Community Relations in the Mining Industry

This study discusses mining projects undertaken by Evolution mining company and Barrick mining company. The research will compare corporate social responsibility initiatives and their impact on local communities. In addition, the corporate structure of the companies and how they structure their community relation efforts are discussed.

Running head: COMMUNITY RELATIONS 1
Community Relations in the Mining Industry
Student’s Name
Professor’s Name
Institution Affiliation
Date

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COMMUNITY RELATIONS IN MINING INDUSTRY
Introduction
Mining is the extraction of valuable minerals and metals from deposits on the earth.
These minerals include gold, copper, titanium, petroleum precious stones among others. Mining
companies undertake exploration and mining projects through simple to complex processes
such as surface mining, open cast method, shaft mining, and placer mining techniques. Mining
processes lead to the disturbance of the natural environement through soil erosion, water
polution, air polution,and land degradation ( Yakovleva, 2017). This study shall discuss mining
projects undertaken by Evolution mining company and Barrick mining company. The research
will compare corporate social responsibility initiatives and their impact on local communities. In
addition, the corporate structure of the companies and how they structure their community
relation efforts are discussed.
Barrick Gold Corporation
Barrick Gold Corporation is a canadian mining company headquartered in Toronto
Canada. It was founded in 1983 as a Gold mining company. However, currently, the firm has
diversified its investments to mining of Copper.The firm currently operates in 10 countries
including United States, Australia, Argentina, Chile, Peru, Saudi Arabia, and Zambia (Barrick,
n.d). Currently, the company employs more than 10,000 employees. The company currently

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runs several projects although this study will major on Turtose Ridge Project, a mine located in
Nothern Nevada state of the United States. Barrik Gold Corporation is listed at the New York
Stock Exchange. It has a market capitalization of 15.428 Billion dollars.
Turquose Ridge Project
The ridge has an estimated 5.9 million ounces of gold reserves . Barrik Gold Corporation
invested an initial capital outlay of around $315 million on the Turtose Ridge Project (Barrick,
n.d). The mine produces approximately 250,000 ounces annually although its expected to double
its production this year. The company’s sells an ounce of gold at $720 although the cost of
sustaining a single ounce is roughly $630.The corporation plans to construct a third shaft
between 2018 and 2019 before it is equiped in 2018 as it awaits gold production in 2023.
Turtoise Ridge mines has Barrick’s highest operating portfolio placing it at the heart of the
company’s portfolio.
Evolution Mining Company
Evolution mining company is an Australian gold mining company created in 2011
through the merger of Conquest Mining and Catalpa Resources (Evolution Mining, n.d). The
firm has majorly grown through acquisition of Cowal and Mungari mining companies in 2015. It
notable mining projects include Cowal, Cracow and Mungari located in New South Wales,
Queensland, and Western Australia respectively.In addition, Evolution mining has economic
interests in Ernest Henry mining company located in Queensland . The company produced
801,187 gold ounces in its 2018 financial year. It is commited towards operating its mining
works safely and efficiently with the aim of developing them to full potential. Its recorded a

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global ore reserves of 7.05 million gold ounces as at December 2017. For the purpose of this
study, we shall major on Cowal project managed by company.
Cowal Gold Mining Project
Evolution mining company operates Cowal gold mining project with 100% ownership.
The mines is located 350 kilometres to the west of Sydney city of Australia. It is operated on the
domicile of the Wiradjuri community.The local communities living in the region are the Bland,
Lachlan and Forbes. The project was acquired by Evolution mining from Barrick Gold
corporation in 2015 at a cost of $US 550,000 million (Evolution Mining , n.d) .However, the
mines had been operated since 1980s by North limited until 2001 when it was acquired by
Homestake limited which again sold the mines to Barrick. Gold production form the firm has
risen from 238,000 ounces in 2015 to 2558,000 ounces in 2018. Evolution uses a single open pit
method which uses conventional drill and blast methodologies to extract the gold
deposits.Operations are planned to proceed until 2025 while gold processing shall continue until
2033.
Relationship between mining companies and Host Comminities
Mining operations are accompanied by massive environmenal effects that might disturb
local communities trough land degradation and toxicity. The Wiradjuri community that comprise
of Bland, Lachlan and Forbes people live within cowal mining site region. These communities
are beneficiaries and victims of the gains and losses of the mining project. Both Barrick Gold
corporation and Evolution mining maintain are commited towards maintaining good
relationships with host communities. Evolution mining has a community relations policy and
principles that guide the company’s actions while interacting with local communities. The policy

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creates a system that welcomes feedback on how they can improve on community relations.
Evolution mining implements community projects tailored to meet the interests of the locals.
Barrick Gold corporation and Evolution mining have managed to keep away from intense
community outrage. However, some Non-governmental organizations and community groups
have previously launched cases against Barrick to have mining stopped in their region. Evolution
mining also has faced some community outrages related to land use compensation and
environmental degradation.
Evolution mining performs social responsibility roles to enhance good relationships with
host communities of the Cowal gold mining project. Normally, host communities appreciate the
involvement of companies that utilize their natural resources in their local activities (Adams,
2016). Evolution sponsors local students to pursue their education, donates goods and services,
and offers training and internship programs to the local communities. In addition, the company’s
employment policy provides for the prioritization of host communities during job recruitments
and procurement.
The 2018 annual community report of the Evolution mining company highlights that the
company is committed towards investing in partnering with local communities in implementing
programs that generate sustainable value to the community. The company identified economic
development, education and apprenticeship opportunities, environmental conservation, and
health outcomes as possible sustainability programs that would create a lasting impact to host
communities even beyond the mining projects (Dobele et.al, 2014).
Barrick Gold Corporation is also active in striving towards developing good relationships
with its host communities at the Turquoise mining project. The company understands that local

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communities are vital in making the company’s business a success (Govindan, Kannan &
Shankar, 2014). In its corporate social responsibility report, the firm highlights that, its ability to
operate depends heavily on the company’s ability to manage positive and negative impacts of
mining on hosting communities. Through understanding this, the firm has recognized community
relations as a critical component of its business. It adds that building strong relations with hosts
can be achieved through getting simple things right such as controlling the impact of noise,
traffic, and infrastructure while sharing the positive outcomes of mining through hiring locally
and respective host communities (Prno & Slocombe, 2014).
Community Projects implemented by the companies
The two companies have engaged in various community initiatives to enhance their
engagement with locals. Both activities select initiatives that enhance economic, social, and
environmental wellbeing of the communities. Below are activities conducted by the mining firms
to enhance community relations.
During times of calamities, the firms provide donations in form of necessaries such as
food, clothing, and shelter to the affected. Calamities such as floods do occur within the mining
areas especially due to the interference on the natural environment (evolutionmining, n.d). The
mining companies should therefore be available to console and assist locals during such times.
Evolution and Barrick mining companies send volunteers to support locals through material
donations and sustainable projects that reduce exposure of host communities to similar
challenges.

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Education is key driver of sustainable growth in the society. When people acquitted
basic, professional, and technical education they are empowered to exploit opportunities that
arise within and beyond their places (Moffat & Zhang, 2014). Host communities of Barrick
Turquoise project and Evolution’s Cowal mining projects get support to enhance education in
their regions from the mining firms. This support occurs through funding of education
infrastructure and creation of awareness on the importance of education. Technical education is
also enhanced through creation of apprenticeship opportunities in form of internships which are
allocated in favor of locals.
Health is an essential component of human life. Communities are in a position to live
healthy lives and reduce incidences of diseases when they have access to affordable medical
care. Mining operations has the tendency of predisposing locals to health hazards created through
excessive exposure to dust, noise, and toxic chemicals (Bice, 2014). The two projects dispose
toxic materials to the nearby water bodies which resultantly expose locals to health hazards. In
recognition of the dangers of health hazards, the mining companies have financed health projects
in their regions of operation. This include construction and stocking of health facilities, running
community awareness on health among other strategies that promote health among host
communities.
Environnental conservation is at the heart of local communities since the natural
resources available are expected to support the current and future generations. Therefore, water
towers, forests, and land should be protected to enhance their sustainability. In recognition of the
fact that mining promotes environmental degradation, Barrick and Evolution engage in
combative environmental conservation initiatives such as tree planting (Maroun, 2017).

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Exhausted mines are reclaimed through sealing of mining pits among other processes that leave
mining areas in in a better condition.
The companies have sustainability programs incorporated in within their core values.
They benefit from these initiatives by promoting predictability of their operations and reducing
legal actions launched by local communities, NGOs and governments (Mayes, McDonald &
Pini, 2014). Legal cases might stall operations and hence curtailing the achievement of company
set goals.
Both companies are committed towards local hiring and contracting. Qualified
individuals from the host communities are given priority during job placements and tendering. At
Cowal and turquoise mining sites, majority of the people employed are locals while also majority
of procurement contracts are offered to locals.
Structure of Company community relations efforts
Evolution particularly encourages members of the community to submit applications that
provide outcomes in the areas of economic development, youth, health, education and
environment. In addition to applications for financial assistance, the firm encourages
organizations to submit applications in kind support, material donations or volunteer assistance
(Schwartz, 2017). Approved applications are given financial assistance, volunteer assistance or
material donations to meet their identified problem. This is similar to Barrick’s Turquoise mining
project where the company has installed a group of employees who act as community relations
officers. The team interact closely with host communities and present their grievances to the
management which acts on them to minimize community outrage.

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Barrick’s sustainability initiatives are provided for in the company’s community relations
management System (CRSM) made up of a community relations policy, sustainability standard,
and guidelines and processes that support them. The system defines performance standards for
interaction between the company and local communities. The sustainability goals are based on
mutual prosperity between the company and the community. The launch of a CSR scorecard by
that company had enhanced more planning and control of community relations outcomes.
Barrick has an external advisory board which provides counsel on community relations,
human rights, climate change, water and energy (Barrick, n.d). The board consist of experts in
various fields. The board meets with the company’s top management twice annually although it
conducts yearly visits to the mines. The board has always encouraged Barrick managers to
engage in responsible mining. In addition, at management level, Barrick has a chief sustainability
officer who is in charge of CSR and community relations. He manages a community relations
team that interacts with host communities with the aim of ensuring peaceful coexistence.
Evolution mining does not have an external advisory board like Barrick Gold Corporation. It has
an executive vice president in charge of community relations who also doubles up as the
company secretary (Barrick, n.d). This executive works has a team of employees who work
under him to ensure that the company maintains good relations with the host community at
Cowal. The Board of Directors play in both companies is a decision making arm of the company.
It ensures that managers tasked with the operations of the company make effective and sound
decisions. Both companies make public their sustainability initiatives through quarterly and
annual CSR reports. The reports are made public through the companies’ websites investor
information page to enable easy access by the public.

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Conclusion
In conclusion, it is evident that mining companies are much aware of the importance of
maintaining good relations with host communities. The approach of Barrick Gold Corporation
and Evolution mining are to a great extent similar. Both companies implement corporate social
responsibility initiatives through enhancing environmental conservation, sponsoring education
and sports among the youth, and hiring locals in their fields. Procurement is also done in favor of
local companies with capacity. Slight differences occurs in the community relations management
system. Barrick Gold Corporation has an external advisory board which advises the management
on strategic issues including community relations and sustainability.
References

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