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Stakeholder Engagement

Engagement with stakeholders around key industry topics such as revenue transparency, human rights, water resources and community development is an integral part of how we conduct our business. We believe that effective stakeholder engagement can help reduce sustainability-related risks and enhance our efforts to achieve an overall positive contribution to society.  The objective of our stakeholder engagement efforts is to cultivate and maintain networks of relationships and integrate feedback into our business planning. 

In late 2011, we hired an external firm specializing in stakeholder engagement to review our practices from international to local operating levels. With this assistance, we are developing procedures to improve our approach to stakeholder identification and interaction. This effort will continue to include community members, NGOs, socially responsible investors and analysts, labor representation, sustainability initiatives, employees and governmental organizations. 

Example Stakeholder Group Interaction Regarding Key Sustainability Challenges

Artisanal Mining

Academia

Conduct research and baseline studies of artisanal mining networks

Customers

Site-level customer audits regarding product control at TFM

Governments

Communications regarding security-related risks, including promotion of the Voluntary Principles on Human Rights

Local Community (including artisanal miners)

Education programs in communities regarding risks associated with mercury use

Community Engagement and Development

Academia

Arizona State University Lodestar training program for community capacity-building

Foundations/Trust Funds

Funding, governance and sustainable investment decision support

Governments

Engagement with the Company regarding long-term capacity building in education, healthcare and economic development

Local and Regional Communities (including Indigenous Peoples)

Development of a Native American Engagement Program in the U.S. focused on economic development, water resources, women’s initiatives and educational opportunities

Investment Community

Briefings on our social development programs

Workforce

Hiring and training local community members, including prioritization of indigenous peoples

NGOs

Active participation and social commitments through groups such as the  Clinton Global Initiative

Suppliers

Identification and development of local suppliers

Corruption

Governments

Promotion and implementation of the EITI

Workforce

Anti-corruption training and awareness programs

Suppliers

Communications on expectations of proper business conduct

Energy and Greenhouse Gases

Governments

Coordination on renewable energy opportunities, including a significant hydropower project in Indonesia

NGOs

Active participation in the Carbon Disclosure Project (CDP) since reporting year 2006

Suppliers

Coordination on technological advances in mobile and stationary equipment used in metals mining and processing

Health & Safety

Governments

Interaction with regulators, including operational inspections

NGOs

Implementation of the ICMM’s Fatality Prevention Initiative

Workforce (including unions)

Workforce training and outreach regarding safety performance expectations

Labor Relations

Governments

Engagement and coordination with governmental bodies regarding status and resolution of labor disruptions

Investment Community

Updates via teleconferences, webcasts and in-person meetings

Local Community

Communications regarding impacts of labor unrest in local communities, including impacts to community funding mechanisms and programs

Workforce (including unions)

Ongoing engagement regarding schedule, wages, benefits, worker conduct and safe workplaces

Public Health

Governments

Engagement regarding long-term capacity building for local and regional healthcare services and infrastructure

Local Community

Communications regarding health risks and provision of healthcare services

NGOs

Formal partnerships to implement local public health programs

Workforce

Communications regarding health risks in areas where we operate

Security and Human Rights

Customers

Engagement regarding product control at TFM, including site-level sustainability audits

Governments

Engagement regarding security and human rights training/socialization of Company policies and programs with government bodies and government-provided security

Local Community

Human Rights training and communications regarding grievance mechanisms

Investment Community

Program updates via teleconferences, meetings and email information exchange

NGOs

Active promotion and involvement in the Voluntary Principles on Security and Human Rights

Workforce (including security contractors)

Human Rights training programs and communications regarding grievance mechanisms

Tailings and Waste Rock Management

Governments

Engagement regarding regulatory obligations and closure planning

Investment Community

Correspondence via teleconferences, meetings and information exchange particularly regarding controlled riverine tailings management at PTFI

NGOs

Active participation in organizations such as INAP

Water Impacted

Governments

Engagement regarding regulatory obligations and long-term projects to protect or enhance water quality

Local Community

Coordination on projects to protect or enhance access to clean water for populations near our operations

NGOs

Active participation in the CDP Water Disclosure since reporting year 2010

Water Supply

Governments

Coordination with the Company on strategies concerning long-term water supplies

Local Community

Engagement with Community groups, including indigenous peoples, on mutually beneficiation and long-term options for water supplies

NGOs

Active participation in the CDP Water Disclosure since reporting year 2010.


The table below is a broader presentation of our engagement activities with stakeholder groups.

Stakeholder Groups

Typical Areas of Interest

Typical Methods of Engagement

Communities

Communities near our operations have important needs and interests associated with our operations.

• Employment opportunities
• Economic development
• Education
• Health and safety
• Environmental protection
• Mine closure

• Public community engagement forums (e.g., Community Partnership Panels)
• Community Liaison Officer programs
• Formal governance structures of community trust funds
• Media placements
• Specific meeting requests

Customers

We sell our copper products primarily to smelters, wire and cable fabricators, and brass mills.  Gold is primarily sold as a component of our copper concentrate.  We sell molybdenum to steel mills and specialty markets.  Cobalt from our Tenke Fungurume operations is sold to specialty markets.

• Quality products
• Delivery commitments
• Regulatory compliance
• Product stewardship
• Sustainability programs

• Daily interactions with our sales group
• Customer satisfaction surveys
• Operations tours
• Product information sheets
• Supply chain sustainability surveys

Employees and Contractors

At December 31, 2011, we employed a diverse workforce of approximately 31,800 employees and 27,800 contractors across our operations.

• Health and safety
• Operational change
• Workforce management
• Alignment with local community interests
• Training and career development

• Health and safety programs and initiatives
• Timely site-level dissemination of Company news and events
• Two-way communications with supervisors and management
• Direct home mailings
• Principles of Business Conduct hotline
• Company intranet

Governments

We work with governments at national, regional and local levels.

• Resource access
• Environmental protection
• Taxes and royalties
• Economic development
• Water rights and supply
• Workforce development

• Interaction with Company management
• Regulatory processes and requirements
• Governmental representation at stakeholder engagement forums
• Participation in trade associations

Indigenous Peoples

We engage with the indigenous Papuans in Papua, Indonesia; Native Americans in the United States; and the communities of Alto Loa (Chile’s First People).

• Human rights
• Land rights
• Partnerships
• Education
• Employment and career development
• Cultural heritage

• Local leadership by tradition or election
• Training and dialogue
• Workshops and meetings
• One-on-one interactions
• Community development programs

 

 

Non-governmental Organizations (NGOs)

We interact regularly with NGOs (international and local) focused on a broad range of sustainability topics.  These groups frequently include development agencies, educational institutions, civic organizations, environmental protection groups and groups interested in issues related to human rights.

• Health and safety
• Economic development
• Human rights
• Environmental performance
• Corporate governance
• Ethics

• Formal partnerships
• Research and studies
• Inquiries and requests for information
• Project proposals

Shareholders and Financial Community

We regularly work with institutional investors, securities analysts, socially responsible investment (SRI) analysts, lenders, rating agencies and the financial media.

• Financial performance
• Corporate governance
• Access to capital
• Environmental performance
• Health and safety
• Human rights
• Business risk

• Public news releases and presentations
• Public filings with the Securities and Exchange Commission
• Public presentations to the investment community
• Communications between our Sustainable Development department and SRI analysts
• Annual meeting of stockholders/solicitation of proxies
• Sustainability reporting
• Corporate Social Responsibility surveys

Suppliers

Our suppliers range from local businesses near our operations to large, international companies.

• Supplier requirements
• Long-term business relationships
• Agreement terms

• Contract administrators
• Community development representative interaction with local businesses
• Entrepreneurial programs

Unions

Employees at certain operating sites are represented by unions according to applicable agreements.

• Wages and benefits
• Work schedule
• Health and safety
• Job security

• Communications with labor representation on workforce related topics per agreements



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