CSR Case Studies: Resolute Mining CSR programs deliver more than money can measure in Tanzania

Overview

Resolute is one of the largest gold producers listed on the ASX with three operating gold mines in Africa and Australia. During 2011/12 Resolute’s established operations at Syama Gold project in Mali, Golden Pride mine in Tanzania and Ravenswood in Queensland produced almost 400,000 ounces of gold and are together forecast to produce approximately 415,000 ounces in the coming year.

Resolute recognises that all stakeholders, in one way or another, contribute to the Company’s ability to sustain its activities in a harmonious manner within the community and environment. As such, the Company is committed to Corporate Social Responsibility (CSR) by building relationships through well-targeted social, safety and environmental programs. Direct communication with Governments and communities of interest, drawing on competencies of our in-country teams and the leadership of senior National personnel in the countries in which we are engaged, enables us to ensure our CSR is timely, relevant and wherever possible, an investment delivering lasting benefits to employees, communities and key stakeholders.

Since the mid 1990?s, the Company has approached mining in Africa with a view towards promoting and assisting sustainable development.

As part of its commitment to CSR, Resolute has provided support to host Governments and local communities including the construction of schools and medical clinics, the training of farmers and trades peoples, promotion of small business enterprise, health education, environmental assistance through community nurseries and the provision of water infrastructure.

Implementation

Golden Pride Mine – Tanzania
Resolute has been operating its Golden Pride Project in the Tabora region of Tanzania since 1998. The site is surrounded by four wards: Lusu, Nata, Mbogwe and Nzega ndogo. The Company has supported local communities in the form of education development, environment protection, health services, water provision and small business enterprise projects. This ensures that the local community directly benefits from the Company’s activities located near those communities.

Both Resolute and its neighbouring communities wish to ensure that programs deliver lasting benefits. To identify and prioritise projects for support, Resolute provides trained facilitators to implement the Participatory Rural Appraisal (PRA) tool. PRA fundamentally requires the local community’s direct participation in project generation and decision making. The approach aims to incorporate the knowledge and opinions of the local communities in the planning and management of development projects and programs through participation in discussion, focus groups and feedback sessions.

Communities initiate the development projects identified during the PRA and Resolute supports the implementation, monitoring and completion.

During the PRA exercises around Golden Pride, numerous projects were raised to improve the prospects of community development. The issues seen to be obstacles or impediments to community development were poor education, lack of adequate health facilities, environment degradation and very low income of the local people. Whilst most of these areas have seen programs implemented, an emphasis on education has received more than 75% of the funding and activities as it is believed that improvements in this area in particular delivers lasting benefits and will have flow on effects to all areas of need within the local communities.

Education Projects

According to the education policy of Tanzania, schooling is compulsory for all children. There are primary schools assigned for all villages and secondary schools for all wards in the country. Unfortunately, many these schools face shortages of teachers, classrooms, books, science laboratories, desks and dormitories.

Resolute’s major community contribution is centred toward education development, implemented together with the Government, schools and the communities. The Government also recognises that a lack of education among its people inhibits the opportunity of employment within the local mining and other industries.

Support of the Government’s education policy is demonstrated through the construction of six secondary schools, class rooms at seventeen primary schools (including desks and other facilities) and teacher’s accommodation in six villages. With the collaboration of the Nzega District council, construction of science laboratories at three the secondary schools has also taken place.

Community Health Projects

• In supporting the Government’s health policy of providing a health centre in every ward, the Company has supported the expansion and upgrade of the dispensary in local Lusu Ward to become a fully functioning health centre. This includes the construction of two wards, the renovation of the doctor’s house and the provision of pharmaceuticals for the dispensary.
• Sponsoring the training of 16 primary school teachers and village health workers though the National Institute of Medical Research (NIMRI), to help combat bilharzias disease, which afflicts many children and the community in general. A sponsored program was also instigated to purchase the medicine in order to treat those affected.
• HIV/AIDS awareness training is conducted in the vicinity of the mine, as well as in the surrounding communities.
• Assistance was also provided for 15 people needing plastic surgery.
• Support for a national campaign to combat tuberculosis and leprosy by sponsoring a campaign of awareness to communities about the diseases though education and testing.

Water
Water is major problem facing communities due to geographic, infrastructure and climatic challenges. A community water program, which enables the provision of boreholes and the construction of rain water harvesting systems, enables the local schools and villages access to clean drinking water.

Presently 21 bore holes have been drilled in the communities surrounding the mine. Further water pumping assistance provided to the Nzega water board has been finalised at many primary schools.

Additional Projects

• A program was instigated to pay secondary school and university fees for students from financially disadvantaged families.
• Various primary schools now have dairy cattle projects as a means of increasing income as well as supplying milk to students at the schools.
• Assisting a village to increase the capacity of its community surface water dam by increasing the depth and strengthening the walls of the dam.
• A 6 day beekeeping course was made available to local communities to learn modern ways of bee keeping and environmental conservation, which contribute to improving their economy through quality honey production.
• Training was conducted for local environmental committees to create awareness of environment conservation and sustainability for the three wards of Nata, Lusu and Nzega Ndogo.

Summary

Resolute recognises the need to consult proactively and help manage community issues near its operations. Fostering long-term relationships and partnerships with communities is envisaged to develop mutual understanding, cooperation and respect. Our social investment initiatives aim to deliver significant and lasting benefits to employees, communities and key stakeholders.

It is believed that the Company’s participation in AAMEG will help build on the non-technical capacities and positive perceptions of Australian Mining Companies in African countries. We anticipate it will reinforce and give confidence to African Governments and local communities that Resolute should be welcomed as a preferred company when assessing its credentials to engage in mining development activities and ventures in their countries.