Community Investment Policy

INTRODUCTION

This Community Investment Policy is aligned with the Nevsun Resources Ltd. (‘Nevsun’) Code of Ethics, Anti-Bribery and Anti-Corruption Policy, Human Rights Policy, and supports our commitment to be a responsible mining company and make a positive, long-term, sustainable impact in the communities in which we conduct our business activities at all stages of the mine-life cycle. This includes conducting our business within a framework that promotes community involvement, community benefits and increases the quality of life for employees and their families.  We also aim to build capacity by sharing environmental and social experiences and solutions with local communities and regional and national governments.

The intent of this Policy is to help ensure that formal, consistent definitions, systems and guidance are in place to meet Nevsun’s strategic Community Investment objectives.  It sets out the minimum requirements for all Nevsun operations and projects, its employees and contractors, and should be implemented in accordance with the Company’s Code of Ethics and conducted in conjunction with the guidance contained within the companion Community Investment Procedure.

OBJECTIVES

Mining activity can play an integral role in stimulating social and economic growth in the communities where Nevsun conducts its operating and project business activities. The objectives of the Community Investment Policy are to ensure that:

  • All operating and project sites have an appropriate Community Assistance Program (CAP) in place which is responsive to national and regional development priorities of communities and stakeholders identified through stakeholder engagement activities and government priorities;
  • All operating and project sites make resources available commensurate with the efforts required to manage and maintain any annual CAP Plan;
  • All operating and project sites incorporate relevant aspects of their stakeholder engagement activities, specifically stakeholder mapping, and stakeholder perception and results of any risk assessment exercises, to ground and advise the CAP Plan; and
  • Employees and contractors are aware of the Nevsun commitment to strategic community investment and sustainable development as well as how these affect stakeholder engagement requirements which should be incorporated into operational decision making.

REQUIREMENTS

Nevsun will:

  • Support a workplace culture that is committed to providing lasting benefits to affected local communities through self-sustaining programs which enhance the economic and social health of its members;
  • Assign management responsibility to the development and maintenance of strategic community investment initiatives and sustainable development objectives;
  • Provide through its subsidiaries (contingent on subsidiary board support) sufficient financial resources, competent staffing/consultants and support required to fulfill this Policy commitment at its operations and project sites; and
  • Proactively communicate the composition and results of community investment programs, including dollars spent (or value contributed), community benefits, and impact on business to its internal and external stakeholders, including through its annual sustainability reporting process.  

Each operation or project site will:

  • Identify stakeholders impacted by its business activities and communicate openly and proactively with stakeholders* and establish a process appropriate to the project and context, through which to obtain their inputs, observations, and concerns regarding CAP investment opportunities;
  • Develop and implement a suitable CAP Plan based on participation with affected communities and government priorities that contributes to the economic and social wellbeing of the local community and builds local capacity;
  • Prioritize investment areas that the national and regional governments and local communities have identified as important, where both the company and community benefits, and where Nevsun can have a meaningful impact without creating dependency; and
  • Document a clear link between community consultation, CAP investment, and the long-term strategic business goals of Nevsun.

Community Assistance Program Plan

A Community Assistance Program (CAP) Plan will contain details and documentation regarding the following components, further detail for which is provided in the companion Procedure:

  • Community Investment Objectives
  • CAP Budget Allocation
  • Community Investment Priorities
  • Prioritization of Community Investment Opportunities
  • Monitoring, Tracking and Reporting
  • Continuous Improvement and Evaluation

DEFINITIONS

Affected Communities

This is defined as local communities and stakeholders’ that are directly or indirectly impacted by our operations and projects, and/or have the ability to influence our business activities in a positive or negative manner. These stakeholders are identified and prioritized as per Nevsun’s stakeholder mapping exercise.

Community Assistance Program (CAP)

The specific name to the subsidiary programs for the allocation of funds and associated support to local sustainable or community projects that are  in alignment with Nevsun’s Community Investment Policy. CAP will be guided by its ‘Plan’ – a document that outlines investment objectives, budget allocation, project priorities, monitoring, tracking & reporting as well as evaluation. 

Community Investment

Nevsun and its subsidiaries voluntarily provide contributions to affected stakeholder communities as a mechanism to address sustainable developmental priorities through private investment that are in alignment with Nevsun’s Community Investment Policy & Procedures.

Stakeholder Engagement

The process whereby Nevsun and its subsidiaries proactively reach out to those identified in the stakeholder mapping exercise.  The Company and subsidiary actively conveys important project information and seeks out stakeholder feedback as a mechanism to continually refine our operations to reduce impacts and enhance benefits.  Active and participatory stakeholder engagement plays a fundamental role in our ongoing ability to sustain our social license to operate in our respective jurisdictions.

Sustainable Development

In the context of community investment, sustainable development shall imply long lasting benefits to local communities that are impacted by our operations and to which their quality of life can be improved upon through either strategic private investment or through responsible private-public investment partnerships (the latter generally specific to Eritrea). 

References and Resources Used in the Development of this Policy and Companion Procedure:

  • Nevsun Resources Ltd.
    • Code of Ethics
    • Anti-Bribery & Anti-Corruption Policy
    • Human Rights Policy
  • AA1000 (2011) Stakeholder Engagement Policy
  • Global Reporting Initiative G4 Sustainability Reporting Guidelines
  • International Council of Mining & Metals (2012) “Community Development Toolkit”
  • International Finance Corp (2012) Performance Standards
  • International Finance Corporation (2007) “Stakeholder Engagement Handbook”
  • International Finance Corporation (2010) “Strategic Community Investment: A Good Practice Handbook for Companies Doing Business in Emerging Markets”
  • London Benchmark Group Community Investment Guidance Manual Volume 1: “Inputs- Assessing the Contribution”
  • The Mining Association of Canada “Towards Sustainable Mining”
  • OECD Guidelines for Multinational Enterprises
  • The Prospectors and Developer’s Association of Canada “PDAC E3 Plus Framework for Responsible Exploration”
  • United Nations Guiding Principles on Business and Human Rights