Post on 16-May-2015
description
transcript
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved.
What is the role of mining companies in supplying
affordable housing, clinics and schools for mining
communities?
Andrew Lane 16 July 2013
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved.
Monitor Wrote the Book on Strategy
Monitor’s sustained investment in thought leadership generates unrivaled intellectual capital
for our clients
According to Harvard Business Review, seven of the 16 most influential business books
over the past 25 years have been written by Monitor authors
© 2012 Deloitte Touche Tohmatsu Limited
Let’s examine the context for this question
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Tough times for mining shareholders
0
20
40
60
80
100
120
140
160
180
Coal Price vs. Coal Producers (2010 – 2013)
Coal Price Anglo American (Coal) BHP Billiton
Vale Ncondezi Coal Rio Tinto
Xstrata
Sources: JSE Limited; Bloomberg.com
Deloitte 4
50
60
70
80
90
100
110
120
130
140
Diversified Mining shares vs. Commodity Price Index (2010- 2013)
BHP Billiton Rio Tinto
Anglo American CRB Commodity Spot Index
30
50
70
90
110
130
150
170
Gold Stocks vs. Spot Gold Price (2010 – 2013)
Barrick Gold Newmont Mining
Goldcorp Gold Bullion spot price
50
70
90
110
130
150
170
190
Iron ore producers vs. iron ore price (2010 – 2013)
Rio Tinto BHP Billiton FMG Vale Iron Ore Price
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Mining market capitalisation showing a decline
Market capitalisation decreased by 9.9% year on year (May 2012- May 2013)
Deloitte 5
832.5
924.5 -9.9%
2013 2012
Market Capitalisation of Top 29 Listed Stocks (USD)
Market Cap (USD M) Sources: Datastream
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Deloitte 6
Seaborne Iron Ore Balance (mt)
Seaborne Met Coal Market Balance (mt)
Global Thermal Coal Market Balance (mt)
Refined Copper Market Balance (mt)
Primary Aluminium Market Balance (mt)
Refined Nickel Market Balance (kt)
130205 256
-98-79-48
-16
-200
-100
0
100
200
300
‘18 ‘17 ‘16 ‘15
50
‘14 ‘13
-114
‘12 ‘11 ‘10
0.4 0.4
0.1
0.0-0.1
-0.4
-0.2
0.0
0.2
0.4
‘18 ‘17
-0.2
‘16 ‘15 ‘14 ‘13 ‘12
-0.3
‘11
-0.2
‘10
-0.4
29
149
-7
22
4
-10
0
10
20
30
‘16 ‘15
-1
‘14 ‘13
3
‘12
2
‘11 ‘10 ‘09 ‘08
1.3
2.3
0.91.5
1.21.7
1.1 1.01.4
0.0
0.5
1.0
1.5
2.0
2.5
‘16 ‘15 ‘14 ‘13 ‘12 ‘11 ‘10 ‘09 ‘08
1327
43
27
53
9110
10
20
30
40
50
60
‘18 ‘17 ‘16
2
‘15
4
‘14 ‘13 ‘12 ‘11 ‘10
4.0
-12.0-20
0
20
40
60
80
33.0
‘13
23.0
‘12
25.0
‘11
50.0
‘10
67.0
‘09
47.0
‘08 ‘16
14.0
‘15 ‘14
Global commodity markets are moving into surplus
Market Balances for Industrial Commodities
Sources: Datastream
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
• Head grades declining all over the globe ,Copper by (30%), Nickel by (40%), Gold and Zinc by 10%.
• Miners have to ‘run harder just to stand still’ (Xstrata)
• Copper ore-grades in Chile expected to fall from 0.9% in 2008 to 0.57% by the end of the decade. “More than $35 billion has
been invested in mines since 2004, but with no corresponding increase in production” (Diego Hernandez, CEO Antofagasta)
• Since the start of 2000, over 75% of new base metal discoveries are blind at depths > 300m
• Deep deposits are difficult to fins which significantly increases cost of extraction
• Also raises complex safety and risk issues – high risk of rock falls, flooding, gas discharges, underground earthquakes and
ventilation problems
• According to US Geological Reserve, almost 80% of base metal reserves in less developed countries or growth markets
• Miners need to move out of comfort zone to maintain reserves and production
• Corruption, infrastructure and governance increasingly big issues as miners move into unchartered regions
• Lack of water supply in remote mine regions and in arid environments i.e. Northern Chile
• Power supply availability. A big issue in South Africa and Chile. Bottlenecks in electricity supplies mean miners face some of
the highest power tariffs in the world
• Heavy equipment lead times above average
• Less developed transport infrastructure in developing economies
• Key issue for global miners who need to reach agreement with all stakeholders in a region
• Social License issues have even suspended development of permitted projects i.e. Minas Conga (Peru) and El Morro (Chile)
• Tighter environmental standards will raise capital expenditures, forcing companies to manage new and existing projects more
carefully than they have in past years
• Regarded as one of the biggest threats to global mining sector in 21st century
• Increased taxes, royalties, permitting hurdles, export restrictions, expropriation, legislated local ownership, nationalisation
• Playing out in developed economies (i.e. Australia MRRT) and developing economies. Latin American jurisdictions such as
Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Honduras, Panama, Peru and Venezuela have all tried to increase the
government's share of mining revenues via tax reforms`
• Lack of fiscal stability puts development of capital projects at risk in these countries
• Shortage of skilled labour. By 2020 Canada will need 100,000 new mining workers (Canadian Mining Human Resources
Council), Australian resources projects may have a shortfall of 36,000 trades workers by 2015 (Australian National
Resources Sector Employment Taskforce)
• Lack of engineers that have the skill sets to build larger, more complex projects Growing backlogs of EPCM contractors
Sources: Datastream
Long-term structural supply issues remain in place
Deloitte
Declining Ore
Grades
Deeper Mines
Heightened
Sovereign Risk
Critical
Infrastructure
Shortage
Social License
to Operate
Resource
Nationalism
Human Capital
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Canadian Government vetoed the
C$5.2bn takeover of Progress
Energy Resources by Petronas,
because it "was not satisfied that
the proposed investment is likely to
be of net benefit to Canada".
Mongolian government is
trying to renegotiate the
2009 investment
agreement on the Oyu
Tolgoi mine
Kenya has given mining
companies operating in the
country three years to cede a
minimum 35% equity to local
investors
In mid-May, Indonesia decided to
impose a 20% export levy on virtually
all unprocessed ores under a new
mining law. The country has also
announced plans to implement a total
export ban on nickel and other ores,
effective January 2014. Under new
rules, foreign companies must sell
down their stakes in mines in the
country, so that by the tenth year of
production the assets are at least 51%
owned by Indonesian entities.
Uruguay plans to implement
measures to compel larger mining
projects in the country to share their
profits with the federal government
and comply with tougher
environmental standards
Liberian government
is reviewing all
concessions granted
foreign multinational
mining and forestry
companies
China's strategically co-ordinated approach
to securing key commodity inputs via state
sponsored lending and export credits
Australian PM Julia Gillard speaking in
May - "I don't own the minerals,
governments only sell you the right to
mine the resource. A resource we hold in
trust for a sovereign people. They own it
and they deserve their share."
DRC Govt. amended mining code
will more than double royalty
payments, introduce capital gains
tax and raise tax charges on
imports of mining equipment and
machinery. Increased state
participation in mine projects from
5% to 35% Bolivian government declares
the nationalisation of Glencore's
Colquiri zinc-tin mine and
revoked the mining rights of
Vancouver-based South
American Silver Corp
Bauxite and iron ore rich
Guinea will buy additional
20% stakes in mining projects
Extreme risk category in
Resource Nationalism Index
for 2013.
Argentina shocked investors with the
expropriation of YPF from former
Spanish owners Repsol . In northern
Argentina, thousands of residents
protest against Canada's Osisko
Mining gold mine project
Peru – new tax on windfall
mining profits.
Zambia have pushed for 25%
to 35% state participation in
mining projects
Zimbabwe has released a draft amendment to its
indigenisation policy, confirming that the government will not
provide compensation for the 51% share it will hold in foreign-
owned mining companies
Mexico's Congress voted in favour of
a proposed 5% mining royalty
scheme, paving the way for a full
vote in the Senate as Mexico tries to
broaden its weak tax take.
Resource Nationalism is here to stay; Mozambique is no
exception
Deloitte
Ghana hiked corporate tax
rate to 35% from 25% and cut
capital allowances to 20%
from 80% for five years.
South Africa’s cabinet has approved
hiving off the state mining company as a
standalone entity, a move in line with
proposals for greater state participation
in the mining sector in the country.
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Mozambique’s Growth is Accelerating
Deloitte 9
Mozambique
6.9
Developing
Economies
5.7
World
3.3
Real GDP CAGR, 2007 - 2011 (%) CAGR in FDI Inflows, 2000 - 2011 (%)
8.0
18.0
68.4
Africa Developing
Economies
Mozambique
Sources: World Data Bank, 2012; UNCTAD (2011), Handbook of Statistics; IFC and Worldbank (2012), “Doing Business”; Fitch Ratings
Mozambique’s GDP growth rate is double
World GDP growth…
… FDI into Mozambique is growing faster
than the rest of the continent (2000–2011)
© 2012 Deloitte Touche Tohmatsu Limited
Key to Rankings 0-39 40-80 81-120 121-160 161-185
SSA Ease of Doing Business Ranking, 2013
However it is still relatively risky…
Burundi
Zimbabwe
Kenya
Ethiopia
Eritrea North Sudan
Niger
Mauritania
Mali
Nigeria
Chad
Central African
Republic
Uganda
Liberia
Sierra Leone
Burkina Gambia
Sao Tome & Principe
Equatorial Guinea
Djibouti
Senegal
Guinea Bissau
Namibia
South Africa
Tanzania
Democratic
Republic of the
Congo
Angola
Madagascar Botswana
Zambia
Gabon
Swaziland
Lesotho
Malawi
Rwanda
Benin Ghana
Ivory
Coast
Guinea
Cameroon
Congo
Republic
Comoros
Mozambique
Togo
Country Overall Political
Risk
DR Congo 74
Zimbabwe 72
Angola 56
Tanzania 53
Zambia 51
Mozambique 50
South Africa 41
Botswana 33
Political Risk of Select Countries, 2012
Sources: Source: World Data Bank, 2012; UNCTAD (2011), Handbook of Statistics; IFC and Worldbank (2012), “Doing Business”
Higher ranking indicates greater difficulty in
doing business (scale 1 – 185)
Higher risk rating indicates higher
political risk (scale 1 – 100)
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Ease of doing business SSA Ease of Doing Business Ranking by Category
Protecting
Investors
Paying
Taxes
Construction
Permits
Enforcing
Contracts
Trade
Across
Borders
Getting
Credit
Registering
Property
Getting
Electricity
Starting a
Business
Overall
Rating
South Africa 39 10 32 39 82 115 1 79 150 53
Botswana 59 49 39 132 68 147 53 51 90 99
Zambia 94 82 97 151 89 156 12 96 151 74
Mozam-
bique
146 49 105 135 132 134 174 155 174 146
Tanzania 134 16 21 44 1 12 22 27 13 15
DRC 181 35 36 10 36 40 13 17 26 30
Angola 172 9 29 24 46 36 22 24 17 41
Zimbabwe 172 20 22 42 18 38 22 11 35 27
Deloitte 11
Sources: Source: World Data Bank, 2012; UNCTAD (2011), Handbook of Statistics; IFC and Worldbank (2012), “Doing Business”
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ As a mining destination, Mozambique ranks favourably
compared to other SADC countries…
Deloitte 12
0
10
20
30
40
50
60
70
0 20 40 60 80
Botswana
South Africa
DRC
Mozambique
Zambia
Tanzania
Zimbabwe
Angola
1. South Africa
2. Botswana
3 DRC
6.Tanzania 7. Zimbabwe
8. Angola
4. Mozambique
5. Zambia
Source: BMI Mozambique Mining Report Q2 2012
Co
un
try R
ew
ard
Country Risk
Most
Favourable
Least
Favourable
Most
Favourable
Least
Favourable
Risk and Reward Ranking, by Country
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Mozambique still faces some significant challenges
• Despite sustained growth for two decades, half of the population lives
below the national poverty line
• Two thirds of the population do not have access to running water inside
their homes
• The resources boom has resulted in an influx of foreigners into the
country
• Regional economic differences are resulting in rapid urbanisation
• Inflation poses some social stability threat
• Half of the national budget is funded by donor partners which has an
impact on the balance of political power
• There is a significant infrastructure backlog
Deloitte 13
Source: Institute for Security Studies, Mozambique Situation Report
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Mining Companies are increasingly involved in provision
of bulk infrastructure
Deloitte 14
Russia
SA Australia
Brazil
Guinea Zambia
Mainly State State with some
private operators
PPP between state
and & private
companies
Mostly Private
funding with State
getting ownership
rights
Mozambique
© 2012 Deloitte Touche Tohmatsu Limited
What does this have to do affordable
housing, clinics and schools for mining
communities?
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Mining
Constituents
Business
Organised
labour Labour
Government Community
Desire
Maximise profit
Retain license to operate
Challenge
Changing government expectations
Government requirements for royalties, taxes, profit
share, and social spend can erode profitability
Can’t always meet community expectations
Don’t always understand community needs
Don’t fully understand labour dynamics
Outcome
Risk and uncertainty
Desire
Share in the mining wealth
Social growth and expansion
Quality of life
Challenge
Government has not delivered
Mining industry’s ability / willingness to
share wealth is limited
Outcome
Social unrest and frustration
Desire
Decent standard of living
Challenge
Poor education/understanding
Difficult working conditions
Perception of continued exploitation
Perception that unions have failed
workers
Outcome
Wildcat strike action
Desire
Membership
Drive government policy
Challenge
Losing/changing support
Role in government and society
Job losses
Outcome
Fight for relevance
Desire
Maximise revenue to the state
Provide infrastructure and social services
Economic competitiveness
Economic transformation
Challenge
Multiple arms of government not aligned
Policy often unclear / unstable / inconsistent
Role of organised labour in governing alliance
Outcome
Have not always delivered to communities
Deloitte
A mining company’s role in society is a function of the conflicting
interests of stakeholders
© 2012 Deloitte Touche Tohmatsu Limited
So, what’s the answer?
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Corporate
Social
Responsibility
Creating
Shared Value
Value: Doing Good
Citizenship, philanthropy,
sustainability
Discretionary or in response to
external pressure
Separate from profit
maximisation
Agenda is determined by
corporate footprint and CSR
budget
Impact limited by corporate
footprint and CSR budget
Value: Economic and societal
benefits relative to cost
Joint company and community
value creation
Integral to competing
Integral to profit maximisation
Agenda is company specific
and internally generated
Realigns the entire company
budget
Source: Porter, M. and Kramer, M., “Creating Shared Value”, published in the Harvard Business Review (January – February, 2011)
Beyond Corporate Social Responsibility — Creating
Shared Value
Deloitte
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Engage Effectively with
Stakeholders
Deploy Inclusive Solutions
Measure Socio-Economic Impact
1
2
3
Source: Monitor Analysis, 2012
Three Tools to Creating Shared Value
Deloitte
Identify where shared value can be
unlocked
Understand real needs
Defuse strained relationships
Create sustainable socio-economic
impact
Make the right investment decisions
Frame the debate between stakeholders
Build a shared vision of the future
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Few credible
tools exist for
measuring /
tracking socio-
economic
return in a
holistic manner
Well
established
tools exist for
measuring
financial
return . . .
Return to
Shareholders
Return to
Country
Return to
Citizen
Examples of Impact
Profit Margin
NPV
IRR
ROI
Financial Security
Physical Security
Social Networks
Professional Satisfaction
Maximize company
profit
Retain license to
operate
Share in the mining
wealth
Social growth and
expansion
Main Desires Stakeholder
Company
shareholders
Industrialisation and
Transformation
Job Creation and
Transformation
Political Stability
National Reputation
Maximize government
revenue
Provide infrastructure
and social services
Local,
Provincial and
National
Governments
Community
members
Employees
Source: Monitor Analysis, 2012
Start by getting the facts on the table
Deloitte
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Global Mining
House
Government
National
Local
Provincial
Employees
Unions
Private
Shareholders
Department of
Environmental
Affairs
Department of
Mineral
Resources
Department of
Labour
Mine
Industry
Associations
Owners
Job seekers
Chamber of
Mines
Private
Shareholders
National Union
of Mineworkers
Department of
Human
Settlements
District and
Local
Municipalities
Provincial
Government
Employees /
Dependents
Current
Employees Other Unions
Board of
Directors
Investors
Various Members and
Makeup
General
Public
Youth Voters Media
Rio Tinto
Traditional
Leaders
Local
Businessmen
Community
ANC
Ruling Faction
Other Factions
Unions
Department of
Labour
Department of
Mineral
Resources
Government
National
Provincial
Institutional
Shareholders Community
Department of
Environmental
Affairs
Local
Businessmen Ruling party
Ruling Faction
Other Factions
Employees
Financial
Institutions
AMCU
Civil Society
Job creation, beneficiation and safety
Revenue for the state
Environmental
compliance Policy
positions and
political allies
Services and
infrastructure Social upliftment, economic
transformation
Re-election
Political
favour
Justice and
peace
Membership,
bargaining power
Profit and license
to operate
Standard of living
Business
opportunities
Return on
investment Power
Profit and license
to operate
Job security, living
wage, decent work
Employment
opportunities
Portfolio
Source: Monitor Analysis, 2012
The stakeholder environment is not trivial – take the time
to understand it properly
Deloitte
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’
Source: IFC and Harvard Kennedy School, “Scaling up inclusive business: Advancing the knowledge and action agenda”, 2010
Inclusive Solutions
Deloitte
“An inclusive business is one which seeks to contribute towards poverty alleviation by including lower-
income communities within its value chain while not losing sight of the ultimate goal of the business,
which is to generate profits.”
– World Business Council for Sustainable Development
“Inclusive business models include the poor on the demand side as clients and customers, and on the
supply side as employees, producers and business owners at various points in the value chain. They
build bridges between business and the poor for mutual benefit.”
– United Nations Development Programme
© 2012 Deloitte Touche Tohmatsu Limited
So, in summary
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved. White markers indicate position
of Deloitte Drawing Guides
7.40 cm
2.91 Inches
6.00 cm
2.36 Inches
8.00 cm
3.15 Inches
11.70 cm
4.61 inches
0.50 cm
0.2 inches
0.50 cm
0.2 inches
11.70 cm
4.61 inches
To view Deloitte drawing guides:
1. Right-click on slide and select
’Grid and Guides...’
2. Check ’Display drawing guides
on screen’
3. Select ’OK’ Mining companies do have a role in society. This requires
difficult trade offs
Get the facts on the table – what real impact has been or needs to be
created for whom and by whom
Take the time to fully understand the stakeholder landscape
Think inclusively
Deloitte
Deloitte screen small Jan 2010
©2010 Deloitte Touche Tohmatsu Limited. All rights reserved.
Abrie Olivier
Deloitte Africa Mining
Industry Lead
aolivier@deloitte.co.za
John Woods
Deloitte Central & East
Africa Mining Lead
johnwoods@deloitte.co.uk
Andrew Lane
Monitor Deloitte
Director
alane@deloitte.co.za
Joao Machado
Deloitte Mozambique
Consulting Lead
jomachado@deloitte.co.mz
Louis Kruger
Deloitte South Africa
Mining Lead
lokruger@deloitte.co.za
Abrie Olivier
Deloitte Africa Mining
Industry Lead
aolivier@deloitte.co.za
John Woods
Deloitte Central & East
Africa Mining Lead
johnwoods@deloitte.co.uk
Andrew Lane
Monitor Deloitte
Director
alane@deloitte.co.za
Joao Machado
Deloitte Mozambique
Consulting Lead
jomachado@deloitte.co.mz
Louis Kruger
Deloitte South Africa
Mining Lead
lokruger@deloitte.co.za