A titanium pigment mine in Madagascar is a case of success in Rio Tinto’s stakeholders engagement strategy.
“To Rio Tinto, globalization is an opportunity to combine needs and engage with the communities where we operate. We do acknowledge the importance in hearing, understanding and respecting the beliefs of those that do not understand or share our vision. It takes time and resources, but it is worth it. If well done can reduce risks and allow us to make business and develop projects in nations that, up to some time ago, were against international investments and free trade.” Charlie Lenegan, Director in charge, Rio Tinto.
In a period of 20 years, the company invested US$750 million, studied technical, environmental and social impacts, and engaged in local agreements and partnerships to start exploration. Besides the mandatory compensations to directly affected families, the company also tried to became part of local communities — since the mine would be explored for at least 40 years more.
To engage with the community Rio Tinto:
- Created an agreement with local government, according to local laws, culture and tradition, to co-manage local renewable resources with the community
- Sponsored small and medium local business, supplying micro credit
- Contributed to the development of skills for entrepreneurs and local governments groups
- Developed partnerships with environmental groups looking for mitigation of mine’s impacts
In 2004, the company created a Biodiversity Corporate Strategy implemented with partners and the community. From 2005 onwards, the strategy aims to fulfill the company’s commitment to create a positive impact in biodiversity, wherever the company is.
See the complete report "Stakeholder Engagement and the Board" at:
Translated by Patricia Ostwald