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Assessing the Impact of Extractive Industry on Local Communities

Explore how extractive industries engage with communities, the importance of sustainable development partnerships, and tools for assessing and managing impacts. Learn about corporate commitments, community engagement plans, and tools for development, capacity building, and creating new opportunities.

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Assessing the Impact of Extractive Industry on Local Communities

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  1. ASSESSING THE IMPACT OF EXTRACTIVE INDUSTRY ON LOCAL COMMUNITIES William Leshilo Manager: Community Development Anglo Coal South Africa IFC Conference 5 December 2006

  2. AGENDA • Extractive Industry and Communities • Why Engage with Communities • SEAT • Integrating Community Development tools • Measure Identification and Evaluation 2

  3. Extractive Industry and Communities • Greater expectations of private sector as ‘agents for change’ • Accountability to a broader group of stakeholders • Focus on core business impacts rather than just philanthropy • Growing importance of partnerships • Commitment to sustainable development • Legislation (MPRD Act in SA) 3

  4. Why Engage with Communities? • Improve our understanding of our impacts and points of concern • Inform our ability to contribute to sustainable development • Resolve issues and be accountable • Fundamental to being a ‘good neighbour’ 4

  5. SEAT: Objectives • Deliver on corporate commitments • Improve development outcomes • Build internal capacity • Improve risk management • Enrich Community Engagement Plans • Identify socio-economic footprint • Improve social awareness at mature operations • Consistency of approach to community ‘upliftment’; spread best practice • Develop uniform site-level targets 5

  6. SEAT: Structure ENGAGEMENT ASSESSMENT PLANNING FEED BACK 6

  7. Integrating Community Development Tools - SEAT Tool B6 – Summary of IdentifiedIssues and Community Needs Tool F1 – SME Development and Increasing Local Procurement for Development Complementary and Sustainable Livelihoods Tool F3 – Developing Human Capital Creating New Business and Employment Opportunities Supporting SME Development and Micro-Credit Schemes Supporting Community Development Building Community Capacity Infrastructure Issues Access to Financial Support / Resources Tool F4 – How to Set Up Partnerships Leveraging Donor Resources to Support Community Development Tool F2 – Establishing New Community Social Investment Initiatives How to Evaluate Requests for Financial Assistance / Donations 7

  8. Measure Identification and Evaluation Stakeholders • Management plan: • Objectives • Measures • Responsibility • Timing • Target Identified impact • Evaluate feasibility of • Management Recommendations • in terms of: • Capacity (skill & resources) • Cost to implement • Time to implement • Effectiveness Consult on appropriate measures to manage impact Impact management recommendations • Monitoring plan: • Key actions • Responsibility • Timing In-house expertise 8

  9. THANK YOU 9

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