SUSTAINABILITY REPORT 2012

Transcription

1 SUSTAINABILITY REPORT 2012

2 CONTENTS Ceo Letter 1 First Quantum at a Glance 4 Sustainability at First Quantum 6 Vision 8 Governance and Risk 12 Economics 13 Labour 16 Education and Human Development 22 Environment Enviromental Expenditure 46 Social 47 Health 48 Agriculture 56 Education 61 Enterprise Development 64 Infrastructure 68 Community Social Expenditure 80 Corporate Directory IBC

3 FROM OUR CEO Dear Stakeholders, As Chairman and Chief Executive Officer, I regularly visit our worldwide operations and have seen firsthand how our commitment to sustainability and Corporate Social Responsibility (CSR) initiatives has made a positive difference in the lives of our employees and the communities in which we operate. This report is a record of our CSR performance and showcases how best practice is integrated into the way we operate. First Quantum s most significant CSR achievement continues to be our economic contribution to our host communities. In 2011, according to data available, First Quantum contributed 8.6% and 5.2% of the gross national income of Zambia and Mauritania respectively. Our economic contribution is much higher than our direct investment when multiplier effects are taken into account. Philip K.R. Pascall Our most notable CSR highlights in 2011 include: A substantial social investment of approximately US$35.63 million or 6% of net earnings after tax, a 230% increase on social spend in Over 8,100 jobs provided including 1,196 new jobs due to expansions and project development with substantially more jobs through the multiplier effect. Significant resources were invested in education and training programmes focused on our employees and members of the communities in which we operate to provide job skills for life. New education initiatives were established, including international and local graduate training schemes, apprenticeships, setting up of trades schools and support of a mining education research programme at Camborne School of Mines. Ongoing support was provided for Public Private Partnership initiatives on malaria control and our successful HIV programmes were extended to new projects in Zambia. A consistently low lost time injury frequency rate (0.22) and reduction in severity rate (3.4) with zero fatalities at our operations. The health and safety of our employees is a top priority and we continuously strive to reduce lost time injuries and maintain zero fatalities. No serious Level 3 environmental incident was reported in 2011, but 290 minor Level 1 and 9 moderate Level 2 incidents were reported across the Company s operations. All incidents were investigated F Q M S U S T A I N A B I L I T Y R E P O R T

4 OUR ECONOMIC CONTRIBUTION IS MUCH HIGHER THAN OUR DIRECT INVESTMENT WHEN MULTIPLIER EFFECTS ARE TAKEN INTO ACCOUNT and reported on, remediation measures implemented and procedures put in place to minimize risk of recurrence. The conservation farming programme was expanded at Solwezi and Trident in Zambia, with 322 participating farmers with an average fourfold increase in maize crop yields. First Quantum commissioned four electric shovels and commenced construction of a trolley assist system at Kansanshi mine for 35 electrically powered haul trucks, which will significantly reduce diesel consumption and resulting CO 2 emissions. In 2011, approximately 81% of the electricity bought by the Company was generated in hydro-electric power stations. We know the success of First Quantum depends on safe and healthy workplaces, sound environmental practices, supportive communities and solid financial performance. This is the basis of our balanced and dedicated approach to CSR. While the first part of this year s sustainability report reaffirms our overarching corporate approach to CSR, the second part highlights our CSR performance with respect to specific projects and initiatives in the areas of economics, labour, environment and social. As in previous years most activities reported on are in countries where we have been operating longest or have the largest operations, specifically Zambia and Mauritania. Peru, Australia and Finland will feature more prominently in future reports. As you review this report, I hope you will agree that we are making steady progress towards sustainable growth and sustainable communities. I look forward to sharing future updates with you on new and existing CSR initiatives at all our sites. Yours truly, Philip K.R. Pascall Chairman of the Board and Chief Executive Officer 2 F Q M S U S T A I N A B I L I T Y R E P O R T

5 F Q M S U S T A I N A B I L I T Y R E P O R T

6 First Quantum was established in 1996 by Philip Pascall, Martin Rowley and Clive Newall to develop the Bwana project in Zambia. Since then, it has grown into a significant international mining and metals company engaged in extensive mineral exploration, development and mining. With operations in Zambia, Mauritania, Peru, Australia and Finland, First Quantum produces LME grade A copper cathode, copper in concentrate, nickel in concentrate, gold and sulphuric acid and employs more than 8,100 people. FIRST QUANTUM AT A GLANCE Employees 8,100 SCALE OF THE ORGANISATION (2011) Tonnes copper 265,576 Tonnes nickel 5,666 Ounces gold 175,225 cu AU Ni Revenue USD 2.58 billion PRIMARY PRODUCTS Copper, gold, nickel and sulphuric acid Cu, Au, Ni, H 2 S0 4 NATURE OF OWNERSHIP/ LEGAL FORM Public company with full listing on the Toronto and London Stock Exchanges MARKETS SERVED Products sold mainly via international metals traders but also direct to customers 4 4 F QF M Q M S US SUTSAT IANI AN BAIBLIILTI Y T Y R ERPEOP RO T R T

7 headquarters Vancouver, Canada finland Kevitsa Mine mauritania Guelb Moghrein Mine peru Haquira Project zambia Kansanshi Mine Bwana Mkubwa Trident Project australia Ravensthorpe Nickel Operations F Q M S U S T A I N A B I L I T Y R E P O R T

8 SUSTAINABILITY AT FIRST QUANTUM First Quantum s operating units are managed on a decentralised basis and management is given the flexibility to find cost effective solutions for their respective operations. This means there is some variation in how CSR is managed, with some operations opting to appoint full time CSR specialists and others taking on the responsibility themselves. First Quantum is however consistent in measuring its progress towards achieving its CSR goals, which follows the process outlined below: The needs of all our critical stakeholders customers, shareholders, employees, communities and various levels of government and the environment are incorporated into our corporate strategy. Strategic leadership is established by the executives and board and operating managers are charged with the implementation and management of initiatives. At an operations level, managers leverage their knowledge of engineering and science to ensure the most effective solution to mitigate any negative social and environmental consequences and implement enhancement measures. First Quantum has a bias for action and results are a high priority. Management is often involved in community projects that improve the quality of people s lives and assist the Company in becoming a more productive business, such as road improvement, clean water for the workforce and communities and improvement of medical services, amongst others. First Quantum does not compromise on integrity. We do not transgress our corporate ethics and in Africa, where corruption can be an issue, we stand our ground to ensure fair and honest business conduct. Ultimately, the Company s style is underpinned by a focused and can-do culture, which has assisted greatly in the implementation of its CSR initiatives. Guiding principles First Quantum s CSR strategy is informed by the national laws of its host countries. In addition, the Company has aligned itself with several externally developed Charters and Sets of Principles, including the Universal Declaration of Human Rights (2007); the Voluntary Principles on Security and Human Rights (2007); Equator Principles (2007); the International Labour Organisation s Declaration of Fundamental Principles and Rights at Work (2008); and the Extractive Industries Transparency Initiative (2008). 6 F Q M S U S T A I N A B I L I T Y R E P O R T

9 F Q M S U S T A I N A B I L I T Y R E P O R T

10 VISION Through sustainable development practices, First Quantum contributes to making the countries it operates in attractive investment destinations. 8 F Q M S U S T A I N A B I L I T Y R E P O R T

11 MISSION Through economic viability, First Quantum enhances social development and mitigates negative environmental impact. F Q M S U S T A I N A B I L I T Y R E P O R T

12 CORPORATE SOCIAL RESPONSIBILITY VISION With First Quantum s operating mines mainly situated in Africa, its success is largely linked to the fortunes of the continent. This is why the social and economic wellbeing of the continent forms an important part of the CSR vision. In addition, this CSR vision applies to the Company s new operations in Australia, Finland and its development project in Peru. Corporate Social Responsibility strategy We are committed to taking positive steps towards CSR through: Economically viable investments Technically appropriate operations Environmentally sound practices Socially responsible actions This is achieved by: Implementing sound corporate governance practices Operating in a responsible manner towards employees through fair and equitable practices managed with a well developed and implemented HR system Caring for the wellbeing of our employees by implementing Health and Safety management systems based on the OHSAS/BSI standard Minimising environmental impacts through implementation of an ISO based environmental management system Reducing negative health impacts through community development and HIV/Aids programmes Preventing and reducing health related impacts relating to First Quantum s activities by managing environmental risks at source Monitoring potential risks posed by security contractors employed by the Company s operations Transparent reporting on operations and activities Synergy of Environmental, Health and Safety, Human Resources, Community Development and Security Systems to enhance our CSR programmes Corporate Social Responsibility focus areas: First Quantum s CSR focus relates to five main areas namely governance, economics, environmental, social and labour. Projects that fall within these focus areas will be recorded throughout this report. Governance and Risk Majority independent board members Identification and management of risks Monitoring and auditing our Code of Conduct Implementation of external codes of practices 10 F Q M S U S T A I N A B I L I T Y R E P O R T

13 Economics Profitable business Local job creation Contribution to fiscal and foreign exchange income Access to mineral and capital resources Labour Training and development Career development for talent retention Safety and occupational health Wider community health Staff motivation Environment Impact assessment and mitigation management Management procedures and systems Scarce resource efficiency management Biodiversity management Effluent emissions management Social Effective community engagement and impact assessment Facilitating broader poverty alleviation Human rights management Social infrastructure development F Q M S U S T A I N A B I L I T Y R E P O R T

14 GOVERNANCE AND RISK MANAGEMENT First Quantum has taken the following steps to practice good governance and risk management: Maintaining and enforcing an Employee Code of Conduct that has been internalised throughout the organisation, in which the Company clearly outlines the behaviours it expects from its directors and employees Implementing a sustainable business through CSR Developing a wide range of risk management methodologies and deploying resources to undertake risk management in the Company s operations Implementing and maintaining CSR policies and monitoring mechanisms to track performance The Board of Directors (the Board ) believes that sound corporate governance practices are essential to the wellbeing of the Company and its shareholders, and that these practices should be reviewed regularly to ensure they are appropriate. The Board oversees the affairs and business of the Company. The Board s principal responsibilities are to monitor and evaluate management, to oversee the conduct of the Company s business, to set policies appropriate for the business of the Company and to approve corporate strategies and goals. The Board is expected to carry out its mandate in a manner consistent with the fundamental objective of enhancing shareholder value. In May 2012 the Board delegated responsibility for CSR to the Environmental, Health & Safety and Corporate Social Responsibility Committee ( EHS&CSR Committee ). The EHS&CSR Committee oversees the Company s CSR strategies and programmes and considers and recommends the implementation of best practices in CSR. 12 F Q M S U S T A I N A B I L I T Y R E P O R T

15 ECONOMICS First Quantum is sensitive to the socio-economic issues that are prevalent in the countries within which it has established its operations. The Company endeavours to make significant social contributions to all of the communities it operates in, but most notably in Zambia, Mauritania and Peru, where poverty is widespread. Importantly, First Quantum s ethos is to enrich the environment and communities in which it operates. Zambia In Zambia, First Quantum s Bwana Mkubwa mine near Ndola was closed in 2009, but First Quantum continues to address environmental issues relating to the process plant and tailings storage facilities in the area. The Company s Kansanshi mine, which is located 8km north of Solwezi, the capital of the North-Western province, is one of the oldest historic mines in Zambia. First Quantum acquired 80% of Kansanshi mine in 2001 (20% owned by ZCCM as Zambian partner) and construction of the new mine began in It produced its first copper cathode in March The mine has created about jobs for local people and contractors, many of them from the surrounding Solwezi District. The positive economic impact on the local population and businesses has been immeasurable. First Quantum acquired Kalumbila Minerals Ltd also in the North-Western province in February Kalumbila Minerals owns five mining licenses, which include the copper-sulphide Sentinel Deposit and the Enterprise (nickel) and Intrepid (copper) targets. The Environmental and Social Impact Assessment for the Sentinel Deposit was approved by the Zambia Environmental Management Agency (ZEMA) in July Between 2005 and 2011 Zambia experienced GDP growth of more than 6% per annum. In 2011 the economy grew by 6.7% compared to 7.1% in Despite this annual growth, Zambia continues to experience high poverty rates, particularly in rural areas. F Q M S U S T A I N A B I L I T Y R E P O R T

16 First Quantum regards the economic contribution it makes to its host communities as its most significant CSR achievement in Zambia. The company contributes 8.64% of gross national income to the total economy. The Company s economic contribution is however much higher due to the multiplier effects of mining. Although the communities within which First Quantum operates Solwezi and Ndola are economically deprived areas, the mines operations have made an enormous difference to people s lives in these areas. ZAMBIA Economic Value Added (EVA - US$ millions) 588 1,107 1,351 Gross National Income (GNI - US$ millions) 13,263 13,831 15,631 Percent Direct Imapct on Economy - % 4.43% 8.00% 8.64% Salaries and Wages (US$ millions) M a u r i t a n i a Guelb Moghrein mine in Mauritania is wholly owned by First Quantum subsidiary, Mauritanian Copper Mines, and is situated near Akjoujt, a town located in Inchiri Province, which is 250 kilometres northeast of the country s capital, Nouakchott. Mining at Guelb Moghrein commenced in April 2006 and commissioning of the mine s copper flotation plant began in July Production commenced in October 2006 and by 2009, the mining rate was increased to 3.8 million tonnes of ore per year. The mine currently employs 1,541 employees and its economic contribution to the area is significant, with its operations contributing 5.17% gross national income to the total economy (see table below). Mauritania is located in the Sahel region of West Africa. It has a population of about 3.1 million and is one of the world s least developed countries. According to an Oxford Poverty and Human Development Initiative Mauritania Country Briefing in December 2011, 40.7% of Mauritanians live in severe poverty. Mauritania has extensive deposits of iron ore, which account for almost 40% of total exports. After shrinking by 1.2% in 2009, Mauritania s GDP grew by 4.9% in 2010 and 5.1% in This performance is attributed to, amongst others, the implementation of the public finances reform programme agreed with the International Monetary Fund in 2006, combined with a substantial increase in international minerals prices. First Quantum s sustainable development initiatives in Inchiri Province in 2011 focused on health, education, access to water, waste management, agriculture and infrastructure development. In addition, it sponsored a number of sporting and cultural events. MAURITANIA Economic Value Added (EVA - US$ millions) Gross National Income (GNI - US$ millions) 2,688 3,568 3,541 Percent Direct Imapct on Economy - % 4.76% 4.54% 5.17% Salaries and Wages (US$ millions) F Q M S U S T A I N A B I L I T Y R E P O R T

17 Peru First Quantum s Haquira Copper Project is located in the Apurimac Region of south central Peru, one of the more remote regions of the country. The acquisition of the Antares Minerals and its principal asset, the Haquira copper deposit, was finalised in late 2010 and a drill programme commenced in February Peru is an emerging market-oriented economy that enjoys a relatively high level of foreign trade. As of 2011, Peru was identified as one of the fastest growing economies worldwide due to an economic boom during the 2000s. Abundant mineral resources are found in the mountainous areas and the extractive sector accounts for more than 60% of Peru s total exports. The level of inequality in the country has decreased steadily since 2004, but in 2011 about 28% of the population remained below the poverty line. First Quantum is committed to maintaining and developing its relationships with all stakeholders, including the local communities. In 2012 it will double the strength of its Community Relations team by actively seeking out and recruiting well qualified and experienced Peruvian Community Relations Specialists, who are fluent in the local language, Quechua. The Company understands the importance of maintaining a permanent dialogue process in an open and transparent manner with communities with a view to building solid relationships that will benefit both the communities and the project. In addition, First Quantum has reached further afield to Regional and National stakeholders to develop relationships that will augment the sustainability of the project. Australia First Quantum finalised the acquisition of the Ravensthorpe Nickel Operations in February The mine is located in Western Australia, 550km southeast of Perth. The project s three deposits are estimated to contain sufficient reserves to support a mine life of over 30 years. Commercial production at the mine commenced in late 2011 and when fully operational, the mine is expected to have a workforce of about 500 employees. Ravensthorpe s average annual production of nickel metal is estimated at approximately 39,000 tonnes for the first five years. Australia enjoys a highly developed and modern market economy dominated by a service sector, which represents about 68% of GDP. The country s growth is largely dependent on growth in the mining sector, which represents about 10% of GDP and the mining-related economy about 9% of GDP. Social responsibility initiatives undertaken in Australia in 2011 were mainly focused on a Southern Noongar/Wagyl Kaip Aboriginal Agreement and a few community support programmes. Finland First Quantum s Kevitsa Mine is located in Sodankylä, Lapland. The Kevitsa deposit is a large, but low-grade ore body consisting of iron, nickel, and copper sulphides with locally high concentrations of platinum, palladium and gold. The Kevitsa Mine was granted a permit to extract 5-million tonnes of ore per annum at the Kevitsa site on 2 July The permit covers surface mining, crushing and grinding, processing of the ore to produce nickel and copper concentrates and depositing the resulting waste. Construction work on the mine began in the summer of 2010 with the aim of achieving commercial production in mid The reindeer herding area in Finland covers Lapland province and the mine is partly located on one of the reindeer migration routes. The herding area has been divided into 56 reindeer herding co-operatives, which have pastures covering 114,000 km 2, covering 33% of Finland. First Quantum s social responsibility initiatives are mainly focused on compensating for loss of herding ground. F Q M S U S T A I N A B I L I T Y R E P O R T

18 LABOUR OCCUPATIONAL HEALTH AND SAFETY First Quantum implements internationally accepted occupational health and safety standards and procedures throughout its operations. It complies with all national health and safety laws in creating safe workplaces at its operations. Our practices are in line with International Labour Organization (ILO) standards. Key objectives to be achieved by operational areas Build Sensible Health and Safety into the Company s health and safety culture Improve the way health and safety incidents are recorded, investigated and how lessons learnt from internal and external incidents are communicated Improve the way that health and safety performance is measured and monitored Develop leadership skills for managers and front line supervisors to improve health and safety performance Ensure all employees have the appropriate levels of competency to address their health and safety responsibilities Ensure that where the Company contracts work out to other companies, the occupational health and safety risks are properly and satisfactorily addressed First Quantum s Environmental, Health & Safety & CSR (EHS&CSR) Committee meets every quarter to review the EHS performance of the Company s operations. The committee comprises four board members and is chaired by an independent director. The group safety and environmental managers prepare quarterly and monthly reports covering all sites, to keep the committee updated on EHS performance at each site. The reports form the basis for committee discussions and the group safety and environmental managers participate in these meetings either in person or via conference call. Discussions usually cover the following: Ongoing environmental and safety issues across the Company Development and implementation of environment and health and safety systems; environmental and safety statistics for the previous quarter How to further improve environmental, health and safety performance Health of the workforce and communities affected by operations Project permitting status CSR programmes and community relations 16 F Q M S U S T A I N A B I L I T Y R E P O R T

19 A safety meeting is conducted at the First Quantum s Trident Project forestry site in Solwezi District, Zambia. Risk assessment has been conducted for every activity at the site and all equipment incorporates built-in safety features. Equipment operators undergo internationally recognised training to ensure optimal and safe usage of tools. F Q M S U S T A I N A B I L I T Y R E P O R T

20 Safety management The mining industry is a potentially hazardous working environment if care and attention is not given to addressing the risks. Open pit mining activities include: drilling and blasting; loading, hauling and storage of waste materials and ore using large mining fleets; and the operation of heavy equipment workshops. Processing plants and facilities include: mills and concentrators; electro-winning; acid plants; leach plants; gold plants; and tailings dams. All of these mine components present their own safety risks which must be assessed and the necessary management systems and procedures put in place to create a safer work place. In pursuit of zero fatalities First Quantum s operations use safety management systems based on the BSI OHSAS Standard. The systems are subject to continuous review and development. The overall aim is to develop a safety management system that is both practicable and straightforward to implement in order to achieve the objective of reducing risk and zero fatalities. In 2011, First Quantum continued with the implementation of this programme, which contributed to the reporting of zero fatalities in 2011 and a continuing downward trend in accident severity rates. The following table shows the Company s safety performance from 2006 to Site Lost Time Injuries Bwana Lonshi Kansanshi Guelb Moghrein Frontier Kolwezi Kevitsa Ravensthorpe Exploration Roads Division Trident Project Totals Copper Production tonnes 183, , , , , ,576 Indicator First Quantum Group LTIFR Severity Rate Fatalities Guelb Moghrein began commercial operations in October Frontier began commercial operations in November 2007 and ceased in August Development of the Kolwezi project began in November 2007 and ceased in The Kevitsa Nickel Copper Project was acquired in June 2008 and was under construction in The Ravensthorpe Nickel Operation was commissioned in LTIFR = LTI x / hrs worked 7. Severity rate = days lost x / hrs worked Common injuries The most common non-lost Time Injuries across the group involve cuts and bruises to the hands. Lost Time 18 F Q M S U S T A I N A B I L I T Y R E P O R T

21 The use of personal protective equipment (PPE) in the form of safety boots, gloves, masks, safety glasses, overalls and hard hats is required at First Quantum s open pit mine sites around the world. F Q M S U S T A I N A B I L I T Y R E P O R T

22 Employees at First Quantum s Kansanshi Mine in Zambia are regularly tested for silicosis and TB and encouraged to undergo voluntary counselling and testing (VCT) for HIV/AIDS. The various tests are conducted by on-site radiographers, doctors and nursing staff four times a year. Injuries (LTIs) generally involve more severe injuries sustained as a result of accidents involving heavy mobile mining equipment, lighter vehicles, slips, trips and falls, and trapping of body parts. Near miss incidents are recorded and analysed to ensure preventative measures are in place to avoid future LTIs. Despite the annual increase in number of employees at First Quantum s operations, the number of LTIs across the Company has remained relatively low. Employee health Employee health and occupational illness prevention is a key focus area for First Quantum. In 2011, the company routinely monitored occupational exposure to gas, dust and noise. In conjunction with the monitoring programme, there has been a drive by safety staff to ensure employees wear the correct personal protective equipment (PPE) to mitigate any potential exposure. Health risks The key potential occupational health risks are hearing loss at all operations and respiratory disease due to the potential presence of fibrous amphibole material in the ore at Guelb Moghrein in Akjoujt, Mauritania. The noise from mining and process equipment used at mine sites may, over an eight-hour working day, exceed the allowable 85 decibels. Employees are provided with appropriate ear protection to prevent hearing loss. Guelb Moghrein Large-scale mining at Guelb Moghrein has taken place intermittently since the 1960s and there have been no 20 F Q M S U S T A I N A B I L I T Y R E P O R T

23 reported cases of asbestosis in the former workforce or local community. Guelb Moghrein introduced strict control measures to minimise worker exposure to fibrous amphibole material (FAM), including the enforcement of wearing of correct PPE. FAM levels across the mine site and in communities are monitored with reference to the Australian Standard of 100 fibres and 5 fibres per litre of air respectively. The risk of developing silicosis is extremely low at all of our operations due to the open nature of the mining operations and the relatively low level of silica oxide in the ore and waste materials. Hygiene awareness First Quantum encourages improved hygiene amongst its employees by conducting hygiene awareness campaigns, including the posting of personal hygiene information on notice boards, in eating areas, clinics, rest rooms and change houses. Regular medical examinations All prospective employees undergo pre-employment medical examinations and annual medical examinations thereafter. Importantly, regular medical examinations are required by law in Zambia, Mauritania, Peru, Australia and Finland. Employees who do not report for work or are sent home due to illness are required to consult a doctor and obtain a doctor s note indicating the number of days off work. The employee cannot return to work until the doctor deems him or her fit for work. F Q M S U S T A I N A B I L I T Y R E P O R T

24 EDUCATION AND HUMAN DEVELOPMENT The FQ M Way As one of the fastest growing mining companies in the world, First Quantum believes its workforce is its most important asset. All team members whether they work pit side, plant side, in finance, training or sales are expected to use their heads to achieve the best results quickly. In this respect, the Company has identified three behaviours Bolder, Smarter and Driven which underpin how work should be conducted and goals achieved. First Quantum has made a conscious decision not to be hindered by excessive bureaucracy and encourages its people to think on their feet. To equip its employees with the necessary skills and savvy to do this, First Quantum invests in training and development in the form of on-the-job training, technical training, supervisor training, scholarships and local and international undergraduate and postgraduate programmes. Developing talent Scholarships Location: Zambia, Mauritania Spend: US$ 42,500 (Mauritania) US$ 319,950 (Zambia) and US$ 150,000 (Peru) First Quantum adopts different approaches towards developing individuals. One strategy is to sponsor talented school leavers to pursue university studies either locally or further afield. These young people are then given the opportunity to gain work experience at First Quantum sites during their vacations. Graduate Development Programmes First Quantum employs talented university leavers at its various mine sites, who are then enlisted onto an International Graduate Programme or Local Graduate Programme, depending on their performance during the assessment process. Local Graduate Programme Location: All mine sites Spend: US$ 157,500 The two-year Local Graduate Programme is aimed at local university graduates from the countries within which First Quantum operates. Graduate development under the Local Graduate Programme is restricted to the site where the individual is employed. Depending on their performance on the programme, these people may later be enlisted onto the International Graduate Programme. 22 F Q M S U S T A I N A B I L I T Y R E P O R T

25 t e s t i m o n i a l First Quantum experience expands outlook for young Zambian metallurgist Being part of the International Graduate Programme at First Quantum has opened up the world for young metallurgist, Barnabas Ng ambi. My experience here has expanded my outlook. I ve learned about different cultures and ways of doing business. The First Quantum Way allows for a flexible approach to the complexity of the mining process and I ve decided to adopt Bolder, Smarter, Driven as my personal credo, he says. After completing his studies in metallurgy at the University of Zambia, Ng ambi joined First Quantum s two-year International Graduate Programme in September 2011 at its Kansanshi mine in Solwezi District, Zambia. Born in Lusaka, Ng ambi lived in Botswana from 1991 to 2003 before returning to Zambia to attend high school and university. Zambia s status as a largely mining economy informed his decision to study metallurgy. He was also inspired to pursue these studies by his uncle and mentor, who is a civil engineer. Ng ambi says the programme involves on-the-job training at Kansanshi mine and Guelb Moghrein in Mauritania. The training helps me link the theoretical knowledge I gained while studying the practical application. Since joining the programme, I ve gained technical experience, spent time with operators doing shift work, worked in the laboratory and acquired insight into how senior management plans and resolves issues, he says. Not one to baulk at a challenge, Ng ambi advises young people to take education seriously. I m not saying it s an easy path, but the rewards can be sweet. It s easy to be discouraged by domestic and economic challenges, but these should not be seen as insurmountable problems. I believe they should be seen as a reason to try even harder, he says. Professionally, Ng ambi says he s on an upward growth path. Work-wise, I want to learn and grow more. First Quantum is definitely a growing place and I d like to find my niche in the industry. Personally, I would like to travel and get exposure to other people and different parts of the world, he says. Barnabas Ng ambi F Q M S U S T A I N A B I L I T Y R E P O R T

26 t e s t i m o n i a l First Quantum nurtures Mauritanian graduate The Guelb Moghrein mine next to Akjoujt has been an excellent learning ground for young Mauritanian, Ahmed Boba Moctor, who likens it to the nurturing received from a maternal figure. The support I receive here is highly strategic and I m given the space to apply my responsibilities. I m also given help when I make mistakes. I believe everyone needs to be given the opportunity to do things differently and here there is a strong belief in what young people can bring to the table, says Moctor. Moctor is one of First Quantum s Local Graduate Programme recruits. Since joining the programme, he has received considerable on-site training at the Guelb Moghrein mine and off-site training in Johannesburg and Cape Town in South Africa. At the University of Cape Town he studied slurry and pipeline design and in Johannesburg he was awarded a category 1 (theoretical) certificate in vibration analysis. Born in 1986 in Atar, Mauritania, Moctor completed his formative schooling in his homeland before studying mechanical engineering at Institut Supérieur des Études Technologiques in Tunisia. After completing a four-year degree in mechanical engineering he joined First Quantum at Guelb Moghrein and signed up to study for an advanced mechanical engineering degree via correspondence through Penn Foster Technical College in the United States. His studies are currently being sponsored by First Quantum. Moctor says one of the benefits of the graduate programme is having access to a mentor. My mentor, who is located in Perth, Australia monitors my progress and advises me on how to resolve challenges. It s a great system and I believe there would be merit in implementing it throughout the workplace, he says. Ahmed Boba Moctor Moctor believes young people should always aspire above their perceived abilities. It is up to each of us to take the initiative, create opportunities for ourselves and grasp those that are presented to us. Our attitude and the skills and knowledge we gain along the way will facilitate the journey, he says. 24 F Q M S U S T A I N A B I L I T Y R E P O R T

27 t e s t i m o n i a l Geologist on the rise at Guelb Moghrein Mining accounts for almost 40% of Mauritania s exports, which is why Maimina Sid Ahmed decided to study geology at Nouakchott University after leaving school. Of the eight women studying geology with her, she is the only women employed in the mining industry. Most of the other women joined the Ministry, but I decided to go directly into the mining environment and was employed at First Quantum s Guelb Moghrein mine in 2008, says Sid Ahmed. She was initially employed as a filing clerk in the Training Department at Guelb Moghrein, but quickly moved to the Exploration Department on the recommendation of her head of department. Now she conducts field work with fellow geologists in the areas of geo-chemistry, reverse circulation drilling and logging. Sid Ahmed says her main focus is on developing her career in mining. I believe the only way to grow is through hard work and training. One of the highlights of my time at First Quantum was a trip to the United Kingdom for an English immersion course, she says. This driven young woman is particularly grateful to exploration manager Mike Blackwell, who has mentored her since she joined the Exploration Department. I appreciate that he has put his faith in me and given me the opportunity to prove myself, she says. Looking ahead, Sid Ahmed hopes to further her studies and gain a deeper insight of the mining industry. This will enable her to play an even more meaningful role at First Quantum and within the industry as a whole. Blackwell says Sid Ahmed s drive was apparent right from the start. Maimina has always impressed me with her attitude and she will soon be channelled into the role of database geologist, a role in which I have no doubt she will succeed, he says. Maimina Sid Ahmed F Q M S U S T A I N A B I L I T Y R E P O R T

28 t e s t i m o n i a l Key Talent gives Bravo greater insight into mining industry Metallurgist, Bravo Mbao was one of 52 people selected for First Quantum s Key Talent Programme in As part of the programme, he enrolled at the Camborne School of Mines in Cornwall in England to pursue a Master of Science in mining in October of the same year. Mbao says he will have a broader view of the mining business after completing the programme in Ultimately, I would like to add some business acumen to my current qualifications to gain a better understanding of the commercial side of things. I believe that every decision made in business is aimed at adding value to the organisation, its employees and the community it operates in. Of course, it should be conducted in a sustainable manner and that is why it is so important to understand the bigger picture, he says. Joining the mining industry was not one of Mbao s earliest dreams. As a child, I dreamt of being a medical doctor, but my father did all he could to arouse my interest in the mining industry. He organised several visits to his workplace at Boart Zambia to chat to members of the metallurgical team, he says. Bravo Mbao His father s persistence paid off and in 1996 Mbao enrolled at the University of Zambia to study for Bachelor of Mineral Sciences in metallurgy and mineral processing. I should have completed my degree in 2000, but due to ongoing disruptions in the form of student protests, political interference and industrial unrest by university staff, I spent an additional two years at the institution, he says. Mbao worked for brief stints as a part time Inspector for the Environmental Council of Zambia in 2002 and a Technical Consultant for Instruments and Mine Lighting at Status Hitech Zambia in I joined First Quantum at its Bwana Mkubwa site in 2004 as a relief metallurgical accountant on a one-year contract. I stood in for someone who was furthering his studies and my conditions for securing a permanent position in the company were based on my performance, he says. Mbao s performance impressed the right people and between 2004 and 2010 he swiftly climbed the corporate ladder at Bwana Mkubwa. In 2005 he was appointed Frontend Metallurgist, in 2006 Backend Metallurgist and in 2007 Senior Metallurgist. In 2008 he was promoted to Metallurgical Process Manager and in November 2010 he moved to First Quantum s Kansanshi Mine to take up the role of Concentrator Operations Manager. There have been many mentors in Mbao s life. Personally, my parents played an enormous role. They always loved and trusted me and I didn t want to disappoint them, which made me work hard in all areas of my life. Professionally, 26 F Q M S U S T A I N A B I L I T Y R E P O R T

29 people like Anthony Mukutuma (Kevitsa Plant Manager), the late Kerry Munday ( Former Plant Manager - Bwana Mkubwa and Kansanshi Mine), Rudi Badenhorst (Ravensthorpe General Manager) and Sean Whittome ( Kansanshi General Manager) were instrumental in guiding me as a young metallurgist, he says. Mbao lives a goal-driven life. I have learned that long-term goals are best achieved when I break them into shorterterm goals. As part of the FQM team, I want to add value and continue growing with the company. On retiring I hope to contribute to the development of my country through policy formulation and lecturing on a part-time basis at one of the universities, he says. To young people considering a career in the mining industry Mbao is encouraging. Globally, there is a massive shortage of skilled labour in the mining industry and the trend is likely to continue for some years to come. This means there are many exciting opportunities for the right people out there. Anyone entering the mining industry should maintain a positive outlook, take advantage of the challenges and where possible, make a difference, he says. International Graduate Programme Location: All mine sites Spend: US$ 2 million The International Graduate Programme also a two-year programme is administered by Group Development and individuals on the International Graduate Programme can belong to any nationality, but must undergo a highly rigorous selection process. In % of the graduates recruited onto this programme were local to the countries within which First Quantum operates. The successful candidates are expected to work at different sites during their two-year development path. Graduates have regular contact with a mentor and coach and are aided with practical support from a number of departments whose task it is to nurture and place talent within the organisation. Key Talent Development Location: All mine sites Spend: US$ 1 million First Quantum identifies key talent in the form of high achieving employees at its sites around the world. These people are encouraged to advance their careers by attending training and working on stretch assignment in order to boost their knowledge base. Career development First Quantum also offers career development opportunities to its employees. These opportunities may be in the form of advancing their studies or providing them with more challenging roles. Camborne School of Mines First Quantum has established a firm relationship with the Camborne School of Mines in Cornwall, England, in recent years. In 2011, eight First Quantum employees were sponsored to study at the institution to increase their knowledge of the industry. In addition, First Quantum agreed to sponsor a new post for a Professor of Mining Education at the university. The person who takes up the post will be tasked with determining how to attract talented people to the mining industry across the world. Mining education research Location: Camborne School of Mining In 2011 FQM funded research into the issue of mining education specifically as it relates to localised workforces at the Camborne School of Mining in F Q M S U S T A I N A B I L I T Y R E P O R T

30 Technical training and further learning Location: all First Quantum mine sites Specific technical training is provided to First Quantum employees at the various mine sites including operator, metallurgical and engineering training. Mining Technology Centre Location: Akjoujt Spend: US$ 1.65 million First Quantum, in conjunction with the Mauritanian government, approved US$1.6-million for the construction of a Mining Technology Centre on the Guelb Moghrein mine site. The centre is helping First Quantum localise the workforce in Mauritania. Construction of Phase 1 of the centre, which is specifically for conducting artisanal training, commenced in Phase 2 will involve the construction of a technical school catering to three-year technician certificates (BTS) in mining, processing and geology. The annual intake is expected to be 30 students. Entry level operators training Location: Ravensthorpe Nickel Operations Spend: US$ 3,127 Entry Level Operators at Ravensthorpe Nickel Operations in Australia completed the mandatory Computer Based Training and Standard Work Instructions (SWO) for their work groups and have been authorised as shift process technicians. Trades Apprentices Location: Ravensthorpe Nickel Operations Spend: US$ 693,771 Ravensthorpe Nickel Operations will commence seven Trades apprentices in four electrical/instrumentation and three mechanical fixed plant. The apprentices will initially complete mandatory on-site Computer Based Training before undertaking external Block 1 trade training. InTuition implementation Location: Ravensthorpe Nickel Operations Spend: US$ 94,292 The InTuition Training Management System was implemented at Ravensthorpe Nickel Operations in In people received operator training at First Quantum s Guelb Moghrein mine in Mauritania. The training was conducted at the mine s simulation centre, which is used to assess and improve the competency and skills level of mine truck and excavator operators. Training scenarios include loading and dumping, basic productivity and tyre wear, emergency events and correct braking procedures, as well as how to take Guelb Moghrein weather conditions and night time operations into consideration. 28 F Q M S U S T A I N A B I L I T Y R E P O R T

31 Amadoo Alassane Dembele gets welding tips from trainer, Michael Kramer, at Guelb Moghrein s Mining Technology Centre. Dembele began working at the mine as a labourer in 2008, but hopes to improve his prospects by learning a trade. Welding skills are in high demand on the mine as the equipment requires constant upgrading and repairs. Identified for his good manual dexterity, Dembele sees learning a trade as a way to secure a better job, earn more money, gain respect in his community and ultimately support a family of his own. F Q M S U S T A I N A B I L I T Y R E P O R T

32 t e s t i m o n i a l Mohamedou Ahmedou From translator to simulator supervisor The training and opportunities for growth that have come my way at First Quantum have changed my life, says Mohamedou Ahmedou, simulator and Dover superintendent at First Quantum s Guelb Moghrein mine in Mauritania. I have grown from playing a low-key role in the organisation to assuming a senior position, which has earned me respect at work and within my community. Having goals in life is important. It takes patience, hard work and perseverance to achieve them, but the rewards are gratifying, he says. After graduating from Nouakchott University in 2004 with a BA degree in translation Ahmedou joined First Quantum at its Guelb Moghrein mine in He was initially employed as a translator, but soon began working in surveying before moving into a mining engineering assistant role. In 2007 Ahmedou was promoted to earth moving supervisor with the responsibility of overseeing the building of five tailings dams. Midway through 2009 he moved into simulator training and in December 2010 was promoted to his current role. While much of his learning over the years has involved on-the-job training, Ahmedou travelled to Perth in Australia in 2009 for a memorable two-week simulator training course. Looking ahead, Ahmedou says another of his goals is to run his own mining related business one day. Perhaps I will be able to fulfil a consulting role sometime in the future, he says. 30 F Q M S U S T A I N A B I L I T Y R E P O R T

33 InTuition holds the training records for all First Quantum and Contractor employees. The system permits employees and supervisors to monitor and report individual and workgroup compliance and competency status. Kwambula Learnership Programme Location: Solwezi, Zambia Spend: US$ 1.4 million Based in Solwezi, Zambia, Kansanshi Mining Plc has committed itself to the development of skills in the local community and North Western Province. To drive this commitment to skills development, the Company entered into an agreement with the Solwezi Trades Training Institute (SOTTI) in 2011 with the intention of establishing a learnership programme aimed at providing people with the opportunity to get a valid craft qualification and a better chance at getting good jobs. The multi-billion kwacha investment in the community lead to the upgrading of infrastructure, increased training resources and additional facilities to expand the institute. The programme was christened Kwambula which means igniting in Kaonde, an apt name for an initiative that aims to ignite hope in people and set the course in motion for a prosperous Zambia. Kwambula provides practical and theoretical training in various mining trades including mining electrical, metal fabrication, welding and machining, which will be conducted under the auspices of the Ministry of Science and Technology and Vocational Trainings Technical, Vocational and Entrepreneurial Training at SOTTI. The qualifications received by course participants will be recognised across the country. Students will also undertake work experience at Kansanshi and Sentinel mines. Enrolment commenced in January 2012 with an initial intake of 71 students. Classrooms in the institute are fully equipped with the necessary tools and machinery to facilitate practical learning, with accredited lecturers providing guidance and practical knowledge. The apprenticeship programme is open to anyone who meets the minimum qualifications of grade 12 with five credits, which should include Mathematics, Science and English. All applicants will undergo assessments and aptitude testing to determine their ability to perform in the engineering fields. The creation of Kwambula is consistent with the First Quantum s CSR philosophy, which is aimed at building sustainable communities that are able to outlive mining activities, thus providing Zambia with the benefit of skilled people, who will grow the economy and promote sustainable living. On-the-job training Location: all sites Spend: ongoing At every site, opportunities exist for employees to learn via on-the-job training, from peers sharing their skills and managers passing theirs on. F Q M S U S T A I N A B I L I T Y R E P O R T

34 environment Environmental responsibility In 2011, First Quantum s mining concessions in Zambia, Mauritania, Australia and Finland covered an area of about 782 km 2. This excludes the exploration concessions not covered in this report. Approximately km 2 or 8.6% of the total mining concession areas are disturbed by mining activities. In 2011, this footprint increased by 4.57 km 2, mainly due to the extension of open pits, mine waste dumps and tailings dams in Zambia and Mauritania. Although no operations occur within International Union for the Conservation Nature and Natural Resources (IUCN) protected areas categories I to III, world heritage sites or biosphere reserves, sensitive areas such as wetlands occur within the Zambia mining concessions, conservation areas adjacent to Kevitsa mining concession in Finland and the Fitzgerald River National Park is located some 17km south east of Ravensthorpe Nickel Operations. First Quantum has made several efforts to mitigate any risks to these areas. Environmental risks and mitigation management First Quantum has comprehensive mitigation management measures in place at its various sites aimed at addressing potential environmental risks. 32 F Q M S U S T A I N A B I L I T Y R E P O R T

35 Category Risk level Potential risks Bio-diversity VH Biodiversity disturbances due to mining and tailings placement Reagents VH Storage and spill risks due to volumes at remote operations Mitigation management Limit areas of disturbance to absolute minimum Correctly size storage facilities and containment Employee training on handling of reagents, spill prevention and clean-up Hazardous Waste H Disposal risks from hazardous waste due to lack of hazardous waste disposal facilities Tailings H Possible seepage, spillage, dust and visual impact associated with tailings disposal Hydro-carbons M Spillage of diesel, petrol and oil during handling, storage and transport to site Water M Dewatering of ground water resources Pollution of surface and ground water from accidental releases and seepage Air M Greenhouse gas emissions such as carbon dioxide and nitrous oxides by the mining operations Dust emissions from tailings storage areas and haul roads Fibrous Amphibole Material in a association with ore bodies Industrial Waste M Challenges faced by operations to implement recycling in the absence of established recycling markets in countries of operation Reduction in volumes of hazardous waste and recycling of waste oil Operational monitoring of tailings dams Re-vegetation of tailings dams Construction of containment facilities for storage Implementation of handling procedures to prevent spills Clean and dirty water separation on sites with containment facilities Provision of alternative water supply where mine dewatering impacts on the water supply Maintenance schedules for mobile equipment Vegetation establishment on tailings slopes and spraying molasses on haul roads Enclosure of milling and crushing facilities Investigate and establish recycling markets and commercial community ventures Energy L Wastage of energy Investigate ways to save energy as well as use alternative energy sources Communities L Health risks posed to communities due to air emissions and accidental discharges Risk Level: very high (VH); high (H); medium (M); low (L) Develop an environmental management system to prevent accidental releases and control air emissions F Q M S U S T A I N A B I L I T Y R E P O R T

36 Environmental incidents In 2011, no Level 3 (serious) environmental incidents were reported at First Quantum s operations. 290 Level 1 (minor) environmental incidents and 9 Level 2 (moderate) environmental incidents were reported and investigated under the ISO based environmental management systems procedures. The Level 2 incidents involved 3 saline water spills at Ravensthorpe, 3 acid road tanker leaks at Kansanshi, 1 tailings spill at Ravensthorpe, 1 sewage spill at Ravensthorpe and 1 diesel spill at Kansanshi. Remedial measures were carried out as quickly as possible and recommendations made to prevent a recurrence. This forms part of First Quantum s continual improvement process: Plan - Implementation - Check - Review. Year 2011 Incidents Acidic Process Spill 149 Tailings Spill 63 Hydrocarbon Spill 24 Release of Poor Quality Water 17 Non Acid Process Spill 13 Acid Pipeline Leak 13 Animal death 8 Chemical/Reagent Spill 7 Acid Tanker Leak 3 Sewage 1 Damage to Protected Area Level Level 2 9 Level 3 0 Environmental incident by type % 0% Level 1 (290) Level 2 (9) Level 3 (0) 97% 6% 5% 4% 3% 2% 1% 0% 0% Acidic Process Spill (149) Tailings Spill (63) Hydrocarbon Spill (24) 8% 21% 50% Release of Poor Quality Water ((17) Non Acid Process Spill (13) Acid Pipeline Leak (13) Animal death (8) Chemical/Reagent Spill (7) Acid Tanker Leak (3) Sewage (1) Damage to Protected Area (1) 34 F Q M S U S T A I N A B I L I T Y R E P O R T

37 Greenhouse Gas Emissions First Quantum publishes an annual Greenhouse Gas (GHG) Report on its website ( It reports on the Company s activities and also responds annually to the Carbon Disclosure Project UK. Due to the nature of First Quantum s business the main source of its GHG emissions is combustion of diesel fuels by mining equipment. The Mauritanian operation also consumes significant volumes of diesel and oil in generators to produce electricity for the mine. CO 2 emissions In 2011, the Company s total CO 2 emissions increased 81.5% to 567,323 tonnes. The increase was mainly due to mine expansion projects, higher mine stripping ratios and longer haul distances at Kansanshi; mine expansion and increased mining rates at MCM; and commissioning and commencement of operations at Ravensthorpe nickel. Nitrous oxide (N 2 O) emissions due to the use of explosives decreased 1.8% to 130,267 tonnes. No emissions were reported for Lonshi, Frontier or Kolwezi due to the suspension of operations and withdrawal of personnel from the Democratic Republic of Congo. Supply chain emissions In 2011, supply chain emissions were captured for the first time. Total supply chain CO 2 emissions for acid, construction, stores, diesel, lime and sulphur deliveries to mine sites were calculated at 15,130 tonnes. Between now and 2014, First Quantum will expand its Kansanshi copper mine significantly, commission a new nickel project in Finland and develop a new large-scale copper mine in Zambia. GHG emissions will therefore continue to rise year on year. Towards a reduced carbon footprint First Quantum continues to seek practicable and economically viable ways to reduce its carbon footprint. In 2011, it began construction of a trolley assist system at its Kansanshi copper mine in Zambia. Phase 1 of the trolley assist will be commissioned in the second quarter of Sixteen Hitachi EH 3500 trucks fitted with F Q M S U S T A I N A B I L I T Y R E P O R T

38 pentographs will be introduced in 2012 followed by a further 19 trucks in The haul trucks will use the trolley assist to move waste rock and/or copper ore from the open pit under electrical power. Four Liebherr ER 9350 electrically powered shovels were introduced at Kansanshi in 2011 replacing some of the diesel powered excavators in the mine. The use of electrically powered trucks and shovels at Kansanshi will significantly reduce the consumption of diesel and resulting carbon emissions from burning fossil fuel. Electricity in Zambia is renewable and generated in hydro-electric power stations. In 2011, approximately 81% of the electricity bought by the Company was generated in hydro-electric power stations. The Company s Kevitsa nickel project in northern Finland began operations in Q Electrically powered shovels will be used at Kevitsa including one Komatsu PC 5500 and one Komatsu PC At the Company s Ravensthorpe nickel operation in Western Australia, waste heat from the acid plant is used to generate electricity in three 18.5 MW stream turbines. At full production, the steam turbines are capable of meeting 86% of the operation s power requirements. Solar power First Quantum is investigating opportunities for the use of solar power across the group. Opportunities for solar water heating and solar lighting have been identified in Mauritania and at the Trident Project in Zambia. comparison of emissions per scope Carbon dioxide emissions (t) 600, , , , , , Scope 1 Direct Emissions Scope 2 Electricity Emissions Scope 3 Indirect Emissions 36 F Q M S U S T A I N A B I L I T Y R E P O R T

39 Site-specific environmental contributions / activities Environmental impact assessments First Quantum subscribes to the Equator Principles and the International Finance Corporation s Performance Standards in environmental management. The Company conducts comprehensive environmental impact assessments (EIAs) for all new projects and expansions of existing operations that may have significant impact on the environment. Mitigation measures are then incorporated into its environmental management plan. Location: Trident Spend: US$ 501,787 In July 2011 the Environmental Impact Statement for the Trident Project in Solwezi District, Zambia, was approved by the Zambia Environmental Management Agency (ZEMA), formally ECZ. Location: Kansanshi Spend: US$ 722,759 The following environmental impact assessments were conducted in 2011: New Sulphide Tailings Storage Facility - an EIA for the New Sulphide Tailings Storage Facility was undertaken and the project was approved by the Zambia Environmental Management Agency. 12MTPA Copper Oxide Ore Treatment Facility Upgrade an Environmental Project Brief (shortened EIA) for upgrading the existing copper ore treatment facility from 6MTPA to 12MTPA was undertaken and the project was approved by the Zambia Environmental Management Agency No. 5 Sulphuric Acid Plant an Environmental Project Brief (shortened EIA) for the construction of a new sulphuric acid plant was undertaken and the project was approved by the Zambia Environmental Management Agency. Proposed Copper Smelter First Quantum proposed the construction of a copper smelter within the Kansanshi Mine Lease Area. The Environmental Impact Assessment for this smelter is currently in progress. Kansanshi Mine Decommissioning and Closure Plan with Costs the plan was updated. Environmental Monitoring Location: Trident Spend: US$ 60,500 First Quantum has implemented a detailed baseline monitoring programme to measure ambient air, water and dust levels on and in close proximity to the proposed development site. This was in addition to the environmental impact assessment studies. Location: Kansanshi and surrounds Spend: US$ 144,635 First Quantum conducts regular environmental monitoring to measure ambient air, dust and noise levels on and in close proximity to the mine. In 2011 Kansanshi met its statutory requirements with respect to all aspects of environmental monitoring. Water Management Location: Kansanshi and surrounds Spend: US$ 360,000 The mine s location upstream of Solwezi town necessitates that water management issues are given high priority. In 2011, the following parameters were measured in the Kansanshi Stream immediately downstream of the mine, and found compliant with Zambia and international effluent discharge standards: F Q M S U S T A I N A B I L I T Y R E P O R T

40 Kansanshi Stream Downstream of Mine Influence Month ph Cond TDS TSS 2- SO 4 Cl - Cu Co Fe Mn TOC (us/cm) January <0.02 < <0.03 <5 February < <0.02 < <0.03 <5 March <0.02 < <0.03 <5 April <0.02 < <5 May < <0.02 < <5 June < <0.02 < <0.03 <5 July < <0.02 < <0.03 <5 August < <0.02 < <0.03 <5 September < < <5 October < <0.02 < <0.03 <5 November < <0.02 < <0.03 <5 December < <5 Zambian Effluent 6.0-4, 300 3, , Statutory Limits 9.0 IFC/World Bank Standard 9.0 Kansanshi Mine Standard , 300 3, , F Q M S U S T A I N A B I L I T Y R E P O R T

41 Waste Management Location: Kansanshi mine site Spend: US$ 590,775 Typical of any mining and metal processing company, Kansanshi imports, handles and stores hazardous materials such as acids and mill reagents. The mine has, as part of its environmental management strategy, developed an ISO Environmental Management System (EMS) based procedure for the transportation, handling and storage of these materials. Re-vegetation of tailings dam Location: Bwana, Ndola Spend: US$ 256,000 Although Bwana operations officially closed in September 2010, First Quantum continued to address its environmental responsibility relating to the maintenance and rehabilitation of the tailings storage facilities throughout 2010 and This was conducted in consultation with the surrounding communities. Re-vegetation of the outer walls of the main tailings storage dam (TD5A) was successfully concluded in December In addition, a trial to re-vegetate approximately 400m 2 of the internal walls of the same tailings dam was successful. Bwana resumed acid production of 350 tpd from two plants in August 2011 to meet increased demand from First Quantum s Kansanshi mine. Rehabilitation activities Location: Kansanshi mine site Spend: US$ 467,587 Rehabilitation activities such as re-vegetation using indigenous plant species was carried out at Kansanshi mine site. Re-vegetation of the outer walls of the main tailings storage dam at Bwana Mkubwa F Q M S U S T A I N A B I L I T Y R E P O R T

42 Process Ponds South West Waste Dump Main Sulphide Tailings Storage Facility (Tailings Dam Walls) General degraded areas Environmental Licensing Compliance Location: Kansanshi Spend: US$ 9,631 Compliance was attained in the following areas: Importation and Storage of chemicals Effluent Discharges to the aquatic environment Transportation of wastes Generation and Storage of hazardous wastes Ownership and Operation of Waste Disposal Facilities Habitat and Natural Resource Preservation Location: Trident Project, Solwezi District Spend: US$ 160,000 The Trident Project will attract thousands of people to the area in the coming years. Given the reliance of local communities on natural resources, in June 2011, the Company initiated a legal process to enable the long term preservation of the Bushingwe and Lualaba Forest Reserves adjacent to the Trident Project. The areas will be known as Joint Forest Management Areas (JFMAs) and will be managed by committees comprising local communities, the Company and government. Musangezhi River Flow Location: Trident Project, Solwezi District Spend: US$ 14,142 The Trident Project will require the Musangezhi and Chisola Rivers to be diverted from their existing channels. In 2011 a number of experts were engaged to quantify the ecological flows required for the rivers to maintain their 40 F Q M S U S T A I N A B I L I T Y R E P O R T

43 The Trident Project is set in a relatively pristine environment where mature miombo woodland is the dominant vegetation type. ecological services. A high level risk assessment identified opportunities and constraints associated with a number of engineering options. Based on the recommendations of these studies, a commitment was made to maintain the annual base flow in the Musangezhi River combined with periodic high flow flushing events. Forestry Resource Usage Location: Trident Project, Solwezi District Spend: US$ 200,000 Extensive vegetation clearing is required for the Trident Project and approximately 7,000 ha of mature miombo woodland, which includes a number of commercially valuable timber species, will need to be cleared. Traditionally vegetation is stripped, windrowed and burned. However, the Company has committed to a systematic timber salvage operation within its development footprint. Not only will the proposed timber salvage utilise a valuable resource, but approximately 100 jobs will be created in respect of value adding activities such as making furniture. F Q M S U S T A I N A B I L I T Y R E P O R T

44 Vetiver cultivation Location: Trident Project, Solwezi District Spend: US$ 4,000 Almost 16,000 stems of Vetiver were planted by the environmental department at Trident in old cassava fields. The Vetiver, which has a deep root system, is planted at First Quantum s mines for the stabilisation of slopes. The roots also contain essential oils and the mine is considering oil extraction as a future community project. Trident Tree Nursery Location:Trident Spend: US$ 15,000 In December 2011 a tree nursery was established at Trident with a view to rehabilitating disturbed areas. In addition to nurturing indigenous tree species from seedlings, young trees felled during site clearance are also replanted in degraded areas. 42 F Q M S U S T A I N A B I L I T Y R E P O R T

45 Wildlife conservation Location: Kansanshi mining concession Spend: US$ 24,548 Animal numbers in a game management area within the Kansanshi mining concession have increased substantially over the past year and Kansanshi is now in a position to stock other mines within the group in Zambia with certain species of animals. The first game capture and relocation took place in June 2012 with 12 impala and four zebra relocated to Ndola. The anti-poaching unit continues to be successful in eliminating poaching with no poaching incidents recorded over the past year. The community based wildlife conservation officer continues to be effective in conducting information sessions with surrounding villagers in an effort to encourage a culture of nature conservation. In addition, animal well-being is being monitored with 10 remote cameras. Energy footprint Location: all mines First Quantum s renewable energy footprint dropped from 87.9% in 2010 to 80.6% in This is largely due to mine expansion at Guelb Moghrein in Mauritania and the commissioning of Ravensthorpe Nickel Operations in Australia. Saline water usage Location: Guelb Moghrein, Akjoujt, Mauritania Spend: US$ 3.75 million Potable and industrial water is abstracted from the Bennichab freshwater aquifer and pumped over 114km across the desert to Guelb Moghrein mine in Akjoujt. After conducting hydro-geological studies in 2007 and to preserve this finite fresh water resource for future generations, the mine developed a saline well field close to Bennichab to supply the mine with over 5,000 cubic metres of saline process water per day. In 2011, a total of 1,611,557m3 of saline water was used, which accounted for 50% of water abstracted from the combined borefields at Bennichab. Abstraction from the freshwater aquifer was maintained below the sustainable yield of 171,000 cu.m / month over the life of mine. F Q M S U S T A I N A B I L I T Y R E P O R T

46 44 F Q M S U S T A I N A B I L I T Y R E P O R T

47 Bennichab is a small oasis village situated at the Bennichab water aquifer in Inchiri Province, Mauritania. It has a permanent population comprising about 80 families and is frequented by nomadic people and their livestock of camels, goats and cattle. Water is pumped from the aquifer 114km across the Sahara Desert to Akjoujt for use by the local community and Guelb Moghrein mine. F Q M S U S T A I N A B I L I T Y R E P O R T

48 2011 environmental expenditure Environmental Expenditure First Quantum Site 2010 Cost USD 2011 Cost USD Bwana Mkubwa 559, ,074 Kansanshi 3,764,207 5,685,461 Guelb Moghrein 927,098 1,982,224 Ravensthorpe 252,995 1,394,205 Kevitsa 921, ,558 Trident 742,840 2,100,056 Haquira, 0 222,130 Total $7,167,584 $12,891, F Q M S U S T A I N A B I L I T Y R E P O R T

49 social The overall objective of First Quantum s socioeconomic development programmes and projects is to improve the quality of life for its employees, their families and the immediate communities. This is pursued by: Improving health care through the provision of health facilities and service providers Improving infrastructure and basic services in communities such as roads, housing, water, electricity and sanitation, amongst others Improving education infrastructure and services Facilitating access to enterprise development opportunities for local entrepreneurs In addition to the above, our major socio-economic contribution includes our direct and indirect employment capabilities and contributions to government income. F Q M S U S T A I N A B I L I T Y R E P O R T

50 health care Community health is inextricably linked with occupational health. Illnesses in First Quantum s employees communities have a detrimental impact on the workforce. In this respect the company has embarked on a programme to provide a broad range of health care services to the local communities. Solwezi General Hospital Redevelopment Location: Solwezi Spend: US$ 2.2 million Funded by: Kansanshi Foundation Redevelopment of the Solwezi General Hospital and construction of a new wing at the site commenced in This will incorporate the addition of an emergency room, intensive care, administrative block, a high cost wing (aimed at Workers apply finishing touches to one of the nursing stations in income generation for the hospital), a mental the new wing at Solwezi General Hospital. health facility, a dialysis facility, an expanded Out Patients Department, as well as the reorganisation of the internal ward layout, renovation of all wards and the development of car parking and traffic flow. The project received input and approval from the Ministry of Health (MoH) and First Quantum worked with 48 F Q M S U S T A I N A B I L I T Y R E P O R T

51 the department to conduct a needs analysis for the equipment and assist with sourcing the equipment through donors and other means. The high cost wing, which is well underway, will have an independent information management and accounting system, which will allow it to operate independently of the larger facility. Equipping of the High Cost wing will be a collaborative effort between the MoH and First Quantum. Mary Begg Community Clinic Location: Ndola Spend: US$ 1.2 million and ongoing support of more than US$ 400,000 per annum Funded by: FQM The facility in Ndola was redeveloped to provide high quality services to the entire community on a non-profit basis. Services offered include general practitioner, inpatient, pharmacy, laboratory, emergency, ambulance, physiotherapy, X ray, occupational health checks, occupational therapy and an expanded laboratory capacity (including CD4 count), which will serve as back up to the District Health Management Team facilities. The facility works closely with Ndola Central Hospital with many staff working in both facilities. First Quantum purchases services at the facility and sponsors the continuous professional development programme for the staff, which includes medical scholarships, ongoing in-house training and other associated course sponsorship. In addition, Mary Begg is an accredited distribution facility for the Ministry of Health s HIV/Aids ARV programme and other community health programmes such as immunization and family planning. First Quantum and Mary Begg combined forces to offer a small-to-medium-enterprise HIV programme (SMEPI), which assists some of the contractors and other interested businesses in developing HIV programmes and capacity established under the auspices of the USAID sponsored Global Development Alliance (GDA). Within one week of the Wellness Centre doors opening, eight people had commenced on ARV treatment and many others had received VCT and other wellness checks. A community telecentre is due to open in October 2012 providing, amongst other things, health information to a broader section of the community. The ongoing costs will be funded by contractors, First Quantum and the Comprehensive HIV/AIDS Management Programme (CHAMP). Solwezi Prison Clinic Location: Solwezi Spend: US$ 4,000 In 2010 First Quantum s Kansanshi Mine provided US$ 21,000 towards the rehabilitation of the local prison clinic with a view to improving prisoners access to healthcare. In 2011, the mine extended its support by providing the clinic with office furniture, computers for record keeping, equipment for the screening room and a fridge. Solwezi DHMT Location: Solwezi Spend: US$ 20,000 and US$ 5,000 ongoing Funded by: FQM Health A nurse checks a patient s blood pressure at the Solwezi Prison The renovation of and support for the largest clinic, which serves prison inmates as well as members of the local Rural Health Clinic in Solwezi commenced in community. March The renovations were conducted by a team of volunteers from Kansanshi Mine and First Quantum continues to support the clinic with smaller items. Future plans include the development of a community wellness wing offering Voluntary Counselling and Testing, ARVs and associated services, and a F Q M S U S T A I N A B I L I T Y R E P O R T

52 community health telecentre. Ongoing costs will be funded by CHAMP programme, First Quantum and SMEPI contractors. In addition, a Mother and Child wing will be built at the urban clinic in 2012, as well as a health post and staff house in Mbonge community. HIV programme Location: Ndola, Solwezi, Trident Spend: US$ 400,000 annually Funded by: FQM HIV programme The First Quantum HIV programme has been running for a number of years and currently delivers an HIV programme in accordance with the directives of the HIV policy and delivered in the community and workplace. It covers education, counselling, VCT, free ARVs, free health care to registered workplace participants, free ARVs to the community through the mobile unit in Solwezi, some community members through Mary Begg Community Clinic and the Trident Clinic for employees. The programme forms part of the USAID Global Development Alliance run by CHAMP. Included in the HIV programme is the successful One Man Can programme developed by the International Organisation for Migration and piloted at Kansanshi with results exceeding our highest hopes; the Community Health Matter Road Shows developed by First Quantum in an edutainment format; as well as the development and maintenance of a large network of volunteers the Human Resource Persons Network (HRPN). Support for several responsible Orphaned and Vulnerable Children - caring organisations in Ndola and shortly in Solwezi. Education and treatment for sexually transmitted diseases, tuberculosis, malaria, rabies, cholera and other diahorreal diseases are covered by this budget allocation and programme. Table of HIV/Aids Programme Performance for Years 2008, 2009, 2010 and 2011 Programme Total Sensitization 46,242 33,342 47,003 41, ,760 Counselled 4,721 6,377 13,122 12,398 36,618 &Tested Tested HIV 3,271 5,675 9,970 9,212 28,128 Negative Tested HIV Positive ,183 1,059 3,343 Employees on ART *The number of employees on anti retro-viral treatment (ART) is cumulative. Health Road Shows Location: Ndola, Solwezi Spend: US$ 45,000 First Quantum conducted several health road shows in Ndola and Solwezi communities in 2011 and will roll them out to Trident in The road shows are an excellent medium for community mobilisation and a convenient forum for reaching large numbers of people. First Quantum has harnessed this response and, in collaboration with the Ndola and Solwezi DHMT s, offers additional health care services such as weight checks, screening for diabetes, dental checks and malaria seek and treat. Trident Project HIV Policy launch Location: Solwezi Spend: US$ 20,000 The Trident HIV policy was launched in the last quarter of 2011 in Senior Chief Musele s area at Musele Basic School and was attended by the Minister of Health, Dr Joseph Kasonde; Senior Chief Musele; Chiefs Matebo, 50 F Q M S U S T A I N A B I L I T Y R E P O R T

53 c a s e s t u d y One man can make a difference Voluntary Counselling and Testing (VCT) rates at First Quantum s Kansanshi operation have increased from 5% to 20% since the introduction of One Man Can, a HIV/AIDS awareness programme developed by the International Organisation for Migration. Still in its trial phase, First Quantum agreed to pilot One Man Can at its Kansanshi operation in Aimed at effecting behavioural change amongst the male population, the programme highlights the critical role of men as change agents in the fight against the disease. Men are asked to understand the importance of their role in the community, their families, and extended families as fathers, sons, uncles, role models and responsible citizens. In addition, issues such as family income, security, drug and alcohol abuse and behaviour towards women are discussed and men are encouraged to take control of their situation and lead appropriately. Following group sessions, individuals are offered the opportunity for VCT, which forms a central part of the First Quantum HIV programme. Indications are that the presumptive rate of HIV at Kansanshi is about 9%, which is much lower than the national average and in a population that has an enormous number of risk factors. As the programme continues to access more and more members of the Kansanshi workforce, First Quantum expects that more than 50% of the workforce will undergo VCT. Since introducing the programme, many women voiced their interest in a similar programme, which addresses the main issues working women face with regard to HIV transmission lack of self esteem; inability to negotiate favourable outcomes in the work place, socially and in the bedroom; and drug and alcohol abuse. This has lead to the formulation of the One Woman Can Programme, specifically designed to address the issues raised by women. The participatory health education sessions will commence at Kansanshi Mine in 2012 and voluntary counselling for HIV and screening for sexually transmitted infections will also be on offer. First Quantum enlisted the services of nurse, Rona Maambo, to educate First Quantum employees on health issues and test people in communities in close proximity to the mines for malaria and other illnesses. Maambo will conduct the One Woman Can programme at First Quantum s mines, due to commence in She is acutely aware of the issues women face such as sexual abuse and intimidation and strives to provide them with the necessary skills and knowledge to deal with these challenges. F Q M S U S T A I N A B I L I T Y R E P O R T

54 Mukumbi and Ntambo; a representative of Chief Kapijimpanga; the Mayor of Solwezi and 10 Council Counsellors. The policy launch affirmed First Quantum s commitment to the community and offered a road map for the implementation of the HIV programmes to follow. Trident HIV Project training Location: Solwezi Spend: US$ 35, people from Musele, Wanyinwa and Chisasa were identified for training as peer educators for Trident s HIV Project, to commence in The training will incorporate one week of theoretical training and six weeks practical experience under the guidance of the Trident health promotion officers. The peer educators will then be attached to the relevant health care facilities in their respective communities. Their role will be to disseminate HIV/AIDS and other health information under the ongoing guidance of Trident health promotion officers and health care personnel in their communities. Each peer educator will be given a bicycle to ensure ease of mobility to and from education campaigns. Malaria Public Private Partnership Location: Ndola, Solwezi, Trident Spend: US$ 200,000 annually The Malaria PPP is run through CHAMP to fill gaps in the national malaria programme; rally support from private enterprise for malaria control by providing clear opportunities to assist the national programme; and develop new and innovative ideas to educate and stimulate the community towards better malaria management. The programme was initiated by First Quantum, which continues to administer it. First Quantum also sponsors the ongoing scientific enquiry through the District Health Management Team and the Tropical Diseases Research Centre, which includes entomological studies, parasite prevalence studies, effectiveness of insecticides and breeding site mapping, amongst others. The greatest success to date was discovering that the Anopheles mosquito in Ndola was resistant to DDT and a number of other chemicals, making the planned spray-round virtually useless. After confirmation by the National Malaria Control Board and the District Health Management Team, the correct changes were made. First Quantum delivered a community challenge to two malaria prone areas in the form of education and incentives to bring about small, but useful changes at community level. It also covers indoor residual spraying (IRS) with the District Health Management Team in the Misundu area in Ndola and Trident as they are not IRS areas. In addition, the Company delivered 120,000 nets to rural health centres in the Kapijimpanga and Musele Kingdoms. 52 F Q M S U S T A I N A B I L I T Y R E P O R T

55 Every fortnight Health Promotion Officer, Marcus Chisanga, and his team conduct malaria tests at the workplace or in communities in close proximity to the Trident mine site using a Mobile Health Unit. By 09:00 on the day Chisanga was interviewed, 140 people had already been tested for malaria and 67 people found positive. Chisanga says people who test positive for malaria are immediately provided with treatment. In addition, volunteer peer educators chat to local community members about malaria and cholera prevention, as well as HIV and voluntary counselling and testing, he says. F Q M S U S T A I N A B I L I T Y R E P O R T

56 Health Professionals Education Location: Ndola, Solwezi, Trident Spend: US$ 150,000 Funded by: FQM Health and FQM Scholarships First Quantum sponsors medical scholarships for family medicine, dermatology, nurses in rural areas, pharmacists and two Masters-degrees in public health on an ongoing basis. In addition, in June 2011 advanced life support courses were delivered to health professionals in both public and private institutions, using licensed providers of the American Heart Association courses. Due to the success of the course, plans to run them on an ongoing basis in Zambia commencing in 2012 were drawn up. In this respect, medical services provider, ER24, has agreed to deliver and build local capacity for these courses. First Quantum also sponsored equipment for Mary Begg to support the delivery of these courses for its staff, as well as for the acquisition of a Continuing Professional Development (CPD) licence. Rehabilitation of Akjoujt Hospital Location: Akjoujt, Mauritania Spend: US$ 408,127 Rehabilitation of Akjoujt hospital commenced in March 2009 and was completed in November Around 20,000 TOP: A doctor attends to a patient at Akjoujt hospital. ABOVE: Women queue for medicine outside the dispensary at the newly refurbished Akjoujt hospital. OPPOSITE: Mobile x-ray machine. 54 F Q M S U S T A I N A B I L I T Y R E P O R T

57 people are expected to use the facilities annually, which include 20 beds, a maternity ward, operating theatre, X-ray and Ultra sound facility, laboratory, dental facility, as well as a new and well equipped ambulance and accommodation for visiting doctors. Operational support for Akjoujt Hospital Location: Akjoujt, Mauritania Spend: US$ 236,186 In 2011 First Quantum provided assistance to the hospital in the form of staff motivation, hygiene, safety, equipment maintenance and costs related to the ambulance. Gynaecological services in Akjoujt Location: Akjoujt Spend: US$ 120,000 annually First Quantum supported the existing health centre in Akjoujt by enlisting the services of a gynaecologist to conduct monthly visits. This has resulted in a dramatic improvement in pre and post-natal care for the local community. Vaccination campaigns Location: Akjoujt Spend: US$ 8,000 First Quantum provided logistical support in the form of vehicles to government vaccination campaigns. This allows for greater outreach of the campaign. Improved Regional Health Services Location: Western Australia Spend: AUS$ 207,000 Australia enjoys high quality medical services provided by Government. However in remote regional areas services can sometimes benefit from local industry assistance. To this end, First Quantum s Ravensthorpe Nickel Operations funded AUS$ 40,000 for relief general practitioner staffing to ensure the local community has 24/7 access to medical assistance. In addition, Ravensthorpe Nickel Operations collaborated with WA Country Health in 2011 to provide a mobile x-ray machine worth AUS$ 167,000 to Esperance Regional Hospital and upgrade the x-ray machine and imaging systems at the Ravensthorpe District Hospital. This has greatly improved radiology services in the region. Health and nutrition programme Location: Haquira Project, Peru Spend: US$ 200,000 A health and nutrition programme in Peru provides support to community members who cannot afford transportation to hospitals. In addition, the Company provides lunches prepared by local community Mothers Associations to school children with the intention of improving their nutrition levels. F Q M S U S T A I N A B I L I T Y R E P O R T

58 agriculture Conservation Farming Location: Solwezi and Trident surrounds Spend: US$ 275,000 Kansanshi and Trident are committed to promoting local level agricultural development. In the 2011/12 growing season, the Conservation Farming (CF) scheme supported 322 rural farmers at Kansanshi (230) and Trident (92). The programme targets vulnerable rural households around the mine areas and provides farmers with technical expertise in simple and non-environmentally destructive farm practices. Farmers are taught how to use minimal soil disturbance methods, crop rotation and crop residues to increase the natural humus layers of the soil over a period of time. Crop Maize Solwezi Beans CF Trial Plots best results 8 tonnes/ha 1,775kg/¼ha CF Trial Plots average results 4.5 tonnes/ha 1,500kg/¼ha Provincial average 1.2 tonnes/ha 300kg/¼ha Poultry rearing, vegetable gardening and rehabilitation of Kyafukuma Farming Institute Location: Kyafukuma Spend: US$ 81,700 In a drive to promote livelihood diversification in local communities, First Quantum s Kansanshi mine launched poultry rearing, vegetable gardening and fish farming projects in Kyafukuma in Solwezi. In recent developments, the Kansanshi Foundation funded the conversion of an old piggery into a poultry shed. Cooperative members received feed and chicks, as well as training on community-based poultry rearing from Kansanshi project partner, the Ministry of Agriculture and Cooperatives, to ensure the project s success. Joyce Kavumbu has been involved in farming since the age of 10, but she started farming beans and maize in earnest ten years ago as a means of supporting her five children. Kavumbu began conservation farming on one of Trident s trial plots in 2011 and harvested two 90kg bags of beans and 20 50kg bags of maize in the same year. She also started growing vegetables in 2011, which she sells to Trident. She says her efforts have helped her to put food on the table, maintain her house and pay for her children s schooling. 56 F Q M S U S T A I N A B I L I T Y R E P O R T

59 F Q M S U S T A I N A B I L I T Y R E P O R T

60 t e s t i m o n i a l Conservation farming improves prospects for Solwezi farmer Prince Phanuel Malipenga (38) of Solwezi District is one of 230 farmers to benefit from Kansanshi s Conservation Farming programme in With the technical expertise in simple and non-environmentally destructive farm practices he received from the Kansanshi Foundation, Malipenga feels he is better equipped to provide for his wife and seven children. Malipenga has supported his family for several years using traditional farming methods, but when he attended a meeting organised by Kansanshi Foundation at Mushitala Basic School, he immediately saw how the transition to conservation farming could benefit him. Malipenga now uses new farming methods such as the optimal spacing of crops and thinning of crops before applying the first layer of top dressing. These, amongst other methods, have resulted in a significant increase in yields. Since adopting the new methods, Malipenga and his wife have cultivated two Lima of maize and one Lima of beans and they look set to produce 20 to 30 bags of maize as opposed to 10 to 15 bags using conventional methods. This improved yield will guarantee Malipenga s family s food security and help put his children through school. Malipenga hopes other local farmers will adopt the new methods, which will result in higher crops yields and an improved economic situation. Malipenga says he is determined to become a renowned farmer in Mushitala Extension. I appreciate the skills I have been equipped with and commend Kansanshi Foundation for engaging with farmers and giving us knowledge of a more productive alternative to conventional farming. My greatest dream is to sell my products to the mine, become a role model for others and promote conservation farming in my region, he says. In addition to taking care of his own crops, Prince administers at a nearby Christian co-operative, which has 1 hectare of land under conservation farming. The cooperative supports 17 HIV/AIDS sufferers, who can now feed 58 F Q M S U S T A I N A B I L I T Y R E P O R T

61 themselves without being dependent on charity. This has done wonders for their health, but more importantly for their self esteem. Malipenga s commitment to his community extends even further and he is Project Coordinator for the Kansanshi East Resource Centre for Positive Living, which is aimed at increasing awareness around HIV/AIDS, VCT and good nutrition, as well as promoting the benefits of conservation farming and other income generating activities. Looking ahead, Malipenga has several projects he hopes to implement in his community. Some of these include growing vegetables, digging a well to support gardening activities and raising funds to meet the schooling requirements of children living with HIV/AIDS. The vegetable gardening project involved the rehabilitation of an existing irrigation system fed by the Kyafukuma stream. In this respect, a 1 kilometre length of earth furrow was stone pitched. There are currently 50 members in the cooperative, who are using permaculture principles and practices for the project. Two lead farmers were sent on a four-day course on permaculture at Rainlands Farm in Kitwe. They are now supervising the project and providing ongoing technical assistance to the group. Kansanshi Foundation provided farmers with a variety of vegetable seeds, manure for compost making, soil improvers and plants to use as insect repellents. Many of the women in the village have already started to sell their vegetables as a result of the project. The farmers will ultimately supply Kansanshi Mine s canteen. Rehabilitation commenced on the Kyafukuma Farming Institute, which had fallen into a state of disrepair. The institute will be used as a training centre for further development of livelihood projects in the area. F Q M S U S T A I N A B I L I T Y R E P O R T

62 Community Vetiver cultivation Location: Trident Spend: US$ 4,000 Trident identified 15 women as Vetiver out-growers and supplied them with root stock to cultivate over a twoyear period. The long-term vision is for the out-growers to supply the mine with mature plants for erosion control. Elizabeth Kapumba supplements her husband s income he s deputy headmaster at the local school by growing maize, cassava and sweet potatoes. Her agricultural success made her an obvious choice as a Vetiver out-grower for Trident. Agricultural and livestock support Location: Louebda, Khayata, Deman and Lemdenna in Mauritania Spend: US$ 19,640 First Quantum installed a new 20kVA genset with 12hp bore pump at Kouebda in This is supported with maintenance and training. A pump and borehole was replaced at Khayata and an agricultural scheme was established at Deman and Lemdenna for which First Quantum currently provides transport and fuel. 60 F Q M S U S T A I N A B I L I T Y R E P O R T

63 EDUCATION Kabwela teachers housing project Location: Kabwela Community School Spend: US$ 90,000 First Quantum s Kansanshi Mine completed the first of two houses for teachers at Kabwela Community School in The project is aimed at increasing the number of teachers, reducing the number of pupils per class and catering for additional grades at the school. The second house will be completed in Prior to occupying a newly built teacher s house at Kabwela Community School, Lubelenga Wisamba cycled 15km from the heart of Solwezi to the school every day. During the rainy season it was sometimes impossible to negotiate the muddy roads on his bicycle. Now he lives rent-free in a teacher s house built at the school. This has provided consistency for the children, who are now assured of a teacher being at school on a daily basis. F Q M S U S T A I N A B I L I T Y R E P O R T

64 t e s t i m o n i a l Adult literacy classes help boost trader s confidence Trader, Grace Mulubila decided to attend an adult literacy classes in Mushitala to enhance her literacy and numeracy skills so that she could improve her livelihood and read the bible in church. Mulubila says her three grown-up children are delighted with her decision to increase her knowledge and improve her reading skills. My children are highly encouraging and sometimes help me with my homework, she says. The new skills gleaned on the programme have helped Mulubila conduct business. She travels to the Copperbelt to buy rope, which she then sells to people for their wells. The knowledge I have gained on the course has helped me negotiate better and improve my business skills. I can already see the difference it has begun to make to my business, she says. Being on the programme has helped Mulubila and her fellow learners in innumerable ways. We can interpret the labels on products in the stores, understand school reports and open bank accounts. In addition, we have gained a better understanding of the need for family planning and can advise our children with more authority on how to make better decisions with their lives, she says. Head teacher at Mushitala Basic School, Chikangu Tonny, says the programme is flexible to accommodate the agricultural demands on participants throughout the year. Many of the course participants need to be in the fields at certain times of the year. When this happens, there will be a notable drop in attendance. As soon as the planting or harvesting is complete, they re back in the classroom, he says. 62 F Q M S U S T A I N A B I L I T Y R E P O R T

65 Solwezi Skills Training Centre Location: Solwezi Spend: US$ 402,424 First Quantum s Kansanshi mine assisted the Solwezi Skills Training Centre with funding to complete the construction and equipping of its metal fabrication and welding workshop. The programme, which is aimed at 18 to 20-year olds, is expected to welcome its first intake of 20 students in February Adult literacy project Kabwela, Kamatete, Kyafukuma, Kabulobe and Mushitala Spend: US$ 3,547 In 2011 Kansanshi s adult literacy project was rolled out to two additional settlements in the close proximity to the mine Kabulobe and Mushitala. The adult educators trained to run classes for adult learners in their respective communities are incentivised by means of a monthly stipend from Kansanshi. Education initiatives in Peru Location: Haquira Spend: US$ 789,000 Education is one of the clearest paths to developing sustainable initiatives to improve the livelihood of local communities directly influenced by the Haquira Project in Peru. First Quantum currently provides the following support: School teachers in agreement with regional authorities, the Company provided funding to support the hiring of 27 school teachers to serve at different schools on districts that are in close proximity to the Haquira Project. School supplies at the beginning of the school year, basic school packages were provided to kindergarten and primary school pupils in the project s direct area of influence. Transportation to encourage increased attendance at schools, transport has been provided from communities to local schools where the schools are located far from communities. Scholarships 50 scholarships in further education provided for local young people. F Q M S U S T A I N A B I L I T Y R E P O R T

66 ENTERPRISE DEVELOPMENT Local Business Development Activities Location: Zambia, with the emphasis on North West Province Spend: US$ 150,000 While Kansanshi mine makes a significant contribution to the Zambian economy through direct taxes, royalties, local taxes, other duties and levies and employment, it realised it could further influence the economy and enhance the living standards of the population by having a pro-active Local Business Development Plan in place. In this respect a Local Business Development Plan was formalized in March 2011, which saw a significant increase in activity, commitment and funding. The following were the major activities in 2011: Kansanshi continued to select local (i.e. Zambian) suppliers and contractors, wherever possible, as long as they were competitive in terms of price, quality and delivery. Kansanshi liaised closely with the North West Chamber of Commerce (NWCC) to organise and sponsor three workshops on the mine s Safety Standards, Equator Principals and Zambian Labour Law. This was to assist NWCC members in meeting the mine s procurement and contract requirements. The workshops were attended by a total of 108 participants. Kansanshi continued to advertise its supply requirements through the NWCC where they were within the capacity of provincial suppliers. It must be noted that the capacity of provincial suppliers is generally limited. In 2011, the mine advertised 498 supply requirements and advertised eight supply contract tenders through the NWCC. Kansanshi continued to build the capacity of civil engineering, construction and service supply companies at a provincial level and continued to utilize, wherever possible, provincial companies for such activities. During 2011 Kansanshi tendered 73 construction, civil engineering and service type contracts through the NWCC. Using a definition of a minor contract as less than US$ , then all suitable minor contracts were advertised through the NWCC and the vast majority were awarded to provincial based companies. Kansanshi noted the limited capacity of many of the provincial based contracting companies and in late 2011 commenced a new initiative of Local Contractor Training. In order to build capacity the mine organised and fully sponsored three intensive five-day courses incorporating Estimating and Tendering, Reading / Interpreting Construction Drawings, Planning and Organising a Construction Project, Concrete Technology and Quality Control. In order to build capacity amongst the micro, small and medium enterprises in the province Kansanshi organised 64 F Q M S U S T A I N A B I L I T Y R E P O R T

67 t e s t i m o n i a l Petronella Wapamesa Local small enterprise owner learns to manage business better Micro enterprise owner, Petronella Wapamesa, who sells vegetables at the Solwezi Market, gained insight into how to manage her finances better and run her business more effectively at a Local Business Development workshop organised by Kansanshi Mine. Born on the Copperbelt, Wapamesa says she has been selling vegetables for seven years. I have five children between the ages of four and 18-years to support. I have to make sure I put food on the table and take care of school requisites, clothing and medical expenses, she says. Wapamesa rises every morning at 05:00 to set up at the market at 06:00 and works until 18:00. On the course, I learnt to set aside some of my profits and use the remaining money for my home needs. This has really helped me as I have been able to build up a small capital amount, she says. Wapamesa is one of 1,797 participants, who attended one of the 44 Local Business Development courses run by Kansanshi Mine in The course covered topics such as Business Choices, Writing Business Plans, Managing Money and Customer Relationships. F Q M S U S T A I N A B I L I T Y R E P O R T

68 44 local business development workshops, which were attended by 1,797 participants. These workshops were primarily aimed at micro enterprises and included topics such as Business Choices, Writing Business Plans, Managing Money and Customer Relationships, amongst others. Development of Local Business and Economic Opportunities Location: Haquira Project, Peru Spend: US$ 250,000 First Quantum has engaged Peruvian mining consultants to report on and assist with the development of sustainable business and economic initiatives for the communities most likely to be impacted by the Haquira Project. One of the most important aspects of this is the development of local business and economic opportunities. The objectives of the study include: Identify the current status of the local businesses within the area of influence of the Haquira Project with regards to legal, tax, labour, organisational and managerial issues. Identify the business skills of the owners and representatives of the local businesses with regards to administration and management. Identify probable investments in the most dynamic economic sectors of the regional market. Improve understanding of the local population and authorities of the importance of improving their technical understanding and business skills. Elaborate a proposal for the implementation of the first phase of a Business Assistance Programme, which will register local businesses, conduct a baseline of skills of local businesses, explore the market with regards to the economically active sectors and set a Plan for Technical Assistance according to the specific demand required by local businesses. Even at this relatively early stage of the project, First Quantum actively seeks, wherever possible, to use local businesses that are in embryonic form in most of the local communities. The main business areas used so far include a food service provider for the exploration camp, a clothing manufacturer for local schoolchildren, the hiring of vehicles for exploration activities, and utilisation of local transport companies for the transport of local schoolchildren to their various places of education. First Quantum has engaged industry specialists to survey and make capacity-building recommendations for the local food service provider, has hired tailoring specialists to train the clothing manufacturers run by local women, and actively co-operated with the vehicle hire entrepreneurs to engender the commercial aspects of the various contracts and instill a culture of safe and responsible vehicle hire. 66 F Q M S U S T A I N A B I L I T Y R E P O R T

69 t e s t i m o n i a l Loreen Nambuka Solwezi entrepreneur hopes to use newly learned skills to expand business Loreen Nambuka has been selling clothing, shoes and suitcases from her shop at Solwezi Market for the past 10 years. With the profit she has made over the years she has helped contribute to the family income, provided support for relatives and built a house, which she lets out. A mother of five children ranging from three to 25 years, Nambuka attended a Local Business Development workshop with about 50 other entrepreneurs where she learned fundamental business and money management skills. She says attending the business classes has helped her understand the importance of banking and managing her money more carefully. I ve also gained insight into how to approach the bank for a loan, how to plan for the future and how to deal with customers better, she says. With her newly learned business skills, Nambuka hopes to expand her business further into the sale of cutlery, kitchenware and pottery. At the moment, I have the expansion plans in my head, but I hope to translate them into reality soon, she says. F Q M S U S T A I N A B I L I T Y R E P O R T

70 INFRASTRUCTURE INFRASTRUCTURE Solwezi Airport runway construction Location: Solwezi Airport Spend: US$ 4,804,048 In 2011, First Quantum Mining & Operations Limited (FQMO) Roads Division began construction of a new 2,700 metre-long Code 4c runway at Solwezi Airport in Zambia for the Department of Civil Aviation, to replace the old 1,300 metre-long runway that has reached the end of its useful life. Ancillary works included the apron and taxi areas, storm water drains and perimeter security fence. Currently only relatively light aircraft can land at Solwezi Airport, but after the new runway is fully opened in November 2012 it will be possible to land larger aircraft such as Boeing 737 and Airbus 320 planes. First Quantum hopes the Solwezi airport will eventually become an international airport. Total project cost is US$9,863, F Q M S U S T A I N A B I L I T Y R E P O R T

71 Water wells Location: Solwezi and surrounds Spend: US$ 60,000 In 2011 First Quantum s Kansanshi mine constructed 14 water wells in various communities in a 50km radius of Solwezi. Improving access to water for local communities is an ongoing project for the mine. Israel community school and health post Location: Israel Community, Solwezi US$ 370,000 Kansanshi provided funds for the construction of a classroom block and teacher s house, as well as a health post and staff house. This is aimed at improving access to healthcare and education. F Q M S U S T A I N A B I L I T Y R E P O R T

72 Widening of the Akjoujt-Nouakchott road Location: Akjoujt to Nouakchott Spend: US$ 3.8 million First Quantum commenced rehabilitation of the Akjoujt - Nouakchott road in 2010, which is scheduled for completion in The road is an important link between the capital, Nouakchott, and Inchiri Province. The road is being widened from six metres to seven metres to accommodate heavy traffic and improve access to Akjoujt. It is also expected to contribute to a reduction in motor accidents. The local population has benefitted considerably from reduced transport charges and a reduction in time spent on the road between Nouakchott and Akjoujt. In addition, some small businesses have begun to flourish as a result of the improved access between the two areas. House rehabilitation project Location: Akjoujt Spend: US$ 3,680,505 (2010 and 2011) In 2011, 128 houses were rehabilitated in Akjoujt with a view to providing employees with improved accommodation and enhancing the aesthetics of the town. 70 F Q M S U S T A I N A B I L I T Y R E P O R T

73 School rehabilitation in Akjoujt Location: Akjoujt Spend: US$ 78,000 Guelb Moghrein commenced with a school renovation programme in Akjoujt in The aim of the programme is to provide a more enjoyable and rewarding learning experience for children and to motivate teachers. The most recent school to be rehabilitated is School 5, which was completed in May Rehabilitation of Mukulungwe East Co-operative Road Location: Mukulungwe, Zambia (Bwana) Spend: US$ 6,000 Bwana operations in Ndola closed in late-2009, but every effort is being taken to ensure mine closure is conducted in a sustainable manner with no serious residual impact on the biophysical and social environments with particular focus on the communities living around the mine operations. The Little Munkulungwe East Farmer s Co-operative is a group of 15 farmers living across the Munkulungwe natural stream, which drains the southeast part of the mine operation area adjacent to the tailings storage facilities. The stream forms part of the major ground and surface water monitoring regime as part of the mine s statutory compliance requirements. The farmers living in this area form part of the stakeholders who need to F Q M S U S T A I N A B I L I T Y R E P O R T

74 know how the post mine activities will affect their livelihood in future. The mine conducted two studies aimed at ensuring that groundwater and soil in this area is safe for the livelihood of the local communities. These research findings were communicated to all stakeholders. School maintenance Location: Haquira Project, Peru Spend: US$ 50,000 First Quantum provides maintenance support to local communities near the Haquira Project in Peru. This involves creating additional school rooms, renovating roofing or providing windows, doors or chairs for students. Water supply pipeline Location: Huanacopampa and Ccahuanhire communities, Peru Spend: US$ 160,000 First Quantum constructed an eight kilometre water supply pipeline for the benefit of two communities - Huanacopampa and Ccahuanhire - in close proximity to the Haquira Project. Over 150 families benefit from the project, which reduces the risk of illness by contamination of local supplies by agricultural and farming activities. 72 F Q M S U S T A I N A B I L I T Y R E P O R T

75 COMMUNITY Emergency Response Drills Location: Kamatete and Kambeu Spend:US$ 4,000 Kansanshi follows international best practice in the design and implementation of offsite emergency response plans for communities in close proximity to the mine. Community safety committees are trained on basic emergency response measures and drills conducted annually in the identified communities. In April and August 2011, emergency drills were conducted in Kamatete and Kambeu communities respectively. Economic displacement and resettlement Location: Kansanshi Spend: US$ 3 million At the end of 2010, Kansanshi commenced with preparations for the construction of a new Tailings Storage Facility (TSF ). Land identified for the new TSF was located within the existing mine license area, but outside of Kansanshi surface rights. The mine began the preliminary work required for an Environmental and Social Impact Assessment in the same year (for project approval by the Zambia Environmental Management Agency), as well as any identified economic displacement or resettlement that may result from the project. In this respect, Kansanshi subscribes to the Equator Principles and follows the International Finance Corporation s (IFC) Performance Standards in terms of resettlement. Following public consultation, a comprehensive survey of the project footprint was conducted and it was established that 267 farmers would be affected, as well as a number of farm structures (no primary dwellings) and some small scale quarrying activities. A Resettlement Working Group (RWG) was formed to agree on an entitlement framework for compensation and ensure that information was disseminated back to the other project-affected households. F Q M S U S T A I N A B I L I T Y R E P O R T

76 An aerial view of conservation farming plots near Kansanshi mine in Solwezi. Replacement land Community members identified an area that would be suitable for farmers, who wished to receive replacement land. The land was cleared and Kansanshi rolled out a Conservation Farming project for the farmers in In addition to technical assistance relating to Conservation Farming, all displaced households will receive two years of maize seed and fertiliser support. Compensation payment Before the onset of compensation payment, Kansanshi conducted money management workshops for the affected households. In addition, the mine asked local banks to come and present their services to the RWG, which selected NATSAVE as their bank of choice and a bank account was opened for each household. Quarrying activities Kansanshi has engaged SNV to work with a number of small-scale quarryers who were carrying out quarrying activities in the area. In conjunction with SNV, the quarryers have identified alternative livelihood options that Kansanshi will help to support. In addition, Kansanshi pledged US$100,000 to each of the two communities that were significantly impacted. This will be utilised for the construction of health posts and staff houses. 74 F Q M S U S T A I N A B I L I T Y R E P O R T

77 t e s t i m o n i a l Overseeing day to day conservation farming in Solwezi Disimbika Laidon Musheka is area supervisor for 44 people from Kabwela and Mbonge, who opted for replacement land as part of Kansanshi s resettlement process. Musheka was identified by Kansanshi s conservation farming team as having the right skills to oversee the day to day agricultural tasks for the farmers. To prepare him for the role, Kansanshi funded training at the Foundations for Farming Institute in Harare where Musheka honed his skills and adopted the conservation farming principles embraced by the mine. Born and raised in Solwezi District, Musheka studied at the Zambia School of Agriculture for two years before spending three years at the Congo School of Agriculture and one year at the Cooperative College in Zambia. He has garnered numerous other qualifications over the years in tractor mechanisation, supervision, extension methodology and organic farming. Disimbika Laidon Musheka Musheka s extensive training and agricultural experience (AGRIC, World Food Programme) made him the perfect choice to oversee the farmers daily progress on behalf of the Kansanshi Foundation team, which works closely with him to ensure the success of the initiative. Every day he oversees various agricultural processes such as cultivation, mulching, planting, crop dessification, weeding and harvesting at one of Kansanshi s trial conservation farming plots. He also gives farmers advice on how to improve their yields using conservation farming methodology. He is particularly knowledgeable when it comes to farming maize and a variety of beans. Musheka says Kansanshi employed agricultural specialists to take soil samples and conduct tests to ensure people were resettled on land with a similar composition to the land they had farmed prior to resettlement. In addition, the Company committed to providing seed and fertiliser for the first two years after resettlement, he says. F Q M S U S T A I N A B I L I T Y R E P O R T

78 Guelb Moghrein provides drinking water at no charge to camel herders and people living along the 114 kilometre water pipeline from Bennichab to the mine and Akjoujt. Economic displacement and resettlement Location: Trident Project Spend: US$ 637,663 (total compensation estimated at US$2,765,910) Trident Project Akjoujt Water Supply Location: Akjoujt Spend: US$ 918,000 The supply of water to Akjoujt was the single largest contribution to the community by Guelb Moghrein. In 2011 it supplied between 900 and 1 300m 3 per day of water to the town, depending on the time of year. Significant assistance was also provided to the more remote town of Bennichab with an estimated 300m 3 per day provided to the town and another estimated 300m 3 per day to communities along the pipeline for human and livestock populations. In addition, the mine provided US$ worth of water bladders to communities along the Nouakchott to Akjoujt road. Akjoujt Mosquito Control Programme Location: Akjoujt Spend: US$ 8,640 Mosquito control spraying in mosquito prone areas and to exposed water bodies was conducted in F Q M S U S T A I N A B I L I T Y R E P O R T

79 Akjoujt Waste Management Location: Akjoujt Spend: US$ 69,000 Guelb Moghrein is working with Akjoujt municipality to remove refuse from the town and have it managed in a secure disposal area. This initiative also required a major investment in education and training. Cultural and Sports support in Mauritania Location: Mauritania Spend: US$ 96,755 Guelb Moghrein sponsored various sporting and cultural events in Mauritania in 2011 including the Akjoujt Football Team, National Petanque Team, Akjoujt Petanque Tournament 2011, Akjoujt Chess Teams, the Akjoujt Festival, three pilgrimages to Mecca and food for poor families during Ramadan, as well as renovations to mosques. Southern Noongar/Wagyl Kaip Aboriginal Agreement Location: Western Australia Spend US$ 1,057,142 annually Ravensthorpe Nickel Mine has a long term agreement to work with the Southern Noongar/Wagyl Kaip Aboriginal peoples to provide employment and training pathways and develop community programmes for consistency and F Q M S U S T A I N A B I L I T Y R E P O R T

80 t e s t i m o n i a l Local chess champ nurtures love of the game in Akjoujt children Twelve Akjoujt boys and girls between the ages of 13 and 14 years competed in a national school s chess competition held in Mauritania s capital city, Nouakchott, in They were placed first, second, third, fourth, sixth, seventh and eighth, garnering the lion s share of individual and team prizes. What makes their story so extraordinary is that these children only received a few months training before travelling to Nouakchott to compete at a national level. The secret to their success? They were trained by Guelb Moghrein employee, Mohamed Ould Mohamed Abderahmane, who is 2005 Mauritanian chess champion and Chairman of the Regional Chess League in Inchiri Province. Abderahmane says the children he trained had no prior chess experience. They were selected for the chess programme based on their academic achievements, particularly in mathematics and science. I taught them the basics of the game and after two months we received an invitation from the National Chess League to compete in the schools competition, he says. Not sure if the children were ready to take part in a competition, Mohamed Ould Mohamed Abderahmane nevertheless decided to take a chance. I gave them two weeks intensive training and with the help of the mine, I took them to Nouakchott where they walked off with all the prizes. We were all amazed, he says. The mine paid for the transport, accommodation and competition fees for the 12 talented children from a village in the middle of nowhere as Abderahmane puts it to compete in the capital city. I motivated the children in the same way I motivate myself I told them not to be afraid of making mistakes. Now one of these children is beating some of the senior players in the league, he says. Abderahmane s own passion for chess began when he was 10 years old and he saw his cousins playing chess. I d only played draughts until then, but I was impressed with how the chess pieces moved. I wanted to play there and then, but my cousins just laughed at me, he says. Abderahmane decided to learn and bought himself a tiny chess set at the market. The cousin who laughed at him eventually agreed to teach him. It took Abderhamane three days to learn the game and his cousin hasn t beaten him since. This dedicated chess player s story at Guelb Moghrein is not dissimilar to his chess story. I joined the mine in 2006 as a translator in the gold plant and a few months later I was appointed shift translator at the copper plant, he says. Abderahmane s language skills and his understanding of the gold and copper plants soon saw him move to a newly formed training division where he worked until In April 2010 he moved to the safety department where he now works as the Safety Superintendent. So, does he still play chess? I recently took part in a chess tournament and beat all my opponents, he laughs, but, to be honest, since commencing my job at the mine and starting a family I have not been able to devote the same amount of time to the game that is required to be national champion. 78 F Q M S U S T A I N A B I L I T Y R E P O R T

81 English. This year has seen the appointment of an Aboriginal Employment Officer and a Community Development Officer, funded by Ravensthorpe and working for the Southern Noongar/Wagyl Kaip to develop employment and community development programmes. Community Support Programmes Location: Hopetoun, Australia Spend US$ 41,000 (cash and in-kind) Ravensthorpe Nickel Mine sponsored the Hopetoun Progress Association Summer Festival to the value of AUS$ 5,000; a Seniors Mine Visit to the value of AUS$ 1,000; the Australian National Rowing Championships, supporting young West Australian s health and wellbeing, to the value of AUS$ 32,000; and the Tour de Heart charity bike ride from Esperance to Perth to raise money for HeartKids, a support group for families of children with heart disease, to the value of AUS$ 3,000. Reindeer herding co-operative Location: Sodankylä Community, Petkula, Lapland Spend: US$ 47,200 The reindeer herding co-operative located in the same areas as First Quantum s Kevitsa mine site is known as the Oraniemi Co-operative. The Oraniemi Co-operative s winter extraction fence is located north of the mine site. Although Kevistsa Mining owns the land and the mine site covers only 0.5% of the Oraniemi Co-operative s area, the mine and Oraniemi Co-operative signed an agreement to compensate for herding lost. These payments began in 2009 and are made annually. Capacity building programme Location: Haquira Project communities, Peru Spend: US$ 50,000 Adult education is provided for community members who could not complete their schooling. On graduating they will be able to enroll for technical level education. First Quantum provides technical training in fields such as driving and carpentry. A summer school programme was introduced during the school vacation to boost educational levels amongst local children. Culture and ethnicity Location: Haquira Project communities, Peru Spend: US$ 25,000 First Quantum is cognizant of the cultural richness of local communities in Peru and supports dance contests, local celebrations and the celebration of community anniversaries, as well as local and district football tournaments. F Q M S U S T A I N A B I L I T Y R E P O R T

82 social expenditure The following table summarises the social expenditure at First Quantum s operations in Social expenditure for the year was US$35,629,393 or 6.7% of net earnings after tax and a 230% increase over social expenditure in Social Expenditure First Quantum site Social expenditure (US$) Kansanshi 17,074,979 Guelb Moghrein 10,408,209 FQMO Zambia 3,821,321 Haquira 2,762,394 Ravensthorpe 1,068,192 Lonshi 361,750 Bwana Mkubwa 94,162 Kevitsa 38,386 TOTAL 35,629, F Q M S U S T A I N A B I L I T Y R E P O R T

83 Place of Incorporation and Head Office 8th Floor 543 Granville Street Vancouver, BC Canada V6C 1X8 Tel: Toll Free: Website: corporate directory United Kingdom 1st Floor Tennyson House Great Portland Street London, England W1W 5PA Tel: Fax: Australia P.O. Box 1407 Level 1, 24 Outram Street West Perth, Western Australia 6005 Australia Tel: Fax: Zambia P.O. Box Ndolo, Zambia Tel: Fax: Mauritania BP 5045, Nouakchott, Mauritania Tel: Fax: Finland Box 800, World Trade Centre Aleksanterinkatu Helsinki, Finland Tel: Fax: Peru Minera Antares Psje. Simón Bolívar 101 Yanahuara Arequipa, Perú Tel: F Q M S U S T A I N A B I L I T Y R E P O R T

84 1 F Q M S U S T A I N A B I L I T Y R E P O R T