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ANNUAL%20REPORT%202015%20eng

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Sustainability Report<br />

OUR COMMUNITY<br />

Effective community engagement is essential to our on-going commitment as a socially responsible miner. We<br />

strive to build quality relationships with our host communities in all relevant fields of operation and seek to create<br />

lasting benefits. Relationships based on transparency, open communication and mutual trust are vital for us in<br />

ensuring meaningful contribution to the local economy and well-being. We aim to deliver long-term sustainable<br />

outcomes for the communities in which we operate by assisting them in developing independently of mining<br />

activities and company support.<br />

Our policy requires us to identify and assess the level of impact the Company has on the host communities and<br />

their level of interest in engaging with us. Accordingly, socio-economic baseline studies as well as impact and<br />

risk assessments are conducted by us to determine both the positive and negative impacts of our operations on<br />

the community. Based on the findings of these assessments, we develop individual plans to mitigate any adverse<br />

impacts associated with our activities, and at the same time, initiate projects and programs that support positive<br />

impacts to the sustainable development of the region. Below are our management plans in the area of community<br />

engagement:<br />

• Public Consultation and Disclosure Plan;<br />

• Resettlement Action Plan;<br />

• Grievance Management Plan;<br />

• Cultural Heritage Management Plan;<br />

• Economic and Physical Displacement Management Plan; and<br />

• Community Health and Safety Management Plan.<br />

We generate economic value for our host communities through employment, taxes and royalties, purchase of<br />

local goods and services and community development programs. Over the course of the reporting period, we<br />

purchased goods and services worth of over MNT450 million from the local communities, provided wages and<br />

benefits to local employees in excess of MNT16 billion, made payments to local taxes and fees in excess of<br />

MNT15 billion and spent over MNT400 million for community development programmes.<br />

Highlights of 2015<br />

• “Dream” secondary school, kindergarten and dormitory complex financed and established by the Company<br />

had its first graduation in 2015 and showcased exemplary academic performance by having the highest<br />

average graduation test scores in Umnugobi aimag;<br />

• Continued our participation in the South Gobi Water and Mining Industry roundtable project implemented by<br />

the International Finance Corporation (“IFC”), shared from our active community engagement practices and<br />

made a joint commitment to promote a responsible use of water, alongside with fellow mining companies<br />

who operate in the South Gobi region; and<br />

• The “Wind belt” project of the Company successfully continued for the fourth consecutive year and over 160<br />

local community members were enabled to grow vegetables in the project area.<br />

70<br />

Annual Report 2015

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