Maria Consuelo Araujo CEO Gran Colombia Gold
Transcription
Maria Consuelo Araujo CEO Gran Colombia Gold Latin American Mining: Government, Investors and Communities Aligning for Success November, 2012 1 EXPECTATIONS Government • • • • • • Progress Sustainable development Royalty payments & Taxes Economic growth Foreign direct investment Responsible mining November, 2012 Investors • • • • • • Security Growing production Permitting Fair taxation Clear regulations Legal & contractual stability Communities • • • • • • Employment Participation in decision-making Social Investment Social responsibility Sustainable programs Local entrepreneurship 2 LATAM-POLITICAL TRENDS Centre / Centre Right Centre left Socialist left November, 2012 3 THE LATIN-AMERICAN TIGERS Colombia & Peru 2011 growth, Peru 6.9% Colombia 5.9% Improvements in political stability Several resources in energy and mining Economic growth in next 5years ~ 5% - 7% “Youthful population, Growing middle class, Relative low debt, Dynamic Economic Expansion”* A MARKETWATCH special report by The Wall Street Journal (July, 2012)* November, 2012 4 THE GOVERNMENT’S ROLE • Maintaining stable regulations • Clear rules of the game • Encourage open international trade and free markets • Promote a legal environment and formalization of the small miners • Competitive tax environment • Focus on a long-term November, 2012 FAIRNESS & STABILITY 5 RANKING OF COUNTRIES FOR MINING INVESTMENT Fiscal Regime Economic System Political System Social Delays in Steady Corruption Conflicts Permitting Currency Source: Behre Dolbear Group 2012 ranking of countries for mining investment - where “not to invest”. November, 2012 6 LATIN AMERICA IS EXPECTING A BOOM IN INVESTMENT $ 250 Billion Expected to be Invested in Mining Projects in Latin America in 2020 Argentina $ 10B Brasil $ 58B Chile $ 75B Colombia $ 22B Ecuador $ 7B México $ 13B Panamá $ 9B Perú $ 56B Total $ 250B *Elaborado por www.cesco.cl a partir de diversas fuentes (Ibram, SNMPE, Asomineros, Camimex, Secretaría Minería Argentina) CESCO (Centre of studies of copper and mining, Chile)* November, 2012 7 INCREMENTAL INVESTMENT IN EXPLORATION November, 2012 8 MILA: INTEGRATED MARKET IN LATIN AMERICA Integrated Market: Integration of Equity Markets in Chile, Colombia and Peru The integration provides: greater supply of securities, issuers and larger sources of funding 1st in the region in number of issuers 2nd largest in market capitalization 3rd in terms of trading volume after Brazil and Mexico November, 2012 9 INVESTOR: REASONS TO INVEST IN LATIN AMERICA Continually improving investment climate Expand free trade zones Network of free trade agreements with other economies November, 2012 10 INVESTOR: REASONS TO INVEST IN LATIN AMERICA Investor Protection RANKING OF INVESTOR PROTECTION Security Overall ease of doing business Source: The Word Bank - Doing Business in South America November, 2012 11 SUSTAINABILITY Community and Government Relations Stakeholders Strong Engagement Government Partnership License to Operate Community partners Business benefit Social benefit Continuous Improvement November, 2012 COMMUNITIES Building reputation – The Gran Colombia Model Communities • Identify interests and needs Government Media • Strong communications • Team work Employees Investors • Long term perspective • Building trust and confidence Small Miners November, 2012 Suppliers 13 INVESTING IN THE COMMUNITY Good Neighbours Open Communications Water Education Leadership & Entrepreneurship Mercury Global Initiative Including Small Miners Health InfraStructure Transparency & Human Rights Contributions November, 2012 14 MINING THAT MAKES THE DIFFERENCE Community Relations Process What are my requirements / guidelines for business? Who is our community and what are their needs? Surveys / Assessment Tool / Consultation needs Are our external affairs activities aligned? Is there a gap? Guide / action / spider diagrams / Determine priorities Evaluation of CR programs Do we have any risk scenario? Risk review Develop a External Affairs and CR Plan Plan to close the gap Secure the support of the company / Implement Annual budget Make annual reviews to continuous improvement November, 2012 Process evaluation 15 COLOMBIA Canada’s new best friend 5th largest economy in Latin America Steadiest GDP growth in Latin America 1970-2007 $8.88 in infrastructure investment through 2012 Stable democracy, 70% government approval rating (1) Most secure Latin American country to do business(2) Ranked 7th in Countries for Mining investments(3) 2nd best investor protection in Latin America (Forbes) 1. Source: Canaccord Genuity: The Colombian quarterly 2.World Bank, Doing Business 2010 and 2011 Reports 3. Behre Dolbear Group 2012 November, 2012 16 GRAN COLOMBIA GOLD POSITIVE AGENT OF CHANGE FOR COMMUNITIES Paid Pension Liabilities to Frontino’s employees of US$203 million Contributed ~US$2 million to fund Phase II construction of the El Llano Hospital, school and other community projects Follow Global Compact principals in Corporate Social Strategy Follow IFC guidelines for Marmato Resettlement Community attention offices opened Legalized and granted land ownership to more than 800 families A member of CBSR Canadian Business for Social Responsibility November, 2012 Using consulting firms of high reputation: BSD Consulting and Social Capital Group 17 POSITIVE AGENT OF CHANGE FOR COMMUNITIES Third Party Miner Contracts Third Party Miner Contracts Agreements with 20+ third party miner groups Outcomes Mine narrow, high grade veins Environmental benefits – GCM controls processing, reducing mercury use GCM pays for recovered Au at spot price Employment – expanded workforce Contractors manage miners & fund own costs Improved health & safety GCM processes ore and sells gold & silver Workers receive health & pension benefits GCM provides health & safety training Government receives tax & royalties November, 2012 www.grancolombiagold.com November, 2012 21
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