[PDF] Community Development Toolkit - CommDev

CASE STUDYStrengthening community engagement following mine expansionVale, Minas Gerais, BrazilRELATIONSHIPS TOOLSSummaryThe expansion of Vale’s Brucutu mine in Brazil’s Minas Gerais State brought with it a rangeof significant social and economic impacts. While the expansion was well handled from atechnical perspective, failure to adequately manage these social and economic impacts –particularly relating to the large influx of work-seekers during the construction phase – ledto resentment against the company. A collaborative action plan was developed for two ofthe most directly affected cities, resulting in stronger relations between the company andlocal stakeholders.Context and challengePrior to the mine’s arrival, the economy of São Gonçalo do Rio Abaixo was primarilyagricultural, with limited industrial infrastructure. When the mine began production, thecity’s population expanded significantly, schools were refurbished and other civic works wereundertaken such as the opening of a new cultural centre and the construction of a universitycampus. Neighbouring city Barão de Cocais also received a range of benefits from thepresence of the mine, such as the creation of new jobs, technical training and hiring of youngpeople. Additionally, development of local trade and the installation of a large automotivedealership (a supplier of Vale that moved to the city) were fostered by the company.However, when the mine expanded there were a number of challenges that quickly led todeteriorating relations between the mine, local authorities and local communities. The mostsignificant impacts related to the 6,000 men who arrived in Barão de Cocais to work on theconstruction of the project. Most of these men were lodged in the city and the suddenincrease in population, although temporary, brought real challenges to the city’sinfrastructure. For example, the motel in the city was adapted to house the workers andgarages became dormitories. The population increase resulted in problems relating tohealth, transportation and safety services. The lack of dialogue between Vale (and itscontractors) and the community increased difficulties.ResponseThe company commissioned an economic impact study that provided a clearer picture ofwhat had happened in the region. Using the study as a basis, the company decided toprepare an “investment plan” to support growth in Barão de Cocais. Meanwhile, during theplanning process, the company realized that many of the suggested solutions involvedinvesting in dialogue rather than large expenditures in infrastructure. This change incompany attitude began with a process of raising employee awareness. A dedicated teamwas appointed to maintain a public dialogue with the community. This team took part indeveloping “joint solution groups”, comprising company representatives, local citizens andauthorities. The groups debated the difficulties the cities were experiencing and soughtviable solutions for the existing social impacts in the city.Vale took responsibility for the overall impact resulting from the company’s arrival andoperations. Several specialized studies were conducted to assess each issue arising in themeetings. Traffic problems caused by the increase in the number of vehicles from thecompany, for example, were mitigated with the help of outside consultants. These expertssuggested actions such as switching the right of way of certain streets, relocating bus stopsfrom certain points and changing the route used by trucks. The changes were implementedwith funding from Vale.70 Community Development Toolkit➜