2007 Full Report - Kinross Gold

Reaching Out in RussiaThe community outreach program at our Kupol project in the Chukotka regionof Russia began with public meetings held with local citizens and organizationsat the outset of the permitting process in early 2005. Since then, as constructionhas progressed, these public consultations have continued annually in thosecommunities that have a stake in the development of the deposit, including Bilibino,Ilirney, Pevek and Anadyr/Ugol’niye Kopi.At Kupol, publicconsultations havecontinued annually incommunities with a stakein the development ofthe deposit.The initial intent of these meetings was to provide an open exchange of informationand dialogue. In 2007, the meetings evolved into a forum for practical discussion onthe most effective means for Kinross, as the majority owner of the project, to investin community development initiatives. One specific outcome was a commitment byKinross to establish a $1 million development fund that will be supplemented withadditional annual contributions of $250,000.Until the fund becomes fully operational in 2009, we will continue to work with localstakeholders to establish its decision-making framework and investment priorities.This includes gathering and analyzing socio-economic data, establishing contactwith community development groups, and discussions with government officials.Ultimately, the objective is to create a responsive funding mechanism that will helplocal communities participate directly in the economic opportunities associated withKupol. Likely areas of focus for support will be education, health care and smallbusiness development.Another major priority is to develop a meaningful relationship with indigenous peoplesin the region. While the project provides an obvious opportunity for employmentat the mine, one of the challenges identified through the public consultations wasthe importance of maintaining a proper balance between industrial mining and respectfor traditional land uses. Kupol is working with the Chukotka branch of the RussianAssociation of Indigenous Peoples of the North to identify priorities for support. Byagreement, the association will have a seat on the steering committee of the KupolFoundation and no less than one-third of monies distributed by the Foundation willsupport indigenous causes.Page 43 Kinross 2007 corporate responsibility report