Minmetals Resources Limited 2011 Sustainability Report (PDF)

At a regional level, the report highlighted the followingSepon contributions for their long-lasting and positiveimpact on both Sepon employees and local stakeholders:» In just nine years of operation average incomes atSepon have increased seven-fold. The result of theseincreases in wealth is evidenced by changes in foodsecurity, improved housing and an increase in thenumber of motorbikes, mobile phones, refrigerators,water pumps and cars purchased. The number ofprivate bank accounts has also increased;» In 2010, Sepon employed 2,300 Lao people throughdirect employment, 1,600 indirectly and 9,750 peopleexternally by means of mine services demand. Personnelare predominantly local citizens;» In 2010, Sepon allocated a budgeted trainingexpenditure for employees of US$6,403,825;» In 2010, Sepon contributed US$412,044 to its SocialDevelopment Trust Fund; and» In 2007, Sepon was responsible for providing a totalincome of US$391,000 to Lao suppliers throughprocurement initiatives. This rose to US$2,217,394in 2011.The report credits both MMG and PanAust Ltd. withdedicated local community employment, investmentand development programs which have had, and arecontinuing to have, a measurable effect on increasesin living standards, through local enterprise evolutionand viability, water, sanitation and communicationsinfrastructure, education and health improvements,and fundamental self-sufficiency gains.There is, however, attention drawn in the report tosome important challenges. The land disturbance andenvironmental impact of mining is not insubstantialon local populations. Higher education attendance hasalso dropped in some areas as an opportunity cost ofpreferential local employment at the mines. The reportalso found that increased land use by the mines is notoffset by increases in jobs, and that the communityremains vulnerable to cut-backs in indirect mineProducing MMG safety uniforms.employment if economic conditions degrade, as wasthe case during 2008–09’s global financial crisis.The report authors highlight that further governmentreform, economic control measures and communityinvestment partnerships will support the mines’ ongoingsustainability contributions. These are fundamentallydriven through MMG’s operational planning and itsvision and commitment to being an industry leader incorporate, environmental and social responsibility.When launching the report MMG Chief Executive OfficerAndrew Michelmore said “The analysis is a very hearteningvalidation of a decade of significant efforts to delivertangible community and national benefits”.“We must leave an area better off than when we arrived– that is the challenge for all mining companies,” he said.The full draft of the ICMM’s report, Utilizing mining andmineral resources to foster the sustainable developmentof the Lao PDR, was presented in February 2011 at aworkshop in Vientiane attended by 150 representativesfrom national and provincial governments as well as theNational Assembly. The report can be read and downloadedat the ICMM and MMG websites.MINING'S contribution to the current account OF THE Lao PDR1,500Total exports (constant $m)Total dividends paid abroad ($m)Total imports of good and services ($m)Impact on current account balance ($m)Total debt servicing ($m)1,2009006003000-300-600200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202417