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IFC Conference 5 December 2006

ASSESSING THE IMPACT OF EXTRACTIVE INDUSTRY ON LOCAL COMMUNITIES. William Leshilo Manager: Community Development Anglo Coal South Africa. IFC Conference 5 December 2006. AGENDA. Extractive Industry and Communities Why Engage with Communities SEAT Integrating Community Development tools

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IFC Conference 5 December 2006

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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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