CSR IN THE MINING INDUSTRY

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CSR IN THE MINING INDUSTRY Challenges and
opportunities in Chile Montreal Conference June
2008 José T. Letelier Vicepresident External
Affairs Kinross South America
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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• THE NEW ESCENARIO FOR THE MINING INDUSTRY.
• - Higher metal prices and profits of mining
  companies have raised social expectations.
• - Distribution of the pie.
• - Communities want to ensure mining is
  developed in a sustainable way.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• - Public awareness.
• - Empowerment of new actors Civil society.
  Indigenous communities. NGOs.
• - Regulatory environment.
• - Public scrutiny.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• SOME CSR CHALLENGES FOR THE MINING SECTOR.
• 1. Water
• Water depletion.
• Scarcity, particularly in mining districts.
• Wrong perceptions about the use of water.
• Dispute over use of water with other
  sectors which are economically and
  politically sensitive (human
  consumption,farmers).

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Actual Consumption of Water by Productive Sector
Source Sonami Consejo Minero, October 2007
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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• 2. High price of metals
• Economic expectations.
• Labor demands.
• Taxation issues.
• 3. Indigenous rights
• ILO 169 Convention.
• Land titles and water rights.
• Compensation.
• Participation (veto) in EIAs approvals.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• 4. Protection of the environment.
• Water contamination.
• Air emissions.
• Flora and fauna preservation.
• Climate change.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• OPPORTUNITIES.
• 1. Water
• Hidrological modulation of aquifers.
• Share information with authorities.
• Programs with communities to improve use
  of water.
• Efficient use of water at mine sites.
• Desalination.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• 2. High prices of metals
• Increase social programs.
• - Education
• - Health
• - Housing
• R D.
• Support mining clusters.

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CSR IN THE MINING INDUSTRY Challenges and
opportunities in Chile
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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile
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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• 3. Indigenous rights
• Open dialogue and consultation.
• Environmental education.
• Sustainability programs.
• Preservation of cultural heritage.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile

• 4. Protection of the environment.
• Efficient use of water and energy.
• Climate change.
• Educational programs for
  communities.
• Flora and fauna protection programs.

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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile
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CSR IN THE MINING INDUSTRY Challenges
and opportunities in Chile