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Community Action Plan | Support for Local Infrastructure and In-Country SpendingSupport for Educational Initiatives | Support for Skills Transfer | Support for Infrastructure Improvements

Community Engagement
At Mandalay Resources, bringing our values into our day to day decision making and engagement with employees and the community is key to corporate responsibility. Our efforts are cumulative and continuous as we foster ongoing communication and engagement across all our sites, while maintaining cultural norms.

Mandalay Resources aims to be an effective community partner, such that any contributions to community events or activities are meaningful to the community, and provide positive impacts in the community over time. Mandalay will measure the effectiveness of its LIVING OUR VALUES programs using the three main categories above and provide case study examples of unique ways in which our mine sites contribute to the local community.

Community Action Plan
Mandalay is developing a community engagement process for all of its mine sites so that we have a common and shared context to engage meaningfully with the members of our community. Our goal is to provide a framework to ensure we meet our vision to operate safely, in an environmentally responsible manner, while developing a high level of community and employee engagement.

Our Community Action Plan Objectives:
1. Facilitate process for all mine sites to develop common elements in community relations programming & meet an overall governance standard for Living our Values and
2. Ensure readiness for possible conflicts and crisis management by those interfacing with external stakeholders.
3. Provide a means to share practices and lessons learned among sites

In 2015, this effort has been rolled into the Company’s risk management initiative. Year-over-year, Mandalay has made progress in this area. In 2014 we conducted a comprehensive review of our community, environment and engagement processes across all sites and determined which gaps we needed to fill. These efforts have resulted in a new employee engagement initiative and guidelines for Community Action Plans (“CAP”) that will align our approaches across all our sites, while still ensuring local decision making and leadership. These activities are communicated to the Board of Directors’ Safety, Health and Environment Committee (“SHEC”) on a regular basis.

A major achievement for Mandalay in 2015 was the development and communication of CAP guidelines for each mine site. Each CAP should be commensurate with that mine or project’s stage of development and will be benchmarked against 20 Mandalay guidelines. Currently, mine sites are progressing toward a new 2016 CAP.

Click here to view our 20-point site-level Community Action Plan

We believe that CAPs create a proactive and planned approach to our engagement with community, government and NGO members, ensuring that communications are ongoing and proactive. The ultimate goal of establishing a CAP is to ensure we meet our vision of operating safely, in an environmentally responsible manner, while developing a high level of community and employee engagement.

Community engagement at all sites has been incorporated into our annual planning process with guidelines provided to the sites on how to successfully implement each stage of the process.

In 2016, Mandalay will extend its Employee Resolution Process to the communities providing a similar, focused environment in which community issues are worked until they are resolved. Each General Manager is accountable for establishing a local Community Issue Resolution Process issue intake, response, and resolution. Community members always have the option of using the Whistleblower process.

Also in 2016, the Company will initiate Community surveys across all mine sites to better understand the degree to which our presence is valued.

Support for Local Infrastructure
We believe that having high-quality local infrastructure can both help the community and better facilitate our operations.

In-Country Spending
Mandalay contributes heavily to the economic health of the communities in which it operates by its spending on: salaries and wages for employees; goods and services from nearby suppliers; and royalties, fees and taxes to host governments. In each of the last three years, Mandalay spending has totalled approximately $108 million to $145 million per year, as shown in the chart below.

 

Economic_Value_to_Host_Country

Starting in 2016, Mandalay will comply with new regulation pertaining to the EITI, the Extractive Industry Transparency Initiative. This legislation requires Mandalay to track and publicly disclose payments to governments.

Support for Educational Initiatives
Mandalay believes that education is an important component of a community’s infrastructure. The Company seeks to help where they can to support educational institutions, to both support mining and geological knowledge, but to also improve the educational experience where necessary.

Mining Presentation for Primary Students
In December, 2015, Mandalay Resources gave an introduction to mining presentation to approximately 25 students in Grade 4 at Toronto, Canada’s Davisville Public School. Topics covered were: geology, uses of precious metals, stakeholder relations, Mandalay’s operations and its values, and the future of mining. Students were also able to examine rock samples from all of Mandalay’s producing properties and learn about Mandalay’s support in the Association of Women Artisans’ initiative in Chile Chico, Chile. This was the second time Mandalay has provided this presentation to the Davisville Public School.

Giving to Kalianna School
On March 4, 2016, Mandalay Resources Costerfield Operations sponsored the Kalianna School in Bendigo, Victoria, Australia. The Kalianna School has approximately 230 students and 65 dedicated staff and aims to deliver differentiated learning programs for all of its students. The Kalianna School provides education for children who have physical, mental or developmental needs. Mandalay saw an opportunity to assist the school and made a donation of over $6,700. The school put the funds toward the purchase of new uniforms for their cheerleading team, who attended (and won) the Victorian State schools championship competition. The money will also be used to purchase specialized play equipment for the school.

University of Toronto Rotman School of Management
The Toronto office is working with the Rotman MBA NRG group (Natural Resources student group) to encourage an interest in the area of mining investment. With two employees holding MBAs from Rotman, the Toronto office opted to increase its involvement by 1) supporting an Independent Study program for one student currently engaged in a project for Mandalay’s Björkdal site. 2) In March 2016, Mandalay sponsored the first-ever mining investment case competition to enable interested students to hypothesize on the best way to deploy investment capital in the industry. The winning team was a group who was able to generate a return of 200% during a five-year period with a $100 million investment. Winners were: Nicholas Bergeron, Ariel Olyan and Alex Zhang. The winners were awarded $1,000 and all-access passes to the PDAC convention held in Toronto. Below are photos of the event and organizers (left) and the winning team (right).

Rotman_1Rotman Mandalay Investment Case Competition

Geochemical Study and Soil Sampling at Cerro Bayo
Between 2010 and 2014, Applied Geochemistry Geology students from the University of Chile (F.C.F.M, Santiago) conducted studies of soil geochemistry at Cerro Bayo. The students, guided by Professor Brian Townley and staff Exploration Geologists at Compania Minera Cerro Bayo studied areas covered by sediments that have the potential to host mineralization at depth.

The areas selected for study were Horqueta, Pampa Estero, Plateau – Aguila and Pampa Mallines. The Company was responsible for the logistics of the students, teacher and monitors, as well as laboratory expenses. The objective of the studies was to find trends in soil chemical elements associated with potential mineralization. Fieldwork lasted approximately ten days and the data was processed and interpreted during the course of the school year, resulting in a final report. Soil sampling and geostatistical study were carefully executed, but unfortunately without positive results.

Support for Skills Transfer
Local entrepreneurs are vital to the economic health of a community. Entrepreneurs create jobs and wealth within the community that bolsters its economic infrastructure. Mandalay believes in supporting and encouraging the entrepreneurial spirit in the communities in which it operates.

Supporting Local Artisans in Chile Chico

IMG_0887  IMG_0915

Mandalay Resources takes great pride in contributing to the lives of women in Chile Chico. Since 2013, Mandalay has supported an initiative to host an Artisan’s Fair in Chile Chico. This initiative originated when a group of women artisans in Chile Chico asked Mandalay for a physical place to create and sell their products, generating an income for their families.

During 2014, with the support of Mandalay Resources, 19 artisans formed the Association of Women Artisans, and the Company constructed a new building for the artisans to sell their products, and hold the Artisans’ Fair. This project gave the Association of Women Artisans the opportunity to generate a working organization which continues to benefit themselves, their families and the wider community, helping strengthen local commerce, tourism, and the empowerment of women in Chile Chico.

Currently, the workshop is open every day of the year, selling its available leather crafts, decoupage, textiles, vegetables, flowers, etc. for local people and visitors who come to Chile Chico. Mandalay looks to continue to create value for the community and strengthen its commitment to the people of Chile Chico.

During the 2016 PDAC conference, Mandalay showcased the work of the Artisans Association and raffled a few items for guests.

Chile Chico artisans collection

Support for Local Infrastructure Improvement

Reviving a School, Revitalizing a Community

The team at Björkdal has been active in rebuilding an old school in Sandfors village. Rather than be destroyed, the school was converted into a multipurpose, multi-use facility for the community. The school has been rebuilt into a contractor/employee hotel for the mine. The Björkdal team also refurbished the community-run kindergarten facility so that the facility could stay in the village instead of moving all the children elsewhere. Also, the kitchen was rebuilt to the modern specifications of a restaurant and franchised to a contractor who started a restaurant that serves the kindergarten their daily meals and gives the mine employees/local community access to the lunch menu.

Community Medicine in Chile Chico
Cienmanos Foundation brings together the work of Chilean medical professionals to help reduce medical issue related waiting lists of isolated areas of the country, such as Chile Chico. This initiative aims to meet the health requirements of more than 700 people per year in the community.

This initiative, financed in large part by Mandalay subsidiary Compania Minera Cerro Bayo, brings in specialists from other parts of Chile, removes high priority patients from waitlists at the hospital in Coyhaique, Chile, and gives them the specialty medical care they need. The delegation is composed of 15 professionals, 3 administrative personnel, and 12 experts from the areas of gynecology, radiology, dermatology, orthopedics, otolaryngology and ophthalmology.

Mandalay Donates A$5,000 to headspace Bendigo to Help Homeless Youth
Mandalay Resources Costerfield mine donated A$5,000 to headspace Bendigo, to install a shower and buy toiletries for young people in need. Mandalay Resources’ Costerfield General Manager Andre Booyzen said the Company and staff were delighted with the opportunity to help headspace support the Victoria, Australian community’s youth.

“Many of our employees are parents and caretakers of kids and teenagers, and understand some of the challenges that young people and families may face,” he said.

“We were surprised to hear that kids in our town and region were struggling with access to basic facilities, such as a regular hot shower.

“Our region has many great opportunities for a lot of us, but it’s important to recognise that there are people in our community that need support. headspace provides a great range of services and care and the fantastic team there needs to be congratulated for their great work and commitment.”

headspace is the National Youth Mental Health Foundation providing early intervention mental health services to 12-25 year olds, along with assistance in promoting young peoples’ well-being. This covers four core areas: mental health, physical health, work and study support and alcohol and other drug services.

To help headspace Bendigo, call +61 3 5434 5345.