Opportunities and risks
Principal social and economic opportunities and risks from our operations
| Activity/issue | Social and economic opportunities | Social and economic risks |
|---|---|---|
| Indigenous peoples and cultural diversity |
Employment opportunities
Support for initiatives to protect heritage or build social capacity Improved state protection or services |
Marginalisation of indigenous or local communities
Changes to traditional culture and customs Damage or reduced access to sacred sites |
| Resettlement |
Improved housing, infrastructure and services
Improved income generation opportunities Ongoing support for health, education and social wellbeing of resettled communities |
Social disintegration or cultural breakdown and general disruption of moving to a new location
Loss of access to resources and employment if poorly managed |
| Public health |
Contribution to improved healthcare structure
Health and wellness programmes that extend to employees' families and communities |
The introduction or increase of infectious diseases, emissions, noise and dust |
| Corporate social involvement | Sustained support for initiatives that bring 'shared value' to communities and Xstrata | Risk of dependency on company-funded projects |
| Socio-economic development |
Royalties and taxes paid to local, regional and national governments
Returns to shareholders including pension funds and other capital providers Contribution to improved local infrastructure and services, such as roads, schools and hospitals |
Disputes between communities and governments over the distribution of funds from mining
Influxes of people to work at our operations, leading to increased crime rates and social problems, such as substance abuse, increased traffic and pressure on local services |
| Procurement and enterprise development |
Spending on goods and services with priority given to local companies
Promotion of enterprise development |
Loss of traditional economic activities
Disputes with Xstrata or between suppliers over budget allocation and spending decisions |
| Job creation and skills development |
Employment opportunities, particularly for local people
Wages and benefits paid to employees and contractors Improved employees' skills and ability to secure good jobs in the mining industry or in other sectors Indirect job creation, e.g. in service industries Establishment of additional companies in the region offering further employment opportunities |
Increased migration to a region
Inflated housing, food and service costs caused by wage increases and higher demand Loss of employment and investment following mine closure Risk of economic dependency on finite operations |