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People & Mining Continuously Balancing & Increasingly Challenging
People & MiningContinuously Balancing & Increasingly Challenging
IntroductionLessons Learned
1) Stakeholder Engagement
2) Financial Discipline
IntroductionOur perspective
Miner
Investors
Government
Employees
Community
1. Fair Share2. Continuously Balancing 3. Increasingly Challenging
CommunityWeb 2.0 era
CommunityShared values
Cost of Conga:- USD 5 B project halted;
Water
Doña Maxima Acuña Chaupe
Independent system to review environmental impact assessments
Social License
Miner
Investors
Government
Employees
Community
CommunityConflict
CommunitySocial License to Operate
Corporate Social ResponsibilityNo formal AgreementDynamic
“…Permission is like dating. You don't start by asking for the sale at first impression. You earn the right, over time, bit by bit..”
GovernmentResource Nationalism
Cost of Resource Nationalism:• Multi Billion Dollar
Forms of Resource Nationalism:• Beneficiation• Government Ownership• Taxes/Royalties
FDI & Resource Nationalism:• Rule of law;• Accountability;• Transparency;• Integrity;
Miner
Investors
Government
Employees
Community
GovernmentJudicial/Regulatory activism
Cost of Malku Khota*:- USD 16 M Development Stage;- Support from 43-46 of indigenous groups;
Miner
Investors
Government
Employees
Community
*http://www.northernminer.com/news/bolivian-govt-seizing-malku-khota/1001553854/?&er=NA
GovernmentCompliance
National Instrument 43-101
GovernmentCSR & GRI
Government of Canada International CSR performance guidelines Canadian companies:
1. International Finance Corporation Performance Standards;
2. The Voluntary Principles on Security and Human Rights; and
3. The Global Reporting Initiative .
The government will work with the GRI and stakeholders to develop GRI supplements for junior mining companies.
http://www.miningfacts.org/communities/what-is-corporate-social-responsibility/#sthash.yZfAfEYl.dpuf
InvestorsGovernance
Cost for Bumi Plc:- Shares price plunged 69%;
Miner
Investors
Government
Empoyees
Community
InvestorsReputation
Loss: 3,000 Alaskan jobs$ 541 M Investment
Miner
Investors
Government
Employees
Community
EmployeesEmpowerment
Management Team
EmployeesGovernance
Cost of Marikana:- FDI in SA;- PMG production;- Workers;
Miner
Investors
Government
Employees
Community
Investment ModelTriple Bottom Line
Why?
Equator Principles Adoption:• > 80 financial institutions;• > 35 countries; and• > 70% of Project Finance debt in emerging markets.
IFC Performance Standards:• 184 member countries
Global Reporting Initiative:• > 4,000 organizations;• In 60 countries;
Investment ModelStock Exchange & Exploration
Short Term vs Long Term
Public Interest vs Private Interest
Transparency vs Confidentiality
Investor Focus vs Project Focus
Stone Capital ResourcesOur Principles
Performance Standard 1Assessment and Management of Environmental and Social Risks and Impacts
Performance Standard 2 Labor and Working Conditions
Performance Standard 3 Resource Efficiency and Pollution Prevention
Performance Standard 4 Community Health, Safety, and Security
Performance Standard 5 Land Acquisition and Involuntary Resettlement
Performance Standard 6Biodiversity Conservation and Sustainable Management of Living Natural Resources
Performance Standard 7 Indigenous Peoples
Performance Standard 8 Cultural Heritage
Stone Capital ResourcesOur Investment Criteria
Stage Early Stage ExplorationGeograp
hy South America
Metals Precious & BaseInvestm
ent Up to USD 10 M per project
Term Between 5-7 years
Stone Capital ResourcesOur Project Stages
Decision Point
> 1 million hectare of prospective land
Generative
Drill Target Generation
Target Delineation
Drilling & Ressource Delineation
Economic Studies (PEA, PFS, FS)
Mine Construction & Production
Current Operations
Advanced Projects
Target Testing
Decision Point
Decision Point
Decision Point
Stone Capital ResourcesOur Entry Process
ScreeningStep 1
EvaluationStep 2
ReviewStep 3
Due Diligence
Step 4
Investment
Step 5
• Check for right fit based on investment criteria
• Introduction Management Team;
Finding alignment with Key People, Goals, ExpectationsMeet with Management Team to assess any existing EHS and/or other project plans in order to determine actual Scope of Work.
LOI | Termsheet | Full Legal & Operational Due Diligence prior to Investment | Inspect site and evaluate current conditions: i)Environmental impacts / community receptors, ii) Review existing EHS plans, iii) Benchmark current conditions with IFC and government requirements.
• Capital call | Enter into agreement | Tax & Legal structuring | Investment
Stone Capital ResourcesOur Monitoring
Assist in Environmental & Social Impact Assessment.
Amend Company’s corporate EHS plan/program to address risks and requirements of the
particular project.Train personnel on EHS
program; Develop performance metrics;
Conduct periodic audits of the site program;
Develop and monitor implementation of corrective
actions; andImplement continuous
improvement loop & management of change
processes.
Stone Capital ResourcesContact
Egbert Hennen Stephanie [email protected] [email protected]
Gideon Blaauw Eric [email protected] [email protected]
@Stonecapital
