Newmont Mining Corporation Reduction of Conflict in The
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Draft Final Report to Newmont Mining Corporation Reduction of Conflict in the Extractive Industries Using Good Neighbor Agreements by Alexandra Masaitis Glenn C. Miller Department of Natural Resources and Environmental Science University of Nevada, Reno August, 2015 i Glenn C. Miller Alexandra Masaitis Reduction of conflicts in the extractive industries using Good Neighbor Agreements Abstract Conflicts between mining companies and communities are now prevalent in many countries of the world, both developed and developing. These conflicts have often resulted in delays of mine project development as well as adverse effects to the communities. Reduction of those conflicts has been shown to be best accomplished by good communication, transparency, and a willingness of each of the parties to both understand the positions of other participants, but also a willingness to compromise. One of the types of agreements that have shown success is termed a “Good Neighbor Agreement” (GNA). The needs for this project are to create an open dialog between the mining company and all interested parties who may have concerns regarding the social or environmental impacts from the mine, to minimize the possible conflicts and disagreements, and create the negotiation tools, which can be implemented any time, depending on the needs. In this case, an agreement is negotiated where good communication and frequent meetings are utilized, and the resulting agreement has sufficient penalties that if any of the signatories to the agreement fail to abide by that agreement, those penalties will be imposed. This process is often complicated, but ultimately has the potential to reduce threats of appeals or legal action, but at the same time may require elimination of certain practices. It also requires a commitment to see this process through to the reclamation phase and long term stabilization of the environment and the economies of the affected communities. ii Acknowledgments I would like to sincerely thank my graduate adviser, Dr. Glenn C. Miller for his guidance, understanding, patience, and most important, his friendship during my graduate studies at the University of Nevada, Reno. I also very much appreciate the support and assistance from Newmont Mining Corparation, who funded this project. Roger MacGregor and Newmont Staff were very helpful in directing the project and we appreciated their time and effort. I would like to say a special thank you to my dear husband George V. Masaitis, he was the one who believed in me from my first day in the graduate school, he gave me all his patience, love, help and support on the day-to-day basis. Without him, I would never have gone down this road, and I gratefully appreciate all his efforts. I would like to express my deep appreciation and gratitude to my committee members Dr. Vera Samburova, Dr. Dirk Van Zyl, Dr. Scott D. Bassett, and Dr. Tom Myers for the patient guidance and mentorship they provided to me, all the way from when I was first considering applying to the PhD program in Environmental Sciences and Health, to my graduation, and I am truly fortunate to have had the opportunity to work with them. I would like to say a special thank you to Dr. Kendra Zamzow for her most useful review and suggestions. Lastly, but not less importantly, I would like to say thank you to my colleagues Viktoriya Weirauch and Kristie Marie Gearty, who became my good friends, and are always willing to help and offer me the best suggestions. iii Table of Contents Chapter 1…… .……………………………………...………..………………….. 1 Introduction………………………………………….…………………... 1 Background………………………………………………………………. 3 Hypotheses………………………………………………………………. 4 Methods…………………………………………………………………. 5 Broader impacts of research…………………………………………….. 6 Summary of results……………………………………………………… 7 Stillwater Mining Company’s Good Neighbor Agreement……………………… 8 1.1 Introduction to Conflict and the Mining Industry……………………… 8 1.2 Stillwater Mine GNA…………………………………..……………… 11 1.3 The Stillwater GNA today…………………………………………… 26 1.4 Lessons learned in interviews………………………………………… 27 1.5 Summary…………………………………………………………… 29 Chapter 2. Environmental, social, and economic conflicts……………………… 30 2.1 Environmental Conflicts…………………………………………… 30 2.2 Social Conflicts……………………………………………………… 38 2.3 Economic conflicts………………………………………………… 40 2.4 Summary of steps to prevent conflicts……………………………… 41 Chapter 3. Development of the Stakeholders Engagement Plan for Emigrant Rain Mine……………………………………………….. 44 3.1 Newmont Mining Co: Introduction of the Company………………… 44 3.2 Description of the Emigrant Rain Project Nevada, USA…………… 47 3.3 Stakeholders Engagement for the Emigrant Rain Project…………… 55 3.4 Goals of a GNA for Nevada operation..……………………………… 69 Chapter 4. Conflict Resolution Mechanisms…………………………..…………. 71 iv 4.1 Building trust………………………………………………………….. 71 4.2 Consultation………………………………………………………… 72 4.3 Good Neighbor Agreements…………………………………………. 78 Chapter 5. Reducing Risk through Communication……………………………… 82 5.1 Risk management at mining corporations…………………………… 82 5.2 Social responsibility…………………………………………………… 83 5.3 Fundamentals of communication…………………………………….… 86 5.4 Do’s and Don’ts of Communication………………………………….. 88 5.5 Measuring impact……………………………………………………… 90 Chapter 6. The Survey “Mining Perceptions” Development, Implementation and Results…………………………………………………………. 94 6.2 Conclusion………………………………………………………… 127 Chapter 7. Indigenous people and mining operations in Nevada, USA………… 129 7.1 Introduction to the Western Shoshone Indian tribe………………… 130 7.2 Mining social responsibility and Western Shoshone………………….. 133 Chapter 8. GNAs Case studies……………………………………………… 142 Chapter 9. GNA Step by Step Implementation Guidelines……………………… 156 Conclusions……………………………………………………………………… 160 The future research……………………………………………………… 164 References……………………………………………………………………… 165 Primary sources………………………………………………………… 165 Secondary sources that are useful for understanding GNA’s…………… 172 Appendix 1. Useful sources……………………………………………………… 174 Useful sources for the Security and Human Rights……………………… 174 Useful sources for the engagement methods and techniques…………… 174 Useful sources for gender and engagement………………………… 174 Useful sources for negotiation and communication strategies………… 175 Appendix 2. Case Study: Improving Institutions through Transparency: Extractive Industries Transparency Initiative (EITI)……………………………………… 176 v Appendix 3. Typology of issues, manifestation of conflict, cost to, and responses from extractive companies arising in relation to the company – community conflict…. 177 Issues in Dispute………………………………………………………… 177 Manifestations of Conflict……………………………………………… 178 Types of Costs to Company…………………………………………… 179 Company Responses to Conflict……………………………………… 181 Appendix 4. Tools for success……………………………………………… 182 Community Group Participant Survey Example……………………… 182 Outline Terms of Reference for Stakeholder Analysis………………… 192 Stakeholder Analysis: Work Sheets…………………………………… 197 Mapping Key Stakeholders’ Relative Influence and Importance……… 199 Check Lists for Preparing and Costing a Communications and Engagement Program…………………………………………………………… 200 Appendix 5. List of the GNA case studies examples………………………… 203 Appendix 6. Draft Mining Corporate Policy on Operations Native American Lands……………………………………………………………. 206 Appendix 7. Notice of Acknowledgement. Research Integrity Office……… 209 Appendix 8. Survey “Mining Perceptions” ………………………………… 210 vi List of tables Table 1.1 List of appendixes from SMC Good Neighbor Agreement….….….. 23 Table 1.2 Strengths and Weaknesses of the GNA………………………… 25 Table 3.1 Findings and steps from investigation “Listening to the city of Cajamarca”………………………………… 46 Table 3.2 Proposed Emigrant Mine Schedule………..…………………… 51 Table 3.3 Disturbance Categories and Amounts……………………..……… 52 Table 3.4 Direct and indirect impact on other natural resources……………… 53 Table 3.5 Stakeholder engagement goals………………………………………. 56 Table 3.6 Benefits from Stakeholders engagement………………………...… 57 Table 3.7 Carlin group matrix……………………………… …………………. 60 Table 3.8 The stakeholders’ engagement methods………………………… 65 Table 5.1 The changing nature of risk, 1987-2001……………………………. 82 Table 5.2 Do and Don’t in communication………………...………………… 90 Table 6.1a Group 1 “Local residents”. Relation to the mining industry……... 95 Table 6.1b Group 2 “Geologist network”. Relation to the mining industry…..... 95 Table 6.1c Group 3 “Environmental community”. Relation to the mining industry………………………………………………………………….. .96 Table 6.2a Group 1“Local residents”. Survey result, question 1…………… 97 Table 6.2b Group 2 “Geologist network”. Survey result, question 1………… 97 Table 6.2c Group 3 “Environmental community”. Survey result, question 1…... 98 Table 6.3a Group 1 “Local residents”. Survey result, question 3………………. 100 Table 6.3b Group 2 “Geologist network”. Survey result, question 3…………… 100 Table 6.3c Group 3 “Environmental community”. Survey result, question 3…….. 100 Table 6.4a. Group 1. “Local residents”. Survey result, question 4…………… 101 Table 6.4b. Group 2. “Geologist network”. Survey result, question 4……..… 101 Table 6.4c. Group 3 “Environmental community”. Survey result, question 4…… 102 Table 6.5a. Group 1“Local residents”. Survey result, question 6……………… 106 vii Table 6.5b. Group 2 “Geologist network”. Survey result, question 6……… 106 Table 6.5c. Group 3 “Environmental community”. Survey result, question 6… 106 Table 6.6a. Group 1 “Local residents”. Survey result, question 8……………… 109 Table 6.6b. Group 2 “Geologist network”. Survey result, question