library and computers centers administration No.

Classrooms built

No. children assisted

Budget executed

School identification

Type of Works

carried out

Budget executed

Materials donated

Equipment supplied

Schools benefited

No. beneficiaries

Budget executed




151

FOCAL AREA

EDUCATION

PROGRAM / PROJECT

DONATIONS FUND

MANDATORY

MINING TITLE COLLECTIVE CONTRACTING LABOR LEGISLATION


STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on

Channeling petitions and granting donations

To answer punctual petitions made by the area of influence educational communities focused on improving materials availability, to support specific events and activities in schools

To guarantee funds / goods to take care of punctual petitions according to donations granting criteria


No. of donations granted Budget intended / executed

Biannual report

PERFORMANCE RECORD

No. and type of donations Budget executed Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

152

HEALTH AREA

153

FOCAL AREA

HEALTH

PROGRAM / PROJECT

PURCHASE OF WORK SAFETY EQUIPMENT AND ACCESSORIES

MANDATORY

MINING TITLE



CONACUID

NATURE

VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Inte

rnal

dim

ensi

on

To purchase equipment and to watch over its appropriate use

To put equipment and accessories that guarantee health and life preservation available for workers

To guarantee the timely purchase of good quality safety equipment and its appropriate use by workers

Luis Espinoza José Luis García

Annual

xx equipment acquired xx workers users

No. workers users / total workers No. of accidents associated to purchase of inadequate equipment No. of accidents associated to inadequate use of equipment / intended. Budget executed / programmed

Reports according to performance indicators

PERFORMANCE RECORD

No. of users No. accidents for inadequate equipment

No. accidents for inadequate use Budget executed


154

FOCAL AREA

HEALTH

PROGRAM / PROJECT

WORKERS' HEALTH PRESERVATION AND MEDICAL CARE

MANDATORY

X

MINING TITLE LABOR LEGISLATION

COLLECTIVE CONTRACT

X


CONACUID

NATURE

VOLUNTARY

X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


To organize and to watch over the appropriate performance of enrollment, annual and termination medical examinations

To preserve and render health care to workers through medical examinations in accordance to commitments derived from the labor legislation and agreements with MSDS

To guarantee funds to pay enrollment, annual and termination medical examinations and coordinate their performance

Luis Espinoza

Annual

12,500 (to verify year)

xx workers per year

No. of examinations carried out / intended No. of workers users / intended Budget executed / programmed

Biannual reports

Inte

rnal

dim

ensi

on

To organize, divulge information and develop the addictions elimination voluntary program

To contribute to improve workers' health through their participation in the voluntary Program for tobacco, alcohol and drugs addiction elimination / CONACUID

To guarantee the funds and handle the addictions elimination voluntary Program

Luis Espinoza

Annual

1 program per year / workers

Programs executed / intended No. of workers attending Budget executed / intended

Performance report

155

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


To organize, divulge information and develop the High Blood Pressure voluntary Program

To preserve the human capital and contribute to improve workers' health through their voluntary participation in the High Blood Pressure voluntary Program

To guarantee funds and manage the High Blood Pressure voluntary Program

Luis Espinoza

Annual



Performance report

To organize, divulge information and develop the HIV / AIDS scanning voluntary Program

To preserve the human capital and contribute to improve workers' health through their voluntary participation in the HIV / AIDS scanning voluntary Program

To guarantee funds and manage the HIV / AIDS scanning voluntary Program

Luis Espinoza

Annual



Performance report

To organize, divulge information and develop the cervical cancer scanning voluntary Program

To preserve the human capital and contribute to improve workers' health through their voluntary participation in the cervical cancer scanning voluntary Program

To guarantee funds and manage the cervical cancer scanning voluntary Program

Luis Espinoza

Annual



Performance report

156

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


To organize, divulge information and develop the vaccination Program

To preserve the human capital and contribute to improve workers' health through their participation in the vaccination Program

To guarantee funds and manage the vaccination Program

Luis Espinoza

Annual


Programs executed / intended No. of MLdN and contractors' workers Budget executed / intended

Performance report

Inte

rnal

dim

ensi

on

To identify issues of interest; prepare materials; organize chats;

To contribute to make workers' aware of the importance of health care and their knowledge about specific issues

To guarantee funds and manage health informative campaigns addressed to the workers

Luis Espinoza Annual

xx annual informative campaigns / xx workers

No. of campaigns developed / intended No. of workers informed Budget executed / programmed

Report per campaign carried out

157

PERFORMANCE RECORD

Enrollment, annual and termination medical examinations Addictions elimination voluntary Program

No. and type of examinations

carried out

No. of workers users

Budget executed Program executed No. of attending workers Budget executed


Hypertensive voluntary Program HIV /AIDS scanning voluntary Program

Program executed

No. of attendants

Budget executed Program executed No. of attendants Budget executed




Cervical cancer scanning Vaccination Program

Program executed

No. of attendants

Budget

executed

No. of MLdN and contractors workers Budget executed


158

PERFORMANCE RECORD



Informative campaigns

No. of campaigns developed No. of workers informed Budget executed




159

FOCAL AREA HEALTH

PROGRAM / PROJECT DRUG USE PREVENTION PROGRAM

MANDATORY

X


COLLECTIVE CONTRACT


CONACUID

X

NATURE

VOLUNTARY

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Contracting telephone service Línea Abierta of the NGO CenterGrupo

Contracting telephone line service

Juan Carlos Cuenca

Permanent

Workers

No. and type of users No. and type of surveys Budget executed / programmed

Quarterly report according to indicators

Hold awareness workshops against drug usage for workers

Contracting NGO for workshops design and dictation

Juan Carlos Cuenca

Annual

xx workshops xx workers made aware

No. workshops held / programmed No. attendants / intended Budget executed / programmed

Performance report according to contracting terms

Inte

rnal

and

ext

erna

l dim

ensi

ons

Printing messages against drug usage in uniforms, towels, transport units and food stamps (cesta tickets)

To create awareness, render care and rise the levels of information and knowledge of workers, community members and general society about the importance of preventing drug usage

To coordinate steps and agreements to print messages


$ 1,562 (cesta tickets printing)

Workers Communities General Society

No. towels printed No. uniforms printed No. transport units carrying the messages No. potential beneficiaries Budget executed / programmed

Report of activities carried out

160

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Hold awareness workshops against drug usage addressed to workers' families

Contracting of NGO for workshops dictation

Juan Carlos

Cuenca

Annual

$ 15,000 (to verify year)

xx workers' families


Report according to contracting terms

Hold awareness workshops against drug usage addressed to community schools and high schools teachers and students, neighbors associations and communities of from where employees come from

Contracting NGO for workshops



xx community schools and high schools teachers and students Neighbors associations members communities of from where employees come from


Report according to contracting terms

Exte

rnal

Dim

ensi

on

To identify NGOs and therapeutic entities that fight against drugs in the region and establish cooperative agreements

To create awareness, render care and rise the levels of information and knowledge of workers, community members and general society about the importance of preventing drug usage according to the CONACUID Project

To gather information about NGOs of the region and to foster cooperation alliances



NGOs MLdN General Community

Cooperation agreements established

Report of cooperation terms established

161

Performance record

CenterGrupo Telephone Line Workers awareness workshops

No. and type of users

No. and type of surveys Budget executed No. workshops

executed

No. and origin of attendants

Budget executed




Messages printing No. towels printed No. uniforms

printed No. transport units carrying

the messages No. beneficiaries Budget executed




Workers awareness workshops Performance indicators 2005 No. workshops held No. attendants Budget executed



162

FOCAL AREA

HEALTH

PROGRAM / PROJECT

WORK ENVIRONMENT FOLLOW UP AND CONTROL

MANDATORY

X


COLLECTIVE CONTRACT


X

CONACUID

NATURE

VOLUNTARY

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Inte

rnal

dim

ensi

on

Variables follow up and control

To preserve workers health

To manage the follow up and control system on variables related to worker's health in the work environment

Luis Espinoza Permanent Workers

To comply with legal liabilities on such matter set in Venezuela, and with the Anglo American normative. Specific indicators of the area

Reports to MARN, MEM and to Anglo American,

Performance record according to specific area instruments and requirements Performance indicators 2005



163

FOCAL AREA

HEALTH

PROGRAM / PROJECT

SUPPORT TO THE RAFAEL RANGEL EPIDEMIOLOGICAL CAMP

MANDATORY

X


COLLECTIVE CONTRACT


X

CONACUID

NATURE

VOLUNTARY

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Endowment and payment of staff salaries and benefits and operations

To contribute with the sanitary authorities in the epidemiological control of the region by building and endowing the Epidemiological Camp

To guarantee funds and timely transfer annual contributions to MSDS

Luis Espinoza Annual $50,000

Permanent Population of the states of Aragua and Miranda

Control of the bubonic plague MARN Inspection Specific indicators of the area

Reports to MARN and MEM

Performance record according to specific requirements Performance indicators 2005



164

FOCAL AREA

HEALTH

PROGRAM / PROJECT

SUPPORT TO HEALTH CENTERS ADMINISTRATION

MANDATORY

X

MINING TITLE

X


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Payment of salaries and benefits to Tiara public clinic doctor. Medications supply Minor civil maintenance

Improvement of health infrastructure, quality and coverage and epidemiological control by t supporting the administration of Tiara public clinic according to CONACUID Project

To guarantee resources to pay salaries and benefits, as well as medications supplies and minor maintenance works

Luis Espinoza Juan Carlos Cuenca

Annual

$26,000 (Tiara doctor / La Esperanza nurse) $25,000 (includes Tiara and La Esperanza)

People from the Tiara Parish and near communities. 4,800 annual health service care rendering activities

No. of people serviced. Payments made / intended Medications supplied / required Minor civil works performed / requested No. of complaints from the community

Reports to CORPOSALUD Reports to MSDS

165

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Payment of salaries and benefits to La Esperanza public clinic nurse. Minor civil maintenance

Improvement of health infrastructure, quality and coverage and epidemiological control by supporting the administration of La Esperanza public clinic according to CONACUID Project

to pay salaries and benefits, as well as minor maintenance works

Luis Espinoza Juan Carlos Cuenca

Annual

$26,000 (Tiara doctor / La Esperanza's nurse) $25,000 Includes Tiara and La Esperanza

Users of La Esperanza public clinic and near communities. 4

No. of people serviced. Payments made / intended Minor civil works performed / requested No. of complaints from the community

Reports to CORPOSALUD Reports to MSDS

Feasibility study about collaboration of the company for activation of bioassay and X rays laboratories and dentistry and maternity services in public or private health center of Las Tejerías

To contribute to strengthen health services offer by widening the health care services currently offered by centers of Las Tejerias, according to the cooperation project with CONACUID

To create awareness and motivate competent entities to jointly make the study to progress and focus on concreting the project

Luis Espinoza / Juan Carlos Cuenca

Year 1 2o. semester

1 feasibility study / Population in general and workers residing in Las Tejerías

Feasibility Study carried out Cost executed / cost programmed

Progress Report Final report

166

Performance record

Tiara Public Clinic La Esperanza Public Clinic Feasibility study

No. of people

serviced

Payments amount

Medications supplied

Minor works

No. of complaints received

No. of people

Payments amount

Minor works

No. of complaints

Study carried out

Amount executed




167

FOCAL AREA

HEALTH

PROGRAM / PROJECT

HEALTH COMMUNITY TRAINING

MANDATORY


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE

VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Hold courses on early childbearing and HIV / AIDS for instructors training, neighbors associations and workers' communities

To contribute to a better handling of the sexual and reproductive health on the part of Tiara and Altagracia de la Montaña teenagers and to the training of instructors in the area

Contracting NGO to hold courses


Annual $20,000 (to verify year)

Students of 5º. year of Tiara, Altagracia and Las Tejerias, neighbors associations and workers' community members

No. of courses held / programmed No. of instructors qualified / programmed Budget executed / programmed


Exte

rnal

dim

ensi

on

Hold workshops focused on formulating Life Projects for teenagers

To contribute to the strengthening of human capital and growth and development alternatives evaluation for youngsters, according to the cooperation project with CONACUID

Contracting NGO to design and hold workshops


Years 2 and 3 Annual

3 annual workshops 30 attendants

No. workshops carried out / programmed No. attendants / programmed No. projects of life formulated / elaborated Budget executed / programmed


168

PERFORMANCE RECORD

Courses on early childbearing and HIV / AIDS

Life Projects for Teenagers

No. of courses given No. of instructors qualified Budget executed No. workshops carried out.

No. attendants

Projects formulated

Budget executed




169

FOCAL AREA

HEALTH

PROGRAM / PROJECT

DONATIONS FUND

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY

X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on

Channeling petitions and donations granting

To answer punctual petitions had by educational communities of the area of influence directed to improve materials availability and support specific events and activities in schools

To guarantee funds / goods for to address punctual petitions according to donations granting criteria


No. of donations granted Budget intended / executed

Biannual report

PERFORMANCE RECORD

No. and type of donations Budget executed Performance indicators 2005



170

ENVIRONMENTAL AREA

171

FOCAL AREA

ENVIRONMENT

PROGRAM / PROJECT

REFORESTATION CAMPAIGN

MANDATORY

X

MINING TITLE

LABOR LEGISLATION


X

CONACUID

NATURE

VOLUNTARY

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Purchasing plants from people and micro-businesses of the area Sowing trees Organizing school and family tree nurseries Cultivating, sowing and reforestation campaign / CONACUID

To contribute to improve the oxygen emission and habitat and the recovery of original species, as well as increase labor activity by the linking with micro-businesses and tree nurseries organization

Maintenance and development of forest and raising plant species of commercial and landscaping value and as a contribution the area of influence sustainable development.


$24,000 (conservation of Mesia river high basin) $10,000 (staff in charge of MLdN tree nursery) $ 8,000 (to verify year)

Sowing of 3,000 trees per year

No. trees raised / intended No. of involved people No. of micro-businesses Budget executed / programmed Organized Tree nurseries

Reports with adjustment to indicators

PERFORMANCE RECORD

No. of trees raised No. of people involved No. of micro-businesses involved

No. of tree nurseries organized

Budget executed


172

FOCAL AREA ENVIRONMENT

PROGRAM / PROJECT ENVIRONMENTAL EDUCATION COURSES

MANDATORY

MINING TITLE COLLECTIVE

CONTRACTING LABOR LEGISLATION


CONACUID

NATURE

VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Designing and delivery courses in such areas as environmental impact, training of fire fighting rural brigades and voluntary environmental surveillance (VIVAS)

To contribute to train neighboring communities’ people in the legislation and regulations regarding environmental preservation

Contracting NGO for courses design and delivery


100 people coming from Tiara and Altagracia de la Montaña 3 annual courses

No. of courses delivered / courses intended No. of people qualified Budget executed / programmed

Performance report according to contracting terms Reports to MARN and MEM

Exte

rnal

dim

ensi

on

Hold an environmental journalism day for regional news people, jointly with MARN and the School of Journalists

To contribute to divulge issues and train news people in environmental matters

Organize the day and pay for costs

Luis Espinoza Year 1 1 Day Day carried out No. of attendants


PERFORMANCE RECORD

No. and origin of attendants Budget executed Performance indicators 2005

173

FOCAL AREA ENVIRONMENT

PROGRAM / PROJECT ENVIRONMENTAL FOLLOW UP AND SUPERVISION PLAN

MANDATORY

X


COLLECTIVE CONTRACT ENVIRONMENTAL IMPACT STUDY

X CONACUID

NATURE

VOLUNTARY

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

di

men

sion

Follow up and control variables (air, water, noise and soils). Report to the community and relevant stakeholders

To identify whether operations are causing damage and to take corrective measures advised by the follow up

To guarantee the follow up on activities with more frequency and rigorousness than demanded


Monitoring the whole variables protocol

Specific indicators according to area requirements


PERFORMANCE RECORD ACCORDING TO SPECIFIC TOOLS AND REQUIREMENTS




174

FOCAL AREA

ENVIRONMENT

PROGRAM / PROJECT RESEARCH REGARDING ENVIRONMENTAL PRESERVATION

MANDATORY


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS

PERFORMANCE

INDICATORS


Survey biodiversity within the area of influence

To detect autochthonous fauna or flora and develop conservation proposals

Contracting NGO to carry out the survey

Luis Espinoza

Annual

1 study

Survey carried out Budget executed / programmed


Exte

rnal

dim

ensi

on

Survey the effect of duct on the vegetation development Reports Survey results to the community

To demonstrate that operations don't generate noxious effects on vegetation

To guarantee necessary resources for the survey and arbitrate the means to report to the community

Luis Espinoza

Annual

1 study

Survey carried out Budget executed / programmed



Biodiversity survey Survey on dust effects Survey carried out Budget executed Survey carried out Budget executed

Performance indicators 2005:



175

FOCAL AREA

ENVIRONMENT

PROGRAM / PROJECT CREATE AN ENVIRONMENTAL INFORMATION AND DIVULGATION UNIT

MANDATORY

MINING TITLE COLLECTIVE

CONTRACTING LABOR LEGISLATION


CONACUID

NATURE

VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on Create awareness

in competent entities Design unit processes Prepare divulging material Unit start up

To divulge relevant environmental information regarding operations conditions and features and potential influence on the area

To design strategies to create awareness and build cooperation with competent entities and guarantee human, physical and operational resources for Unit operation

Luis Espinoza

Year 1 Sensitization and design Year 2 Installation

1 unit in operation

Alliances built Unit created Budget executed / programmed

Biannual Performance report


Performance indicators 2005: Alliances established Unit created and operating Budget executed



176

PRODUCTIVE DEVELOPMENT AREA

177

FOCAL AREA PRODUCTIVE DEVELOPMENT

PROGRAM / PROJECT SUPPORT NEW LOCAL SUPPLIERS DEVELOPMENT

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on Review areas

susceptible to outsourcing Identify and review potential suppliers Contact potential suppliers and evaluate their capacities

To contribute to the development of new local, regional and already consolidated national suppliers but not active in the MLdN suppliers record, and energize the productive activity around the company operational needs

To identify possible areas and suppliers and evaluate potential services contracting, with arrangement to technical and legal requirements

Jonny González

Annual New suppliers incorporation

No. of new suppliers Type of new services contracted

Suppliers record


No. and identification of new suppliers Type of services contracted


178


PROGRAM / PROJECT

ENCOURAGEMENT TO MICRO-BUSINESSES, COOPERATIVES AND SMALL BUSINESSES CREATION AND CONSOLIDATION

MANDATORY



STUDY

CONACUID

NATURE

VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Creation and operation of uniforms manufacturing cooperative


Years 1 and 2

1 cooperative created and in operation

Productive unit creation document Purchase of uniforms to the cooperative


Exte

rnal

dim

ensi

on

Creation and operation of a waste material recycling cooperative

To contribute to negotiate micro-businesses, cooperative and small businesses creation as a way to energize local economy and improving community life conditions

To foster negotiations to stimulate productive units creation and consolidation


Years 2 and 3 1 cooperative created and in operation

Cooperative creation document



Uniforms confection cooperative Waste material recycling cooperative

Cooperative creation Vol. of purchases to cooperative No. cooperatives created Vol. of material recycled Performance indicators 2005 Performance indicators 2006 Performance indicators 2007:

179


PROGRAM / PROJECT DAM OPERATION AND MAINTENANCE WITH PISCICULTURAL DEVELOPMENT PURPOSES

MANDATORY


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE

VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on

Sowing of species (cachama and coporo)

Preservation of the environment and fauna above the accepted requirements and with productive purpose

Purchase of species and organize and monitor the activity

Luis Espinoza

Year 3

Proposal design

To be determined

Sowing carried out / sowing programmed Proposal elaborated Budget executed / programmed

Report according to indicators


Volume of species sowing Proposal elaborated Budget executed Performance indicators 2005: Performance indicators 2006: Performance indicators 2007:

180

FOCAL AREA

PRODUCTIVE DEVELOPMENT

PROGRAM / PROJECT TOURIST USE OF DAM

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on To carry out a

study focused on evaluating on the medium and long term, the development of the dam tourist and business potential by third parties.

To energize the economic activity of the area, diversify work opportunities and contribute to improve neighboring communities income levels

Contracting Consultant Services to develop the study

Luis Espinoza Year 3

Proposal design

1 study Study carried out Progress Reports Final report


Study carried out Performance indicators 2006:

181


PROGRAM / PROJECT EXPERIMENTAL MODEL LAND LOT

MANDATORY


COLLECTIVE CONTRACT


CONACUID

NATURE

VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

di

men

sion

Design a land lot Purchase materials and species for cultivation Sowing cultivations Technical support to Tiara and Altagracia de la Montaña agricultural producers

To create or support the creation of an experimental model land lot to stimulate agricultural development in Tiara and Altagracia de la Montaña

To guarantee total or partial funds for the farming operation

Luis Espinoza Year 1 Permanent 1 model

parcel

Parcel created Type and volume of crops No. and type of technical supports



Crops type and volume No. and type of technical supports Performance indicators 2005: Performance indicators 2006:


182

INFRASTRUCTURE AREA

183

FOCAL AREA INFRASTRUCTURE PROGRAM / PROJECT WATER DAM OPERATION

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS



Exte

rnal

dim

ensi

on

Operation and maintenance of the dam. Water flow control

To guarantee constant water supply and quality, as well as the fauna preservation.

Pay for expenses. Environmental care measures coordination


Maintenance of appropriate water flow levels Fauna preservation follow up Budget executed / programmed Specific indicators




184

FOCAL AREA INFRASTRUCTURE

PROGRAM / PROJECT WATER TREATMENT PLANTS OPERATION

MANDATORY



STUDY

CONACUID

NATURE VOLUNTARY

X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Operation and maintenance of water treatment plants

To guarantee water quality regarding operations requirements

Payment of operation and maintenance expenses


Maintaining appropriate water quality levels Fauna preservation follow up Budget executed / programmed Indicators specific to the area




Performance indicators 2006 Performance indicators 2007

185


PROGRAM / PROJECT ELECTRIC SUBSTATION

MANDATORY


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on To carry out

negotiations with CADAFE to develop the necessary infrastructure Inform the community about negotiation results

To favor the use of the power supply service by Tiara and Altagracia de la Montaña communities

To develop negotiations jointly with community representatives

Juan Carlos Cuenca

Year 1 First

semester


Negotiations carried out Infrastructure built Power supply service extended to reach Tiara and Altagracia de la Montaña

Report of activity carried out

PERFORMANCE RECORD

No. and type of negotiations carried out Infrastructure built Power supply service extended to communities


186

FOCAL AREA INFRASTRUCTURE PROGRAM / PROJECT ROADWAYS

MANDATORY

X

MINING TITLE

X

COLLECTIVE CONTRACT

LABOR LEGISLATION


CONACUID

NATURE

VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS


Maintenance the main Tiara - MLdN road (road mending works, maintenance gutters, gabions).

To guarantee good conditions in major roads important for operations, to facilitate transport and contribute to trade products in compliance with commitments derived from Mining Titles

Contracting micro-businesses of the community for roads maintenance minor works


Permanent

2005 100,000

2006

50,000

2007 50,000

(paving)

Community of Tiara MLdN

Maintenance of the road under the best conditions for safe traffic and transport

Reports to MEM

Exte

rnal

dim

ensi

on

Negotiations before INVIALTA to determine collaboration mechanisms regarding the maintenance of local road 002

To voluntarily contribute to maintain a road of alternative use for operations and of central importance for the intra and inter parish l traffic

To develop negotiations jointly with representatives of the community

Juan Carlos Cuenca Year 1


Negotiations carried out Maintenance of the road under appropriate conditions for safe traffic

Record of activity carried out

187

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS


Road maintenance Negotiations before INVITRAMI to transfer maintenance of the new road Autopista Regional del Centro (Center Regional Freeway) - MLdN

To release operations from a responsibility whose performance doesn't correspond to it

To arbitrate the necessary mechanisms to guarantee negotiations success

Juan Carlos Cuenca Gema Mujica Regis de Padua

Year 1

Communities of Tiara, Altagracia, Villa de Cura and Tácata

Maintenance carried out Budget executed / programmed Maintenance transferred

Record of activity carried out Reports to MEM

PERFORMANCE RECORD

Main road maintenance Local 002 road maintenance ARC - MLdN road maintenance

Maintenance work carried out

Budget executed No. and type of negotiations carried out

Budget executed Budget executed Maintenance transferred




188

FOCAL AREA INFRASTRUCTURE PROGRAM / PROJECT SUPPORT TO SANITARY INFRASTRUCTURE IMPROVEMENT

MANDATORY


ENVIRONMENTAL

IMPACT STUDY

CONACUID

NATURE VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on To contribute to prepare a

health infrastructure improvement project (potable water supply, gathering of waste and handling excretions disposition) and explore financing sources

To contribute to improve life conditions and quality of Tiara and Altagracia de la Montaña communities

Contracting Consultant Services to develop the study

Luis Espinoza

1 year Year 2 (Diagnosis project and solutions) Year 3 To explore financing sources

1 project prepared

Project prepared Financing obtained Works initiated

Project report Report of activities carried out to MARN and MEM Reports of project Performance

PERFORMANCE RECORD

Project elaborated Type and source of financing obtained Record of works initiated Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

189


PROGRAM / PROJECT SUPPORT TO SPORT INFRASTRUCTURE IMPROVEMENT

MANDATORY



STUDY

CONACUID

X

NATURE VOLUNTARY

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQUENCY

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS


Exte

rnal

dim

ensi

on

Sports fields identification Develop recovery works Develop maintenance works

Recovery and maintenance of sport fields in Tiara, Altagracia de la Montaña and Las Tejerías communities, according to the cooperation project with CONACUID

To guarantee resources and coordinate works


$43,000(to verify year)

7 fields Neighboring communities

No. of fields recovered and maintained / intended Works carried out


PERFORMANCE RECORD

No. of fields recovered and under maintenance

Record of works carried out Budget executed


190

SOCIOECONOMIC BENEFITS AREA

191

FOCAL AREA SOCIOECONOMIC BENEFITS

PROGRAM / PROJECT WORKERS AND THEIR FAMILIES' LIFE QUALITY

MANDATORY

X


COLLECTIVE CONTRACT

X


CONACUID

NATURE

VOLUNTARY X

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

Payment of salaries

2005: 24 2006: 23.80 2007: 24.60

Payment of bonus

2005: 7 2006: 6.45 2007: 6.69

Payment of contractual benefits

2005: 4 2006: 4.21 2007: 4.32

Payment of over time

Contributions (SSO, INCE, Política Habitacional.)

To contribute to the improvement of income and life quality of workers and their families through the preservation of the labor, economic and social conditions of work

To pay appropriate and timely the obligations derived from labor legislation and collective contracting according to the company ethics code and human resources policies

Ricardo Pérez, Mary Prado and

Legal Management

According to legal normative specifications

2005: 9 2006: 9.39 2007: 9.74


Compliance with SA 8000 standard Compliance with procedures in corporate manuals Compliance with statutory Compliance with Collective contracting terms Studies carried out Payments above legal obligations

Payroll Information

192

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

Other annual remunerations

Long term provisions

2005: 11 2006: 10.91 2007:11.20

Supply (Cesta tickets)

2005: 502 2006: 544.99 2007: 544.77

Transport of staff

Studies of salaries and benefits, work climate and Norma SA 8000 Performance

$ 20,000 (to verify

year)

Annual induction and re-induction program

To favor appropriate staff enrollment and updating

Implement induction and re-induction programs

Ricardo Pérez

Annual

Workers

No. programs carried out No. attending workers

Respective reports

Edition of “Gente Minera”, newsletters training brochures, intranet, billboards

To divulge information relevant to company members

coordinate the magazine issue, select information and divulging media

Ricardo Pérez

Annual / periodic

9,000 (to verify

year)

Workers

No. issues printed out / programmed. No. of newsletters brochures / intended Billboards prepared No. of beneficiaries Type of suggestions received Budget executed / programmed

Report of activities

Open Line Program to denounce

To offer a confidential space for

To maintain the availability and confidentiality

Anglo American Permanent Workers Confidential information

Confidential information

193

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

violations to the Code of Ethics and Principles of the Good Neighbor

receiving complaints and suggestions

of the line

Year-end party To offer a space for socializing

To organize and coordinate festivities

Ricardo Pérez Annual 18,000 (to verify year)

Workers and families

Party carried out No. attendants

Performance report

To carry out children's Party

To provide a space to entertain the workers' children

To organize and coordinate festivity

Ricardo Pérez Annual 3,255 (to verify year)

Workers' children Party carried out PERFORMANCE

RECORD

Space definition Project design Works Performance Beginning of operations

To build the MLdN Training Center

To coordinate the availability of human, physical and financial resources for the Center construction and operation

Ricardo Pérez

Year 1 Design and works Year 2 Beginning of operations

Workers Communities of Tiara and Altagracia

Project designed Available infrastructure Operation initiated

Report of activities carried out in each phase

Families guided visits to MLdN

To foster a better knowledge of operations from workers' families

Organizing visits

Juan Carlos Cuenca

Annual (4 c/a)


xx families

No. of visits carried out / programmed No. of visitors Opinions gathered

Report of each visit

To identify groups To identify support needs To support activities

To create and maintain scouts groups among employees' children according to CONACUID Project

To guarantee funds



xx scouts groups

Groups created / intended No. activities supported/ intended

Performance report

194

ACTIVITIES


MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS / BENEFIC.

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

To carry out sport events in diverse disciplines

To favor sport practice and workers' integral health

To organize, divulge information and guarantee funds

Juan Carlos Cuenca

Annual


Workers

To design project To execute infrastructure works To endow the area

To remodel the resting area adjacent to the refectory

To guarantee funds and coordinate the Performance

Ricardo Pérez Year 1 Workers

Resting area remodeled and enabled

Works Performance report

PERFORMANCE RECORD

Induction and re-induction program Gente Minera issue and materials Training Center

No.

programs carried out

No. attendants

Budget executed

No. editions

No. materials

Budget executed

Project designed

Infrastructure enabled

Operation initiated

Performance indicators 2005 Performance indicators 2006 Performance indicators 2007 Families guided visits Resting area No. of visits carried out No. of visitors Remodeling Endowment Performance indicators 2005 Performance indicators 2006 Performance indicators 2007 Scout groups creation Children's party No. groups created No. activities supported Party carried out No. attendants Performance indicators 2005 Performance indicators 2006 Performance indicators 2007

195

INSTITUTIONAL STRENGTHENING AREA

196

FOCAL AREA INSTITUTIONAL

STRENGTHENING

PROGRAM / PROJECT TECHNICAL AND FINANCIAL CONTRIBUTION TO OTHER ENTITIES

MANDATORY X

MINING TITLE

X


X

ENVIRONMENTAL

IMPACT STUDY

CONACUID

X

NATURE VOLUNTARY

X

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

Payment of contributions to SINTRANIQUEL

Workers

Amount canceled

/ intended

Administrative supports

Contributions for membership to professional organizations (Cámara Minera, Asociación de Industriales Mineros y Metalúrgicos, VENAMCHAM, Cámara Británica, Cámara Regional de Aragua, CONAPRI).

To contribute to the strengthening of workers and professional organizations by supporting their performance in favor of their members

To guarantee adequate and timely contributions

Ricardo Pérez According to commitments acquired

Organizations and chambers

Amount canceled / intended


Material donation to UCV

To support the mineral use scientific studies

To carry out pertinent negotiations with UCV

Juan Carlos Cuenca

To be determined

UCV geology and mines students

MEM inspections

Record of

activity carried out

Mineral sale to Casa de la Moneda

To contribute with Casa de la Moneda characteristic

To negotiate metal sales

Juan Carlos

Cuenca

To be

determined

BCV BCV's positive

answer

MEM

inspections

197

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

activities

Visits to other mining and metallurgic operations, attendance to congresses, subscription to scientific printings

To contribute to the knowledge of operations and the training of officials

To supply technology

Juan Carlos Cuenca

Annual

To be determined

Visits carried out / programmed Attendance to congresses No. subscriptions

Record of

activity carried out

To develop training activities for MEM officials

To support to the State for minerals evaluation

To agree

issues and attendants with

MEM


xx MEM officials

No. of training activities carried out / intended. No. of officials qualified / intended Budget executed / programmed

Record and

report of activities

carried out

Technical support to small miners

To contribute to the small mining development

To establish cooperation bonds with mining entities of social character

Juan Carlos Cuenca Permanent Small miners

MEM inspections No. of miners beneficiaries Cooperation type

Record and

report of activities

To design and execute sensitization workshops To identify workers and families willing to participate To identify talents and vocations to be put to the community's service To design and execute training workshops

To develop a movement of social volunteerism among MLdN employees and their families in function of the development of a corporate culture associated to the stimulus of human and social capital

To open efficient

spaces to summon

efforts around the formation

of volunteerism in

MLdN

Ricardo Pérez

Year 1 4

Sensitization workshops

Year 2

Volunteerism start up

Workers, families and neighboring

communities

Sensitization workshops carried out / programmed No. of workers and families identified Training workshops carried out / programmed

Performance report

Record of

workers and families

members of the

volunteerism

198

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

To identify possible contributions from volunteers to MLdN programs


To identify cooperation mechanisms and modalities as regards the fight against drugs To develop actions of sensitization as regards prevention of drugs consumption, fight against drug traffic, the drug addict human condition and Human Rights

To collaborate with State security forces regarding fight against drugs, with emphasis on prevention / CONACUID Project

To foster alliances and

identification of combined

performance areas

Juan Carlos Cuenca

Annual

$20,000(to be

verified)

Security forces MLdN Community in general

Security forces supported Cooperation type Budget executed / programmed

Record of activities

carried out

Affiliation to the DVC and Payroll Contributions Volunteer Program

To support the administration of Dividendo Voluntario para la Comunidad and facilitate the exercise of company workers' social responsibility

Participation in DVC payroll contributions volunteer program

Ricardo Pérez and Juan

Carlos Cuenca

Annual

DVC Members

Amount executed / programmed


Patrol car maintenance, cestatickets delivery to officials and service of daily foods to the La Mata road block

To support the administration of police departments regarding public security

To guarantee funds and

mechanisms of obligations payment

Juan Carlos Cuenca

Permanent

30,000

(To verify year)

People from Tiara, Altagracia

and workers

Benefits rendered / programmed Budget executed / programmed


To agree deal terms To support maintenance and operation

To negotiate agreement with Miranda police for installation of Module in Km. 54

To guarantee maintenance and operation funds


30,000

(to verify year)

Miranda Police Community in general

Signed agreement Module operating

Signed agreement Administrative supports

199

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

To carry out meetings to establish agreements To identify mechanisms of joint administration of the edition To publish the magazine jointly

To foster the community administration of the magazine “Vecindad Minera” issue as a way of opening participative spaces

To design cooperation

mechanisms to look for

common spaces and

mutual benefits

Juan Carlos Cuenca

1 quarterly edition 2,000 numbers each edition

9,000 (to

verify year)

People and associations of

Tiara and Altagracia de la

Montaña

No. of joint editions

Editions of the magazine

To identify activities with organizational profit Perform events

Support to sport and cultural events developed by communities

To guarantee funds and coordinate activities

Juan Carlos Cuenca

To be determined

People from Tiara and

Altagracia de la Montaña

No. of events carried out No. of attendants

To identify groups To identify needs To support projects To divulge results

To support scouts groups in MLdN employees communities of residence as a way to generate human and social capital

To identify cooperation needs and guarantee funds


$

16,000 (to

verify year)

Scouts groups

No. of groups supported No. of projects and support areas

Activities Performance

report

To establish agreements with CONACUID To hire consultancy To monitor the investigation To divulge results

To finance an investigation on drugs consumption in the Santos Michelena and Guaicaipuro municipalities, and in Las Tejerías, according to the cooperation project with CONACUID

To guarantee funds and hire consultant services to carry out the investigation

Juan Carlos Cuenca Ricardo Pérez Gema Mujica

Year 1

1 study carried out CONACUID MLdN Community in general

Study carried out and divulged

Partial reports Final reports

To jointly identify projects To hire consultant services

To contribute with CONACUID in special projects performance

To guarantee funds To hire consultant

Ricardo Pérez Juan Carlos Cuenca Gema Mujica

Year 1

CONACUID MLdN Community in general

No. projects financed Budget executed / programmed

Partial reports

Final report

200

ACTIVITIES

MANAGERIAL

OBJECTIVE

MANAGERIAL

MEASURE

RESPONSIBLE

TIME / FREQ.

COSTS

$

GOALS /

BENEFICIARIES

PERFORMANCE

INDICATORS

TYPE AND

FREQUENCY OF REPORT

To divulge results services

To publish informative materia. To offer lectures and conferences

To divulge the Good Neighbor principles among suppliers, contractors, clients and SH in general

To foster Good Neighbor principles

Ricardo Pérez Juan Carlos Cuenca Gema Mujica

Permanent

Suppliers, contractors, clients and SH in general

Material distributed Chats carried out No. beneficiaries Budget executed / programmed

Activities

Performance report

Payment of taxes, para fiscal contributions and rates

To contribute with the well-being of workers and society through taxes payment

To guarantee timely payments with arrangement to legislation

Ronald Mariño Ulises Lara Vincent Cannistraro

According to obligations Society in

general Taxes paid


201

The F4 Tool “How to Build Alliances” is aimed at identifying situation where shareholders can help Anglo business to handle its contribution to the local economic and social development in a more effective way. This can be done by identifying shareholders and MLdN guidelines and goals, regarding sustainable development and operations impacts mitigation. The intent is to establish a dialog to reach agreements on objectives that cab bring mutual benefits and plan and develop the relevant actions. Exploring terms for mutual alliances as for role definition, responsibilities and leadership, rights and obligations, legal implications from agreements with partners and conflict resolution strategy would be the object for a subsequent step. Activities to be preferably developed under alliances, as well as potential partners and common interest areas would be the following:

ACTIVITIES POTENTIAL PARTNERS COMMON INTEREST AREAS

Create a Medium Technical Training Center in Las Tejerías

Government of the State of Aragua, Santos Michelena Mayor’s Office and INCE.

Training for work, generate capacities to incorporate young people into the labor market with better qualifications

Create an operational uUnit for Environmental information and broadcast

Government of the State of Miranda and MARN

Spread relevant environmental information regarding features and potentials of the area of influence, from such standpoints as tourist development and business development environmental preservation, environmental education

Foster creation and consolidation of micro-companies, cooperatives, and small companies

World Bank (Fund for small projects), Corporación Andina de Fomento (CAF) (Community Projects for lower income rural sectors), CEPAP – UCV (Create and consolidated cooperatives), Swiss Agency for Development and Cooperation / COSUDE (Job and income promotion )

Support projects focused on reducing poverty, generate productive units, generation, human capital development, fostering micro and small companies including small scale agricultural and livestock activities in rural areas

Operate and maintain the main dam with fishing development purposes

European Union (Environmental Protection and stimulus to the fishing sector), Japanese International Cooperation Agency / JICA (Program of Partners for Development)

Widening the variety, production quality and increase of potentials to open new businesses and environmental protection

Tourist usage of the dam US Agency for International Development/DAI-USAID (Environment and Natural Resources)

Protect conservation and tourism

Support and improve the sanitary infrastructure

Santos Michelena Mayor’s Office and Government of the State of Aragua and Miranda, MSDS

Environmental remediation, improvement of health conditions and access to services

PHASE 1 REPORT - Investis CMSfiles.investis.com/aa/docs/Loma Seat Report.pdf2 Consultant Team Zaira...

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