Communities work in Rio Tinto Coal Mozambique

Social / Community Development

Our Approach

05 August 2011

Proposed Role of Social / Community Development Manager

• Effective delivery of social development /

community programme by managing the

development of the programme content and

monitoring implementation in the field

• To ensure self reliance of Communities we

work with and sustainability of programs we

implement.

• Overall responsibility for the delivery of Rio

Tinto Coal Mozambique projects within time,

cost, quality, safety and environmental criteria

and in terms of the Rio Tinto Business

Conduct and Ethics Policy

• Overall decision making about Communities

relationships, programs and work activities to

the needs of the business

What we need to do

1. Adherance to Rio Tintos community standards

Ensuring Rio Tinto´s coherent set of architectural elements for social competency in Mozambique operations

Adhering to business unit community polices that are consistent with each other

and with local circumstance;

What needs to be done - Step 1

Develop Baseline Community AssessmentWith different sampling methods covering core areas as well as

The wider context to understand the impact , i.e. migration

Ensure that we embrace values-based principles called 'The Way We Work’ that

guide operations interface with their workforces, their neighbors' and the wider

world;

What need to be done - Step 2

Conclude Social Risk Analysis based on BS

Develop and annually update a 5-year business unit community plan that

encompass defined local objectives and timeframes

What needs to be done Step - 3

Prepare a Multi Year (5 years with annually review) Plan

Wider country context

Provincial context

Mining districts context

Why Baseline

Community

Assessment

rebutting allegations that the business has caused harm

Identifying economic and cultural

dynamics that pre-existed

In order to make claims to be improving

communities livelihoods

Identifying social changes that are

imminent or underway

to help avoiding situations where the

business is blamed for something that would

have happened regardless of its

presence or

absence

Building PartnershipWe promote active, gender sensitive partnerships at international, national, regional and local levels. These are based on mutual commitment, trust and openness.

• We need to assess the presence of and proactively engage with other

organizations, universities, UN organizations, WB/IFC, non government

organizations (NGOs) or other community groups; regional

organizations, such as environmental, wildlife, flora & fauna groups, civil

society groups, welfare groups and the like; promoting their capacity for

partnerships.

• We need to setup a gender sensitive community skills base with regard

to trades; economic opportunities, capacity of local people to take up

employment at the operation; the extent and need for training to assist

maximizing regional and local employment.

• We need to gather information on the quality and capacity of regional

and local suppliers and contractors. We need to support small business

development, e.g. training programs, business incubators, and advisory

services.

September 2011 to March 2012 PlanMy aim - goals Milestones Aug

2011Sept 2011

Oct 2011

Nov 2011

Dec2 011

Jan 2012

Feb 2012

Mar 2012

Baseline Communities Assessment

ToRs, Tender , Award, Survey, Community consultation, Data processing, draft Report, Final Report

Community Risk Assessment

Community consultation, Data interpretation, participatory Risk assessment, prioritisation

Multi Year Communities Plan

Participatory / consultative planning process,Budgeting

Development of new Strategy

Participatory / consultative process, community and stakeholder consultation

Team setup Competency assessment of current staff, identification of gaps, hiring of qualified staff

Office setup Identifying location, purchase of necessery items

Capacity building

Roll out

Current Situation Gaps Proposed way forward

Strategy:

What is our strategy?

Current strategy not broadly disseminated

How do we intend to achieve our objectives?

KPMG was engaged to draft a SDP (5/2001) and came up with objectives/strategic areas we should focus on, this document was produced for Benga, a broader document embracing all operations doesn't exist.

How do we deal with competitive pressure?

No collaboration with other Mining houses like Vale or others.

A existing Corporate Social Responsibility Policy (version 1.0 from 01.03.2010), mainly designed for Benga, was not disseminated throughout programs

No objectives set for broader business units, ad hoc decisions and

No Informal and formal meetings apart of GoM joint meetings

Develop and align Strategy, policy and practice with global Rio Tinto standards and international acknowledged best practises

Once approved dissemination of strategy to all internal and external stakeholders

Multi year planning with set aims contributing to Mozambican poverty reduction strategy and the MDGs

development of business objectives and local applicable social performance indicators

Setting up of a regular meeting with other Mining houses and large companies like MLT in the Region

Structure:

How is the company/team divided?

Separate teams with no or very little interaction

What is the hierarchy?

Benga team reports to the Benga General Manager,other teams reporting directly to Australia

How do the various departments coordinate activities?

A Steering committee was leading Benga but not other teams

How do the team members organize and align themselves?

Poor long term organization

Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing? Where are the lines of communication? Explicit and implicit?

As per Benga it is centralized for others since reporting to Australia not clear

Currently no overarching structure, each Department has different structures in place

Lack of communication and common standards between teams

Lack of guidance and feeling of left alone

Define organisational Structure

Define reporting structure

In order to ensure peak performance in our SD team we need to increasing team unity by clear set goals and progress together.

Current Situation Gaps Proposed way forward

Current Situation Gaps How to fill

Systems: the daily activities and procedures that staff members engage in to get the job done.

Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style: the style of leadership adopted.

Current Situation Gaps Proposed way forward

Systems:

Where are the controls and how are they monitored and evaluated?

What internal rules and processes does the team use to keep on track?

Through SDC Committee

No monitoring team in place

Dissolved, vacuum in decision making

Develop Standard Operating Procedures for SD in accordance with Rio Tinto´s policies and Adherence with Mozambican laws

Replace the current not functional Sustainable Development Committee or restructure decision making Process

Shared Values:

What are the core values?

Riversdale due to different structures core values were not clear like in Rio Tinto

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team was built on?

Lack of understanding how our organization frames strategies and short to long term plans for growing and sustaining the business.

Awareness raising and broad dissemination of Rio Tinto’s core values “the way we work”

Skills:

What are the strongest skills represented within the team?

Are there any skills gaps?

What is the team known for doing well?

Do the current employees/team members have the ability to do the job?

How are skills monitored and assessed?

All sites will use the Rio Tinto Communities competencies to build and develop fit-for purpose Communities capability.

Training will be provided to Communities professionals and other employees according to individual and business needs, aligned with routine career development processes.

Style:

How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or cooperative?

Are there real teams functioning within the organization or are they just nominal groups?

Development and effective management of business-driven Communities work

Current Situation Gaps Proposed way forward

Current Situation Gaps Proposed way forward

Staff:

What positions or specializations are represented within the team?

RAP AdvisorLVH AdvisorPP partnerships

What positions need to be filled?

M&E staffDatabase Manager

Are there gaps in required competencies?

Skills gap

No M&E staffDatabase not well managed

some lack knowledge, skills, experience required to effectively perform the role

Training staff

Hiring of M&E staff and all sites will develop local Communities targets and performance indicators that meet the requirements of the Rio Tinto global Communities target.

Putting sociology before geology

• The need of Specific Professional Competencies

As Communities work continues to grow in complexity the

competencies required to deliver on our Communities objectives

evolve accordingly. We need to be confident that we have the

requisite capabilities to design and deliver multi-year

Communities plans that are integrated with operational planning

and address strategic business needs.

As a business driver, Communities capability needs to reside ‘in-

house’! (B.E. Harvey)

Draft Proposal (may be revised after competency assessment and Strategy

development) for a overarching Social Development / Community Development

Team Structure within Rio Tinto Mozambique

Key to Develop new Strategy in Rio Tinto Coal Mozambique: Understanding How Change Happens

1.What is the change we want to see?

2.How is the change most likely to happen?

3.What can we learn from other Rio Tinto

operations in other parts of the World?

4.What can Rio Tinto contribute to it happening

& what will be the key relationships required?

Millennium Development GoalsRio Tinto is committed to playing our part in the achievement of the Millennium Development Goals (MDGs)

• Since 2009 our communities global target has been pegged explicitly off

the MDGs. The target states - all operations to have locally appropriate,

publicly reported social performance indicators that demonstrate a

positive contribution to the economic development of the communities

and regions where we work, consistent with the Millennium Development

Goals, by 2013.

Need to aligned Rio Tinto´s Mozambican SD/CD strategies and

focus areas to contribute to the MDGs

• Natural Resources

• Institutions

• Infrastructure

• History• Economi

c,Cultural andPolitical Environment• Demogr

aphy

Security of:

• Food

• Nutrition

• Health

• Water

• Shelter

• Education

• Community Participation

• Personal Safety

Natural Capital

(resources)

Human Capital

(Livelihood Capabilities)

Social Capital(Claims & Access)

Economic Capital

(Stores & Resources)

ASSETS

HOUSEHOLD

Production &

Income Activities

Consumption Activities

Processing, Exchange, Marketing Activities

CONTEXT LIVELIHOOD STRATEGY

LIVELIHOOD OUTCOMES

LIVELIHOOD SECURITY MODEL

After Swift, 1989; Drinkwater, 1994; Carney, 1998; Frankenberger and Drinkwater, 1999

SHOCKS &

STRESSES

An Approach - The Gender oriented Entrepreneurship Promotion, Swiss SDC

Job Description - Contract Peter Pichler

Develop the overall social development component and manage all participatory steps of its development

Enlist the cooperation of government bodies, community based organizations and sponsors

Act as a link between communities, local government, other statutory bodies and Riversdale

Mediate between opposing parties

Challenge inappropriate behavior and political structures where decisions are not in the best interests of all stakeholders

Co-ordinate capacity building and joint working initiatives with communities and other relevant stakeholders

Help to raise public awareness on issues relevant to the community

Provide leadership and coordination of projects

Assist with the recruiting of staff to work on community projects

Plan, attend and coordinate community meetings and events

Oversee the practical arrangements for ensuring that people from all sections of the community are actively involved and participating and contributing to Community development

Network to build contacts and fundraising

Assist community to conduct research to find other external funding opportunities to upgrade/expand existing social development projects

Help communities to become self-sustaining by assisting them to find markets/clients for product and services resulting from the social development projects implemented

Undertake research where applicable to develop innovative solutions to community issues/problems

Manage and report on projects against agreed project schedule

Serve as a member of the Riversdale Sustainable Development committee

Develop and implement community and government relations strategies and programs that support and further the business goals of Riversdale.

Systematic identification and documentation of community issues and matters

Supervise and ensure the coordination and integration of the social development activities carried out at the project level

Coordinate the social development activities carried out as part of (1) resettlement plans; (2) obligations imposed by the mineral titles, applicable legislation and the mining contract(s) and corporate social responsibility

Oversee the financial management of projects as per the approved budget

Develop annual and five-year implementation plans and budgets for social development initiatives

Evaluate, prioritize and monitor implemented social development projects through the study phase to construction and ultimately mining operations.

Develop implementation plans and budget for social development initiatives in coordination with the people in the field

Promote the participation of local communities in the design, implementation and management of project activities

Evaluate and monitor existing implemented social development projects

Actively liaise with local government agencies, NGO’s and community based organisations in order to ensure their involvement in social development initiatives

Provide guidance or mentorship to and facilitate the professional development of the social development team in the field

Coordinate the process to find external training providers to train community members working on social development projects

Establish and maintain accurate and timely reporting standards throughout the project

Ensure that an achievable programme is set and maintained for social development projects

Prepare a Project Execution Plan

Ensure that quality assurance, safety, HR/IR environmental programs are established and maintained by all parties

Undertake field visits to follow up the implementation of social development activities

Branding

Review policies

Align policy and practice with global standards

Fund raising

Develop partnerships that are of strategic value

List of Documents and Bibliography:• RT HSEC Standard B11 - HIV/AIDS December 2008

• RT Baseline communities assessments guidance, Vers. 1.2, 5 September 2007

• Sociology Before Geology, the Development of Social Competencies in Rio Tinto, Bruce E Harvey

• RT User guide, 2010 v1.3, Communities Competencies

• RT Communities FLP Module 2 – Africa

• RIO TINTO_genderguide

• RIO TINTO Livelihoods

• RT The_way_we_work_2009

• Final Riversdale SDP Document, Benga Coal Mine Project, Moatize District, Tete Province KPMG 2009

• Conference paper MINING, GENDER AND SUSTAINABLE LIVELIHOODS, Nov2008 J. Parmenter

• Mining Community_Investment_Indicators_Table, CommDev & CES, IFC, Sept 2007

• Pathways out of Poverty in Rural Mozambique, 2008, Benedito Cunguara e.a.

• Riversdale Concept Paper Sustainable Livelihoods Program for Benga Mining Community, P.Pichler 2011

• Riversdale Corporate Social Responsibility Policy, Version 1, 01.03.2010

• Gendering the Field: Towards Sustainable Livelihoods for Mining Communities, Sara Bice e.a.

• Creating Empowered Communities: Gender and Sustainable Livelihoods in a Coal Mining Indonesia, Petra

Mahy

• In search for sustainability and improved livelihoods in mining areas, Ghana 2011, Yeboah, Stephen

• Care International, PHLS Unit, The Sustainable Household Livelihood Approach, various documents

Thanks!

Be that Change!