wb-5 toolkits for cd

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TOOLKITCOMMUNITY DEVELOPMENT

The Tools have been divided into 5 categories:

ASSESSMENT For assessing the environment; that is, who the people are who live

there, how they live, whether there are any existing conflicts, and what resources will

be need to build and support a community development program in this setting.

PLANNING To design development programs desired by all and therefore with an

opportunity to become sustainable. Some plans may be internal to specific

organizations, such as a company or NGO. Other plans may be developed by

coordinated efforts by many groups.

RELATIONSHIPS For building and maintaining good relationships between all

stakeholders, such as government, community members, company representatives,

and local organizations. Relationships are the foundation of all cooperative activities

and therefore essential for sound community development programs.

PROGRAM MANAGEMENT For supporting and implementing the plansdeveloped with the planning tools. These management tools include means for

ensuring that plans are realistically resourced and scheduled and that there are people

taking responsibility for implementing them. Plans are just pieces of paper until they

are put into motion.

MONITORING & EVALUATION For measuring progress toward program goals.

Some evaluations may be internal to individual organizations, but ideally all

participants will work together on some evaluation tools so that any modifications

required to plans will be developed in a coordinated and cooperative manner.

The Community Development Toolkit contains two main parts:

17 Tools intended for use throughout the project cycle and which cover theassessment, planning, management, and evaluation phases of community

development as well as stakeholder relationships. The tools are colour-codedand individually numbered for clear identification. An introduction, glossary anddiscussion of mining and community development accompany the tools.

A Background volume, which contains the background and context to the projectas well as an examination of the mineral policies and mining laws necessary formineral activity to contribute to sustainable development and the bibliography.

A

SSESSMENT

T

OOLS1-4

PLANNING

TOOLS5-9

RELATIONSHIPS

TOOLS10-12

PROGRAM

MANAGEMENT

TOOLS

13-14

MONITO

RING&

EVALUATION

TOOLS1

5-17


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Acknowledgments

The project was jointly coordinated and managed bythe World Bank Groups Oil, Gas, and Mining PolicyDivision and the International Council on Mining andMetals (ICMM). Financial support was provided bythe Energy Sector Management Assistance Program(ESMAP), ICMM, and the World Bank.

The first phase of work (as presented in the

Background volume) was overseen by a RegionalAdvisory Committee consisting of Agnes Bwalya(Chair of the Chambishi Bakabomba CommunityDevelopment Trust, Chambishi Metals, Zambia),Gloria Dhlamini (Executive Mayor, Emalahleni LocalMunicipal Council, Mpumalanga, South Africa),Karin Ireton, (Group Manager, SustainableDevelopment, Anglo American plc), Len le Roux(Director, Rssing Foundation, Namibia), MaryMetcalf (Member of Executive Council, Agriculture,Conservation, Environment and Land Affairs,Gauteng, South Africa), Nchakha Moloi (DeputyDirector General, Mineral Development, Departmentof Minerals and Energy, South Africa), SilaneMwenechanya (Business Forum Coordinator,Zambia Trade and Investment Enhancement Project,Zambia), and Archie Palane (Deputy GeneralSecretary, National Union of Mineworkers, SouthAfrica).

The consultants who completed the working papersin the first phase were Davin Chown, BelyndaHoffman, and Johan van der Berg (OneWorldSustainable Investments); Marie Hoadley and DanielLimpitlaw (University of the Witwatersrand); BrenSheehy (URS Australia); David Shandler (CommonGround); and Markus Reichardt and Mokhethi

Moshoeshoe (African Institute of CorporateCitizenship).

Community development is the process of increasing the strength andeffectiveness of communities, improving peoples quality of life, and enablingpeople to participate in decision making to achieve greater long-term controlover their lives. Sustainable community development programs are those thatcontribute to the long-term strengthening of community viability. Mining andmineral processing activities can play a central role in sustainable communitydevelopment by acting as a catalyst for positive economic and social change inareas that may otherwise have limited opportunities for economic and social

development.

The Pioneering New Approaches in Support of Sustainable Development in theExtractive Sector project was jointly coordinated and managed by the WorldBank Groups Oil, Gas, and Mining Policy Division and the International Councilon Mining and Metals (ICMM), and was supported financially by the EnergySector Management Assistance Program (ESMAP), ICMM, and the World Bank.The aim of the project was to develop new approaches and tools to supportgovernment, industry, and community efforts to realize more sustainablecommunity development around mining and mineral processing operations.

The second phase of work (as presented in theTools) was overseen by a working group of ICMMsCommunity and Social Development Task Force:Tony Andrews (Prospectors and DevelopersAssociation of Canada), Carolyn Brayshaw(AngloGold Ashanti), Paul Hollesen (AngloGoldAshanti), Karin Ireton (Anglo American), RamanieKunanayagam (Rio Tinto), Jim Mallory (Placer

Dome), Dave Rodier (Noranda), Russell Williams(Alcoa), and Ian Wood (BHP Billiton). CatherineMacdonald (URS Australia) led the consultant teamfor the second phase and was supported by BrenSheehy, Belinda Ridley, and Nia Hughes-Whitcombe(URS).

The preparation and publication of the Toolkit wascoordinated by Jeffrey Davidson (Task Manager),John Strongman (Mining Adviser), and Allison Berg(Operations Officer) of the World Bank and KathrynMcPhail, Julie-Anne Braithwaite and Caroline Digbyof ICMM. Adriana Eftimie and Michael Stanley of theWorld Bank prepared the Government Tools forSector Sustainability in the Background volume.Peer reviewer comments were provided by KerryConnor (Bechtel), Aidan Davy (consultant), TedPollet (International Finance Corporation), Leyla Day(International Finance Corporation), and Dan Owen(World Bank). The CD-ROM accompanying theToolkit was produced by Marjorie K. Araya and theWorld Bank Group Graphics Department. Finalediting was done by Michael Schwartz.


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COMMUNITY DEVELOPMENT TOOLS IN THE MINING PROJECT CYCLE

CATEGORY OF TOOL NAME AND NUMBER WHEN TO USE THEM WHO MIGHT USE THEM

COMMUNITY

DEVELOPMENT Exploration Feasibility Construction Operations Decommissioning, Government Community NGO Company

TOOL closure and post closure

ASSESSMENT 1 Stakeholder Identification

2 Social Baseline Study

3 Social Impact andOpportunities Assessment

4 Competencies Assessment

PLANNING 5 Strategic Planning Framework

6 Community Mapping

7 Institutional Analysis

8 Problem Census

9 Opportunity Ranking

RELATIONSHIPS 10 Stakeholder Analysis

11 Consultation Matrix

12 Partnership Assessment

PROGRAM MANAGEMENT 13 Conflict Management

14 Community Action Plans

MONITORING & EVALUATION 15 Logical Framework

16 Indicator Development

17 Goal Attainment Scaling

KEY: Start activity Ongoing Repeated Primary user Support userThis matrix provides a general guide to the tools including

who might use them and when during the project cycle.


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CONTENTS OF THE TOOLKIT

LIST OF ABBREVIATIONS AND ACRONYMS 1

PREFACE 2

1 INTRODUCTION 3

Background to the Project 3

Structure of the Toolkit 5

Target Audience 5

2 MINING AND COMMUNITY DEVELOPMENT 7

Relationship Between Mining and Sustainable Community Development 7

Role of the Mining Industry 7

Community Development is Good for Business 7

Good Practice Principles for Sustainable Community Development 8

Mining Operations Support Community Development 8

Acid Test for Sustainable Community Development 9

Roles and Responsibilities for Community Development 10

Community Development in the Mining Project Cycle 11

0

3 COMMUNITY DEVELOPMENT TOOLS 13

Using the Tools 13

Gender and Inclusion 14

Categories of Tools 14

Some Advice 14

ENDNOTES 15

COMMUNITY DEVELOPMENT TOOLS

ASSESSMENT TOOLS TOOLS 1-4

PLANNING TOOLS TOOLS 5-9

RELATIONSHIPS TOOLS TOOLS 10-12

PROGRAM MANAGEMENT TOOLS TOOLS 13-14

MONITORING & EVALUATION TOOLS TOOLS 15-17

GLOSSARY

BACKGROUND VOLUME

CONTENTSOFTHETOOLKIT


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LIST OF ABBREVIATIONSAND ACRONYMS

AusAID Australian Agency for International Development

BPD Business Partners for Development

CASM Communities and Small-Scale Mining

CBOs Community-Based Organizations

DFID Department for International Development (UK)

EITI Extractive Industries Transparency Initiative

ESMAP Energy Sector Management Assistance Program

E3 Environmental Excellence in Exploration

IAIA International Association of Impact Assessment

ICME International Council on Metals and the Environment

ICMM International Council on Mining and Metals

IDS Institute for Development Studies (Sussex University, UK)

IFC International Finance Corporation (part of World Bank Group)

IIED International Institute for Environment and Development

IISD International Institute for Sustainable Development

IPIECA International Petroleum Industry Environmental Conservation Association

LNG Liquefied Natural Gas

M&E Monitoring and Evaluation

MMSD Mining, Minerals, and Sustainable Development

OGP International Association of Oil and Gas Producers

SADC Southern African Development Community

UNEP United Nations Environment Programme

UNCTAD United Nations Committee on Trade and Development

USAID United States Agency for International Aid

WBCSD World Business Council for Sustainable Development

LISTOFABBREVIATIONSANDACRONYMS

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PREFACE

The Pioneering New Approaches in Support ofSustainable Development in the Extractive Sectorproject aims to:

Foster constructive working relationships andalliances among communities, companies,and governments.

Build capacity within governments,

companies, and communities to addresssustainable development issues at the locallevel.

Promote the value-adding potential of minedevelopment and operation in support of localand regional social and economic sustainabledevelopment efforts.

Improve opportunities for the sustainabledevelopment of mining communities andregions during all phases of the mining cycle.

The Pioneering New Approaches project builds onprevious World Bank Group work to strengthen thecapacity of governments, private sector, andcommunities to manage mineral development inways that will contribute more effectively to thelonger-term sustainable development of miningregions. This work includes the InternationalFinance Corporation (IFC) good practice manualsand reports such as Doing Better Business ThroughEffective Public Consultation and Disclosure (1998),Investing in People: Sustaining Communitiesthrough Improved Business Practice (2000),

Developing Value: The Business Case forSustainability in Emerging Markets (SustainAbilityand IFC, 2002), World Bank sponsorship of theBusiness Partners for Development (BPD) initiative(19982002), and several World Banksupportedinternational workshops and conferences includingMining and Community (Quito in 1997 and Madang in1998), Mining and Sustainable Development (Madangin 2002) and Women in Mining (Madang in 2003 and2005).

The project also responds to recommendations inBreaking New Ground, the report of the Mining,Minerals, and Sustainable Development (MMSD)project (2002), for new approaches to enablegovernments, industry, and communities to createcountry-specific frameworks, including communitysustainable development plans, that would ultimatelyreduce conflict, promote cooperation, and enhancethe contribution of mineral-related investment to

sustainable development.

The result is this Community Development Toolkit,to which there are two main parts:

17 Tools intended for use throughout the projectcycle and which cover the assessment, planning,management, and evaluation phases of communitydevelopment as well as stakeholder relationships.

The Background volume, which contains thebackground and context to the project as well as anexamination of the mineral policies and mininglaws necessary for mineral activity to contribute tosustainable development.

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Community Development Toolkit: An introduction to the 17 Tools


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1 INTRODUCTION

Background to the Project

A key objective of the World Bank Group's Oil, Gas,and Mining Policy Division is to determine howextractive industry investments can better contributeto poverty reduction and sustainable development atboth the community and country levels. The divisionis currently carrying out a sustainability workprogram intended to create and add value for all

stakeholders: governments, affected communities,and private companies. The program includes theimplementation of a variety of new initiatives tomaximize the contribution of extractive activities tomore sustainable national and local development inthose countries and communities wherenonrenewable resource extraction is or has thepotential to become a significant economic activity.

Such initiatives include the Extractive IndustriesTransparency Initiative (EITI) and the Communitiesand Small-Scale Mining (CASM) knowledge-sharing

initiative, as well as this Community DevelopmentToolkit. The approach underlying the initiatives isbased on strengthening the capacity of allstakeholders to:

Articulate and represent their interests and needsin an informed way.

Manage their interactions with other stakeholdersin constructive ways that ultimately translate intoequitable sharing of the various potentialbenefits social and economic, short and longterm that can be derived from large-scale oil,gas, and mining development.

This project has focused on developing amethodological approach supported by relevant toolsthat can be used by the various stakeholders toidentify opportunities, build durable relationships,and promote community development and create thebasis for long-term community sustainability beyondthe life of the extractive activity.

The project concept was originally conceived at ajoint workshop held in November 2000 inJohannesburg for members of the Southern African

Development Community (SADC). The convenorsincluded the World Bank and the InternationalCouncil on Metals and the Environment (ICME)i,among others.

The objective of the workshop was to advance theunderstanding of the major issues and challengesstanding in the way of sustainable mining sectordevelopment within countries of southern Africa.

A consensus emerged around the need to havepractical toolkits to facilitate implementation of the

key elements of a generative process for fosteringconstructive working relationships betweencommunities, companies, and government whilesecuring the sustainability of communities. It wasargued that the toolkits should themselves bedeveloped through a participatory process involvingall stakeholders.

The World Bank and ICME followed up by drafting aproposal (200102) for a joint project to elaboratesuch tools. The World Banks Oil, Gas, and MiningPolicy Division turned to the Energy SectorManagement Assistance Program (ESMAP) trustfund for financial support. The proposal addressed anumber of ESMAPs core objectives, and theknowledge product was to be grounded in thesouthern African experience, also a priority regionfor ESMAP support. The ICME pledged additionalfinancial support from its own resources, even as itwas undergoing its own transition to theInternational Council on Mining and Metals (ICMM).The new ICMM affirmed its commitment to workcollaboratively with other stakeholders in itsinaugural Toronto Declaration of May 2002.

The ICMM Sustainable Development Frameworkiifollowed shortly thereafter (2003). From ICMMsperspective, the project provided an opportunity todevelop tools to assist members, and others,implement ICMMs 10 sustainable developmentprinciples (see box 1.1), against which corporatemembers have committed to measure and reporttheir performance. In particular, the project wasrelevant to the ninth principle where members havecommitted to contribute to the social, economic andinstitutional development of the communities inwhich they operate.


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BOX 1.1 ICMM SUSTAINABLE DEVELOPMENT PRINCIPLES

1 Implement and maintain ethical business practices and sound systems of corporate governance.

2 Integrate sustainable development considerations within the corporate decision-making process.

3 Uphold fundamental human rights and respect cultures, customs, and values in dealings withemployees and others who are affected by our activities.

4 Implement risk management strategies based on valid data and sound science.

5 Seek continual improvement of our health and safety performance.

6 Seek continual improvement of our environmental performance.

7 Contribute to conservation of biodiversity and integrated approaches to land use planning.

8 Facilitate and encourage responsible product design, use, re-use, recycling, and disposal of ourproducts.

9 Contribute to the social, economic, and institutional development of the communities in which we

operate.

10 Implement effective and transparent engagement, communication and independently verifiedreporting arrangements with our stakeholders.

International organizations and associations, such asthe ICMM, the World Coal Institute and the WorldBusiness Council for Sustainable Development(WBCSD), and multilaterals, such as the World Bankand the International Finance Corporation (IFC), now

more than ever recognize the importance of providingguidance to improve the contribution of extractiveindustries to the sustainability of communities. Suchguidance includes the design and introduction of newtools and operating frameworks to facilitate theachievement of sustainability objectives. Recentexamples of tools, both generic and sector specific,include WBCSDs Doing Business with the Poor: AField Guide (2004), the IFCs Doing Better BusinessThrough Effective Public Consultation andDisclosure: A Good Practice Manual (1998), as wellas the ICMM and the World Conservation UnionsIntegrating Mining and Biodiversity Conservation:Case Studies from around the World (2004), theIFCs HIV/AIDS Guide for the Mining Sector (2004),the IFCs Developing Value: The Business Case forSustainability in Emerging Markets (SustainAbilityand IFC, 2002), and ICMM and the United NationsEnvironment Programmes (UNEP) Good Practice inEmergency Preparedness and Response (2005). Inaddition the World Bank and the IFC have variousguidelines and safeguards such as for Resettlementand for Indigenous Peoples that guide theimplementation of development projects includingextractive industry projects.

The Backgroundvolume and Toolsare the endproducts of an extended process to design anddisseminate a set of community development,engagement, and planning tools that will be relevantand valuable to communities, mining companies, and

governments. Toolkit components were developedwith the assistance of community-orientedpractitioners living and working in the southernAfrica region. In addition, analyses were undertakento define the constraints and opportunities providedby existing government policy and institutionalframeworks to promote social and economicdevelopment around extractive activities within theregion. These analyses are included on theaccompanying CD-ROM.

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Structure of the Toolkit

There are two main parts to the CommunityDevelopment Toolkit (see table 1.1). The Backgroundvolume contains the background and context to theproject and an annotated bibliography as well as anexamination of the mineral policies and mining lawsnecessary for mineral activity to contribute tosustainable development. It is divided into four

sections:

An Introduction describing the background of theproject, how it builds on previous work by the WorldBank Group and the mining, minerals, and metalsindustry, the structure of the Toolkit, and the targetaudience. (This Introduction is the same for bothvolumes.)

An overview of the Toolkit development process,including consultation activities, work undertaken,and experience drawn from southern Africa.

A discussion of Government Tools for SectorSustainability. This includes an examination ofoverarching mineral policies and mining laws in fivecountries (Botswana, Namibia, South Africa,Tanzania, and Zimbabwe) to identify current trends inmineral development that contribute to sustainabledevelopment and to define key components that, ifembedded in overarching policy and legalinstruments, become tools for enhancing thecontribution of the mining and metals sector tosustainable development.

An annotated Bibliography, describing the broaderrange of information and resources available onmining and community development. Key referencesare also listed in each tool.

The Tools are divided into four sections:

An Introduction describing the background of theproject; how it builds on previous work by the WorldBank Group and the mining, minerals, and metalsindustry; the structure of the Toolkit; and the targetaudience. (This Introduction is the same for bothvolumes.)

A brief discussion of mining and communitydevelopment, including community developmentgoals and processes, and opportunities to linkcommunity development to the mining project cycle.This section includes good practice principles forsustainable community development, advice on thescheduling of development activities in the miningcycle, and on the roles of government, companies,and communities.

The Community Development Tools sectionintroduces the essential building blocks ofcommunity development and describes 17 tools.Each community development tool is supported bydetailed, step-by-step instructions on how and whento use them. The tools are designed to be easilyextracted for use in the field.

A Glossary of community development termsand concepts.

Target Audience

The Toolkit provides practical guidance for all stagesof the community development process, fromexploration through construction, operations, andeventually decommissioning and closure, includingpost closure.

Because it is the mining company (rather than thegovernment or the community) that applies forexploration and mining licenses, selects explorationtargets, commissions feasibility studies, contractsconstruction, manages the mine during itsoperational life, and prepares and implements themine closure plan, it became evident duringpreparation of the Toolkit that much of it should beaimed at enabling the mining company to undertakethese various steps in a manner that would takeaccount of community views and would contribute tocommunity sustainability. Thus, much of the Toolkit isaimed at mining company staff as the primary users,and different instruments are linked to stages of

development of a mining project. However, there aretools that would be used by communities and wherethe mining company would at most play a facilitatorrole. Governments may also decide to modify theirlicensing regulations to provide a framework thatwould set rules and allocate responsibilities forundertaking some of the actions included in theToolkit.

In addition to being a valuable resource forcompanies, communities, and government agencies,the Toolkit should also be a valuable resource and

guide for civil society groups such asnongovernmental organizations (NGOs) andcommunity-based organizations (CBOs), academics,training and education providers, trade unions,business associations, and mining servicescompanies. In fact, the Toolkit is for anyone who isinterested in facilitating community development.Ideally, most of the tools will be used by severalparticipants together.


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While the work that supported the development ofthe Toolkit took place in southern Africa, and waslargely focused on coal mining operations, the Toolkit

has a broader applicability, both regionally and interms of different types of operation. The Toolkit isdesigned to be applicable for projects in all parts ofthe world, with the important proviso that it does notaddress the unique characteristics of IndigenousPeoples communities. The World Bank hasoperational policiesiii in relation to IndigenousPeoples that apply to any projects (not just miningprojects) that affect them.

Section Key Points

TOOLS

1 Introduction Background, objectives and target audience for the Toolkit.

The Introduction is the same for both volumes

2 Mining and Community Definition of community development, key principles forDevelopment sustainable community development, phases of the mining

project cycle, and stakeholder roles and responsibilities

3 Community Development Tools 17 practical tools for community development supported by

step-by-step guidance to assist in using them

Assessment Tools

Planning Tools

Relationships Tools

Program Management Tools

Monitoring and Evaluation Tools

4 Glossary A guide to some important community development terms

and concepts

BACKGROUND VOLUME

1 Introduction Background, objectives and target audience for the Toolkit.

The Introduction is the same for both volumes

2 Toolkit Development Process Work carried out to develop the Toolkit, including initial work

in southern Africa and consultation activities

3 Government Tools for Sector Analysis of the elements of legislation and regulations that can

Sustainability enable a government to create an environment conducive to

sustainable mineral development

4 Bibliography A guide to additional information and resources on community

development in mining communities

ICMM recognizes that relationships withcommunities are often complex and this isparticularly the case in relationships with Indigenous

Peoples. As a result, ICMM commissioned anindependent reviewiv of the issues surroundingIndigenous Peoples and mining and metalsoperations to assist in facilitating more meaningfulrelationships in these areas.

Last, while the initial work focused on coal mining,the Toolkit is considered useful also for other miningand metals activities, and most if not all of theinstruments would also be relevant for other energyprojects (for example, oil and gas investments).

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TABLE 1.1 COMMUNITY DEVELOPMENT TOOLKIT AT A GLANCE


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2 MINING AND COMMUNITYDEVELOPMENT

Relationship Between Mining andSustainable Community Development

Community development is the process of increasingthe strength and effectiveness of communities,improving peoples quality of life, and enabling peopleto participate in decision making to achieve greaterlong-term control over their lives. Sustainablecommunity development programs are those that

contribute to the long-term strengthening ofcommunity viability.

Often, the most sustainable beneficial legacies thatcommunity development programs around a miningoperation may leave are in the skills and capacitiesthat training, employment, and education programsfor local people provide. The essential element of asustainable community development program is thatit can survive without input from a mining company,especially after the mining project is finished. Thus,community sustainability can be supported by mining

practices that help convert one local asset,nonrenewable natural resource capital, into anotherlocal asset, sustainable human and social capital.

Role of the Mining Industry

The mining industry can play a central role incommunity development by acting as a catalyst forpositive change in areas that may otherwise havelittle if any opportunities for economic and socialdevelopment. This is especially true in situationswhere mining can be a catalyst to help to build up

other (non-mining) sustainable income sources in theareas where the mines are located so thatcommunities are able to develop independently of themine and are thus able to survive the exhaustion ofthe ore reserves and the departure of the miningoperation. An important means of achieving this is tofoster dynamic linkages between communities andexternal support agencies.

During the mine life, there can be tensions involvingthe distribution of mining revenues in a country,between local and national levels. This is because

mineral wealth is usually vested in nationalgovernments rather than owned by people living inthe mining area, and national governments may havepriorities for development that differ from those ofthe communities neighboring the mine.

For companies that see sustainable communitydevelopment as a positive factor for their miningactivities, however, there is a pressing need toexpand the positive benefits and mitigate the harmfuloperational impacts in the local area, regardless ofwhether the central government chooses to return aproportion of royalty payments and other miningrevenues to the local community. Encouraging centralgovernments to invest mining revenues in the regions

most affected by the mining is important, but it isequally essential to work with local and regionalgovernments on local development programs. Mostgovernments have their own national, regional, andlocal development plans. The most effective use ofcorporate investments in local communitydevelopment is in support of existing programs thatprovide additional skills and resources whereappropriate.

Community Development is Good for

BusinessImproved social performance generally leads tobetter financial returns. While the business case forcommunity development will always be specific to theindividual company or operation, some commonthemes are clear. If communities benefit greatly froma mining operation, then they have a significant stakein seeing the mine operate successfully and will helpto overcome obstacles that could adversely affect themining operation. By contributing to local communitywell-being and development, benefits to companiesmay include:

Reputation: Enhanced reputation, in the financialcommunity, in government, and among otherstakeholders

Resources: Improved access to resources, such asore bodies, in environments that are increasinglychallenging or remote

Ease approvals processes and help resolvedisputes: Better relations with local governments,nongovernmental organizations (NGOs) and

communities that can help ease approvals processesfor project development, expansion, and closure andhelp resolve disputes and avoid situations in whichlocal groups might hinder or even prevent miningfrom taking place

Community Development Toolkit: Introduction to the 17 Tools

MININGANDCOMMUNITYDEVELOPMENT

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8

MININGANDCOMMUNITYDEVELOPMENT Reduced closure costs and liabilities: Resulting

from better management of social risk, bettermanagement of community expectations, andreduced community dependency on the operations

Efficiency and productivity and local supportservices: Greater efficiency and productivity owing tothe availability of improved local support services

Local workforce: Improved education and skilllevels of the local workforce enabling companies toreduce their dependence on expensive expatriatesand increase local knowledge in operations,knowledge that can save time, effort, frustration, andmoney

Employees: Improved employee recruitment,retention, and engagement.

In other words, community development is areciprocal process. By helping communities todevelop themselves in a sustainable manner, a

mining company is simultaneously helping its ownbusiness to succeed. If we can all move beyond thedonor/recipient model of community relations andview mining operations and their communitydevelopment programs as a mutually beneficialpartnership process, the goal of sustainability willbecome more achievable.

Good Practice Principles for SustainableCommunity Development

The most effective and sustainable communitydevelopment activities reflect some basic principles:

Adopt a strategic approach: Development activitiesat the operational level are linked to long-termstrategic objectives for the company and are alsoaligned with existing and future community and/orregional and national development plans.

Ensure consultation and participation: Localcommunities are actively involved in all stages ofproject conception, design, and implementation,

including closure and post-closure.

Work in partnership: Private, governmental, NGO,and community organizations bringing different skillsand resources but shared interests and objectives can achieve more through working together thanindividually. Formal or informal partnerships canalso reduce costs, avoid duplication of existinginitiatives, and reduce community dependency on themining operation.

Strengthen capacity: Programs that emphasizestrengthening of local community, NGO, andgovernment capacity are more sustainable in thelong-term than the supply of cash, materials, orinfrastructure without a properly designed forward-looking participatory framework. While infrastructureis often essential for the development of remotecommunities, it will only be sustained if there is anadequate maintenance program supported by a welldesigned participatory process including localcommunities and governments.

Mining Operations Support CommunityDevelopment

This is the focus of the Toolkit. While the tools havebroad applicability, there is no simple blueprint forhow they will be used at any particular site. Miningoperations support for community development isalways determined by local conditions; that is, by thenature and scale of the operation, local governmentresources, and local peoples specific needs andpriorities.

Conventionally, mining companies have wanted totake immediate measures to alleviate poverty theyobserved in the neighborhood of their miningprojects. Typically this has been by building schools,clinics, or hospitals and by sponsoring externalhealth and education service providers to create newprograms.

Often these efforts, although appreciated as

generous gifts to local communities, have not lastedbeyond the life of the mine, and sometimes not evenbeyond the tenure of the particular company staffthat instigated the projects. The reasons for this arebecause the projects:

Were chosen by the mining company people and/orthe local elites

Were built or run by outsiders, with littlemanagement involvement from local communitymembers

Were only accessible by the more affluentmembers of the community and not by the poorermembers

Required technology or knowledge not locallyavailable to maintain them

Or because the capacity of local people to managethe programs was not built up to a sufficient level.



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The sum of these factors is that, with the best ofintentions, the projects were imposed upon localcommunities and they therefore did not feel anyparticular ownership of them nor did they have theneeded capabilities to sustain them, resulting in aprogressive decline once external support waswithdrawn.

Further, if local communities and governmentagencies become accustomed to mining companiestaking charge of the provision of infrastructure andservices, an unhealthy dependency relationship canevolve, which works against sustainability.

Mining companies should take a strategic andintelligent perspective and focus upon their ownareas of expertise to determine where thoseintersect with community needs. In that way there isa reduced chance of companies filling roles thatshould be the responsibility of others. For example,schools and clinics are the areas of expertise ofeducational and medical experts and the

responsibility of governments and are not corebusiness skills for mining companies. Certainly,companies have building expertise, but the buildingsare only the skeleton of the health and educationsystems, and are not much use without teachers,nurses, course materials, and medicines, none ofwhich are mining business specialties. Even wheremining companies are willing and able to put in placesuch health and education services, there remainsthe inherent risk that when the mining companyceases its activities and departs, these services willcollapse.

By contrast, mining operations do have skills toshare with communities, for instance, in trade,administration, management, finance, operating, andmaintaining mobile and fixed machinery, and inimproving local supplier and contractor capability.Partnership programs for local apprentices in theseareas of capacity building will be more beneficial inthe long term than the traditional list of buildings.

The challenge, however, is to not only build the skillsbut also facilitate the growth of other activities inparallel to mining. For example, the Lac La Ronge

Indian Band initially developed trucking and cateringskills with support from the local uranium mines innorthern Canada. Over time, they expanded theirbusiness away from the mines and now have anannual turnover of Can$65 million in 2005 supplyingservices in the surrounding region. This is anexample of how mining companies can localize someof their product and service procurement policies tohelp build local supply capabilities. In addition tohelping train local community members to providegoods and services, companies can also considersupporting micro credit schemes to help encourage

small business.

Local agriculture development is also a key area ofcommunity sustainability. One of the sustainabilityrisks faced by communities is that income from amining operation results in the community being able

to purchase most of its food needs from outside, witha resultant decline in local agriculture production.The loss of local agriculture capabilities can be acause of severe problems at the time of mine closurefor a community when it no longer has the income topurchase most of its food from outside.

Acid Test for Sustainable CommunityDevelopment

When reviewing programs for communitydevelopment, mining companies should askthemselves how those programs will fare when themine has closed (and remember, this may happensooner than planned). If ongoing company support,leadership, and maintenance will be required to keepa program going in good order, then it is notsustainable and will need to be rethought. This iswhere the real contrast between highly visible,tangible projects, such as road building, and low-key,hard to display programs, such as womens literacy

programs, is sharpest.

A road will be obviously useful, with people, bicycles,and buses using it every day while the mine is thereto maintain it. Picture the same road some yearsafter the mining operation has closed, and neitherthe local district government, the nationalgovernment, nor the local community feel theresponsibility nor has the capacity to continue itsupkeep. It may well be potholed, crumbling, andlikely to get worse, or rehabilitation requirementsmay have necessitated its removal, meaning that it

should never have been classified as a sustainablecommunity benefit at all. In either case, unless amajor construction project like a road is developed aspart of a community-centered program, withcommunity plans and capacity for ongoingmanagement and maintenance, or is part of apartnership initiative with the host government thatwill therefore take responsibility for its care andupkeep when the mine is gone, then it cannot becalled sustainable.

By comparison, womens literacy and numeracyprograms may yield much more modest

demonstrable results. There may not have been anyfollow-on enrollments in adult education classes norwomen achieving high school diplomas. However, if anumber of women became able to read, write, andmanage bank accounts, which helped them to savemoney and helped them establish and operate smallbusiness enterprises to benefit themselves and theirfamilies, then those skills will not be lost. Further, ifsome of the women value education more as a resultof their experience of learning, and encourage theirchildren to complete their schooling so that schoolretention rates are raised, then the benefits of

training those women will multiply and continue.Thus, there is no need for the mining company tomaintain a presence to sustain the benefits of theprogram after closure. Although on a smaller scale,this sort of development is sustainable.


9

MININGANDCOMMUNITYDEVELOPMENT


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10

MININGANDCOMMUNITYDEVELOPMENTRoles and Responsibilities for Community

Development

Community development needs clearly defined rolesand responsibilities of government, companies,NGOs/community-based organizations (CBOs), andcommunities (table 2.1), and shared commitmentfrom all levels within an organization.

Government

Strategic leadership

Strategic coordination

Provide policy andregulatory frameworkfor project development,operation, closure, andpost-closure

Support capacitybuilding at the local levelincluding monitoringcapabilities

Deliver local services

Leverage state andexternal resources

Monitoring andevaluation

Companies

Manage exploration,construction, operation,and closure of mines inaccordance withregulatory requirements

Catalyst for action atthe community level

Stakeholdercoordination aroundproject site

Financial, material, andfacilities support for localcommunity

Transfer of technicaland management skillsand expertise to localcommunity


NGOs/CBOs

Local needsassessment

Local capacity buildingand institutionalstrengthening

Community projectdesign andimplementation

Leverage externalfunding for communitysupport


Community groups

Local needs definitionand prioritization

Local knowledge andvalues

Community planningand mobilization

Mobilization of localassets and resources


Internal organizationand conflict resolution

TABLE 2.1 TYPICAL ROLES AND RESPONSIBILITIES OF STAKEHOLDERS


The precise roles of the various participants dependon local circumstances and change during the courseof both the mine and the community developmentprocess. However, some broad principles are clear:

Government: Has the primary responsibility forensuring that communities benefit from developmenton their land or in their region. Governments shouldtake the lead in setting policy and standards toensure development takes place at the local level,planning the development of social and physicalinfrastructure and land use, developing systems for

project monitoring and evaluation, and protecting therights and interests of citizens.

Companies: Can also play an active role to supportcommunity development, but they should not assumethe role of government at the local level. Wheregovernment capacity is insufficient, companies maybe forced to take a leadership role but to the extentpossible it should be shared with NGOs andcommunity organizations. In the longer-term,however, they should focus on ensuring that localinitiatives work constructively alongside regional

government development programs and on buildingpartnerships to help develop sustainable communitycapacities and resources. Most importantly, theyshould foster skills transfer and encourage thedevelopment of small businesses.

NGOs/CBOs: Can play an important role inadvocating on behalf of local communities and indelivering local services. NGOs need, however, toclearly define their roles and to identify where theirinterests may be different to those of the localcommunity. NGOs involved directly in communityissues need to respect different communityperspectives toward proposed development and workon building their capacity to articulate localperspectives and to determine that the full range ofdevelopment options are available to communities.

Community groups: Play the central role.Community development is essentially the processthrough which communities address locally definedneeds and achieve improvement in quality of life.Development reflects their needs, priorities, andaspirations; is achieved largely through theirownership and commitment to locally defineddevelopment goals; and is sustained when they havethe capacity, confidence, and opportunity to planappropriate strategies and mobilize resources tofulfill their development goals.


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In addition, international development agencies mayalso play a role in community development in themining sector, although they are not always presentin areas where mining takes place. Donors haveunique influence and responsibility, particularly inharmonizing the standards by which communities aretreated and in bringing influence to bear on publicand private-sector development actors. They providean important source of development resources,expertise, and experience and can advisegovernments, companies, NGOs/CBOs, andcommunities of good practice as well as helpingmobilize financial resources for local developmentprojects.

Community Development in the MiningProject Cycle

Community development activities span all phases ofthe mining project cycle. All present particularchallenges. It is important to remember that therelationships between mining companies, localcommunities, and other stakeholders begin longbefore construction of a mine commences, andcompanies would be wise to invest in establishinggood local relationships at the earliest stagespossible.

While the Toolkit includes guidelines on whendifferent tools are applicable, as a practical rule ofthumb the sooner you start, the better. Processes canmore easily be slowed down than speeded up to meeta communitys needs. Additional guidance for the

exploration phases of project development is providedin Environmental Excellence in Exploration (E3)v: anonline reference (an e-manual) of best practices inenvironmental management and communityengagement practices for minerals explorationglobally. Where leases or projects are acquired fromother companies, an assessment of relationshiplegacies must be made at the earliest possible stageand steps toward amelioration taken as soon aspossible, if needed.

Special attention is needed at the construction stage,

which can be most traumatic for communities. Thereis often an influx of construction workers fromoutside the region, typically with little affinity for localpeople, their customs, or their needs. This is thestage when community incomes change drasticallywith haves and have nots starting to emergeaccording to which individuals and families receiveemployment and/or compensation and which do not.It is also a time when local prices for food, goods, andservices typically rise as money flows into thecommunity, and making the plight of have notseven worse. It is also a time when traditionalauthority structures and family relationships can beweakened and domestic violence can increase inresponse to community stresses.


11

MININGANDCOMMUNITYDEVELOPMENTThere can also be unintended consequences,

especially at the construction stage. For example, theconstruction of a mine in a remote location can resultin all the local transportation being contracted tomeet the needs of construction. Pressure foraccommodation and land increases, and demand forfood and supplies rises to meet the needs of theconstruction site, causing price increases that benefitsuppliers and farmers. Unintended consequencescan be that local people no longer have easy accessto transportation to other locations, the delivery ofsupplies to local stores is disrupted, and the priceincreases for food and suppliers harms those withlittle or no income typically women and children who are least able to protect themselves.

The importance of involving local people inemergency planning has been identified in workcarried out by the International Council on Miningand Metals (ICMM) and the United NationsEnvironment Programme (UNEP). The ICMM andUNEP publication, Good Practice in Emergency

Preparedness and Response (2005), presents the 10steps of UNEPs Awareness and Preparedness forEmergencies at Local Level process and otherelements of a best practice emergency plan. It coverseverything from identifying who does what in anemergency to training and proper liaison with thelocal community. This is followed by and linked to aseries of case studies gathered from across theindustry that illustrate some of the principlesinvolved and how they might be effectively applied.

The importance of monitoring and evaluation cannot

be overstated, especially since relationships with andimpacts on local communities will continue after themine is finished. It is essentially important to ensurethat all planning takes post-closure aspects intoconsideration. This is particularly the case wherelong-term post-closure monitoring will be required,which is becoming more common.


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12

MININGANDCOMMUNITYDEVELOPMENTTable 2.2 shows the sequence of community

development tools and activities throughout themining project cycle. But remember:

Many of those activities will be repeated throughoutthe project cycle. Never stop assessing localcommunity or regulatory conditions, identifyingstakeholders, or developing human resources andcapacities.

The earlier it is started, the better, but it is never toolate to start applying community development toolsand approaches. If it has not been done so already,begin at any time and follow the sequence of activitiesset out in the matrix at the beginning of the Toolkit.


For sustainability, always consider how acommunity development program will cope withoutsupport from the mine, whether the mine closes in 5or 50 years. All stakeholders should start planningfor closure from the earliest opportunity. Taking intoaccount closure needs and implications can wellaffect the initial mine design and infrastructureprovision. Planning for closure should becomeprogressively more detailed as the mine lifeadvances.

Phase

Explorationa

Feasibility

Construction

Operations

Decommissioningand closure

Post closure

Description

Highly competitive and structured within very short time horizons.

The nature of the relationship between company and local communities is establishedand generally sets the tone of relationship from then forward. This is a challenging timesince, in the earliest stages at least, there is an inbuilt mismatch between the interestsof communities that want full information disclosure and a long-standing relationshipand the interests of exploration teams who want to keep their data confidential and whowill move on if there are no promising prospects for follow up.

Extensive technical studies and consultations with government and local stakeholders.

Important opportunities for the company to engage with local communities toestablish, for example, clear understanding of social, environment, development needs,priorities, and concerns as well as inform communities about possible mine developmentscenarios and timing.

Relatively short, but typically brief and intense, set of activities in the constructionphase potentially with a large and/or temporary workforce.

The influx of construction workers can be highly traumatic for the community. Thisphase often introduces significant cash into community, sometimes for the first time,with profound impacts that can be both negative and positive for the community.

Medium- to long-term time horizons. Period of greatest presence and stable activities.

Opportunities to implement long-term community development programs, focusing onlocally identified development needs and community participation and stakeholderpartnerships in program design, implementation, and monitoring.

May be according to a long-term plan or may occur prematurely. Need for closureplanning throughout the mining project cycle to ensure that programs can survive mineclosure.

Role and development of local partners is critically important in planning for closure.

Even well planned and implemented closure will likely cause significant decline incommunity income and tax base of local government.

Long-term time horizon. Includes monitoring of environmental impacts and socialconditions following closure.

Requires clear allocation of responsibilities for monitoring and remediation of any post

closure impacts.

Support for post-closure alternative income generation measures and sustaining thedelivery of social services.

TABLE 2.2 DESCRIPTION OF PHASES OF THE MINING PROJECT CYCLE ANDCOMPANY/COMMUNITY INTERACTIONS

aDetailed online guidance on best practices in exploration is available from E3 at www.e3mining.com
http://www.e3mining.com/http://www.e3mining.com/


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13

COMMUN

ITYDEVELOPMENTTOOLS3 COMMUNITY DEVELOPMENT TOOLS

Using the Tools

The tools are designed for government officers, minesite managers, and community relations staff andcommunity officials and members in mining regions.They briefly provide and simply explain someessential tools for community development in a waythat makes them easy to learn and to use,particularly for people who have limited time for

development jargon or theory.

By following the step-by-step approach anddetailed guidance on the use of simple and effectivetools the community development process will bebetter understood and community developmentactivity in and around mining operations will bebetter supported.

The tools have six specific objectives:

To improve understanding of local communitydevelopment processes

To support lasting improvement in the quality of lifeenjoyed by mining communities

To facilitate community empowerment throughparticipatory development processes

To build local capacities and developmentresources

To foster constructive working relationships amongcommunities, companies, and governments

To reduce conflict in mining communities andregions.

The tools provide practical guidance for all stages ofthe community development process, from firstcontacts between exploration geologists and localcommunity members, or the acquisition of existingprojects, through to construction, operations, andeventually decommissioning, closure, and post-closure.

Much of the tool content is aimed at mining companystaff and linked to stages of development of a miningproject. This is because the tools are designed foruse in the mining and metals sector.

However, the tools should also provide a valuableresource for government agencies, NGOs, trainingand education providers, trade unions, businessassociations, and mining services companies, in fact,anyone who is interested in facilitating communitydevelopment.

Ideally, most of the tools will be used by severalparticipants together in some type of formal or

informal partnership. For example, communityproblem ranking workshops may be organized by themining company in conjunction with communitymembers, with the participation of local governmentofficers and facilitated by a local NGO.

Some other tools may be used by differentparticipants from slightly different perspectives.Strategic planning and stakeholder analysis tools, forexample, may be used by each of the company,government, and NGOs in a similar fashion but withvarying results owing to the different viewpoints ofeach group. In the introduction to each category oftools, the use by different stakeholders is explained.Anybody can use any of these tools when they need toassess local conditions or plan, manage, or evaluatelocal development activities.

The tools are a reference and a guide to help youwork more effectively in community development.The Toolkit is designed to provide the tools you need,when you need them.

Initially, you may wish to look briefly through thetools to review the range of development approaches

described. As you begin to work through some ofthose development approaches, you may wish tofocus on specific tools to ensure you understandwhen and how those tools may be most effectivelyapplied.

They are not all-encompassing (or they would be toobulky to use). Other useful sources of advice will befound, including those noted in the Bibliography.These are particularly relevant when faced withissues requiring separate and specific treatment,such as resettlement, and references to the World

Bank guidelines on this and other topics are providedin the Bibliography. The tools also do not remove theneed for knowing and observing laws and regulationsthat apply to an operation.

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Using the tools will not mean that you will neverneed help from others. Certain aspects of communitydevelopment require expertise that you may not have.The tools should help you decide when you needassistance and what kind of assistance that shouldbe.

Gender and Inclusion

Underlying the use of the Toolkit is an importantgender dimension. Typically mining development hasa gender bias whereby most of the benefits(employment, income, royalties, and infrastructureprojects) tend to accrue to men, and the negativeimpacts (cultural disruption, social stress,environmental harm, and domestic violence) affectwomen and children. Corrective actions are availablethat can redress this situation and improve theeconomic and social empowerment of women andimprove the well-being, safety, and security of bothwomen and children. Each stakeholder group

(government, companies, communities, and civilsociety groups) should examine their own activitiesthrough a gender prism to see how well women arerepresented and how much their views and concernsare taken into account in using the tools and inassociated monitoring and evaluation activities.

Categories of Tools

The tools have been divided into several categoriesaccording to their main uses, which are also the

main elements necessary in a healthy communitydevelopment program:

Assessment tools: For assessing the environment;that is, who the people are who live there, how theylive, whether there are any existing conflicts, andwhat resources will be need to build and support acommunity development program in this setting.

Planning tools: To design development programsdesired by all and therefore with an opportunity tobecome sustainable. Some plans may be internal tospecific organizations, such as a company or NGO.

Other plans may be developed by coordinated effortsby many groups.

Relationships tools: For building and maintaininggood relationships between all stakeholders, such asgovernment, community members, companyrepresentatives, and local organizations.Relationships are the foundation of all cooperativeactivities and therefore essential for soundcommunity development programs.

Program management tools: For supporting andimplementing the plans developed with the planningtools. These management tools include means forensuring that plans are realistically resourced andscheduled and that there are people takingresponsibility for implementing them. Plans are justpieces of paper until they are put into motion.

Monitoring and evaluation tools: For measuringprogress toward program goals. Some evaluationsmay be internal to individual organizations, butideally all participants will work together on someevaluation tools so that any modifications required toplans will be developed in a coordinated andcooperative manner.

Some Advice

Be patient. Let people develop at their own pace.One of the greatest challenges of providing goodcommunity development support is working to the

timetable of the community. Community leaders andmembers will likely be fully aware of this. If you are amining company manager, government official, orNGO representative, you may have project deadlines,annual reports to complete, and budgets to utilize.These imperatives, coupled with the temptation tosee immediate results from your work, can be strong.

Remember that development is a long-term process.It is about building local capacities and strengtheninglocal organizations and not necessarily theimmediate or visible outputs of your development

activity. Development is the process of change in localpeoples capacities and resources, in how theyorganize themselves, and in how they relate to theoutside world.

For those who are not community leaders ormembers, your role is to facilitate that process and totake a back seat or supporting role. You probablyhave special skills, knowledge, and abilities andaccess to resources, all of which could achieve thetangible aspects of community development projectsmore quickly than people just learning the ropes can.

However, you will really have achieved the goal ofsustainable community development when thecommunity feels that it can manage well without you.


14

COMMUN

ITYDEVELOPMENTTOOLS
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15


ENDNOTES

i On May 21, 2001, the Board of Directors of the International Council on Metals and Environment(ICME) agreed to broaden the groups mandate and transform itself into the International Council onMining and Metals (ICMM), and to move its headquarters from Ottawa, Canada, to London.

ii See www.icmm.com/sd_framework.php.

iii World Bank Revised Operational Policy and Bank Procedure on Indigenous Peoples (OP/BP 4.10)available atweb.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSOCIALDEVELOPMENT/EXTINDPEOPLE/0,,menuPK

:407808~pagePK:149018~piPK:149093~theSitePK:407802,00.html.

iv See ICMM Mining and Indigenous Peoples Issues Review, available atwww.icmm.com/library_pub_detail.php?rcd=175.

v See www.e3mining.com

ENDNOT

ES
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List of Assessment Tools in this Toolkit

1 Stakeholder Identification

For identifying all the people with an interest in the

project or who may be affected by the project.

2 Social Baseline Study

For drawing up a profile of the communitysurrounding the project area and its regional andnational setting.

3 Social Impact and Opportunities Assessment

For assessing the impacts, both positive and negative,that the project may have on host communities andhow to manage them.

4 Competencies Assessment

For determining the attributes your team has andwhether other skills, knowledge, and understandingmay be required.

ASSESSMENT

TOOLS


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Guidance for Using Assessment Tools

Assessment is the first thing you need to do whenstarting work in a new environment to determineyour needs and those of others. Communities,shareholders, regulators, and other stakeholdersare increasingly demanding that baselineassessments be undertaken for projects, so thatthere is a background profile against whichmonitoring and evaluation measurements may bemade. (See table below for assessment tools andwho might use them.)

Government officer: As a government officer youmay have been transferred to a new district andneed to assess your new environment or a newmining project may have come to your district, soyou need to assess their plans. By learning who allthe stakeholders are with an interest in the project,whether any conflicts exist between the project andthe community, and how the company intends toaddress its social impacts, you will be better placed

for identifying opportunities for government plans todovetail with community and company plans.

Community member: As a community memberyou may have moved to a new home and need toascertain what activities are taking place in the newneighborhood or a new project may have announcedits intention to start up locally so you need to assesstheir intentions. You may not be inclined to conducta stakeholder identification exercise or socialimpact assessment yourself but, by identifyingyourself as a stakeholder and participating in impact

assessment activities, such as community meetingsand focus groups, you will be shaping the process tosuit your community.

You will also be getting to know the otherstakeholders, which will help you to participatefurther later.

Community organization or NGO: As a member ofa community organization or NGO you may need toassess the plans of a new project or a new companymay have acquired an existing project and you maywant to evaluate how different that new companymay be from the former owners. Your organizationmay want to conduct a stakeholder identificationexercise to make sure that you are consulting all therelevant people in the community, government, andcompany.

Mining company staff: As a member of the miningcompany staff you may have started work on a newmining project and need to assess the potentialimpacts that the project might have on localcommunities, or your company may have bought anexisting mine, so you need to determine what thelegacies are from the previous owners and learn

about the surrounding social and economicenvironment. Assessment tools provide valuableinformation on demographic and economicconditions and trends, political structures, localorganizations, cultural traits, and other factors thatcan influence the way in which affectedcommunities will respond to anticipated changesbrought about by the project.

Assessment Tools and Who Might Use Them

Participant Assessment Needs Appropriate Tools Tool No.

Government To know new stakeholders Stakeholder Identification 1Officer

Understand project impacts Social Impact and Opportunities 3Assessment

Understand the local community Social Baseline Study 2

Community To know new stakeholders Stakeholder Identification 1Member

To identify own needs and priorities Social Impact and Opportunities 3Assessment (participation)

NGO Member To contribute to assessment data Social Impact and Opportunities 3Assessment (participation)

To know new stakeholders Stakeholder Identification 1

Mining Company To know new stakeholders Stakeholder Identification 1Staff

Understand project impacts Social Impact and Opportunities 3

Assessment

Understand the local community Social Baseline Study 2

Ensure adequate skills, knowledge Competencies assessment 4and attitudes for communitydevelopment staff


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Sta

keholderIdentification

ASSESSMENT

TOOLS

Description

Stakeholder Identification is the discovery of a projects stakeholders; that

is, of their interests and the ways in which those interests affect a

projects viability. Stakeholder Identification contributes to project design

by learning about the goals and roles of different groups, suggesting

appropriate forms of engagement with those groups.

Stakeholders are persons or groups who are affected by or can affect the

outcome of a project. Stakeholders may be individuals, interest groups,

government agencies, or corporate organizations. They may includepoliticians, commercial and industrial enterprises, labor unions,

academics, religious groups, national social and environmental groups,

public sector agencies, and the media.

1

1Stakeholder Identification



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How to use this tool

Your initial objective is to identify absolutelyeveryone and every group that might have aninterest in the project in order not to miss anyone.Later, you will ascertain who has an enduring ordeep interest in the project, but to start with aim forinclusivity.

Step 1: Brainstorm existing stakeholders.This is best done by a team of people who haveinteractions with parties external to theorganization. Every project already has existingrelationships. List those first. Use the table oppositeas a checklist, and name the stakeholders for theproject you are working on. Some stakeholders areeasily identified, such as people in the neighborhoodof the project, interest groups in the country wherethe project is located, local and regional governmentpeople, and so on. These may be termed directstakeholders. Other, indirect, stakeholders may bemore difficult to identify, and you need to think more

laterally about how you establish and maintainrelationships with them. Examples of these may beNGOs or academics situated in locations remotefrom the project but nonetheless with an interest init.

Step 2: Network to expand the list. Ask thestakeholders you already know to suggest otherpeople with an interest in the project. Be inclusive.Do not worry about numbers. They will even out inthe end. Worry more about leaving people out.

Step 3: Check that you have included all thepossible stakeholders that you and your colleaguescan think of. A question to ask yourself for ensuringthat all key stakeholders are included in the list is:Whose support or lack of it might significantlyinfluence the success of the project?

Purpose

The purpose of this tool is to identify acomprehensive list of people and groups with aninterest in your project. This can be used forconsultation purposes, impact assessment, andpartnership assessment as the project evolves.Stakeholder Identification provides a starting pointin building the relationships needed for successfulcommunity development; that is, finding whichgroups to work with and how they might mosteffectively be engaged.

It is especially important to seek out stakeholderswho may be marginalized or not represented informal structures (for example, Indigenous Peoplesor women). You cannot assume that their interestswill be covered. They need to be consideredseparately to ensure that their voices will be heard.

When to use this tool

From the earliest prefeasibility stages of a projectstart to build the stakeholder list, and then revisethe list whenever there are any changes in projectdesign, scope, social environment, or activity, rightthrough to closure. In the context of closure,employee consultation needs to be undertaken as adistinct closure activity. Revise the listsystematically at least once per year or more often ifchanges are observed.

The following process is aimed at company staff, but

could be applied just as easily to stakeholderidentification by government or NGO representativesor community members.

Stakeholder Identification is a dynamic process; thatis, some stakeholders disengage and others join inat different stages of project development. There isno such thing as a static list that can be filed awayonce all stakeholders have been successfullyidentified. Take care to remember internalstakeholders. For example, your own employeesform an essential part of the community and shouldbe kept informed and listened to just as much asexternal stakeholders. This will enhance employeesfeeling of ownership. In addition, many externalstakeholders gain knowledge of your activitiesthrough interactions with your employees, so itmakes perfect sense to keep your own staffengaged.


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Checklist of possible stakeholders

Use this generic list to jog your memory

Sta

keholderIdentification

AssessmentTo

ols

1

Other advocacy groups

Health and safety groups Human rights groups Social justice groups Political groups Others

Other civic organizations

Churches and religious organizations Trade or labor unions Educational organizations Fraternal organizations Charitable organizations Organizations serving children Organizations serving the elderly Professional and trade associations

Others

Internal

Board of directors International advisory board Top management Shareholders Legal people Health, safety, and environment people Employees Retirees

Families of employees Human resources/employment department Others

Specially concerned people/groups

With interest in your site (small-scale miners) With interests in your company (existingpartners) With interests in your industry Who are already involved Who want to be involved With emergency response job

Who you wish to involve News media Others

Communities

The local community near your site The local community near your head office The regional community The national community The international community

Specially impacted

Nearest neighbors Elderly/ill/incarcerated/disabled Indigenous Peoplesa

Racial minorities/oppressed groups Children/schools/orphanages Others

Government officials

Local officials Regional officials State officials National officials Opposition officials Others

Industry

Individual companies Competitors

Suppliers Customers Industry associations Business associations Others

Regulators

Local agencies Regional agencies State agencies National agencies International organizations

Others

Environmental Non-GovernmentalOrganizations and Community BasedOrganizations

Local groups Regional groups State groups National groups International groups Individual green activists

Others

a For a detailed examination of the issues in relation to mining and indigenous peoples, see ICMMs Mining and Indigenous PeoplesIssues Review, available at www.icmm.com/library_pub_detail.php?rcd=175 .
http://www.icmm.com/library_pub_detail.php?rcd=175http://www.icmm.com/library_pub_detail.php?rcd=175


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Key references

IIED and WBCSD: Breaking New Ground Mining, Minerals and Sustainable Development

Available: www.iied.org/mmsd/

International Finance Corporation (IFC) Environment Division: Investing in People: SustainingCommunities Through Improved Business Practice. A Community Development Resource Guide forCompanies (section 2: Defining Community).

Available: www.ifc.org/ifcext/enviro.nsf/Content/Publications

IFC Environment Division: Good Practice Notes: Doing Better Business Through Effective PublicConsultation and Disclosure (section C, Guidance Note 2: Stakeholder Identification).

Available: www.ifc.org/ifcext/enviro.nsf/Content/Publications
http://www.icmm.com/library_pub_detail.php?rcd=175http://www.icmm.com/library_pub_detail.php?rcd=175http://www.icmm.com/library_pub_detail.php?rcd=175http://www.iied.org/mmsdhttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.iied.org/mmsd


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Soc

ialBaseline

Study

ASSESSMENT

TOOLS

2

2Social Baseline Study


Description

The gathering and compilation of baseline data that describes the state of

the social and economic environment and the characteristics of the

populations living in the area around a mining project is usually known as a

social baseline study. A social baseline study investigates:

Demographic factors: Numbers of people, theirlocation, population density, age, ethnicity, health,income and so on

Socioeconomic determinants: Factors affectingincomes and productivity, land tenure, access toproductive inputs and markets, familycomposition, kinship reciprocity, and access towage opportunities, and labor migration

Social organization: Organization and capacity atthe household and community levels affectingparticipation in local-level institutions as well aslocal decision-making processes and access toservices and information

Economic organization: Local and regionalbusinesses and commercial structures,

infrastructure supporting economic activity,government, and other economic/industrialdevelopment plans for the area

Sociopolitical context: Stakeholder organizationsdevelopment goals, priorities, commitment todevelopment objectives, control over resources,experience, and relationship with otherstakeholder groups

Historical context: Historical issues and events(migration, relocation)

Needs and values: Stakeholder attitudes andvalues determining whether developmentinterventions are needed and wanted, appropriateincentives for change, and capacity ofstakeholders to manage the process of change

Human rights context: Prevailing human rightsissues and country risks and so on

Institutions: Role, governance, resources, andcapacities of local institutions as well asregulatory framework

Cultural background: Cultural norms andpractices and places of high cultural value
http://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/Content/Publicationshttp://www.ifc.org/ifcext/enviro.nsf/C

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