agreements, are issues adding to this analysis.
There were 226 submissions and evidence given
to the current federal government’s inquiry into
FIFO workplace practices, much of it unflattering to
the industry.
Back in 2000 while a young MP in Kalgoorlie-
Boulder, I tried, unsuccessfully, to get the ALP to
agree to royalty rebates for resource companies
that were spending for the benefit of the
wider community. However, I did succeed in a
commitment to establish a $1 million Kalgoorlie-
Boulder development fund for projects that improve
the social infrastructure and general quality of life
in Kalgoorlie-Boulder. ‘Royalties for Regions’ has
since become an important program to achieve a
similar result.
Benchmarking the social licence
to operate
Community attitudes have changed. Regional
residents are more outspoken about the mining
companies that are operating or under construction
in their region. Some believe they are fighting for
survival. In Port Hedland, contractors will offer to
pay an extra $1,000 per week to secure a rental
home. Locals are depressed that their friends and
relatives are forced to leave town, as they cannot
afford to rent a home.
Some companies and contractors do a lot to
counteract these effects and, the locals tell me –
some do nothing.
So what can be done to benchmark the actions
of individual companies and incentivise those
that ‘do the right thing’? Is it good public policy to
offer streamlined approvals or royalty rebates to the
best performers?
Too hard’ I hear you say. I disagree, and want the
industry to consider how best to evaluate community
contributions. Procurement and local content
statistics are critical and easily benchmarked.
There are precedents for measuring community
action and perceptions. Many large companies do
this privately, without ever revealing the research.
To reduce cynicism, however, we need to work
as an industry to stop any hollow rhetoric and focus
on benchmarking and providing evidence of action.
In Canadian British Columbia (BC), the
government has been measuring the comparative
wellbeing of local communities for decades. Four
basic indicators of regional hardship are represented
by indexes of human economic hardship, crime,
health problems and education concerns. Children
at risk, and youth at risk are two additional
indicators highlighted. A final summary of the six
indicators is presented as the ‘Overall regional
socio-economic index’.
The profiles and indices are produced by
BC Stats, with funding support from the Ministries
of Aboriginal Relations and Reconciliation; Children
and Family Development; Community, Sport and
Cultural Development; Jobs, Tourism and Innovation;
Social Development, and the Office of the Provincial
Health Officer; Provincial Health Services Authority
and Representative for Children and Youth.
Examples of ‘doing the right thing’
Gindalbie Metals, a founding member of the
Geraldton Iron Ore Alliance, and Karara Mining
(
KML) are committed to delivering long-term and
sustainable business operations to genuinely benefit
the needs and aspirations of mid-west communities.
Given that Gindalbie and Karara have not yet
moved into cash generation mode, like all other
expenditure, community expenditure needs to be
carefully managed.
Community investment activities focus on
regional health, education, youth development and
housing. A significant financial investment was
made into the local community this year, as well
as numerous community initiatives which directly
Developing the high-grade Dargues
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JORC Resource 1.62mt @ 6.3g/t
Au for 327,300oz of gold and
142,000
oz of silver
Near-mine and regional exploration
ongoing targeting +500,000oz
Experienced management and
enthusiastic team opening up a new
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Agoldenopportunity
in themaking