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Journey Towards Sustainability: The Case of the Newmont Ahafo Development Foundation. Presented in New York – USA – March 2010 By Nick Cotts & Joseph Danso. Overview. Commitment to Sustainable Community Development Ahafo Social Responsibility Forum Community Agreements

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Journey Towards Sustainability: The Case of the Newmont Ahafo Development Foundation


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journey towards sustainability the case of the newmont ahafo development foundation

Journey Towards Sustainability: The Case of the Newmont Ahafo Development Foundation

Presented in New York – USA – March 2010

By Nick Cotts & Joseph Danso

overview
Overview
  • Commitment to Sustainable Community Development
  • Ahafo Social Responsibility Forum
  • Community Agreements
  • Newmont Ahafo Development Foundation (NADeF)
    • Vision and Mission
    • Governance structure
    • Funding
    • Allocation of Funds/Development Focus
    • Articulation/Alignment
    • Foundation’s Activities
    • Challenges
  • NADeF Linkages to Newmont, COM DEV and Local Government
slide3

Newmont’s Commitment to Sustainable Community Development

  • Create value with a wider set of stakeholders through the alignment and linkage of our business and our social responsibilities
  • Balance economic considerations with social/environmental consequences to understand how our actions today may affect future generations
  • Fundamental understanding that community acceptance is paramount to a sustainable business model
  • Seek to maximize training, employment and business opportunities using fair and transparent processes that provide the opportunity for local communities to articulate their needs and aspirations
  • Maximize opportunities to leverage community development projects and empower other sectors through partnerships are sought out and encouraged
slide4

Ahafo Social Responsibility Forum

  • Community/Company initiative: Multi-stakeholder group of 55 members; independent moderator and co-moderator
  • Traditional Leaders, Youth, Women’s Groups, Regional Gov’t, Local Gov’t, Local NGOs, Farmer Groups, Newmont
  • Forum for discussion and decision-making between stakeholders on issues related to community development and the business
  • Forum met over 20 times during a 2 year period
  • Standing Committee Purpose/Function
ahafo social responsibility agreements
Ahafo Social Responsibility Agreements
  • Three agreements encompassing ten communities in the Ahafo mine area:

Relationship Agreement: roles and responsibilities on how the Company and Community will engage

Employment Agreement: guidelines in the hiring of local workforce

Foundation Agreement: Creation of the Newmont Ahafo Development Foundation (NADeF) as a structure to fund and support sustainable community development programs

newmont ahafo development foundation nadef
Newmont Ahafo Development Foundation(NADeF)
  • Vision: To achieve community prosperity and self-reliance.
  • Mission: Our mission is to empower communities through grants, knowledge-sharing, partnership and capacity building to achieve sustainable development.
  • Stakeholders Vision for NADeF:Our vision for NADeF is to be a recognized and trusted development partner in the Ahafo Communities.
    • NADeF is registered under laws of Ghana.
    • NADeF Agreement signed between Newmont and AhafoMine Communities in May 2008.
    • NADeFSecretariat established with offices located in one of the Mine Communities
governance structure
Governance Structure
  • Board of Trustees
  • Nine-member Board (4-Comapany and 4-Community + Chairperson) established by the Agreement to manage and control the funds of the Foundation
  • After 6 years additional community members will be appointed, including Chairperson
  • Secretariat
  • Established with 4 main employees (Exec Sec, Project Coordinator, Fin Controller, Admin Assist) and 4 supporting staff (1 driver, 1 housekeeper and 2 security guards)
  • Administer day-to-day activities
governance structure cont
Governance Structure (cont)
  • Tender Board
  • Nine-member Board (2-Traditional Leaders, 2-Local Government Reps, 2-Youth Reps, 2-Newmont Reps and 1 member appointed by BOT as Chairman)
  • Responsible for any tendering process in accordance with the Ghana Procurement Act
  • Sustainable Development Committees (SDC)
  • Seven-member community-based committees in each of the ten communities (1-Youth Rep, 1-Women Rep, 1-Unit Committee Rep, 2-Trad Leaders Reps, 1- Assembly person and 1 community member nominated by the Traditional Leaders)
  • Responsible for planning development projects at the community level and submission of community proposals to the Secretariat through the District Assembly
foundation funding
Foundation Funding
  • Foundation is supported by $1 per oz &1% net profit from Ahafo Operation (about $4.7 Mn YE 2009)
  • Model is to partner with external donors locally, nationally and internationally
  • Endowment provision funded via the annual contribution (10% - first 5yrs; 15% - second 5yrs; 20% - third 5yrs; and 25% - fourth 5yrs).
  • Partnership funding and leveraging resources is opportunities are being evaluated
allocation of fund focus areas
Allocation of Fund/Focus Areas
  • Social Responsibility Forum established allocation system aligned with self- determined development
  • Ongoing projects in the communities include: Construction of Teachers’ Quarters, Construction of Library, Drilling and mechanization of water bores, Construction of classroom blocks etc.
  • Funds are allocated to communities based on set criteria using impact, population, land size in mining lease area, commitment etc.
articulation alignment with development partners
Articulation/Alignment with Development Partners
  • SDCs liaise with the District Assembly in the identification of community projects
  • Final approval of community proposals to the Foundation is done by the District Assembly – to ensure projects are aligned to the District Development Plan
  • Technical supervision of all projects are done by the District Assembly engineers
  • Completed projects and programs are handed over to relevant government agency and the community
  • Ahafo Com Dev is coordinating the setting up of the Foundation Secretariat and capacity building for the SDCs
  • Ahafo Com Dev discussing possibility of existing projects that could be aligned to the Foundation agenda and possible implementation by Foundation
journey towards sustainability
Journey Towards Sustainability
  • Projects supported under NADeF are aligned to the District Government’s Development Plan
  • Broader community participation in the planning, decision making and the implementation process creates sense of ownership
  • Governance structure separate from the company – individuals serving on committee as equal partners
  • Possibility of supporting projects with community resources – land, labour etc.
  • Infrastructure projects handed over include operations and maintenance plan
  • Endowment supports future of the Foundation after mine closure
  • Leveraging resources through partnership approach
foundation s activities
Foundation’s Activities

List and Photos of key activities / some NADeF projects

SDC Training Workshop

SDC Refresher Training

Mechanized water @ Ntotoroso

Teachers Quarters @ Gyedu

Classroom Block @ Wamahinso

WC Toilet @ Ntotoroso

slide14

Our Challenges

  • Dependency: Newmont Ahafo cannot meet everyone’s needs!
  • Continuous pressure to “act” as the local government
  • Building a long-term vision with local communities and government
  • Secretariat capacity, network and partnerships
  • Alignment/agreement of priorities vs. resource availability
  • Capacity of community to engage with Foundation and provide timely feedback
  • Managing expectations of stakeholders on community development issues
  • Defining sustainability and creating a shared vision