Stakeholder Engagement
Photo by Simone D. McCourtie, World Bank
Stakeholder engagement is an essential component of the operations of oil, gas, and mining companies in host communities. This involves identifying the key stakeholders, understanding their issues and interests and managing their expectations. A fundamental part of successful stakeholder engagement is a dialogue which is built on clear communication strategies. This process needs to start as early as possible and requires monitoring throughout the life cycle of the project. Companies should design stakeholder engagement plans based on robust stakeholder analysis, and they should include information, communication, and capacity building activities to increase their active participation and support.
IFC’s Sustainable Infrastructure (SI) Advisory adopts targeted strategies to work with companies to engage stakeholders. We use a broad, inclusive and continuous process of communication, dialogue, partnership, and collaboration. Stakeholder engagement which is embedded in the project design and implementation process has the best chance of success. The Sustainable Infrastructure Advisory’s stakeholder engagement efforts span across revenue management, transparency, local supplier programs, workforce development, community investments, human rights assessments, and other initiatives.
In Action
Local Supplier Development in Guinea
We worked with Rio Tinto to develop a base of local suppliers for the Simandou mining project in Guinea. We helped develop local businesses and link them to the Simandou project supply chain and to other industries and markets to ensure greater benefit sharing. In addition, IFC worked with the Simandou project and Government of Guinea to collectively increase opportunities for the procurement of goods and services at the local level by improving the enabling environment.
Revenue Management in Peru’s Apurimac Region
IFC enhanced the capacity of seven municipalities to better manage royalty revenues expenditure by providing technical assistance. This would enable these municipalities to improve their investment processes to be effective, accountable and responsive to the community’s needs. Also, local leaders were able to enhance their capacity to participate in municipal investment decisions and to demand accountability. Stakeholder engagement involved an inclusive and continuous process of communication, dialogue, and collaboration with key authorities, local leaders, surveillance committees and the media.
Engaging with Stakeholders in Ghana
For three years, IFC supported Newmont Mining to manage the social and environmental impacts of a significant greenfield gold mine development in a remote, densely populated area. We also provided support to the company in managing the expectations of employment from local men and women. The project activities included the development of a resettlement action plan, a local supplier development program and integrating women into mining operations.
Mongolia Mining & Water Management Program
IFC worked with stakeholders of the Oyu Tolgoi copper and gold mine in the South Gobi Desert. We facilitated roundtable discussions to develop a Voluntary Code of Practice on Water Management. It included raising awareness and improving strategic communications on water resources management to build trust among the local communities.
Highlights
Simandou – Local Supplier Development in Guinea (Rio Tinto, Mining): IFC led efforts to develop a local content policy for the Simandou project. More than 3,500 participants received training in business management, HR, quality control management, marketing, Occupational Health & Safety, Leasing, etc. New supplier contracts worth more than $12 million were awarded, leading to the creation of over 1,000 new jobs in the local mining supply chain business. An Enterprise Center was created, and the Guinea Public-Private Dialogue platform is now operational.
Apurimac Revenue Management, Peru (Mining): Six municipalities improved the management of their investment resources, and as a result of this, more than 69 percent of the expenditures are aligned with the needs of the community. Also, 74 percent of investments were prioritized through the participatory budgeting process. Six municipalities adopted transparency practices that include regular accountability meetings and sharing information on municipal investment with local leaders and the population. Monitoring activities were conducted for 46 strategic projects covering development efforts in irrigation, water, education, and health. Over $10 million of additional resources were leveraged from various sources to finance social infrastructure projects.
Newmont Ahafo – Ghana: IFC worked to have 10,000 people successfully resettled into a new community. With our guidance, the company is on track to meet the regulatory target of using local firms for at least 10 percent of its procurement needs. It has led to 373 local businesses receiving contracts. 53 women-owned businesses incorporated into the supply chain, creating 176 additional jobs.
Responsible water management in Mongolia’s Mining Sector: A Voluntary Code of Practice has been signed by eight mining companies to promote the efficient and transparent use of water. Improved company water management practices. Over 1,000 stakeholders representing the community, government, and industry received training on water quality monitoring, mining and managing groundwater systems.
Photo by Iwan Bagus, IFC
