"Applied Science, Faculty of"@en . "Mining Engineering, Keevil Institute of"@en . "DSpace"@en . "UBCV"@en . "Xavier, Andr\u00E9 Moura"@en . "2013-12-06T16:10:10Z"@en . "2013"@en . "Doctor of Philosophy - PhD"@en . "University of British Columbia"@en . "This thesis seeks to investigate the initiatives that address the socio-economic implications of mine closure that have been implemented by three mining companies which are located in Mongolia, Argentina and Canada. It further addresses the perceptions of stakeholders, specifically community members, local government representatives and mining company employees regarding the initiatives that have been implemented by three mining companies. Additionally, the research examines six mining industry-related frameworks/guidelines, and explores the ways in which these documents interpret the socio-economics of mine closure. Finally, this thesis introduces and evaluates the Socio-Economic Mine Closure (SEMC) Framework, which was originally developed as part of this PhD investigation. There are 10 elements in the Framework: Policy, Presence, Participation, Planning, Performance, Promotion, Perseverance, Patience, Passion, and Personality.\nThe SEMC Framework is assessed in multiple ways: a) against the current literature on mine closure; b) through an online survey in which 151 experts were invited to provide feedback on the elements and sub-element constituents of the Framework and c) by its utility in constructing the fieldwork survey and the feedback of survey participants indicating the appropriateness of the framework.\nThe study indicates that it would be relevant, timely and appropriate for the mining industry to introduce, discuss and adopt the proposed SEMC Framework.\nThe case study analyses, all of which employed interviews, group sessions, and distribution of survey material as part of their methodological approaches, reveal that each case has unique characteristics and that all are context-based. The case studies also indicate that all three situations reveal the presence of some common issues. For instance, the results of the study suggest that, in all three cases, communication levels need to be improved and augmented.\nAn important finding of the overall study concerns the element Personality within the SEMC Framework. Although in both the online survey and in the survey distributed to study participants, this element was ranked as one of low importance, through the interviews, group sessions and researcher observations it became clear that the Personality of the company community liaison does play a significant role in maintaining and fostering relationships between mining companies and local stakeholders."@en . "https://circle.library.ubc.ca/rest/handle/2429/45595?expand=metadata"@en . "SOCIO-ECONOMIC MINE CLOSURE (SEMC) FRAMEWORK: A COMPREHENSIVE APPROACH FOR ADDRESSING THE SOCIO-ECONOMIC CHALLENGES OF MINE CLOSURE by Andr? Moura Xavier B.S., Christus University, 2000 M.A.Sc., Federal University of Rio Grande do Norte, 2003 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY in THE FACULTY OF GRADUATE AND POSTDOCTORAL STUDIES (Mining Engineering) THE UNIVERSITY OF BRITISH COLUMBIA (VANCOUVER) December 2013 ? Andr? Moura Xavier, 2013 \t ?\t ? ii ABSTRACT This thesis seeks to investigate the initiatives that address the socio-economic implications of mine closure that have been implemented by three mining companies which are located in Mongolia, Argentina and Canada. It further addresses the perceptions of stakeholders, specifically community members, local government representatives and mining company employees regarding the initiatives that have been implemented by three mining companies. Additionally, the research examines six mining industry-related frameworks/guidelines, and explores the ways in which these documents interpret the socio-economics of mine closure. Finally, this thesis introduces and evaluates the Socio-Economic Mine Closure (SEMC) Framework, which was originally developed as part of this PhD investigation. There are 10 elements in the Framework: Policy, Presence, Participation, Planning, Performance, Promotion, Perseverance, Patience, Passion, and Personality. The SEMC Framework is assessed in multiple ways: a) against the current literature on mine closure; b) through an online survey in which 151 experts were invited to provide feedback on the elements and sub-element constituents of the Framework and c) by its utility in constructing the fieldwork survey and the feedback of survey participants indicating the appropriateness of the framework. The study indicates that it would be relevant, timely and appropriate for the mining industry to introduce, discuss and adopt the proposed SEMC Framework. The case study analyses, all of which employed interviews, group sessions, and distribution of survey material as part of their methodological approaches, reveal that each case has unique characteristics and that all are context-based. The case studies also indicate that all three situations reveal the presence of some common issues. For instance, the results of the study suggest that, in all three cases, communication levels need to be improved and augmented. An important finding of the overall study concerns the element Personality within the SEMC Framework. Although in both the online survey and in the survey distributed to study participants, this element was ranked as one of low importance, through the interviews, group sessions and researcher observations it became clear that the Personality of the company community liaison does play a significant role in maintaining and fostering relationships between mining companies and local stakeholders. \t ?\t ? iii PREFACE As solo author of this study, I am responsible for the identification, design and fieldwork for this research. Furthermore, the study?s surveys, data gathering, and the compilation and interpretation of the collected data were also performed by me throughout all the different stages of the study. The basic statistical tests performed to analyze the data collected in the field surveys were outsourced and performed by the UBC Statistics Consulting and Research Laboratory (SCARL) under my supervision. Since design interviews and surveys were conducted over the course of the project, the study also complied with the requirements of the UBC Research Ethics Board and the H12-00505 Certificate of Approval Minimum Risk was issued. \t ? \t ?\t ? iv TABLE OF CONTENTS ABSTRACT .................................................................................................................................. ii\t ?PREFACE ................................................................................................................................... iii\t ?TABLE OF CONTENTS .............................................................................................................. iv\t ?LIST OF TABLES ..................................................................................................................... viii\t ?LIST OF FIGURES ...................................................................................................................... xi\t ?GLOSSARY .............................................................................................................................. xvi\t ?ACKNOWLEDGEMENTS ....................................................................................................... xviii\t ?DEDICATION ............................................................................................................................. xx\t ?Chapter 1 ..................................................................................................................................... 1\t ?1.1 Introduction ...................................................................................................................................... 1\t ?1.2 Statement of the Problem ............................................................................................................... 2\t ?1.3 Justification of the Research .......................................................................................................... 3\t ?1.4 Case Study Approach ..................................................................................................................... 6\t ?1.5 Research Questions ........................................................................................................................ 7\t ?1.6 Research Objectives ....................................................................................................................... 7\t ?1.7 Contribution of the Research ......................................................................................................... 8\t ?1.7.1 Applied Contribution of Research ............................................................................................... 8\t ?1.7.2 Academic Contribution of Research ........................................................................................... 8\t ?1.8 Thesis Structure .............................................................................................................................. 8\t ?Chapter 2 ................................................................................................................................... 11\t ?2.1 Literature Review ........................................................................................................................... 11\t ?2.2 Community Development (CD) in Mining .................................................................................... 13\t ?2.3 Philanthropy ................................................................................................................................... 14\t ?2.4 Mine Closure Cases ....................................................................................................................... 16\t ?2.4.1 Sullivan Mine ? British Columbia ? Canada .............................................................................. 16\t ?2.4.2 Anaconda Copper Mine ? Butte, Montana ? United States ...................................................... 17\t ?2.4.3 Joban Coal Mine - Iwaki, Japan ................................................................................................ 19\t ?2.5 Industry Guidelines and Frameworks .......................................................................................... 20\t ?2.5.1 Seven Questions to Sustainability (7Qs) .................................................................................. 20\t ?2.5.2 ICMM 10 Principles ................................................................................................................... 21\t ?2.5.3 ICMM Community Development (CD) Toolkit ........................................................................... 22\t ?2.5.4 ICMM Planning for Integrated Mine Closure ............................................................................. 22\t ?2.5.5 Towards Sustainable Mining (TSM) .......................................................................................... 23\t ?2.5.6 The Equator Principles .............................................................................................................. 24\t ?2.6 Proposed Socio-Economic Mine Closure Framework ............................................................... 25\t ?2.6.1 Policy ........................................................................................................................................ 27\t ?2.6.1.1 Corporate Commitment ...................................................................................................... 27\t ?2.6.1.2 Governance ....................................................................................................................... 27\t ?2.6.2. Presence .................................................................................................................................. 28\t ?2.6.2.1 Presence in the Field ......................................................................................................... 28\t ?2.6.2.2 Stakeholder Mapping ......................................................................................................... 28\t ?2.6.3. Participation ............................................................................................................................. 29\t ?2.6.3.1 Mobilization ........................................................................................................................ 29\t ?2.6.3.2 Education / Capacity Building ............................................................................................ 29\t ?\t ?\t ? v 2.6.3.3 Empowerment .................................................................................................................... 30\t ?2.6.3.4 Community Engagement ................................................................................................... 30\t ?2.6.3.5 Partnerships ....................................................................................................................... 32\t ?2.6.4. Planning ................................................................................................................................... 33\t ?2.6.4.1 Asset Mapping ................................................................................................................... 33\t ?2.6.4.2 Socio Economic Impact Assessment ? SEIA ..................................................................... 34\t ?2.6.4.3 Vision ................................................................................................................................. 34\t ?2.6.4.4 Projects .............................................................................................................................. 34\t ?2.6.4.5 Indicators ........................................................................................................................... 35\t ?2.6.4.6 Resources .......................................................................................................................... 35\t ?2.6.5. Performance ............................................................................................................................ 36\t ?2.6.5.1 Implementation .................................................................................................................. 36\t ?2.6.5.2 Monitoring .......................................................................................................................... 36\t ?2.6.5.3 Evaluation Towards Continuous Improvement .................................................................. 37\t ?2.6.6. Promotion ................................................................................................................................. 37\t ?2.6.6.1 Sharing / Communication ................................................................................................... 37\t ?2.6.6.2 Consolidation ..................................................................................................................... 38\t ?2.6.7. Perseverance ........................................................................................................................... 38\t ?2.6.7.1 Overcoming Resistance and Inertia ................................................................................... 38\t ?2.6.7.2 Reinforcing Quality of Participation .................................................................................... 38\t ?2.6.8. Patience ................................................................................................................................... 38\t ?2.6.8.1 Allowing Time for Effective Change ................................................................................... 39\t ?2.6.9. Passion .................................................................................................................................... 39\t ?2.6.9.1 Individual Passion .............................................................................................................. 39\t ?2.6.10. Personality ............................................................................................................................. 40\t ?2.6.10.1 Trust, Respect and Empathy ........................................................................................... 40\t ?2.7 Justification of the Socio-Economic Mine Closure Framework ................................................ 41\t ?Chapter 3 ................................................................................................................................... 43\t ?3.1 The Research Process and Methodology ................................................................................... 43\t ?3.1.1 Phase I: Diagnostic ................................................................................................................... 44\t ?3.1.2 Phase II: Assessment, Refinement and Expert Feedback of the SEMC Framework ............... 44\t ?3.1.3 Phase III: Assessing Local Context, Local Perceptions and Further Assessment of the Framework ......................................................................................................................................... 45\t ?Chapter 4 ................................................................................................................................... 47\t ?4.1 Analyzing Industry Guidelines and Frameworks (Objectives 1 and 2) ..................................... 47\t ?Chapter 5 ................................................................................................................................... 52\t ?5.1 Assessing and Receiving Feedback on the SEMC Framework (Objective 2) .......................... 52\t ?5.1.1 Industry Category ...................................................................................................................... 54\t ?5.1.2 Education Category .................................................................................................................. 55\t ?5.1.3 NGO Category .......................................................................................................................... 55\t ?5.1.4 Consultant Category ................................................................................................................. 57\t ?5.1.5 Government Category ............................................................................................................... 58\t ?5.1.6 Online Survey Conclusion ......................................................................................................... 58\t ?Chapter 6 ................................................................................................................................... 60\t ?6.1 Case Study Analysis (Objectives 3 and 4) .................................................................................. 60\t ?6.1.1 Boroo Gold Company (BGC) ? Mongolia .................................................................................. 60\t ?6.1.1.1 Introduction ........................................................................................................................ 60\t ?6.1.1.2 Case Study Methodology ................................................................................................... 65\t ?\t ?\t ? vi 6.1.1.3 General Results ................................................................................................................. 67\t ?6.1.1.4 Discussion of the Survey and Interviews ........................................................................... 71\t ?6.1.1.4.1 Policy .......................................................................................................................... 71\t ?6.1.1.4.2. Presence .................................................................................................................... 73\t ?6.1.1.4.3. Participation ............................................................................................................... 76\t ?6.1.1.4.4. Planning ..................................................................................................................... 81\t ?6.1.1.4.5. Performance .............................................................................................................. 90\t ?6.1.1.4.6. Promotion ................................................................................................................... 93\t ?6.1.1.4.7. Perseverance ............................................................................................................. 98\t ?6.1.1.4.8. Patience ..................................................................................................................... 99\t ?6.1.1.4.9. Passion .................................................................................................................... 100\t ?6.1.1.4.10. Personality ............................................................................................................. 102\t ?6.1.1.5. Mongolian Case Study Conclusions ............................................................................... 105\t ?6.1.2 Cerro Vanguardia SA ? Argentina .......................................................................................... 109\t ?6.1.2.1. Introduction ..................................................................................................................... 109\t ?6.1.2.2. Cerro Vanguardia S.A. (CVSA) Operations .................................................................... 114\t ?6.1.2.3. Case Study Methodology (Argentina) ............................................................................. 119\t ?6.1.2.4. General Results .............................................................................................................. 120\t ?6.1.2.5. Discussions of the Survey and Interviews ...................................................................... 124\t ?6.1.2.5.1 Policy ........................................................................................................................ 124\t ?6.1.2.5.2 Presence ................................................................................................................... 128\t ?6.1.2.5.3 Participation .............................................................................................................. 129\t ?6.1.2.5.4 Planning .................................................................................................................... 136\t ?6.1.2.5.5 Performance ............................................................................................................. 141\t ?6.1.2.5.6. Promotion ................................................................................................................. 144\t ?6.1.2.5.7. Perseverance ........................................................................................................... 146\t ?6.1.2.5.8. Patience ................................................................................................................... 147\t ?6.1.2.5.9. Passion .................................................................................................................... 149\t ?6.1.2.5.10. Personality ............................................................................................................. 150\t ?6.1.2.6. Argentinian Case Study Conclusions .............................................................................. 151\t ?6.1.3 Diavik Diamond Mine ? Canada (Northwest Territories) ......................................................... 155\t ?6.1.3.1 Introduction ...................................................................................................................... 155\t ?6.1.3.1.1 European Explorers, Treaties, Residential Schools and Canada First Nations ........ 155\t ?6.1.3.1.2 Indian Residential Schools ........................................................................................ 159\t ?6.1.3.1.3 Socio-Economic Context of Aboriginal Communities in the NWT ............................. 160\t ?6.1.3.1.4 Federal and Territorial Governments ........................................................................ 164\t ?6.1.3.1.5 Exploration and Mining Activities in the NWT ........................................................... 167\t ?6.1.3.1.6 Pre-Diamond Mine Era ............................................................................................. 177\t ?6.1.3.1.7 Giant Mine ................................................................................................................. 177\t ?6.1.3.1.8 Diavik Diamond Mine Inc. (DDMI) ............................................................................. 179\t ?6.1.3.1.9 Participation Agreements .......................................................................................... 184\t ?6.1.3.2. Case Study Methodology ................................................................................................ 188\t ?6.1.3.3. Analysis of Surveys and Interviews ................................................................................ 192\t ?6.1.3.3.1. Policy ....................................................................................................................... 192\t ?6.1.3.3.2. Presence .................................................................................................................. 194\t ?6.1.3.3.3. Participation ............................................................................................................. 196\t ?6.1.3.3.4. Planning ................................................................................................................... 205\t ?6.1.3.3.5. Performance ............................................................................................................ 210\t ?6.1.3.4 Canadian Case Study Conclusions ................................................................................. 215\t ?Chapter 7 ................................................................................................................................. 220\t ?\t ?\t ? vii 7.1 General Discussion ..................................................................................................................... 220\t ?Chapter 8 ................................................................................................................................. 225\t ?8.1 Conclusion ................................................................................................................................... 225\t ?8.2 SEMC Framework Step-by-Step Implementation ..................................................................... 228\t ?Chapter 9 ................................................................................................................................. 229\t ?9.1 Claim of Original Contribution .................................................................................................... 229\t ?9.2 Original Contribution to Profession, Practice and Policy ........................................................ 229\t ?Chapter 10 ............................................................................................................................... 230\t ?10.1 Limitations of the Study ............................................................................................................ 230\t ?Chapter 11 ............................................................................................................................... 231\t ?11.1 Recommendations for Future Research ................................................................................. 231\t ?REFERENCES ......................................................................................................................... 233\t ?APPENDIX A ........................................................................................................................... 253\t ?Socio-Economic Mine Closure Framework (SEMC) ....................................................................... 253\t ?APPENDIX B ........................................................................................................................... 256\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. 7 Q?s to Sustainability ........... 256\t ?APPENDIX C ........................................................................................................................... 259\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM 10 Principles ............... 259\t ?APPENDIX D ........................................................................................................................... 261\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM ? Community Development (CD) Toolkit ................................................................................................................. 261\t ?APPENDIX E ............................................................................................................................ 264\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM Planning for Integrated Closure Toolkit ................................................................................................................................... 264\t ?APPENDIX F ............................................................................................................................ 267\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. TSM ? Performance Standard (PS): Aboriginal Relations and Community Outreach and Mine Closure Framework ................ 267\t ?APPENDIX G ........................................................................................................................... 269\t ?10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. The Equator Principles (And IFC Performance Standard (PS) 1) .......................................................................................................... 269\t ?APPENDIX H ........................................................................................................................... 272\t ?Field Survey ....................................................................................................................................... 272\t ?APPENDIX I ............................................................................................................................. 286\t ?Screen shot of the online survey ..................................................................................................... 286\t ?APPENDIX J ............................................................................................................................ 287\t ?Study Participants Mongolian Case Study ...................................................................................... 287\t ?APPENDIX K ........................................................................................................................... 288\t ?Study Participants Canadian Case Study ....................................................................................... 288\t ?APPENDIX L ............................................................................................................................ 289\t ?Study Participants Argentinean Case Study ................................................................................... 289\t ? \t ?\t ? viii LIST OF TABLES Table 1 - Various Different Views of Development .................................................................................... 13\t ?Table 2 - Seven Questions to Sustainability Framework ........................................................................... 21\t ?Table 3 ? ICMM 10 Principles .................................................................................................................... 21\t ?Table 4 - ICMM Planning for Integrated Mine Closure Toolkit ................................................................... 23\t ?Table 5 - Socio-Economic Mine Closure Framework (The 10 Ps Framework) .......................................... 26\t ?Table 6 ? Crosswalk Matrix Comparing SEMC Framework to Industry Guidelines and Frameworks ....... 48\t ?Table 7 - Discussion of the Crosswalk Matrix Comparing the SEMC Framework Against Industry Guidelines / Frameworks ........................................................................................................................... 50\t ?Table 8 - Groups Invited to Respond to the Online Survey ....................................................................... 52\t ?Table 9 ? Summary of the Average Scores and Standard Deviation Responses Given by the Online Survey Participants .................................................................................................................................... 53\t ?Table 10 - Industry Group Average and Standard Deviation Scores to the Online Survey ....................... 54\t ?Table 11 - Education Group Average and Standard Deviation Scores to the Online Survey .................... 55\t ?Table 12 - NGO Group Average and Standard Deviation Scores to the Online Survey ............................ 55\t ?Table 13 - Consultant Group Average and Standard Deviation Scores to the Online Survey ................... 57\t ?Table 14 - Government Group Average and Standard Deviation Scores to the Online Survey ................ 58\t ?Table 15 - Survey Distributed to Bayangol Soum Asking Where the SDF Should Be Invested ................ 64\t ?Table 16 - Milestones DFAIT Project ......................................................................................................... 65\t ?Table 17 - Mongolia Research Participants ............................................................................................... 67\t ?Table 18 - Detailed Responses of the Mining Company Regarding the SEMC Online Survey ................. 68\t ?Table 19 - Detailed Responses of the Government Group Regarding the SEMC Online Survey ............. 69\t ?Table 20 - Detailed Responses of the Community Regarding the SEMC Online Survey .......................... 70\t ?Table 21 - Comparison Between Government and Community Responses for Question 1.3 ................... 72\t ?Table 22 - Comparison Between Bayangol, Mandal and UB Between the Responses for Question 2.1 .. 75\t ?Table 23 - Comparison Between Bayangol and Mandal Responses to Question 3.6 ............................... 77\t ?Table 24 - Comparison Between the Responses Given by Bayangol and Mandal to Question 3.14 ........ 78\t ?Table 25 - Comparison Between Community and Government Responses to Question 4.1 .................... 82\t ?Table 26 - Comparison Between the Responses of Community and Government from Bayangol and Mandal for Question 4.2 ............................................................................................................................ 84\t ?Table 27 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 4.17 ............................................................................................................................................ 85\t ?Table 28 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 4.18 ............................................................................................................................................ 85\t ?Table 29 - Comparison Between Community and Government Responses to Question 4.21 .................. 86\t ?Table 30 - Steering Committee Composition of Bayangol Soum .............................................................. 88\t ?Table 31 - Joint Working Group Composition of Mandal Soum ................................................................. 88\t ?Table 32 - Comparison Between Community, Government and Company Responses for Question 5.4 ................................................................................................................................................................... 91\t ?\t ?\t ? ix Table 33 - Comparison Between Community, Government and Company Responses for Question 5.6 ................................................................................................................................................................... 92\t ?Table 34 - Comparison Between Community, Government and Company Responses for Question 6.1 ................................................................................................................................................................... 93\t ?Table 35 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 6.3 .............................................................................................................................................. 94\t ?Table 36 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 6.6 ..................................................................................................................... 97\t ?Table 37 - Comparison Between Community, Government and Company Responses for Questions 6.9 97\t ?Table 38 - Comparison Between Community, Government and Company from Bayangol, Mandal and UB Responses for Questions 8.2 .................................................................................................................... 99\t ?Table 39 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 9.2 ................................................................................................................... 101\t ?Table 40 - Comparison Between Community, Government and Company Responses for Questions 9.6 ................................................................................................................................................................. 102\t ?Table 41 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 10.1 ................................................................................................................. 103\t ?Table 42 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 10.8 ................................................................................................................. 105\t ?Table 43 - Key Findings of the Mongolian Case Study ............................................................................ 106\t ?Table 44 - Mining Activity in Argentina .................................................................................................... 111\t ?Table 45 - Mining Exploration and Operational Projects in Santa Cruz Province .................................... 114\t ?Table 46 - CVSA Gold and Silver Resources .......................................................................................... 116\t ?Table 47 - CVSA Gold and Silver Production Data ................................................................................. 116\t ?Table 48 - Direct and Indirect Investment Made by CVSA in 2012 and Accumulated. ............................ 117\t ?Table 49 - Puerto San Juli?n Diagnostic and Strategies ......................................................................... 118\t ?Table 50 - Argentina Research Participants ............................................................................................ 120\t ?Table 51 - Average Scores Given by Mining Company ........................................................................... 121\t ?Table 52 - Average Scores Given by Government .................................................................................. 122\t ?Table 53 - Average Scores Given by Mining Company Union ................................................................ 123\t ?Table 54 - Average Scores Given by Community .................................................................................... 124\t ?Table 55 - Comparison Between the Responses for Question 1.6 .......................................................... 127\t ?Table 56 - Comparison between the responses for Question 3.1 ........................................................... 130\t ?Table 57 - Comparison Between the Responses for Question 3.3 .......................................................... 132\t ?Table 58 - Comparison Between the Responses for Question 3.11 ........................................................ 133\t ?Table 59 - Comparison Between the Responses for Question 3.25 ........................................................ 135\t ?Table 60 - Comparison Between the Responses for Question 3.26 ........................................................ 136\t ?Table 61 - Comparison Between the Responses for Question 4.14 ........................................................ 138\t ?Table 62 - Comparison Between the Responses for Question 4.27 ........................................................ 139\t ?\t ?\t ? x Table 63 - Comparison Between Responses to Question 5.1 ................................................................. 143\t ?Table 64 - Comparison Between the Responses for Question 6.1 .......................................................... 144\t ?Table 65 - Comparison Between Responses to Question 7.6 ................................................................. 147\t ?Table 66 - Comparison Between the Responses to Question 8.1 ........................................................... 148\t ?Table 67 - Key Findings of the Argentinean Case Study ......................................................................... 152\t ?Table 68 - Benefits of Devolution to NWT ............................................................................................... 166\t ?Table 69 - NWT GDP by Industry (2007-2011) ....................................................................................... 168\t ?Table 70 - Negative Impacts of Mining Activities on Northern Aboriginal Communities .......................... 171\t ?Table 71 - Uncertainties and Mineral Potential in NWT (2011/12 - 2012/13) .......................................... 175\t ?Table 72- Potential Project Developments .............................................................................................. 176\t ?Table 73 - Diavik Mine Production 2003 - 2012 ....................................................................................... 180\t ?Table 74 - Mineral Reserves at Diavik - December 31, 2012 .................................................................. 180\t ?Table 75 - DDMI Socio-Economic Monitoring Agreement objectives ...................................................... 182\t ?Table 76 - Mining Royalty Rates Northwest Territories ........................................................................... 183\t ?Table 77 ? Mandate of the Advisory Board ............................................................................................. 185\t ?Table 78 - NWT Study Participants ......................................................................................................... 188\t ?Table 79 - Comparison Between the Responses to Question 1.6 ........................................................... 193\t ?Table 80 ? Comparison Between All Four Groups to the Question 2.1 ................................................... 194\t ?Table 81 - Comparison Between Responses for Question 2.4. ............................................................... 196\t ?Table 82 - Comparison Between Responses for Question 3.1. ............................................................... 197\t ?Table 83 - Comparison Between Responses for Question 3.4 ................................................................ 198\t ?Table 84 - Comparison Between the Responses for Question 3.11. ....................................................... 199\t ?Table 85 - Comparison Between the Responses for Questions 3.21 and 3.22. ...................................... 201\t ?Table 86 - Comparison between the responses for Questions 3.25 and 3.26. ........................................ 203\t ?Table 87 - Comparison Between Responses to Question 3.30 ............................................................... 204\t ?Table 88 - Comparison Between the Responses for Question 4.3 .......................................................... 206\t ?Table 89 - Comparison Between the Responses for Question 4.14 ........................................................ 207\t ?Table 90 - Comparison Between the Responses for Question 4.17 ........................................................ 208\t ?Table 91 - Comparison Between the Responses for Questions 4.28 and 4.30. ...................................... 210\t ?Table 92 - Comparison Between the Responses for Question 5.3 .......................................................... 211\t ?Table 93 - Key Findings of the Canadian Case Study ............................................................................. 215\t ?Table 94 - SEMC Framework Step-by-Step Implementation ................................................................... 228\t ?\t ?\t ? \t ?\t ?\t ? xi LIST OF FIGURES Figure 1 - Roadmap and Milestones of the Thesis .................................................................................... 10\t ?Figure 2 - Community Engagement Continuum ........................................................................................ 31\t ?Figure 3 - Plot Displaying the Average Responses Given by Group Participants on the Online Survey. .. 53\t ?Figure 4 ? Map of the Location of the Selenge Province in Mongolian (Image: Public Domain) ............... 61\t ?Figure 5 ? Map of Selenge Province (Image: Public Domain) ................................................................... 61\t ?Figure 6 - Survey Question Sample ........................................................................................................... 67\t ?Figure 7 - Plot Compilation of Mining Company Responses of the SEMC Online Survey ........................ 68\t ?Figure 8 - Plot Compilation of Government Responses to the SEMC Online Survey ............................... 69\t ?Figure 9 - Plot Compilation of Community Responses to the SEMC Online Survey ................................. 70\t ?Figure 10 - Boxplot of the Answer Scores for Question 1.3 for C, G and MC ? ?I trust that the local government is looking after the community?s interest.? .............................................................................. 72\t ?Figure 11 ? Boxplot of the Answers Scores for Question 2.1 for Groups C, G and MC - \"The mining company has enough people (company representatives) to adequately manage all community related matters.\" ..................................................................................................................................................... 75\t ?Figure 12 - Detailed Analysis of the Responses Provided by Mandal Residents to Questions 2.1 ........... 75\t ?Figure 13 - Boxplot of the Answers Scores for Question 3.6 for Community Group - \"The mining company targeted minority or vulnerable groups such as elders, women and youth to participate in community meetings\" ................................................................................................................................................... 77\t ?Figure 14 - Boxplot of the Answers Scores for Question 3.14 for Community Group - \"I feel that my ideas and suggestions are taken into account by the mining company.\" ............................................................ 78\t ?Figure 15 - Detailed Analysis of the Responses Provided by Bayangol and Mandal Residents to Question 3.14 ............................................................................................................................................................ 79\t ?Figure 16 - Boxplot of the Answers Scores for Question 4.1 for C and G - \"The mining company understands the community's most critical social issues\" ......................................................................... 82\t ?Figure 17 - Boxplot of the Answers Scores for Question 4.2 for Community and Government - \"The company knows the local leaders well.\" .................................................................................................... 83\t ?Figure 18 - Boxplot of the Answers Scores for Question 4.17 for C, G and MC - \"There are a representative number in terms of the overall community of youth people (age between 16 and 20 years old) involved in the design of community projects.\" ................................................................................... 84\t ?Figure 19 - Boxplot of the Answers Scores for Question 4.18 for C, G and MC - \"There are a representative number in terms of the overall community of older people (older than 60 years old) involved in the design of community projects.\" .......................................................................................... 85\t ?Figure 20 - Boxplot of the Answers Scores for Question 4.21 for C, G and MC - \"The mining company has defined clear indicators to measure the results and progress of the projects they have implemented / sponsored. ................................................................................................................................................. 86\t ?Figure 21 - Boxplot of the Answers Scores for Question 5.4 for C, G and MC - \"I think an appropriate number of older people are involved with the implementation of community projects.\" ............................ 91\t ?\t ?\t ? xii Figure 22 - Boxplot of the Answers Scores for Question 5.6 for C, G and MC - \"The mining company monitors the development and the results of the projects they sponsor.\" ................................................. 92\t ?Figure 23 - Boxplot of the Answers Scores for Question 6.1 for C, G and MC - \"The mining company shares the results of community projects with local citizens.\" ................................................................... 93\t ?Figure 24 - Boxplot of the Answers Scores for Question 6.3 for C and G - \"The mining company does a good job in sharing important information with the local community.\" ....................................................... 94\t ?Figure 25 - Boxplot of the Answers Scores for Question 6.6 for C and G - \"I believe that the mining company always asks for the opinion of the community regarding important matters that affect the community.\" ............................................................................................................................................... 96\t ?Figure 26 - Boxplot of the Answers Scores for Question 6.9 for C, G and MC - \"Mining company projects designed for the benefit of the community have been successfully implemented for many years.\" .......... 97\t ?Figure 27 - Boxplot of the Answers Scores for Question 8.2 for C, G and MC - \"Mining company representatives understand that social projects take time to produce results.\" ......................................... 99\t ?Figure 28 - Boxplot of the Answers Scores for Question 9.2 for C and G - \"I feel the mining company Community Relations Officers are motivated to do their work\" ................................................................ 100\t ?Figure 29 - Boxplot of the Answers Scores for Question 9.6 for C, G and MC - \"The company looks for opportunities within the community to help develop new businesses in the tow/region.\" ........................ 102\t ?Figure 30 - Boxplot of the Answers Scores for Question 10.1 for C and G - \"I think the current mining company Community Relations Officer is the right person for the job.\" ................................................... 103\t ?Figure 31 - Boxplot of the Answers Scores for Question 10.8 for C and G - \"I feel that the mining company personnel who work in the Community Relations department really care about the well-being of the local community.\" ............................................................................................................................... 105\t ?Figure 32 ? Location Map of Santa Cruz Province (Image: Public Domain) ........................................... 112\t ?Figure 33 ? Map of Mining Exploration and Operational Projects in Santa Cruz Province (with permission from Mining Press) ................................................................................................................................... 113\t ?Figure 34 ?Cerro Vanguardia and Puerto San Juli?n Location Map (With Permission from Cerro Vanguardia) ............................................................................................................................................. 115\t ?Figure 35 - Plot of the Scores Given by Mining Company ....................................................................... 121\t ?Figure 36 - Plot of the Scores Given by Government .............................................................................. 122\t ?Figure 37 - Plot of the Scores Given by Mining Company Union ............................................................ 123\t ?Figure 38 - Plot of the Scores Given by Community ................................................................................ 124\t ?Figure 39 - Boxplot of the Answers Scores for Question 1.1 for Mining Company (MC) and Mining Company Union (MCU) ? ?The mining company has a clear corporate statement or mission statement describing its values with regard to the community, and posts them on its websites, annual reports and communication material.? ......................................................................................................................... 126\t ?Figure 40 ? Box plot of the Answers Scores for Question 1.6 for Groups C, G, MC and MCU - ?The mining company always informs to the community regarding the amount of money it has invested in community projects.? ................................................................................................................................ 127\t ?\t ?\t ? xiii Figure 41 - Boxplot of the Answers Scores for Question 2.1 for C, G, MC and MCU ? ?The mining company has enough people (company representatives) to adequately manage all community- related matters.? ................................................................................................................................................... 128\t ?Figure 42 - Boxplot of the Answers Scores for Question 3.1 for C, G, MC and MCU ? ?I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company.? ........................ 130\t ?Figure 43 - Boxplot of the Answers Scores for Question 3.3 for C, G, MC and MCU ? ?I believe that the people who attended meetings organized by the mining company are representative of existing community groups. .................................................................................................................................. 132\t ?Figure 44 - Boxplot of the Answers Scores for Question 3.11 for C, G, MC and MCU ? ?The mining company displays a very good understanding of the social and economic impacts of mine closure on the community.? ............................................................................................................................................. 133\t ?Figure 45 - Boxplot of the Answers Scores for Question 3.13 for Community Group ? ?I believe that the participation of local citizens is important and can have a positive effect on changing the local reality.? 134\t ?Figure 46 - Boxplot of the Answers s ....................................................................................................... 134\t ?Figure 47 - Boxplot of the Answers Scores for Question 3.25 for C, G, MC and MCU ? ?I think local government representatives are doing their best to enhance the quality of life in the community.? ........ 135\t ?Figure 48 - Boxplot of the Answers Scores for Question 3.26 for C, G, MC, MCU ? ?I think local citizens are doing their best to make the community a better place to live.? ........................................................ 136\t ?Figure 49 - Boxplot of the Answers Scores for Question 4.5 for C, G, MC and MCU ? ?I have a clear image of how I would like the community to look after mine closure.? ..................................................... 137\t ?Figure 50 - Boxplot of the Answers Scores for Question 4.6 for C, G, MC and MCU ? ?I think my neighbours and friends have a clear idea of how the community should look like in the future. ............. 137\t ?Figure 51 - Boxplot of the Answers Scores for Question 4.14 for C, G, MC and MCU ? ?I believe the local socio-economic situation of the community will be better after the mine is closed.? ................................ 139\t ?Figure 52 - Boxplot of the Answers Scores for Question 4.27 for Community (C), Government (G), Mining Company (MC) and Mining Company Union (MCU) ? ?The community is aware of where the money allocated to fund community projects is spent.? ....................................................................................... 140\t ?Figure 53 - Boxplot of the Answers Scores for Question 4.28 for C, G, MC and MCU ? ?I think the local government has made proper use of the tax & royalty moneys paid by the mining company.? .............. 141\t ?Figure 54 - Boxplot of the Answers Scores for Question 5.1 for C, G, MC and MCU ? ?I think the right people are involved with the implementation of local community projects.? ............................................ 143\t ?Figure 55 - Boxplot of the Answers Scores for Question 6.1 for C, G, MC, MCU ? ?The mining company shares the results of community projects with local citizens.? ................................................................. 144\t ?Figure 56 - Boxplot of the Answers Scores for Question 6.2 for C, G, MC and MCU ? ?The mining company invites the whole community to learn more about community projects.? .................................. 146\t ?Figure 57 - Boxplot of the Answers Scores for Question 7.6 for C, G, MC and MCU ? ?I think the quality of local community participation is improving.? ............................................................................................ 147\t ?\t ?\t ? xiv Figure 58 - Boxplot of the Answers Scores for Question 8.1 for C, G, MC and MCU? ?I feel the mining company is patient enough to wait the results of community projects. .................................................... 148\t ?Figure 59 - Boxplot of the Answers Scores for Question 9.1 for C and G- ?I feel the mining company community manager is motivated to do his/her work.? ............................................................................ 149\t ?Figure 60 - Comparison Between the Responses for Question 9.1. ....................................................... 150\t ?Figure 61 - Boxplot of the Answers Scores for Question 10.1 for C and G ? ?I think the current mining company community relation manager is the right person for the job.? ................................................... 150\t ?Figure 62 - Distribution of Responses Given by the Community Participants to Question 10.1. ............. 151\t ?Figure 63 - NWT Population & Education Levels .................................................................................... 161\t ?Figure 64 - NWT Alcohol Consumption ................................................................................................... 162\t ?Figure 65 - Total Spent by Snap Lake, Ekati and Diavik Mines ? 1996 ? 2011 (With Permission from DDMI) ...................................................................................................................................................... 170\t ?Figure 66 - Diavik Cumulative and Annual Spending (With Permission from DDMI) .............................. 170\t ?Figure 67 - Advanced Exploration Projects (with permission from NWT & Nunavut Chamber of Mines) 172\t ?Figure 68 ? Mine Life in NWT (with permission from NWT & Nunavut Chamber of Mines) .................... 173\t ?Figure 69 - Exploration and Deposit Appraisal Expenditures (with permission from NWT & Nunavut Chamber of Mines) .................................................................................................................................. 174\t ?Figure 70 - Mining in the NWT and Cumulative Social Impact ................................................................ 187\t ?Figure 71 - Boxplot of the Answers Scores for Question 1.6 for Community (C), Government (G), Mining Company Site (MC) and Mining Company City (MCC) - ?The mining company always informs to the community regarding the amount of money it has invested in community projects.? .............................. 193\t ?Figure 72 - Boxplot of the Answers Scores for Question 1.7 for Mining Company Site (MC) and Mining Company City (MCC) - ?All mining company employees are aware of the social policies and actions of concern to the community that have been put in place by the company.? ............................................... 193\t ?Figure 73 - Boxplot of the Answers Scores for Question 2.1 for Community (C), Government (G), Mining Company Site (MC) and Mining Company City (MCC) - \"The mining company has enough people (company representatives) to adequately manage all community related matters.\" ............................... 194\t ?Figure 74 - Distribution of Responses Given by DDMI Site Employees to Question 2.1 ......................... 195\t ?Figure 75 - Boxplot of the Answers Scores for Question 2.4 for C, MC and MCC - \"The mining company community manager understands all the cultural elements of the community (i.e. religion, culture, etc).\" ................................................................................................................................................................. 196\t ?Figure 76 - Boxplot of the Answers Scores for Question 3.1 for C, G, MC and MCC - \"I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company.\" ........................ 197\t ?Figure 77 - Boxplot of the Answers Scores for Question 3.4 for C, G, MC and MCC - \"I think some groups within the community have more privileges than others\". ........................................................................ 198\t ?Figure 78 - Boxplot of the Answers Scores for Question 3.11 for C, G, MC and MCC - \"The mining company displays a very good understanding of the social and economic impacts of mine closure on the community.\" ............................................................................................................................................. 199\t ?\t ?\t ? xv Figure 79 - Boxplot of the Answers Scores for Question 3.21 for C, G, MC and MCC - \"People in the community work together to solve community problems.\" ....................................................................... 200\t ?Figure 80 - Boxplot of the Answers Scores for Question 3.22 for C, G, MC and MCC - \"There is a lot of cooperation between neighbourhood groups.\" ........................................................................................ 200\t ?Figure 81 - Boxplot of the Answers Scores for Question 3.25 for C, G, MC and MCC - \"I think local government representatives are doing their best to enhance the quality of life in the community.\" ........ 202\t ?Figure 82 - Boxplot of the Answers Scores for Question 3.26 for C, G, MC and MCC - \"I think local citizens are doing their best to make the community a better place to live. ............................................. 202\t ?Figure 83 - Distribution of Responses Given by DDMI Site Employees to Questions 3.30 ..................... 203\t ?Figure 84 - Boxplot of the Answers Scores for Question 3.30 for C, G, MC and MCC- \"I see the local government working hard to support the creation of small business in the community.\" ........................ 204\t ?Figure 85 - Boxplot of the Answers Scores for Question 4.3 for C, G, MC and MCC - \"In my opinion, the mining company understands all the social consequences that its presence in the community has on the local people.\" ........................................................................................................................................... 205\t ?Figure 86 - Distribution of Responses Given by DDMI Site Employees to Question 4.14 ....................... 206\t ?Figure 87 - Boxplot of the Answers Scores for Question 4.14 for C, G, MC and MCC ? ?I believe the local socio-economic situation of the community will be better after the mine is closed.? ................................ 207\t ?Figure 88 - Boxplot of the Answers Scores for Question 4.17 for C, G, MC and MCC - \"There are a representative number in terms of the overall community of youth people involved in the design of community projects.\" ................................................................................................................................ 208\t ?Figure 89 - Boxplot of the Answers Scores for Question 4.28 for C, G, MC and MCC - \"I think the local government has made proper use of the tax & royalty moneys paid by the mining company.? .............. 209\t ?Figure 90 - Boxplot of the Answers Scores for Question 4.30 for C, MC and MCC - \"The government is transparent with regard its use of royalty money.\" ................................................................................... 209\t ?Figure 91 - Boxplot of the Answers Scores for Question 5.3 for C, G, MC and MCC - \"I think an appropriate number of youth people are involved with the implementation of community projects.\" ...... 211\t ?\t ?\t ? \t ?\t ?\t ? xvi GLOSSARY 7Qs: Seven Questions to Sustainability AANDC: Aboriginal Affairs and Northern Development Canada AGA: AngloGold Ashanti AiP: Agreement in Principle ASM: Artisanal Mining BGC: Boroo Gold Company BGC: Boroo Gold Company BREB: Behavioral Research Ethics Board CAEM: Camara Argentina de Empresarios CBERN: Canadian Business Ethics Research Network CD: Community Development CEO: Chief Executive Officer COI: Community of Interest CRO: Community Relations Officer CRM: Community Relations Manager CSR: Corporate Social Responsibility CVSA: Cerro Vanguardia SA DA: Development Agency DDMI: Diavik Diamond Mines Inc. DFAIT: Department of Foreign Affairs and International Trade EP: Equator Principles EPFI: Equator Principles Financial Institutions FOMICRUZ: Fomento Minero Santa Cruz GDP: Gross Domestic Product GNWT: Government of Northwest Territories HRSDC: Human Resources and Skill Development Canada IAPP: International Association of Public Participation IBA: Impact and Benefit Agreement \t ?\t ? xvii ICMM: International Council on Minerals and Metals IFC: International Finance Corporation IIED: International Institute for Environment and Development INAC: Indian and Northern Affairs Canada IRS: Indian Residential School IRSSA: Indian Residential School Settlement Agreement JWG: Joint Working Group LED: Local Economic Development MITACS: Mathematics of Information Technology and Complex Systems MMSD: Mining, Minerals and Sustainable Development MNT: Mongolian Tugrik MTS: Mining Training Society NGO: Non-Governmental Organization NRCan: Natural Resources Canada NWT: Northwest Territories OECD: Organization for Economic Co-operation and Development PA: Participation Agreement PWNHC: Prince of Wales Northern Heritage Centre SDF: Soum Development Fund SEF: Sustainable Economic Futures SEIA: Socio-Economic Impact Assessment SEMA: Socio-Economic Monitoring Agreement SME: Society for Mining, Metallurgy and Exploration TFF: Territorial Formula Financing TIC: T??ch? International Corporation TSM: Towards Sustainable Mining TSX: Toronto Stock Exchange UNPA: Universidade National Patagonia Austral WCED: World Council for Economic Development \t ?\t ? xviii ACKNOWLEDGEMENTS I experience a profound sentiment of gratitude towards all the men and women that I have interacted with during this long journey towards the completion of my degree. Concomitantly, I also experience some degree of frustration that I will not be able to fairly express my appreciation for each person individually in this section of acknowledgements. All the ?thank you?s? in the world would not be enough to express my gratitude to my supervisor, Marcello Veiga, whose support and friendship were paramount to my professional growth and academic development. It goes without saying that the musical encounters and social events were always fun, and also that they were vital in order for me to maintain a healthy balance between work and play. Dirk van Zyl, co-supervisor of this study, occupies a special place in my heart, as I deeply admire his wisdom, kindness and inquisitive approach. I feel privileged for the many opportunities that I have been given to work with, and learn from him. I am thankful for the opportunity to have worked with Ben Bradshaw on the CSR Brazilian project. Many of the ideas present in this work came from the fieldwork conducted for the CSR Brazilian project. In addition, I feel fortunate to have him as a member in my PhD committee and I sincerely appreciate his contributions and support, especially during the process of completing my comprehensive examination. At one stage during my quest towards completing this degree, I had close involvement with CBERN, many of its members, and the PhD Cluster group. The connections I developed here were made possible by the financial support provided by CBERN to attend conferences and PhD Cluster Meetings. My grateful recognition to CBERN, as well as to my fellow colleagues, for such opportunity. Key people within the companies that agreed to take part in my research were fundamental to the success of the study. From Boroo Gold Company I am grateful for the support, comments and suggestions made by Rick Blake and Tuulaa. From Diavik, I feel indebted to Colleen English, whose hard work and support were critical to making this research possible. From Cerro Vanguardia SA, I thank you Jorge Palmes and Eduardo de las Longas. I also feel grateful for the support and time spent with Adolfo Valvano, whose passion and dedication to the community of Puerto San Julian can easily be felt. There are other significant individuals and organizations that have directly contributed to this study and I am sincerely appreciative of their help and partnership. Oba Harding from MITACS, Ernesto Sirolli from the Sirolli Institute and Suzette McFaul from SEF Canada, thank you! I offer my gratitude to the faculty, staff and students at UBC who have, in many different ways, inspired me to continue my journey. I feel fortunate for the many opportunities I have had to learn from and engage all the outstanding professors in the Mining Department. I particularly want to thank Bern Klein, John Meech and Michael Hitch. I also feel a profound gratitude to Maria Lui who is a very sharp lady, and who always senses the right moment, frequently delightfully surprising me, to pull out a joke. \t ?\t ? xix I have an immense debt of gratitude to Leslie Nichols, from whom I learned immensely during the time we worked together closely. Malcolm McLachlan (Mac) has played an important role throughout the entire process, and I also want to express my grateful thanks for his involvement. One of the many ironies of life is that, because of our geographic distance, I have developed a closer relationship with my family. Renato and Laura, each one in their own way, have shown their support while I pursued what to me, many years ago, seemed like something unimaginable. I?ve heard somewhere that a friend is a brother or a sister who we get to choose. Abimael Carvalho is such a brother. I am not sure that I will ever be able to reciprocate - though I will certainly try - the level of generosity, companionship and unconditional support that I received from him. I want to thank my wife Claudia for her support and encouragement, and as well, for her companionship and patience while I completed this thesis. Her presence was critical to getting me through this sometimes challenging process. My mother always believed that her role in raising her three children was to encourage us to develop the skills to provide us with the resilience to navigate and survive any situation of our own choosing or in which we found ourselves. The importance of respect, determination and hard work were core values within her teachings. I have an immense sentiment of gratitude, admiration and respect for my mother, and I feel blessed for being her son. This thesis is dedicated to my mother, F?tima. Thank you! Merci! Bayarlaala! Gracias! Obrigado! \t ? \t ?\t ? xx DEDICATION To Mom \t ?\t ? 1 CHAPTER 1 1.1 Introduction Mines close either when resources become depleted or when it becomes unfeasible, from an economic standpoint, to keep mining. At the time of closure, it is typical that a well-deserved environmental concern develops to mitigate and reclaim the disturbed areas. However, very little attention is usually focused on the local and regional socio-economic impacts that the closure of a mine imposes on governments, and especially on communities (Cesare & Maxwell, 2003, Kemp et al., 2008, Veiga et.al., 2001, Chaloping-March, 2008). In cases in which the closure plan contemplates social dimensions, the approach is usually not well articulated, and does not consider the implementation of comprehensive and sustainable initiatives that would allow local communities to overcome the wide range of consequences brought on by the withdrawal of resources when a mine winds down or ceases its operations. Legal frameworks implemented worldwide for mine closures at the federal and provincial/state levels are limited, and address neither preventive nor mitigation strategies to avoid the socio-economic impacts of the closure. Furthermore, in many developing countries that are rich in mineral resources, the overall legal structure is weak, and in many places, corrupt. Due to several reasons (Warhurst, 2000; Jenkins and Obara, 2006), Corporate Social Responsibility (CSR) initiatives have become a common practice in the mining industry, and CSR has become part of the business strategy for some companies, as can be seen on the Rio Tinto and Kinross Gold websites.1 CSR initiatives have claimed to support community development while at the same time, prepare the communities for closure. However, the approach undertaken has very often been focused on building infrastructure facilities which the communities are then not able to maintain subsequent to closure (Roberts and Veiga, 2000). As was the case in Serra do Navio mine in the northern part of Brazil, despite ?the excellent constructions for housing, club, urban infrastructure and hospital are very good, there was no alternative economic activity in the area? (Chaves, 2000). Furthermore, ?According to leaked independent audit of 2001 commissioned by Shell, less than one-third of Shell?s development projects in Nigeria were fully successful? (Frynas, 2005, p. 587). To Warhurst and Mitchell (2000), CSR implies an active commitment and responsibility to make a difference in one?s community, one?s society, and one?s country. They define CSR as ?the internalization by the company of the social and environmental effects of its operations through pro-active pollution prevention and social impact assessment so that harm is anticipated and avoided and benefits are optimized? (p.43). This research comprises of an exploratory multiple case study that focuses on the efforts undertaken by mining companies towards implementing initiatives to cope with the socio-economic impacts of mine closure. Based on these case studies, it is intended that a deliverable comprehensive framework will be \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?1 Refer to Rio Tinto (http://www.riotinto.com/ourapproach/our_strategy.asp) and Kinross (http://kinross.com/about-\t ?\t ? 2 developed that may eventually be adopted by mining companies, local communities and government to address the consequences of mine closure. The case studies for this research took place in Mongolia, Argentina and Canada. It is believed that the geographical, cultural and socio-economic diversity of these countries have yielded a distinctive information that assists in making the Socio-Economic Mine Closure (SEMC) Framework more comprehensive, flexible and suitable for adoption in a wide range of distinct international settings. The shortage of studies on the subject of minimizing the socio-economic impacts and implementing actions to deal with the consequences of the closure of a mine does not correspond to the actual importance of the topic. Currently it is estimated that there are 25,000 mines worldwide producing industrial minerals (Mining Journal Online, 2011). Depending on technical, economic and social factors, an average mine can operate from 8 to 30 years. Thus it can be anticipated that there will be extensive and continuous mining closure work for many years to come. This scenario reaffirms the importance of research of this nature. From a more pragmatic point of view, a socially responsible and well-rounded mine closure can reduce costs, reduce liability to the shareholders, be profitable and also contribute to building the company?s reputation (Chaves, 2000), which can contribute to facilitate earning social license to operate in other regions where the same company or group have or begin new operations. 1.2 Statement of the Problem Despite the efforts undertaken to promote integrated mine closure frameworks and guidelines (e.g. the ICMM Planning for Integrated Mine Closure Toolkit, and the MMSD Mine Closure Working Paper) by the resource extractive sector and international organizations, the existing approach still focuses heavily on environmental matters. When it considers the social dimensions, this approach is ?confined to the inclusion of ?stakeholder consultation?? (Chaloping-March, 2008). To Digby (2012, p. 34) in many cases ?Consultation is an exercise in marketing a fait accompli, rather than a genuine attempt to listen? and tends to lack initiatives to properly deal with the social and economic impacts that closing a mine imposes on local communities. Furthermore, from the academic point of view, few studies have been conducted on the topic, and those that do exist are missing comprehensive theoretical and practical examples of Socio-Economic Mine Closure (Kemp, 2009; Veiga et al., 2001; Chaloping-March, 2008). Paradoxically, government response to the social and economic problems brought on by mine closure has been passive. This approach is illogical because towards the end of a mine?s working life, the heavy burden of the closure will impact on governments from at least two fronts: a) by losing revenues generated from royalties and taxes which have been paid by the mining companies; b) by the growing demands on services, such as the health care system and unemployment insurance made by the local population (Chaloping-March, 2008, Roberts and Veiga, 2000). Lima (2002) calls to our attention that governments play an important role in sustainable development as ?they are challenged to develop \t ?\t ? 3 policies, regulatory and fiscal frameworks to encourage innovation, increase productivity, trade and investment in an environmentally sound and socially responsible manner? (p. 23). In consideration of this state of affairs, mining companies need to implement new initiatives that go beyond the legal requirements. Taking part in such proactive initiatives would ensure that mining companies engage with employees, government, society in general, as well as community members, in a comprehensive fashion. Such an approach would safeguard that the relationships between the company and the communities would be more responsible and just, and ultimately, these initiatives would contribute to the sustainable development of communities after closure. The originality of this research is that it brings together, into an integrated socio-economic mine closure framework, a comprehensive set of management as well as leadership aspects that are critical to leaving positive legacies and sustainable local post-mine communities. 1.3 Justification of the Research Mining companies have historically understood mine closure as the processes of mine site rehabilitation and decommissioning. Furthermore the general belief within the industry is that by being in compliance with the law, paying taxes, doing philanthropy and implementing social projects, companies are exempt from further responsibility in relation to the socio-economic impacts that the closure of the mine will have on local communities and governments. Additionally, the governance crisis within governments, corruption and mismanagement of the royalties and tax moneys paid by mining companies to local governments simply impose greater challenges and hardships on the communities (Enriquez, 2007), thus worsening the socio-economic impacts of the closure. There have been multiple international and industry-related initiatives such as the Equator Principles, Towards Sustainable Mining, ICMM Planning for Integrated Mine Closure Toolkit, and the MMSD Seven Questions to Sustainability, all of which (directly or indirectly) touch upon socio-economic aspects of mine closure. Nevertheless, gaps still remain and no comprehensive, integrated planning and implementation processes have yet been proposed. In fact, 10 years after the publication of MMSD reports, IIED call out for clearer guidance and implementation on environmental impact assessments and effective mine closure plans (Buxton, 2012). Moreover, these guidelines and frameworks do not seem to make leadership elements accountable, or even important components, in the socio-economic aspects of the closure. This is illustrated in the ICMM Planning for Integrated Mine Closure Toolkit (ICMM, 2008, p.49) which states that: ?closure today is less of a technical challenge and more of a management challenge?. One of the focal arguments in this research is that a refined and integrated management process, as well as appropriate leadership skills and a compatible philosophical understanding all need to be developed for a comprehensive socio-economic mine closure to take place. \t ?\t ? 4 The consequences of a shortsighted approach to the socio-economic implications of mine closure can have a wide range of impacts including cultural, social, physical, psychological and economic impacts. The impact on employment, for instance, is one of the first, most serious and long-lasting consequences of mine closure. Haney & Shkaratan (2003) found that even 5 years after the closure of mines in Romania, Russia and the Ukraine, communities were still dealing with the difficult effects of the closure. The consequences were not only related to the number of existing positions but also to the lower quality of the job available after closure. The lack of, and low quality of jobs available was directly related to the emergence of informal markets, low wages and insecure forms of employment (Kemp et al., 2008, Haney & Shkaratan, 2003). When the closure of a mine is imminent, governments and companies tend to focus on mitigation mechanisms. The most common strategy is to counter-attack economic and job shortage issues through the implementation of economic diversification initiatives through retraining, reemployment and the creation of incentives for entrepreneurship programs. However, even after these initiatives have been put in place, it takes a long time to start producing meaningful results (Haney & Shkaratan, 2003). In addition to that in the typical approach to entrepreneurship the failure rate for new business is of 50-70% in the first five years (Small Business Trends, 2013). Furthermore, entrepreneurships programs are often created with a top-down approach ? a strategy which has not been shown to be successful in the long-run since it does not take into account the needs and wishes of community members and results in a low level or a superficial engagement of people (Sirolli, 1999; Roberts & Veiga, 2000; Cohen and Easterly, 2009; McFaul et al., 2013). Mining activities very often account for a significant portion of the local GDP. For instance, in the 1980s, the Bougainville mine located in Papua New Guinea represented around 20% of the national budget (Thompson, 1991), while Paracatu, a gold mine in Brazil in 2010 was responsible for 15% of the municipal budget, Diamond Industry in the Canadian North West Territories account for 16% of the GDP (GNWT Bureau of Statistics, 2013) and it is expected that the Oyu Tolgoi mine in Mongolia will account for over 30% of the national GDP when the mine will be in full operation in 2020 (Hutchinson, 2012). Understandably, the loss and/or significant reduction of taxes and royalties generated by mining activities will have direct consequences on the public services offered to the local people since the quality, variety and amount of services available will also be impacted. Furthermore public expenditure obligations inevitably expand as people need more support to cope with the wide-range of consequences that a mine closure imposes on a community (Haney & Shkaratan, 2003, Kemp et al., 2008). It is noteworthy to mention the impacts that mine closure can have on the overall physical and/or psychological health of individuals (Warhust, 2000). The psychological impact of losing one?s job can result in physical effects such as increases in blood pressure and cholesterol levels, and psychological implications such as increased levels of substance abuse, as well as family violence and divorce are also commonly seen (Warhust, 2000). \t ?\t ? 5 Shandro et al. (2011) investigating health issues in Canadian mining communities found that family was rated as a ?key to the health of the overall community and individuals? (p.181). Gibson and Klinck (2005) found that ?long hours and roster patterns characteristic of shift work have been identified by workers as among the most stressful of all working conditions? (p. 120), the authors continue saying that ?mining poses potential risks to the health of northern communities in terms of behavioral changes, as facilitated by increasing incomes. The most obvious of these is alcoholism or drug abuse? (p. 122). Separados de Chile, an organization for support and research on divorces in Chile found out that 40% of the marriage breakups were due to economic reasons (Munoz, 2011). In this regard, Shandro et al (2011) also identified that the ?stress during bust times were reported to be key factors affecting the family and were attributed to divorce, violence and stress? (p.181). In their paper entitled Socially Responsible Plant Closing, Kinicki et al. (1987, p. 124) indicate that ?for every 1% rise in unemployment, a community experiences similar increases in the rates of suicides (4.1%), homicides (5.7%), stress-related illnesses (1.9%) and admissions to mental institutions (4.3%)?. Community cohesion can also be impacted as a result of tensions between those who still have job, and the workers who have been laid off as a result of the downsizing prior to closure of the mine (Chaloping-March, 2008, Roberts & Veiga, 2000). Migration is another issue that can have both social and economic consequences. The emigration of young and skilled workers seeking better wages and living conditions have direct impact on the quality of the professionals available in town. Emigration can also have deleterious impacts on the cohesion of families, local culture and traditions (Chaves, 2000; House of Commons, 2003; Roberts and Veiga, 2000; Starke, 2002). Despite the fact that some areas have mine closure laws (e.g. the United Kingdom, the Province of Ontario, the State of Nevada, Romania and Nigeria) (Clark & Clark, 1999), with exception of Romania and Nigeria there is no existing level of law enforcement that specifically addresses the social aspects of mine closure. In the Romanian Mining Law # 85/18.03.2003, enforced in 2003 its article 52, establishes that companies are required to develop a social protection program where, besides community consultation, it requires: social protection program, through reemployment and/or professional reconversion; financial compensation and/or regional development measures by creating new work places, prepared in accordance with the law, upon consultation with affected groups of people and approved by the Competent Authority in the field of social protection; in the case of national companies and societies, such program shall also be approved by the line Ministry (Romanian Mining Law # 85/18.03.2003, article 52 c. p. 20). In Nigeria, although not explicitly referring to mining closure, the Minerals and Mining Act 2007 determines that: The holder of a mining lease, small scale mining lease or quarry lease shall prior to the commencement of any development activity within the lease area, conclude with the host \t ?\t ? 6 community where the operations are to be conducted an agreement referred to as a Community Development Agreement or other such agreement that will ensure the transfer of social and economic benefits to the community. It continues, ? The Community Development Agreement shall contain undertakings with respect to the social and economic contributions that the project will make to the sustainability of such community (article 116 c. p. 1 and 2). Several authors (Neil et al., 1992; Clark & Clark, 1999; Warhurst & Noronha, 1999; Veiga et al., 2001; Roberts & Veiga, 2000; Lima, 2002; Chaloping-March, 2008; Kemp et al., 2008; Kemp, 2009; Worrall et al., 2009; van Zyl, 2010) have pointed out the importance of a more comprehensive and holistic approach to mine closure. To them, the manner of engaging with communities and coping with the social dimensions and the socio and economic impacts of a mine closure on individuals and communities needs to be properly taken into account. While some argue that the mineral resource sector should not be alone in bearing the responsibility for the socio-economic consequences of the closure, mining companies are instrumental players, holding significant power, influence and resources. At the end of the day, mining companies will be the ones who are held accountable. That been said, it is critical for a successful mine closure to engage appropriately with both local governments as well as local communities (Buxton, 2012). ?Reconciling the various rights and responsibilities in different governance environments to the satisfactions of those concerned is perhaps one of the most difficult challenges? (MMSD, 2002, p. 199). In this context ?Sustainability will begin to become real when the different stakeholders exercise their individual responsibilities? (Cooney, 2012). 1.4 Case Study Approach This research aimed to develop a comprehensive framework to address the socio-economic implications of mine closure. Through the literature review a framework was proposed, in a further assessment of the developed framework an online survey with experts, practitioners were conducted. Finally, as a means to assess the framework in a more practical manner a set of three case studies were adopted, where the Socio-Economic Mine Closure (SEMC) framework was the backbone of the case study investigation. To this end, this study adopts the case study approach, employing the SEMC Framework as a reference through which to analyze the initiatives that have been adopted by mining companies and which address the socio-economic implications of mine closure . Additionally, the study seeks to capture the perceptions of people in relation to these initiatives. In general, a case study approach allows for the development of an in-depth understanding of real life phenomena. In contrast to experimental research, case studies are considered to have a naturalistic design since investigators do not exert control or manipulate variables, and since case studies explore events / phenomena which occur within their natural context. In this investigation three case studies were conducted where three distinct mining companies holding operations in Mongolia, Argentina and Canada agreed to participate in the study. Case study 1 - Boroo Gold Mine located in Mongolia, owned and operated by Centerra Gold Case study 2 - Cerro Vanguardia Mine located in the Patagonia Argentina, owned and operated by AngloGold Ashanti \t ?\t ? 7 Case study 3 - Diavik Mine located in the Canadian Northwest Territories, owned and operated by Rio Tinto. These three companies are scheduled to have their operations ended within ten years and they agreed to participate in the study. The management of these companies identified that participating in the present research was an opportunity that could generate valuable information that could be adopted when designing, developing and implementing their mine closure strategies and plans. The criteria to select these companies to participate in the study considered their geographic location, since the researcher was looking for case studies from different continents. However the key factor was a company?s willingness in participating and collaborating with the research. A detailed profile of the country/region where the mine operations are taking place is presented in the analysis of the case studies where in addition to that a comprehensive view of the company and its operations are also provided. The following section introduces the research questions that guided the present study. 1.5 Research Questions What can be done to create a systematic and integrated approach for the mining companies to facilitate implementation of social and economic mine closure initiatives? What are the initiatives implemented by mining companies to promote the local economic development in the communities where operations take place and to what degree do these initiatives assist in addressing the socio-economic impacts of the closure of the mine? What are the perceptions of the community about the role of mining companies in implementing socio-economic mine closure initiatives? Considering these questions a set of four objectives are established: 1.6 Research Objectives Objective 1 ? To summarize and evaluate key mining industry related policies, obligations, guidelines and frameworks worldwide regarding socio-economic aspects of mine closure. Objective 2 ? To develop and evaluate a comprehensive framework for planning, developing and implementing initiatives, to be adopted by mining companies to create a practical approach to mitigate the socio-economic impacts of mine closure. Objective 3 ? To summarize and evaluate through case studies analysis the initiatives taken by mining companies that seek to advance the community development (CD) of the locations where they operate as a means to assist in the socio economic impacts of site specific mine closure. Objective 4 ? To study the perceptions of the mining communities, government and mining companies towards the socio-economic mine closure initiatives proposed and implemented by the mining companies. \t ?\t ? 8 1.7 Contribution of the Research 1.7.1 Applied Contribution of Research In order to make decisions regarding investments, shareholders and financial institutions consider environmental aspects, as well as the social risks associated with a mine project. An increasing focus is being placed on ensuring that mining communities remain viable after mining operations are concluded. In this regard, the SEMC Framework can function both as a guide to mining companies and as an assessment tool which allows for a better understanding of the perceptions of community members and other key stakeholders in relation to the social and economic aspects of mine closure. To secure a social license to operate and to earn respect and credibility, mining companies, now more than ever, need to adopt a transparent and effective approach to engaging with local communities. This process can be facilitated through further development and adoption of the Socio-Economic Mine Closure Framework. 1.7.2 Academic Contribution of Research This study will contribute to the literature of Sustainable Development, Community Development and Socio-Economic Development, as well as to other CSR and business areas as a result of the wide-range of disciplines that the Socio-Economic Mine Closure Framework encompasses. It further contributes to the development of a framework through which to assess sustainability policies and guidelines in the mining industry. This work contributes to sustainable development theory and practice since it discusses advancement in both policy and practices in the mining sector. This work also contributes to enhancing community participation both in terms of quantity and quality. As such, ?if mining operations are to help communities work towards sustainable development, the communities need to be able to participate effectively in the decision-making process for establishing and running the operations, in order to avoid or minimize potential problems? (Stake, 2002, p. 208). 1.8 Thesis Structure This thesis is organized into 11 chapters. The layout of the thesis is presented in the Roadmap which follows in Figure 1. Additionally, Figure 1 also provides practical research milestones. Chapter 1 ? Presents the introduction, statement of the problem, presentation of the research questions, the justifications of the study, and the expected contributions of the work. Chapter 2 ? Provides a literature review, discusses the concept of community and community development, and offers a discussion regarding the Socio-Economic Mine Closure Framework. Chapter 3 ? Introduces the research process and methodology, and provides a detailed discussion regarding the methodological approaches used in the study. \t ?\t ? 9 Chapter 4 ? Contains the Crosswalk Matrix which compares the existing industry guidelines to the SEMC Framework. Chapter 5 ? Presents the development of, and discusses the online survey which assesses the SEMC Framework, thus addressing Objectives 1 and 2. Chapter 6 ? In this chapter, the three case study analyses are presented, providing a detailed context for each of the case studies. Furthermore, each of the individual case studies is analyzed, and the results are discussed; thus addressing Objectives 3 and 4. Chapter 7 ? Provides a general discussion, summarizes the findings of each case study and discusses the common points found in all three case studies. Chapter 8 - Delivers the conclusions of the study. Chapter 9 ? Offers arguments regarding the original contributions of this study to both scientific knowledge and professional practice. Chapter 10 ? Discusses some of the limitations of the study. Chapter 11 - Provides suggestions for further studies to expand upon the information gathered in this study.\t ?\t ? 10 Thesis Roadmap Practical Research Milestones Figure 1 - Roadmap and Milestones of the Thesis Industry frameworks / guidelines review (Objective 1) (Chapter 2) Development of the SEMC Framework (Objective 2) (Chapter 2) Crosswalk Matrix analysis (Objectives 1 & 2) (Chapter 4) SEMC Framework ONLINE survey (Objective 2) (Chapter 5) Case study Identification (Chapter 3) Research fieldwork design (Chapter 3) Development of fieldwork SEMC survey (Chapter 3) Fieldwork ? Mongolia\t ?? Canada\t ?? Argentina\t ?(Objectives 3 & 4) (Chapter 6, 7 and 8) Chapter 1 - Introduction 1.Introduction 2.Statement of the problem 3.Justification of the research 4.Case study approach 5.Research questions 6.Contribution of the research 7.Thesis structure Chapter 2 ? Literature Review & Approach 1.Community development in mining 2.Philanthropy 3.Industry guidelines / frameworks 4.Socio-Economic Mine Closure Framework (SEMC). Chapter 3 ? Research Process & Methodology 1. Phase I 2. Phase II 3. Phase III Chapter 4 ?Analyzing Industry Guidelines / Frameworks 1. Crosswalk matrix Chapter 8 ? Conclusion Chapter 10 ? Claim of originalityChapter 9 ?Study limitations Chapter 11 ?Recom-mendations for further study Chapter 5 ?Assessing and Receiving Feedback on the SEMC Framework 1. Online survey Chapter 6 ?Case Studies 1. Mongolia 2. Argentina 3. Canada Chapter 7 ? General Discussion \t ? 11 CHAPTER 2 2.1 Literature Review This chapter presents a discussion regarding the concept of community within the context of mining. It then goes on to initiate a dialogue on the notion of community development. Furthermore, it touches upon the concept of philanthropy and some of its implications. Towards the end of the chapter, six industry-related frameworks and guidelines are introduced. Finally, this chapter defines socio-economic mine closure and introduces the proposed Socio-Economic Mine Closure Framework. Community development (CD) rhetoric and practice have become part of the strategy used by the mining industry while approaching communities and in their interactions with governments and society at large. Several initiatives which claim to promote CD have been implemented. Scholars and practitioners are however cautious, and at some level cynical, with respect to the amount of good that both CSR and CD initiatives yield (Jenkins and Obara, 2006; Frynas, 2005) since there exist a wide range of interpretations that can be made with regard to the terms which are used. In this regard Frynas (2005) notes that: ?The effectiveness of CSR initiatives in the oil, gas and mining sectors has been increasingly questioned, and there is mounting evidence of a gap between the stated intentions of business leaders and their actual behavior and impact in the real world? (p.582) There has been extensive debate regarding the definitions of both the terms and concepts of ?community? and ?development,? and there exists an array of definitions for both terms. In 1955, Hillery (1955) found 94 different definitions for community. Referencing Young (1990), Kumar (2005) points out that ?there is no universally shared concept of community, only particular articulations that overlap, complement or sit at acute angles to one another? (p. 275). To Kapelus, any definition of a community is always a construct and does not necessarily fit with the lived experience of the people involved. Therefore any attempt to define community will be subject to contestation, ?especially when excluded individuals feel they should be included? (2002 p. 281). Furthermore Cohen (1985) notes that the ?community exists in the minds of its members, and should not be confused with geographic or sociographic assertions of fact. By extension, the distinctiveness of communities and, thus, the reality of their boundaries, similarly lies in the mind, in the meanings which people attach to them, not in the structural forms? (p.98). In spite of the variety of definitions, there is some degree of agreement regarding what a community entails. As such, it is generally understood that a community is made up of a group of people who may or may not be in the same geographic area, who retain social interaction with one another, and who share one or more common interests. In relation to the mining industry, notwithstanding the fact that the word ?community? is frequently mentioned on company websites and annual reports, no specific effort to define the term has been attempted. However, what can be concluded, based on the ways in which the term has been used is that a mining community consists of a group of people who are very often geographically located near where \t ? 12 a mine operation takes place, and whose natural environment may or may not be affected by the mine, but who are clearly socially and economically impacted by its operation. Due to its subjectivity and based upon the interpreter?s social, political or cultural background, this understanding of mining community can result in distinct interpretations since terms such as ?near? and ?impact? can vary from person to person. An analogous exercise to that which has been used to define the term community can then be undertaken in order to gain a better understanding of the word ?development?. In the literature, it was found that ?development? has been closely connected to economic concerns such as growth, income and employment (Armstrong and Taylor, 2000 qtd. in Pike et al, 2007). For Pike et al. (2007) this perpetuates the myth ?that in order to foster economic development, a community must accept growth. In fact, growth must be distinguished from development: growth means to get bigger, development means to get better, increasing in quality and diversity? (p. 1254). There is a general belief that by increasing a nation?s wealth, economic growth also improves its potential for reducing poverty and solving other social problems (Pegg, 2006; Soubbotina & Sheran, 2000; Bhattacharyya, 2004). However, some studies have indicated that economic growth is not necessarily followed by similar progress in human development, and that attempts to positively tackle social problems during times of economic growth have been dismal (Pegg, 2006). Furthermore, ?Instead growth was achieved at the cost of greater inequity, higher unemployment, weakened democracy, loss of cultural identity, or overconsumption of resources needed by future generations? (Soubbotina & Sheran, 2000 p.7). Differentiating growth from development does not make the task of defining development an easy one since no homogeneous understanding of what development means has been arrived at. It can be said however that any kind of development encompasses an evolutionary process that necessarily involves the improvement of a particular state or condition over time. As such, ?human development can best be described as an evolutionary process toward human betterment? (Boulding, 1990 qtd. in Lawn, 2001, p. 13). As with the concept of ?community,? the fuzziness and subjectivity of the term ?development? opens up the opportunity for different interpretations. Furthermore, the definition of local development is necessarily site-specific and context-dependent (Pike et al., 2007,Canzanelli, 2001). Particularly, ?notions of development are socially determined by particular groups and / or interests in specific places and time periods? (Pike et al., 2007, p. 1255). Canzanelli (2001) notes that within the context of sustainability, economic development is not per se an objective. Rather, it is a mean for achieving wellbeing according to the culture and the conditions of certain populations. Furthermore, the idea of wellbeing does not mean the same thing to everyone, and it varies depending on the context (Canzanelli 2001; Maser, 1997; Pike et al., 2007). Dodge et al. (2012) argue that in relation to wellbeing, ?many attempts at expressing its nature have focused purely on dimensions of wellbeing, rather than on definition? (p. 222). Shah and Marks (2004) \t ? 13 contribute to the discussion stating that, ?Well-being is more than just happiness. As well as feeling satisfied and happy, well-being means developing as a person, being fulfilled, and making a contribution to the community? (p. 2). At the end of their paper ?The Challenge of Defining Wellbeing,? Dodge et al. (2012), propose that wellbeing consists of an equilibrium between resources and challenges, where both resources and challenges are expressed by three constituents elements: psychological, social and physical. In summary, ?wellbeing is a balance point between an individual?s resource pool and challenges faced? (Dodge et al., 2012, p.229). Considering that resources and challenges are not necessarily uniformly available to every individual and that challenges are understood and perceived in different forms, the understanding of wellbeing is subject to individual interpretation. In this regard, Van Vlaender & Neves (2010) studied the perceptions of key people involved in a prospective African mining project and found that different stakeholders had distinct understandings of development. Thus Canzanelli (2001) has suggested that the concept, understanding, and consequently expectations and attitudes in relation to development can assume a variety of forms, as is depicted in the following table. Table 1 - Various Different Views of Development Stakeholder Views of ?development? Local communities Development as an opportunity for shared benefits Local officials and Local interested groups Development as an opportunity for individual groups Community members Development as a potential negative impact on the status quo Consultants and mining company Development as an opportunity to make a positive contribution Mining company Development as a risk to goal achievement Consultants Development as a the application of a procedure Source: Vlaenderen & Neves, 2010 In the context of community development, development is considered to be an inclusive and complex phenomenon which looks further than a simplistic economical perspective. As well, it encourages a broader and more comprehensive understanding of wellbeing and quality of life (Lawn, 2001; Pike, 2010; Canzanelli, 2001), ?where the exploitation of resources, the directions of investments, the orientation of technological and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations? (WCED, 1987, p.46). Development goes beyond the limited and narrow view of promoting development through only economic growth. In this regard, community development in mining can be influenced by economic growth but certainly needs to have a positive impact on the quality of life of local residents and those who are directly affected both socially and economically by the mining operation. Furthermore, justice, participation and common goals will all play important roles in defining the future of the community. 2.2 Community Development (CD) in Mining Community Development (CD) consists of the (planned) evolution of several aspects of community wellbeing (economic, social, psychological, environmental, cultural and political). \t ? 14 Borrowing from Dodge et al.?s (2012) definition of wellbeing, community wellbeing is achieved through reaching an equilibrium between accessible resources and the challenges faced by community members. As such, community development becomes a process whereby people come together to take collective action to successfully solve common problems as well as implement changes at the local level to enhance the quality of life of community members (Frank & Smith, 1999; Maser, 1997). Community Development is based on a self-assessment to plan for the future. Central to this is the belief that members within the community have the primary responsibility for decision-making and action (Homan, 1999). Similar to the terms ?community? and ?development,? CD can mean different things to different people in different places. As a result, the methods, tools and techniques to approach CD can assume various forms (Frank & Smith, 1999; Bhattacharyya, 2004). In fact, ?how one interprets community development affects one?s orientation when initiating a development program? (Bhattacharyya, 2004 p. 7). In the context of the extractive sector, corporate philanthropy has been the traditional approach taken in the attempt to promote community development. A common philanthropic tactic adopted by corporations attempts to enhance the quality of life in local communities through the provision of charitable donations which very often has immediate positive results, but are not sustainable in the long-term. The common approach of these corporations is to aid local organizations and to improve the community?s basic infra-structure through building or enhancing such necessary facilities as hospitals and schools, and through providing energy and clean water. One of the drivers for this approach is to obtain or to maintain their social license to operate (Starke, 2002). The challenge of this approach is that leads to ?dependence on the company and a situation in which benefits cannot be unstained when the mine closes? (Starke, 2002, p. 209). Some corporations have recently been adopting what seems to be a more structured and focused approach in relation to their voluntary social performance, and have also focused on directing their corporate philanthropic efforts to the promotion of local economic development (LED). LED, is becoming more popular within the mining sector and seeks to support the development of local businesses and entrepreneurship initiatives as a means of promoting enterprises that would be sustainable after the mine is gone. Despite this approach to corporate philanthropy in mining, the question whether philanthropic initiatives produce positive outcomes in the long run remains. In fact, if not planned and implemented properly, corporate philanthropy can produce detrimental results in the long-term (Starke, 2002; Kanitz, 2011). 2.3 Philanthropy Philanthropy is a double-edged sword, and for this reason not many people dare to raise discussions regarding some of its drawbacks and negative consequences. This is especially true within the context of local mining communities because people are rightfully afraid to raise discussions for fear that the \t ? 15 available money would fall prey to funding cuts, thus resulting in the withdrawal of existing charitable initiatives. Philanthropy is necessary, and in critical situations such as earthquakes or hurricanes, serves the vital function of providing temporary relief and alleviating the suffering of the people affected. In the realm of socio-economic development, philanthropy can help build infrastructure, finance capacity building, and enable educational, professional and technical training initiatives. These programs can act as gateways to the betterment of people and local communities but only if the beneficiaries function as active participants who are aware of their role in the process and who understand that the charitable donations are there to provide stepping-stones to a succeeding level of local development (Kanitz, 2011). When philanthropy is intended to ameliorate people?s quality of life, as in the case of foreign aid or private social investment, the way in which the money is spent and the resources are provided can have either detrimental or enriching consequences on individuals and communities (Sirolli, 1999, 2008). In fact too often, the structures that provide development assistance disempower rather than invigorate local organizations and communities. Too often local community initiative and individual enterprise are undercut rather than fostered by conventional development assistance and government development programs (Schearer, 1995, p. 23). One of the reasons for the attainment of undesirable results is that mining companies use corporate philanthropy to build infrastructure and deliver physical and tangible benefits instead of strengthening human values (Veiga, 2010). Furthermore, the approach is very often top-down, and only a small portion of the community is beneficially affected (Sirolli, 1999). To Veiga (2010; Veiga et al, 2001), most of the tangible benefits such as schools, hospitals and paved roads, which are proudly promoted by mining companies, are unsustainable by their very nature because they require that resources be maintained into the future, and such resources become scarce when the mine closes down. Instead, according to the author, the approach undertaken by companies should be educational, with a focus on strengthening human values such as solidarity, family, culture and respect. Philanthropy and other approaches that focus more on providing benefits rather than on building empowerment and self-reliance produce dependency, lack of creativity, and diminished self-esteem. They also inhibit people?s passion to pursue their dreams of self-realization. Ultimately, philanthropy results in a relationship which has a patronizing and addictive quality, and which ultimately instills apathy and numbness in the community (Sirolli, 1999). In the context of the resource extractive sector, corporate philanthropy has historically been a significant approach for engaging with, and improving the quality of life of local communities. Many remote and underdeveloped communities that host mining operations lack basic amenities, and when a company builds a hospital, school, or provides a facility to supply clean water, the philanthropic initiatives are \t ? 16 welcomed. The problems that result are usually due to lack of holistic approach and the dependence that these short-term solutions create. On the other hand, from a business point of view it is appealing to invest in short-term projects such as building schools, roads and hospitals, which deliver tangible benefits, because projects such as these have the potential to build the company?s reputation and are undeniably positive public relations strategies (Mescon & Tilson, 1987; Bekkers & Wiepking, 2006; Porter & Kramer, 2002). Their benefits for the company include that they are short term projects, it is easy to measure the results, they are visible to everyone in the community, and in most of the cases, are badly needed. The risks inherent in such an approach involve the difficulty of maintaining the source and continuity of the resources needed to maintain the facilities after mine closure, and the dependence this creates for local communities (Jenkins and Obara, 2006). As mentioned previously, in the case of the Serra do Navio mine located in Amapa estate, in Brazil, when members of the local communities did not have alternative means to earn a living than from mining, the resources for maintaining the facilities dried up, and the social services and benefits that these facilities were able to provide also had to be withdrawn (Chaves, 2000). In the context of mine closure, the solution to turn an injurious and paternalistic form of corporate philanthropy that generates dependency into a beneficial form of philanthropy that opens doors to sustainable development is as complex as any other community development intervention; it demands planning, the commitment of donors and beneficiaries, and perseverance and time in order to produce visible and measurable results. However, it is the only way to create long-lasting positive results after the closure of a local mine. The next section provides an overview about the closure of Sullivan Mine and Anaconda Copper Mine. 2.4 Mine Closure Cases 2.4.1 Sullivan Mine ? British Columbia ? Canada Kimberley, British Columbia?s Sullivan Mine began its full operations in 1909. At the time, it was operated by the Consolidated Mining and Smelting Company of Canada, a conglomerate of several Canadian Pacific Railway companies. The Consolidated Mining and Smelting Company of Canada became Cominco in 1966. In 1986, TECK Resources Limited purchased a portion of Cominco from Canadian Pacific Limited, becoming Teck Cominco, and in 2001 it purchased the remaining shares. The closure of the Sullivan Mine, which took place between 1991 and 2001, is an interesting example of the way in which a mining company, the government and the community have been able to create a social contract to the benefit of all parties. Working together, these stakeholders have been successful in creating a smooth transition from pre-closure to post-closure times (Ednie, 2006). From 1909 to 2001, over the 92-year life span of the Sullivan Mine, the mine employed 60,000 employees, produced over 8.39 billion kg of lead, 7.39 billion kg of zinc and 297 million ounces of silver, and was the heart of the economy Kimberley, B.C. (Roberts, 2001). Cominco invested heavily both in the \t ? 17 mine and in economic diversification at the community level, creating value-added industries such as steel, fertilizer and iron plants alongside the Sullivan Mine, thus further diversifying both the local Kimberley and the provincial economy (Crane, 2012). In 1989, twelve years before the Sullivan Mine would be closed, Cominco submitted reclamation plans to the British Columbia Ministry of Mines and two years later, in 1991, publicly submitted plans for the mine?s closure (Ednie, 2006). Prior to this submission in the 1980?s, the community began engaging in talks about the future of Kimberley. The community actively participated in planning and, for over two decades, they consistently promoted their values and made their voices heard. The Sullivan Mine Public Liaison Committee (SMPLC) was formed in order to increase multi-stakeholder participation with respect to the closure of this, one of Canada?s largest mines. Consisting of individuals from among the public, environmental and government groups, the SMPLC oversaw closure plans, disseminated information, and created a dialogue through which all stakeholders could be heard (TECK, 2004). Since the early 1980s, discussions regarding the mine?s closure had focused on the creation of new industries that could support the 6,000 permanent residents of Kimberley after Sullivan?s closure (Ednie, 2006). With the support of Teck Cominco and the SMPLC, the community of Kimberley has built a ski hill, golf course and large residential and industrial areas, thus becoming a top tourist destination in the interior of British Columbia (Ednie, 2006). These industries have offset the economic decline felt by the closure of the mine, and today the town is the same size as it was pre-closure (Ednie, 2006). TECK Cominco also developed a union lead program to retrain its mine staff and/or provide them with opportunities to transfer to other mine sites (Ednie, 2006). Today, over a decade after the closure of the Sullivan Mine, post-closure remediation projects continue to be developped. SunMine, a development strategy launched by TECK, the Kimberley residents and EcoSmart, is a two-megawatt solar power-generating facility that will be built on 3,000Ha of non-reclaimable ?brown-sites,? collecting approximately 2,200 hours of sunlight per year (SunMine, 2013). The solar ?mine? will be built using existing power lines and transmission stations, and it will use the existing infrastructure to supply the town of Kimberley with power, economic diversification and a new clean industry (TECK, 2010). 2.4.2 Anaconda Copper Mine ? Butte, Montana ? United States The city of Butte is situated in the southwestern portion of Montana with a current population of 342,000 residents (National Association of Counties, 2013). This historic mining town was built around a hill containing rich mineral deposits of copper, silver, gold, magnesium, zinc, lead and molybdenum, henceforth the town?s title, ?Richest Hill on Earth? (Czehura, 2006). Towards the end of the 19th century when electricity became widespread and rail transportation connected Butte with the rest of the country and the world, the town?s industry expanded rapidly, and the Anaconda Copper Mine became the largest copper producer worldwide (M. P. Malone, 1983). The Anaconda Company further benefited from the First World War because copper was used in bullet shells, and at the time, Butte supplied the US with 30% of its copper demands as well as 15% of worldwide \t ? 18 demands (Jenkins & Lorengo, 2002). Butte became the most ?prosperous town in the United States,? and Anaconda the 4th largest company in the world (?Guide to Butte, Montana | Butte Today,? 2011). Anaconda became an international company in 1920, staking Chuquicamata, the largest copper deposit to date in Chile. However, production slowed as the 1930?s great economic depression reduced demands. The economic downturn in Butte was relieved briefly during Second World War, while Anaconda supplied the US with 51% of its copper needs (P. Malone, 1997). The industry continued to suffer after 1945, and new techniques were applied to ?improve efficiency? by reducing the need for labor-intensive underground mining, such as ?block-caving? and ?open-pit? mining. Even as the copper industry in Butte struggled to stay afloat, other factors pushed it into submission. The Chilean government nationalized the Chuquicamata Mine, crippling the Anaconda Company. At this time, fluctuating copper prices forced the closure of underground mining operations in Butte and Anaconda laid off over 3000 workers. The company was then bought by ARCO in 1976. Operations moved along slowly under ARCO, however piece-by-piece, the economic giant that had once existed in Butte kept disintegrating steadily. To counteract the loss of the mining industry, Butte has worked to diversify its economy through tourism, the service sector and the expansion of their healthcare industry. Butte now hosts some large festivals such as the Montana Folk Fest, Evel Knievel Days, St. Patricks Day and the Largest 4th of July parade in the state (?Butte Montana: Richest Hill on Earth,? 2013). Unemployment is not the only problem for the residents of Butte; a century of industrial scale mining has left the city and surrounding areas incredibly polluted. Arsenic and heavy metals such as lead, cadmium, zinc and copper have leached from historic mine sites and polluted the water table and the surrounding ecosystem. After periods of precipitation it was common to see the ?river run red? (?Guide to Butte, Montana | Butte Today,? 2011). This toxic runoff has collected in the Berkley Pitt, creating one of the ?most poisonous lakes in North America? (Roberts, 2008). A couple years after closure, the area became a Superfund2 Site and remediation efforts funded by ARCO were initiated to rectify the damage done by over a hundred years of mining. The severity of the pollution became extraordinarily apparent when a flock of 342 migrating snow geese landed in the lake in 1994, and all of them perished (Roberts, 2008). The Butte Superfund site includes the underground mine-shafts (3000 miles), 4 open pit mines and the surrounding watershed (26 miles of streams and wetlands). The heavy metals and toxic compounds leached from the mine sites have left the landscape with scarce biota. The contamination poses a major health risk to residents, as the ground water is unsafe for drinking and the soils, laden with arsenic and lead, are hazardous (United Sates Environmental Protection Agency, 2013). \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?2 A Superfund is an American federal government program that identifies places in the United States as ?abandoned hazardous waste sites,? identifies responsible parties, organizes remediation efforts, engages communities and insures their involvement, includes the state in the planning process, and establishes a long-term environmental protection plan (United Sates Environmental Protection Agency, 2013). \t ? 19 From 1988-2001 remediation efforts have included 1) the removal or capping of contaminated soils from waste dumps; 2) residential homes with contaminated yards and dirt basement floors were identified and cleaned up; 3) smelters were moved to designated disposal areas; 4) a storm water containment system was built to direct ground water to three separate sedimentation ponds before entering natural streams; 5) lime was added to treatment systems upstream of ponds; 6) railroads were deconstructed and contaminated soils removed, and; 7) air-cannons were set up to prevent water flow from landing in Berkley lake (Atlantic Richfield Company, 2011). Over the course of 125 years, from 1880 to 2005, the Butte mineral deposits have produced 9.6 million metric tons of copper, and millions more metric tons of other valuable minerals (Czehura, 2006). This large-scale mining operation has run its course, however small-scale low-grade mining is still an option in the area. Butte is successfully diversifying its economy and using its rich history to build a platform for tourism, along with other strong economic plans such as healthcare provision. The Superfund remediation efforts have shown positive results; water quality is improving and biota is being restored to healthy conditions. Heavy metals have been coming out of solution in water bodies and settling into sediments. The wild card remains arsenic, as it responds differently in different ecosystems. To date, the arsenic levels in the water have not been deemed as being safe enough for humans (drinking) consumption, however no negative effects have been monitored in aquatic organisms. 2.4.3 Joban Coal Mine - Iwaki, Japan The Joban Coal Mine was located in Iwaki city in the Fukushima area. The mine operated from 1870 to 1976. By 1944 it became the largest coal mine in Japan, employing 5,000 workers. Over time, the demand for coal as Japan?s main source of energy was replaced by foreign oil. As a consequence, in 1965, Joban Mine announced that it would reduce its workforce by 40%, which represented laying off over 2,000 employees. As coal consumption and production continued to decline, Joban Mine announced its ceasing of operations in 1971, and finally its closure in 1976. Many initiatives were implemented by the company in order to address the socio-economic consequences of closing the mine. Among these was the creation, in partnership with the union, of a re-employment office. Additionally, the government decided to create an industrial center in Iwaki. To do this, fourteen cities and nearby villages were united to establish a new industrial city, creating Japan largest city (Shimbun, 2012). In this particular situation, the company was committed to finding alternatives through which to reduce the impacts of the closure, and Joban leadership evaluated the idea of taking advantage of local natural hot springs to open a resort with a Hawaiian theme. One of the resort?s most important features is its hula-dancing troupe. With the company?s support, eighteen miners? wives and daughters were provided with dance training and by 1970, the resort was receiving 1.5 million visitors per year. By 2004 it was the tenth most popular theme park in Japan. Currently, 40 years after the inception of this project, 318 dancers have taken the \t ? 20 stage (Ono, 2012). The 2006 film Hula Girls was based on the story of the founding of the resort, and portrays the initial challenges involved in its establishment (Shimbun, 2012). In 2011 the resort was damaged by an earthquake and was forced to close. During the time it was closed, its hula girl troupe toured Japan, performing at earthquake refugee shelters and other venues. The resort reopened in early 2012 ?with increased structural support and bigger stage for its hula girls show? (Kyodo, 2012, p 2). 2.5 Industry Guidelines and Frameworks The mining sector and other industry-related institutions such as the World Bank ? IFC have, in recent years, focused on developing ideas, approaches and tools to demonstrate their commitment (as well as the will to support and enforce the commitment of their affiliates). They have made this approach their focus in order to ensure that society at large, and in particular, local communities and governments affected by industry projects are properly considered when the development of mining projects take place. This section aims to summarize key voluntary and enforced industry guidelines and frameworks at the global level. In this regard, the following documents are presented and discussed: Seven Questions to Sustainability, ICMM 10 Principle, ICMM Community Development Toolkit, ICMM Planning for Integrated Mine Closure, Towards Sustainable Mining and Equator Principles. 2.5.1 Seven Questions to Sustainability (7Qs) Seven Questions to Sustainability (7QS) was developed with the goal of applying sustainability concepts and ideas in a practical fashion in consideration of the realities faced by mine managers, mill superintendents, community leaders and other individuals and groups of interest (IISD, 2002). According to MMSD, Seven Questions to Sustainability can be adopted as a guideline for auditing any stage of mining operations and assessing the company?s compatibility with sustainability concepts. Its main goal is to assess the contributions of mining activities to sustainability over the long term; this involves developing an understanding of how current activities can be improved in order to align with sustainability concepts and facilitate continual learning and improvement. Two main objectives were outlined (IISD, 2002, p.1): 1) to develop a set of practical principles, criteria and/or indicators that could be used to guide or test the exploration design, operation, closure, post-closure and performance monitoring of individual operations, existing or proposed, in terms of their compatibility with concepts of sustainability; and 2) to suggest approaches or strategies for effectively implementing such a test/guideline. The initiative led to the design of a framework to guide the assessment of whether or not a project or operation?s net contribution to sustainability is positive over the long term. For each of seven components, a question is posed as a means of assessing whether the net contribution to sustainability over the long term of a mining/mineral project or operation will be positive or negative (IISD, 2002, p.1). \t ? 21 Table 2 - Seven Questions to Sustainability Framework Seven Questions to Sustainability 1. Engagement: are engagement processes in place and working effectively? 2. People (employees and residents): Will the well-being of the people be maintained or improved? (Responsibility of various parties in this task) 3. Environment: is the integrity of the environment assured over the long term? (Based on traditional environmental impact assessment, ISO14000 reporting tools, etc.) 4. Economy: is the economic viability of the project assured; will the community and broader economy be better off as a result? (Addresses the economic conditions of the company, adjacent community and surrounding region). 5. Traditional and non-market activities: are traditional and non-market activities in the community and surrounding area accounted for in a way that is acceptable to the local population? 6. Institutional arrangements and governance: are the rules, incentives, programs and capacities in place to address project or operational consequences? 7. Overall integrated assessment and continuous learning: Source: IISD, 2002, p.1 2.5.2 ICMM 10 Principles The ICMM established a set of 10 principles of sustainable development which all signatory companies and other ICMM members must voluntarily agree to implement and then measure their performance against. The commitments to the 10 principles that resulted from the identification of issues related to the industry at the Mining, Minerals and Sustainable Development Project therefore include the concepts of sustainability and address the necessity of including them at all levels of the organization and in all aspects of mining operations. ICMM 10 Principles are based on the issues identified in the Mining, Minerals and Sustainable Development project and were benchmarked against leading international standards, including the Rio Declaration, the Global Reporting Initiative, the Global Compact, OECD Guidelines on Multinational Enterprises, World Bank Operational Guidelines, OECD Convention on Combating Bribery, ILO Conventions 98, 169, 176, and the Voluntary Principles on Security and Human Rights (ICMM, 2003). Table 3 that follows lists the ICMM 10 Principles. Table 3 ? ICMM 10 Principles Principle 01 Implement and maintain ethical business practices and sound systems of corporate governance Principle 02 Integrate sustainable development considerations within the corporate decision-making process Principle 03 Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities Principle 04 Implement risk management strategies based on valid data and sound science Principle 05 Seek continual improvement of our health and safety performance Principle 06 Seek continual improvement of our environmental performance Principle 07 Contribute to conservation of biodiversity and integrated approaches to land use planning Principle 08 Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products Principle 09 Contribute to the social, economic and institutional development of the communities in which we operate Principle 10 Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders Source: ICMM, 2003 \t ? 22 2.5.3 ICMM Community Development (CD) Toolkit The International Council on Minerals and Metals (ICMM) has several publications that address aspects related to sustainability issues in the mineral industry. The Community Development (CD) Toolkit was published in 2008 and updated in 2012. The toolkit ?aims to improve opportunities for the sustainable development of communities around mining and metals operations and regions during all phases of the mining cycle? (ICMM Toolkit, 2012). It continues by saying that ?mining can be a catalyst for positive economic and social impacts in areas with limited opportunities? (ICMM Toolkit, 2012). Sustainability in community development means that actions must be ?community planned and driven, not imposed by donors or companies? (ICMM Toolkit, 2012). In the CD Toolkit, community development tools are classified in the following five categories (ICMM Toolkit, 2012, p. 38): Within each category a group of specific tools have then been developed. 1 Planning: Allow for planning of needed human and financial resources. CD Tools #: 6) Strategic Planning Framework; 7) Community Mapping; 8) Institutional Analysis; 9) Development Opportunity Ranking; 10) Financial Valuation. 2 Assessment: Develop understanding of potential risks and impacts. CD Tools #: 11) Social Baseline Study; 12) Social Impacts and Opportunities Assessment; 13) Competencies Assessment. 3 Management: Aim to mitigate negative impacts and maximize beneficial impacts. CD Tools #: 14) Community Development Agreements; 15) Management Systems; 16) Community Action Plans; 17) Local Economic Investment; 18) Resettlement Planning. 4 Monitoring and Evaluation: Aim to measure progress of applied tools. CD Tools #: 19) Indicator Development and 20) Goal Attaining Scaling. 5 Relationships: The relationship tools are key since the other activities and tools rest on them. CD Tools #: 1) Stakeholder Identification; 2) Stakeholder Analysis; 3) Consultation Matrix; 4) Partnership Assessment and 5) Grievance Mechanism. The role of the mining company is to facilitate and support the above processes. Sustainable community development is achieved when ?the community feels it can manage well? without the company. 2.5.4 ICMM Planning for Integrated Mine Closure This document aims to assist mining companies, specifically site practitioners and related groups to ?make sound decisions based on a consideration of closure aspects in a holistic manner? (ICMM, 2008, p.1). It highlights the importance of considering closure from as early on as during the exploration phase. In the Mine Closure Toolkit, effective closure planning involves: 1. Early incorporation of planning for closure 2. Incorporating the goals of different stakeholders 3. ?Acting to meet the goals? 4. Minimizing liability and maximizing benefits \t ? 23 5. Ensuring that other risks are not created through the mitigation of original risks The Planning for Integrated Mine Closure Toolkit refers to distinct frameworks and guidelines such as the Environmental Excellence in Exploration (E3) and ICMM Community Development Toolkit. Table 4 - ICMM Planning for Integrated Mine Closure Toolkit MCT1: Stakeholder engagement ? Environmental Excellence in Exploration (E3), the Prospectors and Developers Association of Canada (2007) MCT2: Community Development Toolkit, ICMM 2006 MCT3: Company/community interactions to support integrated closure planning MCT4: Risk/opportunity assessment and planning MCT5: Knowledge platform mapping MCT6: Typical headings for contextual information in a conceptual closure plan MCT7: Goal setting MCT8: Brainstorming support table for social goal setting (Supports T7) MCT9: Brainstorming support table for environmental goal setting (Supports T7) MCT10: Cost risk assessment for closure MCT11: Change management worksheet MCT12: The domain model MCT13: Biodiversity management Source: ICMM, 2008 2.5.5 Towards Sustainable Mining (TSM) In 2004, the Mining Association of Canada (MAC) established a set of principles with the aim of enhancing the industry?s reputation by improving its performance. These principles are mandatory across the industry and all MAC members are expected to comply with them. TSM helps the industry sustain its position as a leading economic contributor in Canada while protecting the environment and remaining responsive to Canadians. It helps the industry maintain its social license to operate. It helps the industry improve its performance by aligning mining activity with the priorities and values of its communities of interest. In essence, it helps the industry operate in a proactive, socially responsible way (Mining Association Canada, 2013 p. 1). TSM has established a set of Performance Measures and Protocols on Crisis Management, Energy and GHG Emissions Management, Tailings Management, Biodiversity Conservation Management and Health & Safety, Aboriginal Relations & Community Outreach, and Mine Closure. For this study, the Mine Closure Framework was analyzed. The Aboriginal Relations & Community Outreach protocol has established four performance indicators: PF 1. Community of Interest Identification PF 2. Effective COI Engagement and Dialogue PF 3. COI Response Mechanism PF 4. Reporting Although TSM has established a Mine Closure Framework, the performance indicators are still under development. \t ? 24 2.5.6 The Equator Principles The Equator Principles were established by the International Finance Corporation (IFC) to ensure that projects financed by institution were socially and environmentally responsible, and that negative impacts could be avoided, mitigated and compensated. Unlike other voluntary guidelines, the Equator Principles consist of a mandatory requirement that any project proponent which wants to access money (over $10 million) from financial institutions, is forced to comply with. The 10 Equator Principles are: Principle 1: Review and Categorization Principle 2: Social and Environmental Assessment Principle 3: Applicable Social and Environmental Standards Principle 4: Action Plan and Management System Principle 5: Consultation and Disclosure Principle 7: Independent Review Principle 8: Covenants Principle 9: Independent Monitoring and Reporting Principle 10: EPFI3 Reporting (Creating Public Report) Additionally, in order to be more specific, the IFC has also published a total of eight performance standards where Performance Standard #1 refers to ?Assessment and Management of Environmental and Social Risks.? Both IFC principles and the content of Performance Standard #1 are analyzed. Performance Standard #1 establishes the importance of effective Environmental and Social Management Systems (ESMS) as a dynamic and continuous process that involves all stakeholders in the project. The approach is the one used in business management processes: ?plan, do, check and act.? The objectives of Performance Standard #1 are: ? To identify and assess environmental and social risks/impacts ? To adopt mitigation activities such as prevention, minimizing, and compensation ? To promote improved environmental and social performance through the effective use of management systems ? To ensure that grievance mechanisms are in place ? To promote and provide engagement with affected communities in all stages of the project and to ensure access and disclosure of information \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?3 Equator Principles Financial Institutions \t ? 25 Some of the above-analyzed documents provide only general guidance and broad concepts, and thus readers/users must depend on their own interpretations to work out how these concepts could be translated into practice. Such a situation can lead to a short-sighted approach, or even misinterpretation. Despite the fact that each one of the industry guidelines and frameworks summarized above address elements regarding the challenges existing or emerging from industry-related projects, with the exception of the ICMM Planning for Integrated Closure toolkit, these documents were not designed to specifically tackle the implications of mine closure. With this in mind, developing a specific framework to address the socio-economic dimensions of mine closure becomes opportune and is deemed relevant. The review of these industry guidelines and frameworks has functioned to support the discussion on, and the development of, the Socio-Economic Mine Closure Framework presented in the next section. Furthermore, in Chapter 4 a lengthy analysis of each industry guideline as well as the proposed Socio-Economic Mine Closure Framework is made. 2.6 Proposed Socio-Economic Mine Closure Framework An ounce of prevention is worth a pound of cure. Benjamin Franklin One of the deficiencies of industry-related guidelines in dealing with the socio-economic consequences of the mine closure, as stated earlier, relates to the importance of management and leadership. In fact ?closure today is less of a technical challenge and more of a management challenge? (ICMM, 2008, p.49). Additionally, initiatives for building capacity lack integration and tend to be limited, as in the case of education, to an approach that focuses on the development of professional and technical skills instead of on the promotion of a well-rounded education. Aggravating the situation, short-sighted philanthropic initiatives and paternalistic attitudes seem to be ingrained in the cultures of both companies and communities. Such initiatives can have positive impacts over the short-term, but when not adequately planned for and implemented, can lead to a context that produces dependency and the lack of initiative and creativity - all of which impact negatively on the community, and all of which are aggravated when a mine ceases operations. With this context in mind, socio-economic mine closure refers to the process of planning and engaging key groups, namely local communities and governments, to develop a long term mine closure approach that would result in maintaining and improving the wellbeing of both individuals and the mining community. Acknowledging that mining projects vary in terms of the different phases in their mine lives, the above-mentioned definition might not be realistic since, in many cases, actions towards mitigation would need to take place. In this context, socio-economic mine closure involves planning and developing a mine closure approach to avoid and/or mitigate impacts brought on by mining operations with the pursuit of maintaining and improving the wellbeing of the mining community as well as the individuals living within it. \t ? 26 To successfully implement Socio-Economic Mine Closure, more than good intentions are required. Such a closure demands refined management and leadership skills and needs to be implemented as an integrated, comprehensive and multidimensional process. Taking a rightful attitude towards the complexity of the closure is also essential for its success. Rather than choosing to perceive Socio-Economic Mine Closure as a deadline-driven problem that has to be solved, it should be approached as a matter that has to be continuously attended to, and the role and influence of the many sets of stakeholders affected by the mine closure has to be carefully taken into account. The following section outlines a conceptual model of ten elements for Socio-Economic Mine Closure (herein known as 10 Ps Framework) that takes into account management and leadership tools and principles. Each one of the SEMC elements is in turn divided into different sub-elements. Element in this context, as found in the Oxford Dictionary, element is ?a component or constituent part of a whole? (Illustrated Oxford Dictionary, 2003, p. 263). Furthermore, element is also defined as ?an essential or characteristic part of something abstract? (Oxford Online Dictionary, 2013). The proposed model is to be seen as a dynamic process and is not meant to be approached and implemented in a linear fashion, as many activities take place in parallel. In addition, there exists site specific aspects that will likely influence the order, pace and importance of the implementation of the elements constituents of the framework. Table 5 - Socio-Economic Mine Closure Framework (The 10 Ps Framework) Elements Sub-Elements Elements Sub-Elements 1. Policy Corporate Commitment 2. Presence Presence in the field Governance Stakeholder Analysis 3. Participation Mobilization 4. Planning Asset Mapping Socio-Economic Impact Assessment Envisioning Education / Capacity Building Project Design Empowerment Performance Indicators Community Engagement Resources Partnerships 5. Performance Implementation 6. Promotion Sharing / Communication Monitoring Evaluation Towards Continuous Improvement Consolidation 7. Perseverance Overcoming Resistance and Inertia 8. Patience Allowing Time for Effective Change Reinforcing Quality of Participation 9. Passion Individual Passion / Motivation 10. Personality Trust, Respect and Empathy The idea for developing such Framework is a result of extensive literature review, attending classes and events in the UBC mining department and other departments such as Law and Anthropology. Participating in academic and industry related events and conferences were also relevant. \t ? 27 In addition to that a 3-day visit to Puerto San Julian in Argentina in 2010, where meetings with Cerro Vanguardia representatives took place, also contributed in shaping the ideas to the development of the SEMC Framework. However the most influential event that inspired the development of the 10 Ps Framework was the opportunity to participate in the ?The Multi-Perspective Collaborative Corporate Social Responsibility Pilot Case Study Project?, in which Guelph Professor Dr. Ben Bradshaw led the Brazilian portion of the study. In this study that aimed to map CSR initiatives implemented by a Canadian mining company the researcher has had a unique opportunity to see first hand some of the many challenges experienced by mining companies, local government and community. Issues such as meaningful community participation, the role of company community liaisons, the nature and breadth of company?s CSR initiatives and the role and expectation of local governments were some of the aspects that caught my attention while participating as a co-investigator in that project. 2.6.1 Policy 2.6.1.1 Corporate Commitment One of the most fundamental steps in establishing a framework for a successful social closure [or any other decision that leads to substantial organization change] is the commitment to the idea, at the corporate level, that the change is necessary. To this end, translating this commitment into organizational values or principles is key to ensuring these principles will be passed down through to the whole organization. Furthermore, strategies should be designed and implemented to support and pursue these new values or principles (Drucker, 2001). Considering the elements in the SEMC framework should be at the core of mine planning, operation and closure. 2.6.1.2 Governance On the policy level, clear rules and procedures must be in place to provide guidance on how company representatives should behave and conduct business. This takes place through the implementation of a strong system of governance. Governance, in general, refers to a set of rules, commands and controlled decision-making procedures (Peters, 1996) that address possible conflicts of interest that can emerge within organizations (Daily et al., 2003). With this definition in mind, Chaloping-March (2008) suggests that mining closure should be adopted as a governance issue. Along the same lines, recent academic and empirical debate have taken place regarding the ways in which corporate governance can keep close ties with, and support community development (Benn & Dunphy, 2007; Roberts and Veiga, 2000; Veiga et. al., 2001). As such, governance needs to be restructured at the government, corporate and community levels if CSR and other initiatives are to be placed in alignment with sustainable development (Benn & Dunphy, 2007). Towards this end, some approaches have suggested that the traditional concept of the triple legged stool of sustainability should evolve to integrate governance as a forth leg (Schloss et.al, 2007; Teriman, 2009). \t ? 28 As pointed out earlier, governance is also required at the government level to ensure a transparent and responsible environment. It is noteworthy to point out that some sort of governance principles are also fundamental at the community level, allowing for better communication, transparency and accountability, thus enabling communities to establish a ?framework of law and an organizational infrastructure through which representative bodies at the community level can inform themselves on issues of the day and then can transmit their views or decision both to other communities and to higher authorities? (Holmberg, 1992, p.52). 2.6.2. Presence 2.6.2.1 Presence in the Field In order to promote a successful social closure, mining companies need to have a team on the ground that is culturally and historically familiar with the local reality. The number of professionals from the company in a community is also very important. A shortage of people can slow the communication process, creating frustration that could, among other things, prevent participation and create misunderstandings. With regard to the professional capability of the people on the ground, it cannot be evaluated by the number of tasks checked off on a to-do list. Rather, quality needs to be evaluated based on the nature of relationships, established bonds, and how immersed company representatives are in the community. In order to build strong and trustful relationships with all key stakeholders, the education, training, experiences and background of the company?s representatives need to be taken into account. These factors can be decisive in facilitating or hampering dialogue as well as successful relationships with local community members. Furthermore, the ideal person to be placed in the field, and who would hold the position of interacting with the community on behalf of the company would be someone who is familiar with the context, preferably a long-term local resident or native who existing has strong ties to the community. Besides holding a deep understanding of rooted social, cultural and historical characteristics, such a company representative would be able to build trust and give credibility to the company since they would be better able to properly understand, represent and translate the community?s need and aspirations. 2.6.2.2 Stakeholder Mapping Another sub-element of presence in the SEMC framework refers to Stakeholder Mapping - a well-known technique adopted by mining companies to understand the players, their interests and power of influence in the local context. This allows for a more holistic understanding of all stakeholders and their roles (ICMM, 2008). The nature, frequency and strength of the relationship between the local stakeholders can also be captured and monitored in a more detailed form of stakeholder mapping to ensure the mining company is aware of that which is taking place on the ground. Although apparently evident, when considering mapping stakeholders, it is of great value to understand the interests and clout of the key individuals \t ? 29 within a community. It is important to take into consideration that stakeholder maps are more accurate with the input of those living in or close to the community members that are living in the communities. The local community is very often made up of several distinct groups, neighborhoods or associations, and despite the fact that this can play a significant role, the subtle differences between such groups are frequently overlooked. 2.6.3. Participation The overall objective of participation is to create a healthy, democratic and welcoming environment where community members and other stakeholders are able to voice their ideas freely and take part in decision making. ?Participation refers to the extent to which stakeholders can influence development by contributing to project design, influencing public choices, and holding public [and private] institutions accountable for the goods and services they are bound to provide? (Dani, 2003, p.14). Key elements to enhancing participation include mobilization, empowerment, education and community engagement. 2.6.3.1 Mobilization Mobilization of the community is significant throughout the life cycle of the mine and becomes particularly important if the mine is in operation and does not yet have a sound closure plan in place ? a common situation (ICMM, 2008) for companies, especially if they have been in operation for many years. Mobilization is fundamental for the pursuit of change, and in the context of community, can be understood as a way to ?organize and encourage a group of people to take collective action in pursuit of a particular objective? (Oxford, 2011). Creating a clear understanding that the change is crucial and must take place is essential for mobilization. In his model for organizational change, Kotter (1996, 2002) places Sense of Urgency as the first step for mobilizing people and generating organizational change. This consists of a process of inviting and allowing people to understand that the current situation is threatening to the status quo and that the local quality of life could decrease if no action is taken. This sense of urgency raises the perception of a need for immediate change, energizing people and giving them hope that when objectives are reached, the organization and its members will be in a better position. The sense of urgency also sheds light on the tension between current discomfort with the present situation and attraction to the opportunity of a new environment, which in turn leads to a greater desire for change. Contrarily, complacency is seen as the antithesis to urgency. The greatest challenge for any type of organizational structure is to move people out from their comfort zone to a place where they can embrace change. 2.6.3.2 Education / Capacity Building In the context of a community, education goes beyond mastering a profession or becoming a skilled worker (Chouinard, 2009, Roberts and Veiga, 2000). Education, according to this broad perspective, \t ? 30 involves a process of getting more knowledgeable about oneself and one?s immediate surroundings and gaining awareness of all the issues, challenges and opportunities that present at the micro and macro levels (Freire, 1987). This opens up opportunities for making knowledgeable decisions that can positively affect the development of individuals as well as the society in which they are embedded (Freire, 1968). Mining companies and other organizations understand the relevance and the role of using education as a means to improve a community?s quality of life. However in many cases the approach is short-sighted and remains on the realm of developing technical skills, or learning a trade or an art form. Recognizably, technical learning and the development of a profession are important, however if it is the only form of learning employed, it can result in indoctrination and lead to dependence rather than free the individual to think for him/herself. In support of this argument, while working with Northern communities in British Columbia (Canada), Chouinard (2009) found that: 1. The objects of learning for education programs must be valuable, useful, and meaningful to the intended learners. 2. The process to develop programs should involve cycles of action and reflection, input from the intended learners. 3. Assimilation of information occurs through the experience of knowledge that is presented in culturally based frames informed by particular stories, experiences, teachers, places, values, histories, and materials (p. 106). ?Community education is thus to be viewed as means of assisting communities by bringing matters to the community?s attention and preparing it for knowledgeable and empowered action? (Homan, 1999, p. 22). 2.6.3.3 Empowerment Working with communities involves creating a friendly and honest space in which people are able to voice their ideas and opinions and develop their potential (Homan, 1999). From an organizational point of view, companies should strive to assist local community members to develop ?stronger beliefs in their own personal power and the power of his/her group? (Homan, 1999, p. 9). Empowerment helps build confidence and makes people realize that their input and participation are vital, and that it contributes to a better future for their community. Empowerment is the process whereby individuals and groups acquire power to influence issues that affect them and their communities. In other words, it provides people with a ?greater sense of worth and personal control, they recognize that they can participate with others to influence conditions that affect them? (Homan, 1999, p. 9). 2.6.3.4 Community Engagement Education is the gateway to empowerment, which in turn leads to active and meaningful community engagement. Community engagement is defined by the International Association of Public Participation \t ? 31 as ?any process that involves the public in problem-solving or decision making and uses the public input to make more informed decisions? (IAPP, 2011). For community engagement to be truly meaningful, building trust, informing, consulting with, collaborating with, and empowering the community are vital (IAPP, 2011). The following Figure 2 introduces a community engagement continuum that outlines the roles of company and community and different levels of engagement. Figure 2 - Community Engagement Continuum COMMUNITY ENGAGEMENT CONTINUUM Level of Engagement Inform Consult Participate Collaborate Empower Company?s Role To provide the local citizens (and local organizations) with clear information to assist them to understand and present the opportunities challenges To ask and listen to the community on specific issues; obtain feedback on alternatives and solutions. To include the community in the planning and implementation of projects; To ask the community opinion on how they would approach a project. To work together with the community to find solutions; To partner with the public in the development of alternatives, implementation of projects and the identification of the preferred solutions. To support the development of skills of community members to enable them to play an active role in the decisions that affect their communities; To co-authorize the final decisions with the local community members. Community?s Role Passive Reactive Participative Co-ownership Leadership Source: Adapted from Infrastructure Planning and Natural Resources (IPlan) (www.iplan.nsw.gov.au) Lima (2002) calls attention that ? public involvement in mining-related decision-making and management processes is an important factor in enhancing the legitimacy of the industry, in developing public trust in the ability and desire of mining companies to conduct their business in an environmentally responsible manner and in improving the quality of the decisions being made? (p. 35) Furthermore, community engagement is not equivalent to stakeholder consultation (Chaloping-March, 2008). Community engagement, in the context of the mining industry, involves the process of building a collaborative relationship with local people and organizations that will be/are affected by the company?s operations and which engage a wide range of community members, focusing on long-term outcomes (Community Engagement and Development, 2006). It involves the creation of a welcoming environment where community members feel comfortable in participating and sharing ideas and where they are convinced that their contribution matters. As such, it does not simply involve physical presence at LEVEL OF COMMUNITY INFLUENCING DECISIONS \t ? 32 community meetings. Contrarily, it relates to real involvement in community issues, understanding their complexity and being willing to do his/her part to contribute to the enhancement of the community?s overall quality of life. A proper community engagement needs to ensure that minority groups within the communities (ex. aboriginals, the elderly and women) are properly engaged and active participants. One of the groups, whose voice is often not heard, especially in male oriented societies, is that of women. In a 2003 conference on Women in Mining held in Papua New Guinea, a survey asking about the negative and positive impacts of mining on women was distributed amongst the conference delegates, and ?over 67% of the respondents identified violence alcoholism, prostitution, sexual abuse and social /family disruption as the most harmful negative impacts? (Strongman, 2003 p.1). About 40% identified cultural/tradition degradation, health deterioration and lack of women?s representatives in decision making. The social-economic consequences of a mine closure are also strongly felt by women and their families, and any closure strategy must ensure that women participate at every stage of the closure plan. To reiterate, engaging with the community involves more than simply consulting or eliciting feedback on certain matters. In the community engagement process, people are seen as active participants and are educated and knowledgeable enough to influence the directions and the future of their communities. 2.6.3.5 Partnerships In addition to fostering community and stakeholder engagement, partnerships can function as a mechanism where companies and other stakeholders can maximize development of local communities. For instance ?Participatory capacity-building activities can make communities to make informed choices and to learn to take control of their development needs, and are therefore an effective way of reducing dependence on mining operations? (Esteves & Barclay, 2011, p.189; Labonne, 2002) Esteves and Barclay (2011) point out that partnerships can provide guidance to mining company managers on ?how to maximise development opportunities for communities surrounding mine operations by successful delivery of social projects, appropriate distribution of funds and the establishment of partnerships/alliances with outside agencies? (p. 192). Considering this, partnerships can be seen as an important mechanism for building constructive relationships between mining companies and local communities; furthermore it can foster community development (Esteves & Barclay, 2011). Considering a more pragmatic perspective ?Partnering enables companies to gain access to not-for-profit competencies, such as legitimacy, awareness of social forces, distinct networks, and specialized technical expertise? (Esteves & Barclay, 2011 p. 192). \t ? 33 2.6.4. Planning Planning for a mine closure is an ongoing process that starts with the exploration phase and becomes increasingly more concrete and detailed as the project advances towards development (ICMM, 2008). Planning for Social Mine Closure goes beyond adequate financing, concrete targets, sound evaluation and monitoring (Chaloping-March, 2008 p. 312). Since technology, the community?s expectations, and legal and political frameworks can change, planning for closure should also incorporate the elements of flexibility and dynamism into its process. Amey (1986) defines planning as the conscious design of a desired future and the subsequent creation of effective ways of bringing it about. Similarly, a plan is defined by the Oxford Dictionary as a ?detailed proposal for doing or achieving something? (Oxford, 2011). In the context of business administration, planning involves the process of assessing a current situation and defining actions to be undertaken in order to maintain or change that which was assessed. Planning also takes into consideration previous experiences as parameters to assist in reaching the pre-established goals (Chiavenato, 2001). Within the context of community development, planning exists as a means of assessing the current situation of a community, and defining strategies and implementing actions that will contribute to the improvement in the quality of life for all community members. 2.6.4.1 Asset Mapping Mapping assets involves a learning process for communities (Fuller et al., 2001) as well as companies. Assets mapping has been adopted by some companies in the extractive sector as a technique to assist in decision-making and community development. Fuller et al. (2001) point out that a community?s assets are divided into 5 categories: natural, built, social, economic and service. Additionally, after mapping each category, the community will rank their assets and will justify their reasons for the chosen ranking. In this context, assets may be persons, physical structures, natural resources, institutions, businesses, or informal organizations (Berkowitz and Wadud, 2003). One of the basics steps in the community planning process involves inventorying and assessing the social and cultural, natural, physical, economic assets as well as the services available in a community. This is an iterative process that opens up opportunity for engagement and meaningful participation. It is also a learning process that will provide mining companies with a better understanding of what and why both physical and immaterial elements are seen by the community as assets. At the end of the asset mapping process, a clear picture of the community situation emerges as well as community?s natural ability or inclination, providing valuable information for building the 2.6.4.3 Vision and the 2.6.4.4 Projects, the two last sub-elements of the planning process of the SEMC Framework. \t ? 34 2.6.4.2 Socio Economic Impact Assessment ? SEIA Despite similarities, each mine community is unique and presents different needs and desires. Socio-Economic Impact Assessment (SEIA) tools can provide a clearer understanding of these needs and desires. It also allows for an improved understanding of the social and economic implications of mining activities, allowing for superior implementation of planning, decision-making and management (Joyce and MacFarlane, 2001; Kemp et al., 2008). SEIA also functions as an engagement mechanism since, through the process, a very close interaction with the community is established. Warhust et al. (2000) point out that without conducting such assessment from the outset, the potential impacts of closure prior to operation will not be understood by relevant stakeholders. This could dramatically affect whether construction proceeds, how it proceeds, and the mitigation and compensation mechanisms to be adopted when production is achieved (p.92). Social impact assessment can also provide information that could be used in community development and which could contribute to the sustainability (Joyce and MacFarlane, 2001) of communities after closure. In this regard Lima (2002) notes: ?Closure planning must integrate all aspects of sustainable development? (p. 44), which includes environmental, economic and social dimensions. 2.6.4.3 Vision Vision, a key element in the design phase refers to the process of envisioning the ideal community. This involves a collaborative process that takes into consideration all the knowledge gathered in the asset mapping process. Vision results from the articulation of the dreams and hopes of the community, and will become a guiding framework for the overall planning. An organization?s vision sets out future aspirations (Kotter, 1996). A clear vision can help people understand their role in the process of change. It also serves as a motivational tool since people know where they are going and which steps needs to be implemented / pursued in order to get closer to reaching the vision (Kotter, 1996). The vision should be clear, simple, and inspiring. It should also be something that the majority of people in the community aspire to and believe in. Thus, designing the vision must involve a collective process for which community members feel ownership and which they will strive to make happen (Kotter and Cohen, 2002). 2.6.4.4 Projects Subsequent to documenting the community?s (4.1) assets (built, natural, social, economic and services), ranking them in importance, and collectively establishing the community?s vision (4.3), the next natural step is to conceptualize projects that will be in alignment with the vision and the community?s natural ability or inclination. \t ? 35 A key task involves finding the balance between short and long-term projects. Kotter (1996; Kotter and Cohen, 2002) highlight the importance of having ?short-term wins.? Short-term wins are projects that produce immediate results. They are key to establishing a sense of accomplishment and strengthening the team?s morale, which will be the propelling force to sustaining peoples? energy for pursuing the projects that have a lengthy turnaround time. The SEMC Framework is conceived to be comprehensive, democratic and transparent, and as a consequence, the community will be the key decision maker regarding choices about the nature and priority of the projects to be implemented. 2.6.4.5 Indicators Indicators consist of a set of rules for gathering and organizing data that can be assigned meaning (Hoernig and Seasons, 2005). There are several functions for indicators such as description, simplification, measurement, trend identification, clarification, communication and catalyst for action (Hoernig and Seasons, 2005). In relation to the SEMC Framework, indicators are adopted to provide feedback on the planning process as well as to allow for a measurement of the performance (5) of the actions implemented. Indicators can also enhance decision-making at the policy-making and implementation levels (Hoernig and Seasons, 2005). 2.6.4.6 Resources Allocating resources to ensure the implementation and monitoring of any effort to address the socio-economic impacts of the closure is fundamental. Therefore, it is highly recommended to save a portion of the revenues from mineral production, or to put into place an appropriate funding mechanism, so as to guarantee that the closure efforts are properly funded (MMSD, 2002). Reclamation bonds or financial guarantees are often included in mining regulations and guidelines to cope with the environmental aspects of mine closure (Macdonald et al., 2006). As a result of increasing awareness and pressure from governments, communities, NGOs and from the general society, it is very likely that in the near future, legal frameworks will ensure that similar guarantees will be enforced so that the social and economic impacts of closure can be properly addressed. In this regard, Warhurst recommends that social ?closure bonds should be required by regulation to cover social as well as environmental issues? (2000, p.90). There is a trend indicating that the main source of funds will come primarily from mining companies; however government should be playing an active role and should be involved in both the funding and management of the efforts to address some aspects of the social impacts of closure. There are three reasons to support this argument: a) it is part of government?s mandate to promote the well-being of its people; b) in many countries such as Brazil, specific recommendations have been made to use the royalty moneys generated by the mineral extractive industry towards minimizing / mitigating impacts of \t ? 36 mining activities; c) by bringing governments into play, responsibility and sense of ownership is enhanced. On a positive note, ?governments are now coming to realize that they have the most direct responsibility for defining and ensuring comprehensive mine closure within the broader context of the issues of social/economic equality and sustainable development? (Clark and Clark, 1999, p. 67). This recognition has expanded government responsibilities and needed actions. In relation to funding, there are many alternatives and models that can maximize the social and economic outcomes for communities. Apparently, the trend within mining companies is towards the creation and support of foundations/NGOs that would be responsible for distributing the investments. Yet, with regard to the provision of funds for community projects, there are good examples of micro-financing initiatives that have been adopted as mechanisms to foster community economic development, that by supporting local economic diversification and community development help to generate income, empower people and alleviate poverty (Yunus, 1999, Bateman, 2010). However there are critics such as Bateman (2010) that argues that microfinance initiatives perpetuate poverty instead of alleviating it. To Batteman, despite some minor benefits ?microfinance is largely antagonistic to sustainable economic and social development, and so also to sustainable poverty reduction? (2010, p.1). An appropriate funding mechanism can enhance responsibility and a sense of ownership within the community. It can further build trust and strengthen the relationship between companies and communities. Most importantly, it can assist the community in getting closer to attaining the vision that will ultimately enhance its members? quality of life. 2.6.5. Performance Performance refers to the quality of the implementation of that which was planned, as well as to leading continuous monitoring using previously established indicators (4.5). These indicators provide the necessary information for evaluating the project in order to ensure that the outcomes are in alignment with the established goals and vision. 2.6.5.1 Implementation Implementation comprises of developing the confirmed plan by making use of available resources (financial and technical) to implement the projects which had been established in the planning phase. 2.6.5.2 Monitoring Monitoring refers to the implementation of regular and systematic observation and measurement-taking with the aim of identifying trends and patterns (Hoernig and Seasons, 2005). Monitoring assists in the process of compiling and collecting data to be used in future planning. It also provides key information which can be used to perfect and enhance performance. Finally, monitoring also facilitates the assembly of information that can subsequently be used in communications with, and to provide feedback to the interested parties who are either directly or indirectly involved with a project. \t ? 37 2.6.5.3 Evaluation Towards Continuous Improvement Evaluation consists of the interpretation of the results which had previously been monitored (Hoernig and Seasons, 2005). It involves the task of generating knowledge from the data which was gathered in the monitoring stage. The evaluation process assists in answering fundamental questions such as: were the desired outcomes achieved? Do the results justify the project inputs? In addition to providing information through which to evaluate the results, this phase also delivers the feedback and necessary data to use for making continuous improvements. 2.6.6. Promotion In the context of mine closure, promotion refers to the task of communicating both within the company and to stakeholders about the initiatives, the status and the outcomes of community projects. Within the framework of socio-economic mine closure, an efficient communication system is vital to ensuring that all interested parties are informed of the efforts, changes and results that are taking place both in the company and the community. It also facilitates the opportunity to consolidate and make sure that the changes and new procedures and methods are incorporated into the company?s and community?s cultures (Kotter, 2008). 2.6.6.1 Sharing / Communication It is vital that the communication vehicles and the content of the information communicated are appropriate for its targeted audience. For these reasons it is crucial that communication takes into account cultural, social and economic elements. As noted by Lima (2002) in his Framework on Mine Closure, a core principle regarding stakeholder consultation and involvement is that: ?a targeted communication strategy should reflect the needs of the stakeholders groups? (p.85). In the context of the interactions of mining companies and their local communities, positive results were produced when various communication channels such as information centres, phone lines, newsletters, pamphlets, brochures etc., were adopted (Martin and Wall, 2011). In the context of the proposed Socio-Economic Mine Closure Framework, communication takes place during every phase of the process, and it holds the key to keeping people informed about the organization?s policies, vision, strategy, plans and results. This in addition to helping an organization share its best practices and lessons learned, good communication helps with ?mainstream social performance across the company? (Guerrero and Davidson, 2011, p 4). Communicating initial results (short term wins) helps an organization gain momentum and to affirm that the initial efforts and commitment have paid off. In addition to motivating those already involved in the process, it also encourages ?slow-buyers? and those who are more skeptical and cynical that the project is worthy of their effort and involvement (Homan, 1999, Kotter, 1996). \t ? 38 2.6.6.2 Consolidation Another key feature of promotion, as a sub-element in the Socio-Economic Mine Closure Framework, is the consolidation of changes, new procedures and methods, and ensuring that they are incorporated into the culture of institutions (company, government and community). The changes, translated into new values, policies, vision, strategies and procedures, need to become incorporated into the cultures of both the community and the mining company. 2.6.7. Perseverance Perseverance involves the perceived ability to endure and overcome adversity (Oxford, 2011). It is an important quality to possess when working towards a goal and when coping with changes in unpredictable environments and within complex contexts. When reviewing the biographical details of Darwin, Einstein, and other geniuses, Howe (1999) ?disputed the assumption that high achievement derives directly from exceptional mental ability. To him, perseverance is at least as crucial as intelligence? (qtd. in Duckworth et al., 2007). 2.6.7.1 Overcoming Resistance and Inertia In the organizational context, perseverance works as an antidote to coping with the inertia and resistance that prevails when seeking to implement organizational, managerial and cultural changes. ?Entrepreneurship theorists have proposed that perseverance, tenacity and proactivity-initiative are important elements for the successful establishment and operation of new ventures? (Baum et al., 2001). Similarly, in the book Built to Last, Porras and Collins (1997) found that visionary organizations had well-defined organizational visions and that their management teams had persistence as a core characteristic. In the context of SEMC Framework, perseverance is instrumental to overcoming the initial resistance that community members have to change. It also helps people understand that although changes may challenge the current status quo, embracing them and actively participating in key decision-making can augment local community well-being. 2.6.7.2 Reinforcing Quality of Participation In addition to overcoming initial resistance, perseverance plays a vital role in reinforcing the quality of participation since it is not expected that the totality of community members and key stakeholders will initially embrace or adhere to the proposed changes. In this regard, perseverance and association with promotion (sharing/communication) become valuable approaches to engaging more people as well as to enhancing the quality of community members? participation. 2.6.8. Patience Community socio-economic intervention requires time to produce significant results. In this context, patience refers to the ability to allow enough time for the socio-economic interventions to produce meaningful results. As such, it is another key aspect of a successful socio-economic mine closure intervention. \t ? 39 Furthermore, another positive aspect of allowing for patience is that it provides opportunity for the creation and strengthening of bonds between the company and community as well as between the community members themselves. Lack of patience, on the other hand can irritate community members and slow down negotiations and even preclude collaboration. In addition to that, as noted by Gibson and Klink (2005) patience is seen as an important value for aboriginal people. In terms of mine closure, ?planning for closing Sullivan mine took 10 years to be completed and it is acknowledged by the participants in the process that this time was of great importance to provide ?significant time to explore complex issues and arrive at solutions that met the needs of all interests? (Teck Cominco, n.d., p. 20). Roberts (2005) while investigating stakeholders perceptions regarding the closure of Highland Valley Copper Mine also found that communities value patience as an important attribute in company-community relationships. 2.6.8.1 Allowing Time for Effective Change Closely related to perseverance, patience also refers to the ability to permit time for changes to take place and to produce relevant and long-lasting results. Furthermore, taking into account organizational changes, patience also refers to the time required to integrate the new procedures, processes, values, attitudes and behavior into one?s daily life until they become consolidated as part of the community culture (Kotter, 2008). The current business culture paradigm alludes that ?time is money,? and thus it makes the concept of patience more challenging to be appreciated. However, it can be argued that for the same reason, lack of patience for the changes to take place can also lead to money loss. 2.6.9. Passion 2.6.9.1 Individual Passion In a study where 34 managers were interviewed in Turkey, Karakas (2010) found that passion was listed as one of the nine core spiritual anchors4 that drive peoples? motivation at work. Similarly, entrepreneurs listed that persistence and passion were the most important traits needed for success in business (Dolabela, 2006). Furthermore, in search of an answer to the question of ?Why do some individuals accomplish more than others of equal intelligence?? Duckworth et al. (2007) found that the achievement of difficult goals entails not only talent but also perseverance and passion. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?4\t ??The concept of spiritual anchor refers to a pattern of deeply held individual assumptions, values, and priorities that provide direction, wholeness, meaning, and connectedness to that person?s life or work? (Karakas, 2010, p.76). \t ? 40 Although few academic studies considering the role of passion and other ?soft? matters in business, and its influence in the workers? performance, have been conducted (Goldman, 1998), the references above point to evidence of its role and importance. In the context of local community development, Sirolli (2010) states that ?The future of every community lies in capturing the passion, imagination and resources of its people.? To Sirolli, community economic development takes place by engaging potential entrepreneurs who are driven by passion and the dream of initiating her / his own business. Similarly, it is argued that in the context of a socio-economic mine closure, passion is a vital attribute that a community manager and the community relations team need to have. 2.6.10. Personality 2.6.10.1 Trust, Respect and Empathy Personality encompasses patterns of thoughts, feelings and behaviors that make a person unique. It can also be defined as the combination of characteristics and attributes that form an individual?s distinctive character. In the context of business, a great deal of time has been invested in studying the personalities of managers as well as entrepreneurs (Dolabela, 2006; Markman and Baron, 2003). In recent studies of entrepreneurship, it was found that individual differences play an important role in the success or failure of business ventures (Markman and Baron, 2003). Character, positive attitudes and empathy are distinctive human characteristics that are pivotal in building respect and trust within any community or organization. To Homan, ?the less credible or believable something is, the more reluctant we are to affiliate with it? (1999, p. 252). In this regard, Martin and Wall (2011) reported that by hiring a respectful local liaison, a mining company worked to gain the trust and credibility of the local population. In the 2013 edition of the Sustainable Development in the Mineral Industry several of the presentations touch upon trust (or lack of thereof) as an important issue to be addressed by the mining sector. Misztal (1996) points out that from a more pragmatic point of view trust provides a range of benefits. ?For instance it is seen as essential for stable relationships, vital for the maintenance of cooperation, fundamental for any exchange and necessary for even the most routine of everyday interactions. On the other hand, when trust ?is damaged the community as a whole suffers; and when it is destroyed, societies falter and collapse. Trust is also seen as a public good which is necessary for the successful running of the economy. Furthermore trust is also essential for facilitating effective problem solving, because it encourages the exchange of relevant information and determines whether the members are willing to allow others to influence their decisions and actions? (p.12). In relation to empathy Daniel Goleman, internationally known for his studies on the importance of emotional intelligence as a foundational aspect of leadership, in a paper entitled ?What makes a leader??, \t ? 41 argues that within the work situation, empathy is one of the five components of emotional intelligence5. Empathy is the ability to understand, and to some extent to share feelings that are being experienced by other people. It refers to the ?skill in treating people according to their emotional reactions? (Goleman, 1998, p. 3). While studying the relationship of emotional intelligence and leadership in upper-managers in the construction sector, Butler and Chinowsky (2006) found that empathy was one of the weakest elements when considering interpersonal skills. The study also showed that women have higher empathy levels than do men. Despite its importance, empathy and other ?soft? elements of leadership are perceived as very ?unbusinesslike? (Gooleman, 1998). This perhaps justifies the disinterest manifested by a great number of organizations and business people, especially in more traditional and conservative professions such as engineering. In researching person-organization fit6, Markman and Baron (2003) have suggested that the closer the match between an individuals? attitudes, values, knowledge, skills, abilities, and personality, the better their job satisfaction and performance. 2.7 Justification of the Socio-Economic Mine Closure Framework From a business point of view, the proposed framework can be seen as a tool that could assist on managing the social risks of mining projects. In the analysis of investment portfolios, social risks are increasingly becoming viewed factors in the decision-making process and are taken into account by shareholders and international financial institutions such the IFC. Additionally There is a recognition that opposition from local communities is a significant source of business risk. In this context, partnerships with community groups and NGOs are regarded as useful vehicles for building local community support, strengthening the company brand and reputation, and gaining access to local opinion leaders and decision makers in government and politics (Esteves & Barclay, 2011 p.189). In this regard, the Socio-Economic Mine Closure Framework provides tools for decision-making that are meant to lower the social risks of existing mining projects. At the same time, the Framework may enhance attractiveness with regard to capital and investors in relation to future mining projects proposed by that particular company or corporation. As seen in the previous section, the majority of industry guidelines and frameworks provide only general guidance and only introduce broad concepts, thus forcing practitioners to interpret and make sense of the proposed concepts for themselves. In addition, only the ICMM Planning for Integrated Closure Toolkit was designed to specifically tackle the implications of mine closure. Considering this situation, developing \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?5 The other four are: self-awareness, self-regulation, motivation and social skills. 6 Person?organization fit studies are concerned with the antecedents and consequences of compatibility between persons and the job they perform (Markman and Baron, 2003, p. 3). \t ? 42 a specific framework to address the socio-economic aspects of mine closure becomes both opportune and relevant. Furthermore, the proposed framework covers all elements of project management including planning, implementation and evaluation. Additionally, it even goes beyond this, incorporating elements of leadership not considered in the current frameworks and guidelines for mine closure. Moreover, the framework takes a holistic approach regarding ways to cope with the social and economic aspects of mine closure and it functions to integrate management and leadership elements into a comprehensive document. It is believed that the adoption and implementation of the framework will assist companies in reducing conflict, strengthening their corporate image, reducing liability and leaving a positive legacy of sustainable communities. Furthermore, seeing a company committing to and implementing the elements and sub-elements of the SEMC Framework can be well perceived by governments, communities and society in general, resulting in positive outcomes for a company?s current and future social licenses for operation. The SEMC Framework can also function as a guide to governments (in all levels) to formulate new policies and procedures and emending existing ones to ensure that the negative implications of mine closure are properly addressed. From a broader perspective, the adoption of the SEMC Framework can be seen as a contribution towards sustainable development, enhancing the overall governance structure and education levels of community members, company employees and government representatives, and empowering community members to make informed decisions regarding their own futures. \t ? \t ? 43 CHAPTER 3 3.1 The Research Process and Methodology A mixed-method research approach using both qualitative and quantitative methods were undertaken in this study. Qualitative research focuses on the meaning of real-life events and is appropriately used in an attempt to capture the contextual conditions within which people?s lives take place, as well as when searching for insights into current or emerging concepts that help explain human social behaviour (Yin, 2011). Concurrently, this research has also employed quantitative techniques such as the statistical treatment of gathered data. Quantitative investigations are most appropriately used to test hypotheses with the goal of predicting or explaining phenomena, and tend to measure the specifics of ?how much? or ?how often? (Nau, 1995). As such, explanatory and descriptive methods were adopted as part of the research design. An exploratory study can be described as revealing what is happening, and aims at inquiring and assessing phenomena in a new light. A descriptive study in turn, can be seen as portraying a meticulous and accurate profile of persons, events or situations (Saunders et.al, 2007). Additionally, due to the qualitative nature of the research, this study can also be classified as having a participant-observer approach since data collection was also drawn based on the researcher?s observations during the gathering of the field data. Given that the researcher was embedded in the environment where the events and phenomena to be analyzed were spontaneously taking place (Yin, 2011; Spradley, 1980), employing a participant-observer approach can function as an effective strategy for capturing nuances, subtleties and patterns of phenomena that would not be possible using different methods of investigation. This research comprises of an exploratory multiple case study that focuses on the: a) efforts undertaken by mining companies towards implementing programs and initiatives to support local economic development initiatives to address the social and economic impacts of mine closure and; b) perceptions of mining community members, government and mining companies in relation to those initiatives implemented by mining companies. Despite the fact that perceptions of these three groups are analyzed, understanding community members perceptions are given priority since this group will be the ones remaining in the community after the mine is gone. Based on these case studies and an extensive literature review, a deliverable Socio-Economic Mine Closure Framework has been developed to assist companies in implementing successful and comprehensive mine closure. In order to address the objectives of this research, the present study is divided into three major phases: I) Diagnostic; II) Assessment and refinement of the SEMC Framework; III) Measuring the company?s performance considering government, company and community?s perceptions and further evaluation of the Framework. \t ? 44 3.1.1 Phase I: Diagnostic The diagnostic phase comprised of an exploratory and descriptive study wherein the initiatives undertaken by the three mining companies which aim to contribute to the local development of communities were described and evaluated. Furthermore, as part of the diagnostic phase, and to specifically address the first objective of this research, key industry voluntary and required frameworks and guidelines on sustainability community development, mine closure and sustainable development adopted by the mining sector were reviewed and analyzed. This revision served as support to the development of the SEMC Framework. In addition to these desktop activities semi-structured in-depth interviews were conducted with key subjects of interest from the companies, communities, local government and any other relevant players with the objective of deeply understanding how these companies initiatives are taking place on the ground and to capture what are the perceptions of these key subjects. Interviews and group sessions were recorded after previous request and agreement by the study participants. The research interview is a specific and controlled form of conversation (Kvale, 1996); the process of interviewing involves the use of strategies for inquiry (Jorgensen, 1989). The purpose of a qualitative research interview is to obtain descriptions of the lived world and to glean the meanings of central themes to the subjects. The ultimate objective in conducting interviews is to gain an accurate understanding of what the interviewees say (Kvale, 1996). ?A qualitative research interview seeks to cover both a factual and a meaning level, though it is usually more difficult to interview on a meaning level? (Kvale, 1996, p. 32). As a means of ensuring the credibility of the findings and of verifying the validity and reliability of information, the triangulation method has been adopted. Accordingly, data gathered from the interviews, from the analysis of the documentation (company?s annual reports and other publications) and the researcher observations were examined in order to check for both consistencies and discrepancies (Bowen, 2005). To Bowen, ?triangulation is a means of corroboration, which allows the researcher to be more confident of the study conclusions? (2005, p. 215). It is important to note that the interviews conducted for this phase I were performed during the same field visit to conduct the phase III described below. The results of the diagnostic phase as well as the findings of the interviews and surveys are lengthy discussed when each case study is presented. 3.1.2 Phase II: Assessment, Refinement and Expert Feedback of the SEMC Framework The aim in this phase was to assess, refine and receive feedback on the SEMC Framework. The question of interest regards whether the proposed Framework, its elements and sub-elements make sense not only to the researcher, but to other practitioners and scholars. Does the SEMC Framework present a reasonable theory for scholars studying the subject? Do the order and importance of the \t ? 45 elemental components of the Framework make sense? With these questions in mind, two major tasks were undertaken: The proposed SEMC Framework was assessed against key relevant sustainability guidelines and frameworks which have been adopted by the mining sector (e.g. Equator Principles, ICMM Community Development Toolkit, Towards Sustainable Mining (TSM), MMSD 7 Questions to Sustainability, ICMM Planning for Integrated Mine Closure and ICMM 10 Principles); The SEMC Framework was presented to mining professionals working in the fields of sustainability and community development, as well as to other professionals such as consultants and NGO affiliates. These key experts were asked to provide feedback and insights on the Framework through an online survey. Furthermore, scholars who are known to be actively involved in the area of community relations, community development and community sustainability were also approached for the same purpose. In total, 151 experts were invited to participate in this phase of the study. Participants in the online survey were asked: 1) to rank the 10 SEMC elements in terms of importance, and 2) to provide feedback and comments with regard to the proposed SEMC Framework. 3.1.3 Phase III: Assessing Local Context, Local Perceptions and Further Assessment of the Framework In this phase, a set of questions was developed (APPENDIX H) for each one of the 10 Elements of the SEMC Framework and its respective sub-elements. In order to assess and understand local context and evaluate subjects? perceptions of each constituent of the SEMC Framework, structured questions adopting an 11-point Likert type scale with values from 0 to10 (0 being ?strongly disagree? to 10 ?strongly agree,? and 5 being ?neutral? or ?no opinion?) were developed. It is important to state that a pre-test of the questionnaire was conducted prior to its distribution to the research subjects. The questionnaires were deliberately distributed to company representatives and local government officials. Additionally, key community members were approached to take part in the questionnaires. Quantitative and descriptive analyses of the responses were then performed based on the feedback from the respondents. These analyses helped to some extent to provide additional information perception of the study participants regarding the elements and sub-elements of the SEMC Framework. In parallel to the distribution of the structured questionnaires, some focus group sessions were held as a mean to create an opportunity to the subjects to voice their opinion in relation to the topics presented in the structured questionnaire and to deepen and expand researcher understanding of the local context and perceptions of study participants. It is important to note that before engaging in any fieldwork and data-collection activity, since the study involved human beings, the study has abided by the UBC Code of Conduct for Research Involving Humans (Certificate of Approval ? Minimum Risk - # H12-00505) to ensure that privacy, confidentiality \t ? 46 and other possible ethical issues, when doing research, were observed and accounted for (UBC, 2010; Yin, 2010). Similarly to phase I, the analysis of the data gathered and discussion of its results are presented in each one of the case studies for the sake of maintaining a good flow of ideas and maintain coherency. Due to the fact that the three case studies are located in three different geographical, social, cultural and economic environments a detailed characterization of the context of each case study is made which is in turn followed by an analysis of the data gathered and conclusions for the specific case study is provided. At the end of the study an analysis of the differences and similarities of the findings in the three cases studies is provided. \t ? \t ? 47 CHAPTER 4 4.1 Analyzing Industry Guidelines and Frameworks (Objectives 1 and 2) This section addresses the first objective of this research which aims to evaluate key industry guidelines and frameworks worldwide by analyzing the ways in which their constituent elements address the socio-economic implications of mine closure. It also addresses part of Objective 2, which aims to produce and assess a framework which could function as a comprehensive guide for planning, developing and implementing initiatives to be adopted by mining companies in order to create a practical and comprehensive approach towards preventing and mitigating the socio-economic impacts of mine closure. This section revisits the industry guidelines / frameworks presented in the literature review section to build a crosswalk matrix (Table 6) that compares the industry guidelines / frameworks against the SEMC Framework. The section will then conclude with a discussion regarding the similarities and differences between the documents analyzed and the SEMC Framework. In Appendices B to G, individual and expanded comparisons between the industry guidelines / frameworks and the SEMC Framework will be made and discussed. The following Table 6 provides a summary of all industry frameworks and guidelines analyzed against the 10 elements and sub-elements of the SEMC Framework. A detailed analysis of the individual framework / guideline is found in Appendices B, C, D, E, F and G. In some instances, although the content and description of the industry framework / guideline analyzed does not explicitly address a certain element / sub-element present in the SEMC Framework, it is implied. As such, the term ?implied? is then used to describe such a situation. Similarly, ?No Direct Correlation Found? is used in the cases where neither a clear definition nor an implied reference to the industry framework / guideline investigated was found when compared against the SEMC Framework It is important to mention that, with the exception of the ICMM Closure Toolkit, these industry guidelines / frameworks were not established to tackle specific aspects related to mine closure. On the other hand, they all have the goal in common of improving mining industry performance and contributing to the sustainable development of the host countries and communities. \t ? 48 Table 6 ? Crosswalk Matrix Comparing SEMC Framework to Industry Guidelines and Frameworks 10 P?s Seven Questions to Sustainability7 ICMM 10 Principles8 ICMM Community Development Toolkit9 ICMM Planning for Integrated Mine Closure10 Towards Sustainable Mining11 & Mine Closure Framework The Equator Principles and IFC12 Elements Sub-Elements 1.Policy Corporate Commitment Q1 Pr1, Pr2 CDT6 MCT1 PF1 EP3, PS1, EP4, EP8 Governance Q6 2.Presence Presence in the field Q2 Implied CDT13 MCT1, MCT3 Implied Implied13 Stakeholder analysis Implied CDT1, CDT2, CDT8 ICMM Com. Dev. Toolkit PF1 EP2, EP3, PS1 3.Participation Mobilization Q1 Pr9 Implied Implied in the ICMM Com. Dev. Toolkit PF2 EP2, EP5 Education / Capacity building Q2, Q6 and Implied on Q1 CDT13 ICMM Com. Dev. Toolkit Implied Empowerment Q1, Q2 CDT5 ICMM Com. Dev. Toolkit Implied Community engagement CDT3, CDT14 MCT1, MCT3 EP3, PS1 Partnerships No Direct Correlation Found CDT4 ICMM Com. Dev. Toolkit Implied No Direct Correlation Found14 4.Planning Asset mapping Implied on Q2 No Direct Correlation Found CDT7, CDT11, CDT17 MCT4, MCT5, MCT10 No Direct Correlation Found No Direct Correlation Found Socio-economic impact assessment (SEIA) Q2, Q5 Pr4 CDT12 ICMM Com. Dev. Toolkit PF2 EP1, EP2, EP3, PS1 Envisioning No Direct Correlation Found No Direct Correlation Found CDT9, CDT17 MCT8 No Direct Correlation Found No Direct Correlation Found Project design Q7 No Direct Correlation CDT18 MCT6 and ICMM Com. MCF No Direct Correlation \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?7 Q = Question (Seven Questions to Sustainability) 8 Pr= Principle (ICMM 10 Principles) 9 CDT = Community Development Tool (ICMM Community Development Toolkit) 10 MCT= Mine Closure Tool (ICMM Mine Closure Toolkit) 11 PF = Performance (Towards Sustainable Mining); MCF = Mine Closure Framework 12 EP = Equator Principle; PS = IFC Performance Standard 13 Implied = does not explicitly address a certain element / sub-element present in the SEMC Framework 14 No Direct Correlation Found = neither a clear definition nor an implied reference to a certain element / sub-element present in the SEMC Framework was found \t ? 49 10 P?s Seven Questions to Sustainability7 ICMM 10 Principles8 ICMM Community Development Toolkit9 ICMM Planning for Integrated Mine Closure10 Towards Sustainable Mining11 & Mine Closure Framework The Equator Principles and IFC12 Elements Sub-Elements Found Dev. Toolkit Found Performance indicators Implied Implied CDT19 ICMM Community Development Toolkit Implied EP4 Resources Q4 Implied CDT6 MCF PS1 5.Performance Implementation Implied on Q1 Pr4, Pr5 CDT15, CDT16, CDT19, CDT20 ICMM Com. Dev. Toolkit PF3 EP3, PS1, EP6 Monitoring Q7 MCT11 MCF Evaluation towards continuous improvement CDT15, CDT20 MCT7 PF4 6.Promotion Sharing / communication Implied on Q1 Pr10 Implied Implied in the ICMM Com. Dev. Toolkit PF2 Implied Consolidation No Direct Correlation Found No Direct Correlation Found No Direct Correlation Found No Direct Correlation Found No Direct Correlation Found No Direct Correlation Found 7.Perseverance Overcoming resistance and inertia No Direct Correlation Found No Direct Correlation Found No Direct Correlation Found Reinforcing quality of participation No Direct Correlation Found 8.Patience Allowing time for effective change Implied Implied 9.Passion Individual passion/motivation No Direct Correlation Found No Direct Correlation Found Implied Implied in the ICMM Community Development Toolkit 10.Personality Trust, respect and empathy Implied Implied \t ?\t ?\t ? \t ? 50 Table 7 - Discussion of the Crosswalk Matrix Comparing the SEMC Framework Against Industry Guidelines / Frameworks INDUSTRY GUIDELINE / FRAMEWORK COMMENTS 1 Seven Questions to Sustainability (APPENDIX B) The goals of the Seven Questions to Sustainability are oriented towards assessing that a project/operation is in alignment with sustainability concepts and it also aims to examine how these can contribute to sustainability over the long term. Similarly to the SEMC Framework, the 7Q?s can be used at any stage of the mine?s cycle. With the exception of Question 3 which concerns environmental dimensions, all the other 6 questions can be linked directly to the first 5 elements in the SEMC Framework: Policy, Presence, Participation, Planning and Performance. However, similarly to the others documents analyzed, no direct correlation was found in the 7 Qs with regard to the elements of Promotion, Perseverance, Passion and Personality. It could be implied however that Patience is considered within the 7Qs Framework. 2 ICMM 10 Principles (APPENDIX C) The10 ICMM principles include not only social concepts relating to sustainability but also aspects with regard to the environment, health and safety. This document does not address mine closure directly but the principles include sustainability concepts in the decision-making process that, over the long term, will have a positive influence during the closure phase. On the other hand, the 10 P?s are to be applied in the early stages and they are directly targeted towards providing practical tools to achieve a successful socio-economic mine closure. The ICMM 10 Principles document dedicates 6 principles (P1, P2, P4, P5, P9 and P10) to aspects related to corporate governance, the decision-making process, risk management and continual improvement, as well as contribution to community development and engagement processes which were all linked to the SEMC elements and sub-elements. The 10 Principles are fundamental points with a very broad approach aimed at ensuring that ICMM members align their strategies and practices to the principles of sustainability. On the other hand, the SEMC Framework has a very specific focus on addressing the socio-economic implications of mine closure. Considering this, some of the specific elements and sub-elements of the SEMC Framework could not be linked directly to the ICMM 10 Principles, such as Asset Mapping, Promotion, Perseverance and Passion. 3 ICMM Community Development Toolkit (APPENDIX D) The new version of the CD toolkit has been edited to include aspects related to the importance of fostering local economic development. The CD toolkit is the industry document that has the most explicit interfaces with the SEMC Framework. However, some key elements of mine closure such as Mobilization, Perseverance, Passion, and Personality are not explicitly articulated in the ICMM CD Toolkit. 4 ICMM Planning for Integrated Mine Closure (APPENDIX E) The ICMM Planning for Integrated Mine Closure relies heavily on the ICMM Community Development Toolkit to complement its approach and to address community and sustainable development aspects of a project/operation. Despite the fact that the ICMM Closure Toolkit, combined with the ICMM Community Development Toolkit cover many aspects related to the socio-economic aspects of mine closure, as identified in the analysis of the CD Toolkit, some elements existing in the SEMC Framework are implied, and some of them did not have any direct correlation to the ICMM tools. Some examples include the elements of Perseverance, Passion, and Consolidation. 5. Towards Sustainable Mining (APPENDIX F) The PFs mention the importance of partnerships as an element which supports community development. No correlation was found between the TSM documents analyzed and the Asset Mapping sub-element existing in the SEMC Framework. TSM is not explicit about the role of Mobilization, Education and Capacity Building, but it is implied. Envisioning and Performance Indicators from the SEMC Framework are not explicitly discussed or included. One can claim, however that TSM, in its Aboriginal Relations and Community Outreach Framework PF2 (Effective Community Engagement and Dialogue), may address these elements depending on the way in which a mining company approaches and puts into practice its community engagement policy. \t ? 51 INDUSTRY GUIDELINE / FRAMEWORK COMMENTS 6. The Equator Principles and IFC Performance Standard #1 (APPENDIX G) EP establishes that a Management Program consist of a combination of operational policies, procedures and practices. Considering this, it is possible to broadly link several elements of the SEMC Framework to the Equator Principles. In Addition, although the EP and PS1 address specific points that have significant importance to the socio-economic aspects of mine closure, both EP and PS1 are general concepts and it is up to the IFC borrower/client to develop and implement strategies, tactics and actions that will effectively address the implications of the closure. Based on the analysis, it can be understood that the SEMC Framework sub-elements of Education, Capacity Building and Empowerment are implicit in the EP and IFC Performance Standard #1. It could be expected that an effective Community Engagement plan would explicitly consider partnership with local community members and other stakeholders. However, neither in the EP nor in the PF1 was any reference found to partnerships. In relation to Perseverance, Patience, Passion, Personality and their Sub-Elements one can claim that the EP and PS1, through their principles and management systems, would cover and address these elements and sub-elements. That said, no direct correlation between the EP, PS1 and the SEMC Framework were found. The results of the overall assessment of the crosswalk analysis reveal that many of the elements and tools in the SEMC Framework have found a match with the industry guidelines / frameworks analyzed. However, in many cases, only broad references are made. In other cases, it could be inferred that a particular topic was related to an element or sub-element in the SEMC Framework, but they were not explicitly articulated. It can be concluded that the elements of Promotion, Perseverance, Patience, Passion and Personality, existent in the SEMC Framework, were either articulated to a much lower degree, or for which no direct correlation was found. It is also worthwhile to recall that the SEMC Framework was established as a result of: a) identification of a gap in the mine closure literature; b) participation in academic and mining industry events, and c) participation in the Brazilian CSR project. Considering this, it was found that the discussions related to socio-economic mine closure were lacking a holistic approach that considered elements such as Patience, Passion, Persistence and Personality. Despite the fact that these elements frequently appear to play a role in implementing community development initiatives, none of the existing guidelines and frameworks has articulated them together. This highlights the holistic approach of the SEMC Framework and reinforces the importance of its integrated approach. Because of the very nature of mining activity which exists throughout the world and within diverse political, economic and social contexts in their various stages of development, governance, capacity etc., one cannot expect that similar levels of interpretation and implementation of the existing industry framework / guidelines will take place. This situation reinforces the importance of the development, promotion and adoption of a specific and detailed framework that addresses specific issues related to the socio-economic dimensions of mine closure. \t ? \t ? 52 CHAPTER 5 5.1 Assessing and Receiving Feedback on the SEMC Framework (Objective 2) After the construction of the SEMC Framework and its comparison with existing industry guidelines and frameworks (Table 6 and Table 7) a further step was taken as a means to assess and receive feedback regarding the proposed SEMC Framework. In order to undertake this task an online survey was distributed to experts and run for almost 2 months from June 1st to July 26th, 2012. The identification of the online survey participants was made based on the interactions between the researcher and the potential survey participants in the previous two years prior to the distribution of the research. This happened as a result of attending several academic and industry related conferences and events, such as the CBERN Annual Meeting 2010, 2011, SME 2011, Social Responsibility in Mining Conference 2011 and UBC Mining alumni events. A total of 169 people were invited to participate on the online survey. These individuals were classified / grouped according to five different categories which were related to their professional linkages: ?Industry,? ?Education,? ?NGO,? ?Consultant? and ?Government.? Represented in the ?Education? category were professors and graduate students who work and/or research topics in the mining sector. From the total of all the online invitations sent out, 18 emails bounced back, resulting in 151 successful invitations. Of these valid invitations, 99 successful responses to the online survey were received back, resulting in a 66% response rate Table 8.presents the number of respondents by categories. Table 8 - Groups Invited to Respond to the Online Survey Category / Group Industry Education NGO Consultant Government Total # of Invitations 59 48 16 19 09 151 # of Respondents 36 33 11 12 07 99 The online survey participants were from 16 countries including Canada, United States, Mexico, Ecuador, Brazil, Peru, Australia, Indonesia, Mongolia, Kenya and Spain. They consisted of individuals who work in the field of mining and who are directly involved with at least one or more constituent elements of the SEMC Framework. There were three main objectives for distributing the online survey: 1) to rank the 10 constituent elements of the SEMC Framework in order of importance; 2) to assess how the SEMC Framework is perceived by the different groups / categories, and 3) to solicit feedback and comments on the overall Framework. In order to rate the elements according to order of importance, the online research subjects were asked to rank the elements from 1 to 10, where higher scores indicated higher importance and lower scores indicated lower importance. The respondents could also assign the same score to more than one element, a situation that was in fact observed. Table 9 and Figure 3 below were compiled based on the participants? responses. The final scores were calculated considering the average responses given by each group. \t ? 53 Table 9 ? Summary of the Average Scores and Standard Deviation Responses Given by the Online Survey Participants Elements Industry St.Dev Educ St.Dev NGO St.Dev Consult St.Dev Govnt St.Dev Participation 9.38 0.95 9.31 1.06 9.40 1.20 8.20 3.12 9.00 1.78 Passion 5.95 2.20 6.00 2.34 7.60 1.49 4.60 1.35 6.75 2.58 Patience 7.33 1.88 7.85 1.51 8.40 1.20 5.80 2.03 7.36 1.66 Performance 8.43 1.49 8.54 2.30 9.20 0.74 8.40 3.20 9.58 0.49 Perseverance 7.33 1.78 6.54 2.37 7.60 2.57 7.20 1.93 7.92 1.97 Personality 6.65 2.30 6.67 2.35 7.20 1.93 5.40 3.00 7.08 2.66 Planning 8.86 1.93 8.75 1.73 8.00 0.89 7.80 3.48 8.67 1.34 Policy 8.43 1.43 7.31 3.19 8.20 1.16 7.00 2.68 9.08 1.20 Presence 8.19 1.84 7.92 2.73 7.00 1.00 5.80 2.71 7.92 2.09 Promotion 7.43 2.21 7.08 2.52 7.00 3.34 6.80 2.92 7.50 2.17 Although some similarities can be identified as in example of the industry and education groups that considerer Participation, Planning and Performance as the most important elements in the SEMC Framework there is no consensus between these groups on the order and weight of the proposed Framework. Table 9 is displayed in alphabetical order. Multiple comparison tests were conducted between the elements constituents of the SEMC Framework and the five different groups. Significant differences were found only in the element Passion (p-value 0.03) when compared NGO and Consultant?s average responses and in the responses for the element Presence (p-value 0.03) when compared the average responses between Industry and Consultant groups. Descriptive analysis of the responses is useful to shed light on how people pertaining to these five groups see the elements of the SEMC Framework. Additionally during the description analysis some of the comments provided by the online survey participants was added to provide further explanation about their perceptions. The following Figure 3 is a plot of the responses given by each group for the elements constituents of the SEMC Framework where the group participants were asked: ?how would you rank these 10 SEMC elements in terms of importance??. Figure 3 - Plot Displaying the Average Responses Given by Group Participants on the Online Survey. \t ? 54 The following tables reflect the responses given by each one of the five groups participating in the online survey and represent the average scores attributed by each group participant. 5.1.1 Industry Category Table 10 - Industry Group Average and Standard Deviation Scores to the Online Survey Elements Average Std. Dev. Participation 9.38 0.95 Planning 8.86 1.93 Performance 8.43 1.49 Policy 8.43 1.43 Presence 8.19 1.84 Promotion 7.43 2.21 Patience 7.33 1.88 Perseverance 7.33 1.78 Personality 6.65 2.30 Passion 5.95 2.20 According to the 36 responses received from the category ?Industry,? the element of Participation is the most important (9.38), followed by Planning (8.86), and Policy and Performance (8.43). According to this group, the two least important elements are Personality (6.65) and Passion (5.95). Some individuals from the category ?Industry? also provided additional comments. These comments, such as ?No one element is conclusive. It is the sum of them that makes the difference? (Industry 1), are interesting because they express the complexity that is involved in mine closure. Another interesting comment was made by a participant regarding the element of Promotion; ?in community relationship building, celebrating the successes - big and small - (and on an on going basis) is a great way to encourage all the other aspects: participation, passion, etc? (Industry 15). With respect to the element of Promotion, another ?Industry? respondent pointed out that companies should be honest rather than chasing the truth to the detriment of relevant conversation and clear communication. Establishing trust and building and maintaining relationships are more about the discussion and less about the details. Regarding technical truths, we have to boil them down to simple, relevant messages. Very important, since we have a number of stakeholders that want to know more and we often work to provide big comprehensive reports, but they aren't always relevant or are too detailed or lack simple diagrams and messages (Industry 23). \t ? \t ? 55 5.1.2 Education Category Table 11 - Education Group Average and Standard Deviation Scores to the Online Survey Elements Education Std. Dev. Participation 9.31 1.06 Planning 8.75 1.73 Performance 8.54 2.30 Presence 7.92 2.73 Patience 7.85 1.51 Policy 7.31 3.19 Promotion 7.08 2.52 Personality 6.67 2.35 Perseverance 6.54 2.37 Passion 6.00 2.34 It is interesting to note that the responses from the ?Industry? and ?Education? category groups reveal strong correspondences. The 33 individuals who comprised the ?Education? group ranked Participation (9.31), Planning (8.75) and Performance (8.54) as the most important elements in the SEMC Framework. The responses from the ?Industry? category were strikingly similar: Participation (9.38), Planning (8.86) and Performance (8.43). Furthermore, those from within ?Education? ranked Presence (7.92) as the 4th most important element. Finally, Personality and Passion were ranked as the 8th and 10th elements in order of priority for the ?Industry? respondents. One of the respondents from the ?Education? group underscored the importance of community participation in the process as ?the community's role in mine closure remains unclear and is often still largely dependent on the company's commitment (resources) to a sustainable closure plan? (Education 1). The importance of community participation and organization was also expressed by a respondent from an NGO who said that ?all components [of the Framework] are highly relevant. A successful case [for mining closure] may imply a lead of the community on the post closure vision and land use planning? (NGO 5). 5.1.3 NGO Category Table 12 - NGO Group Average and Standard Deviation Scores to the Online Survey Elements NGO Std. Dev. Participation 9.40 1.20 Performance 9.20 0.74 Patience 8.40 1.20 Policy 8.20 1.16 Planning 8.00 0.89 Passion 7.60 1.49 Perseverance 7.60 2.57 Personality 7.20 1.93 Presence 7.00 1.00 Promotion 7.00 3.34 \t ? 56 In relation to the responses provided by the 11 individuals belonging to the ?NGO? group, and following a descriptive analysis of their responses, it was noted that in comparison to the other groups NGO respondents placed high importance on all the elements that constitute the SEMC Framework. Participation (9.40) and Performance (9.20) were however the most important elements for this group. Two elements that deserve some attention are Planning (8.00) and Patience (8.40). Planning was rated 5th in terms of importance and Patience was ranked as 3rd. It is interesting to note that when comparing Education (7.92) and NGO (7.00) groups, the element of Presence is ranked as 4th and 9th place respectively. Patience, in the context of the SEMC Framework, has been defined as the ability to allow enough time for meaningful social and economic changes to happen. Particularly with respect to social and economic change, community projects need time to yield significant results. As such, it is simpler to build a hospital or a road in a given community than to effect significant social transformation. Social transformation requires time, monitoring mechanisms and an attitude of perseverance in order to implement a plan and to make the necessary adjustments to produce the best results. One ?NGO? representative commented on the importance of Patience: ?I like the proposition of patience in your model. Typically companies, governments and local communities underestimate the time required for changes to happen, resulting in frustration to all involved (NGO 1).? This situation is the result of the short-term view that prevails in the majority of mining projects. In most projects, the particular circumstances are influenced by the individual agendas that each key player (Government, Company and Community) pursues. Local governments for instance, tend not to think beyond their 4 ? 5 year terms and try to reap the benefits of mining projects as soon as possible. Similarly, mining companies strive to demonstrate that tangible benefits have been delivered to the host communities as of the early stages of the mine?s life cycle. As result, short-term projects that focus on building infrastructure facilities have become the common approach. Finally, community members, particularly in remote and underdeveloped areas which are typically lacking in basic infrastructure, see mining projects as an opportunity to rapidly improve their quality of life, and thus welcome short-term projects (which are typically not sustainable over the long run) over long-term projects. Additionally, local citizens characteristically take on an attitude of skepticism towards new mining projects since time is not usually given to building relationships based on trust. Again, this factor functions to discourage engagement in long-term projects. This attitude is further aggravated when the prospector for the project is a foreign company and that the wealth created will not remain in the host country. This context sets the parameters for justifying why short-term initiatives are the common trend in mining projects. The aim of the discussion is not to stop short-term and infrastructure initiatives, rather the task is to find a balance between delivering important and badly needed short-term projects, with initiatives that require longer time to produce results. Supporting community participation and building capacity between governments and local communities are strategies that can be used to find this equilibrium. \t ? 57 5.1.4 Consultant Category Table 13 - Consultant Group Average and Standard Deviation Scores to the Online Survey Elements Consultant Std. Dev. Performance 8.40 3.20 Participation 8.20 3.12 Planning 7.80 3.48 Perseverance 7.20 1.93 Policy 7.00 2.68 Promotion 6.80 2.92 Patience 5.80 2.03 Presence 5.80 2.71 Personality 5.40 3.00 Passion 4.60 1.35 Maintaining presence in the community, fostering dialogue, promoting participation and building trust are critical to the success of any community development work (Veiga et al., 2001; Homan, 1999). It is surprising to note that many of the 12 individuals in the category of ?Consultant? ranked the element of Presence in the 8th position in terms of importance. In fact, when compared to the other four groups (?Industry,? ?Education,? ?NGO? and ?Government?) which placed Presence higher, those in the ?Consultant? category assigned the elements of Presence (5.80) and Personality (5.40) the two lowest scores. Because the nature of community development requires active fieldwork involving the promotion of dialogue and engagement with the local citizens, it would be expected that the ?Consultant? group would have assigned Presence a much higher score. These findings, in fact, point to some of the challenges regarding the element of Presence in community development. As such, Presence is not only an issue that concerns consultants in the field of mining, but it is also highly relevant to a variety of professionals who hold responsibilities in supporting community development, particularly in rural and remote regions. One of the challenges of community development in mining relates to community access, since many mining communities are located in regions with rudimentary or non-existent access roads. Some of them are only reachable by boat or airplane, as in the case of aboriginal communities in the Northwestern Territories in Canada. In addition, many of these communities lack basic infrastructure such as adequate housing and/or potable water. These challenges render Presence within the community more difficult for mining companies. Nevertheless, in their effort to improve this situation, some companies are creating community liaison positions whose basic role involves sharing and disseminating information, and providing feedback on community-company related affairs to both the mining company and the community. However, the existence of a community liaison representative does not eliminate the importance of having company officials, particularly those who have decision-making authority, present in the community, such as the community relations manager. \t ? 58 The following quote supports the above discussion, ?Presence is for me the single most important fact for a successful mine closure. People need to confirm that the company is there, close and caring about their future? (Industry 17). 5.1.5 Government Category Table 14 - Government Group Average and Standard Deviation Scores to the Online Survey Elements Government Std. Dev. Performance 9.58 0.49 Policy 9.08 1.20 Participation 9.00 1.78 Planning 8.67 1.34 Perseverance 7.92 1.97 Presence 7.92 2.09 Promotion 7.50 2.17 Patience 7.36 1.66 Personality 7.08 2.66 Passion 6.75 2.58 Performance (9.58), Policy (9.09) and Participation (9.00) were considered the most important elements in the SEMC Framework for the 7 ?Government? affiliates who responded to the online survey. Planning (8.67) is the fourth element most important for this group. Also as found in other cases Personality (7.08) and Passion (6.75) were listed as the least importance element. 5.1.6 Online Survey Conclusion In relation to the general results of the online survey it was found that the discussion regarding the SEMC Framework is opportune and that mine closure needs to be approached in a more comprehensive manner. The results of the survey also demonstrate a lack of consensus among the online survey participating groups regarding the weight or importance which is attributed to each of the constituting elements of the Framework. Additionally, it is believed that the importance and weight given to each element constituting the SEMC Framework may vary depending on contextual elements such as social, economic and political circumstances. Finally, the element of Personality was rated as 9th or 10th element of more importance according to all 5 groups. This result points to a discrepancy with what was observed in the case studies that will be discussed in the following chapter. In Argentina for example, the personality of the community relations manager was found to be essential for moving forward the negotiations regarding the planning process and the creation of a development agency with the local government and communities. The next section focus on addressing objectives 3 and 4 and this is accomplished when presenting and discussing the 3 cases studies conducted for this study. The goal in the following section is to summarize and evaluate the initiatives taken by mining companies as a means to assist in the socio-economic \t ? 59 impacts of mine closure and to study the perceptions of the mining communities, governments and mining companies in relation to these initiatives. To preserve consistency / coherency each case study is introduced and analyzed independently of each other. At the end of discussing and analyzing all three individual case studies an overview analysis considering the similarities and differences between the three cases will be mad \t ? 60 CHAPTER 6 6.1 Case Study Analysis (Objectives 3 and 4) 6.1.1 Boroo Gold Company (BGC) ? Mongolia This case study is the culmination of a thirteen day field visit to Ulaanbaatar, Mandal and Bayangol soums15 in order to gain a better understanding of the initiatives implemented by Boroo Gold regarding the closure of its mine and to examine the perceptions of residents from each soum regarding Boroo?s closure plans. In-depth semi-structured individual interviews and focus group sessions were conducted during the field visit. Several different groups including government officials, employees, community members and local entrepreneurs participated in the study. In addition to the interviews and focus group sessions, study participants also filled out a survey that aimed to capture the perceptions of three distinct groups of individuals (those from the mining company, the government and the local community) regarding several elements associated with mine closure. The socio-economic mine closure framework presented in the following section was used as a framework for both the interviews and the survey. Some of the interviews with Boroo Gold Company (BGC) management, as well as others who were deemed to be knowledgeable about a variety of topics including politics, the media, and mining in Mongolia, were held in Ulaanbaatar. The greatest percentage of research interviews however were held in Bayangol and Mandal soums. The participants from Mandal consisted principally of people from the Zuunkharaa Bagh. 6.1.1.1 Introduction The Mongolian government can be divided into four administrative levels: The national level, the aimag level (equivalent to a state/province), the soum level (equivalent to a county/district) and the bagh level (equivalent to a village), which makes up the smallest administrative structure. With this in mind, Mongolia is divided into 21 aimags (states/provinces) which are in turn divided into 329 soums (districts). The capital Ulaanbaatar (UB) is administrated separately as a capital city with provincial status. Selenge is one of Mongolia?s 21 aimags and is located in the North of the country. There are 17 soums (districts) in Selenge. Each soum is divided into baghs (villages). In Mandal and Bayangol where this research took place, the soums are divided into 9 baghs and 3 baghs respectively. Zuunkharaa is the center of Mandal soum and Tunkhel is a bagh that is 5 km away from Zuunkharaa that is also located in the Mandal soum. It is the closest settlement to the Gatsuurt project. The Gatsuurt project is owned by Centerra which also owns Boroo Gold Company. It is currently on hold as a result of the adoption in 2009 of a new forest and river law which has determined that extractive projects should not be authorized in forest or watershed regions. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?15 Soum is the equivalent of a county/district \t ? 61 Mongolia is a parliamentary democracy with a clear and defined structure for electing its representatives. The prime minister is elected by the great hural (or parliament); the aimag governor is elected by the aimag hural; and the soum governor is elected by the soum hural. Each governor must be approved by their superior, and the bagh governor must be approved by the soum governor. Twenty-five people from the soum are elected as members of the hural16, and through an internal election, one hural member is appointed to be the soum governor. Figure 4 ? Map of the Location of the Selenge Province in Mongolian (Image: Public Domain) Source: Google Maps Figure 5 ? Map of Selenge Province (Image: Public Domain) Source: Wikipedia - http://en.wikipedia.org/wiki/File:Mongolia_Selenge_sum_map.png \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?16 hural = parliament \t ? 62 Centerra is a Canadian-based gold mining and exploration company that is headquartered in Toronto, Ontario. It engages in the operation, exploration, development and acquisition of gold properties in Asia, the former Soviet Union and other emerging markets worldwide. The company is the largest Western-based gold producer in Central Asia with two operating gold mines located in the Kyrgyz Republic and Mongolia. In 2011, Centerra produced 642,380 ounces of gold. Centerra?s shares trade on the Toronto Stock Exchange (TSX). As of December 31, 2011, Centerra?s assets consisted of a 100% interest in the Kumtor mine which is located in the Kyrgyz Republic, a 100% interest in the Boroo mine and a 100% interest in the Gatsuurt development property, both of which are located in Mongolia. Centerra also has shares in properties in Russia and in Turkey. Through its Kyrgyz and Mongolian operations, Centerra generates more than 3,000 jobs. Of these, Kumtor mine is responsible for over 2,700 jobs in Kyrgyztan. Boroo mine accounts for roughly 300 jobs of which 97% are held by Mongolian citizens (Centerra Gold, 2012). Boroo Gold Company (BGC) is an open-pit gold mine in Mongolia that is located about 150 km northeast of the capital Ulaanbaatar. It was the first hard-rock gold mine established in Mongolia, and the largest foreign investment in the country at the time it began production in 2004. The mine has produced more than 1.5 million ounces of gold (Centerra Gold, 2009). Due to the exhaustion of its economically viable ore, it temporarily stopped mining at the end of 2010. In 2011, BGC began to process its stockpiled ore, and in 2012 it was granted a license to re-start heap leaching of the stored low-grade ore. Additionally, as a result of the high price of gold which makes mining this type of low-grade ore economically viable, the company restarted mining some small deposits in 2012. Currently, gold production is expected to come from the processing of the remaining Boroo oxide ore and heap leach production which are expected to be processed by 2013.The average gold recovery for 2009 and 2010 were 72.9% and 71.8% respectively. The recovery of gold from processing the stockpiles is approximately 54%. The initial grade of the ore processed when the mine initiated operation in 2004 was of 3.5 g/t. Currently, the grade of the stockpiles processed is 0.8 grams per tonne. In spite of currently being in production, the lifespan of the BGC mine is destined to be short and although no exact closing date has been provided, it is estimated that operation will continue until 2015. The number of workers hired during the remaining time of the mine?s lifespan will fluctuate based on the mine?s volume of production and type of operation. At its peak, BGC had 800 employees, although the mine currently employs only around 300 people (Centerra Gold, 2012). Boroo mine is located in two separate soums in Selenge province (Figure 1). Mandal soum is located 140 km from the capital Ulaanbaatar (UB) and Zuunkharaa (the soum center) is situated 30 km northeast of the Boroo mine site. Bayangol soum is located approximately 160 km from UB and about 35 km northwest of the BGC mine. The distance between Zuunkharaa and Bayangol is about 45 km. The open pits and mill facilities are located in Bayangol and the tailing dams, power line and wells that supply water to the mine are located in Mandal soum. \t ? 63 Mandal soum has 25,000 inhabitants of which 28 people are employed by the mine. Bayangol soum has 5,000 inhabitants and 120 of these people are currently working at the mine (80 direct employees and 40 contractors). Based on factors such as development and social welfare, every year the Mongolian central government provides an award and prize money to the most successful soum. For two consecutive years, Bayangol and Mandal were awarded Best Soum in Mongolia. Centerra holds a mine license in Gatsuurt, which is located in Mandal soum 35 km to the east of the Boroo mine. The mineral reserve upon which the Gatsuurt development plan is based is estimated to comprise 1.8 Mt of oxide ore grading 2.27 g/t Au and contain 133,000 oz (4.2 t) gold; 7.1 Mt of primary and transition ore grading 3.71 g/t Au and contain 853,000 oz (26.7 t) gold. It is estimated that Gatsuurt has 1,500,000 ounces of gold and 10 years of mine life (Centerra Gold Annual Report, 2004). Since Gatsuurt is located near BGC mine site, Centerra?s plan is to use the milling facilities at Boroo to process the Gatsuurt ore, which would extend the closing process of the Boroo site. In fact, as a result of this situation, more people would be employed and the community investment that the company provides to the soums and the province would continue for several more years. The Gatsuurt project has obtained all the licenses needed to initiate operations, but a prohibition of mineral exploration in water basins and forest areas (as a result of the passing of the 2009 Water and Forest Law) has put the Gatsuurt and a many other hard-rock projects on hold since they are situated in areas that are regulated by this Law. Supporters of these projects hope the newly appointed government17 will soon make decisions on the future of the Gatsuurt project as well as those of other license holders. Since becoming a democracy with an open market economy, Mongolia has made three separate changes to both its Foreign Investment and its Mineral Laws. While some critics suggest that the many changes to these laws have created greater levels of restrictiveness to foreign investment, others believe that the main drawback of the changes has been the development of an insecure and unstable political environment that has created anxiety and increased the risk to international investors. As stated earlier, this study focuses on gaining an understanding of the initiatives implemented by BGC regarding the closure of its mine, and it also seeks to capture the perceptions of residents from each soum regarding BGC?s closure approach. With this in mind, the present research will not focus on the Gatsuurt project, which was not part of the scope of the field study. In spite of this, and as a means of providing additional clarification, some references to Gatsuurt are made throughout the study. Since 2004, as part of its policy of engaging with local governments and communities, Boroo has created and committed to donating USD 250,000 every year to the Soum Development Fund (SDF). Mandal, Bayangol and the Selenge province each receive this amount annually for the SDF. In addition, a one-time USD $ 40,000 Microcredit Fund was also given to both Mandal and Bayangol soums with the aim of \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?17 Presidential elections were took place in June 2013. \t ? 64 supporting the development of small businesses in those communities. In total, to date BGC has donated over USD 5 million dollars to the aimag and the two soums. Another initiative implemented by BGC in 2010 with the aim of improving its relations with, and increasing its presence in the community was the creation of the position of the Community Relations Officer (CRO). The CRO?s main duty is to function as a liaison between the company and the community. Bayangol has one CRO, and two CROs were appointed for Mandal; One CRO is based in Zuunkharaa (Mandal soum center) and the other one oversees the Tunkhel area, nearest bagh to the Gatsuurt project. The SDF is managed by a Joint Working Group (JWG) which is formed by soum and bagh government officials, and other UB-based BGC management personnel. The JWG decides on the priorities for the soum and determines where the SDF should be invested. In July 2012, the Bayangol CRO and soum governor took the initiative of distributing a survey through which a total of 231 questionnaires were submitted to the 3 baghs, the administrative units of the soum, and to 16 organizations such as banks, police stations, hospitals, and cultural centers. Of these, 130 questionnaires (or 56.2 percent) were returned and 92 individuals responded to the question: ?What project would you like to be undertaken with the funds from BGC in the soum in 2013?? The top six responses are listed in the following table. Table 15 - Survey Distributed to Bayangol Soum Asking Where the SDF Should Be Invested No. Proposed projects Respondents Completion, % 1 Housing for young couples 23 25 2 Investment for job creation 19 20 3 Recreational place for youth 17 18 4 Expansion of the hospital building 15 16 5 Ambulance 7 7.6 6 Playground near the housing area 5 5.0 Source: BGC, 2012 Although the survey received a good response rate, questions can be raised regarding the methodology which was adopted, as it did not ensure that people located in more rural areas were given the opportunity to participate in the survey. Despite these concerns, according to the participating respondents, job creation was ranked as one of the important elements for consideration. Mandal is the largest soum in the country with more than 25,000 inhabitants. Due to its size, it has been subdivided into nine baghs. The average number of people residing in each soum in Mongolia is 5,000 people. In addition to mining, other major industrial and economic activities include a spirit factory that produces vodka, a brick factory and the railway station. The region is generally agricultural and both Mandal and Bayangol have high participation rates in farming activities, with many families operating economic gardens out of their backyards. As it is true for virtually all Mongolian regions, herding also plays a significant role in Mandal and Bayangol. Herding is a significant economic activity resulting in the production of milk, wool and cashmere. Bayangol is an average sized soum with approximately 5,000 inhabitants and is subdivided into three baghs. Consistent with the average age groups found throughout the country, approximately 68% of the population is under the age of 35. Other than mining, there is no major industry in Bayangol, where the \t ? 65 soum?s other primary economic activities include agriculture and the production of milk, wool and cashmere. In 2010 the Canadian Department of Foreign Affairs and International Trade (DFAIT) awarded BGC a grant18 of CAD 270,000 funding to support ?strengthening the company?s Corporate Social Responsibility program in Mongolia. In conjunction with this project proposal, BGC established six milestones to assist in improving the social and economic conditions in the region, addressing the social and economic impacts of the mine?s closure as well as facilitating the transition to the start-up of the Gatsuurt project. Table 16 - Milestones DFAIT Project Milestone 1 Strengthen and Formalize Mine Closure/Transition Programs Milestone 2 Train Staff, Local Government Leaders, Community and Industry Milestone 3 Train Local SMEs, Support Groups and Community Natural Resource Monitors Milestone 4 Develop Local Supply Chain/ Small & Medium Enterprises (SME) Programs and Initiatives Milestone 5 Promote Sustainable Environmental and Socio-Economic Development Milestone 6 Identify and Demonstrate Best Practices in CSR and Community Source BGC, 2010 Each milestone is divided into categories, objectives and specific actions to be implemented in both Mandal (Zuunkharaa and Tunkhel Bagh) and Bayangol soums. As part of this DFAIT program, and with the aim of promoting local economic development, some small-medium enterprise (SME) projects are presently being implemented. In August 2012, a co-operative dairy factory was established in Tunkhel Bagh near the Gatsuurt project. 6.1.1.2 Case Study Methodology As indicated earlier, the field research conducted in Mandal (Zuunkharaa area), Bayangol and UB aims to capture the perceptions of people regarding the closure of the Boroo mine. The Socio-Economic Mine Closure (SEMC) for assessing company performance and capturing and understanding local government and community perceptions with regard to a broad range of topics that include governance, transparency, community participation, communication, local economic development, monitoring and evaluation, etc. Statistical tests were also conducted to analyze the data which had been gathered. When there are two or more groups, analysis of variance (ANOVA) is applied to test the null hypothesis, which shows whether the means of several groups are all equal. These statistical tests yield a p-value, which is used to determine whether the null hypothesis is rejected or not. Typically, the null hypothesis is rejected when the p-value derived from the ANOVA and t-tests falls below the significant level, which is set in this study at 0.05. If ANOVA yields a p-value < 0.05 the null hypothesis that all groups have the same mean scores is rejected, that is, at least one of groups have a different mean, however in order to know which group have different mean scores t-test is applied to all possible pairs of groups. This procedure is called multiple comparison test or simply multiple comparisons. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?18 http://www.international.gc.ca/media_commerce/comm/news-communiques/2010/317.aspx?lang=eng&view=d \t ? 66 Furthermore, as part of the descriptive statistics, Boxplot was also adopted due to its convenient way of graphically depicting groups of data through their quartiles. The top and bottom of the box correspond to the third and first quartiles, respectively, and the horizontal line inside the box is the second quartile (or median). The vertical lines outside the box correspond to the lowest data point still within 1.5 IQR of the first quartile, and the highest data point still within 1.5 IQR of the third quartile, where IQR is the interquartile range given by IQR = third quartile ? first quartile The ?R? was the statistical software adopted to treat and analyze the data gathered. Following each Boxplot a table summarizing the responses is also presented. In these tables average and standard deviation are shown with the intent of providing further information about research participants perceptions. The first steps towards understanding BGC?s history, policies and procedures involved conducting a thorough review of the company?s website as well as an examination of BGC?s annual reports and internet publications. Additionally, a series of semi-structured in-depth interviews were scheduled with some of the company?s management staff. Interviews of 45-60 minutes were conducted in order to gain a clearer understanding of the ways in which management sees the closure process and all the elements, challenges and opportunities associated with the closure at both the company and community levels. Interviews were also conducted with selected individuals who were not related to the company, as it was understood that these people were familiar with the context of the international mining industry and knowledgeable about the political and economic scenario in Mongolia. The identification of these individuals took place in part through a referral process, as well as through the approach of some individuals who were already known by the researcher through his previous work and visits to Mongolia, but who were not directly involved with the present study. Field trips to Mandal and Bayangol were organized after having spent several days in UB. During these field trips, interviews and group sessions were held with government officials, company representatives and community members. A total of 29 interviews were held and 6 group sessions took place in the two soums. In total, 80 people were directly involved in the research, either through participating in one-on-one semi-structured in-depth interviews, group discussions, or by filling out the survey. Most of the interviews were recorded and in every case, the research subjects were consulted in advance regarding whether or not they agreed to have their session audio recorded. The following Table 17 summarizes the number and location of the survey participants. \t ? \t ? 67 Table 17 - Mongolia Research Participants Mandal Bayangol UB TOTAL G MC C G MC C G MC C Interview 2 1 4 4 2 3 - 9 4 29 Group Session(s) 6 - 15 (2)19 7 (2) - 5 - - - 33 Surveys 11 1 25 8 4 12 - 7 - 68 In addition to the semi-structured interviews and the group sessions, a survey containing an average of 100 questions was distributed to three distinct groups: BGC, community and government. The survey was structured considering the elements and sub-elements found within the SEMC Framework, and an 11-point Likert scale (Groves at al., 2004), which allowed the research subjects to mark the most suitable choice based on their perception, was included. Figure 6 - Survey Question Sample The data from the survey was grouped and the average and standard deviation were calculated. A lower index indicated that people perceived that a specific situation needed to be improved, and higher scores suggested that individuals perceived a specific situation as positive. 6.1.1.3 General Results A total of 12 company employees in non-management positions completed the survey: 7 individuals from the company?s Ulaanbaatar (UB) office, 4 from Bayangol and 1 from Mandal. The Community Relations Officers from both Bayangol and Mandal responded the structured survey as well as participated in the in-depth interviews. In addition, 9 people in management positions from the company?s UB office were interviewed including the CEO, VP Finance & Administration, HR Director, Government & Community Relations Director and the Community Relations Manager. As explained earlier, the design of the survey was based on the 10 constituent elements of the Socio-Economic Mine Closure Framework. In the particular case of the element ?Personality,? of which the objective was to assess how people perceived the personality of the company representative in the community, the questions were deemed to be unsuitable with regard to management, and in order to avoid bias and inappropriate queries, questions were not asked of the company?s research subjects on this topic the same approach was taken in the Argentinean and Canadian case studies. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?19 The numbers in parenthesis represent the number of group sessions held. I believe that the participation of local citizens is important and can have a positive effect on changing the local reality. Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? \t ? 68 The graphic representation below provides a visual result of how each group of people who responded the survey perceive BGC?s performance regarding the 10 elements of the Mine Closure Framework. The graph does not provide specific details regarding each group and their responses to the various elements. These details, which were gleaned from the interviews and group sessions, are discussed in Section 6.1.1.4 Discussion of the Survey and Interviews. Table 18 - Detailed Responses of the Mining Company Regarding the SEMC Online Survey Mongolia Mining Company Element UB Bayangol Mandal Average Sd.Dev Average Sd.Dev Average Sd.Dev Policy 6.43 2.56 5.85 2.69 9.20 0.75 Presence 6.06 2.83 6.00 2.36 6.00 2.28 Participation 5.77 2.84 6.00 2.62 7.18 3.24 Planning 6.60 2.65 6.08 2.50 8.13 2.24 Performance 5.77 2.70 5.28 2.72 5.60 2.57 Promotion 6.45 3.11 5.13 2.82 7.00 3.21 Perseverance 6.60 2.63 5.54 2.56 6.50 2.63 Patience 6.13 1.83 6.17 1.86 8.00 2.82 Passion 6.20 2.04 5.25 2.02 8.00 2.60 Personality - - - - - \t ? Figure 7 - Plot Compilation of Mining Company Responses of the SEMC Online Survey Most of the responses given by mining company?s workers from each location range between 5.00 and 6.00 points with the exception of Mandal, where the scores where significantly higher. In the case of Mandal however, only the Community Relations Officer (CRO) completed the survey, thus making it impossible to draw a more comprehensive conclusion as the responses only represent the view of one individual. \t ?\t ? \t ? 69 With regard to the group ?government,? a total of 19 people completed the survey; 8 from Bayangol soum and 11 from Mandal. In addition, 6 people holding executive positions within both governments were interviewed. Table 19 - Detailed Responses of the Government Group Regarding the SEMC Online Survey Mongolia Government Element Bayangol Mandal Average St.Dev. Average St.Dev. Policy 7.13 2.39 6.82 2.72 Presence 6.00 2.33 5.48 2.95 Participation 6.99 2.84 6.35 2.95 Planning 7.20 2.68 6.13 2.53 Performance 6.69 2.48 5.64 2.36 Promotion 6.01 3.08 5.33 2.44 Perseverance 5.06 2.97 5.83 2.57 Patience 6.42 1.89 6.36 2.40 Passion 7.44 2.02 6.62 2.06 Personality 8.03 1.35 8.06 1.40 \t ?\t ?\t ?Figure 8 - Plot Compilation of Government Responses to the SEMC Online Survey With the exception of the elements ?Promotion? and ?Perseverance,? the average response from government representatives from both soums is higher than the average for the other two groups (mining company and community). With the exceptions of the element ?Personality? that received approximately 8.00 points, all other elements were ranked between 5 and 7.44, suggesting that there is room for improvement. This is confirmed by the data gathered from the interviews and group sessions, and will be discussed at length in the following section of this study. Regarding the group ?Community,? a total of 12 people from Bayangol and 25 individuals from Mandal completed the survey and, as in the previous cases, the average and the standard deviation were also \t ? 70 calculated. Many of these people were invited to participate in the survey as a result of the roles they play in the community, such as through their participation in youth, elder and women groups, etc. In addition, several individuals and families living in rural outlying areas also participated in the study. It is worth mentioning that some of these participants have relatives working for the mine. Table 20 - Detailed Responses of the Community Regarding the SEMC Online Survey Mongolia Community Element Bayangol Mandal Average St.Dev. Average St.Dev Policy 5.19 3.08 5.62 3.51 Presence 5.11 3.31 5.67 3.54 Participation 4.60 3.51 5.46 3.82 Planning 4.51 3.53 5.45 3.78 Performance 4.37 3.44 5.18 3.44 Promotion 4.48 3.30 4.20 3.68 Perseverance 4.25 2.93 3.65 2.93 Patience 3.75 2.90 5.55 3.27 Passion 5.42 3.25 6.62 3.36 Personality 5.81 2.81 5.65 3.19 Figure 9 - Plot Compilation of Community Responses to the SEMC Online Survey In general, the community?s perceptions regarding the SEMC elements were found to be lower in Bayangol than in Mandal, where elements such as Participation and Patience were found to be relatively lower (4.60 and 3.75 respectively). On the other hand, local citizens who filled out the survey gave higher scores (6.62 and 5.55) to the importance of Passion and Patience respectively. Bayangol, a soum with a population of 5,000, has 120 people employed by the mine while in Mandal, which has a population of approximately 25,000, only 28 people work for the mine. These numbers suggest that the economic impact of closing the mine will be more pronounced in Bayangol than in Mandal. Consequently, this can provide one of the explanations for the lower scores in comparison with the other two groups (mining company and government). \t ? 71 Although the above graphic representation provides some indication regarding each group?s perceptions about mine closure and the performance of BGC in relation to aspects related to closure, it is the combination of the survey results and data gathered from the interviews and group discussions that will allow for a more in-depth analysis. The nuances and subtleties of the responses are explored in the discussion of the interviews in Section 6.1.1.3 General Results. 6.1.1.4 Discussion of the Survey and Interviews This section will discuss of the survey results, the individual interviews and the group sessions. To facilitate the presentation of the findings, the results are organized and displayed according to the 10 element constituents of the Socio-Economic Mine Closure Framework Table 5. A total of 16 interviews and 6 group discussions were held in Mandal and Bayangol soums. 6.1.1.4.1 Policy The first element of the SEMC Framework is known as Policy. The objective of the questions associated with the element of Policy was to learn about the ways people perceive the company in terms of the policies it has in place and whether they believe that BGC is committed to implementing positive and lasting changes in the community where it operates. Additionally, perceptions regarding governance issues within the government were also brought up. The overall interview results from the community indicate that people believe that BGC wants to leave a positive legacy after the mine is gone. On the other hand, concerns were raised regarding the belief that neither the local government nor the local citizens are fully aware of the company?s closure plan. Regarding transparency and governance, which are discussed later it was found that both government and the local residents expect BGC to do a better job, especially in areas such as the Soum Development Fund, Microcredit and mine closure. When asked if the local citizens believe that the local government has been looking after the community?s interests (Question 1.3), a wide range of responses was provided but the overall results show that the community is moderately (6.80-6.92) confident that the local government is representing the community?s best interests, this perception was also reinforced in the interviews. On the other hand, the findings of a high standard deviation in example of the 3.19 scores found in the Bayangol community?s responses indicate that a wide range of responses was provided, thus suggesting some divergence within the views of the respondents. ANOVA tests were conducted, but no significant difference was found. \t ? 72 Figure 10 - Boxplot of the Answer Scores for Question 1.3 for C, G and MC20 ? ?I trust that the local government is looking after the community?s interest.? \t ?Table 21 - Comparison Between Government and Community Responses for Question 1.3 Element 1: Policy ? Sub-Element: Governance Question 1.3 I trust that the local government is looking after the community?s interests. Category: Government Category: Community Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 7.50 2.06 7.09 2.57 6.80 3.19 6.92 2.70 It is known that BGC donates USD 250,000 annually to the Soum Development Fund (SDF) of each soum and that this will cease after the mine closes. However, it was revealed that many people are not aware of how the SDF works. This situation creates suspicions about the transparency of the fund distribution. Some study participants understood that there is an official structure (referring to the Joint Working Group) through which a committee decides on how to use these funds, but critics suggest that only a small group of people who keep close ties with the local government participate in this process. Additionally, the SDF has been criticized for not providing any mechanism through which to communicate with the local citizens regarding community project approval and on how the decision to spend the money is made. Furthermore, no provision is provided for a process of accountability regarding decision-making and spending. In fact, the results of the interviews and group sessions revealed that local citizens would like to participate more in this process and be made aware in advance regarding project approval, how much money will be invested and as well, to receive full and detailed reports when projects are completed. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?20 C = Community; G = Government; MC = Mining Company \t ? 73 Another important element associated with governance and transparency refers to the microcredit funds. In the Bayangol soum for loans of up to 1 million MNT21 (~USD 700) the decisions are made directly by the soum governor. This situation is also seen by the local citizens as an issue of concern. For loans of between 1 million MNT and 5 million MNT (~ USD 3,500), prospective borrowers need to comply with a more stringent set of requirements and, for the applicant to successfully receive approval for the money, the final decision is made by the local bank branch that is responsible for managing the funds. Although the interest rates in such cases are lower than market rates, the requirements imposed by the bank are quite stringent, rendering it more challenging for ordinary people to access these loans. There is clearly room to increase transparency and participation regarding the microcredit loans approved by the soum governor. However, the most important issue regarding governance and transparency was raised by a government official when he bluntly stated that the bank managing the USD 200.000 microcredit fund is not too concerned about the high requirements for lending the microcredit money since the bank can offer its own money with less rigorous requirements, but with higher interest rates. This system, in addition to having a conflict of interest, defeats the purpose of microcredit which is intended to make resources available to people who do not have access to the regular banking system, and to support the development of small businesses. Another matter that can be seen as a governance/transparency issue relates to the Community Relations Officer (CRO) in Mandal. The CRO, in addition to him/her duties with BGC, also holds two other distinct and to some extent conflicting positions in the community - first, as a member of the soum parliament (hural), and second as a bagh head. Although neither government respondents nor company representatives holding management positions participating in the study did not report this being an issue and suggested that when conflict of interest is identified the CRO abstains from participating, this situation nevertheless can have detrimental effects on how people view and trust the CRO, since trust is one of the fundamental elements for building community involvement and participation. The 2012 ICMM Annual Report theme title ?Building Trust? acknowledges that although improvements were made, ?We know that the mining and metals industry continues to face a substantial trust deficit. At the same time, mining-related conflict in many countries is increasing? (ICMM, 2012, p.8) Typically, as democratic regimes mature, higher levels of transparency and governance are required from every member and from distinct groups, and this will likely become an issue that will need to be addressed by BGC in the future. 6.1.1.4.2. Presence The survey results indicate that local citizens and local government both acknowledge and value the presence of the company in the community. They also reveal that this level of support has been influenced by the role played by the CRO in each soum. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?21 Mongolian Tugrik \t ? 74 However, in spite of the fact that the CRO (who resides in the soum) is a known individual, particularly among the more urban segments of the community, herders and farmers living far away do not have frequent contact with him/her. Many of these rural herders and farmers knew few details regarding the SDF, and the great majority believed that they did not receive enough information about mine closure in general and BGC closure plans specifically. Furthermore, they expressed concerns regarding the likelihood of contamination after closure. They also expressed a lack of trust that the closure would be carried out in the most proper manner, and articulated doubts that the local and central governments would be technically prepared for a suitable closure since BGC is going to be the first hard rock mine to be closed in Mongolia, and the first mine to be closed after the fall of the Soviet regime. Additionally, a recurrent topic which was raised during the interviews and group sessions concerned whether the pit will be backfilled. People expressed disappointment with the idea of leaving what they called a ?hole in the ground? which they believed would leave the impression that the area was not reclaimed. BGC has been conducting progressive reclamation at the site. Some local residents from both soums have visited the mine to see the reclamation process. Most of those who have recently visited the mine know about the reclamation work, but the respondents believe that none of them know any details about BGC?s strategy for closure. Some elements of the BGC closure plan were discussed with the central and soum governments, however nothing has officially been presented to the community. It became evident from the field visit that both Bayangol and Mandal Community Relations Officers also did not have adequate levels of information about the upcoming closure and seemed unprepared to respond quires related to the closure of the mine. The role of the CRO is to function as a conduit of information and to help clarify and deliver information to the different groups operating within the soums. Ideally it is also part of the CRO?s role to identify areas where a more specialized team would be able to deliver / clarify issues. As such, in the case of the herders and farmers fearing residual pollution and contamination associated with the closure of the mine, it would be the CRO?s role to identify and communicate such concerns to BGC. Regarding survey Question 2.1 (Figure 11) that assessed perceptions with regard to whether BGC has enough people to manage community matters, it was found that while in Bayangol the average response was 5.17 with a standard deviation of 2.61, in Mandal the average was 4.52 with a standard deviation of 3.87. ANOVA tests were conducted and no significant difference was found between the responses of the groups analyzed. These results indicate that the high standard deviation shows no consensus among the survey participants. In addition to that considering the modest average scores obtained in the survey combined with the results from the interviews it can be concluded that more people are necessary to address community issues. \t ? 75 Figure 11 ? Boxplot of the Answers Scores for Question 2.1 for Groups C, G and MC - \"The mining company has enough people (company representatives) to adequately manage all community related matters.\" Table 22 - Comparison Between Bayangol, Mandal and UB Between the Responses for Question 2.1 Element 2: Presence ? Sub-Element: Presence in the Field Question 2.1 ? The mining company has enough people (company representatives) to adequately manage all community related matters. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 5.17 4.52 - 5.75 5.73 - 7.50 7.0 6.43 Std. Deviation 2.61 3.87 - 2.63 2.83 - 2.29 0 2.77 Figure 12 - Detailed Analysis of the Responses Provided by Mandal Residents to Questions 2.1 Upon closer analysis of the responses in Mandal, it was noted that 2 individuals out of 25 indicated ?neutral/no opinion? and that 5 individuals indicated that they ?strongly agree? with the statement, 0-4 5 (No Opinion) 6-8 9-10 Mandal 12 2 6 5 0 2 4 6 8 10 12 14 Number of Survey Participants Community Responses - Mandal \t ? 76 attributing to the higher score on the Likert scale. However, 12 of the remaining 18 responses ranged from 0 to 4, suggesting that these respondents disagree with the statement that Mandal has enough people to address all community matters. During the group sessions, participants expressed some frustration regarding not having access to a more effective feedback mechanism whereby complaints, requests and/or suggestions made by community members could receive an appropriate and timely response from BGC. This response is in line with the suggestion that in Mandal there is a shortage of CROs or official company representatives working on key community concerns with regard to BGC. The suggestion that there are not enough CROs or official company representatives working on issues that are relevant to the community makes sense if one takes into account that Mandal soum has 25,000 people and that even though there is another CRO in Mandal, his role is essentially to oversee the Tunkhel area (near Gatsuurt) that comprises 4,000 people. The situation, and thus the complaints, can also be considered a consequence of the many and varying responsibilities held by the CRO, which may be preventing the CRO from performing her job to full capacity. As indicated earlier, both individually-interviewed local citizens and those who attended the group sessions expressed that they were familiar with the CRO and her position. However, they also expressed that they did not know the company Community Relations Manager (CRM). Although according to both the CRM and the CROs, the CRM visits both soums regularly, these visits are short and are mostly related to a specific event / activity. Having BGC increase its presence in the community by hiring more CROs and increasing the presence of the CRM in the communities would be useful from at least three points of view: 1) it would provide more guidance and support to the CROs; 2) it would be easier to identify and address issues and challenges raised by the local citizens and government officials; 3) it would enhance the quality of information shared, thus reducing the fears and misperceptions associated with the closure of the mine. 6.1.1.4.3. Participation Although the respondents generally indicated that community members were motivated to participate in community meetings to discuss the future of the community, they suggested that there are not enough opportunities for them to participate and provide input because the same people (to the exclusion of others) are repeatedly invited to attend the meetings. The establishment of a Joint Working Group (JWG) and the scheduling of relevant activities run by this group are widely seen as a positive and legitimate use of time and resources. Nevertheless, it has been noted that closer attention needs to be focused on ensuring the JWG?s proper engagement and to making sure that the JWG commits to a broad level of community participation with all relevant community groups. As it stands presently, JWG decisions with regard to fund allocation are made by a small group that keeps close relations with the local government. In fact, complaints were made indicating that decisions regarding Soum Development Fund investment are now based primarily on the priorities of the local governor. \t ? 77 In addition, the local population perceives (Question 3.6) that little effort has been made by the JWG to reach out to minority groups such as elders, women and youth with regard to their participation in community meetings. This situation was evidenced from the survey results as well as from the group sessions and interviews. Figure 13 - Boxplot of the Answers Scores for Question 3.6 for Community Group - \"The mining company targeted minority or vulnerable groups such as elders, women and youth to participate in community meetings\" With regard to Question 3.6,the respondents from Bayangol, who combined scores resulted in an average of 2.67 points, saw the situation in a more negative light. In contrast, the responses from Mandal residents yielded an average score of 3.48. It is evident that the situation needs to be considered further. Table 23 - Comparison Between Bayangol and Mandal Responses to Question 3.6 Element 3: Participation ? Sub-Element: Mobilization Question 3.6 The mining company targets minority or vulnerable groups such as elders, women and youth to participate in community meetings. Category: Community Bayangol Mandal Average Std. Deviation Average Std. Deviation 2.67 2.53 3.48 3.03 There are established minority organizations such as women?s, senior?s and youth organizations in both soums. Communicating with these groups and inviting their participation would be a positive method through which to disseminate information, eliminate misperceptions and engage more people. This becomes particularly important within the context of the mine?s closure since members of these groups who participated in the group sessions expressed anxiety and expectations regarding the closure. Specifically, the youth representatives who participated in the group sessions articulated concern regarding the economic impact of mine closure on the job opportunities available to young people. Furthermore, seniors also expressed concern in relation to the potential impact of the closure on the environment, and additionally expressed fear that artisanal miners (?ninja? miners) would trespass on the \t ? 78 Boroo mine site in search of any leftover gold, a situation which could create further detrimental impacts on the environment. The majority of people who were interviewed and who participated in the survey were outspoken, inquisitive and curious to know more about a variety of topics associated with mine closure. Additionally, survey participants indicated that they felt comfortable sharing their ideas at community meetings. Despite this, and as can be seen in the graphs below, a low score was obtained regarding the manner in which the company takes the suggestions made by the community into account: Figure 14 - Boxplot of the Answers Scores for Question 3.14 for Community Group - \"I feel that my ideas and suggestions are taken into account by the mining company.\" \t ?Table 24 - Comparison Between the Responses Given by Bayangol and Mandal to Question 3.14 Element 3: Participation ? Sub-Element: Empowerment Question 3.14 ? I feel that my ideas and suggestions are taken into account by the mining company. Category: Community Bayangol Mandal Average Std. Deviation Average Std. Deviation 3.08 2.66 3.20 3.36 A closer examination of the community responses to the Question 3.14 shows that out of the 9 respondents in Bayangol, only two individuals marked scores equal to or above 6. The remaining 7 individuals chose scores between 0 and 4 points, indicating poor judgment about the BGC initiatives. Similar results were obtained in Mandal, where the majority of responses of the 25 responses scored below 5 points on the 0-10 Likert scale. The plot below Figure 15 depicts the distribution of the responses. \t ? 79 Figure 15 - Detailed Analysis of the Responses Provided by Bayangol and Mandal Residents to Question 3.14 It is clear from both the survey results and the interviews that community members want to have their voices heard and that they would like to participate to a greater degree in the decision-making process regarding the plans for closure. Several interviewees pointed out that there has historically been no consultation or communication from BGC to the general public regarding where the Soum Development Fund has been spent, and when the projects financed by the SDF reach their conclusion, no comprehensive report has been provided showing spending details. In this regard it is important to note that, despite the comments made by community members in relation to the lack of public consultation and participation in the decision making process, Bayangol soum distributed a survey in late July 2012 asking community members? opinions and input regarding where the SDF for 2013 should be invested. However, although this is a positive initiative, it does not ensure the full participation and empowerment of individuals since mechanisms were not put in place to ensure that herders and those living in more remote areas had the opportunity to respond to the survey. Such an initiative can indeed create opportunities for engaging community members; however transparency is crucial and it is important for the SDF Committee to report back to the community on the survey results and to disclose whether or not the local government will implement the suggestions made by the community. Were a proper feedback system put in place, a greater number of community members who are interested in participating and engaging in community matters would come forward, with the whole community gaining an increased sense of participation and ownership over their future. Community engagement does not only mean engaging local citizens in community activities. It also involves engaging other stakeholders, and in some cases facilitating the participation and engagement of other local organizations. In Mandal for instance, there are other business enterprises such as a vodka factory, a brick factory, an expanding logging industry and the railway. These organizations can also become part of the network for supporting and promoting community development, and they would also benefit from doing business locally. 0-4 5 (No Opinion) 6-8 9-10 Mandal 15 5 3 2 Bayangol 7 3 2 0 0 2 4 6 8 10 12 14 16 Number of survey participants Community Responses \t ? 80 From the interviews, it was learned that in the late 1990s a local tailor shop supplied gloves to the railway company some years ago. This situation was seen as an opportunity to support the local economy and create more jobs. This however, only happened once. Currently, a larger company from UB supplies all the uniforms for the railway?s employees. Purchasing locally and building capacity within existing local businesses is also another way to contribute to the development of the local communities. Both government and BGC could function as catalysts in the process of engaging the local community and other organizations. BGC?s facilitation of a dialogue among local organizations could be a positive way to engage and strengthen the local business network. Such an outreach effort would also be in alignment with the Boroo DFAIT project, in which it is stated that BGC will engage other institutions in the CSR effort. The tailor shop case is also an interesting example of capacity building and a successful local economic development project. An international NGO provided training for a number of women immediately following the time when Mongolia embraced democracy. Currently, one of the graduates of this training program employs 13 other women and supplies uniforms to the local schools as well as sporadic tailoring services for the community. She revealed that the business does not generate enough profit for her to make her living exclusively from the business, and that she relies on her husband to supplement the household income. She added that the most important part of the venture has been the opportunity for generating income for 13 other people who would otherwise not have any other source of income. During the interviews and field work it was learned through the CRO that BGC was scheduling a visit to the tailor shop to evaluate the quality of their products, with the ultimate goal of employing the tailor shop as a supplier to BGC. This case illustrates the vital role played by the CRO. It would be beneficial if more business opportunities were identified and if the CRO could play a significant role in identifying local entrepreneurs. It is expected that if the tailor shop becomes a supplier for BGC, a positive impact on the community would ensue. This situation however is not sustainable since the company is winding down its operations and will eventually close. On the other hand, if other local organizations such as the railway or spirit factory are engaged in the process, the lifespan of this tailor shop could be extended and possibly expanded, thus supporting an even larger number of local families. Some study participants stated that they are surprised and disappointed that the pits will remain open after the mine is gone. A large majority of local people expressed that they do not know enough about the closure, and one local environment inspector bluntly said that because BGC is going to be the first hard rock mine to be closed in Mongolia, he does not have (and he believes this is also the case with other government inspectors and officials) sufficient information or training to guarantee his job will be performed in accordance with the highest standards. Aware of this situation, and as part of the BGC DFAIT project which has as one of its goals to ?Train Staff, Local Government Leaders, Community and Industry,? BGC invited government officials from the central government in UB to attend a mine closure conference in Canada in 2011. In addition, visits to mine sites \t ? 81 were organized as part of a strategy to educate and build capacity within the government in relation to mine closure. Additional work needs to be done, as more people in the local government also need to be educated. The need for education is surely not limited to government officials and inspectors. During the interviews, it became clear that none of the CROs were aware of the details regarding the closure of the mine. The CROs acknowledged that it was positive that BGC supported them to attend a conference on community relations in mining in UB, but clearly more needs to be done in the process of educating all stakeholders regarding the closure of the mine. 6.1.1.4.4. Planning Planning, in the context of mine closure, refers to undertaking a baseline study that would include inventorying community assets, and gaining an understanding of the potential social and economic impacts that closing a mine would bring to all stakeholders, particularly the local communities. Additionally, planning entails the process of developing a collective vision of how the community will look like after the mine is gone. These steps would be followed by the creation of design projects that would be developed and implemented by the community. The results of these projects would then be measured considering a set of performance indicators developed by all the stakeholders in a participatory process. Finally, the planning process requires that financial and technical resources are made available and these resources ideally should come not only from one source, but multiple sources, including the local and central government and other stakeholders as well as the mining company. BGC is present in the community and maintains a close relationship with the soum government. Furthermore, Boroo participates in the Joint Working Group (JWG) whose goal is to collectively decide where to invest the Soum Development Fund. The intent of the establishment of the SDF is to promote community wellbeing and to foster local economic development. Historically, the majority of investments made in both soums were directed towards the construction of buildings (the Governor?s Building, a sports center, cultural center, and a sanatorium) and infrastructure (roads and hospital). Relatively little of the money went into investing in the promotion of local economic development. It is important to note however, that some local economic initiatives have been implemented in Tunkhel (near Gatsuurt), as is the case of the dairy factory which is a co-operative that was created in 2012, and which engages 20 herders from the region. The microcredit funds have been in place for some years and have a good track record of lending money to local people, however, the benefits derived from the microcredit funds are limited and do not contribute to creating sustainable jobs. Furthermore, the way in which the microcredit is set up is problematic as it does not encourage people to borrow money, particularly if the loan is over 1 million MNT (~ USD 700) as in the case of Bayangol. In this particular instance, the local bank responsible for managing the loans demands many requirements (collateral) that only a few people in the community are able to comply with. On the other hand, it is an easier process to borrow a small amount of money (under a 1 million MNT), but the impact and sustainability of these projects are limited. \t ? 82 As indicated earlier, some participants in the interviews and group sessions believe that, despite the process of decision-making with regard to where the SDF should be invested being somewhat participatory as a result of its going through the Joint Working Group, the decisions that are made are limited to a small group of individuals and the established process does not allow general public participation. Local citizens who participated in the survey were vocal in saying that neither of the soums ?need another building.? In fact, they suggested that what is needed is a ?program that creates jobs.? This view was also captured in the survey distributed in Bayangol by the CRO and local governor which asked for suggestions from the community on where the SDF for 2013 should be invested. Although local citizens have acknowledged that they benefited from the infrastructure investments made with the money donated by BGC, it is clear that there are different perceptions regarding how the SDF should be managed and spent. The survey also corroborates the findings from the interviews. When asked for their perceptions regarding whether the mining company understands the community?s most critical social issues (Question 4.1), the residents of both soums presented low scores (Bayangol = 4.42; Mandal = 4.48) while government representatives saw things in a more positive light (Bayangol = 7.75; Mandal = 6.73). Both communities believe that the major challenge is to figure out how to create jobs and strengthen economic activity in the region. Table 25 - Comparison Between Community and Government Responses to Question 4.1 Element 4: Planning ? Sub-Element: Asset Mapping Question 4.1 The mining company understands the community?s most critical social issues. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.42 3.73 4.48 3.95 7.75 2.11 6.73 1.76 Figure 16 - Boxplot of the Answers Scores for Question 4.1 for C and G - \"The mining company understands the community's most critical social issues\" \t ? 83 For both locations, government representatives provided consistently higher responses than did community members. After conducting a t-test it was found that in Bayangol the difference between government and community scores is statistically significant (p-value 0.04 < 0.05). The views of the local government diverge substantially from those of the community. This may be the result of the consistent dialogue and close relations that the government keeps with the company, thus allowing for a better flow of information and a more in depth understanding of the issues, challenges and priorities. It cannot be denied the possibility of the responses given by the government be biased, since the government plays a key role in deciding where the SDF, provided by BGC is invested. In addition to that the local government receives the SDF donation from the company and attributing low scores to this question could be interpreted as criticizing the company which could be counter productive and affect the good relations with BGC. Another interesting result from the survey relates to the perceptions of people concerning the local leaders (Question 4.2). There is a difference in opinion between the two soums regarding how well the company knows the local leaders. An interview held in Bayangol can be used to illustrate the different opinions between the two soums. A Bayangol government official reported that he perceives that there is a much stronger and more mature relationship between BGC and Mandal soum, and that as a result, Mandal presently has a ?better infrastructure than here in Bayangol.? Furthermore, since the Gatsuurt property is located in Mandal soum, BGC wants to establish and maintain a very strong and positive relationship with Mandal. This situation also corroborates the general perception that Mandal has stronger bonds with BGC than it does with Bayangol. Figure 17 - Boxplot of the Answers Scores for Question 4.2 for Community and Government - \"The company knows the local leaders well.\" \t ?\t ? \t ? 84 Table 26 - Comparison Between the Responses of Community and Government from Bayangol and Mandal for Question 4.2 Element 4: Planning ? Sub-Element: Socio-Economic Impact Assessment Question 4.2 The company knows the local leaders well. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 5.83 4.36 8.32 3.06 9.63 0.48 7.00 2.73 When a comparison analysis was conducted between the scores responses of community and government members in Bayangol and Mandal to Question 4.2 above, p-values of 0.02 < 0.05 and 0.05 < 0.05 were found respectively, indicating that a significant difference was found in the scores given by both groups. In the survey, there is a set of questions (Questions 4.17 and 4.18) that assessed the level of participation of youth, seniors and women in the design of community projects. Very low scores were obtained, particularly in the case of youth and senior participation. This situation was confirmed during the group sessions and interviews where youth and seniors groups indicated that although they acknowledged that they had benefited from the investments made in the community, they were not provided with any opportunities for participation and feedback. Based on the responses in the graph below, it can also be inferred that the company also acknowledges there is a low level of youth participation. Figure 18 - Boxplot of the Answers Scores for Question 4.17 for C, G and MC - \"There are a representative number in terms of the overall community of youth people (age between 16 and 20 years old) involved in the design of community projects.\" \t ?\t ? \t ? 85 Table 27 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 4.17 Element 4: Planning ? Sub-Element: Project Design Question 4.17 There are a representative number in terms of the overall community of youth people (age between 16 and 20 years old) involved in the design of community projects. Bayangol Mandal C G MC C G MC Average 3.33 6.63 5.17 2.68 4.91 3.0 St. Deviation 2.9 2.60 2.18 3.22 2.43 0 After conducting ANOVA test to compare the responses given by the community, government and mining company it was found there is significant difference between the responses given by these groups yielding a p-value of 0.04 < 0.05. As it can be seen in the box-plot, the government provided consistently higher responses than did the other two groups. In the case of Mandal, a t-test was also conducted to compare the scores given by the community and government participants. A p-value of 0.03 < 0.05 was found indicating that there is a statistically significant difference between the responses given by these two groups. Following the same pattern and as depicted in the following graph, survey participants believe that elder participation (Question 4.18) in the process is also inadequate. Figure 19 - Boxplot of the Answers Scores for Question 4.18 for C, G and MC - \"There are a representative number in terms of the overall community of older people (older than 60 years old) involved in the design of community projects.\" \t ?Table 28 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 4.18 Element 4: Planning ? Sub-Element: Project Design Question 4.18 There are a representative number in terms of overall community of older people (older than 60 years old) involved in the design of community projects. Bayangol Mandal C G MC C G MC Average 2.92 6.50 5.25 4.16 4.91 5.58 St. Deviation 2.53 2.00 0.43 2.89 2.43 1.11 \t ? 86 When comparing the three groups in Bayangol, the boxplot reveals that community responses are much lower (median = 2.5) than the responses from the government and the mining company. The community subjects presented a wider range of responses when compared with the government and mining company groups. This suggests that within the community participants there is no consensus regarding Question 4.18. Despite this, based on the lower scores it can be concluded that the respondents agree that there is not enough involvement of elders in the design of community projects. To support these findings, after applying an ANOVA test to compare the scores given by community, government and mining company in Bayangol a p-value of 0.001 was found, suggesting that there are significant differences between the community, government and mining company?s responses. As mentioned earlier in the planning process, it is critical to establish indicators that will be used to measure the results of the investments and projects implemented. According to the survey results, local citizens believe that there have been no indicators established to measure the outcomes of the investments made in the soums. The government perceives the situation in a more positive manner. Although BGC keeps record of the figures invested in the communities, no specific set of indicators have been put in place to assess the results of the investments made in the soums. Figure 20 - Boxplot of the Answers Scores for Question 4.21 for C, G and MC - \"The mining company has defined clear indicators to measure the results and progress of the projects they have implemented / sponsored. \t ?Table 29 - Comparison Between Community and Government Responses to Question 4.21 Element 4: Planning ? Sub-Element: Indicators Question 4.21 ? The mining company has defined clear indicators to measure the results and progress of the projects they have implemented / sponsored. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 2.92 5.20 - 6.75 5.73 - 5.5 4.0 5.14 Std. Deviation 2.98 2.86 - 2.95 2.49 - 2.5 0 2.47 \t ? 87 In the planning process, the availability and management of financial resources is critical to fostering community development. For many years, BGC has been making investments in the community through three approaches: donations, the Soum Development Fund (SDF) and microcredit. Donations are usually punctual and sometimes not directly linked to the sustainability of the communities, as in the cases when the company donated money to support a cultural event where a Mongolian student participated in an international music competition, or when money went to supporting athletes to compete abroad. Since 2006, BGC has received 403 proposals for donations and 86 were approved (TERI, 2012). On the other hand, as envisioned by the company, the SDF should be used to promote the wellbeing of local citizens as well as to promote sustainable development of the communities. Although Mandal and Bayangol government officials and community representatives agree that SDF money should be spent towards promoting the sustainability of communities, the majority of the investments made to date through the Soum Development Fund have been related to building public infrastructure that the governments are now having difficulties in maintaining. One such example is the case of the Sports Centre in Mandal that is operating understaffed because sufficient budget has not been allocated to hire an adequate number of staff members. From the interviews with Boroo management, it is clear that the company is aware of the importance of investing in initiatives that will foster local economic development and generate jobs. With this in mind, two projects have been implemented: the vegetable project and the dairy plant. The dairy plant, for instance, is a cooperative through which 20 herders were trained how to produce dairy products such as cheese, yogurt, butter, etc. These are concrete initiatives that can direct the community onto a sustainability path. However, some people have questioned why these new ventures are located in the Tunkhel area near Gatsuurt and not in the Bayangol or Mandal central areas, since these are the areas where people/groups will be most affected by the closure of the mine. This particular initiative makes sense as an important public relations strategy and also to strengthen the company?s social license to operate if the Gatsuurt project is approved. It may also indicate that the company is committed to supporting local community development, even prior to commencement of its operations there. In general, the company has put into place a definition and a process for allocating resources through its donations. An important task relates to how to invest and manage these funds appropriately in order to promote local community economic development. The interviews revealed that the government, local citizens (community) and the company are on the same page regarding directing the investments towards initiatives that will generate jobs. However, it is also clear that no meaningful actions have been undertaken to benefit the two communities that will be most affected by the closure of the mine. The third investment approach made by BGC is through microfinance. In relation to this, it was found that each soum has established its own rules regarding the dispersion of the microcredit funds. In Mandal, local citizens are allowed to borrow a maximum of 500,000 MNT (~ USD 360). This can be considered to be enough money to support local citizens who want to invest the money in a home / family type of \t ? 88 plantation / crop enterprise, but is limited when it comes to supporting other projects that require more resources. In Bayangol the microcredit system is more sophisticated. There are two types of loans available, one, up to 1,000,000 MNT (~USD 700) and another one up to 5,000,000 MNT (~USD 3,600). An arrangement has been made with a local bank to manage the microcredit funds. This arrangement includes collecting any overdue payments and making sure that the original microcredit money is not depleted. The Citizens Hural of Bayangol approved ?principles and procedures? for the microcredit fund. As a result a steering committee was established where its members are responsible for the initial screening of the loan applications. This committee consists of 9 members (Table 30): Table 30 - Steering Committee Composition of Bayangol Soum 1- Soum governor 2- Head of citizens? representative hural 3- People?s party 4- Democratic party 5- Women?s Federation?s soum branch 6- Citizens? representative ? soum citizen 7- BGC CEO 8- BGC Government Relations 9- BGC Community Relations Manager Note: Source BGC For projects proposed by local citizens who need financing up to 1,000,000 MNT, the Bayangol soum governor makes the decision whether or not the loan should be approved. In these cases, some sort of security is also required, and typically television or home appliances are registered as collateral and can be collected in case of non-payment. In relation to larger amounts of up to 5,000,000 MNT, a Joint Working Group formed by 6 company representatives and 9 local authority representatives (Table 31) evaluates and pre-approves the projects. The approved project is then taken to the bank, and after complying with the bank requirements, the borrower can get the money at a low interest rate. Table 31 - Joint Working Group Composition of Mandal Soum On Behalf of BGC On Behalf of the Local Authorities Director of Government Relations Governor of Mandal Soum Community Relations Consultant Chairwoman of the Mandal Soum Hural Community Relations Manager Governor of Tunkhel Bagh Sustainability Director Governor of Kherkh Bagh Environment Superintendent Environmental Inspector of Mandal Soum Director of Human Resources Member of Mandal Soum Hural Governor of Bayangol Soum Environmental Inspector of Bayangol Soum Speaker of Bayangol Soum Hural Note: Source BGC BGC is improving its bookkeeping system and a proper recording of the loans disbursed are currently in place. This was made possible also because the local government now keeps a dedicated person responsible for bookkeeping in Bayangol. This will be a good source of information that could help in establishing strategies to strength and support the creation of small businesses in the area. \t ? 89 Since 2006, and in accordance with the Community Investment Assessment commissioned by BGC and conducted by a local consulting organization, 1127 micro loans were made available to community members. Of these, 837 loans were disbursed in Bayangol and 290 loans were provided for residents from Zuunkharaa and Tunkhel, in Mandal. Although the population of Mandal (25,000 inhabitants) is 5 times larger than that of Bayangol (5,000 inhabitants), Mandal disbursed 4 times less loans. In terms of amount disbursed, the ratio is similar, where Bayangol disbursed approximately 800,000,000 MNT (US $570,000) and Mandal lent approximately 200,000,000 MNT (US $140,000). These numbers again raise questions regarding the effectiveness of microcredit and suggest that the program needs to be reviewed. Approximately 70,000,000 MNT (~ US $50,000.00) were lent in 2011 and the delinquency rate was around 7%. There are cases where the same borrower accessed funds more than once. According to a company representative, about 10% of the money borrowed is either not properly invested or is used towards a different project. Another interesting finding associated with the microcredit funds is that Bayangol has decided to direct approximately 56,000,000.00 MNT (US $40,000) from the SDF every year and add it to the soum microcredit fund. The Bayangol governor made this decision and currently more than US $200,000 is available for micro loans. On the other hand, the only money available for microcredit in Mandal comprises the initial US $40,000 which was donated by BGC. During the interviews, individuals from both soums criticized the microcredit system. In Mandal, people believe that 500,000 MNT (US $350) is not enough money, while in Bayangol people say that it is too complicated to get a loan as a result of the higher requirements from the bank. Three main points were raised during the interviews regarding this particular model of microcredit. The first point is that residents from Mandal believe that not many people know about the microcredit funds. This may help in explaining why there are not as many borrowers as in Bayangol. Secondly, there is a general belief there are too many requirements imposed by the bank (in Bayangol), rendering it unrealistic for ordinary people to borrow money. Finally, a Bayangol government official commented that the local bank is not concerned about the microcredit loaning requirements being too stringent, as it ends up offering its own products which are believed to come with fewer requirements, and at higher interest rates. It is evident that the microcredit funds need to be reexamined in such way that will enhance accountability, increase public participation in the decision making process, maximize the potential to generate income for citizens and create jobs. The intent of all initiatives sponsored by BGC is to direct the two soums onto a sustainable development path where the local people will be better off after the mine is closed. Projects such as the microcredit and the Soum Development Fund are believed to be initiatives that will generate such results. However challenges have arisen during the implementation process and have, to this point, diminished the potential positive impacts that the initiatives could have on people and on the overall community. These challenges relate to the need to improve communication and to engender broader community \t ? 90 participation. As such, there is a need to use the SDF more effectively towards initiatives that can create jobs instead of building infrastructure facilities, and to revise the microcredit requirements to more significantly benefit the communities. As noted during the interviews with the soum Governors, BGC keeps a very positive relationship with the governments of both soums, and it is clear that the governments appreciate this and see BGC as a good partner. On the other hand, this close relationship with the local governments also provides the company with additional challenges. In fact, one of the main obstacles related to the funds provided by BGC concerns the role performed by the local governments with respect to how / where to direct the SDF moneys. People perceive that at the end of the day, the local governments from both soums are the ones making the decisions on where and how the SDF money should be invested. This is despite the fact that there exists a Joint Working Group which was established to participate in the decision-making process of how / where these moneys should be spent. It was consistently revealed in the survey and interviews that the local citizens believe that the money should be invested in initiatives that will create job opportunities and that the government is not taking the community?s wishes into consideration. As pointed out earlier, the majority of SDF investments were made towards building infrastructure. During the interviews it became evident that the local government had not planned or budgeted for the additional expenditures it would take to operate and maintain the new facilities. This is the case with regard to the Sports Centre in Mandal, where the facility remains understaffed because there is neither a budget to maintain the building nor to support an adequate number of employees to run the facility. Although the Sports Centre is officially a government building, some people believe that BGC should be responsible for the maintenance of the facility. This illustrates how lack of planning, budgeting and communication creates a negative perception towards the company and the government, and attributes responsibility to BGC whereas in this case, the maintenance of the building should clearly be a government responsibility. 6.1.1.4.5. Performance As indicated earlier in the planning section, the survey shows that not many women or elders have been involved in the planning process. A comparable situation was found when considering the implementation phase of community projects and it is clear from the interviews and group discussions that people from these groups would like to be more engaged in both phases. \t ? 91 Figure 21 - Boxplot of the Answers Scores for Question 5.4 for C, G and MC - \"I think an appropriate number of older people are involved with the implementation of community projects.\" \t ?Table 32 - Comparison Between Community, Government and Company Responses for Question 5.4 Element 5: Performance ? Sub-Element: Implementation Question 5.4 ? I think an appropriate number of older people are involved with the implementation of community projects. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 3.17 4.2 - 6.5 5.27 - 5.5 4.0 5.86 Std. Deviation 2.54 2.84 - 2.40 2.60 - 2.69 0 2.10 Community interest in participation could be taken by BGC as an opportunity to enhance the engagement of these particular groups and to educate people on topics related to mine closure. It could also help address some of the questions and apprehension related to the closure of the mine. As indicated in boxplot below (Figure 22), when local citizens were asked for their perceptions regarding whether BGC monitors the development and results of the projects they sponsor (Question 5.6), respondents from Bayangol presented lower scores (mean = 3.50) than did people from Mandal (mean = 7.00). These perceptions are somewhat consistent with the reality of the situation. Although BGC does not have a very comprehensive mechanism through which to monitor and evaluate its impact on the communities and on the projects sponsored by the company, some initiatives have been undertaken. A couple of examples include the case of the Community Investment Assessment conducted by a local consulting group, and the creation by the Bayangol Government of an administrative position (Soum Development Officer) in Bayangol to record and monitor the microcredit moneys lent to the Bayangol community. \t ? 92 Figure 22 - Boxplot of the Answers Scores for Question 5.6 for C, G and MC - \"The mining company monitors the development and the results of the projects they sponsor.\" \t ?Table 33 - Comparison Between Community, Government and Company Responses for Question 5.6 Element 5: Performance ? Sub-Element: Monitoring Question 5.6 ? The mining company monitors the development and the results of the projects they sponsor. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 4.17 5.8 - 6.75 7.0 - 4.75 10.0 5.43 Std. Deviation 4.04 3.99 - 3.23 2.34 - 3.27 0 3.29 Furthermore, Boroo agreed to participate in this study as they see this research on socio-economic mine closure as an additional opportunity through which to obtain information about mine closure and the perceptions of people regarding its performance. There is opportunity for improvement in relation to the establishment of performance indicators, particularly as they relate to measuring the results of the community investment made by BGC in the two soums. For example, these indicators should not only measure financial aspects but also socio-economic elements such as the number and nature of jobs created from the use of the SDF. Despite the fact that, historically, the volume of microcredit loans disbursed in Mandal has been smaller when compared to Bayangol, establishing a similar position (of a Soum Development Officer) in Mandal could also be fruitful for the company. Furthermore, the role of the Soum Development Officer(s) could be expanded to include follow-up visits to people who have borrowed microcredit money. These visits could also help in identifying any challenges and problems faced by the loan borrowers while running their businesses. There has not traditionally been any systematic monitoring mechanism in place through which to evaluate the implemented projects. As in the case of the dairy project in Tunkhel, near Gatsuurt where the CRO and the CSR Officer based in UB were assigned to periodically visit the project for monitoring and assessment, there is some evidence that BGC is refining its monitoring process. \t ? 93 Despite these improvements, during the interviews and group sessions people reported that BGC ?is not very good at monitoring the investments? made with the SDF. Furthermore, the recommendations in the Community Investment Assessment report also suggest that BGC needs to improve its monitoring mechanisms. The value of a solid monitoring mechanism is not only to keep records but also to identify business opportunities and to assist in addressing the challenges and obstacles of running a business. Over 60% of new business ventures fail in the first 5 years of operation (United States Census Bureau, 2012). Considering this, putting in place a business counselor or adviser whose role would involve not only monitoring but also, and possibly more crucially, providing guidance and support to the borrowers, could ensure a reduction in the business failure rate. 6.1.1.4.6. Promotion From both the surveys and interviews it became evident that communication is the most challenging element that BGC needs to improve upon. Survey participants were asked their perceptions regarding whether or not BGC shares the results of community projects with local citizens (Question 6.1). As indicated in Figure 23 below, the lowest scores were provided by community members. Figure 23 - Boxplot of the Answers Scores for Question 6.1 for C, G and MC - \"The mining company shares the results of community projects with local citizens.\" \t ?Table 34 - Comparison Between Community, Government and Company Responses for Question 6.1 Element 6: Promotion ? Sub-Element: Sharing / Communication Question 6.1 ? The mining company shares the results of community projects with local citizens. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 4.33 3.80 - 6.75 5.45 - 3.25 10 5.14 Std. Deviation 3.14 3.44 - 2.63 2.35 - 1.92 0 3.52 \t ? 94 The survey also inquired (Question 6.3) if the respondents perceived that BGC shares important information with the local community (Figure 24). Here, as in the previous question, the results obtained were low. These results suggest that the community perceives that BGC does not share enough information. This perception was also corroborated by the interviews, where participants suggested that the company should communicate better, particularly with regard to the closure of the mine and the use of the SDF. In contrast, the scores obtained from representatives of the government and the company were relatively much higher. This ?gap? in perceptions could possibly provoke discontent and future challenges to both the government and BGC. Figure 24 - Boxplot of the Answers Scores for Question 6.3 for C and G - \"The mining company does a good job in sharing important information with the local community.\" Table 35 - Comparison Between the Responses Given by C, G and MC from Bayangol and Mandal for Question 6.3 Element 6: Promotion ? Sub-Element: Sharing / Communication Question 6.3 ? The mining company does a good job in sharing important information with the local community. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.25 3.61 2.36 3.14 5.25 3.6 4.45 2.64 Through the surveys and interviews it was learned that communication improvements has been made in some areas throughout the years. One example involves the creation of the CRO positions. Nonetheless, particularly with regard to the mine closure, much more needs to be done. A local government official expressed his concern when he said that: at the early stages of the mine, BGC was very pro-active and effective in sharing information about its operations, number of jobs the mine would create, the benefits of having a mine in the region, etc. Throughout the years these communications faded out, but we hope that this will improve and that the local government will demand a better communication process particularly regarding the closure of the mine. \t ? 95 Some people believed that the 23-day strike in 2009 was a consequence of this lack of communication. According to a union representative, two particular issues were the driving forces for the strike. The first one was that Mongolian employees were unhappy, as expatriates who were perceived to be in positions that were in line with their own positions were being paid higher wages. The second critical issue that was dealt with during the strike was regarding a misunderstanding about the life of the mine; at the time, some people believed (and the general public still believes) that the mine would remain in full operation until 2015-16. The workers became disappointed and frustrated when they found out that operations would slow down or cease much sooner. According to BGC, the issue was that according to the 2015-16 vision of the lifespan of the mine, activities to do with reclamation and decommissioning were considered to be included. According to this vision of BGC, the mine would remain technically and legally open, however it would not be in production and activities related to remediation and the physical closure would require the hiring of substantially fewer employees. Since 2009, the employees have been given more information about the expected lifespan of the mine. However, most ordinary people, government representatives as well as BGC CROs say they do not know enough about the closure of the mine. This lack of information clearly shows that misperceptions are being perpetuated amongst local citizens. For instance, many people today believe that the mine will be operational until 2017 or 2018 and that the present number of workers will be kept on until the mine shuts down. The general public, and even government officials, do not seem to be aware that the processes, methods and activities taking place at the mine site (e.g. processing stock piles, heap leaching) will determine the number of employees needed. In the case of BGC, considering that the ore is almost depleted, it is expected that the number of employees will steadily continue to decline. Another important point that will need to be addressed by BGC relates to the growing perception among local citizens that the mine?s closure will result in pollution and environmental damage, despite the fact that is not any concrete evidence of such problems taking place in the past. In addition, people have recently learned that the mined pits will be left open. This situation is causing substantial unease and concern, and as a result, has the potential to be a catalyst for spurring on further problems, mainly due to the lack of openly available information about the closure of the mine, that could be promptly addressed if a more efficient communication strategy was in place. As mentioned earlier, Mandal soum is divided into nine baghs and Bayangol soum is divided into three baghs. Six bagh governors from Mandal responded that they felt that they did not have enough information about the mine closure. Similar results were found in Bayangol where three out of three bagh governors felt that they did not possess enough information about the closure. Another point that has caused concern to some local residents relates to the possible arrival of illegal artisanal miners. People fear that after the closure, artisanal miners will trespass and take over Boroo?s site area. There is record of such situation in different parts of the world as in the case of the Mabuki Diamond Mine in Tanzania where in late 1970s artisanal miners trespassed the property in search of left over diamonds. \t ? 96 It is estimated that over 100,000 artisanal or ?ninja? miners exists in Mongolia (Swiss Agency for Development and Cooperation, 2013). Ninja miners emerged in Mongolia in the 1990s as an ?alternative form of income generation for thousands of people in response to persistent and widespread poverty. The majority of the artisanal miners were herders who lost all their livestock and were left with little choice but to seek other forms of economic survival? (Swiss Agency for Development and Cooperation, 2013). A further point that is making local people uneasy relates to the recently approved license allowing BGC to re-start a heap leaching process. There is currently a stack containing 7 million tonnes of material waiting to be leached and another stack of 7.5 million tonnes will be built. The grade in those stockpiles is below 0.8 grams per tonne and it will take about 3 years and 45 employees to leach the 2 stockpiles. A 40% to 45% recovery is expected. People do not understand the process and are afraid of the possibility of contamination as well as the risks that using cyanide could impose on the environment, animals and on human beings. In relation to the financial support provided by BGC, some people said they had been unaware of the Soum Development Fund and the microcredit program. Some people knew about the program but did not know how the funds were used. These findings are corroborated by the results of the Assessment of the Community Investment which was conducted by the Training Evaluation Research Institute in March 2012 (TERI, 2012). The development of a more efficient way to show how the SDF funds were spent would reflect well on BGC and could bring more transparency to the whole process. Another aspect regarding the need for communication was also highlighted when local citizens were asked whether they ?believe that the mining company always asks for the opinion of the community regarding important matters that affect the community? (Question 6.6). This not only relates to information sharing, but also has to do with involving the community in the process of decision-making. Local people living in mining communities worldwide have expressed criticism and concerns regarding their strong desire and the importance of their participation in decision-making processes on matters that affect them (Kapelus, 2002; Veiga et al., 2001). Figure 25 - Boxplot of the Answers Scores for Question 6.6 for C and G - \"I believe that the mining company always asks for the opinion of the community regarding important matters that affect the community.\" \t ? 97 Table 36 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 6.6 Element 6: Promotion ? Sub-Element: Sharing / Communication Question 6.6 ? I believe the mining company always asks for the opinion of the community regarding important matters that affect the community. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.25 3.14 2.68 2.89 5.25 3.31 4.27 2.93 On the positive side, the overall community acknowledges that BGC has successfully implemented projects that have benefited the community for many years (Question 6.9). Such projects have included the construction of a sports center, a sanatorium and a cultural center. This was expected as a result of the long-term presence of BGC in the region. Furthermore, since 2004, BGC has been involved in sponsoring projects and building infrastructure in both Mandal and Bayangol. Figure 26 - Boxplot of the Answers Scores for Question 6.9 for C, G and MC - \"Mining company projects designed for the benefit of the community have been successfully implemented for many years.\" \t ?Table 37 - Comparison Between Community, Government and Company Responses for Questions 6.9 Element 6: Promotion ? Sub-Element: Sharing / Communication Question 6.9 ? Mining company projects designed for the benefit of the community have been successfully implemented for many years. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 6.25 5.16 - 6.63 6.27 - 6.25 10.0 8.00 Std. Deviation 2.28 3.40 - 3.04 1.54 - 2.17 0 2.07 When the responses of both soums are compared, the average response to this question (6.9 - Table 37) was found to be lower in Mandal (5.16) than in Bayangol (6.25). From the 25 participants from the \t ? 98 community in Mandal, six individuals attributed the highest score in the 0-10 Likert scale, fully agreeing with the statement. Another 10 respondents scored between 0 to 4 points and 6 people scored 5 points, indicating that they either have no opinion or do not know. This situation explains the higher standard deviation scores. The remaining 3 respondents scored between 7 and 8 points. 6.1.1.4.7. Perseverance Historically, BGC has enjoyed an overall good reputation among the communities and local governments it has worked with, and those local citizens who are more active and engaged seem to be very cooperative. The establishment of the CRO positions in 2010 was a very important way through which the company could show its presence in the community and it was also an important way for it to facilitate communication between the company and the community. On the other hand, research indicates that the performance of the CRO could be substantially improved, particularly with regard to engaging and communicating with people who live in more remote / rural areas. There is very little evidence regarding any opposition from the communities to BGC, and the local governments are very supportive of the company. During the interviews, a local branch of an international human rights protection NGO posed some concerns about BGC activities. Nevertheless, the NGO representative did not position herself as anti-mining. The concern was with regard to ensuring that peoples? and workers? human rights are protected. One complaint made by the NGO representative related to the company not being transparent in sharing information about the SDF, and another was made regarding it not being comprehensive enough by ensuring that more people are invited to participate in processes of concern to them. Another criticism that was made during the interviews came from an Artisanal Miners? (ASM) NGO representative regarding the potential of trespassing activities after the mine closes down. As mentioned previously, concern has been voiced that trespassing activities by artisanal miners may take place after BGC shuts down. It is feared that the artisanal miners who operate in the region will come in search of gold to the BGC site, thus imposing environmental as well as health and safety risks to both themselves and to the general community. The NGO representative believes that BGC could work more closely with the NGO and the artisanal miners to train and educate them with regard to technical aspects as well as health and safety issues. This is included in BGC?s DFAIT program which presents general plans to work with and educate ASM about health and safety and environmental issues in mining. As pointed out earlier, another important and growing issue that requires immediate attention from BGC is related to the closure of the mine. There is discontentment and misperception about the closure process, mainly as a result of a lack of communication. Local residents do not like the idea of ?a hole left in the ground.? Additionally there are fears concerning pollution and soil contamination. Other groups also fear that after the mine is closed, artisanal miners who operate in the region will illegally invade the site and start mining the area. All these issues can certainly impact the way the company is seen in the \t ? 99 community, and can also affect the willingness of local citizens to collaborate and participate in initiatives proposed by the company. Resistance may arise, particularly from the local government when / if BGC would propose changes to bring more accountability and transparency regarding the use of the SDF and the disbursement of microcredit funds. It is, however, becoming critical to promote changes that create transparency and that would show that BGC is looking after the community?s overall interests. 6.1.1.4.8. Patience The survey reveals that BGC understands that social change and local economic development take time to produce results (Question 8.2). Figure 27 - Boxplot of the Answers Scores for Question 8.2 for C, G and MC - \"Mining company representatives understand that social projects take time to produce results.\" \t ?Table 38 - Comparison Between Community, Government and Company from Bayangol, Mandal and UB Responses for Questions 8.2 Element 8: Patience ? Sub-Element: Allowing time for effective change Question 8.2 ? Mining company representatives understand that social projects take time to produce results Bayangol Mandal UB C G MC C G MC C G MC Average 3.67 7.13 6.75 5.60 6.45 10.0 - - 7.0 Std. Deviation 2.5 1.76 1.48 3.10 2.19 0 - - 1.93 Applying the ANOVA test resulted a p-value of 0.01 < 0.05, indicating that there is a significant difference between these three groups. Further analysis was conducted and multiple comparisons were used to compare a combination of pairs of groups. When comparing the community responses and government responses, a p-value of 0.03 was found, indicating a significant difference. When comparing government and mining company responses and community and mining company responses, no significant results were found. \t ? 100 During the interviews with the BGC management team, it became clear that BGC management has already initiated the implementation of projects to support the sustainability of the communities, as in the case of the dairy plant in Tunkhel. Divergent voices were heard from within the communities saying that a stronger effort should be directed towards promoting the development of business and strengthening of the local economy to benefit the communities that will be directly impacted by the closure of the mine. The responses to Question 8.2 regarding Patience indicate that all three groups (government, community and mining company) perceive that BGC understands that enough time is needed in order to the projects to produce results. However, although the responses in the survey and during the interviews indicate that respondents acknowledge that BGC knows that community projects take time to produce results, they think there is a lack of desire, commitment and will power on the parts of both the government and company because projects geared towards promoting local economic development should have started much earlier and should have been directed to the areas that will experience the greatest impact as a result of the closure of the mine. 6.1.1.4.9. Passion Although the time spent with the CROs from Mandal and Bayangol was short, it can be said that both CROs are engaged with the work they perform and seem passionate about their jobs. This impression is also corroborated by the survey, where the respondents said that they perceived that the CROs are motivated to do their work. It is interesting to note, however, that the scores attributed by the local government are lower than the scores that represent the perceptions of the community. This may be explained through the findings from the interviews with government representatives who expect that the CROs should play a more pro-active role in sharing information, particularly about the closure of the mine. Figure 28 - Boxplot of the Answers Scores for Question 9.2 for C and G - \"I feel the mining company Community Relations Officers are motivated to do their work\" \t ?\t ? \t ? 101 Table 39 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 9.2 Element 9: Passion ? Sub-Element: Individual passion / motivation Question 9.2 ? I feel the mining company community relations officer are motivated to do their work. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 7.42 2.43 7.80 2.19 7.63 2.34 6.64 1.55 Research subjects were asked whether they believe the company looks for opportunities to develop businesses in the region (Question 9.6 - Figure 29). As indicated in the next plot community members attributed much lower scores than did company and the government representatives, and ANOVA test found a very low p-value which was smaller than 0.01, suggesting there is a significant difference between the three groups analyzed. As seen in the boxplot, the responses from the community are consistently lower than the responses obtained from the two other groups. The analysis of these responses can be divided into a few parts. Historically, with the exception of the microcredit funds that have financed mostly small family economic initiatives, the funds donated by BGC were invested in the construction of infrastructure facilities to the community. The first endeavor geared towards developing new businesses took place when BGC implemented the dairy plant in Tunkhel that was officially launched in August 2012. As indicated in the DFAIT project, Boroo has plans to support more business initiatives and when implemented, these may contribute to changing the perceptions of the local community with regard to this issue. Although supporting the creation of new businesses is seen as a healthy method through which to diversify the local economy and reduce the impact that closing a mine can impose on local communities, business development is not a core activity or the mandate of a mining company. Ideally, BGC should function as an advisor and facilitator rather than being the body responsible for the planning and the implementation of new businesses. As such, the idea of promoting and supporting the creation of an agency or foundation that would be responsible for identifying potential new businesses and providing the support needed to implement such ventures as it will be discussed in the Argentinean case study seems to be a good exit strategy. These types of organizations tend to successfully increase community participation and engagement and build up a stronger sense of ownership among community members. \t ? 102 Figure 29 - Boxplot of the Answers Scores for Question 9.6 for C, G and MC - \"The company looks for opportunities within the community to help develop new businesses in the tow/region.\" \t ?Table 40 - Comparison Between Community, Government and Company Responses for Questions 9.6 Element 9: Perseverance ? Sub-Element: Individual passion / motivation Question 9.6 ? The company looks for opportunities within the community to help develop new businesses in the town / region. Community Government Mining Company Bayangol Mandal UB Bayangol Mandal UB Bayangol Mandal UB Average 3.08 3.56 - 6.0 6.73 - 5.75 10.0 6.71 Std. Deviation 2.75 3.34 - 1.32 2.30 - 2.17 0 1.58 One particular challenge with regard to Mandal is that the CRO holds two additional positions in the community (member of the Hural and Bagh Governor). Without mentioning the potential conflict of interest that these multiple roles could illicit, the time it would simply take to perform these jobs would clearly have an impact on the CRO?s job performance. During the interviews and the time spent with the CROs in both soums it became evident that both CROs are part of the community and that they care about the success of the community. Both CROs saw this present research as an opportunity to augment the work they perform and showed a keen interest in learning more about community development and mine closure. Although Mandal and Bayangol are situated only about 30 kilometers from each other and the CROs meet at special events such as government official meetings or events organized/attended by the company, there are few opportunities for them to work with, learn from, and exchange information with each other. 6.1.1.4.10. Personality It appears that the behavior of the CROs inspires trust and respect to the community residents, but as indicated previously, the short time spent in the community was not enough to form a more solid opinion \t ? 103 about the element of personality. Research participants were provided with the following statement: ?I think the current mining company Community Relations Officer is the right person for the job.? The perception of the government with regard to this statement was very positive as observed in Table 41 and with low standard deviation (0.80), suggesting the government respondents share similar views and attributed comparable scores. The residents of Mandal also shared similar perceptions regarding their CRO, although with a lower average (6.48) and a higher standard deviation (3.31), suggesting that there was a broad array of responses. In contrast, the perceptions of the residents of Bayangol were less positive, with a mean of 4.25 and a standard deviation of 2.65. These scores maybe influenced by the fact for 8 months Bayangol did not have a CRO and the person occupying the position at the time of the field study was fairly new in the position and local people was likely in the process of getting to know her. Figure 30 - Boxplot of the Answers Scores for Question 10.1 for C and G - \"I think the current mining company Community Relations Officer is the right person for the job.\" \t ?Table 41 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 10.1 Element 10: Personality ? Sub-Element: Trust, Respect and Empathy Question 10.1 ? I think the current mining company community relations officer is the right person for the job. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.25 2.65 6.48 3.31 8.50 0.87 8.36 0.77 When comparing the Community responses in both locations, it can be observed that the residents of Bayangol attributed much lower scores than did those in Mandal. A t-test was conducted and a p-value of 0.055 was found. This number is very close to the 0.05 threshold established as a confidence level. Another relevant issue concerning the perception of trust involves the multiple roles performed by the CRO in Mandal. Decisions are at times made by BGC and the government which raise ethical issues and concerns, and this may in turn have an impact on how people perceive the CRO and BGC. Although such \t ? 104 a situation may not reflect in any way on the personality or interpersonal skills of the CRO, it could clearly have an impact with regard to trust and transparency and the way that these are perceived by the community. Another issue that also relates to trust and respect involves a problematic situation that exists between BGC and a local farmer. At the time of constructing the mine, BGC entered into a private agreement with a local farmer whose land is located in Mandal soum. According to the agreement, the farmer leased a portion of his land to BGC to hold the company?s tailings dam. During the interviews the researcher was informed that although the contract had officially expired in 2010 and the company should have returned the reclaimed land to its original owner, this has not yet occurred. During the interviews, the farmer was very vocal about the situation and saw it as highly disrespectful on the part of BGC. Another situation that can be perceived as a respect issue involves the two CROs in Mandal (Zuunkharaa and Tunkhel). The CRO from the Tunkhel area drives a BGC car, while her counterpart in Zuunkharaa drives her own car. Although BGC covers the expenses associated with gas, all maintenance costs are paid by the CRO herself. Similarly, some issues related to workload and the fairness around workload were also identified in the interviews with the CROs. While Bayangol Soum has 5,000 people, Mandal soum has 25,000, and even though 4,000 people are located in the Tunkhel area (which has a dedicated CRO) there are over 19,000 people that the Zuunkharaa CRO needs to look after, and both CROs earn the same wages to perform their jobs. This situation is perceived as unfair by the CRO of the Zuunkharaa area. Although this issue may be seen to be minor to some, it can have impact not only on the work performed by the CRO but also on the way the CRO perceives and promotes the company. A noteworthy set of responses that would need further investigation relates to Question 10.8 that assesses the perceptions of people regarding whether the company?s personnel who work in the Community Relations Department ?really care about the well-being of the local community.? The local citizens of both soums presented modest scores with an average of 5.0 points given to this question. Factors such as the multiple roles performed by the Mandal CRO and the fact the Bayangol CRO is relatively new on the job may be impacting the way local citizens perceive the roles and motivations of the CROs. This situation requires attention as it could have consequences on the level of trust that members of the community may have towards the CROs, and could eventually lead to potential challenges such as lack of dialogue and participation on the part of the community. \t ? 105 Figure 31 - Boxplot of the Answers Scores for Question 10.8 for C and G - \"I feel that the mining company personnel who work in the Community Relations department really care about the well-being of the local community.\" \t ?Table 42 - Comparison Between the Responses Given by Community and Government from Bayangol and Mandal for Question 10.8 Element 10: Personality ? Sub-Element: Trust, Respect and Empathy Question 10.8 ? I feel that the mining company personnel who work in the community relations department really care about the well-being of the local community. Category: Community Category: Government Bayangol Mandal Bayangol Mandal Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 5.33 3.12 4.44 2.80 7.88 0.78 8.64 0.88 On a couple of occasions, Government representatives from Bayangol indicated that the relationship between Mandal and BGC has improved and has produced superior results, particularly as related to the infrastructure investments made in Mandal. Although one of the government officials acknowledged that the Bayangol officials could have played a greater role in developing a better relationship with BGC, it became clear that there is a perceived imbalance and people would like to see a change in this situation. 6.1.1.5. Mongolian Case Study Conclusions The following Table 43 is a summary of some of key findings of the Mongolian case study. The table is divided into two parts; Positive Aspects and Aspects Requiring Improvements. In the table a brief explanation about the finding is provided as well as its correlation to the elements and sub-elements of the SEMC Framework. \t ? 106 Table 43 - Key Findings of the Mongolian Case Study Positive Aspects Finding Remarks SEMC Linkages Economic diversification / development initiatives The dairy plant is an important example of economic diversification. Policy (corporate commitment); Planning (resources, capacity building); Participation (community engagement) Microcredit Promotes local economic diversification. Planning (resources); Participation (mobilization, empowerment, community engagement) Joint Working Group Is a conceptually important mechanism through which to engage locals and to enhance transparency. Participation (community engagement, empowerment, mobilization); Policy (governance) Soum Development Fund Commitment of financial resources supports infra-structure development. Policy (corporate commitment); Planning (resources); Infra-structure Improvement in public infra-structure. Planning (resources) Community Relations Officers - CROs The CROs increase the company?s presence in the community and can facilitate dialogue and participation. Presence; Participation (community engagement); Planning; Promotion (sharing / communication, consolidation) Aspects Requiring Improvements Findings Remarks SEMC Linkages Microcredit Lack of transparency, public participation. Effectiveness of the program. Planning (resources); Policy (governance); Joint Working Group Despite its existence, the JWG needs to provide more transparency. Participation (mobilization, community engagement); Policy (governance) Relationship with government The close relationship to the government overshadows some of the initiatives implemented by BGC and suggests lack of transparency. Policy (governance); Participation (partnership) Soum Development Fund (SDF) The local government needs to be more inclusive and democratic when considering where to invest the SDF money. There is need for more transparency and accountability. Planning (resources); Policy (governance); Promotion (sharing / communication) Community participation / engagement Creates mechanisms to engage the various distinct groups within the community (e.g. youth, elders, woman, etc.). Presence; Participation (mobilization, capacity building, empowerment, community engagement, partnerships); Promotion (sharing / communication, consolidation) Local economic diversification / development Implement and/or support local economic diversification programs. This could also be achieved through partnerships with both local government and other local businesses (e.g. vodka factory and railway company). Participation (partnerships, capacity building, mobilization, empowerment) Community Relations Officers - CROs The CROs need to be trained and educated on aspects related to mine closure. More company representatives will be needed in the field to address the implications of the closure. Presence; Participation (capacity building); Planning, Promotion (sharing / communicating) Closure plan Implements communication and education initiatives to educate local community about mine closure. Presence; Participation; Planning; Promotion; Government transparency There is a need for more transparency and accountability regarding how and where the SDF moneys are invested Policy (governance); Planning (resources); Promotion (sharing / communication) From the results of the interviews, it can be said that BGC management is fairly committed in implementing a successful closure of the mine, but further planning and community engagement are needed. Additionally, current activities taking place on the ground also need to be reviewed and perfected. \t ? 107 It can be concluded that BGC has been spending a great deal of time pondering whether it should fully admit that the mine is going to close in three years. This attitude is the result of the uncertainty regarding when / if the nearby Gatsuurt project will be approved. If Gatsuurt is approved, it can be said that BGC will extend its activities for a minimum of another 10 years, and since Gatsuurt is only 50 km away from the current Boroo mine site, all employees and facilities would likely be kept roughly the same. In fact, it is likely that more people would need to be hired. The researcher?s perception is that at the time of the field study, despite the existing challenges BGC would still be granted the social license to operate since both local community and local government see the value that the company brings to region. In recent personal correspondences with BGC management the researcher was informed that the new Mongolian government took the initial steps into determining where the Gatsuurt property is located as economically strategic to Mongolia, which in turn would ultimately allow BGC to proceed with the operation of Gatsuurt. However, regardless of whether the Boroo mine will close in 3 or 13 years, and considering that community development takes time to produce positive results, it would be prudent for the company to fully commit to planning and implementing initiatives to address the impacts that closing Boroo mine will impose on the communities. The initiatives implemented today will benefit every group involved: government, the communities and the company itself, and more robust results could be obtained with more prompt implementation. Another important element that requires political will, and very likely perseverance, relates to the role of local governments. Although BGC keeps very close relationships with the soum governments, these relationships seem to be excessively close. As a result they tend to overshadow the initiatives implemented / sponsored by the company. The main example of this relates to the SDF money donated by Boroo, which turns out to be perceived as funds provided solely by the government. In many cases, SDF money was used to build public infrastructure, such as a sanatorium, the Governor?s Building, a sports center, a cultural center. Those from the local communities, who were aware that BGC donates money to the community development funds, criticize that the SDF is used to implement the Governor?s election campaign plans / promises without taking input from the communities into consideration. The fact that the CROs offices are located in the Governor?s Building brings some level of confusion as well. Ideally, BGC should find a balance with regard to their relationship with and connection to the government, but with the current arrangements, BGC is not receiving full advantage / acknowledgement for the work it has been doing to benefit the communities. Ideally, an independent organization such as a foundation or NGO that would be physically and administratively detached from the government could manage the SDF and the microcredit funds. Additionally, it could also be mandated to promote and support the development of small business and provide training and technical advice on how to start and operate small and medium-sized enterprises. \t ? 108 Developing partnerships and research projects with universities can be useful as business administration and accounting students / professors could be involved in short and long term projects to assist local entrepreneurs in developing business plans or to assist with the financial components of running a business, etc. Focusing on the development of small business enterprises seems to be a judicious strategic path to be undertaken by BGC, since in addition to creating jobs and income, it is also in alignment with the wishes manifested by local citizens and the local government. As indicated earlier, the establishment of an organization that would be responsible for promoting the development of small business would be helpful in identifying and providing support to local entrepreneurs. A business advisor hired by this organization would be entrusted with visiting local businesses, providing advice and assisting with the development of business plans, as well as establishing and supporting the creation of these new business ventures. Thus highlighting the importance of restructuring and making the microcredit funds more effective. The community has revealed a growing negative perception and discomfort with regard to the physical closure of the mine and the heap leaching process. Residents are surprised and disappointed that the company will leave the pits open. Furthermore, some individuals are concerned about soil contamination and pollution and this situation is further aggravated because the company was granted a permit to re-start the heap-leaching process. Addressing these points promptly and directly is important because doing so could help avoid bitter consequences such as protests, strikes and blockages that commonly take place when local communities are not satisfied with the approaches adopted by local and international companies. Considering all of the above, the creation of a mine closure working group would prove invaluable in the process of easing the concerns and educating local residents regarding the closure process. Additionally, the establishment of such a working group is likely to result in better community engagement and participation, which are also key to the process of successfully closing a mine. \t ? \t ? 109 6.1.2 Cerro Vanguardia SA ? Argentina 6.1.2.1. Introduction This section provides relevant background information about the history and development of Argentina?s mining sector and offers an analysis of the fieldwork investigation which was conducted from November 18th to 25th, 2012 in Puerto San Juli?n located in Santa Cruz province, Argentina. The primary goal of the study is to address the main objectives of this investigation which involves an analysis of the initiatives implemented or supported by the Cerro Vanguadia S.A. (CVSA) to address the consequences that closing the CVSA mine will impose on the community. Furthermore, this field investigation aims to capture the perceptions of the government, the mining company and particularly, the views of the local community in relation to all initiatives supported by the company that may have implications regarding the closure of the mine. Argentina has not traditionally been a country with a substantial mining industry; however a major change took place in early 1990s when the federal government decided to open the sector to private investment, offering fiscal benefits and putting in place a welcoming legal framework. This framework reduced entry barriers by providing incentives such as: offering an import duty benefit for importing mining equipment; ensuring 30 years of tax stability; providing income tax benefits for mining-related companies, incorporating a royalty payment of 3%22 23 at the start of operations; and providing the guarantee of a stable and transparent legal environment (Codigo de Miner?a de la Republica Argentinay Leyes Complementarias, 1993; Mutti et. al., 2012). In spite of this support at the federal level, some provinces have been more welcoming of mining activities than others. This is possibly due to the fact that the provinces are considered to be the owners of their natural resources, and can enact their own laws. Some projects have been suspended indefinitely, as a result of environmental concerns and resistance to large-scale mining projects. Several provinces have established very high requirements or even banned mining activities, as in the case of Chubut province which has prohibited large-scale mining (Mutti et.al., 2012, Ley 5001). This decision for instance, prevented the Vancouver-based company Pan American Silver, from developing the Navidad Project - the richest undeveloped silver project in the world (Jamasmie, 2013). As a result of opposition to the Calcatreu project, a similar law prohibiting the use of cyanide has been implemented in R?o Negro province, (Batisda et al, Mutti et.al 2012, Ley 5001). Another challenge that mining corporations face in Argentina is with regard to the Mining Export Tax that began to be enforced in 2008. The government of Argentina, seeking to boost the country?s primary fiscal \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?22\t ??There are some projects of law in the Argentinean Congress proposing changes in the provincial mining royalties rates. Some provinces have already modified their legislation going beyond the cap established by the Mining Investment Law?, as in the case of Chubut that increased the royalties from 3% to 8% where 1% will be given to the municipality where the mine is located (Corporate income taxes, mining royalties and other mining taxes?2012 Report, Mazzzinghi, 2012). 23 Through an agreement made with the Province of Santa Cruz, Cerro Vanguardia has paid 1% royalty since 2012, when the province enforced that CVSA should pay 3% royalty. \t ? 110 surplus, enforced a 5%-10%24 tax on mineral exports. The Mining Export Tax is seen by the industry as a breach of the 30-year tax stability commitment made by the Argentinean government in 1993 (Wacaster, 2011) and some companies including AngloGold Ashanti, Rio Tinto and Xstrata have filed lawsuits against the government (Pouiller, 2009). Cerro Vanguardia General Manager stated that between 2008 and 2009 the company paid around US $15 million extra as a result of the new tax (Pouiller, 2009). The Argentine Mine Chamber (CAEM)25 believes the Mining Export Tax is having an impact on companies? investment plans. However, the extent of this impact depends on the type of mineral involved. In the case of gold and copper producers, it is believed that despite producers? disapproval and discontentment regarding the Export Tax, companies will maintain their investment strategies. On the other hand, in the cases of non-metallic minerals such as lithium, boron, phosphate, and soda, where margins are much smaller, investments have retracted (CAEM, 2012). Despite these challenges and a certain level of fear in relation to the government?s attitude of imposing new regulations and changing existing rules, mining exports were in the order of US $6 billion in 2011. According to the Mine Chamber of Argentina (CAEM), the mining sector contributed 4.5% of the national GDP, worth US $ 446 billion, in 2010. Approximately 70% of Argentina?s mineral production is exported, mainly to Asia, Europe and Brazil (Mutti et.al, 2012). Mining-related investments in Argentina increased 72% in 2012, as compared to the previous year (Jamasmie, 2013). Local and foreign investors spent over $3.8 billion and it is expected that this trend will continue, with planned investments amounting to more than $4 billion for 2013 (Jamasmie, 2013). The resource extractive industry in Argentina includes gold, silver, copper, lead, zinc, nickel, cobalt, coal, uranium, potash and other minerals (Mutti et. al., 2012). Copper, silver and gold account for 60% of national mineral production. Construction materials account for 30%, and non-ferrous minerals for 10% (Mutti et al, 2012). Historically, the leading provinces in production have been Catamarca (copper, gold and lithium), Santa Cruz (gold and silver) and Buenos Aires (clays, crushed stone, limestone and sand). These three provinces account for 65% of Argentina?s mineral production (Torres, 2004). In terms of exploration, the Federal Ministry of Planning reported that over 1,000 km of drilling were conducted in 2011 (Table 44), and the provinces of San Juan and Santa Cruz became the two most active provinces in terms of operation and exploration (Ministry of Planning, 2012). In spite of all the challenges, several projects have gone into production and the sector has shown an expansive growth evidenced by the fact that, from 2002 to 2011, there was an increase in the number of projects, exploration activities, investment and jobs creation. The following Table 44 also brings a projection made by the Argentine Ministry of Planning to the year 2029. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?24 5% tax is applied if the mineral is exported with any value added, and 10% if the commodity is to be exported as raw material (Wacaster, 2011) 25 C?mara Argentina de Empresarios Mineros (CAEM) \t ? 111 Table 44 - Mining Activity in Argentina Category 2002 2004 2006 2008 2010 2011 2029 Export (USD million) 592 690 1,542 1,818 2,680 3,162 4,458 Projects 18 110 275 403 572 614 - Exploration (meters) 135,000 250,000 478,000 668,851 730,000 1,031,600 - Investment (USD million) 105 362 756 706 2,103 2,147 8,335 Jobs 97,500 135,540 197,000 256,000 450,000 517,500 950,000 Production (USD million) 652 885 1,831 3,070 5,290 6,135 5,040 Source: Secretariat of Mining at the Federal Ministry of Planning, Services and Public Investment26 Changes that were made to the legal and fiscal framework in 1992 were crucial to the advancement of the mining sector in Argentina. These changes increased the levels of autonomy of the provinces, and have provided some additional challenges to some mining companies. As well, more recent alterations that have been made to the fiscal system, as well as current discussion regarding increasing mining royalties will certainly introduce some level of uncertainty which may ultimately impact of levels of further investment. Overall however, the country is moving towards making mining a key activity which contributes to the Argentinean economy. Santa Cruz is a mining-friendly province (Mining Club Argentina, 2010). It is the second-largest province of the country (after Buenos Aires province), and the least densely populated province in Argentina, with 272,000 inhabitants. It covers a vast area of 243,943km? in southern Argentina and spans from the Atlantic coast to the Andes cordillera. The province has historically been important because it was here that the Europeans first disembarked in Argentina. In 1520, Portuguese and Spanish explorers landed in Puerto San Juli?n looking for shelter from the imminent winter before crossing the passage, currently known as the Strait of Magellan, that connects the Atlantic and Pacific oceans. In that same year, Puerto San Juli?n was the first place in Argentina to hold a catholic mass, and a monument was built in the town registering this event. This monument is a major tourist landmark today and remains a very important site for Catholic pilgrims in Argentina. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?26 Secretaria de Mineria Ministerio de Planificacion Federal, Inversion Publica y Servicios (Mineria en Numeros) \t ? 112 \t ?Figure 32 ? Location Map of Santa Cruz Province (Image: Public Domain) Source: Adapted from Wikipedia http://en.wikipedia.org/wiki/Provinces_of_Argentina Although sheep-raising was the main economic activity in Santa Cruz for decades, this livestock activity has declined over the years due to a combination of several factors. Early in the 1960s and 1970s the advancement of technology and the development and popularization of synthetic fibres allowed for a greater level of competitiveness within the international and local textile industry. Additionally, the large distances between cities27 in Argentina always pressured the prices up due to high freight costs. These three factors were key in displacing the traditional natural fibres produced by the primary sector in the province. In addition to these factors, the poor management of soils and fields, which resulted from severe winter seasons, has also played a role in negatively impacting the livestock economy (Andrade et.al., 2010). Finally, in 1991 when the smoke from the eruption of the Chilean volcano at Mount Hudson blew over the area, it impacted great portions of the land in Santa Cruz, and resulted in the deaths of over a million animals. Even though the ashes from the eruption of the volcano had a major impact on the primary \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?27 Puerto San Julian is located approximately 2,500 km south of Buenos Aires, and 500 km north from Rio Gallegos, Santa Cruz capital. Autonomous City of Buenos Aires Puerto San Julian Tierra del Fuego \t ? 113 sector in Santa Cruz, all the others factors mentioned above must also be taken into account to explain why the livestock industry in Santa Cruz collapsed (Andrade et.al., 2010, Andrade et.al., 2011). The sudden economic decline of sheep-raising facilitated the welcome of the mining industry in Santa Cruz province in the early 1990s. This new industrial activity was positively received, as it would generate jobs and promote economic development in a remote region where national and provincial governments were struggling to support economic activities and maintain public services for the local residents (Andrade et. al., 2010; Andrade et.al., 2011). Currently in Santa Cruz, mining employs 7.1% of the labour force, while mining suppliers and construction employs another 7.4%. The supply of goods, equipment and private services employs another 15.2%. Finally the government is responsible for employing 47.1% of the labour force. Currently, fishing accounts for 0.9% of Santa Cruz population (Andrade et. al., 2010). To date, there are 4 mines in operation in Santa Cruz Province, and many exploration projects that are shown in Figure 33 and Table 45. Table 45 also provides information regarding whether projects are in the operation or exploration stages. Additionally, it provides information on the life span of the project and the number of jobs created, or which are expected to be generated. Figure 33 ? Map of Mining Exploration and Operational Projects in Santa Cruz Province (with permission from Mining Press) Source: http://www.miningclub.com/nota/377 \t ? 114 Table 45 - Mining Exploration and Operational Projects in Santa Cruz Province Name Owner Headquarter Commodity Status Mine life Jobs Minera Triton ? Manatial Espejo Pan-American Silver Corp Canada Gold & Silver Operation since 2008 2018 800 La Josefina Hunt Mining Corp / Fomicruz USA / Argentina Gold & Silver Advanced Exploration N/A N/A Cerro Moro Yamana Gold Inc. Canada Gold & Silver Advanced Exploration -Start up in 2016 2029 N/A Mina San Jose McEwen Mining / Hochschild USA / Peru Gold & Silver Operation since 2007 2018 1400 Cerro Negro Goldcorp Canada Gold & Silver In operation since 2012 2021 400 Martha Coeur?Argentina S.R.L., USA Silver In operation from 2008 to 2012 ? Currently reclamation phase 2012 60 Cerro Vanguardia AngloGold Ashanti / Fomicruz South Africa /Argentina Gold & Silver In operation since 1998 2023 1000 Don Nicolas Minera IRL Peru Gold & Silver Construction scheduled for 2014 2017 250 Pinguino Argentex Mining Corp Canada Gold, Silver, Zinc, Lead, Indium Development ? NI 43101 completed 8 years N/A Source: Adapted from Ministry of Mines ? Government of Santa Cruz. http://www.santacruz.gov.ar/mineria/index.php?opcion=proyectos 6.1.2.2. Cerro Vanguardia S.A. (CVSA) Operations Cerro Vanguardia SA (CVSA) is one of 20 Anglo Gold Ashanti world operations located in the central area of the Province of Santa Cruz in the Patagonia, Argentina, and is at an approximately 2100 kilometre distance from the federal capital of Buenos Aires. Cerro Vanguardia SA is owned by AngloGold Ashanti (92.5%), and FOMICRUZ retain the remaining 7.5% of the project. The mine covers an area over 500 km2 of surface and is the most important precious metal mine in Argentina (CVSA Annual Report, 2008). Cerro Vanguardia is a gold and silver multi open pit mine which initiated operations in 1998. It is located 150km Northwest of Puerto San Juli?n, the nearest city. Although Puerto San Juli?n now has 12,000 inhabitants, prior to the socio and economic changes brought on by the presence of the mine, it used to be half of its current size, and used to have livestock and public services as its main economic activities. \t ? 115 Figure 34 ?Cerro Vanguardia and Puerto San Juli?n Location Map (With Permission from Cerro Vanguardia) Source: AngloGold Ashanti Annual Report, 2008 Fomento Mineiro de Santa Cruz Sociedad del Estado (FOMICRUZ), which is a Provincially-owned company for exploration and mining development, discovered the Cerro Vanguardia ore body in 1976 and initiated further exploration work in 1987. In 1998, Cerro Vanguardia, the first mine in the province, was put into operation. The mine consists of multiple small open pits (over 30 pits) with average stripping ratios of 26 to 1. The orebodies comprise a series of hydrothermal vein deposits containing gold and large quantities of silver, which is produced as a by-product. Ore is processed at a metallurgical plant which has a capacity of 2,800 tonnes of run of mine and includes a cyanide recovery plant. Technology at the plant is based on conventional leaching process (CVSA, 2008). The bullions that contain 8% gold and 92% silver are currently shipped by air to Switzerland to be refined. The gold recovered grade in 2012 was 7.1 g/t (CVSA, 2013) and an overview of the mineral resources and its by-product, silver, are showed in the Table 46. \t ? 116 Table 46 - CVSA Gold and Silver Resources Source: Adapted from CVSA Annual Report, 2012 In 2011, the mine produced over 196,000 ounces of gold and is projecting 220,000 ounces for 2013 (AGA Annual Financial Report, 2012). In relation to silver, the expected production is over 2 million ounces, with a profit after tax of $US 77 million (Table 47). According to the CVSA community relations manager, these numbers increased by an average of 6% due to the commencement (in late 2010) of the underground operation and the construction of a small heap leaching plant to treat the low-grade ore. Table 47 - CVSA Gold and Silver Production Data 2011 2010 2009 Oz Gold Produced 196,000 194,000 192,000 Oz Silver Produced 2,900,000 2,096,000 2,203,866 Operative Cash Cost US$ 393/OZ US$ 366/OZ US$ 355/OZ Profit After Tax US$ 60.5 M US$ 77.8 M US$ 41.8 M Source: CVSA Institutional Presentation, CVSA 2011 Annual Report The mine life is projected to end in 2023. However, ongoing exploration activities indicate the mine life could be extended until 2029. In 2008, the CVSA invested US $ 6.3 million into seeking for new reserves (Mining Club Argentina, 2010). To date, 1250 people are directly employed by Cerro Vanguardia. Of those currently employed, over 95% are from within the province and 48% of the workers are from Puerto San Juli?n, a town with 12,000 inhabitants. In 2010, as a result of an expansion to start an underground operation, an average of 200 more workers have been hired. In a pre-assessment visit to the region in 2010, and after preliminary discussions with the company in relation to it taking part of a case study for this PhD investigation, it was made obvious that the CVSA plays a very important role in the socio and economic development of Puerto San Juli?n. It was found during that visit that the company has been engaging in different initiatives to promote the local economic development of the community as a strategy towards supporting local economic development of the town. In 2004, the recently elected mayor of Puerto San Juli?n initiated dialogue with CVSA in relation to advancing the economic development of the city. This was seen as an opportunity for CVSA, which had already begun internal discussions on how to leave a positive legacy in the region. Approach that also Mineral Resources ? Gold (Au) as at 31 December 2012 Resource Category Tonnes Million Grade g/t Contained gold tonnes Contained gold Moz Measured 2.14 2.55 5.45 0.18 Indicated 31.31 1.69 52.91 1.70 Inferred 7.49 2.98 22.34 0.72 Total 40.94 1.97 80.70 2.59 Mineral Resources - Silver (Ag) as at 31 December 2012 Resource Category Tonnes Million Grade g/t Contained silver tonnes Contained silver Moz Measured 11.60 30.87 358.00 11.51 Indicated 36.91 63.18 2,331.88 74.97 Inferred 7.49 79.51 595.41 19.14 Total 56.00 58.67 3,285.29 105.62 \t ? 117 coincides with one of the AngloGold Ashanti principles of leaving a local community better off after the company ceases operations. The idea of adopting a development agency approach was embraced by the CVSA and in 2006, a foundation called of Puerto San Juli?n Development Agency was created. The board of directors of this Development Agency (DA) is formed by several local organizations representatives including: San Juli?n Rural Society, the local and provincial governments, the Deputy Mayor?s Chamber, the University of Patagonia, the Chamber of Commerce and one CVSA representative. The Development Agency also has a manager and an assistant responsible to look after the day-to-day activities of the organization. After a year of planning, in 2007, the Development Agency launched the project of designing a strategic plan for the city called ?San Juli?n piensa San Juli?n 2020?28. The goal was to develop a participatory plan whose aim was to project how the community will look in 2020. Parallel to inviting all community members and community representatives to attend workshops and have their voices heard, a group of university experts developed technical reports regarding several topics identified in the workshops and dialogues as potential areas of interest that could advance the local economic development of the region. These included: fishing, livestock, clean energy, and tourism. The resources to establish the Development Agency and to create the Plan 2020 came from the CVSA. One of the challenges regarding maintaining and allowing the Development Agency to perform according to its mandate relates to where financial resources stem from. In this regard, in 2010, an agreement was signed between the company, local municipality and the Development Agency through which a CSR Fund was established. Through this CSR Fund CVSA committed to donate $3 million pesos (CAD $570,00029) to support the Development Agency in implementing the plans where were established according to the Plan 2020. The DA is also a signatory on the agreement, and is intended to function as a sort of auditor, ensuring that the CVSA-CSR Fund is properly used. Such a decision empowers the DA and its representatives to take responsibility regarding how the CSR Funds are disbursed and used. According to CVSA information since the start of operation the company has provided to the community over 6 million dollars either as donations or direct investment in Puerto San Julian. Other types of contributions such as taxes, royalties, and employment are listed on the Table 48 below. Table 48 - Direct and Indirect Investment Made by CVSA in 2012 and Accumulated. Category 2012 Accumulated Donations and Direct Investment into PSJ 1,291,877.22 CAD 6,025,866.92 CAD National, Provincial and Municipal taxes 92,390,713.66 CAD 252,763,363.45 CAD Mining Fee and Royalties and sewage 33,521,935.00 CAD 135,829,917.59 CAD Salary and training 60,160,207.16 CAD 204,231,207.45 CAD Dividends paid to FOMICRUZ (7.5%) 8,059,165.84 CAD 21,297,865.47 CAD Source: Valvano Personal Communications, June 10 2013. An interesting aspect of the CSR Fund relates to the criteria used to adjust its amount over time. The agreement establishes that a minimum of 3 million pesos (CAD $570,000) will be donated to the community every year. However, this amount is adjusted based on the company?s financial results from \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?28 San Juli?n thinks San Juli?n 2020. 29 Exchange rate on May 17th 2013 - $1 CAD = 0.19 ARG \t ? 118 the previous year. This means that if the annual gain is above what CVSA received in the previous year, there will be an increment on the amount donated to the community CSR Fund. In 2012 and 2013 due to the high prices of gold and CVSA performance the CSR fund received approximately $1,425,000 and $1,615,000 Canadian dollars respectively (Valvano Personal Communications, June 10 2013) The Development Agency was created with a mandate to support the local economic development of San Juli?n; however, due to legal restrictions, the Development Agency cannot lend money to entrepreneurs. In order to overcome this limitation the signatories of the CSR Fund created a bank account, called Banco Solidario (Solidarity Bank), which is managed by the local municipal government. When the Development Agency approves a project, a recommendation is made to the municipality to lend the money to the entrepreneur. Resulting from the Plan 2020, the participants established several areas as being particularly strategic. Table 49 that follows summarizes the areas and strategies which were suggested. Table 49 - Puerto San Juli?n Diagnostic and Strategies Area Assessed Diagnostic / Challenges Strategies / Goals Information and Communication Technology Low use of information and communication technologies; Insufficient and outdated equipment (ex. computers in local schools). Implement actions to help people develop skills in computers and communication technology. Mining industry and local supply chain There are not enough qualified local people to work for companies that supply specialized services to the mines; The overall structure of the local service providers (non-specialized) is deficient; There is lack of quality in the products and services, and there are challenges in meeting demands and organizational infrastructure. Raise awareness about the mining cycle and its economic implications; Build human resources and local capacity; Support the strengthening and development of local industry and the development of small local businesses; Create a business incubator. Tourism Poor infrastructure to attend to larger groups of tourists; Lack of information and promotion about tourism in the region. Implement actions to create events that showcase local physical, religious and cultural assets; Engage local, regional and federal governments to support tourism in the region; Include San Juli?n in the international circuit of recreational fishing; Establish a network / association focused on the development of the tourism and the hospitality sector in the region. Wind Energy Lack of studies about wind farming in the PSJ region; High cost of equipment; There is no public policy/support channeled to Wind Energy generation. Invest in research; Build human resource capacity; Develop, articulate, plan and lobby national government to create/provide support for expanding the wind industry. Artisanal Fishing and Agriculture Lack of public policies to support and promote artisanal fishing; Lack of dialogue and collaboration between private and public institutions; Lack of infrastructure to support the development of the sector; Challenges for commercialization - the lack of aggregated value results in products with very low market price. Strengthen the sector at the local, regional and federal levels in conjunction with the governmental and private sectors; Develop human capital; Develop a culture of environmental protection and sustainable use; Build technical capacity (financial, marketing). Source: San Juli?n Plan 2020, completed in 2009. \t ? 119 6.1.2.3. Case Study Methodology (Argentina) To maintain the consistency of the overall study, the same methodological approach considered in this study for Mongolia was also adopted in Argentina. Three groups - government, mining company and community - were initially identified to complete the survey and participate in the in-depth interviews and group sessions. A fourth group ? mine union directors and representatives who work for CVSA - was identified during the field visit to Puerto San Juli?n. After hearing about this study, the members of this group expressed interest in participating in the study and were incorporated soon thereafter. A group discussion session with the union members took place, and the survey, which had been designed for distribution to the company, was also distributed to the mine union representatives. The decision to compile and analyze the information from the union participants as a fourth group was made in order to ensure that their views were understood and captured separately from the company?s view. The referral process was also adopted to identify potential subjects for participation in the study. This approach was extremely valuable in this case study since representatives from all four groups called or emailed the people who they believed would be interested in taking part in the study. After a brief and indirect introduction, and after obtaining the consent of the contacted individual to learn more about the study, the researcher approached the potential study participant to provide details about the research and to request his or her consent to join the study. Similarly to the Mongolian case study the Socio-Economic Mine Closure Framework (SEMC) was used as a guide (APPENDIX A) for assessing company performance and capturing and understanding local government, union and community perceptions with regard to a broad range of topics that include governance, transparency, planning, community participation, communication, local economic development, monitoring and evaluation, etc. In addition, Participant Observation, a key social science research approach (Di Domenico et.al., 2012) which is known to be useful in case studies, was also adopted. Similarly to the Mongolian case study statistical tests were also conducted where analysis of variance (ANOVA) and multiple comparison test were applied. Furthermore as part of the descriptive statistics, boxplot was also adopted. A total of 25 individuals from the community responded to the survey and 8 of this group were invited to take part in interview sessions that typically lasted from 45 to 60 minutes, depending on the participant?s availability. Among the community participants in the survey were a schoolteacher, local business owners including a restaurant owner, a hotel owner and employees, housewives, and mining / geology university students and professors. Furthermore, in-depth interviews were conducted with the Development Agency manager and with the head of the Development Agency Board, who also happened to be the dean of the local branch of the national university. Similarly, the company agreed to participate in the study, and 7 of its office employees including managers, agreed to fill out the survey. Moreover, an interview was also conducted with the CVSA Community Manager. Furthermore, a group of 6 union representatives responded to the survey and \t ? 120 participated in a group discussion session. Finally, 6 government officials and employees representing the current administration also responded to the survey. An interview was held with the Municipal Secretary of Development, as well as one with the current mayor. Table 50 - Argentina Research Participants Groups Interviews Survey Government 4 7 Community 7 10 Company 1 6 Company Union 1 group session (4 people) 4 UNPA 1 10 TOTAL 14 37 As explained earlier, the design of the survey was based on the 10 constituent elements of the Socio-Economic Mine Closure Framework. In the particular case of the element ?Personality,? of which the objective was to assess how people perceived the personality of the company representative in the community, the questions were deemed to be unsuitable with regard to CVSA management, and in order to avoid bias and inappropriate queries, questions were not asked of the company?s research subjects on this element of the Framework. The graphic representation provides a visual result of how each group of people who responded the survey perceive the local context and the CVSA?s performance regarding the 10 elements of the Mine Closure Framework. The graph does not provide specific details regarding each group and their responses to the various elements. These details, which were gleaned from the interviews and group sessions, are discussed in Section 4.4.2.5. 6.1.2.4. General Results From Table 51 to Table 54 the average score attributed by each one of the four groups participating in the study is presented. Together with each table a radar chart is also used to present the average scores given by each group. This section discusses, in greater details, the responses attributed by all four groups participating in the study: company, union, government and community. As indicated earlier, statistical tests and descriptive analysis were adopted to support a more detailed analysis of the responses. Once again, the SEMC Framework is adopted as a reference to aid the analysis of the responses, where each set of responses is analyzed considering each one of the SEMC Framework constituents. \t ? 121 Table 51 - Average Scores Given by Mining Company Figure 35 - Plot of the Scores Given by Mining Company The government group attributed the overall highest scores in comparison to the company, community and union groups. This trend was also observed in the Mongolian case study. In this case, Policy and Personality received the highest scores, 7.50 and 7.44 respectively. Promotion received the lowest score of 5.76. \t ?Puerto San Julian Mining Company Element Average St.Dev Policy 8.09 2.15 Presence 7.89 2.11 Participation 6.44 2.07 Planning 6.76 2.30 Performance 5.76 2.04 Promotion 6.55 2.09 Perseverance 6.71 2.04 Patience 5.29 1.74 Passion 5.11 2.13 Personality - - \t ? \t ? 122 Table 52 - Average Scores Given by Government Figure 36 - Plot of the Scores Given by Government \t ?In the case of the union representatives, the participants attributed much lower scores in comparison to the other groups. As will be discussed in more depth in the next section, the union representatives were not satisfied with some of the approaches and processes supported and implemented by the company and the government, and presented some criticisms. Considering this, one can speculate that the lower scores attributed by this group may also carry a political message since all the study participants were advised that the final results of this research would be provided in a public document, and all interest \t ?Puerto San Juli?n Government Element Average St.Dev. Policy 7.50 2.60 Presence 7.17 2.89 Participation 6.28 2.62 Planning 6.87 3.00 Performance 5.89 2.92 Promotion 5.76 2.30 Perseverance 6.08 2.03 Patience 7.00 2.05 Passion 6.36 2.22 Personality 7.44 1.82 \t ? \t ? 123 parties including the company and government will have access to it. This group gave Performance the lowest score (3.95) followed by Passion (4.00) and Policy (4.60). Table 53 - Average Scores Given by Mining Company Union Figure 37 - Plot of the Scores Given by Mining Company Union Community members who completed the survey also attributed lower scores when compared to the ones provided by the company and government. Personality (5.66) and Planning (5.25) received the highest scores and elements such as Policy (4.46) and Performance (4.45) received the lowest scores. Puerto San Juli?n Mining Company UNION Element Average St.Dev. Policy 4.60 2.80 Presence 5.13 1.94 Participation 4.99 2.46 Planning 4.76 2.37 Performance 3.95 1.38 Promotion 5.03 1.86 Perseverance 4.69 1.58 Patience 4.72 1.32 Passion 4.00 2.00 Personality - - \t ?\t ? \t ? 124 Table 54 - Average Scores Given by Community Figure 38 - Plot of the Scores Given by Community 6.1.2.5. Discussions of the Survey and Interviews This section discusses, in greater detail, the responses attributed by all four groups participating in the study: company, union, government and community. As indicated earlier, statistical tests and descriptive analysis were adopted to support a more detailed analysis of the responses. Once again, the SEMC Framework is adopted as a reference to aid the analysis of the responses, where each set of responses is analyzed considering each one of the SEMC Framework constituents. 6.1.2.5.1 Policy Through web research and document reviews, it was found that AngloGold Ashanti (AGA) and Cerro Vanguardia SA (CVSA) have both made public commitments to principles and voluntary codes including: Puerto San Juli?n Community Element Average St.Dev. Policy 4.46 2.98 Presence 5.12 2.89 Participation 4.80 3.02 Planning 5.25 2.88 Performance 4.45 2.72 Promotion 4.87 2.67 Perseverance 4.51 2.52 Patience 4.51 2.68 Passion 5.27 2.78 Personality 5.66 2.70 \t ?\t ? \t ? 125 United Nations Global Compact (UNGC); International Council on Mining and Metals (ICMM); Responsible Jewellery Council (RJC); Global Reporting Initiative (GRI); Extractive Industries Transparency Initiative (EITI); International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (Cyanide Code); and Voluntary Principles on Security and Human Rights (Cerro Vanguardia Annual Report, 2008). One interesting and yet not very common approach adopted by mining companies refers to the public independent review of the AGA annual report where for the first time in 2011, the company received feedback on the Annual Report by an international group of five independent experts from Australia, Brazil, DRC, Ghana and South Africa who have experience in many areas, including: education, community development and governance. (The Sustainability Review Panel, 2013). The Sustainability Review Panel has suggested that the ?AngloGold Ashanti?s ?Sustainability Report 2011? demonstrates a significant step forward in how the company frames and reports on its sustainability challenges and opportunities? (The Sustainability Review Panel, 2013). Despite this, the group reviewing the document made recommendations regarding how it would like to see the AGA Annual Report further improved: ?Greater clarity as to the global responsibilities associated with being a global company, especially with regard to employees and communities and specification of framework and associated metrics for measuring community impacts and development? (The Sustainability Review Panel, 2013). One of the key values stated on the AGA website that is directly connected to the social and economic dimensions of closing a mine refers to the company?s commitment that the community should be better off after the mine ceases operations. As such, it reads, ?the communities and societies in which we operate will be better off for AngloGold Ashanti having been there? (AGA, 2013). Also related to policy and public commitment, an interesting agreement was signed in San Juli?n when the local government and other government groups, including opposition parties and local stakeholders, signed an agreement promising that the Strategic Plan 2020 will be used as a guide for any future government that is in power in the city of San Juli?n. This was completed as a result of the widespread belief that the Plan 2020 is a democratic representation of what the citizens of Puerto San Juli?n wanted and needed at the time that it was created. Cerro Vanguardia managers and office employees based in San Juli?n responded to the survey. In addition, a group of Union representatives who work for CVSA also completed the survey. Despite the fact that both groups responded to the company?s survey, the analysis for these two groups was conducted separately in order to analyze the perceptions of each group and to identify potential divergences in opinion. Despite the AGA?s efforts in communicating its policies, values and commitment to voluntary programs and certifications, the survey participants from the union (MCU) interpreted Question 1.1 (The mining company has a clear corporate statement or mission statement describing its values with regard to the community, and posts them on its websites, annual reports and communication material) from a different point of view, indicating lower scores in comparison to the ones attributed by the mining company (MC). \t ? 126 By applying a t-test, it is possible to conclude that there is a significant difference (p-value = 0.012<0.05) between the mean scores of MCU and the MC. Figure 39 - Boxplot of the Answers Scores for Question 1.1 for Mining Company (MC) and Mining Company Union (MCU) ? ?The mining company has a clear corporate statement or mission statement describing its values with regard to the community, and posts them on its websites, annual reports and communication material.? The researcher noted that, based on the manner in which the union representatives approached and discussed the questions during the group session, their responses may have been imbued with bias, and that the union representatives may have seen their participation in the survey as an opportunity through which to provide criticism and send a political message not only to the company, but also to the government and the broader society. One important point raised by the union directors that certainly influenced the way they approached the survey relates to the union?s participation in the Puerto San Juli?n Development Agency. The union representatives believe that the union is an important stakeholder in San Juli?n and that it should therefore be involved in the Development Agency. For this reason, the participants believed that they should be offered to sit on the Development Agency board. During the interviews conducted with community members and government representatives, it was found that within these groups there are oppositions to the current municipal administration. It was noted that these groups found lack of government transparency to be a significant issue. They stated that they had expected more transparency to be shown in advance of the implementation of projects in terms of being open with regard how much money they would invest and where the money would be coming from. In addition, the local residents believed that a reporting mechanism showing where and how the Development Agency?s money and CSR Fund were invested should be in place. \t ? 127 Similarly, when the survey participants were asked whether ?the mining company informs the community regarding the amount of money it has invested in community projects? (Question 1.6), a mixed set of responses were received Figure 40. Figure 40 ? Box plot of the Answers Scores for Question 1.6 for Groups C, G, MC and MCU - ?The mining company always informs to the community regarding the amount of money it has invested in community projects.? As shown in Table 55, both the government and mining company attributed higher scores to this question. Conversely, the union representatives (MCU) as well as community members saw it from a different standpoint. These responses to the survey are in alignment with the information gathered during the interviews with local residents and some government representatives who both suggested that they would like to see improvement regarding transparency and accountability around the money invested in community projects. Applying ANOVA, it was found that there is a significant difference between the mean scores of these four groups (p-value 0.007 <0.05). Furthermore, using multiple comparisons it was found that there exists a significant difference between the mean scores given by MC and C (p-value 0.015 <0.05). It is important to note p-value obtained for MCU and MC is 0.058, which is just slightly above the significance level of 0.05. Table 55 - Comparison Between the Responses for Question 1.6 Element 1: Policy ? Sub-Element: Governance Question 1.6 ? The mining company always informs to the community regarding the amount of money it has invested in community projects Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 9.14 1.46 5.00 2.52 5.36 2.99 8.00 2.00 \t ? 128 6.1.2.5.2 Presence Puerto San Juli?n has 12,000 inhabitants, and the majority of these are concentrated in the metropolitan area. Although CVSA has one community relations manager, it does not have a community liaison officer in town since the company does not see the need for it. Its reasoning is that having a community liaison officer would not be necessary since the CVSA office is located in town and both the company?s managers and other employees live in the same geographic region where it believes spontaneous interactions between the players are likely to take place, and where the flow of information is seen as being frequent. In addition, the Development Agency is also an important source of information for the company since a CVSA representative (the community relations manager) is one of the 8 board members, thus this situation inevitably allows the company to gather relevant information regarding CVSA operations and community affairs. Despite this, when addressing Question 2.1 (The mining company has enough people (company representatives) to adequately manage all community-related matters), both community members and union representatives assigned lower scores in comparison to those given by the company and the government. This suggests the community and union respondents believed that more people representing the company should be present and available within the community. These perceptions were also captured during the interviews where, although people acknowledged the presence and active engagement of the CVSA community manager, they suggested that having another company representative could be beneficial to augmenting communication and transparency. This issue will eventually take on even greater importance, particularly when communications regarding the closure of the mine will begin to take place, as local community members typically have questions and concerns that will need to be promptly and clearly addressed in order to avoid misperceptions and misunderstandings. Figure 41 - Boxplot of the Answers Scores for Question 2.1 for C, G, MC and MCU ? ?The mining company has enough people (company representatives) to adequately manage all community- related matters.? \t ? 129 An interesting fact that was pointed out by both a government representative and a local resident regards the presence and relationship that CVSA has in San Juli?n, particularly with respect to the community manager. The current CVSA community manager was transferred to Puerto San Julian from the Buenos Aires AGA office in early 2000 with his family. A few years ago he became grandfather. People reported this fact in a positive light as they see the community manager as a member of the Puerto San Juli?n community and the fact that his grandchild was born in San Juli?n builds the perception that the community manager is developing a stronger bond, care and commitment to San Juli?n. In the same vein, the fact that company?s manager also lives in San Juli?n builds a more positive perception and creates a sense that despite the fact that some of the managers are not from the region, they do integrate and become part of the community attending local events and social functions just as any other Puerto San Julian resident. The current municipal administration is in the government office for its third term. Although some local residents and opposition political parties believe three terms are too much and that San Juli?n would be better off if it elected a fresh (different) mayor, it was observed during the fieldwork that the long term presence of the current administration enabled continuity in the dialogue with the mining company. As a result of this long term in office, projects and negotiations, which otherwise may not have been feasible, were able to be put in place. In addition, this situation has allowed for the establishment of long-term plans and goals that typically become interrupted when a new government is established since a new administration will characteristically put previous arrangements on hold in order to gain a better understanding about them and to take a stance on how they plan to proceed. Furthermore, a new administration is very likely to engage with the company to (re)negotiate some elements of plans that are already in place or alternately may propose new ideas and plans. Such negotiations with any new government will take time as both the company and the new government are still getting to know each other and trying to establish a new sense of trust and understanding. 6.1.2.5.3 Participation As indicated earlier, the creation of the Puerto San Juli?n 2020 plan adopted a very participatory process that mobilized a wide variety of local residents. Participation was very active, specifically through the many community workshops. Furthermore, engaging experts (many of them from the local/national university) to map community assets and to provide technical assessments regarding potential areas for investment in San Juli?n also supported community participation since these assessment activities required the participation of local residents. Despite the positive engagement that occurred in order to create the San Juli?n Plan in 2008, the present research reveals (Question 3.1) that community motivation to participate in meetings to discuss living conditions of the community is low (Figure 42). The mining company, Government and the Union representatives provided similar responses, with average scores of 5.29, 5.5 and 5.17 respectively. On \t ? 130 the other hand, community responses were much lower with an average of 3.6 points. ANOVA test was applied and no significant difference was found when comparing the average scores given by these three groups. The need for improvement with regard to community participation was also raised in interviews with both a representative from the company as well as members of the Development Agency Board. In fact, the Development Agency representatives and the Development Agency manager believe that it is important to update the Plan 2020 since many years have gone by since the plan was designed in 2008. The responses to the Question 3.1 and the information gathered during the interviews suggest that attempts at eliciting community participation could be more effective and that ideally this should take place during the process of updating the Plan 2020. Figure 42 - Boxplot of the Answers Scores for Question 3.1 for C, G, MC and MCU ? ?I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company.? Table 56 - Comparison between the responses for Question 3.1 Element 3: Participation ? Sub-Element: Mobilization Question 3.1 ? I perceive that local citizens are motivated to participate in meetings which aims to discuss the improvement of the living conditions of the community and which have been organized by the mining company. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.29 1.28 5.17 1.57 3.60 2.12 5.50 1.71 The Plan 2020 has created parameters, such as the establishment of a business incubator agency or investing in wind power generation, that the company, government and the Development Agency use to guide their efforts and actions. The Plan 2020 also identified opportunities for improvement such as building technical capacity within the local university or creating technical courses in mining which would generate opportunities to hire more local people. \t ? 131 A criticism that was made by a few local citizens, a union representative as well as one member of the Development Agency board was centered on the perceived imbalance of power inherent in the current board?s structure. The 8 members sitting on the Development Agency board are as follows: 1 ? From Puerto San Juli?n City Government 2 ? From Puerto San Juli?n City Council, with representatives of the majority and the minority blocs 1 ? From the Government of the Province of Santa Cruz 1 ? From Puerto San Juli?n Chamber of Commerce and Industry 1 ? From Puerto San Juli?n Rural Society 1 ? From The National University of Southern Patagonia (UNPA) 1 ? From Cerro Vanguardia S.A. Critics perceive that this structure invites a coalition between the provincial government, municipal government, city council and the company, thus creating an imbalance on the board. Even though all board members technically have the same weight and opportunity to participate, both the company and the different levels of government hold very strong political clout, which may pose a challenge when having to make decisions regarding areas / topics that may be against the government and or the company?s interest. Furthermore, in relation to participation on the Development Agency board, the union representatives were vocally advocating that they also should have a position on the board as they are an important stakeholder and are likely to become even more prominent when San Juli?n and CVSA employees will be faced with the challenges of slowing down operations and closing the mine. Based on the interviews and surveys, it is possible to state that there is some consensus among the four groups (community, mining company, union and government) in relation to the lack or low level of participation of the general public. Additionally, those who attended the meetings did not provide a balanced representation of the existing community groups, as confirmed in the responses for Question 3.3 showed on Figure 43 and Table 57. \t ? 132 Figure 43 - Boxplot of the Answers Scores for Question 3.3 for C, G, MC and MCU ? ?I believe that the people who attended meetings organized by the mining company are representative of existing community groups. Although when applying the ANOVA test, no significant difference was found (p-value = 0.407 > 0.05) among these four groups, the lower response scores provide an indication that there is no balanced representation among the existing community groups. It is interesting to pay attention on the average and standard deviation results for Mining Company and Government (Table 57 ). Although the average scores of both groups are relatively close (MC=5.43; G=5.17) it can be said that the higher standard deviation resulted from the Government (3.24) responses suggest the survey participants disagree more among themselves in relation to question 3.3. Table 57 - Comparison Between the Responses for Question 3.3 Element 3: Participation ? Sub-Element: Mobilization Question 3.3 ? I believe that people who attended meetings organized by the mining company are representative of existing community groups. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.43 0.73 4.33 1.49 4.68 2.53 5.17 3.24 Regarding Question 3.11, the groups that responded to the survey presented different views regarding whether the CVSA ?displays a very good understanding of the social and economic impacts of mine closure on the community?. This may be result of a lack of discussion with the public at large about mine closure and the CVSA?s plans to address the implications that closing the mine would bring. Both government and CVSA participants presented comparable average scores (7.0 and 6.71 respectively), much higher than the scores given by the community (4.04) and the union (3.83). A detailed analysis of the scores attributed to the mining company participants indicates that 4 out of 7 respondents had ?no opinion,? suggesting that they don?t have enough information or knowledge about it. Although the CVSA has been engaging in and supporting different initiatives with the aim of promoting the economic development of San Juli?n, at the time of the fieldwork, no official strategy had been put in place to communicate to the local people about the closure of the mine. At the time of the field research \t ? 133 the CVSA was working, in conjunction with an international consulting firm, to update its closure plan. According to CVSA management, the company will begin to define strategies and actions to communicate regarding the closure to the local residents only after the plan will have been updated. Figure 44 - Boxplot of the Answers Scores for Question 3.11 for C, G, MC and MCU ? ?The mining company displays a very good understanding of the social and economic impacts of mine closure on the community.? Table 58 - Comparison Between the Responses for Question 3.11 Element 3: Participation ? Sub-Element: Education Question 3.11 ? The mining company displays a very good understanding of the social and economic impacts of mine closure on the community Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 6.71 2.05 3.83 1.57 4.04 2.81 5.83 2.11 Applying ANOVA, the resulting p-value is 0.018 <0.05, and thus there is significant difference among the four groups. Using multiple comparisons, however, no significant difference was found between any particular combination of groups. A possible reason for not finding any significant difference when applying multiple tests is the presence of an outlier found in the responses given by the group G. Despite the fact that the local citizens ?believe that the participation of local citizens is important and can have a positive effect on changing the local reality? (Question 3.13) as indicated in (Figure 45), the community attributed low scores when asked (Question 3.14) whether they felt that their ideas and suggestions are taken into account by the mining company (Figure 46). This sentiment was also manifested during the interviews, where local residents mentioned that despite positive CSR initiatives supported by the CVSA and community participation during the development of the San Juli?n 2020 Plan (in 2008), community participation is now very low and decisions are always perceived as having been made by a small group of people \t ? 134 Figure 45 - Boxplot of the Answers Scores for Question 3.13 for Community Group ? ?I believe that the participation of local citizens is important and can have a positive effect on changing the local reality.? Figure 46 - Boxplot of the Answers s Scores for Question 3.14 for Community Group ? ?I feel that my suggestions are taken into account by the mining company.?\t ?One recurrent subject brought up by all four groups of participants in the study was the fact that the current municipal administration is now in power for its 3rd term. Although the company acknowledges that challenges may arise from having the same government in power for over 10 years, the CVSA sees the overall result of having the same administration for that long as positive since it has allowed for the establishment of a healthy and long-term relationship with the local government where long term plans, such as the establishment of the Development Agency, could be implemented. To the community and the union representatives, on the other hand, this situation was perceived as negative because it was suggested that a new government could foster new ideas and could be able create opportunities for more public/community participation. Furthermore, in relation to the government, people were asked whether, ?I think local government representatives are doing their best to enhance the quality of life in the community? (Question 3.25). As seen in Figure 47, each group presented a wide range of responses, suggesting that there is no consensus within the individual groups. The community and the union representatives contributed the lowest scores, which is in alignment with the results of the interviews where these two groups were more vocal in criticizing the government as they saw that more transparency, accountability and community engagement were needed. In addition, as alluded to earlier, the fact that the current municipal administration has been in the power for three terms is also seen as negative, particularly by the community. Applying ANOVA (Question 3.25 - Figure 47), the p-value is 0.001< 0.05, thus there is a significant difference among the average score of these four groups. Adopting multiple comparison resulted in a situation in which the mean scores of MC and C are significantly different from each other (p-value = 0.002< 0.05). \t ? 135 Figure 47 - Boxplot of the Answers Scores for Question 3.25 for C, G, MC and MCU ? ?I think local government representatives are doing their best to enhance the quality of life in the community.? \t ?Table 59 - Comparison Between the Responses for Question 3.25 Element 3: Participation ? Sub-Element: Community Engagement Question 3.25 ? I think local government representatives are doing their best to enhance the quality of life in the community. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.57 2.77 2.17 2.17 3.44 2.83 6.33 2.75 \t ?The local residents agree that community involvement is an important element in changing the local reality (Figure 45). On the other hand, the union representatives, the company and the community members who completed the survey believed that the local residents were not making every attempt to render Puerto San Juli?n a better place to live (Figure 47). Although it could be speculated that some of the responsibility for low community participation rates could be attributed to the company?s engagement strategy since people perceived that the company as not taking community suggestions into account (as found in Figure 46), the local citizens also hold responsibility for creating a proper context through which to enhance community participation. As noted by Parker (2006) ?Post-mine closure, community sustainability requires strong community leadership to develop a plan and execute it? (p.14). As mentioned earlier (Question 3.1 - Figure 42), all survey participants attributed modest to low scores to the motivation of local citizens regarding their participation in community meetings to discuss the improvement of living conditions in the community. The responses provided by a local resident may be used to explain the reason for such low levels of participation. This man suggested that public participation in San Juli?n may be low because the general public believes that those who maintain power in the community have a record of implementing initiatives \t ? 136 and projects that are within their own interest, and that they provide visibility for the government and / or the mining company regardless what the community?s wishes are. [comment MCU responses] ? It is interesting to note that MCU has attributed the lower average scores in comparison to the other groups. These scores are consistent to what was found during the group session. Where the union directors highlighted the importance of the community members participating in community affairs. Figure 48 - Boxplot of the Answers Scores for Question 3.26 for C, G, MC, MCU ? ?I think local citizens are doing their best to make the community a better place to live.? Table 60 - Comparison Between the Responses for Question 3.26 Element 3: Participation ? Sub-Element: Community Engagement Question 3.26 ? I think local citizens are doing their best to make the community a better place to live. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.57 2.77 5.67 3.30 5.00 2.40 8.00 1.41 6.1.2.5.4 Planning As mentioned previously, the CVSA and the local government have spent over two years discussing ways to create mechanisms and projects that would have the best chance of continuing after the mine is closed and that could support the development of new businesses. In 2007, the Puerto San Juli?n Development Agency was created, and its first board of directors was established. The first project undertaken by the Development Agency was the development of the Puerto San Juli?n Plan 2020. Professionals were hired to conduct asset-mapping for this project. In addition, several workshops took place where community members were invited to participate and provide their views on issues to be addressed, as well as on potential opportunities that they thought were important to incorporate into the \t ? 137 Plan 2020. As a result of the asset mapping, several areas for further action were established as important (Table 49) including: wind energy, tourism, and fishing. When people were asked to give their opinion (Question 4.5) on whether they had a clear image of how they would like the community to look after mine is closed, as illustrated in Figure 49 below, high scores were given by all four groups. As shown in Figure 50, similar responses were attributed to Question 4.6 where people were asked whether their neighbors have a clear image of how they would like to see the community develop. Figure 49 - Boxplot of the Answers Scores for Question 4.5 for C, G, MC and MCU ? ?I have a clear image of how I would like the community to look after mine closure.? Figure 50 - Boxplot of the Answers Scores for Question 4.6 for C, G, MC and MCU ? ?I think my neighbours and friends have a clear idea of how the community should look like in the future. Despite these high scores, it was found that there was a discrepancy between the responses to the survey and the responses given during the interviews, as the majority of people who participated in the interviews were not able to articulate how they saw Puerto San Juli?n developing after the mine is closed. Two business owners in particular indicated that their businesses would be directly impacted by loss of revenues when the mine closes. However, they did not have any suggestions or business plans in place to address approaches they could take to reduce the economic impact that closing CVSA would have on their businesses. Despite the fact that the asset mapping and community assessment were completed when the Plan 2020 was created, there are no formal indicators in place to monitor the progress of the initiatives and programs implemented by the Development Agency that go beyond recording financial investments made over time. \t ? 138 With respect to resources, the CVSA is the major financial supporter30 to the Development Agency and it plays a key role in providing CAD $761,00031 annually through the CSR Fund to allow the Agency to maintain its activities and support community projects. The company also plays an important role in providing resources towards other initiatives such as imparting money to the local hospital to buy a new ambulance. Because of its legal status as an NGO, according to Argentine laws, the Development Agency cannot administer (lend, collect) money. In order to overcome this obstacle, the Development Agency board decided that the municipal government would become the responsible entity for disbursing the money on behalf of the Development Agency. During the fieldwork, criticisms were raised by local people in relation to the transparency of the process of how the CSR Funds are used. An interesting arrangement was promoted by the CVSA when it began to engage its suppliers to support the Development Agency both technically and financially. One particular example involves the CVSA catering company agreeing to donate US $10,000 monthly to support the activities and projects sponsored by the Development Agency. The catering company also agreed to buy mineral water from a family of local business entrepreneurs who had received funds from the Development Agency to support their mineral water business project. Table 61 shows a summary of the responses to Question 4.14 (I believe the local socio-economic situation of the community will be better after the mine is closed). It is interesting to note that the company presented lower scores in comparison to the government. A detailed analysis of their responses indicates that 4 out of the total of 7 mining company participants attributed the score 5 (?neutral or no opinion?), suggesting that they do not have an opinion on the topic. On the other hand, a detailed analysis regarding the distribution of the responses shows that neither the community nor the union representatives are optimistic about the community?s socio-economic situation after the mine is closed down. These results may be justified by a comment made during the interviews when a local business person, although acknowledging the importance of the Development Agency, said that he believed that the Development Agency?s impact, in terms of creating new jobs, would be minimal because the projects sponsored by the DA create very few jobs, and thus the jobs that are already created will not be able to offset the losses of jobs and revenue that will occur when the mine is closed. Table 61 - Comparison Between the Responses for Question 4.14 Element 4: Planning ? Sub-Element: Envisioning Question 4.14 ? I believe the local socio-economic situation of the community will be better after the mine is closed Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.29 1.39 2.67 1.70 3.52 2.70 6.17 1.67 \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?30 A catering company supplying to the mine also have donated funds to the Development Agency 31 This amount may vary depending on the financial results obtained by the company. However, the figure will never be below $3 million pesos, which in 2010 was equivalent to CAD $761,000. \t ? 139 Figure 51 - Boxplot of the Answers Scores for Question 4.14 for C, G, MC and MCU ? ?I believe the local socio-economic situation of the community will be better after the mine is closed.? Applying ANOVA, the p-value is 0.032 <0.05, thus a significant difference is found among the 4 groups. Using multiple comparisons, no significant difference was found between any particular combinations of groups, indicating a neutral (or indecisive) attitude regarding the economic future of the community. For Question 4.27, all four groups that responded to the survey were asked to indicate their perceptions regarding the statement, ?The community is aware of where the money allocated to fund community projects is spent.? A closer look at the distribution of the responses indicates that a few survey participants are neutral or have no opinion, as in the case where 4 out of 7 of the mining company participants attributed 5 points to the question. In general, all groups presented low scores to this question, indicating that they perceived that the community is not aware of where the money to fund community projects is allocated. This suggests (and is in alignment with the concerns voiced during the interviews) that communication should be improved, particularly with regard to the activities and projects related to the Development Agency. Table 62 - Comparison Between the Responses for Question 4.27 Element 4: Planning ? Sub-Element: Resources Question 4.27 ?The community is aware of where the money allocated to fund community projects is spent. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.57 1.68 3.50 1.98 4.40 3.01 5.0 3.74 \t ? 140 Figure 52 - Boxplot of the Answers Scores for Question 4.27 for Community (C), Government (G), Mining Company (MC) and Mining Company Union (MCU) ? ?The community is aware of where the money allocated to fund community projects is spent.? According to the Argentinian law, the 3% royalty fees imposed on mining companies are kept by the provincial government and do not trickle down to the city of Puerto San Juli?n. The study participants were asked if the provincial government has made proper use of the royalty moneys (Question 4.28). Despite the fact that, as found during the field work, there is a healthy relationship and level of collaboration between the Company and both the municipal and provincial governments, with the exception of the municipal government, all three other groups perceive that the royalty moneys paid by the company have not been used properly, as depicted in Figure 52. This topic is more sensitive from the CVSA?s point of view considering that for many years, in respect to the fiscal stability agreement, the royalties paid by the company were fixed at 1%. However, recent changes regarding royalty regulations determined that regardless of the federal agreement, since 2012, the province would enforce 3% royalty on all mining companies in the province, including the CVSA. \t ? 141 Figure 53 - Boxplot of the Answers Scores for Question 4.28 for C, G, MC and MCU ? ?I think the local government has made proper use of the tax & royalty moneys paid by the mining company.? Applying ANOVA test to the scores for question 4.28, the p-value is 0.003 <0.05, thus there is a significant difference among these four groups. Furthermore using multiple comparison it was found that there is a significant difference between government and community (p-value = 0.012 <0.05), mining company and government (p-value = 0.018<0.05) and union and government (p-value = 0.004 <0.05). Based on the fieldwork findings it is evident that the CVSA has been playing an important role with respect to improving the quality of life in the Puerto San Juli?n within the planning process. However, as captured in some of the interviews, the Plan 2020 needs to be updated, and it is expected that the same approach in which the community at large was invited to participate, will take place again. Additionally, people are skeptical regarding whether or not the Development Agency will be able to generate enough jobs to counterbalance the loss of jobs when the mine ends operations. This perception was voiced by some community members during the interviews when they informed the researcher that only a few jobs were created as a result of the entrepreneurship initiatives supported by the Development Agency. Finally, the community hopes and expects that both the CVSA and the local government will adopt better engagement approaches through which higher levels of information sharing and meaningful participation could be promoted. 6.1.2.5.5 Performance The element Performance in the Guideline is made up of the following sub-elements: implementation, monitoring and evaluation of projects. Plan 2020 functions as a compass through which to guide the Development Agency?s actions regarding whether the implementation of activities and projects that are undertaken by the Agency are in alignment to the plans that were established in the Plan 2020. Examples of this include the case of the establishment of an incubator office, and investment towards supporting local entrepreneurs. In relation to Monitoring and Evaluation - important elements for assessing the \t ? 142 performance and results of implemented projects, it was found that improvements are needed since no systematic mechanism to monitor and evaluate projects are in place. Records are kept in relation to how many projects were funded and how much money was allocated, but no specific indicators have been established to monitor progress regarding the investments made in the community through the Development Agency. Similar findings were reported by the Sustainability Review Panel that assessed the AngloGold Ashanti annual report, and which also suggested that metrics for measuring community impacts and development were needed (The Sustainability Review Panel, 2013). In relation to the Plan 2020, and as a result of the democratic and comprehensive process that was undertaken to create it, local government as well as municipal councillors and other individuals and group representatives of the civil society have all agreed that the Plan 2020 is a public document that represents the interests and desires of the citizens of Puerto San Juli?n. Considering this, a public and official commitment was made by key stakeholders indicating that regardless of the political party or the individual elected to become the mayor in San Juli?n in the future, the Plan 2020 would be adopted as a reference for any new administration(s) as it represents the will and interests of people from San Juli?n. This has not yet been verified in practice, since the current administration is in its uninterrupted third term. However, the very fact that many groups, including those in opposition to the current government, participated in this public long term commitment is interesting, and must be highlighted as it helps ensure that regardless of the political orientation of the local administration, there is a guide that represents the community wishes, and it should be taken into account. That being said, some study participants pointed out that in terms of the implementation of the Plan 2020, the current administration uses the plan to capitalize on things that are important to the government or which result in their own increased visibility. In the example of the renovation of an old and deactivated movie theatre, despite its cultural and historic importance, the reactivation of the theatre is not expected to create many jobs or to be economically sustainable. On the other hand, the delivery of buildings and infrastructure projects are typically a preferred approach of mining companies and governments as they are very visible within the community and in many cases, carry the name of those who sponsored them. A Business Incubator office was established in 2012 by the Development Agency. It has one employee seconded by the local government who, in addition to providing information for potential new entrepreneurs, also monitors the development of the projects supported by the Development Agency. This provides insight and opportunities for both entrepreneurs and the Development Agency to help them improve their businesses results. As one of the recommendations in the Plan 2020 was that a Business Incubator Office should be established to provide support to local entrepreneurs. The role of the Incubator Office is also to build capacity within the local population, as in the cases of the organization and provision of courses on management and accounting in partnership with the local university. Question 5.1 assesses views on query ?I think the right people are involved with the implementation of local community projects.? As reported during the interviews by both the community and union \t ? 143 participants, there is room to enhance community participation in the planning and implementation of projects. In addition, as stated earlier, the community also would like to be more informed regarding the progress and results of the projects implemented. Similarly, CVSA attributed modest scores to Question 3.3 (Figure 43) regarding their belief that the people attending community meetings were not representative of all existing community groups. Figure 54 - Boxplot of the Answers Scores for Question 5.1 for C, G, MC and MCU ? ?I think the right people are involved with the implementation of local community projects.? Table 63 - Comparison Between Responses to Question 5.1 Element 5: Planning ? Sub-Element: Implementation Question 5.1 ?I think the right people are involved with the implementation of local community projects Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 6.00 1.20 4.17 1.34 4.68 2.96 6.83 3.39 Based on the discussions with representatives from the Development Agency as well as other participants in the survey, improvements in ways of providing support to current and potential entrepreneurs may be achieved if a more pro-active role is played by the Development Agency and Incubator Office. In addition, the quantity and the variety of people involved in the implementation of \t ? 144 community projects should be improved. The statistical tests were applied to this questions, but no significant different were found. 6.1.2.5.6. Promotion In the SEMC Framework, the element Promotion exists to ensure that information is shared at all possible levels; with community, government and within the company and its employees. Sharing information in relation to the results and achievements of a particular project is important. It is also however, important to communicate about new or existing (external or internal) procedures and processes with the goal of incorporating them into day-to-day routines, and finally into the culture, of the company and/or community. As depicted in Figure 55 and Table 64, when asked if the mining company shares the results of community projects (Question 6.1), a wide range of responses were obtained from the four groups that took part in the study. However, the perceptions of community representatives and union members suggest that there is room for improvement. Furthermore, the survey results are in alignment with the findings of the interviews where participants said that greater levels of transparency are needed in relation to communication regarding the results of projects and the figures that had been invested. Figure 55 - Boxplot of the Answers Scores for Question 6.1 for C, G, MC, MCU ? ?The mining company shares the results of community projects with local citizens.? Table 64 - Comparison Between the Responses for Question 6.1 Element 6: Promotion ? Sub-Element: Share / Communication Question 6.1 ? The mining company shares the results of community projects with local citizens. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 7.29 1.83 5.50 1.71 4.52 2.45 6.67 1.49 Applying ANOVA (Question 6.1), the p-value is 0.001<0.05, thus there is a significant difference among the means of the four groups. Using multiple comparison test, significant differences were noted between \t ? 145 the responses of government and community (p-value = 0.017 <0.05) and mining company and community (p-value = 0.002 <0.05). During the interviews, local citizens (community) reported that the local government is very efficient in publicizing its initiatives, particularly in relation to the inauguration of buildings, as seen in the case of the local theatre which was recently renovated. The company is always present at such events as they are also the sponsors of these projects. However, based on the responses of the overall study participants, projects that have less visibility or which do not result in a direct and immediate impact to the community are not easily publicized to the community. From the CVSA?s point of view, finding an appropriate approach and tone for demonstrating its continuous support for fostering local economic development in San Juli?n could be beneficial to the company?s image, and at the end of the day, would help in responding to the demands of local people for receiving more information. Before the establishment of the Development Agency, the company provided funds and implemented projects directly, thus this resulted in more direct visibility for the company. After the establishment of the Development Agency, the company continued to provide funds, but the planning and implementation of projects became responsibility of the Development Agency. As a result, perceptions regarding the role that the company plays seem to have been reduced since the execution and implementation of projects are now conducted by the Development Agency. From the company?s point of view, this is both positive and negative. It is positive as it reduces the perception that the company is the sole provider (and to some extent also functions to share responsibility). Additionally, through the Development Agency, it also empowers the community to participate in, and look after its own future. In this regard, the Development Agency functions as a buffer for the company, as many of the frequent requests for direct technical or financial support of, individual or collective projects can be directed to the Agency. It is negative because in this approach the company is less in the spotlight, situation which can inaccurately give the community the impression that the company is not doing enough for the community. Considering this, improvements in the process of communication can be established at two levels. First would be to make sure that both the government and the Development Agency accurately and periodically highlight the role and importance of the company?s role in projects or programs in which it has been involved. Furthermore, the company should have its own mode of communication through which it communicates its role, partnership and contribution for supporting initiatives and projects that will ultimately benefit the community. As suggested before, with the inception of the Development Agency, the variety of projects the company has had direct involvement in has been reduced. Therefore, the lower scores attributed by the community when asked if the company invites the community to learn about the community projects (Question 6.2), are understandable. \t ? 146 Figure 56 - Boxplot of the Answers Scores for Question 6.2 for C, G, MC and MCU ? ?The mining company invites the whole community to learn more about community projects.? 6.1.2.5.7. Perseverance In interviews with local government representatives and the company manager, it was found that the 2006 negotiations surrounding the creation of the Development Agency were not straightforward, and that it took two years to come to a consensus as both groups wanted to ensure that the legal requirements of this new agency were observed. Additionally, and equally important, was the political role that this new agency would play and how this could potentially undermine or favour both the company and the local government. The decisions regarding how many representatives the board of the Development Agency would have, and who would be invited to participate, were also a matter of great negotiation. For the company, in addition to improving the community?s quality of life and promoting local economic development in San Juli?n, the inception of the Development Agency would also function to reduce direct contact with, and dependency of, the local community. Furthermore, for AngloGold Ashanti and Cerro Vanguardia, this was part of their exit strategy for minimizing the impacts of the closure on both the community and on the company as well. With this in mind, perseverance of the company in the negotiations was critical to the successful establishment of the Development Agency. Company, government and community participants in the survey all acknowledged that the process to create the Plan 2020 was very participatory and encouraged a large amount of involvement from all groups involved. With regard to Question 7.6 which asked whether the quality of community participation is improving, the responses were generally low. However, the community attributed the lowest score in comparison to the other three groups. This is in alignment with the findings during the interviews and is justified based on the fact that in the past, a more comprehensive type of community participation took \t ? 147 place, specifically during the conception of the Plan 2020. As such, this situation is certainly influencing how people perceive community participation today in San Juli?n. As depicted in Figure 57 - Boxplot of the Answers Scores for Question 7.6 for C, G, MC and MCU ? ?I think the quality of local community participation is improving.?, although responses from the community to Question 7.6 show a wide range of responses, the average of 3.8 points (Table 65) is the lowest in comparison to the other three groups. It can also be said, based on the analysis of Figure 57 and Table 65 that the overall perceptions of the government and the company are also relatively low, suggesting that there are opportunities for improvement which would augment not only the quantity, but also the quality of community participation. Figure 57 - Boxplot of the Answers Scores for Question 7.6 for C, G, MC and MCU ? ?I think the quality of local community participation is improving.? Applying ANOVA, the p-value is 0.021<0.05, thus there is a significant difference among the four groups. However, using multiple comparison tests to analyze each pair of groups, yield p-value higher than the confidence limit of 0.05, consequently there are no significant differences between any particular combination of groups. Table 65 - Comparison Between Responses to Question 7.6 Element 6: Perseverance ? Sub-Element: Quality of participation Question 7.6 ? I think the quality of local community participation is improving. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 6.43 1.84 5.17 1.67 3.80 2.60 6.67 0.94 6.1.2.5.8. Patience An important feature of the San Juli?n community relates to the role that the local government has played and the fact that the mayor is in his third term, in spite of some criticisms. Without a doubt, this has played a critical role in allowing the continuity of dialogue with the company. A change in administration \t ? 148 would most likely result in new negotiations with the company which would at the very least delay the implementation of projects. In this context, both the CVSA, and obviously the local government, see the fact that the current administration is in its third term as a positive thing. This situation, to some extent, reduces the pressure of having projects produce overnight results. The fact that the government has been in power for several 4-5 year terms is seen as positive because it allows more time for projects, which in many cases require a long time to yield measurable and significant results ? to actually produce those results. The fact that the closure of the CVSA is expected to take place in at least 10 years also provides both the company and the government some leeway for being more patient in relation to waiting for the results of the projects that have been implemented. From the community?s point of view, the majority of the study participants see 10 years as a long time, and they didn?t find that it was an important topic for discussion at this time. This situation was also found in the Canadian case study discussed in the next section. Despite the findings from the interviews, the community presented low scores when asked about its perceptions to Question 8.1: ?I feel the mining company is patient enough to wait for the results of community projects.? Figure 58 - Boxplot of the Answers Scores for Question 8.1 for C, G, MC and MCU? ?I feel the mining company is patient enough to wait the results of community projects. \t ?Table 66 - Comparison Between the Responses to Question 8.1 Element 8: Patience ? Sub-Element: Allowing time for effective change Question 8.1 ? I feel the mining company is patient enough to wait for the results of community projects. Mining Company Mining Company - UNION Community Government Average Std Deviation Average Std Deviation Average Std Deviation Average Std Deviation 5.71 1.75 4.17 1.07 4.52 2.73 7.33 1.25 A detailed analysis of the mining company responses shows that, with exception of one survey participant who attributed the highest score in the 0-10 Likert scale (which in Figure 58 is indicated by a black dot as \t ? 149 an outlier), all the other 6 participants in the survey marked 5; suggesting that they have no opinion in relation to that question. Upon consideration, the responses of both the community and the union had a broader range of responses to the question, but it is also observed that they had much lower scores when compared to the responses of the local government and the company. This suggests that the community perceives that the company has low/moderate patience in relation to waiting for the results of community projects. 6.1.2.5.9. Passion Puerto San Juli?n is a small town of 12,000 people. The fact that the community manager and his family live in the town allows people to interact with him, not only on a professional basis, but also in a more informal way as he (as does any other local resident) maintains basic social interactions with people and groups in the community. As a result, local people who know the community manager regard him as motivated, engaged and see him as someone who cares about the community. On the other hand, it was observed that survey respondents who did not know or did not maintain a regular relationship with the CVSA community manager presented lower scores when responding Question 9.1 that assesses people?s perceptions in relation to the motivation of the company community manager. Figure 59 - Boxplot of the Answers Scores for Question 9.1 for C and G- ?I feel the mining company community manager is motivated to do his/her work.? This results raise the point, already discussed in Question 2.1 (Figure 11), that there are not enough company representatives in the community, particularly with regard to interacting and engaging with local citizens who live in the suburban areas of San Juli?n. Additionally, the importance of having more company representatives in the community may become greater when the closure of the mine becomes imminent. \t ? 150 Figure 60 - Comparison Between the Responses for Question 9.1. Element 9: Passion ? Sub-Element: Individual passion and motivation Question 9.1 ? I feel the mining company community manager is motivated to do his/her work. Community Government Average Std Deviation Average Std Deviation 5.84 2.85 8.00 1.53 6.1.2.5.10. Personality Without a doubt, the personality of the company community manager is a key element for the achievements made in San Juli?n. The long presence of the CVSA community manager in the community has allowed many local people to get to know him on a personal level. From the interviews with both local citizens and government representatives, it was gathered that trust, respect and empathy are all traits of the community manager?s personality. A government representative reports that on many occasions, his personality was critical to maintaining the dialogue going between the company and the government when tough negotiation between both groups were taking place. The mayor and the CVSA general manager seemed to have exhausted the options, and to some extent the willingness for dialogue, to reach an agreement in relation to the CSR Fund. The government representative attributes the success of this negotiation to the personality of the CVSA community manager. Despite this positive assessment in relation to the CVSA community manager, the survey resulted in somewhat medium results, as shown below. With regard to Question 10.1, study participants were asked to assess whether the community manager is the right person for the job. A closer look at the distribution of the responses (Figure 61) shows that 10 out of the 25 respondents scored 5, indicating that they have neutral or no opinion. These scores affected the average of responses by lowering them since many of the respondents attributed much higher scores. Figure 61 - Boxplot of the Answers Scores for Question 10.1 for C and G ? ?I think the current mining company community relation manager is the right person for the job.? \t ? 151 Figure 62 - Distribution of Responses Given by the Community Participants to Question 10.1. Considering the information gleaned from the interviews and the apparent discrepancies with regard to the results of the survey, a plausible justification for the lower scores obtained in the survey is that many of the study participants did not know the community manager personally and therefore attributed a score of 5 to the questions that assessed if the community manager was the right person for the job. This had the effect of lowering the overall average scores in the survey questions. This result further reinforces the importance of the CVSA enhancing its presence in the community, which as mentioned earlier, will become critical when the mine begins to discuss and implement initiatives to educate people and address aspects related to the closure of the mine. 6.1.2.6. Argentinian Case Study Conclusions As in the previous case study a summary Table 67 is shown presenting some of key findings of the Argentinean case study. The table is divided into two parts where ?Positive Aspects? and ?Aspects Requiring Improvements? are briefly discussed. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ? 1 - 4 5 (No Opinion) 6 - 8 9 - 10 Individuals 3 10 9 3 0 2 4 6 8 10 12 Number of survey participants Distribution of responses - Community \t ? 152 Table 67 - Key Findings of the Argentinean Case Study Positive Aspects Finding Remarks SEMC Linkages Development Agency (DA) The establishment of the DA supports the development of local businesses and due to its democratic approach, has the potential to improve community engagement. Planning (envisioning, resources); Participation (mobilization, capacity building, empowerment, community engagement) Performance (implementation) Puerto San Julian strategic plan The San Julian strategic plan provides a positive example of the mobilization and engagement of local residents. Here, an envisioning process examining how people believed the community would look in 2020 took place. Planning (asset mapping, envisioning, resources); Participation (mobilization, education / capacity building, empowerment, community engagement) Economic diversification Business ventures have been supported by the Development Agency. Policy (corporate commitment); Planning (resources); Participation (mobilization, capacity building, empowerment, community engagement); Performance (implementation) CSR Fund The existence of the CSR fund itself is positive, but the process of readjusting the CSR fund based on the company?s finances provides the community and local government with the opportunity to receive more money if commodity prices are high. Policy (corporate commitment); Planning (resources); Participation (capacity building, empowerment) Personality Evidence was found that the personality of the company?s community manager played an important role during the negotiations between CVSA and the local government. Personality (respect, trust and empathy); Aspects Requiring Improvements Findings Remarks SEMC Linkages Development Agency ? Board of Directors Find a way to address the possible imbalance of power existing within the board of directors Policy (governance); Participation (empowerment, community engagement); Community participation Since the creation of the Development Agency and the strategic plan, the participation of the community has decreased. The need to create mechanisms to engage more community members has been identified. Participation (community engagement, mobilization, empowerment, capacity building); Planning (project design); Promotion (sharing / communication) Community liaison The need to have a community liaison to engage closely with local citizens has been demonstrated. This need will increase when mine closure discussions will begin with the local community. Policy (corporate commitment); Participation (community engagement, partnerships, education / capacity building, mobilization) Puerto San Julian strategic plan The San Julian strategic plan needs to be updated to ensure it still reflects the needs and desires of its local residents. Planning (asset mapping, envisioning, resources); Participation (mobilization, education / capacity building, empowerment, community engagement) Development Agency Needs to engage more with local community as well as find mechanisms to share the work that has been implemented by the DA with the local community. Policy (governance); Participation (mobilization, empowerment); Promotion (sharing / communication) Government transparency There is a need for increased transparency and accountability regarding how and where the CVSA Social Responsibility money and the royalty and tax money are invested. Policy (governance); Planning (resources); Promotion (sharing / communication) Community participation / engagement Create mechanisms to engage the various distinct groups within the community (e.g. youth, elders, women, etc.). Presence; Participation (mobilization, capacity building, empowerment, community engagement, partnerships); Promotion (sharing / communication, consolidation) Monitoring and assessment Create monitoring and assessment mechanisms regarding the initiatives supported by the DA to ensure that expected results are achieved and that the necessary changes take place in a timely fashion. Planning (project design, performance indicators, resources); Performance (implementation, monitoring and evaluation towards continuous improvement) \t ? 153 The economic challenges that affected Argentina and Santa Cruz in the 1990s turned into an opportunity for Cerro Vanguardia to become an important player in the region, and opened up opportunities for it to maintain good relationships with all stakeholders. The community understands the social and economic importance of the company to the region. Consequently it has shown some concerns regarding the mine?s closure and its potential social and economic impacts. However, since the closure of the mine is still perceived as in the distant future, people do not yet feel that it is important to discuss the issue at this point in time. Furthermore, the fact that the CVSA exploration strategy is to keep finding more reserves, closing the mine in ten years does not seem either realistic or real to the local population. The company is aware of its significant importance to the community, and even if the exploration studies are confirmed and the mine?s life is extended to 2029, the company has already begun taking measures towards contributing to the implementation of mechanisms to foster the local economic development of Puerto San Juli?n. At the time the field research was conducted, the CVSA reported that it was currently updating its closure plan, and that only after the plan is completed will it begin to provide the community with details about the closure of the mine. As a result of the fieldwork and from the information gathered from the interviews and surveys, one can conclude that, because of the initiation and implementation of activities by the Development Agency, a progressive attitude, which has the potential to positively contribute to the local economic development in Puerto San Juli?n, is taking place. Furthermore, considering that there are still at least ten years to the closure of the mine, all local players (government, company and community members) still have time to work on areas that need improvement in order to produce and maximize positive and concrete results before the mine ends operation. Some of the areas that need improvement which were identified during this study relate to enhancing community participation in the planning and implementation phases of projects. As stressed by Parker (2006) in relation to the Sullivan case, community leadership was key in the success of the closure of the mine. Issues of transparency regarding how and where funds, provided by the company are used are also an issue that has been identified as requiring improvement. These findings are in alignment with what was found in Mutti et.al.?s (2012) study which investigated mining CSR initiatives in Argentina and where it was found that ?inadequate communication is the major obstacle to effective stakeholder engagement? (p. 220). The asset mapping and the subsequent development of the San Juli?n Plan 2020 functioned as important mechanisms through which to guide the company?s (as well as government and community?s) efforts towards implementing initiatives and projects that are important to the community and which can be sustained after the mine ceases operation. What is needed at this stage is an update of the Plan 2020 to ensure that it still represents the needs and wishes of all individuals and groups in San Juli?n. Furthermore, a systematic mechanism to periodically update the Plan 2020 should be created where a monitoring committee, formed by a diverse group of community representatives assesses whether the initiatives and projects implemented in San Juli?n are in alignment with the Plan 2020. Employing such \t ? 154 an approach would ultimately promote broader community participation and provide legitimacy and transparency to the process. Communication and community engagement are important elements that the company, government and the Development Agency all need to give immediate attention to. It would be of benefit to the company if it would focus on communicating its role and its contribution to the Development Agency to the public at large. In turn, the Development Agency could implement mechanisms through which to inform local residents of its mandate, activities and the results of the projects that have been undertaken. With exception of the process to create the Plan 2020, public participation in San Juli?n is modest and it became clear from the interviews and surveys that local people see the need to augment public participation. On the other hand, the same people who took part in this study perceived that local citizens are not motivated enough to take part in community projects. Furthermore, specific groups including youth, women and seniors are not involved in the process. The study also revealed that community members and union representatives are skeptical, and that they do not believe that the socio-economic situation in San Juli?n will be better after the mine is closed, thus further reinforcing the importance of community engagement and participatory planning. The fact that the CVSA does not have a community liaison officer working on the ground with the local people, and that this work is relegated to the CVSA community manager, is seen by local people as a limitation. They further believe that more people representing the company should be put in place, particularly with regard to engaging with those who live in more remote / rural areas. Another important element identified in the research that deserves attention relates to the creation of indicators and the establishment of procedures through which to monitor the progress and results of the initiatives sponsored by CVSA and the Development Agency. This is also supported by the findings and recommendations made by the Sustainability Review Panel that reviewed the AngloGold Ashanti 2011 Annual Report, and suggested that ?Greater clarity as to the global responsibilities associated with being a global company, especially with regard to employees and communities and specification of framework and associated metrics for measuring community impacts and development? (AngloGold Ashanti, 2011, p. 22) are needed. It was found during the interviews that a perceived imbalance exists in relation to the composition of the Development Agency Board, and that this could favour the interests of the local government and / or the company since the provincial government, the local current administration and city counsellors representing the majority and minority parties, all sit on the board. Furthermore, in relation to the union, its representatives were vocal in suggesting that they should also be granted a seat on the board of the Development Agency ? something which they do not currently have. Finally, it is important to highlight the unique commitments made by the current local administration, opposing parties and other stakeholders with regard to adopting the Plan 2020 as a reference tool to guide the local administration?s initiatives and projects. The rationale behind it is that since the Plan 2020 was conceived through a democratic process it should not be viewed as a political instrument to benefit \t ? 155 any specific party, but rather be respected and approached as an instrument that represents the needs and wishes of the community as a whole. 6.1.3 Diavik Diamond Mine ? Canada (Northwest Territories) 6.1.3.1 Introduction This section is the result of a thirteen-day field investigation that took place at Diavik Diamond Mines Inc. (DDMI) in Yellowknife, Northwest Territories (NWT), Canada from September 29th to October 11th, 2012. The objective of this fieldtrip was to conduct research, interviews and distribute surveys about mine closure and its social and economic implications. This study consists of the third and final case study of a PhD investigation that assesses the perceptions of community members, government officials and company representatives regarding mine closure. The overall objective of the study is to assess peoples? perceptions in relation to the closure of the mine and to gain a better understanding of their beliefs with respect to the initiatives implemented by DDMI in order to circumvent or reduce the impacts that closing Diavik will have on the community. In order to attain a comprehensive overview of the situation in the mining industry in the NWT today, it is important to examine the situation with respect to the socio-economic, political and historical context of the colonization that took place in the area and throughout what would become Canada. Particular focus needs to be placed the interactions between the First Nations, people who were the original inhabitants of the area, and the conquering European powers. One of the first sets of interactions between these two distinct cultures occurred with respect to the fur trade that took place in 18th century. The fur trade was the first ?economic force that triggered new relationships of reciprocity? (Gibson, 2008 p. 54) with the First Nations people. Treaties were also another important force which helped shape the local context in the NWT. Furthermore, issues related to land claims, disputes, and ownership are also critical elements that have, and continue to influence the social, economic and political context of mining in the territory. The following sections aim to set this complex situation in context. 6.1.3.1.1 European Explorers, Treaties, Residential Schools and Canada First Nations ?The injustices of the past and present have engendered a deep mistrust of outsiders, in this case, governments and mining companies.? MMSD Report - Breaking New Ground, 2002 p.200. The Dene people were the first inhabitants of what is now known as the Northwest Territories. Previous to contact, the Dene were made up of small bands of hunters who followed migrating caribou and other animals into areas near Great Slave Lake, Great Bear Lake and along the Mackenzie River. Today, there are several different tribal groups that make up the larger Dene group. These groups of Dene live in communities along the Mackenzie River and near Great Slave, and Great Bear Lakes. These ?groups are the Chipewyan, Dogrib, Yellowknives, South Slavey, North Slavey, Gwich'in and Sahtu Dene? (GNWT Health and Social Services Careers, 2011). \t ? 156 Ever since the 1763 Royal Proclamation asserted ?that people of the North Americas had existing rights and established a system of surrendering these rights by treaty,? land issues became a major challenge and point of contention between Aboriginal people and the federal government (Nation, 2003). Currently there are nine land, resource and self-government negotiations taking place in the Northwest Territory alone32. After many years of negotiations, the T??ch? Government was established in 2005. The Land Claims and Self-Government Act provides the T??ch? with ownership of 39,000 km2 of land (including subsurface resources). As part of the agreement, the T??ch? receive $152 million over 14 years as well as a share of the resource royalties from resource development in the Mackenzie Valley that is collected by the Federal Government (GNWT Aboriginal Affairs, 2008). Ever since their earliest interactions with the Europeans, Aboriginal groups became involved in trading, and in the second half of the 19th century, trapping and the fur trade became a way-of-life for many Aboriginal people (PWNHC, n.d.). It is important to note that the early European explorers introduced diseases including smallpox, measles, influenza, whooping cough, tuberculosis and scarlet fever, and that these diseases had devastating impacts on many Aboriginal communities, which were immunologically unprepared for dealing with these previously unknown ailments. For example, the Tahltan, a group living in the northwest region of British Columbia whose population had numbered in the thousands in 1838 when the first Europeans passed through their region in 1838, had dropped to under 300 by 1896 (Nation, 2003). Likewise, it is estimated that 80% of the population in the NWT Mackenzie Valley died due to European diseases in the 1800s (PWNHC, n.d.). From an Aboriginal perspective, this period was characterized by the presence of diverse negative elements which, in addition to the diseases, also included the introduction of a wage economy which undermined their capacity to support themselves by traditional means (Nation, 2003; Gibson, 2008). The influence of the Europeans also strongly impacted Aboriginal traditions and spiritual belief systems. This was particularly the case after the arrival of Christian missionaries in the NWT in the 1850s and 1860s (Milwaukee Public Museum, 2013). In 1867, ?the Sisters of Charity, which were also known as the Grey Nuns, established a school and a hospital at the Providence Mission, a Roman Catholic mission that had been built in 1861? (Milwaukee Public Museum, 2013). Many traditional practices, including burial practices, were strongly affected or eliminated as a result of the impact of the Christian missionaries. For example, ?In the days before the missionaries, when a person died they were wrapped in clothing and left on a scaffold. Since the arrival of the missionaries in \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?32 1) Akaitcho Treaty 8 Negotiations; 2) Inuvialuit Self-Government Negotiations; 3) Gwich'in Self-Government Negotiations; 4) Deh Cho Process (land, resources and governance negotiations); 5) D?line Community Self-Government Negotiations; 6) Northwest Territory M?tis Nation Process (land and resources negotiations; 7)Tulita Yamoria Community Secretariat Self-Government Negotiations; 8) Norman Wells Self-Government Negotiations; 9) Fort Good Hope and Colville Lake's negotiations (AADNC - http://www.aadnc-aandc.gc.ca/eng/1100100025943/1100100025945). \t ? 157 the 1850s, graves are now dug with white picket fences and crosses are erected around the grave? (PWNHC, n.d). As stipulated by the Royal Proclamation of 1763, the new government of Canada was required to enter into a treaty-making process with the First Nations in Western Canada (eCulture, 2008). In total, eleven numbered treaties were signed with First Nations groups between 1871 and 1921. Most of the settled lands in Ontario, Manitoba, Saskatchewan, and Alberta, were transferred from First Nations to the Crown (the Government) through treaties. Mineral resources were the main incentive for the negotiation of ?Treaties 8 and 11 as the federal government laid claim to the region? (Gibson, 2008, p. 53). The effects of the diseases brought by the Europeans also played a role in the signing of the treaties, since Aboriginals had hoped that medical care could be provided through the treaties. A smallpox epidemic swept over the Treaty 8 area from Fort Chipewyan to Fort Resolution? The Indians had asked for medical care before signing the Treaty. It had been promised to them. Pitifully little was provided in the years that followed (Fumoleau, 2004, p. 139 as cited in Gibson, 2008, p. 71). Embarking into the treaty process was an uncommon approach for the British since, in their empire building, they typically acquired land by purchasing it or through armed conflict (Goodwill & Sluman, 1984). In this regard, Goodwill and Sluman (1984) note that the decision to pursue the treaty process with First Nations people was the result of the recently-formed Canadian government not being able to afford to enter into a war with the original inhabitants of the region. This situation is confirmed in the following quote: ?It was impossible to ignore them [the Aboriginals]. It was also impossible for the young nation to fight them. The Americans were spending twenty million dollars a year for their bloody Indian conquests; Ottawa had about that same amount of money available to run all the affairs of the entire country? (Goodwill & Sluman, 1984, p. 4). For the Aboriginals, the practice of treaty-making dates back to before the first European contact. First Nations would commonly make use of oral treaties among themselves to resolve land disputes and to end other conflicts. Furthermore, trade and marriage arrangements were also commonly established between tribes (Canada in the Making, 2005). Today, treaties are understood to be agreements made between the Crown (the Government) and First Nations people. Within these treaties, the First Nations typically exchanged some of their interests in specific areas of their lands in return for various kinds of payments and promises from Crown officials (AANDC, 2010a). From the Government of Canada's perspective, Treaties were intended to open land for settlement and Crown use by exchanging all rights over land for reserves, harvesting rights, and other benefits. Many Aboriginal people do not agree with this interpretation and see the Treaties as peace and friendship agreements between sovereign nations. In addition, because of the unique and isolated circumstances of \t ? 158 the NWT, the reserves were never established and the Treaty relationship remained unfulfilled (AANDC, 2010a). The concept and practice of written treaties was introduced by the Europeans, but they soon became viewed as problematic by Aboriginals since the written treaties ?did not include oral promises made to the Aboriginals in the written treaty? (Canada in the Making, 2005, paragraph 2). From the point of view of the British Crown, the treaties were considered to be an exchange for the surrender of Aboriginal Rights and Title to land (eCulture, 2008). ?The Government of Canada and the courts understand treaties between the Crown and Aboriginal people to be solemn agreements that set out promises, obligations and benefits for both parties? (AANDC, 2010a, paragraph 3). In contrast, the First Nations believed that in agreeing to sign these treaties ?they were entering into a trust relationship with the representatives of the British Crown, who wished to coexist alongside them, sharing the bounty of Mother Earth, as provided to them for their survival? (eCulture, 2008, paragraph 5). This clash of interpretations and expectations regarding the treaty process has led to disappointment, resentment and issues of trust between Aboriginals and Federal and territorial governments. First Nations surrendered 1,300,000 km2 of land in exchange for annual financial payments and recognized reserve lands, as well as respect of Aboriginal hunting and fishing rights in the seven treaties signed from 1871 to 1906. The financial recompense provided to the Aboriginals was of $5, the sum of which is still being paid today on ?treaty day? to each registered Aboriginal person (AANDC, 2010b). According to Aboriginal Affairs, annual treaty payments continue ?not only to fulfill an obligation, but as a symbolic reminder of the special relationship that exists between Canada and First Nations? (INAC, 2002). It appears that treaty interpretation is more of an art than a science (Devlin & Watson, 2011). Disagreements regarding interpretations of what was agreed upon in the treaties have led to innumerous court disputes, resulting in the creation of the Specific Claim Process and an administrative tribunal to deal with unresolved claims. As of 2011, 588 specific claims remained unresolved in Canada (Devlin & Watson, 2011). Another significant and consequential component of First Nations history within Canada involves the Indian Residential School system. \t ? 159 6.1.3.1.2 Indian Residential Schools First Nations education historically, consists of a system of education imposed on First Nations students that disregarded First Nations languages, cultures, collective knowledge and wisdom. (Centre for Justice, 2013) The Department of Indian Affairs was created by the federal government in 1880 to deal with the ?Indian Problem? (Virag, 2005). As a result, the government, in partnership with several church denominations (Catholic, Anglican, Presbyterian, Methodist and United Churches), established an Indian Residential School (IRS) system (Chartrand et.al., 2006) that remained in existence for approximately a century (MacDonald, 2012). The rationale behind the implementation of the IRS included using it as a means to deliver Christianity to the Aboriginal people, and as a way for the federal government to satisfy its constitutional obligations to Aboriginal people by providing them with education. To some critics, the IRS was a means by which the federal government was able to exert control over First Nations in order to attempt to integrate them into mainstream Canadian society (Chrisjohn and Young, 1997 in Chartrand et.al, 2006). Indian Residential Schools were located far from Aboriginal reserves, and children from ages five to sixteen were forcefully separated from their families to attend the schools, which remained compulsory until the 1950s. Approximately 150,000 children were taken to over 125 schools (MacDonald, 2012). A typical day at residential school was divided into half time academic studies and half time trades-related activities such as carpentry or auto-mechanics for boys, and cooking and sewing for girls (MacDonald, 2012). All aspects of life including dress code, the use of the English language, and behavior were regulated (Virag, 2005). In 1945, the family allowance that was provided by the federal government to Aboriginals was subjected to school attendance (Chartrand et.al, 2006). By 1950, the federal government began to acknowledge that the objectives of the IRS were not being achieved, and rumors of abuse at the establishments increased. A year later, the federal government began to allow Aboriginal children to attend provincial schools, but it was only in 1969 that the federal government ended its partnership with the churches (Chartrand et.al., 2006). The last residential school which was located in Regina, Saskatchewan was closed in late 1996 (Virag, 2005). In 1998, a statement of reconciliation was issued to the Aboriginal people by the federal government, and a ?healing fund? of $350 million was established to provide counseling services for former students (Virag, 2005). The influence of the forced residential school system left a wide range of negative effects on indigenous cultures, including heavy impacts ?on intergenerational ties? (Gibson, 2008 p.33). \t ? 160 For many of the approximately 80,000 survivors of these schools, the residual effects of the emotional, physical and sexual abuse they experienced at the schools have resulted in a variety of social problems including addiction and suicide (MacDonald, 2012). The Indian Residential School Settlement Agreement (IRSSA) was approved by the government of Canada in 2006, and its implementation was begun in September 2007. As a result of this agreement, survivors of IRS are able to access individual and collective measures towards healing and support, and for commemorative activities. Payments have been made to former students and independent assessment processes have been undertaken regarding claims of sexual or physical abuse which took place during the time the residential schools were in operation (Strahl, 2008). The Indian Residential Schools Truth and Reconciliation Commission was created in 2008. Later that year, a formal apology was offered by Prime Minister Stephen Harper on behalf of the Government of Canada and all Canadians, to former students of the IRS for the impact that the schools had on their heritage, culture and language (Strahl, 2008). 6.1.3.1.3 Socio-Economic Context of Aboriginal Communities in the NWT According to 2011 figures, Aboriginal peoples in Canada totaled 1,172,790 people, or 3.8% of the national population (Census, 2011). The Canadian constitution recognizes three groups of Aboriginal people: North American Indians (First Nations), M?tis and Inuit. In 2010, there were 616 First Nations bands in Canada, comprising of more than 50 nations or cultural groups (AANDC, 2013). Of the three Aboriginal groups, North American Indians (698,025) made up the largest population, followed by M?tis (389,780), and Inuit (50,480) (HRSDC, 2013). Employment rates in the territory, as of November 2011, were at 70.4% compared to the national rate of 61.9%, translating to 22,600 out of 32,100 residents 15 years of age and older being employed. The unemployment rate is at 7.0%, and the residents of the NWT are some of the richest in the country (GNWT, 2012a). According to the 2011 census, there are 33,730 residents in the Northwest Territories. Of these 15,984 or 48.18% are Aboriginal and 17,746 or 51.82% are non-Aboriginal (NWT Bureau of Statistics, 2013). Of the total inhabitants 19,234 leave in Yellowknife today, which represents an increase in approximately 26% when compared to 1991, before the Diamond mines begin constructions (NWT Bureau of Statistics, 2013). The Aboriginal population is distributed over 40 different settlements comprising 35 distinct Aboriginal communities (HRSDC, 2013). In the Northwest Territories, the Aboriginal rates for attaining a university degree (4.89%) are higher than the national average of the Aboriginal population of 3.3% (Health Canada, 2009). Figure 63 which follows provides a classification of NWT residents in relation to education levels by category (GNWT Bureau of Statistics, 2012). \t ? 161 Figure 63 - NWT Population & Education Levels Source: GNWT Bureau of Statistics, 2012 In contrast to the non-Aboriginal population, Aboriginal people are 7 times less likely to have university degrees (GNWT Bureau of Statistics, 2012). According to a 2012 self-assessment regarding the quality of health among all NWT residents, 49% of people older than 15 years of age perceived that his/her health was very good/excellent. Among Aboriginals in the same age category, 36,6% perceived that his/her health was very good/excellent, in contrast to 63.3% of all non-Aboriginal people living in the territory. An analysis of these perceptions over time shows that the General Health Indicator (GHI)33 for all NWT inhabitants has decreased to 49% in 2012 when compared to a result of 53% obtained in 2001 (GNWT Bureau of Statistics, 2012). Mental health is also an issue of serious concern in the Northwest Territories, with substance abuse, alcohol and suicide being the worst in Canada (GNWT, 2012a). The Northwest Territories struggles with addiction issues every day. Youth, adults, elders, and children are faced with the harmful impacts of addictions either directly or indirectly with inter-generational effects. NWT communities have experienced a sharp increase in family and municipal income and also an influx of transient workers. Both are contributing factors to a marked increase in social problems faced by people in the NWT (? 2). \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?33 Self-perceived general, mental health and chronic conditions (http://www.statsnwt.ca/health/health-conditions/) 0% 5% 10% 15% 20% 25% 30% 35% Less than Grade 9 High School, No Diploma High School Diploma Other Certificate or Diploma University Degree Not Stated Less than Grade 9 High School, No Diploma High School Diploma Other Certificate or Diploma University Degree Not Stated All People 9.37% 20.60% 21.75% 28.29% 19.31% 0.68% Aboriginal 17.82% 32.02% 18.77% 25.51% 4.89% 0.99% Non-Aboriginal 1.75% 10.32% 24.43% 30.80% 32.31% 0.39% NWT Population & Education Levels \t ? 162 The effects of the residential school system has been reported as having a direct correlation to addictions problems: ?As a result of the stresses of a booming economy, residential school abuse and associated social issues, the NWT has seen a rise in addiction issues particularly in the areas of gambling, alcohol and cannabis/cocaine use? (Canadian Centre on Substance Abuse, 2009, ? 3). The following Figure 64 displays the statistics regarding alcohol consumption in the NWTs. Despite the fact that the number of Non-Aboriginal current drinkers (85.7%) is higher than the Aboriginal population of current drinkers (69.2%), the proportion of those reporting heavy drinking (defined as having five or more drinks on one occasion) is higher among First Nations people (52.1%) than the general population (24.4%) of residents in the territory (Health Canada, 2009). In terms of frequency of alcohol consumption, the percentage of the non-Aboriginal population that drinks more than once a week (35.5%) is almost twice that of the Aboriginal population (20.6%). Figure 64 - NWT Alcohol Consumption Source: Health Canada, 2009 Among the total of NWT residents, 15% live in low income households; similarly, 15% of all NWT households have an annual income below $30,000 per annum. Aboriginal residents face much higher rates of poverty than non-Aboriginal residents. For instance, 22% of the T??ch?, Dencho and Beaufort Delta population live in low income conditions (Wilson & Macdonald, 2010). In 2006, the median income for Aboriginal peoples was $18,962 ? 30% lower than the $27,097 median income for the rest of Canadians. While income disparity between Aboriginal peoples and the rest of 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Population NWT Aboriginal Non-Aboriginal Employed Not-employed Population NWT Aboriginal Non-Aboriginal Employed Not-employed Current Drinker 77.72% 69.20% 85.69% 82.95% 65.14% More than once a week 29.08% 20.64% 35.50% 32.88% 17.79% 5 or more drinks 36.24% 52.10% 24.38% 33.83% 43.86% NWT Alcohol Consumption \t ? 163 Canadians narrowed slightly between 1996 and 2006, at this rate it would take 63 years for the gap to be erased (Wilson & Macdonald, 2010, p. 3). Based on the 1996 Census, Aboriginal peoples living in urban areas were more than twice as likely to live in poverty (as defined by the Low Income Cut-Off34) as non-Aboriginal people (Wilson & Macdonald, 2010). Despite higher than average employment rates and the current levels of economic growth in the territory, the Northwest Territory, similarly to many developing nations, is facing the challenge of wealth distribution. The Canadian average income gap is $153,635.15. In the case of NWT, this number is $189,379, resulting in the largest gap between the rich and the poor in the country (GNWT, 2012a). Another indicator of the wealth distribution imbalance can be seen through the growing number of NWT residents accessing food bank services. Here, despite the territory?s economic growth, Food Bank Canada has reported that there was an increase of 78.8% of people accessing help from the food banks in the Yukon, NWT and Nunavut. Of those, 38.5% are children and 11% are Aboriginal (Food Banks Canada, 2012). In the particular case of the NWT, there are two Food Bank branches in Yellowknife. In 2001, these two branches combined provided services to 454 individuals (270 adults and 275 children). In 2010, these numbers grew to 953 where 447 were adults and 506 were children (Food Banks Canada, personal communication, May 24, 2013). Another key feature of Aboriginal society which plays an important role regarding the interactions between governments and (in particular) mining companies involves the importance of Traditional Knowledge (TK). The Government of the Northwest Territories (GNWT), in its Policy 53.03, defines TK as ?knowledge and values, which have been acquired through experience, observation, from the land or from spiritual teachings, and handed down from one generation to another? (GNWT, 2005). The NWT Government recognizes that Aboriginal traditional knowledge is a valid and essential source of information about the natural environment and its resources, the use of natural resources, and the relationship of people to the land and to each other, and will incorporate traditional knowledge into government decisions and actions where appropriate (GNWT Environment and Natural Resources, 2012). In an attempt to show interest in learning from Aboriginals, and to show respect for their values and traditions, Traditional Knowledge has been incorporated in the environment assessment activities undertaken by the mining industry. This approach has been criticized by Widdowson and Howard (2006) because TK?s ?spiritual component and unscientific reasoning,? is seen as a threat to environmental assessment since ?spiritual beliefs cannot be challenged or verified. [?] The acceptance of spiritual beliefs as ?knowledge? by governments was dangerous because it could be used to justify any activity, including actions that were environmentally destructive such as the overharvesting of resources? (p.1). \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?34 ?Low-income cut-offs (LICOs) convey the income level at which a family may be in straitened circumstances because it has to spend a greater proportion of its income on necessities than the average family of similar size? (GNWT Bureau of Statistics, 2012). \t ? 164 It is noteworthy that the first criticisms made by Frances Widdowson date back to 1996 when the author worked for the GNWT as a contract employee. Because these criticisms, she was punished with a one week suspension for publically criticizing the government (Widdowson and Howard, 2006). One reason for incorporating TK in any mining-related business is because it can be viewed as an opportunity to ensure that Aboriginal traditions and values are respected. On the other hand, from a more business-oriented point of view, incorporating TK can be seen as one more layer of complexity to be considered when seeking business opportunities that involve Aboriginal peoples. As we have seen, Aboriginal history is marked by a wide range and variety of inequalities and oppression where ?systems of governance, residential school, a wage-based economy, and forced settlement were imposed on Aboriginal people and were not in line with traditional values or ways of life? (GNWT, 2012b, p. 3). This context and the historic events associated with the devastation of their traditional lifestyle and distinct way of understanding and approaching natural environment has shaped the way Aboriginal communities interact with each other, the many levels of government and the mining industry. In addition, more recent negative experiences with the mining industry (i.e. the Con Mine, where it is felt that the mine hasn?t contributed to the growth and economic improvement of the community, and the Giant Mine, which has left an enormous negative environmental legacy) have also affected the way Aboriginal groups interact with both government and industry. According to Gibson & Klinck (2005), these historical events have had a strong influence on the dynamics of the relationships between Aboriginal and non-Aboriginal peoples. This is further aggravated by the nature of the resource extractive industry which is invasive, capital intensive and disruptive to the traditional lifestyle of these communities (Gibson & Klinck, 2005). Despite these challenges posed by the extractive sector, both Aboriginal governments and communities have understood and approached mining as an opportunity to support the economic growth of their communities and the quality of life of their people. 6.1.3.1.4 Federal and Territorial Governments The Northwest Territories entered the Canadian Confederation on July 15, 1870, but the NWT as it is known today, was created in 1999 when the original area was divided to establish the Nunavut Territory. The main distinction between provinces and territories is that ?while provinces exercise constitutional powers in their own right, the territories exercise delegated powers under the authority of the Parliament of Canada? (Government of Canada ? Intergovernmental Affairs, 2010, ? 2) From the Aboriginal point of view, a T??ch? member notes that ?when they created the GNWT, we were not consulted, they did this on their own, and they declared Governance by themselves? (Gibson, 2008 p. 72). Gibson (2008), citing Asch (1977, p. 54), notes that ?as the price of fur fell, beginning at the end of the Second World War and lasting through the end of the Korean War, the government introduced family \t ? 165 allowance and old age pension payments, which partially helped to sustain families (p. 72).? However, the introduction of these financial benefits directly to the heads of nuclear families and individuals completely undermined the economic rationale of the local families (Gibson, 2008) and also impacted their traditional way of living. Due to particular social, economic, geographic and demographic characteristics, providing public services in the North has always been a challenge. Considering this, the federal government through a Territorial Formula Financing (TFF) program, provides financial resources to the three Canadian territories (Yukon, NWT and Nunavut). The TFF ?supports territorial governments to fund basic public services in the area, such as hospitals, schools, infrastructure and social services (Government of Canada ? Intergovernmental Affairs, 2010, paragraph 4). Approximately 20% of the GNWT revenue is generated within the territory, and 80% of the GNWT revenues are made up of grants and transfers from the federal government (Ellis, 2000), which is expected to change with the devolution agreement. As a result of the expansion of the resource extractive industry, the NWTs are experiencing a period of great economic growth. For instance, territorial GDP grew by 55% between 2001 and 2006, and it is expected to double by 2015. The territory has the highest GDP per capita (Wilson, 2009). NWT families have the highest median incomes in Canada: $94,220 (2007) ? 42% above the national average (GNWT Industry, Tourism and Investment, n.d.). Personal income increased by over 25% between 2000 and 2005. The average household income in 2005 surpassed $90,000 and 38% of households made $100,000 or more a year, which is double the Canadian average (Wilson, 2009). The federal, territorial and local governments, in conjunction with the mining industry, are the main employers in the region. There are 4,742 employees in the public service in the NWT (GNWT Department of Human Resources, 2010). The average age of employees is 44 years; the average length of service of employees is 8.4 years; and the average salary is $81,749 CAD. At the end of 2010, there were 1,508 Indigenous Aboriginal employees representing 32% of the public service (GNWT Department of Human Resources, 2010). The turnover rate decreased from 15.3% in 2008 to 13.3% in 2009 (GNWT Human Resources, 2009). In 2010, the annual employee turnover rate was 12.0% showing improvement in relation to 2009 where turnover rate was of 13.3%. However, it is still twice the average of Canada?s turnover rate (7.2%) (The Conference Board of Canada, 2013). Over 40% of the NWT government workforce will retire in 10 years and 30% in 5 years. The government has realized that this situation required some action on their part. In order to maintain similar levels of services, the territorial government has established a 10 year Public Service Plan that, among other initiatives, aims to reduce the turnover rate and attract more qualified people from outside the territory (GNWT Human Resources, 2009). \t ? 166 Recently, there have been lengthy discussions between the federal government and the GNWT in relation to what has been called ?devolution,? which would provide ?Northerners with more control over their own economic and political destiny (AANDC, 2012, paragraph 1). Devolution refers to a transfer of responsibility from the federal government to the territory. Between 1987 and 1995, other devolution agreements were signed with the territory, transferring authority over with respect to hospitals, highways, forestry management and education (Up Here Business, 2012, p. 26). In this current series of devolution discussions, the federal government is transferring powers to the territory to make decisions about land, water and resources. Both the federal and territorial governments see the devolution in terms of the economic benefits that this will generate. Table 68 summarizes the benefits that GNWT will gain by assuming full control of its own land and resources. Table 68 - Benefits of Devolution to NWT $65.3 million: If devolution takes hold two fiscal years from now, as hoped, this is how much the feds will give the GNWT to deliver the programs and services it will inherit from AANDC ? everything from issuing prospecting permits to dealing with squatters. This amount, to be increased each year, will come in addition to the hefty federal transfer payment ($1.1 billion this fiscal year) $28 million: Besides creating a pile of new work for the GNWT, devolution will also generate $28 million in annual spin-off business opportunities. Got a business that creates or prints government fact sheets and letterheads? Then this is the time to dust off your design templates. $26.5 million: The amount the GNWT is receiving to help it make the post-devolution transition. The cash is essentially earmarked until the signing of the final agreement, which is expected to occur this fall. This is the federal government?s way of saying, ?Here?s some money to help with the move, son.? $65 million: With devolution in place, this is what the GNWT estimates it would have kept in royalties from the 2011-2012 fiscal year. To put it in perspective, the figure is about on par with this year?s operating budget for the territory?s Department of Environment and Natural Resources. Source: Up Here Business, 2012, p. 28 In addition to the direct economic benefits it is believed that devolution will bring, it is also likely to reduce the number of bureaucratic processes that any project or permit would need to acquire. This in turn would build a better regulatory system and make permitting processes faster and less complicated. In fact, supporters of devolution believe that ?a closer connection between resource companies and the territory will result in the needs of communities being better reflected in the development of projects? (Up Here Business, 2012, p. 28). Despite the fact that devolution could improve the regulatory system and facilitate permitting processes, the mining industry sees devolution as an additional element of uncertainty and has reported it as another reason for lower numbers of exploration projects in the territory (Vela, 2011). With regard to Aboriginals, the GNWT has agreed to share up to 25% of its royalties with NWT Aboriginal governments. Five out of seven Aboriginal groups have signed the Devolution Agreement in Principle (AiP)35. In 2011 the Inuvialuit Regional Corporation (IRC) and the Northwest Territory M?tis Nation (NWTMN) signed the NWT Lands and Resources Devolution Agreement-in-Principle (AiP). In 2012, the \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?35 ?Signing the AiP indicates an agreement with the basic premise of devolution negotiations ? that the management of public land, water and resources in the NWT should be transferred to the GNWT. It also means that the parties agree to work towards a final agreement on matters identified in the AiP? (http://devolution.gov.nt.ca/faq/general-devolution-faq/#Aipsign). \t ? 167 Sahtu Secretariat Incorporated (SSI) and Gwich?in Tribal Council (GTC) added their signatures to the AiP, and in 2013, the T??ch? Government also signed. Until May 2013, the Akaitcho Territory Government and Deh Cho First Nations have not signed the AiP (GNWT Devolution, 2013). Criticisms have been put forward regarding the lack of opportunities that the general population of the NWT has had with regard to participating and in the decision-making process around accepting or declining the arrangements proposed by the federal government. ?The GNWT has ALL BUT ignored the opportunity to involve citizens in developing a vision for the future of resource management? (Lessard, 2013). Despite this situation, both the federal and NWT governments announced, on March 11 2013, that ?negotiations have reached consensus on the terms for the devolution of lands and resource management from the Government of Canada to the Government of the Northwest Territories? (Prime Minister of Canada, 2013). 6.1.3.1.5 Exploration and Mining Activities in the NWT There is a long history of mining in the Northwest Territories. Due to active exploration and prospecting work that took place in the Yukon area in the late 1800s and early 1900s, the NWT began to see an influx of visitors/explorers who aimed to gain an understanding of the geology and begin to map the potential resources in the region (NWT Mining Heritage Society, 2008). By the early 1900s gold was identified in the area, and in 1920s oil was discovered at Norman Wells on the Mackenzie River (NWT Mining Heritage Society, 2008). In 1930 silver, cobalt, copper and uranium were discovered at Great Bear Lake. This ?sparked a staking rush in 1932 and 1933 and the NWT?s first mining settlement at the Cameron Bay was founded? (NWT Mining Heritage Society, 2008, paragraph 4). The first mine in the NWT, the Eldorado Mine, commenced operations in 1933, producing radium, copper and silver. In the years from 1933 through 1935, gold was found at Yellowknife Bay on Great Slave Lake. At that time, the residents of the region consisted of small bands of Dene Nation who rapidly adapted and began to do business with the foreigners, supplying meat, labor and services to the miners (NWT Mining Heritage Society, 2008). The discovery of gold deposits in the first half of the decade created another staking rush which led to the discovery and development of the Con Mine which commenced production in 1938. The Con Mine produced over 5,000,000 ounces of gold and ceased operation in 2003 (NWT Mining Heritage Society, 2008). Following in the footsteps of the Con mine, several other mines were established including the Negus Mine in 1939, the Ptarmigan Mine in 1941, the Thompson-Lundmark Mine in 1941, the Giant Mine in 1948, and the Discovery Mine in 1950 (NWT Mining Heritage Society, 2008). \t ? 168 Although at this time, gold remained the primary commodity, during World War II and the Cold War, uranium became strategic for the government of Canada, which ramped up its production (NWT Mining Heritage Society, 2008). In 1990, after more than 10 years of sampling for diamonds in the region, Mr. Chuck Fipke reached Lac de Gras and found high quality diamonds. This discovery triggered what was considered ?the largest staking rush in Canadian history? (NWT Mining Heritage Society, 2008). Currently, there are three diamond mines in operation in the NWT, and a fourth one at Gahcho Ku? Mine is expected to begin production in 2014. Ekati Mine (BHP Billiton) began production in 1998, followed by Diavik (Rio Tinto / Harry Winston) in 2003 and Snap Lake (De Beers) in 2007. Historically, mineral and petroleum exploration and development have provided the economic backbone of the Northwest Territories. In addition to the diamond mines, the Cantung Tungsten Mine has been in operation since 1962. These mines combined employ over 3,500 people of which approximately 48% are NWT residents (GNWT Tourism and Investment, 2013). According to the NWT and Nunavut Chambers of Mines, from 1996 to 2011 the three diamond companies spent a total of $12.8 billion to build and operate their mines. Of this total, $9.25 billion or 72% was spent in northern companies and on joint ventures, which include $4.2 billion or 33% of the northern spending being in Aboriginal businesses (NWT & Nunavut Chamber of Mines, 2013). The combined output of all three NWT diamond mines represents an estimated 15% of the world?s diamonds, and in 2011 it accounted for 16.09% of the territory?s GDP (Table 69). When considering the number of carats produced, these mines are ranked in 4th place worldwide. On the other hand, when the NWT diamond production by value is the focus, Canada ranks as the third largest producing country in the world (NWT & Nunavut Chamber of Mines, 2013). Table 69 which follows provides a compilation of the NWT GDP by industry from 2007 to 2011. The table also provides some insights regarding the main economic activities in the territory. Table 69 - NWT GDP by Industry (2007-2011) Gross Domestic Product at Basic Prices by Industry - Figures in Dollars ? ($ ?000,000) 2011 2010 2009 2008 2007 All industries Combined 3453.9 100.00% 3632.8 100.00% 3558 100.00% 4155.7 100.00% 4579.2 100.00% Agriculture, forestry, fishing and hunting 19.7 0.57% 16 0.44% 15.6 0.44% 20.1 0.48% 15.3 0.33% Mining, and oil and gas extraction 929.9 26.92% 1141.4 31.42% 1140.8 32.06% 1550.6 37.31% 1883.2 41.13% Oil and gas extraction 374.3 10.84% 455.9 12.55% 438.2 12.32% 513.9 12.37% 554.9 12.12% Diamond mining 555.6 16.09% 641 17.64% 613.6 17.25% 816.9 19.66% 1088.9 23.78% Construction 219.8 6.36% 246.6 6.79% 227.3 6.39% 300.5 7.23% 397.5 8.68% Transportation and warehousing 222.5 6.44% 225.7 6.21% 223 6.27% 243.3 5.85% 244.7 5.34% \t ? 169 Gross Domestic Product at Basic Prices by Industry - Figures in Dollars ? ($ ?000,000) 2011 2010 2009 2008 2007 Real estate and rental and leasing 311.2 9.01% 306.9 8.45% 303.6 8.53% 299 7.19% 298.3 6.51% Tourism 112.3 3.25% 112.3 3.09% 108.9 3.06% 119.7 2.88% 116.1 2.54% Public administration 527.7 15.28% 523.1 14.40% 505.4 14.20% 501.6 12.07% 495.5 10.82% Other sectors combined 1110.8 32.16% 1060.8 29.20% 1033.4 29.04% 1120.9 26.97% 1128.6 24.65% Source: Adapted from GNWT Bureau of Statistics, 2013. Agriculture, forestry, fishing and hunting represent the lowest participation in the NWT?s GDP, accounting for less than 0.6 %. In contrast, mining and oil and gas extraction provide the most important economic activity in the region, representing approximately 29% of the Territory?s GDP. The diamond industry accounts for 16.09% of the GDP36 while oil and gas extraction represents 10.84%. Further analysis of Table 69 indicates a steady decline in mining sector participation in the NWT GDP since 2007. A couple of factors may explain this decline: a) The 2008 ? 2009 economic slowdown impacted the extractive industry and had an effect on the economy of the NWT; b) Ekati and Diavik transitioned their mining methods as both mines went from open pit to underground. Natural Resources Canada expects that the Gahcho Ku? mine, which is associated with the operation of a number of projects which are currently at an advanced stage of development (Figure 67), is expected to compensate for lower production levels at Diavik and Ekati (NRCan, 2011). Table 69 also indicated that the real state sector has shown a 38% increase from 2007 to 2011. Similar growth was observed in the tourism industry, presenting a 28% increase when the results of 2007 and 2011 are compared. However, despite this growth, tourism remains a modest economic activity when compared to other sectors as it contributes only $110 million annually (3.25% of the NWT GDP) to the economy (GNWT, 2012c). According to the Minister of Industry, Tourism and Investment David Ramsay, ?Tourism is of great importance to our economy, and is one of the few industries that has the potential to drive economic growth in every region of the territory? (GNWT, 2012c). Economic indicators demonstrate that the NWT?s economy has grown substantially as a direct result of the diamond industry, which has consequently positively impacted both federal and GNWT revenues (NWT & Nunavut Chamber of Mines, 2013). The Government of Canada will receive an estimated $5.2 billion in royalties over the life of the Ekati, Diavik and Snap Lake diamond mines (Mining Training Society, 2013). Additionally, the commitments made by the mining companies operating in the territory to buy locally have benefited the local businesses and NWT economy. Figure 65 presents the expenditures for the three diamond companies from 1996 to 2011. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?36 When considering diamond related activities, the participation of the diamond industry is 25% according to the NWT Industry, Tourism and Investment department (http://www.iti.gov.nt.ca/mediaroom/dyk.shtml). \t ? 170 Figure 65 - Total Spent by Snap Lake, Ekati and Diavik Mines ? 1996 ? 2011 (With Permission from DDMI) Source: NWT & Nunavut Chamber of Mines, 2013 Figure 66 below depicts the cumulative and the annual expenditures made by Diavik. Figure 66 - Diavik Cumulative and Annual Spending (With Permission from DDMI) Source: DDMI, 2012 For instance, the Det?on Cho Corporation, which is the business arm of the Yellowknife Dene First Nation, currently has 16 different enterprises, of which 15 are mining related. In 2012, these businesses generated 30 million in gross annual revenues (Quenneville, 2011). Some of the Det?on Cho businesses MEASURING SUCCESS January 2013 5 Whether it is catering, transportation, site support services, mining supplies or logistics support, Northern businesses are important business partners for the diamond mining industry. A sample of the range of services provided by northern Aboriginal businesses: x Det?on Cho Corporation (Yellowknives Dene First Nation) ? Bouwa Whee Catering, Det?on Cho Logistics, Det?on Cho Mining Supplies, Det?on Cho Scarlet Security; Det?on Cho Medic North, Kete Whii/Procon, I&D Management x M?tcor (North Slave M?tis Alliance) ? Sodhexo (catering), Metcrete Services, North Slave Freighters x Tlicho Investment Corporation (Tlicho Government) ? Tli Cho Logistics, Tli Cho LandTran, Tli Cho/Orica Mining Services, I&D Management, Tlicho Domco, Air Tindi/Tlicho Air x Denesoline Corporation (Lutsel K?e First Nation) ? Denesoline Western Explosives, Ventures West, I&D Management x Nuna Logistics (Kitikmeot Inuit Association, Kitikmeot Cementation Mining Development) Companies are also investing in energy efficiency and green initiatives. Using heat recovery systems, we reduce the amount of fuel we need to haul. $0\u0003$1,000,000,000\u0003$2,000,000,000\u0003$3,000,000,000\u0003$4,000,000,000\u0003$5,000,000,000\u0003$6,000,000,000\u0003De\u0003Beers\u0003Snap\u0003Lake\u0003Mine BHP\u0003Billiton\u0003Ekati\u0003Mine Diavik\u0003Diamond\u0003Mines\u0003Total Spend by Company - 1996-2011Non?Northern\u0003Expenditure Northern\u0003Expenditure12To build ice, work crews !ood the surface of the winter road. Successful and safe winter road resupply With no all-season road access, Diavik resupplies the Diavik Diamond Mine via a seasonal ice road open each year for approximately two months. In 2011, Diavik trucked 3,859 loads (approximately 127,000 tonnes) of fuel, cement, explosives, equipment, and other materials, over the winter road.The 2011 winter road opened January 28 and of!cially closed for the season on March 31. These dates are similar to previous ye rs.The three operating diamond mines and other third party users hauled a total of 6,832 loads northbound. Backhauls totalled 557 l ads of equipment and other materials. Total tonnage hauled was approximately 239,000 tonnes.Economic prosperityProud of our legacy to the NorthAnnual SpendingTotal Cumulative SpendingThe Tibbitt to Contwoyto Winter Road, managed by a joint venture committee, which includes Diavik Diamond Mines Inc., BHP Billiton Diamonds Inc., and De Beers Canada Inc., is committed to constructing, operating, and maintaining the winter road in a safe and environmentally responsible manner. More information on the winter road can be found at http://jvtcwinterroad.ca/.Socio-economic highlightsDiavik has, for over a decade, contributed social and economic bene!ts to local communitie . Since 2000, we have generated over 6,000 person years of northern employment and spent $3.8 billion with local businesses, or 72 per cent of our total business spend of $5.2 billion.MILLIONS OF DOLLARSMILLIONS OF DOLLARSTotallative Spending Annual ing2000-2011 2000-2002(Capital)(Operations)2003 2004 2005 2006 2007 2008 2009 2010 2011Other CanadianOther NorthernNorthern Aboriginal0$100$200$300$400$500$600$700$800$900$1,000$1,100$1,2000$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500$5,000$5,500$6,000$1,459$1,710$2,074Total northernAboriginal spendTotal northernspend $3.8 B$58$310$270$604$76 $101$108$206 $215$144$105$135$178$125$147$113$143$145$256$254$245$276$155$224$112$197$84$71$120$66 \t ? 171 include: catering, camp and food services; construction; drilling and blasting; logistics, mining services and supply; real estate development; remediation and security. Similarly, the T??ch? Investment Corporation (TIC), the business arm of the T??ch? government has also benefited from doing business with the northern mining sector. TIC has 41 different businesses of which 27 are 100% owned by TIC, 10 joint are ventures (JV) with 50% or more ownership, and 4 enterprises have less than 50% ownership. TIC has a very diversified set of businesses that includes supplying explosives, air transportation, contracting, construction, catering, power generation, diamond valuation, real estate, hotel and travel. Through these businesses TIC employs up to 1,000 people. Of these, 47% are T??ch? members and 25% are northern (G. Mackenzie, personal communication, October 3rd, 2012). All together, these businesses are expected to generate nearly $200 million in gross revenues in 2013 (Romanson, 2013). The North Slave M?tis Association has established Metcor, which owns 12 different businesses that provides a variety of services to the diamond mines. These services include: catering, site remediation, transportation, construction, industrial services, and real estate development. Aboriginal people are not against mining (Zoe, 2009). However, they do want to ensure that mining can co-exist with a respect for traditional Aboriginal ways of life which include hunting, fishing, and trapping. There are also concerns that economic development from new mines will impact the social cohesion in communities and aggravate social problems (Rheaume & Caron-Vuotari, 2013; Gibson & Klinck, 2005). Despite the variety of economic benefits that the presence of the mining industry provides in the region, studies have shown potential negative impacts and effects on northern communities (North Slave M?tis Alliance, 2001; Gibson & Klinck, 2005; Gibson, 2008). Table 70below summarizes Gibson & Klinck?s (2005) discussion on the impacts of the mining industry on Aboriginal people in their paper entitled ?Canada?s Resilient North?. These impacts go beyond the dimensions of ?wages, spin-off spending in a region, infrastructure pressures, royalties and taxes?: Table 70 - Negative Impacts of Mining Activities on Northern Aboriginal Communities Dimension Details Mental Stress Long hours and roster patterns characteristic of shift work have been identified by workers as among the most stressful of all working conditions. Addictive Substances and High Risk Behaviour ?Mining poses potential risks to the health of northern communities in terms of behavioral changes, as facilitated by increasing incomes. The most obvious of theses is alcoholism or drug abuse.? ?Social and health effects follow heavy alcohol use.? Drinking has created disrespect for the institution of marriage and infidelity and divorce have increased. Hunting, Diet and Health The locations of mines have impacted the migration pattern of animals such as caribou. Better hunting technologies, such as rifles and snowmobiles are easier to access as a result of high wages. Regarding the effect on traditional lifestyles? ?A study of the Slave Lake M?tis community found 71% of workers employed by the mine reported spending less time on the land. As they are tired to go on a several days hunting expedition.? Family integrity The quality and quantity of time mine workers spend with family may affect their relationships. Limited time with the family can lead families to progressively fragment. Culture A shift in values towards those embodied in western wage labour systems may effect deep cultural changes. Loss of traditional languages \t ? 172 Dimension Details Race Certain groups can be discriminated against, either as a group through actions that exclude them, or as a group by exposure to undue risk. Source: Adapted from Gibson and Klinck, 2005 The Government of the Northwest Territories relies on natural resource extraction and as shown on Figure 67 and Table 72 below there are several other advanced exploration projects being considered. The territory is also examining the possibility of a Mackenzie Valley Pipeline which is expected to create jobs and revenue for the NWT regions. According to the Ministry of Industry, Tourism and Investment, ?the construction of this pipeline represents over 30 thousand years of total employment and $5 billion in earnings to NWT residents? (GNWT Industry, Tourism and Investment, 2013). Figure 67 - Advanced Exploration Projects (with permission from NWT & Nunavut Chamber of Mines) Source: NWT & Nunavut Chamber of Mines Despite these exploration projects and their potential for becoming operational mines, exploration activities in the NWT have been very modest when compared to those in the neighboring Yukon and Nunavut territories as shown in the Figure 69. This situation has been reported as one of the limiting factors to fostering the mineral industry in the NWT (NWT & Nunavut Chamber of Mines, 2013). This seems to be a paradox considering that both the federal and the territorial governments believe that the NWT Nunavut \t ? 173 extractive sector is key to fostering the growth and development of the NWT (GNWT Industry, Tourism and Investment, 2013). The federal government regulates natural resources on Indian reserves and federal Crown lands. As a result, each province and territory and the federal government, has its own environmental assessment act (Rheaume & Caron-Vuotari, 2013). In addition, mining companies must comply with a wide range of territorial and federal regulations, and each jurisdiction has its own set of regulations. As a result, the industry sees the regulatory approval process as being rife with duplication and overlap, and criticizes the situation suggesting that this creates major implications for all the exploration and operational phases of the life cycle of a mine (Rheaume & Caron-Vuotari, 2013). The significance of exploration activity becomes even more relevant when one considers that over 26% of the territory?s GDP originates from the extractive sector. In addition, taking into consideration that Ekati and Diavik mines are scheduled to close in 2019 and 2023 respectively, it can be anticipated that the impact on jobs and the local economy is going to be significant if alternatives are not created to replace the almost 3,000 jobs that those mines combined create. Figure 68 ? Mine Life in NWT (with permission from NWT & Nunavut Chamber of Mines) Source: NWT & Nunavut Chamber of Mines ? Institutional Presentation, 2013 \"In 1999, the mineral exploration in the NWT was 18 per cent of the national total. A few years later, it's two per cent and going down? (CBC, 2010). It goes on saying that industry representatives believe that northern regulatory processes are slow, inefficient and complicated (CBC, 2010). \t ?1,528 Jobs 1,137 Jobs 635 Jobs 204 Jobs \t ? 174 Figure 69 - Exploration and Deposit Appraisal Expenditures (with permission from NWT & Nunavut Chamber of Mines) Source: NWT & Nunavut Chamber of Mines, 2013 The mining sector perception is that doing business in the NWT is complex and to some extent unpredictable. As criticized by an exploration manager on the Fraser Institute Annual Survey Report, this is particularly true for exploration companies (Fraser Institute, 2012). It is ?Too hard to get exploration permits on a predictable schedule and without excessive and overly expensive early-stage community consultation? (p. 31). The regulatory complexity connected to Aboriginal land claims and the high numbers of proposed protected areas are the main reasons for lower numbers of exploration projects in the territory. This is further aggravated by the devolution process, which has created even higher levels of uncertainty (Vela, 2011). Furthermore, the Fraser report (2012) assesses this perception by the mining sector in terms of the mineral potential in the region and the level of uncertainty that exists in relation to administration, interpretation and the enforcement of existing regulations (Fraser Institute, 2012). Table 71 depicts the results of the survey over two consecutive years. It shows that, in contrast to the previous year, people?s perceptions were slightly better in 2012/13. These results indicate that people are more confident in making investments, and they perceive that some improvements have been made. These more positive perceptions are attributed to the GNWT?s Industry, Tourism and Investment (ITI) ministry having announced early in 2013 that strategic planning to manage the mineral investments is underway (GNWT Industry, Tourism and Investment, 2013). 11The odds against finding a mineable mineral deposit are very high, and only about one in a thousand exploration projects results in a mine. Maintaining healthy exploration investment is therefore important if we are to discover new mines to replace our mines as they mature and close.Exploration has been strong globally for the past few years. Data collected by Natural Resources Canada shows that most of Canada, including our neighbours in Nunavut and the Yukon are doing very well in attracting exploration investment. As the Chart below shows, exploration investment in the Northwest Territories has not grown at the same rate.Figure 4: Exploration and Deposit Appraisal Expenditures$0$100$200$300$400$500$60019 9 9 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012$C MillionsNWTNunavutYukonSource: Natural Resources Canada, March 2012. See: http://mmsd.mms.nrcan.gc.ca/stat-stat/expl-expl/1-eng.aspx \t ? 175 Table 71 - Uncertainties and Mineral Potential in NWT (2011/12 - 2012/13) Responses options Mineral potential, assuming current regulation/land use restrictions Uncertainty concerning the administration, interpretation, and enforcement of existing regulations Northwest Territories (NWT) 2011 / 12 2012 / 13 2011 / 12 2012 / 13 1 ? Encourages Investment 26% 43% 17% 29% 2 ? Not a Deterrent to Investment 35% 31% 33% 34% 3 ? Mild Deterrent 26% 18% 23% 21% 4 ? Strong Deterrent 13% 7% 18% 15% 5 ? Would not pursue investment due to this factor 0% 2% 8% 2% Source: Adapted from Fraser Institute, 2012; Fraser Institute, 2013 The Fraser survey conveys the perceptions of the mining industry in relation to the opportunities and challenges that it faces. In this regard, concerns have been raised suggesting that the NWT is ?the most difficult state to operate in within Canada?. Out of the 94 regions and countries participating in the survey, the NWT ranked in the 48th position. ?The concerns in the Northwestern Territories mainly seem to focus around various bureaucratic and land claim issues, with uncertainty around protected wilderness and archaeological areas?. This sentiment is reflected by the comments in the survey: ?We were granted simple NWT land use permits after 8-10 month delays, then had those permits subjected to court challenge by third parties on the basis of ?duty to consult??you want stability and perceived transparency? (Fraser Institute, 2012, p. 39). Moreover, Rheaume & Caron-Vuotari (2013) note that ?there are too many regulatory boards in the territory and members lack proper orientation and training, which make it difficult to ensure that there is no bias in favour of or against resource development? (p. 26). Although the mining industry perceives this situation as unnecessarily complex and bureaucratic, the government and the community see these mechanisms as a way of ensuring that environmental and social benefits continue to be provided to the locals communities. As such, the ?Mackenzie Valley Resource Management Act enforced in 1998 provides an integrated system of land and water resource management (Mackenzie Valley Resource Management Act, 1998; Gibson & Klinck, 2005). Such mechanisms are also considered to be key elements in the expression of resilience (Gibson & Klinck, 2005), which is defined as ?the ability of groups or communities to cope with external stresses and disturbances as a result of social, political and environmental change? (Adger, 2000. p. 347). Another Fraser Institute survey participant commented that in the Northwest Territories, the regulatory review process is cumbersome and time consuming. Too many small projects (that have no impact on the environment) are being referred to environmental assessment. These referrals generally come from the Aboriginal community where land claims remain unsettled. The federal minister of Indian and Northern Affairs Canada has commissioned a number of reviews with no measureable results, which continues to frustrate industry and in turn stymies new and longer term exploration activities. Until this is solved, the NWT will remain an area known as one, ?not to go to? (Fraser Institute, 2012, p. 39). \t ? 176 Rheaume & Caron-Vuotari (2013) point out that unresolved land claims and Aboriginal grievances are issues that impact the extractive sector. Furthermore, they note that ?mining proposal reviews are sometimes used by Aboriginal groups to pressure governments to take actions of theses grievances? (p. 28). These grievances and long term claims for Aboriginal self-government have also played a role in slowing the process of granting access to explore and operate mines in the North. More than 390 communities ?were at different stages of negotiating self-government agreements? with the federal government (Rheaume & Caron-Vuotari, 2013, p. 29). In the NWT there are three land claims agreements with First Nations and M?tis people (Rheaume & Caron-Vuotari, 2013). Acknowledging the existing challenges inherent in promoting the mineral industry in the NWT, and in order to avoid the socio-economic consequences that the closure of the diamond mines would have in the region, the Government of the Northwest Territories is currently developing a long-term Mineral Development Strategy to attract mining investment to the territory, to encourage further exploration, and to ensure that ?development occurs responsibly and in a carefully planned manner that supports northerner?s long-term goals and interests (Industry, Tourism and Investment, 2013, p.1). Despite these negative comments in relation to the NWT mining / exploration sector, the 2012-2013 Fraser survey reported an improvement with regard to survey participants? perceptions. In comparative terms the ?NWT had the greatest improvement in score and rank amongst Canadian jurisdictions? (NWT & Nunavut Chamber of Mines, 2013 p.1). The NWT Chamber of Mines believes this increasingly positive perception is the result of the announcements of regulatory processes and the launch of an NWT Mineral Development Strategy (NWT & Nunavut Chamber of Mines, 2013). It is noteworthy that, in terms of employment, 7 new mines would need to be in operation in order to maintain the same level (3,500 people) of employment created by the existing 4 NWT operating mines. Table 72- Potential Project Developments Project Company Commodity Expected Production Start Date Estimated Annual Direct Employment Estimated Capital Cost for mine Development ($ millions) Yellowknife Gold Project Tyhee Gold Gold 2015 330 193 NICO Fortune Minerals Gold, Copper, Cobalt, Bismuth 2015 150 200 Nechalacho Avalon Rare Earth Rare Earth Metals 2015 216 541 Prairie Creek Canadian Zinc Silver, Zinc, Lead 2015 220 193 Gahcho Ku? De Beers/Mountain Province Diamonds 2015-16 380 650 Pine Point Tamerlane Zinc, Lead 2014 131 154 Courageous Lake Seabridge Gold 2016-17 350 1,520 Source: GNWT Industry, Tourism and Investment, 2013 \t ? \t ? 177 6.1.3.1.6 Pre-Diamond Mine Era Eldorado mine was opened in 1933 and was privately owned until 1943 when the mine was transferred to the Canadian Government due to the strategic value that radium and uranium had for the government. Uranium mining continued after the Second World War; however, lower grades and high operation costs contributed to the closure of the mine in 1960. Eldorado Mine was dewatered in 1976 to recover silver and copper, and by 1982 all activities had ceased, leaving behind an estimated 1.7 million tonnes of radioactive mine tailings. The Canadian government signed a commitment with the Deline Dene Band to remove the radioactive tailings, and monitoring activity has been in place since 2007. The Consolidated Mining and Smelting Company of Canada (Cominco), generally known as the Con Mine, was a large gold mine located in the NWT. The mine entered production in 1938 and ceased operations in 2003. It has produced over 5,000,000 ounces of gold. Con Mine is currently owned by Newmont Mining Corp and the geothermal potential of the site has been evaluated. Currently, the perceived social and economic contribution of the mine to the region is negative, and the fact that at the time it was in operation, there were no hiring policies for Aboriginals also contributes to the generally negative perceptions. This attitude can be seen in a comment made by an elder Aboriginal resident in the territory. Not once did we get royalty for a mine that is in just our backyard, next to our house that big operation. I don?t know what some of the elders think, but from my point of view, it looks like they stole some money from us and all the money they made went down back south and it never went to us. That is how I feel (Gibson, 2008, p. 58). 6.1.3.1.7 Giant Mine Giant Mine, a gold mine which was operational between 1948 and 2004, is located in Yellowknife in the Northwest Territories of Canada and produced 7.6 million ounces of gold during its years of operation. In 1896, a gold-mineralized area was discovered around Yellowknife, but it was not until 1935 that 21 claims were made for the Bear Exploration Company. In 1948, following the end of World War II, the Giant Mine went into full production. Another mining operation was also producing locally in the same region, and as a result, the town of Yellowknife experienced a boom through jobs created by the mining industry, and it grew rapidly (Aboriginal Affairs and Northern Development Canada, 2010). In 1990, Royal Oak Mines Inc. took over ownership of the Giant Mine. In September 1992, during a workers? strike, an underground set explosion killed nine miners (Aboriginal Affairs and Northern Development Canada, 2010). The strike had been the result of an inability of the company and union workers to reach a proper settlement. In response, the company opted to hire outside workers, prompting a further deterioration of the situation. Security agents and the RCMP were subsequently brought in to protect the security of the mine site. In September 1990, a set bomb exploded, killing the nine miners. After a lengthy trial process, a former mine worker confessed to having set the bomb in the underground workings. In 1995, the same former worker was convicted to life in prison without the possibility of parole for 20 years (Laidlaw, 2010). \t ? 178 Normal operations began again in December 1993. In 1997, government representatives and the City of Yellowknife initiated discussions regarding the management of arsenic trioxide dust with the company. In 1999 however, the Royal Oak Mines Inc. went into receivership and the Giant Mine was transferred to Indian and Northern Affairs Canada (INAC). The mine assets were sold to Miramar Giant Mine Ltd. under the condition that Miramar would not hold responsibility for the state of the mine. As such, INAC would play the role of caretaker with respect to the existing conditions at the site which included arsenic trioxide dust which was stored underground. No further processing occurred at the site after 1999, and in 2005, Miramar Giant Mine Ltd. ?Terminated its obligations under the Reclamation Security Agreement.? The Giant Mine has remained abandoned since that time (Aboriginal Affairs and Northern Development Canada, 2010). Between 1948 and 1974, mining at the Giant Mine consisted of shallow underground workings that reached a depth of 2000 feet. In 1974, open pit operations were initiated. The waste rock produced during operations was used to backfill mined out areas, the construction of tailings dams and road maintenance. The mineralogy of this waste rock was mainly ?quartz-dolomite assemblages with minor pyrite and arsenopyrite? (Clark & Raven, 2004). Because the mineralization of the ore was in the form of arsenopyrite, the process used to obtain the gold from the ore involved roasting at extremely high temperatures. This process released arsenic-rich gas to the environment, mainly via the stack. Over time, arsenic releases were reduced from 2900 kg/day in 1956 to a fluctuating concentration of up to 300 kg/day after 1959. During the 50 years of the mine?s full operation, 237 000 tonnes of arsenic trioxide (As2O3) dust were produced (Aboriginal Affairs and Northern Development Canada, 2010). The arsenic trioxide dust which was produced was storage in chambers located in the underground workings of the mine (Clark & Raven, 2004). This measure was put in place in the 1950?s as a result of an agreement between scientists and the government because these bodies believed that the natural permafrost in the area would help seal the arsenic trioxide in the storage chambers (Aboriginal Affairs and Northern Development Canada, 2010). INAC is in charge of ensuring that the site ?is safely managed to protect the health and safety of local residents, and the environment.? Maintenance activities will continue until the Remediation Plan, presented in 2007, undergoes regulatory review. A multiyear contract was awarded in 2007 to Deton'Cho Nuna Logistics Joint Venture. According to this contract, the company was hired to ensure compliance with regulations and public safety measures as well as maintenance of facilities, water management, effluent treatment and monitoring. The contract also includes a compromise with regard to hiring locals and with respect to Aboriginal employment (Aboriginal Affairs and Northern Development Canada, 2010). The application for the Remediation Project was submitted in October 2007 by INAC and GNWT. However, in the following year, the City of Yellowknife required an Environmental Assessment. This \t ? 179 assessment has been coordinated by the Mackenzie Valley Environmental Impact Review Board, and will take several years to complete. No remediation work can be performed until the EA is approved. The remediation plan comprises of three main categories: 1. Surface clean-up: which includes cleaning up all the contaminated areas, demolishing old buildings and the placement of cover material over tailings ponds. 2. Underground stabilization: a frozen block barrier will be created for the arsenic trioxide dust stored in the underground chambers. This will function as a way to prevent seepage. 3. Maintenance and monitoring: permanent and indefinite monitoring will be put in place to ensure health and safety. A new water treatment plant will be required for long-term maintenance. This plan was prepared by INAC and the GNWT with improvements over time and input from the community, public and stakeholders. Experts have also reviewed the plan (Aboriginal Affairs and Northern Development Canada, 2010). The capital cost for freezing the arsenic trioxide dust in the underground workings has been estimated at $480 million, with an additional ongoing cost of $1.9 million per year. According to current thinking, the budget would come from ?annual appropriations of funds approved by the Treasury Board.? Yellowknife residents have, however, voiced concerns regarding the ability to fund the requirements of this plan (Taylor & Kenyon, 2012). A progress report conducted by the federal government has estimated an increase in the costs of the remediation project, amounting to an approximate total of up to a billion dollars. (Cadwell, 2013) The frozen block method was determined to be the best option for the management of the arsenic trioxide dust. The analysis involved consultations with experts and stakeholders. The method consists on freezing the ground under and around the chambers that store the dust, thus creating a frozen rock barrier. This will prevent seepage and the release of arsenic-contaminated water. A freeze plant will be used, and thermosyphons will also be employed to extract underground heat. This method will be implemented within a 10 year time frame (Giant Mine Remediation Project, 2007). The main concerns about this freezing method are that it has never been done before and perpetual monitoring will be required (Caldwell, 2013). 6.1.3.1.8 Diavik Diamond Mine Inc. (DDMI) Diavik Diamond Mine Inc. (DDMI) is a diamond mine situated in the NWT. The mine is located about 220 km south of the Arctic Circle and around 300 kilometers from Yellowknife. The Diavik Mine area was surveyed in the 1990s, construction was initiated in 2001, and production commenced in 2003. The mine is owned in a joint venture between Diavik Diamond Mines Inc., a subsidiary of Rio Tinto (60% ownership) and Dominion Diamond Corporation (40% ownership) that divested harry Winston Diamond Corporation in 2013. \t ? 180 DDMI was initially designed as an open pit with plans for further development into the underground. Underground operation began in 2010 and the life of the mine is expected to last until 2023. The mine consists of three kimberlite pipes associated with the Lac de Gras kimberlite field, and is located on an island of 20 km2 in Lac de Gras. Access to the mine site is by air year-round and by a 425 km ice road that is constructed every winter and which is operable for 2-3 months of the year. A significant portion of DDMI supplies such as fuel, lubricant, construction material and bulk explosives are transported though the ice road (Yip, 2008). Although the mine and processing operations were designed for 1.5 million tonnes of kimberlite being processed per year, 2.3 million tonnes per year have been achieved since the second half of 2005. The mine commenced production in January 2003, producing approximately 3.8 million carats during that year. Full production began in 2004 with 7.6 million carats produced. Table 73 shows Diavik production by year from start-up to the end of 2012. Table 73 - Diavik Mine Production 2003 - 2012 Year 000s Tonnes Processed 000s Carats Recovered Carats per Tonne 2003 1,175 3,833 3.3 2004 1,950 7,575 3.9 2005 2,222 8,271 3.7 2006 2,331 9,829 4.2 2007 2,400 11,943 5.0 2008 2,414 9,225 3.8 2009 1,359 5,565 4.1 2010 2,091 6,500 3.1 2011 2,234 6,677 3.0 2012 2,058 7,230 3.5 Total 20,234 76,647 3.8 Source: Yip, C, Personal Communications, May 15th, 2013 Table 74 below summarizes the mineral reserves at Diavik Mine at the end of 2012. These are expressed in millions of tonnes, carats per tonne, and millions of carats (Yip, C, personal communications, May 15th, 2013). Table 74 - Mineral Reserves at Diavik - December 31, 2012 PROVEN RESERVES PROVEN RESERVES PROVEN and PROBABLE Mt ct/t M ct Mt ct/t M ct Mt ct/t M ct A-154 South Open Pit ? ? ? ? ? ? ? ? ? Underground 1.2 4.2 5.2 1.4 3.4 4.9 2.7 3.8 10.1 Total A-154 South 1.2 4.2 5.2 1.4 3.4 4.9 2.7 3.8 10.1 A-154 North Open Pit ? ? ? ? ? ? ? ? ? Underground 4.1 2.1 8.4 4.1 2.1 8.4 8.1 2.1 16.8 Total A-154 North 4.1 2.1 8.4 4.1 2.1 8.4 8.1 2.1 16.8 A-418 \t ? 181 PROVEN RESERVES PROVEN RESERVES PROVEN and PROBABLE Mt ct/t M ct Mt ct/t M ct Mt ct/t M ct Open Pit ? ? ? ? ? ? ? ? ? Underground 5.1 3.8 19.3 2.2 2.9 6.4 7.2 3.5 25.6 Total A-418 5.1 3.8 19.3 2.2 2.9 6.4 7.2 3.5 25.6 Stockpile 0.3 2.9 0.9 ? ? ? 0.3 2.9 0.9 TOTAL Open Pit ? ? ? ? ? ? ? ? ? Underground 10.3 3.2 32.9 7.7 2.6 19.6 18 2.9 52.5 Stockpile 0.3 2.9 0.9 ? ? ? 0.3 2.9 0.9 Total Reserves 10.7 3.2 33.8 7.7 2.6 19.6 18.3 2.9 53.5 Note: Totals may not add up due to rounding / ct = Carat = 0.2 g; Mct = Million of carat; Mt = metric tonne Source: Yip, C, Personal Communications, May 15th, 2013 In relation to local jobs, 55% of the 1165 DDMI workforce is made up of people living in the north. These workers come from Yellowknife and several other local communities. Over 25% (291) of the workforce is Aboriginal (DDMI, 2013). As defined in the Socio Economic Monitoring Agreement (SEMA), Diavik aims to hire at least 66% northern people and Aboriginal people are intended to make up at least 40% of the total employment throughout the operations phase of the project. Despite the fact that those percentages are lower than what was expected the government and Aboriginal groups, the total number of northern and Aboriginal workers is in fact higher than was forecast37. The beginning of underground operations presented a challenge for Diavik (as well as Ekati, which also recently began underground operations) due to the shortage of northerners with underground mining skills. As a result of this challenge, workers from other regions were hired, reducing the percentage of northerners and Aboriginals in the Diavik workforce. Efforts at increasing the percentage of local and Aboriginal employment are in place through an Underground Miner Training Progression Plan (DDMI, 2013), and through support and partnership with NWT Mining Training. For instance, the three diamond mines have jointly contributed to the purchase of training equipment as well as a $1.5 million simulator for training underground miners (Mining Training Society, 2013). In fact, since 2004 the Mining Training Society (MTS) has received funding from the ?federal government?s Aboriginal Skills and Employment Partnership ($15 million), Indian and Northern Affairs \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?37 In 1988 workforce estimates of 264 northerners and 160 Aboriginal workers (DDMI, 2013). \t ? 182 Canada ($5.5 million), industry partners ($14.8 million) and the GNWT ($2.4 million)? (Mining Training Society, 2013). Since 2004, MTS has provided ?training or other employment related assistance for over 1,300 people, and has facilitated employment for over 730 people? (DDMI, 2012, p. 15). Training programs include underground mining, mineral processing, heavy equipment operations, and environmental monitoring (DDMI, 2012). In terms of the DDMI community investment strategy the Diavik Socio-Economic Monitoring Agreement (SEMA) formalized in 1999 between Diavik Diamond Mines Inc. and the Government of Northwest Territories ratified by local Aboriginal communities is the backbone that guides DDMI approach. The purpose of SEMA Agreement is to: Table 75 - DDMI Socio-Economic Monitoring Agreement objectives provide an effective ongoing working relationship between the Parties on the matters covered by this Agreement in a spirit of cooperation and with mutual respect for the goals and aspirations of each Party provide a mechanism whereby effective communication, consultation and cooperation can take place between the Parties provide for capacity-building and sustainable economic development, while minimizing negative socio economic impacts from the Project to the extent reasonably practicable verify the predicted socio-economic effects of the Project as summarized in the Comprehensive Study Report, ensure commitments are acted upon by all Parties and realized in the spirit they were presented, and allow alternate mitigative action where warranted meaningfully engage those people most affected by the Project - and their representative governments - in assessment, decision-making and management of socio-economic effects arising from this Project establish a Diavik Project Communities Group Advisory Board to review and monitor socio-economic impacts of the Project and to provide recommendations and advice to communities, governments and DDMI Source: DDMI, 2010 Under the SEMA the Diavik Communities Advisory Board was established, similarly, implementation committees were created under the Participation Agreements signed with the five Aboriginal groups. In essence ?SEMA aims to provide training, employment and business opportunities to northerners and, more specifically, indigenous northerners? (DDMI, 2010, p.10) and those particularly affected by the presence of the mine. The Socio-Economic Monitoring Agreement ?terminates on the termination of operations or such earlier date after cessation of commercial production of rough diamonds from the project as the GNWT and DDMI may agree [?]? (SEMA, 1999, p. 20) In the case of the Diavik Communities Advisory Board it ends ?once the project has ceased commercial production of rough diamonds, GNWT and DDMI, after consultation with the Advisory Board, may agree to a schedule for winding down and concluding the operations of the Advisory Board, either during or after rehabilitation, reclamation and closure? (SEMA, 1999, p. 7). Annually through the many projects and programs i.e. donations, sponsorships, scholarships, and community projects, Diavik invests approximately $5 million in local communities (DDMI, 2013). \t ? 183 In 2012 Diavik provided over $300,000 to support more than 70 initiatives in the field of culture, education, environment, health, recreation, and business development across its communities (DDMI, 2013). In relation to education DDMI supports community education through a specific scholarship program. Scholarships are awarded through the Yellowknives Dene First Nation, Tlicho Government, North Slave M?tis Alliance, Kitikmeot Inuit Association, and Lutsel K'e Dene First Nation (DDMI, 2010). Through 2012, over 1,500 Diavik scholarships had been awarded with a total value of over $2 million (DDMI, 2013). In terms of direct economic benefits and economic diversification, the SEMA states that DDMI, GNWT and Aboriginal groups will strive to ?maximize project-related economic and business opportunities? (SEMA, 1999, p. 10). The document also highlights the commitments made by the parties to establish a secondary diamond industry, with the intent of creating a manufacturing industry in NWT. In the NWT and Nunavut, the federal government sets the rates and collects the royalties. Yukon is the only northern jurisdiction where the territorial government can set and collect royalties (National Aboriginal Health Organization, 2008). Mines pay an annual royalty based on the market value of what the mine has produced. As shown in Table 76, the Northwest Territory and Nunavut Mining Regulations have established an escalating mining royalty structure that is based on the value of the output of the mine. In the case of Diavik, the royalty paid is the cap of 14% (Carr & Jeffery, 2011). Table 76 - Mining Royalty Rates Northwest Territories Annual Profits Royalty Rate $0 to $10,000 0% Over $10,000 to $5 million 5% Over $5 million to $10 million 6% Over $10 million to $15 million 7% Over $15 million to $20 million 8% Over $20 million to $25 million 9% Over $25 million to $30 million 10% Over $30 million to $35 million 11% Over $35 million to $40 million 12% Over $40 million to $45 million 13% Over $45 million 14% Source: Adapted from KPGM, 2011 Mining companies are allowed to deduct operation as well as transportation and refining costs. Additionally, companies can deduct the depreciation costs of the buildings, the plant, and the equipment and machinery used in production. They can also deduct costs incurred during the exploration and development phases of their projects (National Aboriginal Health Organization, 2008). The total tax burden on the mining industry in the NWT is 37.6% where 15.8 % refers to federal tax and 21.8% is territorial tax (Rheaume & Caron-Vuotari, 2013). The Northwest Territories receives financial benefits from the mines through property and fuel taxes (NWT & Nunavut Chamber of Mines, 2013). Additionally, from procurement policies and commitments to supporting and strengthening local businesses, from 1996 to 2011 the three diamond mines spent over \t ? 184 $12.8 billion to build and operate the mines. Seventy-two percent of this figure ($9.25 billion) was spent with northern companies, including $4.2 billion (33%) spent with Aboriginal communities. Diavik alone reported that from January to July 2012 it had spent over $237 million. Of this, $147 million (62%) was spent on northern business and 26% or $61.7 million was spent with northern Aboriginal business (Diavik, 2013). Diavik?s aim is to return the mine site as closely as possible to its initial state (Ellis, 2000). In 2000, the reclamation costs for Diavik Mine were estimated at 94 million dollars (Ellis, 2000). Based on the ongoing closure and reclamation activities at the Diavik site, the Wek??ezh?i Land and Water Board (WLWB) has established that today the total closure and reclamation security required for the Diavik site is $131,360,000. ?This is the expected total cost that would be incurred by the Crown in the event that Diavik Diamond Mines Inc. (DDMI) defaulted and the Crown was required to remediate and close the Diavik site? (Macdonald, 2012a). Despite these estimated figures, the federal government holds $201 million as financial security for the closure and Aboriginal Affairs and Northern Development Canada (AANDC) officials in the territory are recommending adding an additional $30 million for of security (Macdonald, 2012b). This situation is influenced by the result of previous closure problems coupled with the location of Diavik, which is on an island in a valued lake. 6.1.3.1.9 Participation Agreements An Impact and Benefit Agreement (IBA) is described as ?a contractual agreement, usually between an Aboriginal community or entity and a mining company? (Gibson & O?Faircheallaigh, 2010, p. 43). Over the last two decades IBAs and other types of agreements38 have become standard practice and have been adopted by mining companies, recommended by Canadian governments, and demanded by Aboriginal communities39 as a mean of ensuring that local communities receive direct and meaningful benefits from mining activities. These agreements also help address some of the issues that arise when there is a mine operation nearby. In the NWT alone, there are records of 19 signed agreements (www.impactandbenefit.com). Some of the Aboriginal groups have more than one agreement signed with different companies, as is the case of the T??ch? government that has agreements with Colomac Gold Mine, Ekati, Smap Lake and Diavik mines (www.impactandbenefit.com). Some authors (Gibson & Klinck, 2005; Gibson, 2008) see these types of private agreements as modern treaties. To Gibson (2008), these agreements provide modern tools ?for allowing Aboriginal communities to engage in the economy. However they are not able to be reciprocal, as in the relationships of the past, due to structural restrictions, as well as limited conceptions of culture? (p. 41). Furthermore, these types of agreements ?may compromise the governance powers of a community? (Evans et al., 2001 p.106). \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?38 Natural Resources Canada provides a list of names used to describe these types of agreements: Impact and Benefit Agreement (IBA), Participation Agreement (PA), Socio-Economic Agreement (SEA). In the case of Diavik, Participation Agreements (PA) is the most commonly used terminology. 39 In the case of Nunavut, IBAs are mandatory. \t ? 185 Diavik has established Participation Agreements (PAs) with five Aboriginal groups in the territory: T??ch? Government, Yellowknives Dene First Nation, North Slave M?tis Alliance, Kitikmeot Inuit Association, Lutsel K'e Dene First Nation. Although these Participation Agreements are confidential, it is known that in addition to guaranteeing that each signatory Aboriginal party is benefiting directly from the mine operation through job provisions, these agreements also include annual financial payments. The intention behind the financial compensation is to offset some of the disturbances that the presence of the mine in the region generates and to support the preservation of the traditional way of life for the local Aboriginal groups. Additionally, another aim is to strengthen the local economic development of the communities and eventually contribute to sustainable development. The PAs also include provisions for a preference for doing business with locals and DDMI is commited to supporting local economic development through a ?buying local? approach. As a result of this approach several businesses and suppliers have been established to provide direct services to the local mines. In the case of Diavik, the PA required the establishment of a Socio-Economic Monitoring Agreement (SEMA)40, which in this case has the territorial government as signatory party. The SEMA aims to formalize employment and training opportunities, business development, and capacity-building initiatives. DDMI believes this combination of PA and SEMA represents an evolution of impact-benefit agreements as it seeks active long-term participation from the five Aboriginal groups within the region of the mine (DDMI, 2010). Table 77 below provides the rationale and objectives for establishing the SEMA. An advisory board has been established to put a governance mechanism in place which would ensure that the commitments established in the SEMA are respected and producing the expected results. Some of its key goals are: Table 77 ? Mandate of the Advisory Board (a) provide comment, recommendations and advice to the communities, Aboriginal Authorities, GNWT, and DDMI. (b) to have access to information relating to employment, training, environment, safety, education, business opportunities, transportation and other related matters that may affect the communities. (c) to monitor, review, and make recommendations on: - employment, training; - the business opportunity strategy implemented by DDMI; - the Employee and Family Assistance Program implemented by DDMI for the benefit of all its employees; - the fulfillment of commitments by the Parties under this Agreement; and - other socio-economic issues which are addressed in this Agreement. (d) to provide opportunities for public participation and involvement. (e) to monitor the mitigation measures and commitments in each area through: - reviewing monitoring reports under the Agreement; - doing inspections on site from time to time; - interviewing employees; - considering impacts on communities; - reviewing reports submitted by DDMI to regulatory authorities. (f) to make recommendations to communities, Aboriginal Authorities, DDMI, and the GNWT respecting adaptive mitigation measures for achieving the purposes and commitments of this Agreement. Source: DDMI, 2010 \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?40 Publically available document. \t ? 186 Although mining companies hope to establish new relationships which are untainted by the past when they enter a region, and they expect that IBAs and other types of agreements will help facilitate this process, ?they are often judged by the practices of previous prospectors and mines? (Gibson, 2008 p. 53; Prno et al., 2010). In the case of the NWT and with respect to its local Aboriginal communities, new relationships are often markedly positive with regard to the growth and economic benefits created by the mining industry. On the other hand, less positive events and experiences, such as the environmental legacy left by the Giant Mine are still influencing how people perceive and approach the mining industry. Furthermore, historical occurrences such as the Numbered Treaties and Residential Schools also continue to undermine government credibility, impacting how Aboriginals perceive and approach relationships with both the local and federal governments. In consideration of this situation, it is possible to argue that because of these events and the social, cultural, spiritual and economic (Gibson, 2008.) complexity involved, the general lack of trust in the NWTs with regard to industry and governmental entities is a feature that plays a significant role when doing business in the north. With regard to this issue, Rheaume & Caron-Vuotari recommend that companies ?take the time to build healthy relationships with Aboriginal and other Northern communities to earn their trust? (2013 p. 44). From a more pragmatic point of view, ?trust is also seen as a public good which is necessary for the successful running of the economy? (Misztal, 1996 p.12). Additionally, trust is essential for facilitating effective problem solving, as it encourages the exchange of relevant information. Finally, trust is seen as essential for creating stable relationships which are vital for the maintenance of cooperation. On the other hand, when trust ?is damaged, the community as a whole suffers; and when it is destroyed, societies falter and collapse? (Misztal, 1996 p. 12). It has been the intent of the previous sections to establish the context within which the mining industry in the NWT is situated. This has primarily been achieved by drawing information from government, company and Aboriginal organization reports, and from papers and documents that were available. As discussed previously, there are many complex layers and elements which influence people?s perceptions and which influence how the decision-making process takes place. Systems of governance, the introduction of a wage economy, the effects of the residential school system and land claims issues have strongly affected the region?s Aboriginal people and are not in line with their traditional values and ways of life. As such, the residual effects of these imposed structures ?continue to be felt and it is visible in the communities through addictions and challenges to mental health, as well as other expressions of trauma? (GNWT, 2012b). ?Indigenous communities have traditionally been based on very distinct systems of decision-making, social and political institutions, and systems of wealth generation and distribution? (IIED, 2002, p. 200). Keeping this in mind, it can be argued that the current social dynamics which are present in NWT are the result of the cumulative social impact that has developed over time. Franks, et al. (2012) note that cumulative social impact \t ? 187 results from the aggregation and interactions of impacts on a receiving environment. They may be experienced by society, the economy or the environment, and may result from one or more past, present or potential future activities. Cumulative impacts can be both positive and negative, and can vary in intensity as well as spatial and temporal extent? (p. 203). ?In the generic sense, the term ?cumulative impacts? encompasses social, economic, political and environmental analyses. Social groups, however, may be impacted by changes to each of these systems such that analysis of cumulative social impact must consider sociocultural, socioeconomic, socioenvironmental issues and so on (p. 204). The following figure presents a summary of some of the key forces and uncertainties that influence the dynamics of the mining industry in the territory. They could be seen as elements which contribute to the cumulative social impact that is present in the NWT. In turn, this situation clearly impacts exploration as well as the mining companies that seek to establish businesses in the territory. Figure 70 - Mining in the NWT and Cumulative Social Impact NWT Mining Industry & Cumulative Social Impact Natural Environment Government ??Devolution ??Treaties ??Regulatory System Aboriginal ??Treaties / Land Issues ??Residential Schools ??Culture / Traditional Values ??Traditional Knowledge ??Self-Determination ??Spirituality Pre-Diamond Mines ??Eldorado Mine ??Con Mine ??Giant Mine Trust ??Mistrust in the regulatory apparatus ??Mistrust regarding the initiatives proposed by the mining sector Participation Agreements ??Long-Term Benefits ??Equitable Participation Socio-Economic Issues ??Aboriginal Employment ??Health Care ??Education ??Poverty ??Family Integrity \t ? 188 6.1.3.2. Case Study Methodology Despite the researcher?s efforts at maintaining the same methodological approach which was adopted in the other two case studies (Mongolia and Argentina), the local context and responses from the individuals and groups approached to participate in the Northwest Territory portion of the study demanded a different approach through which to analyze the results of the study. As such, although as in the other case studies, the SEMC Framework is still adopted as a guide through which to gather data and to support the analysis and discussions, the analysis of the results will rely more heavily on the interviews and on the contextualization and background information provided in the first sections of this case study. The experience from the Mongolian and Argentinian case studies has revealed that the qualitative approach of the study has yielded more in-depth and valuable information than did the surveys. This was also the conclusion reached by Costa (2008) when she conducted qualitative / quantitative field research in mining communities in Brazil. Similar results were found by Roberts (2006) when conducting studies about mine closure of Highland Valley Copper in British Columbia, Canada. The rationale for changing the approach results from the low participation rates of government representatives, Aboriginals and the general community, particularly in relation to their willingness to respond to the surveys. Interviews were conducted with members of these groups and informants were chosen using purposive and directed sampling. This allowed the investigator to select key people who were knowledgeable and had relevant information to share when replying to the study?s questions. Unlike in the other case studies, the approach to the analysis of the survey will be based on the points and issues that, to some degree, are deemed more relevant by the researcher. A total of 27 people were interviewed. From this group, 5 participated in one group session and 22 participated in individual in-depth interviews. Additionally, 39 individuals completed the survey. Of these, 30 were DDMI employees; 22 worked at the mine site in several different positions and 8 people worked in the main office in the city of Yellowknife. In addition to that 5 representatives from the government agreed to respond the survey. These individuals are different from those who took part in the group session. Table 78 summarizes the number of respondents and their affiliations. Table 78 - NWT Study Participants Group Survey Interview Group Session Government 5 - 1 (5 participants) Mining Company Administration 8 9 - Mining Company Site 22 6 - Community 4 7 - Total 39 22 1 The 5 distinct Aboriginal groups that Diavik has Participation Agreements signed with were contacted to take part in the study. Representatives of 3 of these groups agreed to participate in the study, 1 was not available to participate and 1 group requested financial payments to compensate for their involvement and time. Recruiting representatives from this last group was discarded since, financial compensation \t ? 189 was not considered when the methodology for the project was designed or when the proposal was submitted to the Behavioral Research Ethics Board (BREB)41. The participation of the Aboriginal groups was limited to interviews only. None of the members of the Aboriginal groups were keen to respond, or to facilitate the researcher?s access to having other Aboriginal members respond to the survey. The researcher respected these attitudes and decisions. On several different occasions, it was reported there are an overwhelming number of research studies being conducted in the NWT, and that many of these studies target Aboriginal groups. This situation seems to have negatively impacted their willingness to participate in any kind of study. A tactic adopted by many organizations to attract Aboriginal participation has been through the provision of financial compensation, which seems to be welcomed (expected, and in the case of this research, demanded), particularly in the cases of small and not very well structured communities. The Aurora Research Institute and the Canadian Arctic Research Licensing Initiative have reported that from 2000 to 2009, 3,053 research licenses were issued (Benson, 2011). The federal government, through its agencies (e.g. Geological Survey, Department of Fisheries, and Environment Canada) is responsible for 25% of these licenses. Similarly, universities account for 26%. The NWT government accounts for 12%, and industry-related research represents 28% of the total licenses approved (Benson, 2011). The majority of the licenses were provided to conduct investigations related to extractive projects where the MacKenzie Gas Project has 247 research licenses, and all four diamond mines42 combined account for 210 licenses (Benson, 2011). One chief from an Aboriginal First Nation was interviewed, and a few Aboriginal members occupying leadership positions either in the other First Nations communities or First Nations business enterprises, participated in the interviews. An important fact that may have contributed to discourage participation of a specific Aboriginal group relates to the process of how an interview with an Aboriginal community director unfolded. According to the research design and study participants? recruitment process approved by BREB, the initial approach to recruit potential study participants was made by the DDMI community management team. According to the research design Diavik would contact potential study participants providing a preliminary introduction of the research and study objectives and inquire if the person would be interested in meeting with the researcher to learn more about the study where a final decision whether or not to participate in the study would be made by the potential study participant. In the particular case of this Aboriginal community a non-Aboriginal person who has long ties and experience working with this particular group was assigned to liaise on behalf of the community to learn more about the study. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?41 Certificate of Approval ? Minimum Risk - # H12-00505 42 Ekati 82 projects, Diavik 52 projects, Snap Lake 40 projects and Gah Cho Kue 36 project licenses \t ? 190 All the written background information about the study was provided in advance and the introductory letter signed by the research supervisor was made available. In addition to that a follow up telephone meeting took place and other supplementary material was provided. After a few days a date and time were scheduled for the meeting with the First Nation Community Director. The meeting takes place in the Aboriginal government offices where the researcher, his supervisor, the Aboriginal community director and the Diavik community relations attended the meeting. The friendly and warm manner that all Aboriginal government representatives greeted the visitors and especially the Diavik community relations person suggested that a transparent environment existed and since the discussions would be about mine closure and the potential implications that the closure would bring to NWT and Aboriginal population the researcher put his mind at easy in regards to having the company representative entering the meeting room. That been said, right after the researcher and his supervisor were introduced to the Aboriginal community director both the researcher and the Diavik representative asked to the interviewee if he would prefer that the company representative leave the room. This was promptly deemed unnecessary by the interviewee that went on saying, ?everything that it will be discussed here you (DDMI representative) already know?. After the meeting, that last about one hour the researcher received an email from the Aboriginal government liaison, a consultant, transmitting that other members of the Aboriginal group felt that Diavik participation in that meeting was inappropriate. They felt that this could affect the Aboriginal participant right to freely express his opinions and thoughts. It is believed that this situation has contributed to impact the willingness of this particular Aboriginal group in continuing participating in the study, position that was respected by the researcher. At later date the researcher placed a call to the Aboriginal community director to apologize for any discomfort that situation may be created to him. The data gathered during the interview with this Aboriginal member was not used in this study. From the Diavik side, participation was very strong, and interviews with both administrative staff and site employees were conducted. The CEO, VP Finance, VP Operations, and VP HR were interviewed. At the site level, the Logistic Manager, Training, Health and Safety Manager, and Community & External Relations Manager also participated in the study. In addition, at the site level, random employees (including Aboriginal people) in non-management positions also responded to the surveys. APPENDIX K presents a detailed list of all the participants in the interviews. The majority of the interviews conducted with non-Aboriginal participants were members of local organizations such as the Mining Training Society and the NWT & Nunavut Chamber of Mines. The participation of the NWT government was poor both in terms of number of participants and their willingness to dialogue and to disclose information. Representatives of the Industry, Tourism and Investment, Health and Social Services and Education, Culture and Employment attended the group session that lasted around 20 minutes. The average time for \t ? 191 interviews was 45-60 minutes. Group sessions conducted for the other case studies for the same research ranged from 60 to 80 minutes on average. At the end of the group session with the GNWT representatives, participants were asked to complete the survey in which they were instructed to provide their perceptions about different aspects of mine closure in the NWT. Participants clearly displayed discomfort in providing their personal opinions. In an attempt to provide enough time for the participants to review the contents of the survey and make up their minds, it was suggested that they could review the survey and submit it at a later date, which was agreed to by all. Even though they had previously agreed to submit the surveys at a later date, after being contacted several times by email to remind them to make the submissions, none of them replied, responded or submitted their surveys. Both the researcher and his supervisor who attended the GNWT group session came away with the impression that the meeting with the government representatives was contrived, and noted that any attempt to request or explore the individual opinions of the participants ended up in the researcher being directed to the government website where official (though not personal) information was readily available. It was also noted that 4 out of 5 government representatives who attended the group session were fairly young and, based on their behavior and the nature of their responses, both the researcher and his supervisor left the meeting wondering whether these GNWT representatives were novices in their positions or even well-informed enough to participate in the discussions about mine closure. Another possible explanation regarding this situation can be drawn based on the historical situations regarding mining in the NWT. As reported previously, a precedent exists where a GNWT employee was punished with one-week suspension for publically criticizing the territorial government. This emblematic situation may have created a work environment of fear and anxiety among government employees and thus affected how they receive research studies which request their non-official opinions and perceptions. Another interesting event that supports the conclusion that government representatives were afraid to share their perceptions relates to the five surveys completed by random government representatives. Four out of five people who filled out the SEMC survey picked the option ?neutral or no opinion? to almost the entire survey, which again provides credence to the speculation regarding their concern for expressing their perceptions and personal opinions. Despite the low number of responses from the government and community groups, statistical analysis (ANOVA and t-tests) as well as descriptive analysis were undertaken in an attempt to reveal information, which were also triangulated with the findings from the interviews and literature review. In this statistical analysis, the surveys collected from Diavik are also be analyzed. In contrast to the Mongolian and Argentinean case studies where a single mine exists, the fact that the 3 mines play a significant role in the NWT made it difficult for non-DDMI people to respond specifically about Diavik. The other 2 diamond mines (Ekati and Snap Lake) have also signed similar Participation Agreements with Aboriginal communities and in some cases, Aboriginal communities have signed more than one agreement with different companies. \t ? 192 When non-Diavik study participants were asked what would happen when Diavik closes its mine, it was obtained two recurrent types of responses: 1) the closure of the mine is very far away; 2) other mines are about to be opened and since the territory? s vocation is mineral extraction closing one mine will not greatly impact NWT. These responses summarize the poor understanding of the government participants, some Aboriginal individuals interviewed and even some contractors supplying services for Diavik have in relation to the closure of Diavik. When discussing about concepts of economic diversification as an alternative to avoid depending only on the extractive industry. The representative from the Industry, Tourism and Investment ministry argued that tourism plays an important role in the GNWT economy, suggesting that tourism could mitigate the loss of revenues and jobs that closing mines in the territory would bring. As indicated on the Table 69 the participation of tourism in the Territory?s GDP is 3.25% which is not as significant as the 26% participation of the mining and oil and gas industries. In the following section a more detailed analysis of the surveys and interviews is discussed. Maintaining consistence with the other case studies statistical tests are conducted such as t-test and analysis of variance (ANOVA) were conducted to analyze the data which had been gathered. 6.1.3.3. Analysis of Surveys and Interviews43 This section discusses the results of the surveys and interviews. Differently than the other previous case studies in this study the analysis of the 10 Ps will only be made for some of the SEMC Framework due to poor government and community participation. Five selected elements (Policy, Presence, Participation, Planning, and Performance) of the SEMC will be analyzed. 6.1.3.3.1. Policy The element of Performance in the SEMC Framework refers to the activities related to the Question 1.6 asks whether DDMI informs the community regarding the amount of money it has invested in community projects. It is interesting to note that, in contrast to the responses obtained from the Diavik office employees, workers at the mine site presented lower scores, suggesting that improvements with respect to internal communication could be made. This conclusion is supported by the findings of Question 1.7 (Figure 72) where site employees had lower scores than the office employees to the question: ?mining employees are aware of the social policies and actions of concern to the community that have been put in place by the company. \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?43 MC = Mining Company ? Site; MCC = Mining Company ? City; G = Government; C = Community \t ? 193 Figure 71 - Boxplot of the Answers Scores for Question 1.6 for Community (C), Government (G), Mining Company Site (MC) and Mining Company City (MCC) - ?The mining company always informs to the community regarding the amount of money it has invested in community projects.? Figure 72 - Boxplot of the Answers Scores for Question 1.7 for Mining Company Site (MC) and Mining Company City (MCC) - ?All mining company employees are aware of the social policies and actions of concern to the community that have been put in place by the company.? Despite the fact that DDMI has been providing information about its operations and commitments to the local communities, as seen through the example of the Socio-Economic Monitoring Agreement (SEMA) reports that are published and updated twice a year, it can be suggested, based on site employee responses, that ensuring these reports and other type of communications regarding community matters are more efficiently shared with the site employees would be beneficial to the company. Table 79 - Comparison Between the Responses to Question 1.6 Element 1: Policy ? Sub-Element: Governance Question 1.6 The mining company always informs to the community regarding the amount of money it has invested in community projects. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 5.00 3.08 5.20 1.60 4.73 1.81 9.00 1.22 Using a multiple comparison test, one sees that the average responses given by the mining company administration group is significantly different from the responses provided by the site employees, with a p-value for 0.002<0.05. This reinforces the point made earlier that DDMI internal communication process could be enhanced. As mentioned previously, since the government responses to a great majority of the survey questions were ?neutral / no opinion,? statistical analysis or comparisons will be only discussed in the few cases where this group picked different responses. \t ? 194 6.1.3.3.2. Presence Diavik employs community liaisons in some of the communities with which they have signed participation agreements. For example, the Behchoko and Detah communities each have a liaison person assigned to them. These individuals are of Aboriginal origin, and assist in facilitating the flow of information between the company and the Aboriginal community. They also play and important role in gathering information to be used in the SEMA reports, and in ensuring that the goals outlined on the Socio Economic Monitoring Agreement have been fulfilled. Despite the presence of these individuals in the community, divergent perceptions regarding whether or not DDMI has enough people to manage community-related matters was found between the groups (Figure 73). Figure 73 - Boxplot of the Answers Scores for Question 2.1 for Community (C), Government (G), Mining Company Site (MC) and Mining Company City (MCC) - \"The mining company has enough people (company representatives) to adequately manage all community related matters.\" Table 80 ? Comparison Between All Four Groups to the Question 2.1 Element 2: Presence ? Sub-Element: Presence in the field Question 2.1 The mining company has enough people (company representatives) to adequately manage all community related matters. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.00 1.58 5.20 1.33 4.55 1.92 7.00 1.98 Despite the fact that responses ranged from 0 to 8 points in the 0-10 Likert scale, a closer look at the data distribution (Figure 74) shows that half of the mining company site group (11 individuals) indicated \t ? 195 ?neutral / no opinion? which once again suggests that internal communication about community affairs could be enhanced. Figure 74 - Distribution of Responses Given by DDMI Site Employees to Question 2.1 The community group presented the lower scores for this question, thus reinforcing the view presented by the site employees that a stronger company presence in the community is vital and that more people are needed to handle community affairs. This need becomes increasingly more relevant as the time for mine closure approaches since a more efficient and constant flow of information is necessary to address and incorporate the concerns, expectations and demands of the community within the closure initiatives. DDMI community liaison officers working closely with Aboriginal communities and some members of the community affairs division are Aboriginals. With this in mind, Diavik office employees (MCC) who responded to the survey believe that community liaisons have a good understanding of cultural elements in the community (Question 2.4). It is fair to say that despite the fact that the DDMI Superintendent Community and External Relations employee is neither an Aboriginal nor is she originally from the NWT, she has over a decade of experience in working in the region and with Aboriginal communities. This places her in a position which is advantageous to understanding the subtleties and nuances of doing business and interacting with the distinct Aboriginal groups in the territory and with the local government. Observations made during the fieldwork also help support the idea that her knowledge, previous experience and cheerful and respectful personality are all important assets for DDMI and that they create an environment that facilitates engagement and dialogue with all local groups and stakeholders. Despite this, community members responding to the survey and DDMI workers at the site profess less positive perceptions when compared to the employees based in Yellowknife. Applying a t-test to compare 0 - 4 5 (no opinion) 6 - 8 9 - 10 Individuals 2 16 2 2 0 2 4 6 8 10 12 14 16 18 Number of survey participants Distribution of Responses - Mining Company Site \t ? 196 the perceptions of office employees and site employees, it was found that there exists a significant difference between the scores given by these two groups, yielding a p-value of 0.004 < 0.05. Table 81 summarizes the scores and standard deviation for each group. Figure 75 - Boxplot of the Answers Scores for Question 2.4 for C, MC and MCC - \"The mining company community manager understands all the cultural elements of the community (i.e. religion, culture, etc).\" Table 81 - Comparison Between Responses for Question 2.4. Element 2: Presence ? Sub-Element: Presence in the field Question 2.4 The mining company community manager understands all the cultural elements of the community (i.e. religion, culture, etc). Community Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation 6.00 2.55 5.73 1.71 8.71 1.89 6.1.3.3.3. Participation The element of participation in the SEMC Framework refers to the level of engagement of community members, as well as the initiatives implemented by DDMI to promote the participation of local individuals and groups in community matters. It also seeks to assess the level of collaboration between local individuals and groups. Question 3.1 seeks to capture the perceptions of the four distinct groups which took part in the study in relation to their motivations to participate in meetings that address topics related to the improvement of the quality of life of the community. \t ? 197 Figure 76 - Boxplot of the Answers Scores for Question 3.1 for C, G, MC and MCC - \"I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company.\" Table 82 - Comparison Between Responses for Question 3.1. Element 3: Participation ? Sub-Element: Mobilization Question 3.1 I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 2.50 0.87 5.60 0.80 5.36 2.16 6.38 2.74 Although it appears that there is no consensus among the mining company office respondents with respect to the local community?s interest in participating in meetings that address topics that are of interest to the community, office employees (MCC) nevertheless presented an overall more positive perception when compared to the other three groups. It is noteworthy that community respondents evaluated the situation much more critically; indicating that community motivation to discuss topics that affect their living conditions is very low. Applying a t-test to compare the perceptions of community members and office employees, it was found that there exists a significant difference between the scores given by these two groups, yielding a p-value of 0.004 < 0.05. These lower scores are corroborated by discussions which took place in some of the interviews where survey participants suggested that they perceived the community to hold some level of apathy and lack of proactivity in the pursuit of individual goals. In one particular situation, an Aboriginal member suggested that this apathy was created as a result of the Participation Agreement moneys, where a disposable income started flowing in the community and he suggested that people ??just generally get lazy, they don?t hassle?Instead they rely on the income that are coming from the mines.? \t ? 198 It became evident from the field visit that more structured and organized groups are able to accomplish better results than less structured and organized groups. One example of the advantages of a structured and organized group is the situation of the Yellowknives Dene First Nations. In this situation, the First Nation in addition to signing Participation Agreement with DDMI, also set up a very sophisticated business corporations (Det?on Cho Corp.) where several different businesses and joint ventures exist, placing this First Nation group in unique positions when compared with some other local Aboriginal groups. In similar situation is the T??ch? Government that in addition to have already settled its land claim where it was established ownership of subsurface and surface lands and resources and receives royalty payments from the Federal Government on mineral extraction in the Mackenzie area, has also established the T??ch? Investment Corp. that also controls many companies that supply to the local mines. This situation can be used as evidence to support information gleaned from survey responses which found that when people were asked to provide their perceptions in relation to the following statement (Question 3.4): ?I think some groups within the community have more privileges than others?. \t ?Figure 77 - Boxplot of the Answers Scores for Question 3.4 for C, G, MC and MCC - \"I think some groups within the community have more privileges than others\". Table 83 - Comparison Between Responses for Question 3.4 Element 3: Participation ? Sub-Element: Mobilization Question 3.4 ? I think some groups within the community have more privileges than others. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 7.25 2.59 6.40 1.20 6.95 1.69 6.88 3.22 \t ? 199 The Boxplot reveals higher scores among all four groups, indicating that indeed there are groups with more privileges than others in the Territory. It is important to call attention to the situation that when using only the data in Table 83 to analyze this question, the numbers can be deceptive because Table 15 data indicates lower results when compared to those found in the box plot. This is the result of the outliers that, in the average calculation, serve to lower the scores of both mine site and DDMI office employees groups Despite the reasons that place some Aboriginal groups in better socio and economic positions, the generalized perception is that inequalities exists among the distinct aboriginal groups who live in the NWT. In addition, as discussed in the introductory portion of this case analysis, the wealth distribution gap in the NWT is increasing. Despite the fact that as a group, those living in the NWT have the highest salaries in Canada and despite the strong economic growth experienced in the Territory over the last decade, there are still many people within the low income brackets, and many who are forced to access the food bank. The four groups were asked about their perceptions regarding whether ?the mining company displays a very good understanding of the social and economic impacts of the mine closure on the community? (Question 3.11). It is interesting to observe the discrepancies in perception between the responses of the site employees (MC) and the office employees (MCC). Figure 78 - Boxplot of the Answers Scores for Question 3.11 for C, G, MC and MCC - \"The mining company displays a very good understanding of the social and economic impacts of mine closure on the community.\" Table 84 - Comparison Between the Responses for Question 3.11. Element 3: Participation ? Sub-Element: Education Question 3.11 ? The mining company displays a very good understanding of the social and economic impacts of mine closure on the community. Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation 5.55 2.54 9.13 0.78 \t ? 200 While the average response from the mining company office people is 9.13, site employees display a much less positive perception in relation to the question. One possible interpretation for these responses relates to the consequences of mine closure for the workers, as many of these employees will be laid off when the mine stops production. Despite this, it is expected that a transitional phase will take place when mine closure becomes imminent. This expectation was raised a few times during the interviews with Aboriginal representatives. Although none of them were able to clearly articulate what this transition would entail, there was an expectation that DDMI and Rio Tinto will facilitate the expansion of Aboriginal businesses to other locations and other countries where Rio Tinto has operations. This information was received during an interview with one of the Aboriginal corporations that have several companies supplying local mines, including Diavik. Questions 3.21 and 3.22 attempted to capture the perceptions of the participants in relation to the level of cooperation between the local residents in addressing community challenges. Figure 79 and Figure 80 suggest that there is room for improvement. Figure 79 - Boxplot of the Answers Scores for Question 3.21 for C, G, MC and MCC - \"People in the community work together to solve community problems.\" Figure 80 - Boxplot of the Answers Scores for Question 3.22 for C, G, MC and MCC - \"There is a lot of cooperation between neighbourhood groups.\" Although the data from Figure 79 suggests an overall more positive view among the respondents when compared to Figure 80, in both plots (Figure 84 and 85) we see poor average scores in relation to the cooperation between local groups when addressing community challenges. In both cases, mining company office employees (MCC) responding to the survey displayed a more negative perception. Negative perceptions were also manifested during the interviews by company and \t ? 201 community representatives who suggested that higher levels of community participation and engagement would be more beneficial to the implementation of community projects and in maximizing their results. It could be speculated that the existing perception that some groups within the community have more privileges than others (Figure 77) discourages dialogue and collaboration between local community groups. There is a large body of discussion in the academic literature on the importance of companies supporting and promoting community participation and engagement (Veiga et al., 2001; World Bank, 2005; Marfo, 2008; Turner, 2009) The results of this field investigation suggest that Diavik has been proactive and largely successful in engaging with local groups. It is interesting to note that when considering the socio-economic implications of closing Diavik mine, it became evident that Diavik is more concerned about the closure than the community and the government groups. However, the possibility of collaboration and engagement between local community groups could provide an important way to strengthen the local social fabric, and could also be significant in maximizing the benefits that the mining industry could create in the region. In the particular case of the closure of a mine, collaboration between local groups could help developing a clear and long-term collective vision and strategy regarding how that particular area/region would develop after mine closure. It would also very likely result in the establishment of roles and collaboration between these groups with regard to addressing the negative impacts that closing a mine generates. These types of discussions also raise a plethora of questions including: what is the role of local community when a mine closes? How can inter-community collaboration be fostered? Who should be responsible for the tasks involved? Table 85 depicts the responses for all groups to Questions 3.21 ? People in the community work together to solve community problems? and 3.22 ?There is a lot of cooperation between neighborhood groups?. Table 85 - Comparison Between the Responses for Questions 3.21 and 3.22. Element 3: Participation ? Sub-Element: Community Engagement Groups Question 3.21 Question 3.22 Community Average 4.75 3.50 Std. Deviation 1.30 1.80 Government Average 5.40 5.20 Std. Deviation 1.62 1.60 Mining Company - Site Average 5.68 4.73 Std. Deviation 1.87 1.60 Mining Company - City Average 3.63 4.00 Std. Deviation 2.06 2.06 Questions 3.25 and 3.26 attempt to capture the perceptions of survey participants in relation to the level of commitment of the local government (Question 3.25) and local citizens (Question 3.26) in improving the quality of life and contributing to make the community a better place to live. The negative perception is slightly greater in terms of the role performed by the government since community members and DDMI site employees attributed low scores. It is interesting to note that Diavik \t ? 202 office employees presented a wide range of responses (std. dev. 3.24), suggesting divergent opinions with regard to whether the local government representatives are doing their best to improve community?s quality of life. Much as it has been widely reported by the Nunavut Chamber of Mines as well as the findings of the Fraser Institute Survey, company interviews related a generally negative perception of the performance of the local government, mainly because of what is viewed as an excessive bureaucracy with respect to mining activities in the region. During the fieldwork, it was found that there is a perception that the government of the NWT is placing excessive responsibility for addressing community social and economic issues on the mining companies. Similar perceptions were also revealed in both the Argentinean and Mongolian case studies. This context also raises questions regarding the role of the government in relation to addressing the challenges associated with mine closure. As alluded to earlier, when a mine closes, local governments are impacted at multiple levels. First, there is the loss of direct taxes and royalties paid by the mine. Second, higher levels of unemployment lead to greater needs for increased levels of social assistance and government programs to replace the lost jobs. Figure 81 - Boxplot of the Answers Scores for Question 3.25 for C, G, MC and MCC - \"I think local government representatives are doing their best to enhance the quality of life in the community.\" Figure 82 - Boxplot of the Answers Scores for Question 3.26 for C, G, MC and MCC - \"I think local citizens are doing their best to make the community a better place to live.In addition to the boxplots, Table 86, which compares the responses is also presented. \t ? \t ? 203 Table 86 - Comparison between the responses for Questions 3.25 and 3.26. Element 3: Participation ? Sub-Element: Community Engagement Groups Question 3.25 Question 3.26 Community Average 4.75 4.50 Std. Deviation 1.64 1.50 Government Average 5.80 7.20 Std. Deviation 0.75 1.72 Mining Company - Site Average 4.77 6.18 Std. Deviation 1.86 2.06 Mining Company - City Average 4.63 5.13 Std. Deviation 3.24 2.89 With regard to Question 3.30, using a 0-10 points Likert scale, study participants were asked to assess the following statement: ?I see the local government working hard to support the creation of small businesses in the community.? Figure 84 and Table 87 are used to present the responses. A literature review and search on GNWT websites (http://www.iti.gov.nt.ca) shows that there are programs in place to support local economic development in the Territory. Furthermore, according to responses from the community participants in the survey, the community appears to be aware of the existence of such initiatives. A close look at the distribution of the responses provided by DDMI site employees however suggests that they are not aware of such initiatives since 16 out of 22 survey participants indicated ?no opinion / neutral? for that question. Figure 83 - Distribution of Responses Given by DDMI Site Employees to Questions 3.30 It is interesting to note the differences in opinion with regard to the responses given by the office employees. During the interviews, it was found that this group is aware of the existence of GNWT programs which have been put in place to support local economic development. However, they also seemed to be somewhat skeptical about the quality of the programs ? a view which is also reflected in the results of the survey. 0 - 4 5 (no opinion) 6 - 8 9 - 10 Individuals 2 16 2 2 0 2 4 6 8 10 12 14 16 18 Number of survey participants Distribution of Responses - Mining Company Site \t ? 204 Figure 84 - Boxplot of the Answers Scores for Question 3.30 for C, G, MC and MCC- \"I see the local government working hard to support the creation of small business in the community.\" \t ?Table 87 - Comparison Between Responses to Question 3.30 Element 3: Participation ? Sub-Element: Community Engagement Question 3.30 ? I see the local government working hard to support the creation of small businesses in the community. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 7.00 0.71 5.40 0.49 4.68 2.10 5.63 2.50 Despite the fact that the GNWT Industry, Tourism and Investment has programs in place to support entrepreneurs and economic development as a means of promoting economic diversification (GNWT Industry, Tourism and Investment, 2012), both the surveys and interviews reveal that there is room for improvement since respondents reported that these programs are not always easy to access. Furthermore, in a study commissioned by the GNWT to a consulting group known as Common Ground, it was reported that there are: Gaps and overlaps in existing funding programs for small business. Businesses can access funding from a number of sources within the GNWT, from Aboriginal corporations, banks and federal government agencies. The added expense to government, and confusion to business, is unnecessary. [?] the majority of current funding often goes to the same businesses while other businesses do not receive assistance. Market disruption criteria on some funding programs are also a disincentive. Financial assistance and business advisors must work together to streamline access to lending programs and services. Public and private providers, including banks, need to cooperate (GNWT Industry, Tourism and Investment, 2012, p.19). The conclusions made by Common Ground expand upon the findings of the present case study. They also highlight the importance of individuals and organizations working together to find solutions for community challenges which, as this study reported earlier (Figure 79 and Figure 80), are very low. Some interesting aspects that emerged from the survey with respect to this are the differences in perceptions among DDMI site employees and office workers (Question 4.3). While the average score \t ? 205 given by the site employees is 5.73, the responses given by office workers resulted in an average of 8.50 points. Using multiple comparisons, we see a significant difference (p-value 0.021 <0.05) between the responses given by these two groups. For instance, site workers are the ones who feel the greatest impacts of the fly-in fly-out system and are the ones who need to find a balance between being a mineworker and being a family and community member. On the other hand, most of the office employees have an 8:00 am to 5:00 pm, Monday to Friday shift, thus reducing the need for such challenging adjustments. This situation can be used to explain the differences in responses given by these two groups when responding Question 4.3 ?In my opinion, the mining company understands all the social consequences that its presence in the community has on the local people?. Although some of the social changes experienced by the community seem to be inherent to mining activity, conducting studies and surveys regarding mine employees and their families would provide DDMI (and other mining companies operating in the region) with a better understanding of the social implications of mining activities for the local people. This then could ultimately provide the employees and their families with better tools to cope with the changes. Additionally, such studies could contribute to addressing some of the other reported social issues which are present in the Territory, including substance abuse, alcoholism and gambling. 6.1.3.3.4. Planning Figure 85 - Boxplot of the Answers Scores for Question 4.3 for C, G, MC and MCC - \"In my opinion, the mining company understands all the social consequences that its presence in the community has on the local people.\" \t ?\t ?\t ? \t ? 206 Table 88 - Comparison Between the Responses for Question 4.3Element 4: Planning ? Sub-Element: Socio Economic Impact Assessment Question 4.3 ? In my opinion, the mining company understands all the social consequences that its presence in the community has on the local people. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 4.50 3.57 5.00 0 5.73 2.07 8.50 1.12 For Question 4.14, survey participants were asked to provide their opinion with regard to the following statement: ?I believe the local socio-economic situation of the community will be better after the mine is closed.? Both office employees and community members presented low scores - 3.38 and 2.75 respectively. Sixteen out of 22 site employees picked the option ?neutral / no opinion,? suggesting that they seemed uncertain that the socio-economic situation will improve after the closure of the Diavik mine. Despite the fact there are still 10 years of operations left before the mine closes down, the company has already begun to undertake studies whose results would hopefully help identify successful ways to design strategies to mitigate the socio-economic implications associated with the mine?s closure. Additionally, as stated in the SEMA 2012 report, Diavik has completed introductory closure planning workshops with four of the five groups that are signatory of the Participation Agreements. The workshops are intended to ?determine best practices for ensuring the Aboriginal groups are engaged and involved in the closure planning process? (DDMI, 2013, p. 10). Figure 86 - Distribution of Responses Given by DDMI Site Employees to Question 4.14 During the interviews, repeated responses suggesting that 2023 is far away were given by both community members and local government representatives. This type of thinking seems to be preventing people from approaching social and economic matters more strategically. That being said, a further literature review and online search has revealed that the GNWT has been working on thinking ahead and 0 - 4 5 (no opinion) 6 - 8 9 - 10 Individuals 2 16 2 2 0 2 4 6 8 10 12 14 16 18 Number of survey participants Distribution of Responses - Mining Company Site \t ? 207 promoting economic development in the territory. This can be evidenced through the Responsible Resource Development Initiative published in 2012 and the Discussion Paper entitled Northwest Territories Economic Opportunities Strategy published in 2013. Figure 87 - Boxplot of the Answers Scores for Question 4.14 for C, G, MC and MCC ? ?I believe the local socio-economic situation of the community will be better after the mine is closed.? Table 89 - Comparison Between the Responses for Question 4.14 Element 4: Planning ? Sub-Element: Project Design Question 4.14 ? I believe the local socio-economic situation of the community will be better after the mine is closed. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 2.75 1.79 5.00 0.00 5.05 2.16 4.14 3.00 During the interviews with First Nation representatives, youth involvement was presented as particularly important to preserving Aboriginal culture and values since the involvement of young people in the community affairs is also low. However youth participation has been reported as very low. While conducting studies to assess the effectiveness of IBAs in the Territory Prno et al. also found that ?Youth have not been meaningfully involved in decisions regarding regional mineral development? (2010, p. 8). \t ? 208 Figure 88 - Boxplot of the Answers Scores for Question 4.17 for C, G, MC and MCC - \"There are a representative number in terms of the overall community of youth people involved in the design of community projects.\" \t ?Table 90 - Comparison Between the Responses for Question 4.17 Element 4: Planning ? Sub-Element: Project Design Question 4.17 ? There are a representative number in terms of the overall community of youth people involved in the design of community projects. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 3.75 1.48 5.50 0.50 4.73 1.79 3.50 2.50 There is a generally negative perception that the government has not made proper use of the tax & royalty moneys paid by the mining company (Question 4.28). Additionally, responses to Question 4.30 ?The government is transparent with regard its use of royalty money.? show that people perceive that the local government is not transparent in relation to the use of these moneys. This perception was confirmed during the interviews as research participants did not express clarity regarding how and where the royalty moneys paid by the mining companies are invested. This suggests that the government of the NWT could adopt a more proactive approach and be more accountable in relation to the use of these moneys. This situation was also encountered in both of the other two case studies. \t ? 209 Figure 89 - Boxplot of the Answers Scores for Question 4.28 for C, G, MC and MCC - \"I think the local government has made proper use of the tax & royalty moneys paid by the mining company.? Figure 90 - Boxplot of the Answers Scores for Question 4.30 for C, MC and MCC - \"The government is transparent with regard its use of royalty money.\" \t ?\t ?\t ?\t ? \t ? 210 Table 91 - Comparison Between the Responses for Questions 4.28 and 4.30. Element 4: Planning ? Sub-Element: Resources Groups Question 4.28 Question 4.30 Community Average 5.50 4.75 Std. Deviation 1.12 0.83 Government Average 5.25 N/A Std. Deviation 0.43 N/A Mining Company - Site Average 4.45 4.77 Std. Deviation 1.97 2.04 Mining Company - City Average 3.25 4.00 Std. Deviation 2.63 2.45 6.1.3.3.5. Performance The element of Performance in the SEMC Framework refers to the activities related to the implementation and evaluation of projects, particularly those targeted to benefit local communities. Some of the questions in the survey aimed towards gaining an understanding of the level of participation within the community in the implementation of these projects. Question 5.3, for instance asked for participants? input on whether they perceive that there are an appropriate number of young people from the community involved with the implementation of community projects. Similar results were also found for Question 4.17 that asked whether ?There are a representative number in term of the overall community of youth involved in the design of community projects.? There are several reasons to highlight the importance of engaging and encouraging youth to participate in the NWT. One of them relates to the demographics of youth, which is generally much less advantaged in the Territory than in the Canadian average. For instance, 67.3% of the population of the Northwest Territories aged 15 and older had completed at least high school (Bureau of Statistics GNWT, 2009). However, The unemployment rate is high for youth in the NWT; the mental, emotional, and physical health of many youth is poor, the rate of violence among youth is increasing, and the suicide rate in the NWT is five times the national average. Only 41% of students in the NWT are likely to graduate high school, while elsewhere in Canada it is 75% of the students, and youth in the NWT are three times more likely to engage in criminal activity compared to other Canadian youth (Lafferty, 2012). As such, the participation of youth, particularly Aboriginal youth, gains more importance not only in addressing the present challenges facing those living in the NWT but also because the Aboriginal youth of today will be the ones who will pass on the Aboriginal values, history and culture to generations coming in the future. Ensuring that these groups are engaged and participating in projects that will have impact on their future is critical. The score for these questions was generally low and community members attributed the lowest scores among all groups. The general perception for Question 5.3 is that the participation of youth in community projects is low. Particularly, people who responded the survey on behalf of the community, as well as the DDMI office \t ? 211 employees attributed lower scores for this question. These responses are in alignment with the findings from the interviews where different groups interviewed reported that engaging youth participation is a challenge despite the efforts that have been made to engage this group. Figure 91 - Boxplot of the Answers Scores for Question 5.3 for C, G, MC and MCC - \"I think an appropriate number of youth people are involved with the implementation of community projects.\" Table 92 - Comparison Between the Responses for Question 5.3 Element 5: Performance ? Sub-Element: Implementation Question 5.3 ? I think an appropriate number of young people are involved with the implementation of community projects. Community Government Mining Company - Site Mining Company - City Average Std. Deviation Average Std. Deviation Average Std. Deviation Average Std. Deviation 2.75 1.09 4.60 0.49 4.82 1.95 4.63 2.50 One interview discussion with an Aboriginal representative who holds a leadership position within a local Aboriginal community brought up interesting issues with respect to how the money paid by Diavik (and other mining companies) as a result of signed Participation Agreements has been used, and its impact on the Aboriginal population. I believe the process was not set up properly in my own opinion at the start. I am a First Nation member here too. I think that before the IBAs and Participation Agreements were established and the cash started flowing, ah, if your First Nation wasn?t ah? isn?t, I guess established enough to handle this free cash then... ah? it?s like anybody, I mean, if you got disposable income you will spend any way you want, right? ? so, that?s been happening for 15 years now, where First Nations has this extra income and people get? just generally get lazy, they don?t hassle for government money to run their services and programs, they don?t do researching, programing and taking advantage of all the services that are out there. Instead they rely on the income that are coming \t ? 212 from the mines and I think that? before the cash start flowing ? I think that should have been some restrictions placed on? not by the mines, but by the First Nations themselves, should have set up more an accountability framework for the use of these funds. Because once it?s gone ? well, as far as I know the First Nation hasn?t invested any of that money for the future. This discussion again raises a central question regarding the role that local communities play in supporting and advancing local sustainable development. As expressed by the interviewee, it is not up to the mining company to decide how and where the money (directly or indirectly) generated by the presence of the company is invested. This is the responsibility of the community. However, it appears that, for a variety of reasons, many communities have not been able to get organized in order to put a long-term and strategic vision in place so that the future needs of the community are taken into account when making major decisions regarding the allocation and use of the moneys that are given by the mining companies. Similarly, in a different conversation with a Diavik representative, the researcher inquired if, at the time of the negotiations for the Participation Agreement, any discussion had been raised on how the Aboriginal groups could invest this money. The interviewee suggested that at the time the Aboriginals felt that bringing up such issues was not Diavik?s role and that the Aboriginal people themselves would be in charge of figuring out on how to make proper use of the moneys received from the Participation Agreements. Again, with respect to this issue, in an interview with one of the chiefs of the local Aboriginal groups, the researcher asked how the PA moneys had been spent. The chief responded that, as a result of a community consultation process, Aboriginal members decided that since mining activities would affect the traditional ways of living, the extra moneys should be invested towards mitigating some of these negative cultural impacts. As such, within his community, the PA money has been used to support cultural events, to create a hunter/trapper assistance program, and to establish a harvest program where financial support was provided to enable the purchase of equipment such as snowmobiles, boats and tents. The community also decided to invest some of this fund into education and scholarship programs. The chief concluded that after distributing the money towards these specific programs, there was not enough left to pursue any different initiatives such as investing in initiatives that would promote community economic development. In addition, the chief reported that some members of his community had recently suggested splitting the next PA payment among all the members of that Aboriginal group ? this would represent a sum that would amount to roughly $500 per person. Based on these discussions it becomes evident that in this particular case, the Aboriginal group did not have any long term plan or strategy in place with regard to how to invest the PA money to prevent its depletion. Investments were made to protect and preserve traditional aspects of their culture and towards education. In this particular case however, no attempt to direct funds towards revenue generation projects was made. \t ? 213 It is important to highlight that some of the Aboriginal communities in the NWT have more established governments and more sophisticated management structures than others. It can also be noted that the importance and impact of the PA moneys are comparatively lower in larger and more well-structured groups than in smaller and not well-structured groups. Although an evaluation of the contribution to sustainable community development and results of the PA payments made by the mining sector was not an objective of this thesis, preliminary results from fieldwork suggest that these payments do not support community development over the long term. These findings are corroborated by other studies where the limitations of such agreements have been highlighted (Hitch, 2006; Prno et al., 2010). Another interesting finding evidenced during the interviews is that as mine closure approaches, both community members and local governments start to become aware that the flow of money will soon end. As a result, expectations increase and growing pressure is put on companies to provide more services and money. This pressure increased particularly in cases where initiatives to support sustainable local economic were not well established. An important subject that deserves attention involves the concept of gatekeepers. In her blog post ?Anthropologists in the Company of Gatekeepers,? Dr. Sabine Luning, Director of the Graduate School at the Institute of Cultural Anthropology and Development Sociology, in Leiden University in the Netherlands initiates an interesting discussion about her experiences in conducting field research on gold mining in West Africa and Suriname. Her research interests involve power dynamics and the role of what she calls ?gatekeepers.? In this context, gatekeepers are individuals or organizations that have power to control access to spaces and information, and influence how, when and with whom researchers are ?allowed? to engage in the process of collecting data and gathering information. Dr. Luning found that mining companies function as the gatekeepers as they are the ones with the power to grant her access to mine sites and to engage with company personnel. In one particular case, a mining company even suggested what research topic she should investigate (Luning, 2013). Validating and adding to Luning?s discussion, Li (2011) also suggests that the role of gatekeepers, or what she calls ?governors? (p. 386), can also be performed by other groups ?that includes national and transnational NGOs, development banks, and the United Nations? (p. 386). Reflecting back on the fieldwork for this study, it can be said that each company participating in the study functioned as the initial gatekeepers. This was expected since, as established in the methodology, the companies were to be the ones to approach potential local research participants, and were to provide them with preliminary information about the study. However, with the aim of reducing the companies? influence in the process, a referral approach was adopted in which a study participant was asked to indicate/recommend other potential participants. It was believed that employing this method could function to reduce the companies? role as gatekeeper. This strategy did prove to be of value as several research participants were engaged through this method. Additionally, during the planning process and in the negotiations with each of the companies participating in the study, it was made clear to company \t ? 214 representatives that the researcher would be engaging freely with community members and also expanding the pool of research subjects (via the referral approach) as he saw fit. These terms were agreed to by all three companies. As such, the initial gatekeeping role performed by the mining companies was largely overcome by the referral strategy. However, it was also found that there were other gatekeepers in the mining communities since both individuals and organizations played key roles in the process of allowing the researcher access to both people and information. This situation was made specifically evident in the NWT case study where, on a few distinct occasions, people or organizations appeared to be controlling access to information and people (interviewees and survey participants). One of these situations occurred during the group session with the NWT government representatives where, as reported earlier, very little information was shared and the participants were not receptive to responding to, or distributing the survey among other government employees. Despite multiple attempts to engage these and other government representatives, they were also unwilling to provide their perceptions regarding topics related to mine closure. An explicit example of the gatekeeper role performed by the government was made evident during the group session where, at the end of the session, the researcher and his supervisor explained that it would be beneficial for achieving the goals of the study, if more details about their perceptions on mine closure and the role of government were shared. Under these circumstances, one of the government participants replied: ?You are talking to government, we don?t give details?. Furthermore, the challenges of engaging Aboriginal groups, particularly with regard to the participation of Aboriginal community members in the study, was dependent on the Aboriginal management representatives or liaisons assigned by the Aboriginal groups. This prevented the researcher from engaging directly with community members, despite making multiple attempts and presenting a strong interest in including their views. The role of gatekeeper is one that is both colonialistic and paternalistic in nature, and is commonly taken on by institutions and individuals which, in many cases, end up being consultants and outsiders (Li, 2011). More often, however, [this role] it has been imposed from outside, first by paternalistic officials of the colonial period and now by a new set of experts and advocates who assume responsibility for deciding who should and who should not be exposed to the risks and opportunities of market engagement (Li, 2011, p. 399). There are also other considerations which may have influenced the approach taken by the governments and Aboriginal organizations in the NWT. Cultural considerations relating to First Nations community structures need to be taken into account. While there may be individuals within a community who show interest in participating in a research project, an opposing decision by a Chief will often prevent such opportunities. Communication within and between organizations and individuals can also be a challenge. It is often unclear if the parties or individuals being represented are fully informed of the decisions being made on their behalf, thereby supporting Li?s view of the gatekeeper role as being paternalistic. \t ? 215 Additionally, institutionalization often prevents individuals from voicing personal opinions when they are seen to be representing a particular agency; this can be especially true with government or other political organizations. In such instances, individual accountability and access to resources may either be limited or imposed by the organizational structure. 6.1.3.4 Canadian Case Study Conclusions Diamonds are forever?, ?diamond mines aren?t. Marcello Veiga The overall objective of this particular case study is to assess perceptions with regard to the closure of the mine and to gain a better understanding of beliefs with respect to the initiatives undertaken by DDMI in order to circumvent or help reduce the impacts that closing Diavik will have on the community. Based on the results of an extensive literature review, 22 interviews, 1 group discussion and the analysis of 39 surveys completed by the mining company, government and members of the local community, it can be said that at this point, community members do not understand that talking about the closure of the mine is important, as they feel it to be in the relatively distant future. Government representatives participating in the group sessions also left the same impression, however a further literature review revealed that since 2012, the government of the NWT has begun to approach socio-economic matters more strategically. The NWT Minerals Development Discussion Paper, published in January 2013, is an indication of such interest. As in the previous case studies a summary (Table 93) is shown presenting some of key findings of the Argentinean case study. The table is divided into two parts where ?Positive Aspects? and ?Aspects Requiring Improvements? are briefly discussed. Table 93 - Key Findings of the Canadian Case Study Positive Aspects Finding Remarks SEMC Linkages SEMA (Socio-Economic Monitoring Agreement) The SEMA report is published twice a year, bringing transparency and accountability to DDMI operations. The establishment of different community monitoring groups encourage participation. Planning (envisioning, resources); Participation (mobilization, capacity building, empowerment, community engagement) Economic development and diversification The priority of doing business with Aboriginal people and northern residents has helped establish and expand strong and sophisticated Aboriginal corporations (e.g. T??ch? Investment Corporation ?TIC). Policy (corporate commitment); Planning (resources); Participation (mobilization, capacity building, empowerment, community engagement); Performance (implementation) Partnership Supporting the establishment of the Mining Training Society (MTS) and partnering with other mining companies in the region (e.g. Ekati mine) to address the shortage of skilled workers in the region is seen as positive. Planning (resources); Participation (education / capacity building, empowerment, community engagement) \t ? 216 Aspects Requiring Improvements Findings Remarks SEMC Linkages Internal communication It was found there is room to improve the communication process with DDMI site employees. Policy (governance); Participation (empowerment, community engagement); Promotion (communication / sharing) Mine closure Despite the existence of SEMA, greater clarity in relation to the socio-economic implications of closure needs to be put in place. Policy (governance); Participation (empowerment, community engagement, mobilization, partnerships); Promotion (sharing / communication) Government transparency More transparency and accountability is needed regarding how and where tax and royalty moneys are invested. Policy (governance); Planning (resources); Promotion (sharing / communication) Community participation / engagement It would be valuable to create mechanisms to engage the various distinct groups within the community (e.g. youth, elders, women, etc.) Presence; Participation (mobilization, capacity building, empowerment, community engagement, partnerships); Promotion (sharing / communication, consolidation) Social cumulative impact Previous experiences have shaped and influenced the state of the NWT mining industry today. Certainly trust (or lack of thereof) is an issue to be addressed by all groups involved. Policy (governance); Perseverance (overcoming resistance and inertia); Personality (trust, respect and empathy) NWT mining industry The existence of excessive and complex mining regulations are considered to be problematic. Policy (governance), Planning (resources, partnerships) Despite the fact that, like other mines and industrial activities in the NWT, Diavik disturbs the natural environment and has negative impacts on the social fabric of the community, there is evidence to argue that mines contributes to the economic growth and to some extent, improvements to the general living conditions of the local population. However, as with other mining ventures, it is not clear whether these benefits will continue after the mine closes. As well, the situation is further aggravated by the fact that, as in many Aboriginal communities, the Participation Agreement moneys have not been invested in economic activities that could exist independently of the mining industry. All these findings reinforce the importance of building capacity within local communities to manage the flow of money created by the extractive industry. Local Aboriginal enterprises such as Investment Corporation, Det?on Cho and the M?tis Alliance, which also function as significant sources of employment for Aboriginal people will be significantly impacted and they will need to develop strategies to cope with the consequences of closing mines in the region. Diavik?s presence and social investment in the community are perceived to be positive by the community. This is particularly true of the support given to local businesses to supply services to the mine. As mentioned earlier, an expectation was voiced that DDMI and Rio Tinto will facilitate the expansion of these Aboriginal businesses to other locations and other countries where Rio Tinto has operations. This is seen as one of the major ways in which the company can help minimize the impacts that closing Diavik will have on the local businesses and communities. Furthermore, the study shows that people believe that the economic future of the Territory will be based on resource extraction and that after Diavik closes other mines will be open, thus compensating for job \t ? 217 losses. Such beliefs influence the ways in which people assess the importance and impact of closing DDMI. Both the Aboriginal and non-Aboriginal communities and local government representatives believe that the extractive industry in the Territory will remain prosperous for many years to come and that even though Diavik and Ekati are scheduled to close within the next ten years, the impacts will be minimally felt as there are new projects planned to go into production. Even though these new projects may come to pass despite the political and regulatory challenges that exist in the Territory, it is very likely that over the short term, social and economic impacts will be experienced by the NWT government, Aboriginal governments and local citizens. This is because all potential new mines will not move into production concurrently, nor will the new mines necessarily hire as many employees as Diavik and Ekati currently do. Despite the criticisms, concerns and evidence regarding the negative impacts of mining activities on Aboriginal individuals and communities (Ginger & Klinck, 2005; Ginger, 2008; Shandro, 2011; Chouinard, 2009; North Slave M?tis Alliance, 2001), Aboriginal people are increasingly pursuing opportunities in the extractive sector. They do this not only through the provision of supplies and services to the existing mines, but also through the development of mines in their own territories, as is the case of the T??ch? government, that after concluding its land use plan ?are opening up the doors to resource development? (CBC News, 2013). Historical events such as the numbered treaties and land claims disputes have affected the ways in which Aboriginal communities see and interact with the government. The long legacy of the residential schools has certainly had a traumatic effect with respect to the relationship between Aboriginals and the society at large, and it has clearly had its effect on the ways in which Aboriginals and government interact with each other. These collections of historical events have contributed to a cumulative social impact that has had a strong influence on how individuals interact, approach relationships and the levels of trust they approach each other with. Sadly, the great trauma created by the many and long layers of historical events have resulted in overall lack of trust between Aboriginal people and government institutions and the mining sector. The findings of this study suggest that the excessive mining regulations and requirements that are in place in the Territory today are a consequence of the explosion that had been set in response to the labour dispute and the environmental legacy left at the Giant Mine. The philosophy behind the creation of Participation Agreements was to ensure that Aboriginal communities receive meaningful benefits for having extractive companies make use of their lands. However, after a decade of payments this study found indications that PA moneys are not contributing appreciably to the sustainable development of the local communities, nor are they creating the foundation for sustainable post mining communities. \t ? 218 The study also provides evidence that as the end of the Diavik mine?s life approaches, increasing pressure and expectation will be put on the company to invest more resources and to implement initiatives that would create more future economic opportunities. The researcher has noted that the many different groups and institutions (i.e.. Aboriginal groups, federal government, territorial government) that presently exist in the Territory seem to have their own individual agendas and do not appear to engage with the aim to collaborate meaningfully with each other. This situation makes it very challenging for Diavik to successfully develop and implement strategies that would benefit the overall community and foster long-term community development. Another important finding of this study is that government performance needs to be re-examined, particularly in terms of its transparency with regard to the use of the royalty and tax moneys paid by the mining sector. It became repeatedly evident in the study that further careful consideration needs to be given to the social and economic challenges exist in the NWT. Although initiatives and government programs have been established to address some of the issues involved, the impact of the way the mining industry is presently structured (i.e. roster patterns and inability to manage the disposable income created by the economic growth as a result of the mining activity in the region) on individuals and families could be better addressed. That being said, this task should not necessarily be seen as the responsibility of either the government or a mining company, rather it should be seen and approached through a method that would involve a high level of multi-stakeholder collaboration. The Socio-Economic Monitoring Agreement (SEMA) is a very comprehensive document that emphasizes the importance of DDMI, GNWT and the Aboriginal communities working together. The agreement enforces a unique transparency approach to the entire process, as biannual reports are issued by DDMI. It is evident that training and employment dimensions established in the SEMA have been successfully set up. In terms of business opportunities, this study reveals that the mine?s commitments of maximizing ?project-related economic and business opportunities? (SEMA, 1998, p. 10) has been achieved. This can be seen by the development of larger numbers of local companies and joint ventures which supply DDMI and other mining projects in the Territory. However, the fact that these business opportunities are primarily mining-related may create some challenges when both Diavik and Ekati cease operations. Despite the fact that both the Diavik Communities Advisory Board and the Socio-Economic Monitoring Agreement are schedule to end once the project ceases operations, the socio-economic implications of closing the mine will not end when operations cease. In fact, it can be argued that monitoring and taking measures to mitigate the impact of the closure of the mine become more important when mining operation ends. \t ? 219 It can be assumed that the government of the NWT will be the entity responsible for carrying out the mandate outlined on the SEMA, as ?the GNWT has committed to lead the development and co-ordination of the socio-economic monitoring agreement? (SEMA, 1999, p.1). However, great clarity and planning with respect to managing the socio-economic implications of closing Diavik mine are needed. In this regard, DDMI is in a relatively comfortable position, as Ekati mine is scheduled to close in 2019, which would allow Diavik (scheduled to close in 2023) to learn from the Ekati closure process. Furthermore, since the closure dates for both mines are just four years apart, potential opportunities for joint collaboration may exist. Joint collaborations could reduce the costs for the mines and the local government and maximize the benefits for all, especially for those residing in the affected local communities. Encouraging and supporting GNWT and Aboriginal communities in implementing initiatives to diversify and expand non-mining related business may help to avoid and mitigate the impacts that the closure of the mines would impose on the region. \t ? \t ? 220 CHAPTER 7 7.1 General Discussion At the outset of this study, three key questions were raised and used as a compass through which to guide the efforts and the methodology of this research. Although both qualitative and quantitative approaches were undertaken to analyze the data gathered, it can be said that the qualitative methods yielded more in-depth information than did the quantitative portion of the study. The driver questions of this study were: 1. What can be done to create a systematic and integrated approach for the mining companies to facilitate the implementation of social and economic mine closure initiatives? 2. What are the initiatives implemented by mining companies to promote the local economic development of the communities where their operations take place, and to what degree do these initiatives assist in addressing the socio-economic impacts of the closure of a mine? 3. What are the perceptions of the community regarding the role of mining companies in implementing socio-economic mine closure initiatives? These questions led to the establishment of four objectives that were addressed throughout this thesis. These objectives are: Objective 1 ? To summarize and evaluate key mining industry related policies, obligations, guidelines and frameworks worldwide regarding socio-economic aspects of mine closure. Objective 2 ? To develop and evaluate a comprehensive framework to for planning, developing and implementing initiatives, to be adopted by mining companies to create a practical approach to mitigate the socio-economic impacts of mine closure. Objective 3 ? To summarize and evaluate through the case studies analysis the initiatives taken by mining companies that seek to advance the community development (CD) of the locations where they operate as a means to assist in the socio economic impacts of site specific mine closure. Objective 4 ? To study the perceptions of the mining communities, government and mining companies towards the socio-economic mine closure initiatives proposed and implemented by the mining companies. To address Objective 1, a series of desktop activities were conducted in order to identify and analyze six key and widespread industry-related guidelines and frameworks that touch upon the socio-economic aspects of mining activities. This was done with the aim of gaining an understanding of how these documents address topics associated with mine closure. A literature review and in particular, reviewing industry guidelines/frameworks was found to be important in identifying key resources which would later be used while developing the SEMC Framework. To tackle Objective 2, a framework that specifically addresses the socio-economic dimensions of mine closure was developed. This SEMC Framework can be considered to be one of the contributions of this \t ? 221 research especially as a result of its comprehensive and holistic approach, and also because it uses a new approach which has never been tried before. As such, it was logical that an exercise performing a crosswalk analysis comparing the SEMC Framework to these six distinct industry guidelines/ frameworks be undertaken. In this regard, it was found that the industry guidelines/frameworks in many cases are explicit in highlighting the importance of management tools such as Governance, Community Engagement and Planning. However, the crosswalk analysis also helped identify that leadership elements or traits such as Patience, Perseverance, Passion and Personality are not considered or explicitly discussed in most closure plans, thus reinforcing the importance and value of the SEMC Framework. Table 6 provides a summary of this analysis and Appendices B, C, D, E, F and G show the individual crosswalk analysis between the SEMC Framework and the specific industry guidelines/frameworks. A further step in assessing the proposed SEMC Framework took place through the administration of an online survey where 99 individuals provided feedback on the Framework. This exercise has further helped validate the importance of this study and the pertinence of the SEMC Framework. Although not officially established as a research method, the author?s participation in three conferences (SME 2011, Social Responsibility in Mining, 2011 and Sustainable Development in the Minerals Industry, 2013) provided important fora through which to discuss this study and to receive feedback. Another unplanned, but useful assessment of the Framework and the study occurred when an extensive report on the Mongolian case study was prepared to Boroo Gold Company. A presentation on the Framework and findings of the study was delivered to the company?s high management team, including the CEO, CFO, HR Director, Community and Government Affairs Director. The feedback on the report was positive and the researcher was informed at a later date that many of the discussions and recommendations proposed in the report would be considered and implemented by BGC when it reviewed its closure plan. An example of this was the establishment of a mine closure multi-stakeholder working group in the communities of Mandal and Bayangol. An interesting finding during the process of assessing and gathering feedback on the SEMC Framework relates to how poorly the elements of Personality and Passion were ranked in the online survey. This contradicts fieldwork findings where the personality of the individuals directly engaging with the communities were found (by communities and government representatives) to be crucial to the success of community engagement and consequently to addressing the socio-economic dimensions related to mine closure. After having the SEMC Framework assessed and subjected to the scrutiny and feedback of industry practitioners and academics through the online survey, the actual fieldwork took place primarily with the aim of addressing Objectives 3 and 4, but also with the aim of soliciting further feedback on and testing the SEMC Framework while conducting the interviews, group sessions and distributing the surveys. \t ? 222 With respect to the results of the case studies, a contextualization and lengthy discussion about each individual case and its findings was conducted. As expected, each case study has its particularities which occurred as a result of a combination of factors, including current and past events. In addition, aspects such as: location of the mine, political context, regulatory apparatus, proximity of the mine in relation to the community, number of mines in the region etc. were found to play a role in defining the local context. An extra layer of complexity is added when Aboriginal issues play a role in the process, as in the case of Diavik mine. Specifically, in relation to the individual case studies and addressing Objectives 3 and 4 it was found that: Mongolia ? In Mongolia, there is an expectation from the community that more can be done in relation to supporting the development of small businesses, and that some of the initiatives already in place such as the microcredit program, need to be reviewed to ensure that their results are maximized. ? In relation to the closure of the mine, as of the time the fieldwork took place, very little information had been shared with the local communities and rumors and misperceptions were beginning to circulate. Clearly, these rumours could provide a great disservice to the company when they begin to engage with the community and other stakeholders at the time that closure efforts begin. ? At the time of wrapping up this dissertation, through personal communications with a Boroo Company representative, it was learned there were indications that the Mongolian government would approve the Gatsuurt project. If this happens, it would reduce the pressure on the company and give it more time to plan and put in place a closure strategy that would carefully and responsibly address the socio-economic implications of closing the mine. ? There is a need to instill more transparency and accountability in relation to how and where the Soum Development Fund (SDF) is invested and community is eager to see more transparency in the process. In order to do this a revision on the process of engagement with the local government will be made, which seems to be necessary as identified during the study. Argentina ? In the Argentinean case study, the socio-economic challenges that Santa Cruz province faced in the 1990s turned into an opportunity for Cerro Vanguardia which was successful in revamping the local economy. This fact alone gave CVSA and the mining sector a positive reputation in the region and made Santa Cruz one of the provinces most attractive to mining activities in the country. ? The fact that in Puerto San Julian the municipal government has been re-elected for two consecutive terms and that it is now running its third mandate allowed for the development a unique type of relationship between the government and the company, where a long term plan \t ? 223 could be established and maintained. The establishment of the CSR Fund and the Development Agency are the results of this situation. ? Another unique feature within the context of Puerto San Julian is the comprehensive approach undertaken by the Development Agency (driven by the municipal government and Cerro Vanguardia) to define its activities. The strategic plan called Puerto San Julian Piensa San Julian 2020 required comprehensive community consultation and many workshops took place. As a result, a number of areas and issues were identified and many activities which aim to address the points found as a result of the plan were put in place. Supporting the development of small businesses, and creating a business incubator are examples of these initiatives. ? An interesting aspect of the CSR Fund in Argentina relates to the criteria used to adjust its amount over time. The agreement establishes that a minimum of 3 million pesos (CAD $570,000) will be donated to the community every year. However, this amount is indexed and it is adjusted based on the company?s financial results from the previous year. This means that if the annual gain is above what they received in the previous year, there will be an increment on the amount donated to the CSR Fund. ? Considering the perceptions of the local people who participated in the study, it was found that community participation has been low and that people believe the Plan 2020 needs to be updated since many years have passed since the establishment of the Plan. ? Additionally, governance issues were identified regarding the Development Agency board as there exists a perceived imbalance in relation to the composition of the board. This situation could favor the interests of the local government and / or the company, thus reducing the credibility of the work performed by the Development Agency. Canada ? In the Canadian case study which took place in NWT where Diavik has its diamond operations, it was found that significant contributions were provided by the mine in terms of supporting the development of local businesses, particularly through Diavik?s commitment of buying locally. Local people acknowledge and see positively the important role that Diavik (and the other diamond mines) have played with regard to the economic growth in the region. ? It is important to underscore that the Socio-Economic Monitoring Agreement (SEMA) signed with the GNWT and the five impacted Aboriginal groups, in addition to providing direction, establishes clear commitments and targets and brings transparency to the process since biannual reports are published and working groups are in place to monitor what has been established in the SEMA. ? Historical events of colonization, including treaties and Residential Schools as well as experiences related to previous mining activities are all factors that contribute to the establishment of a very complex social and regulatory context. Exploration and mining companies \t ? 224 have seen this situation as having had a negative influence on the development of the industry in the territory. ? The complexity of Aboriginal issues contribute to rendering the dynamic in the territory much more delicate and time consuming since cultural differences, different agendas and unresolved legal and historical issues between Aboriginals and the federal government contribute a great variety of unique challenges to the establishment and continuity of mining activity in the NWT. When considering the SEMC Framework in this context, the elements of Presence, Patience and Perseverance gain special significance. \t ? \t ? 225 CHAPTER 8 8.1 Conclusion ?Planning for closure ensures that long-term environmental and socio-economic effects of a mining project will be minimized? (Lima, 2002, p. 164). Considering the objectives of this study were achieved in terms of developing and subsequently assessing a Socio-Economic Mine Closure Framework, it can be concluded that the developed Framework could be adopted by mining companies to support their closure initiatives, specifically in terms of addressing the socio-economic implications that closing a mine has for local communities. In terms of testing and seeking to improve the SEMC Framework, the results of the fieldwork have been beneficial. For example, the sub-element of Partnership was not part of the initial version of the Framework which was presented in the Comprehensive Examination in November 2011. As discussed in the case study analyses, this element was added later as a result of findings in the Argentinean and Canadian cases studies. Despite the fact the SEMC Framework was initially conceived to be adopted by the mining sector, during the fieldwork it was realized that the Framework could also be used as a guide for the use of local governments and local communities. One stakeholder alone cannot implement the planning and actions that the SEMC Framework entails. Its effectiveness and success largely depend on the participation of other parties as well, namely those of the local community and government. However, because of its relatively higher levels of technical and financial resources, mining companies play a critical role in initiating and supporting the process. The successful closure of a mining operation that necessarily involves addressing the socio-economic impacts of closure on local communities requires a change of mind-set from what has been observed in the three case studies. Furthermore, such a progressive mind-set should be initiated during the earliest phases of the mine?s life cycle. Fostering community engagement as well as building the community?s and local government?s capacity towards meaningful participation and carrying on after the mine ceases operation are critical to ensuring the success of socio-economic mine closure. In terms of capacity building at the community and government levels it is reasonable to say that the adoption of the SEMC Framework can be seen as a mechanism to foster capacity building in these groups since the elements and sub-elements constituents of the Framework are simultaneously comprehensive and detailed enough which can assist communities and governments to understand and approach the socio-economic implications of mine closure in a more effective manner. In addition to that understanding the SEMC Framework and its constituents elements can also help governments (in all levels) to design and implement new policies and procedures with the objective of avoiding and minimizing the socio-economic implications that closing a mine imposes on communities and governments. Throughout the three case studies, issues related to Promotion were brought up as being important. Companies need to find more effective ways through which to share information and receive feedback. In \t ? 226 the case of Boroo Gold and Cerro Vanguardia, communication with the community could stand improvement. With regard to Diavik, it seems that a good communication process with the communities is already in place, and that this is facilitated by the presence of community liaisons. However, communication with the company?s employees could be improved. Despite the fact that in the Mongolian and Canadian cases there are community liaisons; in all three case studies, the local communities perceive that there is a need for more participation from the local people to be involved in the community affairs, and that this need will increase towards the end of the life cycle of the mine. In this regard, if companies want to ensure that positive dialogue and effective communication with the affected communities continue as well as improve, provisions and investments need to be adequately put in place. In the three case studies it was found that study participants from all three groups (community, government and mining company) perceived that there is some sort of general apathy from the community with regard to participating in community affairs, and this includes matters related to the socio-economic future of the community. At the same time, the communities? expectations with regard to the role of their governments and the mining companies were found to be high. In Mongolia and Argentina, where in both places community members made the criticism that mining companies should create more opportunities for the community to participate in the decision-making process, it was however noted that a passive mentality existed in-as-much as community members tended to make the criticism that they did not take initiative towards changing the situation, but also did not express clear ideas regarding how participation towards change could take place. This situation raises questions with regard to the role of the community during the mine closure planning phase as well as regarding the ways in which companies, governments and communities ensure that meaningful participation takes place. This situation has previously been raised in the MMSD report which pointed out that: ?Ensuring that mechanisms are in place to enable local communities to play effective roles in decision-making is one of the greatest challenges in mining?s ability to contribute to sustainable development at the local level? (IIED, 2002, p. 199). The element of ?Personality,? which is present in the SEMC Framework, was perceived as one of very low importance according to the online survey distributed to the experts. However, during the fieldwork, and particularly in the case of Argentina, it was found that ?Personality? plays a key role in fostering dialogue between stakeholders and is very important for establishing trust among individuals. There is a generalized lack of trust of the communities related to the mining sector which is a direct result of negative past experiences, the bad behavior of companies and their inability to deliver many of the promises they had previously made, particularly to mining communities. This was made clear particularly through the Canadian case study where the treaties negotiations and the Giant Mine case often were alluded to during the fieldwork. This situation was also found in the Mongolian case study were community members saw with some level of suspicion (mainly because of the lack of transparency) the close relationship existing between the company and the government. This overall situation is further \t ? 227 aggravated when the economic benefits and immediate enhancements in quality of life that take place when a mine is in operation do not last after the mine closes down. The challenges associated with mine closure are now moving from only the technical dimension to increasingly more about people. Managing expectations, establishing trustful and long-term collaborative relationships are key to success. This new approach will certainly contribute to reducing the trust crisis that exists in the industry and more importantly, could make meaningful contributions towards sustainable development in the communities where mining companies are temporary residents. The study provides support confirming that when people begin to realize that the mine?s life cycle will imminently come to a close and the flow of money, as well as the direct and indirect benefits provided by the presence of the mine will cease, both the current government, and the local citizens will begin to make increased demands for projects that will last and create jobs after the mine is closed. In all three case studies, people perceived that the local governments are not making proper use of tax and royalty moneys. This situation calls to attention that local governments need to build capacity and be more accountable and transparent in relation to the ways in which these moneys are invested. In this regard, Canadian mining companies are in the process of finalizing a draft agreement that has been called the ?Publish What You Pay? initiative. Through this initiative, companies will need to disclose figures paid to any level of government. It is believed that this initiative, in addition to bringing more transparency to the Canadian mining industry, will help eliminate opportunities for corruption and enable local communities to see what is happening in relation to the moneys paid by the industry to governments with a greater level of transparency (Hasselback, 2013; Dawson, 2013). Furthermore, in relation to the government?s role, there is a widespread belief (not only as a result of this case study) that governments are placing higher responsibilities on companies for addressing socio-economic issues. Finally, in relation to the government, it is interesting and to some extent ironic to note that in both Argentina and Mongolia at specific points in their histories, due to their political contexts, these countries? citizens were deprived of freely manifesting their opinions.44 However, no evidence regarding the impacts of these historical situations was found while conducting the case studies in these countries. On the other hand, Canada, a place where democracy and acknowledgement of individual and Aboriginal rights is proclaimed to be a core value in the society, government representatives participating in the survey behaved as if they were refrained of the right to speak freely. Ensuring that local governments think and act beyond their 4-5 year time span would prove more beneficial to communities as well as to mining companies that would not be caught in the situation of having to (re)negotiate several times with local governments throughout the life span of a mine. One of the important contributions of this study, particularly in relation to the SEMC Framework, is its holistic and integrative approach. The foundations of this approach were initially developed by conducting \t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?\t ?44 Dictatorship in Argentina lasted from 1966 to 1973. Mongolia was part of the socialist block until 1991. During the socialist regime in Mongolia, freedom of expression was not encouraged. \t ? 228 a careful examination of the existing literature on the topic. This examination revealed some significant gaps. The aim of the Framework was then to expand to fill those gaps and to develop a practical tool to support mine closure initiatives with regard to the socio-economic implications of mine closure. There exists an assumption that the mining sector can indeed contribute to the betterment of quality of life of people. However, this can be realized only if mining companies, governments and communities come to the realization (and take the necessary actions) that they all play important roles in the process. Finally, it must be assured that benefits are adequately shared and investments towards promoting community development are properly made. Considering the feedback provided by mining experts as well as the results of the three case studies the assessed SEMC Framework make sense and could be adopted by mining companies to assist in addressing the socio-economic implications of the mine closure. The following section outlines a general step-by-step implementation process. 8.2 SEMC Framework Step-by-Step Implementation Considering the results of this study and that the SEMC Framework could be adopted to support mining companies? closure plans a step-by-step process is presented below on how a mining company could adopt the SEMC Framework. Table 94 - SEMC Framework Step-by-Step Implementation Action SEMC Framework Linkages 1) Acquiring knowledge regarding the company, project & community Planning (asset mapping, socio-economic impact assessment), Presence (presence in the field, stakeholder analysis) 2) Acquiring knowledge regarding the community Planning (asset mapping, socio-economic impact assessment), Presence (presence in the field, stakeholder analysis 3) Acquiring knowledge regarding the local government Planning (asset mapping, socio-economic impact assessment), Presence (presence in the field, stakeholder analysis 4) Applying the 10 Ps Survey (Diagnostic) Planning (asset mapping, socio-economic impact assessment, performance indicators) 5) Obtaining strengths & weaknesses maps Planning 6) Envisioning process Planning (envisioning) 7) Identifying leaders Personality (trust, respect and empathy) 8) Planning community participation Planning (envisioning, project design performance indicators, resources); Participation (mobilization, education / capacity building, empowerment, community engagement, partnership) 9) Establishing indicators of performance Planning (development of indicators) 10) Prioritizing ? deciding where to start Policy (corporate commitment), Planning (resources), Performance (implementation) 11) Implementation Performance (implementation, monitoring and evaluation towards continuous improvement) \t ? \t ? 229 CHAPTER 9 9.1 Claim of Original Contribution This research adopted an original approach regarding mine closure, particularly with respect to the implications that closing a mine has for local communities. It is claimed that approaching the subject of mine closure from a comprehensive and holistic point of view, and in the same body of work, emphasizing the importance of considering technical, management, as well as leadership elements is original and adds value to the theory and research of mine closure. This research further contributes to the existing body of literature by highlighting and deepening the discussions about mine closure and the role that mining companies, as well as local governments and local communities, play in the process. The interdisciplinary approach of this study, which bring together disciplines as wide reaching as engineering, management theory, leadership, sociology, etc. to discuss and approach mine closure can be also claimed as original. 9.2 Original Contribution to Profession, Practice and Policy From a more practical perspective, it can be claimed that this research is original because it sheds light on how three distinct mining companies in three different countries are approaching matters related to the socio-economic aspects of mine closure. Along the same lines, this study also reveals the ways in which the perceptions of local communities are impacted by the presence of a mine in their region. The development and the importance of the SEMC Framework is the main contribution of this study since it can be adopted by mining companies, mining communities and governments to assist in addressing the socio-economic challenges that closing a mine brings. The SEMC Framework can be used to advance planning and policy not only within the mining sector, but also within many levels of government worldwide. The adoption of the Framework can also be seen as a capacity building mechanism as it would share information and equip companies, governments and local communities with tools to better manager the implications of mine closure. Furthermore, the fact that the research was conducted in three distinct countries from different continents provided the opportunity for identifying common as well as specific characteristics about the mining industry. Finally, the comprehensive and holistic approach of the SEMC Framework, which includes the combination of technical management and leadership theory is also an original contribution of the present work. \t ? 230 CHAPTER 10 10.1 Limitations of the Study Some limitations to the present study have been noted. In general, they relate to the number of people that took part in the case studies. For instance, a larger and more varied sample of people responding to the surveys would have helped enrich the data. Despite this, the methodological design of the study, in which key people who were representative of the many groups existing within the community were identified and asked to participate in the study, helped to overcome such limitation. Another limitation, previously mentioned in the Diavik case study, refers to the participation of a specific Aboriginal group. In this case, it is believed that the willingness to continue participating in the study was affected by how an interview unfolded. It is possible that the fact that the researcher was an outsider to the three different communities taking part in the study may have influenced the ways in which people engaged and participated in the study. Another data limitation regarding the research approach taken relates to the biases of key informants. ?While biases can misinform research they are also useful to support different views and perspectives that form from different vantage points, access to information and experiences? (Fidler, 2008). In Argentina for instance, the responses given by the Union group tended to be very negative in relation to the questions that assessed the performance of the company. This situation may have been influenced by Union members? potential interest in ?sending a message? to the company and other stakeholders. Similarly, in the case of GNWT, the majority of the participants who responded to the survey chose to maintain neutrality in the great majority of the questions they answered. This can also be seen as a limitation of the study. This attitude itself however can also be seen to shed light on, or be indicative of the general historical and socio/political context that exists in the Territory. Additionally regarding the Territory, the fact that three diamond mines play significant roles in the region rendered it difficult for respondents to speak specifically only about DDMI. Another limitation of the study relates to the time available to conduct the fieldwork. Although enough time was generally allocated to conduct interviews and distribute the surveys, it is assumed that spending more time in each community would have provided the researcher with more opportunities to witness events and make sense of the social context, as in the situation in ethnographic case studies where researchers delve into the community and are typically able to grasp matters at a much more deep level. Furthermore, as with any qualitative and quantitative study, this study carries potential biases from the personal experiences of the researcher. Researcher bias tends to result from selective observation and selective recording of information and also from allowing one?s personal views and perspectives to affect how data are interpreted and how the research is conducted. Reflexivity is a key strategy to understand and avoid researcher bias in which the researcher actively engages in critical self-reflection about his / her potential biases and predispositions (Johnson, 1997, p. 284). \t ? 231 CHAPTER 11 11.1 Recommendations for Future Research A number of interesting findings and insights resulted from this study that, due to time constraints and the specific focus of this study, were not discussed or explored. In this regard, they can be considered potential topics for further investigation. The first relates to the element of Personality in the SEMC Framework. Although the online survey participants attributed low scores to this element, during the case studies it was found that Personality holds a significantly greater level of importance than that which survey participants had attributed to it in the online survey. With this in mind, conducting an investigation into gaining a greater understanding of the ways in which the personalities of community managers and liaisons in mining companies play a role in fostering community engagement and participation would be useful in helping us identify elements relating to the nature and importance of these relationships. Additionally, investigating the ways in which communities which have IBAs and other Participation Agreements signed with mining companies decide to invest the moneys received from these agreements, and how these moneys could contribute to the sustainable development of the communities would also be a valuable contribution to understanding aspects related to the sustainability of current and post mining communities. Finally, because of the particular history, characteristics and values held by Aboriginal peoples, an investigation that approaches the socio-economic dimensions of mine closure and which also takes into consideration Aboriginal expectations and perceptions would be valuable not only to the industry, but to governments as well. The SEMC Framework was initially designed to assist mining companies in planning and implementing initiatives to successfully address the implications of mine closure. However, as the study progressed, it became clear that both governments and communities could also adopt this Framework. With this in mind, approaching the Socio-Economic Mine Closure Framework from the perspectives of both the government and the community would help ensure the effectiveness of the Framework. As well, it would also allow for the development of a Framework that specifically considers the needs and expectations of both of these key groups. Another finding of the present research that would require further investigation concerns the role played by local governments and local communities with respect to mine closure. In this study it was found that there exists an overall assumption that companies are the ones responsible for avoiding and mitigating the socio-economic implications of closing a mine. However, successful closure will only be achieved if government and local communities display strong and active levels of participation. Gaining an understanding of the dynamics of government and community participation, their respective expectations and their roles regarding the closure of a mine would make up other important areas of investigation. \t ? 232 A comparative study involving other mining regions such as those in Central America and Africa where mining activities hold significant levels of importance would also be beneficial to helping us better understand the particularities of socio-economic aspects of mine closure in these areas. To date, the author is involved in an educational initiative with SEF Canada and MITACS. This initiative aims at initiating discussion and educating mining communities to take advantage of the opportunities that arise with the arrival of mining companies in their communities. The project is designed for implementation within a workshop format where, on the first day a mine?s life cycle, a theoretical and practical application of the SEMC Framework is presented. 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York University. \t ? \t ? 253 APPENDIX A Socio-Economic Mine Closure Framework (SEMC) Elements Sub-Elements Description 1. Policy Corporate Commitment Corporate commitment to SEMC can only be enduring if it is embraced, promoted and supported by corporate management, including the Board of Directors, CEO, COO and the CFO. This commitment must be communicated through corporate values, policies, actions and performance measures. Governance In the context of SEMC, corporate governance is used to indicate a situation where all levels of corporate management take into account their responsibilities to a broad range of stakeholders not just shareholders making decisions (Lee, 2009). It is also of benefit to all stakeholders if the corporation encourages / promotes similar behaviour towards communities and governments at all levels. 2. Presence Presence in the field Mining companies need to have one or more representatives physically present in the local communities. These individuals, in addition of being technically knowledgeable about mining, need to be familiar with the realities and subtleties inherent in the field and in the community. It would be preferable to have a local resident or someone who has lived in the area to lead the team on behalf of the company. Stakeholder Analysis Stakeholder analysis involves the identification of groups and individuals who are affected and who can influence a mining project. This involves developing an understanding of who they are, their needs, wants, level of power of influence and support for a given project. This approach is the foundation for a better understanding of all the peoples affected by a mining project and it is critical in providing information when designing and implementing strategies to address the socio-economic impact of mine closure. 3. Participation Mobilization Mobilization is the initial stage in developing meaningful community participation and engagement. Here, information is shared, community leaders are approached, and the overall community is made aware of the importance of their participation in planning and implementing changes that will address the socio-economic impacts of mine closure. Education / Capacity Building Paideia was the word used by the ancient Greeks to define education. To them, paideia was a long-term process of gaining a well-rounded education which went beyond learning a trade or an art. It is through such a holistic approach to education that mine closure should be approached. Clearly, this should not exclude the adoption of programs that would promote the development of technical / professional skills. In fact, a well-rounded education which includes training programs will be the foundation through which to build capacity not only within communities, but also for the company, government and other stakeholders. Empowerment Empowerment is defined by the World Bank as expansion of freedom of choice and action, which in the context of the SEMC guidelines, can be translated as ensuring that community members and other stakeholders are able to freely participate, make suggestions and raise concerns in relation to issues associated to a mining project. Furthermore, empowerment opens up opportunities for \t ? 254 Elements Sub-Elements Description action and participation which, in addition to supporting community engagement, can enhance the community?s sense of ownership. Community Engagement Community engagement involves a process of supporting, building, and maintaining collaborative relationships with stakeholders, in special local community members. In addition, community engagement is also fundamental for creating a sense of ownership and belonging between community members, and is critical for planning and implementing community projects. Partnerships Establishment of strategic, tactic and operational partnerships with key players (e.g. government, communities, NGO, other companies) are critical for maximizing community development and managing the challenges that closing a mine brings to local governments and communities. 4. Planning Asset Mapping Asset Mapping is a participatory process that involves inventorying and assessing the natural and physical characteristics of a community. Additionally, through taking an inventory of the capabilities and interests of individuals, civic groups and other institutions, the social, cultural and economic assets of a community are mapped and evaluated. The information produced from the Asset Mapping process is critical not only for the planning phase but also in the participation step as it also functions towards mobilization, education, and the creation of community engagement tools. Socio-Economic Impact Assessment ? SEIA Socio-economic impact assessment provides a clearer understanding of the social, cultural and economic effects of mining activities on local stakeholders. This, in turn is key in the process of planning, implementing and evaluating initiatives to effectively address these effects. Envisioning Developing a clear and compelling vision of the ideal community is a critical step in the planning process. In developing a vision, a collective process is demanded wherein the company, local government and most importantly, the local community, establish the things they would like to change and / or preserve in the community. Project Design Using information drawn from the asset mapping and socio-economic impact assessment phase, projects will be designed to bring about the changes the community wants to see. This will take place using the vision developed by the community as their backbone. Performance Indicators As a final step in the planning phase, it is important to define performance indicators to measure performance and evaluate results of the implemented actions and projects. Resources Allocation of proper financial and technical resources is a basic step that enables diagnostics, planning, implementation and the evaluation of initiatives to address the socio-economic impacts of the closure. It is here critical to underscore that although mining companies are a key player in identifying and allocating resources, communities and governments also bear some responsibilities. 5. Performance Implementation Implementation refers to the process of carrying out the established strategies and putting the projects designed in the planning phase into practice. Monitoring Monitoring refers to the application of systematic observation, as well as the regular collection of information and the use of measurement-taking procedures. Evaluation Towards Continuous Improvement This stage involves the analysis and interpretation of the data gathered in the monitoring stage. The knowledge originated from the evaluation phase will assist in assessing the contribution and effectiveness of the \t ? 255 Elements Sub-Elements Description strategies and projects that have been implemented. Additionally, this information will also be used to enhance performance, thus allowing for continuous improvement. 6. Promotion Sharing / Communication Refers to a process of effective communication whereby information is shared with all interested parties about the strategies, status and outcomes of the initiatives as they relate to the socio-economic aspects of mine closure. Consolidation Consolidation, in the context of SEMC, refers to the process of ensuring that the successful strategies and procedures adopted to address the socio-economic impacts of mine closure are incorporated into both the community?s and company?s cultures. 7. Perseverance Overcoming Resistance and Inertia Perseverance acts as an antidote against the initial resistance and inertia that people may present regarding changes. Reinforcing Quality of Participation Perseverance is also seen as an opportunity for enhancing community participation and engagement, not only in relation to the number of participants but also with regard to the quality of participation. 8. Patience Allowing Time for Effective Change Social intervention requires time to produce significant results, thus patience becomes an important element. Patience refers to the ability to allow enough time for meaningful changes to happen. 9. Passion Individual Passion / Motivation Several authors see passion as the driving force for successful community development. Both community members and the company?s representatives need to be motivated and passionate about community change and development. Passion is seen as a trait that can be passed onto other people and provides the strength and perseverance needed to bring about the changes necessary for successful community development. 10. Personality Trust, Respect and Empathy Personality is defined as the combination of traits, characteristics and qualities that distinguishes an individual. In the context of SEMC, trust and respect are fundamental personality characteristics that should be exhibited by the company?s representatives and fostered within all stakeholders. These traits create the likelihood for people to engage genuinely and to collaborate with each other, and are therefore critical for the successful planning, implementation and evaluation of initiatives that aim to address the social and economic impacts of mine closure. Additional to trust and respect, another fundamental characteristic that plays a role in the company-community relationship is empathy. Empathy is the ability to understand, and to some extent to share feelings that are being experienced by other people. Empathy is key to showing care and building respect and trust. \t ? 256 APPENDIX B 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. 7 Q?s to Sustainability 10 P?s Principle 7 Q?s to Sustainability Comments Elements Sub-Elements 1. Policy Corporate commitment Q1 Engagement: Are engagement processes in place and working effectively? Q1 assesses engagement processes in place at all levels. Governance Q6 Institutional arrangements and governance: Are the rules, incentives, programs and capacities in place to address project or operational consequences? Q6 relates to the rules, either formal or informal, in the society where the project/operation is developed. 2. Presence Presence in the field Q2 People (employees and residents): Will people?s wellbeing will be maintained or improved? (Responsibility of various parties in this task) Q2 assesses if effective and representative community organization and capacity are in place in the local community. Also assesses full cost, benefits and risks to people and their inclusion in the decision making process. Stakeholder analysis 3. Participation Mobilization Q1 Engagement Q1 also assesses that informed and voluntary consent has been given to those who might be affected by project or operation. Addresses whether dispute resolution mechanisms are in place and are accessible to all communities of interest. Education / Capacity building Implied on Q1 Explicit on Q2 and Q6 Q1 further asks if adequate resources have been made available to all communities so they can participate as needed. This could imply that education and capacity-building mechanisms would be set up as needed. Q6 asks if ?capacity to address project or operation consequences is in place now and will continue to exist throughout the full project/operation life cycle, including post-closure. Empowerment Q1 Engagement Q2 People Q1 See above Q2 also assesses whether effective and representative community organization and capacity are in place in the local community. Community engagement Partnerships No Direct Correlation Found It is expected that while referencing to Q1:Engagement, a realization that partnerships, multi-stakeholder collaboration will be in place. However, no direct correlation was found between the 7Qs and the SEMC Framework. 4. Planning Asset Mapping Implied on Q2 Q2 assesses whether peoples? wellbeing will be maintained. Further questions are asked about social and cultural integrity of communities, worker and population health, nature of infrastructure available, cultural and social stress. Some of the basic questions are asked to help build an asset mapping, however it \t ? 257 10 P?s Principle 7 Q?s to Sustainability Comments Elements Sub-Elements will be up to the company to develop an integrated and holistic mapping. Socio-economic impact assessment (SEIA) Q2 and Q5 Traditional and non-market activities: are traditional and non-market activities in the community and surrounding area accounted for in a way that is acceptable to the local people? Q2 assesses whether peoples? wellbeing will be maintained. Further questions about the social and cultural integrity of communities, worker and population health, nature of infrastructure available, cultural and social stress are asked. Q5 assesses the maintenance of traditional and cultural activities or attributes in the community, as a result of the project?s impact. Envisioning No Direct Correlation Found It is expected that while referencing to Q1: Engagement, Q2: Peoples? wellbeing, a collaborative work envisioning how a community would look in 10-20 years? time or after the mine is closed. However, no direct correlation was found between the 7Qs and the SEMC Framework. Project design Q7 Overall integrated assessment and continuous learning. Q7 assesses that alternatives for the project have been analyzed and considered, confirming the need of the project. Performance indicators Implied The inquisitive approach adopted in the7Qs suggests that several performance indicators will be established in order to allow one to assess whether a positive or negative net result from a project is found. Resources Q4 Economy: Is the economic viability of the project assured; will the community and broader economy be better off as a result? Q6 Institutional arrangement and governance Q4 Addresses the contributions that the project may make not only at local, but regional and national scale; it also assesses if the economic targets of the communities are met and the net contributions of the project to the government and society. Q6 it also assesses the level of resources that have been saved through the life of the mine towards post-closure conditions. 5. Performance Implementation Implied on Q1 Q1 asks if an engagement process is in place and is working effectively. If yes, one could claim that a comprehensive and participatory implementation process would be taking place. Monitoring Q7 Overall integrated assessment and continuous learning Q7 addresses the periodic reassessment of the system as well as the commitment to continuous learning and improvement at all levels (company, community, government and others). Evaluation towards continuous improvement 6. Promotion Sharing / communication Implied Q1 Q1 asks if informed and voluntary consent for those affected by the project has been given. This implies that different levels of communication take place. Consolidation No Direct Correlation Found Consolidation in the SEMC Framework seeks to ensure new policies, strategies and procedures are put in place to address the socio-economic consequences of the closure. This in turn would direct local communities towards \t ? 258 10 P?s Principle 7 Q?s to Sustainability Comments Elements Sub-Elements community development and need to be incorporated into the culture of at least the three key stakeholders (companies, community and government). Considering this, no direct correlation was found between the 7Qs and SEMC. 7. Perseverance Overcoming resistance and inertia No Direct Correlation Found Despite Q1 addressing aspects related to Engagement, no direct correlation between the 7Qs and the SEMC Framework were found for the element Perseverance. Reinforcing quality of participation No Direct Correlation Found 8. Patience Allowing time for effective change Implied Q1 asks if informed and voluntary consent has been given. Voluntary implies that people would take the time they need to make a decision without any type of coercion. For instance, this would imply Patience from the company. 9. Passion Individual passion/motivation No Direct Correlation Found One could claim that addressing the question: ?Adequate resources have been made available to all communities so they can participate as needed?? would be sufficient to ensure that the right person with the necessary skills for the job would be in place. However, no direct correlation was found between the 7Qs and the SEMC Framework for the elements of Passion and Personality. 10. Personality Trust, respect and empathy No Direct Correlation Found \t ? 259 APPENDIX C 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM 10 Principles 10 P?s ICMM 10 Principles Comments Elements Sub-Elements 1. Policy Corporate Commitment Pr1: Implement and maintain ethical business practices and sound systems of corporate governance. Pr2: Integrate sustainable development considerations within the corporate decision-making process. Pr1 is related to the development and implementation of ethical principles and the commitment of the company to enforce their implementation. It also includes compliance and exceeding host-country regulations as well as working with governments and stakeholders to develop regulations that contribute to sustainable development. Pr2 is related to the integration of sustainable development principles into company policies, and the implementation of good practices, training at all levels of the organization and the encouragement of third parties to align to sustainable development practices. Governance 2. Presence Presence in the field Implied Principle 9 and Principle 10 refers to the contributions of ICMM members to social and economic development and that adequate stakeholder consultation is in place. Although none of the 10 principles addresses the SEMC sub-elements ?Presence in the Field? directly, it is implied that in order to successfully comply with Principles 9 and 10, a company needs to be present in the field. Stakeholder analysis Implied Principle 10 refers to ensuring that stakeholders and consultation processes are in place. 3. Participation Mobilization Pr9: Contribute to the social, economic and institutional development of the communities in which we operate. Pr9 relates to engagement practices with communities, proper information and grievance mechanisms being in place, contributions to community development as well as encouraging partnerships with government, communities and organizations to ensure application of programs. Education / Capacity building Empowerment Community engagement Partnerships 4. Planning Asset Mapping No Direct Correlation Found Socio-economic impact assessment (SEIA) Pr4: Implement risk management strategies based on valid data and sound science. Pr4 relates to the proper assessment of impacts associated with the mining activities. Envisioning No Direct Correlation Found - Project design No Direct Correlation Found - Performance indicators Implied Pr4 relates to the continual improvement which suggests that indicators and measurement procedures will be in place. Resources Implied Pr9 highlights the importance of contribution to community development. 5. Performance Implementation Pr4: Implement risk management strategies based on valid data and sound science. Pr5: Seek continual improvement of our health and safety performance. Pr4 relates to the continual improvement of risk management systems. It also considers the development of emergency response procedures. Pr5 relates to the implementation of management systems and their continual improvement in all aspects of mining operations which could potentially affect the health and safety of employees, contractors Monitoring Evaluation towards continuous improvement \t ? 260 10 P?s ICMM 10 Principles Comments Elements Sub-Elements and communities. 6. Promotion Sharing / communication Pr10: Implement effective and transparent engagement, communication and independently verified reporting arrangement with our stakeholders. Pr10 is related to performance reporting, provides relevant information to stakeholders and makes sure consultation processes are in place. Consolidation No Direct Correlation Found - 7. Perseverance Overcoming resistance and inertia No Direct Correlation Found Implement effective and transparent engagement Reinforcing quality of participation No Direct Correlation Found - 8. Patience Allowing time for effective change Implied Pr3 refers to human rights and respect for the cultures, customs and values of the people affected by a project / operation which ultimately would create a context where Patience, as contemplated in the SEMC Framework, would exist. 9. Passion Individual passion/motivation No Direct Correlation Found - 10. Personality Trust, respect and empathy Implied Similarly to the SEMC element Patience, Pr3 refers to human rights and respect for cultures, customs and values of the people affected by a project / operation which ultimately would create an environment where trust, respect and empathy exist. \t ? 261 APPENDIX D 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM ? Community Development (CD) Toolkit 10 P?s Community Development Toolkit Comments Elements Sub-Elements 1. Policy Corporate commitment CDT6 Strategic planning framework CDT6 defines CD objectives, mechanisms, resources and how to know when they are found successful. It is the fundamental guideline for decisions and actions that are part of the CD. Post closure needs to be taken into account when the definition of strategies occurs. Governance 2. Presence Presence in the field CDT13 Competencies assessment CDT13 Assesses the presence of suitable people to run development programs within the communities. Stakeholder analysis CDT1 Stakeholder identification CDT2 Stakeholder analysis CDT8 Institutional Analysis CDT1 Aims to identify ?all the people with an interest in the project, or who may be affected by the project.? CDT2 aims to analyze the level of interest in the project among the identified stakeholders. CDT8 aims to identify institutions in communities and how they engage/influence the process. 3. Participation Mobilization Implied CDT1 ? Stakeholder Identification, CD2 Stakeholder Analysis and CDT 3 Consultation Matrix should lead to a context where stakeholders are identified and engaged, thus clearly implying the mobilization of people to engage and participate in the process which is critical in all phases of the mine life cycle, including the closure phase. Education / Capacity building CDT 13 CDT 13 refers to the assessment of all competencies of all stakeholders. As such, education and capacity-building initiatives are implemented based on the assessment. Empowerment CDT5 Grievance mechanism CDT5 aims to register stakeholder concern to resolve problems before they get bigger. Community engagement CDT3 Consultation matrix CDT14 Community development agreements CDT3 aims to ensure that stakeholders are consulted regularly on the topics that affect them. CDT14 provides a guideline through which to approach voluntary agreements so that they will be effectively handled. Partnerships CDT4 Partnership assessment CDT4 analyzes potential partners and their suitability with the company. ?Government, businesses, community organizations and NGO?s bring different skills and resources, but shared interest and objectives can achieve more than working individually? (CD Toolkit, 2012, p.18). 4. Planning Asset Mapping CDT7 Community mapping CDT11 Social baseline study CDT17 Local Economic investment CDT7 allows the community to have a visual representation of what they perceive as their space. CDT11 Provides information about the community. It is a tool that helps companies understand their \t ? 262 10 P?s Community Development Toolkit Comments Elements Sub-Elements surroundings. CDT17 has the purpose of benefiting both within the short term and long term by developing capacities and alternative products/markets that could remain sustainable after the mine closes. Socio-economic impact assessment (SEIA) CDT12 Social impact and opportunity assessment CDT12 states that when closure approaches, a specific analysis of impacts of the closure phase should be conducted. Envisioning CDT9 Development opportunity ranking CDT17 CDT9 involves the identification of development priorities for the community and opportunities on how to achieve them. CDT17 See above Project design CDT18 Resettlement planning CDT18 is used in the early stages when resettlement needs are identified. Performance indicators CDT19 Indicator development CDT19 aims to identify effective performance indicators. According to CDT19, indicators should be S.M.A.R.T = simple, measurable, accessible, relevant and timely. Resources CDT6 CDT6 defines CD objectives, mechanisms, resources and how to know when they are successful. This is the fundamental guideline for decisions and actions that are part of the CD. 5. Performance Implementation CDT15 Management systems CDT16 Community actions plans CDT19 CDT20 CDT15 provides help in managing activities related to implementation of successful CD programs. The systems will allow for audits and reviews. CDT16 refers to community action plans which are the basic assessment tools for community development programs because they allows the community to record their achievements by monitoring their progress. CDT19 See above CDT20 aims to determine the ?different-or changing over time- levels of stakeholder satisfaction with development activities.? This allows one to track the progress of a goal. This tool can be used in post closure too. Monitoring Evaluation towards continuous improvement CDT15 CDT 20 See above See above 6. Promotion Sharing / communication Implied CDT 3 refers to the development of a system to ensure that every stakeholder is properly heard. Consolidation No Direct Correlation Found Consolidation in the SEMC Framework seeks to ensure that the new policies, strategies and procedures put in place to address the socio-economic consequences of the closure, which in turn would direct local communities towards community development, needs to be incorporated into the culture of at least the three key stakeholders (companies, community and \t ? 263 10 P?s Community Development Toolkit Comments Elements Sub-Elements government). In this regard, one could claim that an effective management system (CDT15) would comply with this SEMC Framework sub-elements. That said, no direct correlation was found between the ICMM CD Toolkit and the SEMC Framework. 7. Perseverance Overcoming resistance and inertia No Direct Correlation Found Although, as in other cases, it can be claimed that CDT 3 ? Consultation Matrix, CDT 4 ? Partnership Assessment and CDT15 Management Systems would ensure that the SEMC element of Perseverance and Patience are addressed, no direct correlation was found. Reinforcing quality of participation No Direct Correlation Found 8. Patience Allowing time for effective change No Direct Correlation Found 9. Passion Individual passion / motivation Implied CDT13 Assesses the presence of suitable people to run the development programs for communities. CDT13 talks about Knowledge, Skills and Attitude (p.145). It discusses formal education versus field experience. However, it does not expand on Attitude. 10. Personality Trust, respect and empathy Implied \t ?\t ?\t ?\t ? \t ? 264 APPENDIX E 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. ICMM Planning for Integrated Closure Toolkit 10 P?s Planning for Integrated Closure Toolkit Comments Elements Sub-Elements 1. Policy Corporate Commitment MCT1 MCT1 applies E3 ? Environmental Excellence in Exploration, which consider three main aspects: social, environmental and health and safety performance. The Social Responsibility in Exploration Toolkit (ESR) aids in the promotion of Governance, Project Due Diligence, Community Engagement, Community Development, Ethical Conduct, Boundaries of Responsibility and Human Rights. Governance 2. Presence Presence in the field MCT1, MCT3 The company?s team interaction with communities is important during all stages of mine cycle, including with respect to integrating company and community needs. Building trust and respect is integral to achieving effectiveness for the closure plan. Stakeholder analysis ICMM Community Dev. Toolkit The ICMM Mine Closure Toolkit refers to the tools existing in the ICMM Community Development Toolkit. The following tools address the sub-elements of stakeholder analysis existing in the SEMC Framework: CDT1 Stakeholder Identification, CDT2 Stakeholder Analysis, CDT8 Institutional Analysis 3. Participation Mobilization Implied in the ICMM Community Dev. Toolkit CDT1 ? Stakeholder Identification, CD2 Stakeholder Analysis and CDT 3 Consultation Matrix should lead to a context where stakeholders are identified and engaged, thus necessarily implying the mobilization of people to engage and participate in the process which is critical during all phases of the mine life cycle, including the closure phase. Education/Capacity building ICMM Community Dev. Toolkit CDT 13 refers to the assessment of all competencies of all stakeholders. As such, education and capacity building initiatives are implemented based on the assessment. Empowerment ICMM Community Dev. Toolkit CDT5 aims to register stakeholder concern to resolve problems before they grow. Community engagement MCT1, MCT3 MCT 1 addresses aspects related to community engagement. MCT3 highlights the importance of company-community interactions to support integrated closure planning. Partnerships ICMM Community Dev. Toolkit CDT4 analyzes potential partners and their suitability with the company. ?Government, businesses, community organizations and NGO?s bring different skills and resources, but shared interest and objectives can achieve more than working individually? (CD Toolkit, 2012, p.18). 4. Planning Asset mapping MCT4, MCT5, MCT10 MCT4 Applies the Risk Management Standard, the Council of Standards of Australia and the Council of Standards of New Zealand, 2004 (AS/NZS 4360:2004), and these are used for risk assessment and management. Therefore is an important tool for planning mine closure. MCT5: Ranking tool to assess and understand facts around the project. It is important because it can reduce risks in the project. MCT10 provides the company with the understanding of ?why the cost of closure and the adequacy of \t ? 265 10 P?s Planning for Integrated Closure Toolkit Comments Elements Sub-Elements provisioning are critical elements of closure planning.? Socio-economic impact assessment (SEIA) ICMM Community Dev. Toolkit CDT12 states that when closure approaches, a specific analysis of impacts of the closure phase should be done. Envisioning MCT8 MCT8 Is a tool that provides considerations suggested in order to achieve social goals. It is a helpful tool for multi stakeholder workshops. Project design MCT6 And ICMM Community Dev. Toolkit MCT6 provides a guideline for the content that the conceptual closure plan should have. In the ICMM Community Development Toolkit CDT9 involves the identification of community development priorities and offers suggestions on how to achieve them. Performance indicators ICMM Community Dev. Toolkit CDT19 aims to identify effective performance indicators. According to CDT19, indicators should be S.M.A.R.T = simple, measurable, accessible, relevant and timely. Resources ICMM Community Dev. Toolkit CDT6 defines CD objectives, mechanisms, resources and how to know when successful. It?s the fundamental guideline for decisions and actions that are part of the CD. 5. Performance Implementation ICMM Community Dev. Toolkit ICMM Community Development Toolkit CDT15 provides help in managing activities related to implementation of successful CD programs. The systems will allow for audits and reviews. Monitoring MCT11 MCT11 helps assess the extent of change from one stage to the next one in the mine?s life cycle. Evaluation towards continuous improvement MCT7 MCT7 is a tool that can be used to set goals for the different aspects that closure should include. 6. Promotion Sharing/communication Implied in the ICMM Community Dev. Toolkit In the ICMM Community Development Toolkit CDT 3 refers to the development of a system to ensure that every stakeholder is properly heard. It can be assumed that sharing information and an adequate communication system will be in place. Consolidation No Direct Correlation Found No direct correlation was found. 7. Perseverance Overcoming resistance and inertia No Direct Correlation Found In relation to the ICMM Community Development Toolkit, although it could be claimed that CDT 3 ? Consultation Matrix, CDT 4 ? Partnership Assessment and CDT15 Management Systems would ensure that the SEMC elements of Perseverance and Patience are addressed, no direct correlation was found. Reinforcing quality of participation 8. Patience Allowing time for effective change 9. Passion Individual passion/motivation Implied in the ICMM Community Dev. Toolkit In the ICMM Community Development Toolkit CDT13 Assesses the presence of suitable people to run the development programs for communities. CDT13 talks about Knowledge, Skills and Attitude (p.145). It discusses formal education versus field experience, but does not expand on Attitude. 10. Personality Trust, respect and empathy \t ?\t ? \t ? 266 MCT1: Stakeholder engagement ? Environmental Excellence in Exploration (E3), the prospectors and developers association of Canada (2007) MCT2: Community development toolkit, ICMM 2006 MCT3: Company/Community interactions to support integrated closure planning MCT4: Risk/Opportunity Assessment and Planning MCT5: Knowledge Platform Mapping MCT6: Typical headings for contextual information in a conceptual closure plan MCT7: Goal Setting TMC8: Brainstorming support Table for social goal setting (Supports T7) MCT9: Brainstorming support table for environmental goal setting (Supports T7) MCT10: Cost risk assessment for closure MCT11: Change management worksheet MCT12: The domain model MCT13: Biodiversity management \t ?\t ? \t ? 267 APPENDIX F 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. TSM ? Performance Standard (PS): Aboriginal Relations and Community Outreach and Mine Closure Framework 10 P?s TSM (PS) Aboriginal Relations and community outreach Comments Elements Sub-Elements 1. Policy Corporate Commitment PF1: Community of interest (COI) identification PF1 assesses the existence of management systems for COI identification. The systems should include policy of the company-related to this matter. Governance 2. Presence Presence in the field Implied Although none of the documents explicitly talk about the importance of Presence in the field, it is implied in COI, including Involvement of Communities, Engagement and Dialogue. Stakeholder analysis PF1 PF1 aims to assess identification of COI that will be affected, or which is perceived to be affected by the mine operation. 3. Participation Mobilization PF2: Effective COI engagement and dialogue PF2 assesses the existence of communication processes with COI, considering the understanding of their point of view, effective information, engagement in dialogue and grievance mechanisms which are in place. Education/Capacity building PF2 Assesses existence of capacity building to allow COI to participate actively in all processes that concern them. Empowerment Community engagement Partnerships Implied No specific tool refers to partnerships. However, the Framework states the commitment to work with governments and communities to support community development. 4. Planning Asset Mapping No Direct Correlation Found No correlation was found between the TSM documents analyzed and the asset mapping sub-elements existing in the SEMC Framework. Socio-economic impact assessment (SEIA) PF2 The Framework states that by engaging with the community, identification of potential impacts to the communities can be understood. Envisioning No Direct Correlation Found No direct correlation to any of the performance indicators explicitly addresses the Envisioning sub-elements of the SEMC Framework Project design MCF TSM establishes that companies will work with communities to develop plans and strategies to mitigate the socio-economic impacts of mine \t ? 268 10 P?s TSM (PS) Aboriginal Relations and community outreach Comments Elements Sub-Elements closure Performance indicators Implied The Mine Closure Framework highlights the importance of monitoring programs, and implies that a set of performance indicators needs to be in place in order to monitor against. Resources MCF Assistance is provided to COI, as appropriate, to allow them to effectively participate in dialogue. 5. Performance Implementation PF3: COI response mechanism PF3 aims to confirm the presence of adequate grievance mechanisms as well as appropriate responses. Monitoring MCF The Mine Closure Framework highlights the importance of monitoring programs. Evaluation towards continuous improvement PF4: Reporting PF4 aims to assess that reporting mechanisms about engagement with COI are in place, and are transparent and open. 6. Promotion Sharing/communication PF2 It is implied that PF2 (effective engagement and dialogue) take into consideration the importance of sharing and communicating to the COI. Consolidation No Direct Correlation Found No correlation to any of the performance indicators explicitly addresses these constituents elements and sub-elements of the SEMC Framework. 7. Perseverance Overcoming resistance and inertia Reinforcing quality of participation 8. Patience Allowing time for effective change 9. Passion Individual passion/motivation 10. Personality Trust, respect and empathy PF stands as Performance Indicator. The TSM Aboriginal Relations and Community Outreach Framework has 4 levels of assessment criteria: PF 1. Community of Interest Identification PF 2. Effective COI Engagement and Dialogue PF 3. COI Response Mechanism PF 4. Reporting MCF stands for Mine Closure Framework. \t ? \t ? \t ? 269 APPENDIX G 10 P?s of Socio-Economic Mine Closure (SEMC) Framework vs. The Equator Principles (And IFC Performance Standard (PS) 1) 10 P?s Equator Principles Comments Elements Sub-Elements 1. Policy Corporate Commitment EP3: Applicable social and environmental standards (IFC performance standard (PS) 1: Assessment and management of environmental and social risks and impacts) EP4: Action plan and management system EP8: Covenants EP3 requires the implementation of IFC performance standards and PS1 requires an ?Environmental and Social Assessment and Management System. The content must include policy regarding the social objectives and principles and it must specify compliance with regulations and communication at all levels of the organization. EP4: When preparing action plans and management systems, corporate commitment and governance are included. EP8: Covenants refer to regulation compliance and periodic reporting to the financial institutions. Governance 2. Presence Presence in the field Implied PS1 highlights the importance of a having a management system in place, which in turn should incorporate elements such as: (i) social and environmental assessment; (ii) management program; (iii) organizational capacity; (iv) training; (v) community engagement; (vi) monitoring; and (vii) reporting. As such, one can assume that the sub-element ?Presence in the Field? a constituent of the SEMC Framework, would be contemplated. Stakeholder analysis EP2: Social and environmental assessment EP3-PS1 According to EP2, the assessment must include a social baseline study; therefore, the identification of stakeholders should be achieved. EP3-PS1 Involves stakeholder analysis and planning. 3. Participation Mobilization EP2 P5 Consultation and disclosure According to P2, the assessment must include public consultation processes. P5 also states the need for having consultation processes in place: free, prior and informed consultation as well as the participation of affected communities. Education / Capacity building Implied PS1 addresses the need to establish and support organizational capacity and training, not only internal to the company, but also in relation to the community, in order to ensure that effective community engagement takes place. It is implied that these initiatives will have positive impact on overall Participation, which in the SEMC Framework, is subdivided into Education / Capacity Building and Empowerment Empowerment Implied Community engagement EP3-PS1 EP3-PS1 must include stakeholder \t ? 270 10 P?s Equator Principles Comments Elements Sub-Elements engagement processes. ?The nature and frequency of community engagement will reflect the project?s risks to and adverse impacts on the affected communities? (PF1) Partnerships No direct correlation found It could be expected that an effective community engagement plan would consider partnership with local community members and other stakeholders. However, no indications of partnership were found either in the EP or in the PF1. 4. Planning Asset Mapping No direct correlation found (NDCF) Although PS1 requires a social and environmental assessment process, it is not clear that an asset mapping is required. Socio-economic impact assessment (SEIA) EP1: Review and categorization EP2 EP3-PS1 EP1 determines three categories according to potential adverse social or environmental impacts identified for the project. The EP2 assessment must provide information regarding baseline, regulations, sustainable management, socioeconomic impacts, etc. P3-PS1 requires, as part of the content of the assessment, the identification of risks and impacts. Envisioning No direct correlation found It could be expected that an effective community engagement plan would consider envisioning and project design. However, no indications were found regarding these sub-elements in either the EP or in the PF1. Project design No direct correlation found Performance indicators EP4 The action plan that is required in EP4 must include the findings of the assessment as well as actions that need to be taken. This plan addresses and manages impacts. Resources PS1 PS1 considers the importance of allocating resources in the discussion of building organizational capacity. 5. Performance Implementation EP3-PS1 EP6: Grievance mechanisms EP3-PS1 must include monitoring and review processes to ensure the effectiveness of management programs. EP6 states that grievance mechanisms must be part of the management system. Monitoring Evaluation towards continuous improvement 6. Promotion Sharing/communication Implied It is implied that community engagement will involve being diligent in sharing and communicating with the local population. Consolidation No direct correlation found One could claim that, in their principles and management systems, the EP and PS1, would cover and address the elements of Perseverance, Patience, Passion, and Personality and their sub-elements. However, no direct correlation between the EP, PS1 and the SEMC Framework was found. 7. Perseverance Overcoming resistance and inertia Reinforcing quality of participation 8. Patience Allowing time for effective change 9. Passion Individual passion/motivation 10. Personality Trust, respect and empathy \t ? 271 Equator Principle 1: Review and Categorization Equator Principle 2: Social and Environmental Assessment Equator Principle 3: Applicable social and environmental standards Equator Principle 4: Action Plan and management system Equator Principle 5: Consultation and Disclosure Equator Principle 7: Independent Review Equator Principle 8: Covenants Equator Principle 9: Independent monitoring and Reporting Equator Principle 10: EPFI reporting (publicly report) \t ? 272 APPENDIX H Field Survey (MC) = Mining Company; (C) = Community; (G) = Government Element: 1. Policy ? Sub-Element: 1.1 Corporate Commitment 1.1 The mining company has clear corporate statement or mission statement describing its values with regard to the community, and posts them on its websites, annual reports and communication material. (MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.2 The mining company is signatory to one or more guideline(s) / framework(s) that clearly state its commitment towards the betterment of the communities where its operations take place.(MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 1. Policy - Sub-Element: 1.2 Governance 1.3 I trust that the local government is looking after the community?s interests. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.4 I believe that the different groups within the community are looking out for the collective interests of the community. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.5 I believe that the various groups within the community are looking after their own best interests, often to the detriment of the well-being of the overall community. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.6 The mining company always informs to the community regarding the amount of money it has invested in community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.7 All mining company employees are aware of the social policies and actions of concern to the community that have been put in place by the company. (MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 273 Element: 2. Presence - Sub-Element: 2.1 Presence in the field 2.1 The mining company has enough people (company representatives) to adequately manage all community related matters. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 2.2 The mining company employs a sufficient amount of company representatives qualified to adequately address all community affairs. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 2.3 The mining company community manager is very familiar with local customs. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 2.4 The mining company community manager understands all the cultural elements of the community. (i.e. religion, culture etc). (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 2. Presence - Sub-Element: 2.2 Stakeholder Mapping 2.5 The mining company is aware of all relevant parties including the key groups and local communities that are affected by the company?s operations. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 2.6 The mining company frequently evaluates the interactions between relevant parties. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 3. Participation - Sub-Element: 3.1 Mobilization 3.1 I perceive that local citizens are motivated to participate in meetings which aim to discuss the improvement of the living conditions of the community and which have been organized by the mining company. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.2 The mining company always proposes initiatives that bring the local citizens together to collaborate with each other in order to solve community problems. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 274 3.3 I believe that the people who attend meetings organized by the mining company are representative of existing community groups. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.4 I think some groups within the community have more privileges than others. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.5 The mining company has established partnerships with local government to improve the leaving conditions of the local population.(MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.6 The mining company targeted minority or vulnerable groups such as elders, women and youth to participate in community meetings. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 3. Participation - Sub-Element: 3.2 Education 3.7 The mining company has made investments that will improve education levels in the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.8 I, or someone that I personally know, has attended a professional training course/program sponsored by the mining company. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.9 The mining company provides training for employees regarding the social impacts of mining. (MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.10 The mining company has an environmental education program that targets the local community. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.11 The mining company displays a very good understanding of the social and economic impacts of mine closure on the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 275 3.12 I have a very good understanding of the social and economic impacts of mine closure on the community.(C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 3. Participation - Sub-Element: 3.3 Empowerment 3.13 I believe that the participation of local citizens is important and can have a positive effect on changing the local reality. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.14 I feel that my ideas and suggestions are taken into account by the mining company. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.15 I feel that my ideas and suggestions are taken into account by the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.16 I feel comfortable in sharing my ideas at community meetings. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.17 I attend the meetings organized by the company because I feel that my participation is important and can make a difference. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.18 I attend the meetings and events organized by the community because I feel that my participation is important and can make a difference. (MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 3. Participation - Sub-Element: 3.4 Community Engagement 3.19 At community meetings, people living far from the mine always have their voices heard and ideas taken into account (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.20 I feel comfortable sharing my ideas with the mining company community relation officers. (C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 276 3.21 People in the community work together to solve community problems. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.22 There is a lot of cooperation between neighborhood groups. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.23 I think the mining community relation officer is doing his/her best to enhance the living conditions in the community. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.24 I think mining company representatives are doing their best to improve living conditions in the community. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.25 I think local government representatives are doing their best to enhance the quality of life in the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.26 I think local citizens are doing their best to make the community a better place to live. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.27 The mining company community relation officer is always invited to attend events organized by the local community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.28 The local government is always present in discussions of issues between the mining company and the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.29 I believe the local government actively participates in minimizing the impacts of mine closure (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 3.30 I see the local government working hard to support the creation of small business in the community (MC, G, C) \t ? 277 Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.1 Asset Mapping 4.1 The mining company understands the community?s most critical social issues. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.2 The company knows the local leaders well. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.2 Socio Economic Impact Assessment 4.3 In my opinion, the mining company understands all the social consequences that its presence in the community has on to the local people. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.4 In my opinion, the mining company understands all the economic implications of its presence in the community.(MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.3 Vision 4.5 I have a clear image of how I would like the community to look after mine closure (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.6 I think my neighbors and friends have a clear idea of how the community should look like in the future. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.4 Project Design 4.7 The mining company has sponsored several projects that aim to promote the local economic development of the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 278 4.8 The mining company designs these projects in conjunction with the local community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.9 The mining company sponsors projects suggested by the local community providing manpower, financial support etc. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.10 I believe the community projects supported by the mining company represent the desires of the local community (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.11 I think the community projects undertaken by the mining company speak to the needs of the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.12 I believe the living conditions of the community is much better than it was 5 years ago. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.13 I believe the socio-economic situation of the community will be better in 5 years? time. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.14 I believe the local socio-economic situation of the community will be better after the mine is closed. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.15 I think the process designed by the mining company to develop community projects is transparent and inclusive. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.16 The mining company asks my opinion and feedback about community projects. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.17 There are a representative number in terms of the overall community of youth people (age between 16 and 20 years old) involved in the design of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 279 4.18 There are a representative number in terms of the overall community of older people (older than 60 years old) involved in the design of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.19 There are many women involved in the design of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.5 Indicators 4.20 There are clear indicators that mining company projects were effective in enhancing quality of life in the community (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.21 The mining company has defined clear indicators to measure the results and progress of the projects they have implemented / sponsored. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 4. Planning - Sub-Element: 4.6 Resources 4.22 The mining company has funded a good number of local economic development projects in the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.23 The mining company has established partnerships with the local government to fund projects promoting the local economic development of the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.24 I believe the money invested by the mining company in the community will make the community a better place after the mine is closed. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.25 The mining company has clear policies concerning the amount of money that is allocated to fund community projects. (MC, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.26 The community is aware of how much money is allocated to fund community projects. (MC, G, C) \t ? 280 Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.27 The community is aware of where the money allocated to fund community projects is spent. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.28 I think the local government has made proper use of the tax & royalty moneys paid by the mining company. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.29 I believe the criteria adopted by the mining company to fund community projects are transparent. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 4.30 The local government is transparent with regard to its use of royalty money. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 5. Performance - Sub-Element: 5.1 Implementation 5.1 I think the right people are involved with the implementation of local community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.2 I think an appropriate number of people are involved with the implementation of local community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.3 I think an appropriate number of young people are involved with the implementation of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.4 I think an appropriate number older people are involved with the implementation of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 281 5.5 I think an appropriate number of women are involved with the implementation of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 5. Performance - Sub-Element: 5.2 Monitoring 5.6 The mining company monitors the development and the results of the projects they sponsor. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.7 Other existing community groups/organizations, representing local citizens, such as NGOs and foundations monitor the implementation of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 5. Performance - Sub-Element: 5.3 Evaluation 5.8 The mining company assesses the progress and results of community projects. (MC) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.9 The mining company and representatives from the local community meet to evaluate and discuss the progress and results of community projects. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.10 The sponsors of the community projects changes the focus of projects based on evaluation results (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 5.11 The local government evaluates the projects (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 6. Promotion - Sub-Element: 6.1 Sharing / Communicating 6.1 The mining company shares the results of community projects with local citizens. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.2 The mining company invites the whole community to learn about community projects. (MC, G, C) \t ? 282 Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.3 The mining company does a good job in sharing important information with the local community. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.4 The mining company does a good job in using different media channels to communicate with the local community. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.5 I think the approach used by the mining company to invite people to community meetings are effective and efficient. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.6 I believe that the mining company always asks for the opinion of the community regarding important matters that affect the community. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.7 I feel that I can approach the mining company to ask questions about local community affairs whenever I need to. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element 6: Promotion - Sub-Element: 6.2 Consolidation / Acceptance 6.8 The community has a strong influence in changing the content and format of existing community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.9 Mining company projects designed for the benefit of the community have been successfully implemented for many years. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 6.10 The company has learned a lot through its work with the community. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 283 6.11 The local government has provided strong support for the company?s projects over the last 5 years. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 7. Perseverance - Sub-Element: 7.1 Overcoming Resistance and Inertia 7.1 The mining company attempts to involve the local people and community groups that are resistant to engaging in community meetings. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 7.2 The mining company invites opposing groups to take part in the dialogue regarding community affairs. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 7.3 I notice that the local community has improved its perception of the mining company. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Sub-Element: 7.2 Reinforce Quality of Participation 7.4 I believe that increasingly more people are getting involved in the community projects sponsored by the mining company. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 7.5 I think that the mining company consistently invites and creates opportunities for community participation. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 7.6 I think the quality of local community participation is improving. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 8. Patience - Sub-Element: 8.1 Allowing Time for Effective Change 8.1 I feel the mining company is patient enough to wait the results of community projects. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 8.2 Mining company representatives understand that social projects take time to produce results. (MC, G, C) \t ? 284 Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 8.3 Community members are patient and do not complain if project results are not seen in the short-term. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 9. Passion - Sub-Element: 9.1 Individual Passion / Motivation 9.1 I feel the mining company community manager is motivated to do his/her work. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.2 I feel the mining company community relation officers are motivated to do its work. (G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.3 Community members are always enthusiastic about the projects implemented by the mining company. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.4 Community members are always enthusiastic about the projects implemented by the local government. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.5 The government is always enthusiastic about the projects implemented by the mining company. (MC, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.6 The company looks for opportunities within the community to help it develop new businesses in the town/region. (MC, G, C) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 9.7 People in the community are entrepreneurs (MC, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 Element: 10. Personality - Sub-Element: 10.1 Trust, Respect and Empathy \t ? 285 1.1 I think the current mining company community relation officer is the right person for the job. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.2 The mining company representatives are respectful. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.3 The mining company manager is a good listener. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 10.4 I think the mining company manager is a trustworthy person. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 1.4 I think the mining company community manager is fair when dealing with the community. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 10.6 While interacting with the company community manager, I feel that he/she is carefully paying attention to what I am saying. (C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 10.7 I feel the company community manager really cares about the well-being of the local community.(C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 10.8 I feel that the mining company personnel who work in the community relations department really care about the well-being of the local community.(C, G) Strongly Disagree Neutral No Opinion Strongly Agree 0 1 2 3 4 5 6 7 8 9 10 \t ? 286 APPENDIX I Screen shot of the online survey \t ? 287 APPENDIX J Study Participants Mongolian Case Study Ulaanbaatar Type Category Position Participants Interview Company UB VP Finance & Administration 01 Interview Company UB CEO 01 Interview Company UB HR Director 01 Interview Company UB Government & Community Relations Director 01 Interview Company UB License Manager Land 01 Interview Company UB Compliance Department 01 Interview Company UB Community Relations Manager 01 Interview Company UB Environment / Closure plan for Gatsuurt 01 Interview Company UB Corporate Social Responsibility Officer 01 Interview Community Local Entrepreneur (Mining Sector) 01 Interview Community Local journalist 01 Interview Community NGO (Anti-Corruption) 01 Interview Community International Consultant 01 Mandal Interview Company Community Relations Officer 01 Interview Community High School Director 01 Group Session Government Agriculture Department; Accountant for the Governor?s Office, Hospital Director 04 Group Session Community Senior Citizen; Bank Manager; Student at Vocational School; Private Business Owner; Unemployed Person; Tailor 09 Group Session Community Party Member; NGO ASM; Environment Protection NGO; Women?s Association; Business Owner; Youth Association Representative 06 Group Session Community & Government Farmer of Wheat and Vegetables ; Herder; Agriculture and Statistics; Civil Registration Officer 06 Interview Community Head of Youth Association, Member of Hural (local Parliament) and Owner of a Logging Company 01 Interview Government Deputy Governor of Mandal 01 Interview Government Chair of the Citizen Representatives Hural (local Parliament) of Mandal 01 Group Session Government 6 heads of bag (villages); Environmental Inspector; Forest Engineer 09 Interview Community NGO Head of National Association of MGL Human Rights Protection 01 Interview Community Leader of a Group of Tailors 01 Bayangol Interview Company Community Relations Officer 01 Interview Government Governor of Bayangol Soum 01 Interview Government Chair of Hural 01 Interview Company Union Representative 01 Group Session Government Head of Bagh (Village) 03 Interview Company BGC Employee Assistant on the Dev. Fund Project 01 Group Session Government Hospital Director, School Director, Kindergarten Staff, Worker at the Cultural Centre 04 Interview Government Worker at the Cultural Centre 01 Group Session Community Senior Representative (NGO); Women?s Representative; Community Members 05 Interview Government State Environment Inspector 01 \t ? 288 APPENDIX K Study Participants Canadian Case Study \t ? Record Category Type Organization Position 1 Community Interview / survey 2 Community Interview Denes online Corporation ? business arm Lutse ke dene FN President 3 Community Interview Det?on Cho ? Business arm Yellowknives Dene President & CEO 4 Community Interview Dettah FN Chief Dettah 5 Community Interview Mining Training Society President 6 Community Interview Tlicho Investment Corporation President 7 Company Interview DDMI Principal Advisor Sustainable Development 8 Company Interview DDMI Superintendent Community Affairs and External Relations 9 Company Interview DDMI Logistic Manager 10 Company Interview DDMI VP Operations 11 Company Interview DDMI Superintendent Training Health and Safety 12 Company Interview DDMI Manager Community & External Relations 13 Company Interview DDMI President & CEO 14 Company Interview DDMI VP Finance 15 Company Interview DDMI Principal Advisor Strategic Planning 16 Company Interview DDMI VP HR 17 Company Interview DDMI Superintendent Government Relations 18 Company Interview DDMI HR Manager 19 Company Interview DDMI HR 20 Company Interview DDMI Contractor General Manager ? I&D 21 Government Group Session Government ITI, Health & Social Services, Education, Culture and Employment \t ? 289 APPENDIX L Study Participants Argentinean Case Study Record Category Affiliation Position Participants 1 Community Development Agency Manager 1 2 Mining Company Union Mining Company Union Directors 6 3 Community Entrepreneur Owner 1 4 Community University Professor 3 5 Community Business Incubator Manager 1 6 Government Municipal Government Mayor 1 7 Government Municipal Government Secretary of Development 1 8 Government Municipal Government Counselor 1 9 Community Entrepreneur Owner 1 10 Community Agriculture and Rural Association Director 1 11 Government Municipal Government Counselor 2 12 Community Development Agency Board Director 1 13 Community University Students 12 14 Community Art craft Centre Employees 2 15 Community Entrepreneur Owner 2 16 Community Entrepreneur Owner 1 \t ?"@en . "Thesis/Dissertation"@en . "2014-05"@en . "10.14288/1.0103387"@en . "eng"@en . "Mining Engineering"@en . "Vancouver : University of British Columbia Library"@en . "University of British Columbia"@en . "Attribution-NonCommercial-NoDerivatives 4.0 International"@en . "http://creativecommons.org/licenses/by-nc-nd/4.0/"@en . "Graduate"@en . "Socio-Economic Mine Closure (SEMC) framework : a comprehensive approach for addressing the socio-economic challenges of mine closure"@en . "Text"@en . "http://hdl.handle.net/2429/45595"@en .