Wherever we operate, we support local business development to promote local economic growth, to enhance the standard of living and opportunities for our neighbors.

In Indonesia, our Small and Medium Sized Enterprise Development team is working with dozens of local entrepreneurs to foster successful businesses in a rapidly growing local economy. One example is PT Yawiraya, which started operations in 1996 with just two people providing seedlings for nurseries. Today, it employs 95 people and has expanded its services to include painting, scaffolding, roof top cleaning and carpentry. This business holds contracts with several PT Freeport Indonesia business units. The owner chose the name Yawiraya because it means “bird of paradise” in the Dani language and his goal is for Yawiraya to provide services that will enhance the beauty of the surrounding environment, making it as beautiful as the bird of paradise. PT Yawiraya and other company-supported small businesses provided employment to more than 1,700 local residents during 2007.

In Peru, the Cerro Verde mine supports many partnerships to develop and promote small businesses and income generation. In response to a need for industrial cleaning services, Cerro Verde worked with a group of 66 women to help them obtain certification and employment with regional companies. The mine is also helping a group of 29 copper artisans to increase their independence by diversifying their products and markets. Similarly, Cerro Verde supports Manos Creadoras de Uchumayo, 28 alpaca wool knitting artisans on how to incorporate their business, and how to enter national and international markets. Cerro Verde is now focused on helping the group to design and market their products appropriately for international markets. Local farmers receive training and support through programs to help increase livestock production and diversification of crops, including organic produce. Through all these programs and more, Cerro Verde reached more than 1,000 people in neighboring communities during 2007. We will seek to add during 2008 a micro-credit component to increase the number of sustainable small businesses in the area.

In Chile, our El Abra mine helped establish a sustainable community laundry business for the village of Chiu Chiu. “Liq cau isa acsa licuan,” (Women of My Town) was launched during 2007. The program, implemented in association with the indigenous community of San Francisco de Chiu Chiu, the Indigenous Development Regional Corporation and the Municipality of Calama, includes training in business management for heads of families, many of whom are women.

In Copiapo, Chile, our Candelaria mine sponsors numerous education programs to support small business development, benefiting nearly 300 people from Copiapo, Caldera and Tierra Amarilla. Participants were trained in baking, food handling, national and international cuisine, drapery making, cosmetology, best agricultural practices, customer service, entrepreneurship and mechanical skills.

Mentoring Small Business – Brick and Fence Making in the Democratic Republic of Congo Tenke Fungurume Mining (TFM), located in the Katanga Province in the Democratic Republic of Congo, has implemented a program to support the development of local Congolese small and medium enterprises (SMEs). Through a partnership with Pact, an international NGO, TFM has supported the development of 41 small enterprises employing over 400 workers in brick and diamond-mesh fence production. The SMEs were developed by selecting local entrepreneurs and providing them with technical training and access to start-up capital. The training covered issues of safety, budgeting and bookkeeping, and risk aversion. In 2007, brick production exceeded 1 million bricks per month and fence production peaked at 8 kilometers per month. TFM has purchased the bricks and fence to use in the current construction phase of the mining project. The support for these SMEs also created new economic opportunities in the region for the local community, which has traditionally relied on subsistence farming and artisanal mining. In fact, 60 percent of those employed by the enterprises say that they were previously involved in artisanal mining. TFM has also established a micro-credit system with Pact and the Trust Merchant Bank to provide access to loans for SMEs to purchase capital. A loan guarantee fund provides guarantees to the Trust Merchant Bank to provide loans at a lower than market micro-finance rate with a 12-month payback period. To date, participating SMEs have met a 100 percent repayment rate. In 2008, TFM will continue to provide business counseling and technical support to the SMEs, expand diversity of businesses, and implement a women’s micro-savings and literacy program. TFM will especially focus on advising the SMEs on how to increase contract diversification and find additional markets in the region. One advantage of these businesses is that they are fairly simple to mobilize to a new location. There may be possibilities for these business owners to start up or move their production to other areas in Katanga where there are construction needs, including at other neighboring mines.

 

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