Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  
 

7.2 Delivering shared value

Our aim is to be the most trusted and valued mining partner for key stakeholders wherever we operate – or where we plan to operate. This means establishing, maintaining and monitoring strong relationships with our employees, communities, governments and other groups. It also means ensuring that these relationships are sustainable, by building them upon the ongoing creation of mutually beneficial shared value.

Our most important means of generating shared value for the societies in which we operate is through:

  • The payment of wages, benefits and dividends to our employees
  • The payment of taxes, royalties and dividends to government
  • Where possible, the sourcing of goods and services from local suppliers (i.e. suppliers within our countries of operation and preferably in and around our mines) and help build their capabilities
  • The Socio-Economic Development contributions we make to those living around our mines

Shared value in the context of the Responsible Mineral Development Initiative

The Responsible Mineral Development Initiative (RMDI) – which was developed by the World Economic Forum – aims to:

  • Identify the key challenges around responsible mineral development
  • Develop practical responses to these challenges
  • Develop shared understanding of the benefits and costs of mineral development
  • Establish collaborative processes for stakeholder engagement

During 2012, the RMDI focused on the last two of these aims, developing a Mineral Value Management Tool. This aims to improve understanding of how value is created, to highlight those areas that have the greatest value potential and to identify where stakeholder expectations align and diverge.

The Tool focuses on the direct and indirect positive impacts of mining on seven dimensions of value that “drive value creation for governments, local communities and mining companies”. The seven dimensions are fiscal value, employment and skills, the environment, social cohesion and socio-economic development, procurement, beneficiation and infrastructure.

The work by the RMDI further demonstrates the growing consciousness amongst stakeholders that the actual and potential benefits of mining can be better measured, managed, promoted and leveraged – by looking beyond narrow measures of socio-economic impact. It is this same consciousness that has driven the application of our shared value approach.

www.weforum.org/reports/responsible-mineral-development-initiative

In 2012, our shared-value contributions to our local communities and host countries amounted to US$5.30 billion. This represents 95% of our total revenue.

Shared value is a broader measure than Total Economic Contribution, in that it captures local capital expenditure in addition to local operating costs – and is thus significantly higher. Shared value does not include, however, payments to capital providers other than dividend payments made to government and employees.

Like any mining company, our ability to sustain these contributions is entirely dependent on our ongoing profitability. As such – and fluctuations in gold price notwithstanding – our shared-value contributions are highly sensitive to increases in input costs, higher government imposts and more stringent regulation. This is a key message in our interactions with governments seeking to increase their short-term fiscal take (p151152).

Figure 7.8: Shared value by type
(US$m – pre-unbundling)
  Figure 7.9: Shared value by region
(US$m – pre-unbundling)
  Figure 7.10: Local employment
contributions by region (US$m –
pre-unbundling)
 

 

Member of near-mine exploration team at
Damang, Ghana
Member of near-mine exploration team at Damang, Ghana