2011
AMBATOVY SUSTAINABILITY REPORT
15
Key Impacts, Risks and Opportunities
The Impact of Sustainability on Us
Many of the sustainability challenges for our stakeholders
are the same issues we face as an organization. If we do not
manage our sustainability commitments well, it can impact our
ability to operate.
Labour
2011 brought particular challenges related to labour and
demobilization. If the transition is not managed soundly,
the resulting high unemployment rates in surrounding
communities could have a negative effect on our relationship
with the local population. Throughout the year, we put in place
strategic programs to mitigate the impact of demobilization.
We know that demobilization will be a short-term issue, so
we have also prioritized a particular long-term challenge
related to labour. We require highly-skilled employees. We
also have a firm commitment to hire locally. Finding highly
skilled workers locally can be a challenge so we introduced
a number of key training and mentorship initiatives in the last
year to create a local team that can take the lead during the
operations phase.
Environment
We are obligated under the laws of Madagascar and our
financing agreement to meet stringent environmental criteria.
Compliance with these criteria can be expensive, but we have
carefully budgeted funds to ensure that we meet or exceed
the targets set for us. We have been working throughout 2011
to put in place environmental plans and programs that will
ensure we meet all requirements necessary not only for our
operational permits, but also to ensure that we are a leader in
environmental management in Madagascar.
Social
Finally, there are a number of social risks in Madagascar
that could impact our business. For example, we strive
for transparency, but there is risk related to corruption in
day-to-day business dealings. In 2011, we participated in
the first Extractive Industries Transparency Initiative (EITI)
reconciliation and remain committed to this initiative. We
were disappointed that Madagascar was suspended from
the process in late 2011. Nevertheless, we will continue to
participate in the EITI multi-stakeholder group and promote
the reduction of corruption through a range of initiatives
related to our financial and procurement processes.
We remain committed to managing these challenges, risks
and opportunities. Governance of sustainability-related risk
management is the responsibility of the Executive Committee
and the Environment, Health & Safety and Community sub-
committee. These committees meet quarterly to discuss
issues that have arisen over the period and authorize any
significant changes to our plans and management strategies.
