Part 4: Creating Sustainable Communities & Partnerships - PowerPoint PPT Presentation

Sustainability Webinar Series Part 4: Creating Sustainable Communities & Partnerships

Sustainability Series Part 1: Managing Mining’s Waste 31 July 2019 Part 2: Renewable Energy’s Role in Mining’s Future 22 August 2019 Part 3: Managing Water Resources 12 September 2019 Part 4: Creating Sustainable Communities & Partnerships 10 October 2019 Part 5: Rethinking Remediation & Rehabilitation 5 November 2019

Part 3: Managing Water Resources • Common water management challenges and emerging solutions • The use of sophisticated software systems and modelling to improve water management and environmental outcomes • Taking a data-driven approach to diagnosing and solving complex water resource challenges VIEW RECORDING

Today’s Speakers • Fiona Hartin, Community Relations Specialist and Genelle Scotts, Business Support Officer, Bengalla Mining • Nic Pollock, Chief Commercial Officer and Roberta Molson, Product & Implementation Manager, K2Fly • Rolf Fandrich, Business Development Director & Co-Founder, Voconiq

Community Relationships and Partnerships

Partners In Our Community

Community From Day 1 2019 marks twenty years since the Bengalla Mining Company first commenced operations in the Muswellbrook region. Bengalla was built on a set of core values instilled by our first General Manager, Roland Lee who personified the values of: Friendship • Getting the job done • Looking after your mates, and • Caring for your community • Putting people and community first is hardwired into Bengalla’s DNA and culture. 7

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Community Focus Areas Through our community focus areas we strive to be a valued member of the community providing measurable benefits to the local region. Our Community Focus Areas: Local Employment • Local Economic Development • Community Development • 9

Local Employment 10

Bengalla Apprentice Program Bengalla has a long history of developing local talent through our apprenticeship program with some apprentices going on to receive awards and furthering their career at the mine. As part of our growing commitment to our community Bengalla welcome four new apprentices to site every year.

Partnering with Education Earlier this year we partnered with the NSW Department of Education STEM program, SISP and together we ran a number of STEM activities at the Bengalla Homestead. 12

Local Economic Development 13

Entrepreneurs Program In 2018 we partnered with Austmine and the Federal Governments Entrepreneurs Program, in a first, to support local suppliers develop their business. 14

Community Development 15

Plans For The Future At Bengalla Mining Company we are always looking for ways to improve how we operate in all aspects of our business The Community Teams Plans for the Future: How can we do more • Digital Transformation • Deep diving into how social media •

For more information contact Name Fiona Hartin or Genelle Scotts Phone 02 6542 9500 Email community.relations@bengalla.com.au

ASX:K2F Global Factors Driving Change & Industry Response RESPONSIBLE INVESTMENT DRIVING CHANGE $1 in $4 Invested is now ESG driven* FINITE, DECLINING RESOURCES INCREASED ESG IN INVESTMENT DECISIONS INCREASING TRANSPARENCY IMPROVED DEMONSTRATE ACCESS TO ESG CAPITAL PERFORMANCE INCREASING EXPECTATIONS ON RESOURCE SECTOR ETHICAL INVESTING IMPROVED INCREASED SUSTAINABILITY FINANCIAL REPORTING RESULTS GROWTH IN SUSTAINABILITY REPORTING GAIN AND MAINTAIN SOCIAL LICENSE TO OPERATE *The US SIF Foundation's 2018 biennial Report on US Sustainable, Responsible and Impact Investing Trend

ASX:K2F Social License to Operate is the #1 risk TOP 10 BUSINESS RISKS FACING 2019 TRENDS: TOP 10 ISSUES MINING & METALS IN 2019-20 TRANSFORMING MINING 1. Rethinking mining strategy 2. The frontier of analytics and artificial intelligence 3. Managing risk in the digital era 4. Digitizing the supply chain 5. Driving sustainable shared social outcomes 6. Exploring the water-energy nexus 7. Decoding capital projects 8. Reimagining work, workers & the workplace 9. Operationalizing diversity & inclusion programs 10.Demanding provenance www.ey.com/en_gl/mining-metals/10-business-risks-facing-mining-and-metals www2.deloitte.com/au/en/pages/energy-and-resources/articles/tracking-the-trends.html

ASX:K2F Data Integrity to Corporate Integrity SUPPORTING SOCIAL LICENSE WITH TECHNOLOGY Regulatory Inputs Centralised Stakeholders & Integrated Obligations Software Land ‘Facts’ THE AGREEMENT ENGINE

ASX:K2F Data Integrity to Corporate Integrity A MINING COMPANY CASE STUDY

ASX:K2F Data Integrity to Corporate Integrity A MINING COMPANY CASE STUDY – an Aboriginal Heritage example 2013 SILOED, DISPARATE , INCONSISTENT RECORDS 2018 ACCOUNTABILITY, TRANSPARENCY, INTEGRITY Rapidly growing business Rapid growth continues > 10 discrete, often manual, management 1 centralised application for managing heritage information systems > 15 Traditional Owner stakeholder groups > 15 Traditional Owner stakeholder groups > 1000 tenure holdings > 1000 tenure holdings > 30 Heritage team members 12 Heritage team members • Regular stakeholder engagements, • Irregular stakeholder engagements and accurately recorded & communicated incomplete records across the business • Inconsistent performance in responding to • Improved response to issues raised issues • Reduced approvals timeframes • Extended approvals timeframes • Zero reportable heritage incidents multiple • Multiple potential heritage incidents p.a. years running

An evidence based pathway to Social Licence Dr Rolf Fandrich, Voconiq Co-founder & BD Director

The Problem “My company spends US$7 million per year on community programs. We still face work interruptions from the communities we help. Obviously the money does not buy us the goodwill we need, but I have no idea where we are missing the point.” Managing Director of an oil company (Zandvliet and Anderson, 2009, p. 5) 24

The value of social performance 25

Four steps to real-time social insights 1. Embedding process in community 2. Surveys of community perceptions 3. Sophisticated modelling of data 4. Insight delivery via secure portal Contact experience Fairness Trust Acceptance Impacts 26

The Science of SLO: The Trust Model Environment impacts ERODE trust -.23 Environmental impacts -.08 Trust in company driving acceptance of site Procedural .56 fairness .65 Trust Acceptance .13 Distribution fairness .23 .14 High quality company interactions directly improves acceptance of site Contact quality .50 These things BUILD trust 27

Accessing relationships in real-time • Anchor surveys: detailed benchmarking surveys, 20+ minutes, including demographic info. • Pulse surveys: brief surveys monthly, quarterly or six monthly about what matters (trust drivers) to community Anchor Anchor survey 1 survey 2 Time 1 Time 2 Time 3 Time 4 Time…n Begin again 28

Consistent, systematic, real-time social performance data Site-based data can be aggregated for an HQ view 29

Insights to action Outputs are tailored to ensure they support understanding and action. We can help you to engage with the outputs to support practice. 30

Thank you Dr Rolf Fandrich Co-founder & BD Director M +61 448 876 762 E rolf.fandrich@voconiq.com W voconiq.com 31 | 31

Audience Q&A

Sustainability Series Part 5: Rethinking Remediation & Rehabilitation 5 November 2019, 12.30 – 1.30pm ADST • Innovative concepts for productive land use after mining • Strategies and procedures for effective rehabilitation • Planning for mine closure before commencement • From cradle to cradle: ensuring our legacy is positive REGISTER