Understanding and responding to the concerns and priorities of local communities are significant elements in building trust and maintaining a social licence to operate, as well as securing continued access to land and resources.

Community members view core samples at the Goldbrook exploration camp in northern Canada. Site visits are an important aspect of building community trust.

As a contribution to the sustainable development of the countries, regions and communities where we have a significant presence, we work at national level and at local levels on issues such as anticorruption, transparency, the investment climate, enterprise development, training, social investment and capacity building. Our operations are not development agencies but they play a significant development role with a sometimes unique ability to mobilise skills and capacities in their areas of influence.

No aspect of sustainable development can be dealt with in isolation and our programme is designed to see the reduction of negative impacts and an increase in opportunities across the spectrum (see Sustainable development programme), so there are close linkages between community engagement, environmental projects(see Biodiversty) and economic development.(see Empowerment through enterprise)

The need to increase employment rates is one of the key issues around the world and the socio-economic assessments we conduct also regularly identify this. Yet, as mining has be some more technologically advanced, we are often unable to meet all the expectations about direct employment, particularly for unskilled workers.

We use supply chain opportunities and enterprise development schemes (see Empowerment through enterprise) to maximise the local economic benefits of our operations. We are also increasingly looking at new models for sharing with local communities the benefits flowing from our operations.

Community engagement

All our significant operations are annually required to review their community engagement plans. These plans have a three-year time horizon and identify stakeholders, the channels to be used for engagement, key issues and the impacts to be managed. They require management to assign accountabilities and resources. These plans ensure that operations are more accountable to neighbouring communities for their impacts on the community and the environment and that mutual understanding of concerns improves. Community engagement plans are now in place at 130 of 134 significant sites (108 excluding Mondi, Highveld and Hippo Valley).

Some 250 Anglo American managers and people from partner organisations have been trained in the use of our socio-economic assessment toolbox (SEAT). The quality of engagement has increased markedly in those operations. Since we began using SEAT, 40 assessments have been completed at 42 of our larger operations. Twelve are in an advanced stage and another 10 are in the planning stage.

The most commonly occurring issues of concern to communities to emerge from SEAT implementation include:

• access to jobs and procurement opportunities
• perceived or actual environmental and health impacts
• road safety and impacts related to transport of product and supplies
• the need for improved communication and transparency, and
• infrastructure, public services and, in some situations, in-migration.

Lack of effective communication is often the root cause of distrust and capacity building is often a prerequisite for establishing durable partnerships. The community’s perceptions are their reality and we must address them. We are also learning that the inter-relationships and rivalries between stakeholder groups are rarely static and can have as big an impact on the operation as its own relationships with any one group.

Based on the feedback received from the first 40 implementations (27 in core businesses), from external partners and independent experts and from other emerging examples of good practice, SEAT has been undergoing revision. SEAT II will be launched in 2007.

The new version maintains the same structure but will consist of some 30 tools, including new guidance on issues such as conflict identification, prevention and management, grievance procedures as well as the community dimension of emergency planning and resettlement. In addition, there will be a number of tools to support our responses in areas such as community health, leveraging donor resources, microfinance and water and energy projects. Further information and the SEAT executive summary can be found on our website.

Stakeholder engagement

Regular engagement strengthens our business through ensuring that we understand the perspectives of others, and improves our ability to develop strategy through increasing our understanding of national and international trends, developments and concerns. We encourage it at all levels in the organisation from site to the corporate level, including through initiatives to improve employee communication (see Building human capital across the world). Some key examples are highlighted below. More information is on our website.

Consulting with communities

Anglo American’s Exploration division consulted local residents in February 2006 before beginning a geophysical survey to explore potential mining opportunities in the Stavely project in Victoria, Australia.

Around 40 landowners attended a meeting where the Exploration personnel explained what impact the survey (using nondisruptive methods) would have on them and what it aimed to achieve. This initial meeting has opened a dialogue with the community and gave residents an opportunity to raise concerns. Issues raised by the pastoralists included the manner in which the notification of entry was delivered by the company, compensation amounts, the company’s public liability insurance, bushfires, timing of work related to lambing and crops, the length of the agreement and means of future communication with the company. All these issues were resolved or followed up with individuals, where appropriate.

Brazilian consultation

Since 2003, Anglo American’s Brazilian operations have been actively identifying, mapping and interviewing stakeholders in the neighbouring municipalities of Níquelândia, Barro Alto, Ouvidor and Catalão, as well as the industrial town of Cubatão, as part of the SEAT process. Improved mutual understanding of community priorities, expectations and their perceptions of the positive and negative impacts of the mines resulted in more formalised community engagement programmes and immediate benefits for the operations.

The issues identified included job security (Níquelândia), lack of infrastructure (Barro Alto), and health and water resources (Catalão). In Cubatão, where the municipality is launching a local Agenda 21 project, the engagement enabled discussion of strengths, weaknesses, opportunities and threats.

A new ‘Interchange’ communication channel was created and a new set of criteria for community investment developed. In addition, an NGO with extensive experience in local capacity building was appointed to assist with building partnerships which would have local economic benefits.

The company is looking for creative partnerships or projects with NGOs to generate resources and make a difference. Projects being evaluated include technical support for small-scale farmers’ local and regional associations, skills development for school teachers and principals, and development of small-scale businesses for a 300 year old religious organisation so that individuals can earn money while maintaining their traditions.

Some specific partnerships on environmental education were initiated during various communication sessions. At Barro Alto, the community outreach occurred before the approval of the new mine project, paving the way for positive engagement and fruitful partnership.