Work with the Communities 105
Work with the Communities Structure COMMUNITY RELATIONS MANAGER COMMUNITY RELATIONS MAGDALENA COMMUNITY RELATIONS CESAR 106
Work with the Communities Basics of the Program In the late 80s and early 90s, Drummond Ltd. carried out a social and environmental study of the area of influence. The study identified the neediest sectors in the region with the fewest resources available in the areas of health, education, and sports and recreation. The results of that study were the basis for defining the policy toward the communities and the areas of intervention. Preference was given to children and the most vulnerable sectors of society. 107
Work with the Communities Mission To be a GOOD NEIGHBOR, by creating a set of conditions for coexistence between the Company and the community based on respect for the community s rights and the fulfillment of our commitments, so that the latter clearly knows that Drummond Ltd. is a company with social responsibility and generator of local, regional and national progress. 108
Work with the Communities Principles Drummond Ltd. works with the communities; we respect and believe in the individual and collective capability of the communities to manage their own development Drummond Ltd. believes that social work should be the action of multiple actors: Private sector Government Community Other organizations This interaction allows for resource optimization and ensures the sustainability of the projects, extends coverage, maximizes the impact and multiplies the transformation effect generated in and by the community Drummond Ltd. s social projects primarily serve communities that will receive the greatest impact giving priority to programs that benefit children Drummond Ltd. does not replace the Government avoiding paternalism and dependence 109
Work with the Communities Objectives Work in coordination with the community, civic organizations, and governmental entities in the area of influence of our projects Promote, encourage and implement projects that improve the living conditions in the area of influence of Drummond Ltd. s project in Colombia Develop a "good neighbor policy to address neighborhood issues and land management matters Promote training programs for the population in the area of influence in activities related to the mining sector so they can successfully participate in recruitment processes that require qualified labor skills Purchase goods and services required by our operations giving preference to the local and regional markets Generate mechanisms to encourage the population in the area to acquire work and entrepreneurial habits, in order to promote the activation of new activities 110
Work with the Communities Area of Influence Area of influence 111
Social Investment 112
Work with the Communities Overview Drummond Ltd. s social investment focuses on five main areas: Healthcare Education and Cultural Activities Parks, Recreation and Sports Community and Institutional Strengthening Rehabilitation of Churches and other Historical Buildings 113
Work with the Communities Project Development Drummond Ltd. works on the basis of consensus between the communities, the local governments and the Company. Annual project selection in the last quarter of the year Co-financing: financing from the community, the mayor s office, the private sector, foundations, and Drummond Ltd. Drummond Ltd. s participation is mainly through the supply of materials and equipment until completion of each project Sustainability: guaranteed for health and education, because each project is included in the investment and development plans of each municipality 114
Work with the Communities Benefited Municipalities Benefited Municipalities 115
Areas of Work Healthcare Drummond Ltd. has helped build 8 hospitals, expand and remodel 17 maternity and infant centers and health centers since the start of its operations in Colombia Drummond Ltd. also donates medical equipment to the hospitals in the area (38 health centers and hospitals have been equipped) Drummond Ltd., in conjunction with the Smile Foundation, (Fundación Sonreir), organizes medical teams that visit the towns around our project providing services to treat conditions such as: Cleft palate Clubfoot Drummond Ltd. promotes public health brigades that include dentistry and prevention and control of common illnesses 116
Before Construction and Remodeling Hospital San Juan Bosco Bosconia 117
Construction Hospital Paz del Rio Fundación 118
Hospital Paz del Rio Fundación 119
Before Construction Hospital Luisa Santiaga Márquez Aracataca 120
Construction Hospital Luisa Santiaga Márquez Aracataca 121
Areas of Work Education & Cultural Activities Drummond Ltd. has helped build, expand, and equip 529 classrooms in the pursuit of sustainable communities and the improvement of education standards for Colombian youth and children with limited resources. The Company funds a Scholarship Program for low income students in the area of influence that provides full funding of tuition plus a monthly allowance for living expenses. Drummond Ltd. also supports and finances the following activities: training programs for teachers construction of school cafeterias building and manning of computer rooms and laboratories construction and equipment of school sports fields equipment of music schools Drummond Ltd. provides tuition aid for the employees and their families, as well as scholarships for employees for technical and higher education degrees Primary and high school: 5,577 beneficiaries children of 2,855 employees University: 1,371 beneficiaries children of employees and 1,035 employees Total contribution through 12/31/2012: COP$$8,521,908,433 (USD$4.7 million) 122
Construction Concentración Escolar del Sur Bosconia 123
Construction Concentración Enoc Mendoza Ciénaga Before an old public market was used to set up classrooms 124
Today Construction Concentración Enoc Mendoza Ciénaga 125
Before Before Remodeling Escuela de Artes y Oficios Rio Frio, Zona Bananera 126
Remodeling Escuela de Artes y Oficios Rio Frio, Zona Bananera 127
Before Construction Escuela Rural Mixta Vereda La Primavera, Ciénaga 128
Construction Concentración Escolar Vereda Cordobita, Ciénaga 129
Construction Integrated Science Laboratory Codazzi 130
Construction Dining Hall Colegio Las Flores Codazzi 131
Supply Instruments for Music School Becerril 132
Supply Instruments for Music School El Paso 133
Supply Instruments for Music School Zona Bananera Supply Instruments for Music School Codazzi 134
Areas of Work Parks, Recreation and Sports Construction, expansion, equipment and refurbishment of parks (over 60 parks) Promote the practice of sports in children and the community in general Construction of stages for the presentation of folkloric and cultural events Donation of 50 playground modules 135
Construction Park and Sports Grounds La Loma, El Paso 136
Construction Playgrounds La Loma, El Paso 137
Construction Cycle Lane Chiriguaná 138
Construction Park at Corregimiento de Sevillano 139
Before Construction Park San Carlos Community El Copey 140
Construction Parque Machiquez Codazzi 141
Areas of Work Rehabilitation of Historical Buildings Reconstruction Santa Marta Cathedral 142
Construction Seminary John Paul II Valledupar 143
Construction Central Square and Church Bosconia 144
Areas of Work Community and Institutional Strengthening Department of Community Relations - Drummond Ltd. Projects oriented toward community strengthening Eradication of extreme poverty in the municipalities in the area of influence of the project 145
Areas of Work Community and Institutional Strengthening Drummond Ltd. supports several initiatives in the communities of the area of influence. Some of these programs are: Road Maintenance Program Drummond Ltd. equipment dedicated to road maintenance in the municipalities Institutional Strengthening Good Governance Seminar for government officials from the departments and municipalities of the area of influence Support for productive and training projects for government officials, leaders and the community Support to ASORELOMA (La Loma Recyclers Association) Association of Women of La Loma: Drummond Ltd. provides training in the management of solid waste Association of Women Heads of Family of Ciénaga (ASOMUCFAD): Drummond Ltd. donates recycling material for the production of handicrafts 146
Areas of Work Community and Institutional Strengthening Support for the Funregalías foundation that monitors the investment of the coal royalties in the department of Cesar and training courses for citizen oversight groups Support to Environmental Education Programs With the support of the Universidad del Atlántico, Drummond Ltd. offers training courses for teachers, community leaders and environmental promoters in environmental activities 156 teachers have received training In alliance with the foundations SoyDoy (La Loma) and Genesis (Magdalena), Drummond Ltd. provides nutritional supplements for approximately 1,000 children Nursing home in Ciénaga: every month, Drummond Ltd. s employees donate between 60-70 pounds of non-perishable food 147
Good Governance Seminar Training seminar for governors, mayors, representatives and elected councilors 148
La Loma Road La Loma-Potrerillo Road La Loma-El Hatillo Road Maintenance Program El Paso 149
Work with the Communities Investment Program La Loma Drummond Ltd., in coordination with the municipality of El Paso, the Governor of Cesar, and utility companies designed an investment plan for La Loma with emphasis in the following areas: education, health, water works and sewage treatment, power, telephones and roads. 150
Work with the Communities Investment Program La Loma (USD) Drummond Ltd. Municipality Governor Others Total Infrastructure 33,466 53,849 4,093-91,407 Sewer 742,741 371,370 297,096 371,370 1,782,578 Power 51,992 129,980-77,988 259,959 Telephones - 3,714-259,959 263,673 Paving Main Road 684,970 185,685 - - 870,655 Road Maintenance 74,274 18,569 - - 92,843 Construction Landfill and Waste Cleanup 14,855 48,278 7,427-70,560 Water Works 54,220 55,706 371,370 111,411 592,707 Total 1,656,517 867,150 679,986 820,728 4,024,382 % Participation 41% 22% 17% 20% 100% 151
Paving of Main Road La Loma 152
Work with the Communities Green Towns Program Through this program Drummond Ltd. strives to assist with the protection of the environment, leading tree-planting campaigns in the municipalities of the area of influence of the project Drummond Ltd. works with schools to plant trees at the schools, parks, and streets in the towns around our project Drummond Ltd. supplies trees from the nurseries in Mina Pribbenow and Puerto Drummond Approximately thirty thousand trees are planted annually 153
Production Planting Process Tree Planting with Fruit Trees Sabanita School El Paso 154
Plants donated by Drummond Planting Trees in the streets of Ciénaga Ciénaga In cooperation with SENA, mayor s office, municipality and schools Planting in main roads 155
Work with the Communities Socialization of Environmental Plans Drummond Ltd. organizes guided visits to the mine and the port to inform the community and local authorities about the environmental and social commitments included in Drummond Ltd. s environmental management plans Every year the Company has approximately 1,500 visitors Drummond Ltd. also visits schools and universities in the area of influence of the project to inform students of the socioenvironmental plans of the Company 156
Work with the Communities Socialization of Environmental Plans Socialization Meetings At year-end, the Company reports to the community and to the authorities the progress in the implementation of the environmental management plan Participants in Socialization Meetings 157
Work with the Communities Grievance Process Community Grievance Process In order to address the requests, grievances and suggestions from the community, the Company has adopted a Community Care Manual which intends to regulate and inform the community about the process that their requests, suggestions and grievances follow inside of our Company. Along with this manual the Company also adopted Community Attention Policy and opened Community Care Centers in the municipalities of La Loma and La Jagua de Ibirico. In these centers the community can address their questions in relation to social, environmental and land management matters, recruitment processes, tax and royalty payments, among others. Through these centers the Company expects to strengthen its relation with the communities around the project. 158
Work with the Communities Challenges Reinforce alliances with government institutions and the private sector to eradicate extreme poverty (ANSPE - National Agency for Overcoming Extreme Poverty) Work with the International Cooperation Agency under the Office of the President of the Republic in order to obtain more social investment resources Train public servants in project formulation and financing so they can access royalty resources 159