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Community Relationships Review

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Community Relationships Review 1 Community Relationships Review Global Summary Report March 2009 Study Directors Gare A. Smith Daniel Feldman Table of Contents I. Executive Summary ..............................................................................................................................1 II. Introduction ..........................................................................................................................................4 A. Overview of the Report ............................................................................................................4 B. Conflict Management ...............................................................................................................5 C. Objectives of the CRR .............................................................................................................7 III. CRR Methodology and Overview ........................................................................................................8 A. Key Participants in the CRR ....................................................................................................8 B. Methodology for the Global Report .......................................................................................12 C. The Addition of Minahasa ......................................................................................................12 D. Identifying the Factors in Conflict: Framework for the CRR ......................................................13 IV. Management of Community Relationships .......................................................................................16 A. Management of ESR .............................................................................................................16 B. Corporate Management Structure ........................................................................................17 C. Objectives and Strategic Goals ............................................................................................18 D. Internal Policies and Standards ............................................................................................19 V. Site Selection and Summary of Site Findings ....................................................................................22 A. Overview of Site Selection Process ......................................................................................22 B. Martha Mine – New Zealand .................................................................................................26 C. Carlin Operations – United States of America ......................................................................31 D. Batu Hijau Mine – Indonesia .................................................................................................37 E. Ahafo Mine – Ghana .............................................................................................................43 F. Minera Yanacocha – Peru .....................................................................................................49 G. Post-Closure: Internal Feedback on the Minahasa Raya Mine – Indonesia .........................................................................................54 VI. Managing Relationships with Community Stakeholders: Lessons Learned .....................................58 A. Strategic Planning .................................................................................................................62 Lesson 1: Every Newmont operating site should have a comprehensive and integrated strategic management plan for community relations that identifies the objectives and responsibilities of each functional department and takes into account relevant site-specific factors. ..................................................................................................63 1. Why Is This Important? ....................................................................................................................63 2. What Risks Does This Lesson Address?...........................................................................................63 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems .......................................................... 64 4. Recommendations and Opportunities — Suggestions for the Path Ahead ................................72 ii VI Managing Relationships with Community Stakeholders: Lessons Learned (continued) Lesson 2: Regular and comprehensive social impact assessments and risk assessments must inform cross-functional strategic planning at Newmont’s operating sites. ...................................72 1. Why Is This Important? ....................................................................................................................72 2. What Risks Does This Lesson Address?...........................................................................................72 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems .......................................................... 73 4. Recommendations and Opportunities — Suggestions for the Path Ahead................................80 Lesson 3: Regional and local managers in all functional areas must be accountable for implementation of the company’s strategic objectives regarding community relationship building. .....81 1. Why Is This Important? ....................................................................................................................81 2. What Risks Does This Lesson Address?...........................................................................................81 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems .......................................................... 82 4. Recommendations and Opportunities — Suggestions for the Path Ahead ................................87 B. Responsible Engagement .....................................................................................................88 Lesson 4: Newmont’s operating sites must assess stakeholder concerns and engage with external stakeholders in order to understand and effectively respond to their perceptions and concerns. .............................................................................................................................................88 1. Why Is This Important? ....................................................................................................................88 2. What Risks Does This Lesson Address?...........................................................................................89 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems .......................................................... 89 4. Recommendations and Opportunities — Suggestions for the Path Ahead ................................95 Lesson 5: Newmont’s engagements with the community must reflect the company’s values and responsibilities and clearly convey what can be expected from the company in its role as a community stakeholder. .................................................................................................95 1. Why Is This Important? ....................................................................................................................95 2. What Risks Does This Lesson Address?...........................................................................................96 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems .......................................................... 96 4. Recommendations and Opportunities — Suggestions for the Path Ahead ..............................106 iii VI Managing Relationships with Community Stakeholders: Lessons Learned (continued) C. Managing Conflict Responsibly ..........................................................................................107 Lesson 6: Newmont’s operating sites must engage in conflict identification and manage community concerns before open conflict arises, while respecting the rights of stakeholders to protest against the mine. ................................................................................................................108 1. Why Is This Important? ..................................................................................................................108 2. What Risks Does This Lesson Address?.........................................................................................108 3. Building Community Relationships — An Evaluation of Newmont’s Capacity and the Effectiveness of Existing Systems ........................................................ 109 4. Recommendations and Opportunities — Suggestions for the Path Ahead ..............................116 Lesson 7: Newmont’s operating sites must engage in conflict identification and manage community concerns before open conflict arises, while respecting the rights of stakeholders to protest against the mine. ................................................................................................................117 1. Why Is This Important? ..................................................................................................................117 2. What Risks Does This Lesson Address?.........................................................................................118 3. Building Community Relationships
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