Overview of strategies and opportunities to implement social media in the mining industry. Presented at the Summit of Mining Communities in 2009 (Butte, Montana)

1. Strategies and Implementation of Web 2.0
Communication Tools to Enhance
Stakeholder Engagement in the Mining
Industry
National Summit of Mining Communities
October 14th, 2009
Zoë Mullard
Dr. Dirk van Zyl

2. Overview of Presentation
• Setting the Context: The Network
Society and the Mining Industry
• Web 2.0 - Interactive Internet Tools
• Research Focus
• Applications of Web 2.0 in the Mining
Industry
• Conclusions

3. Two Men and a Website
•Objective: to pressure Royal Dutch Shell executives to act
according to their Business Principles of honesty, integrity,
openness and respect
• A “gripe site” of Anti-Shell former employees and
executives
• Emotive, topical, relentless, negative commentary
www.royaldutchshellplc.com/

4. “Technology is neither good nor bad, but nor
is it neutral.”
- Melvin Kranzberg

5. The Information and
Networked Society
• Globalization: Collapse of Time and
Space
• Network flows - between people in
system, and between technological
tools
• Control and power demonstrated by
access to information

6. Impact of Economic Crisis on Trust
• Trust in corporations has decreased
• Need for continuous
conversation - People must see
something 3-5 times before they
trust it.
• It is harder to gain trust
because people pay partial
attention
•Source: www.edelman.com/
“Transparency is the new Objectivity”
David Wineber

7. Corporate - Community
Challenges in the Mining
Industry
• Access to land and land title
• Debates over Free, Prior, Informed Consent
(FPIC)
• Obtaining and maintaining a Social License to
Operate
• Shareholder questions regarding performance
and reputation
• Conflict

8. Societal Pressures and
Access to Information
• Voluntary mechanisms - CSR and E3
• Strategy based on size, visibility, public exposure,
and controversy
• Public opinion addressed in permitting process
• Societal pressures do not create policy but can
influence action and decisions
“No one is more concerned with corporate activities
than corporations themselves” (Vallentin, 2009)

9. Access to Information and the
Mining Industry
• ICMM Principle 10: Implement effective and
transparent engagement, communication and
independently verified reporting arrangements
with stakeholders
• Report on economic, social and environmental
performance
• Provide information that is timely, accurate and relevant.
• Engage with and respond to stakeholders through open
consultation processes.

10. Overview of Research
Research Question:
What is the impact of Web 2.0 communication technologies
on the interactions between mining companies and their
stakeholders?
Can Web 2.0 tools help mining companies build stakeholder
relationships and increase transparency?

11. Objectives of the Research
• To identify opportunities to increase
communication channels between mining
companies and their stakeholders
• To identify impacts of Web 2.0 tools on
mining industry
• To develop strategies for employing Web
2.0 tools in the mining industry

12. Web 2.0 - Social Media
Definition: new generation of dynamic Internet technologies
and web designs that facilitate information sharing.
• Software that allows users to generate content
• Philosophy of democracy and collaboration

13. Characteristics of Communication
Technologies
Web 1.0 Web 2.0
– static, uni-directional, – collaborative and
informational interactive
– information/content – aggregation of
management system content
– view that public was an – systems that allow
amalgam of people for networking
(linking, tagging)
– Internet as a
participatory
community
“Web 1.0 was commerce. Web 2.0 is people”
- Ross Mayfield, CEO SocialText

14. Examples of Web 2.0 Tools
• Wikis - collaborative software to create and edit web
pages on a common browser
• Blogs (web logs) - website providing commentary,
graphics or video, usually maintained by one person
• Videocasts - online delivery and sharing of video
• Podcast - digital audio file downloaded through web
syndication.
• Social Network Services - Online communities of
people who share interests and/or activities
• Interactive Maps - software that allow users to
integrate data points and information on maps

15. Net Effect of Web 2.0
• More voices to be heard and listened to
• Equalization between amateurs and professional
• Increased expectations for access to information
• Individuals and companies have
less power to control their
messages (or how they are
portrayed)

16. Applications of Web 2.0 -
Blogs
• I Think Mining - news and opinions on mining issues by Jack
Caldwell, civil and geotechnical engineer
http://ithinkmining.com
• Arizona Geology - news and policy reporting on geology and
mining in Arizona, by Lee Allison, State Geologist and Director
of the Arizona Geological Survey
http://arizonageology.blogspot.com/
• Sustainability Working Group - Student run blog about mining
and sustainable development, linking industry and academia
http://blogs.ubc.ca/miningsustainability

17. Civil Society Applications of
Web 2.0 - Blogs
• The Alliance for Appalacia - regional group providing information
about mountaintop coal mining with goal of ending this form of
mining.
http://www.theallianceforappalachia.org/
• Protest Barrick - website providing information on mining issues,
particularly involving Barrick Gold. Reports on international
campaigns and mobilization against the company.
www.protestbarrick.net

18. Applications of Web 2.0 -
Wikis
• The Responsible Miner - Wiki that has been developed to build
consensus on best practices in sustainable development and
social responsibility in the mining industry
www.responsibleminer.com
• BASESwiki - “A Dispute Resolution Community”
– Initiative by UN Secretary-General's Special Representative
on Business and Human Rights, with the Corporate Social
Responsibility Initiative at Harvard Kennedy School
www.baseswiki.org

19. Applications of Web 2.0 -
Podcasts
• LaFarge Cement Company - podcasts update interested parties with
stories and news clips
http://www.lafarge.com/wps/portal/8_3-Podcast
• Global Metals and Mining Conferences 2008 & 2009 - provides keynote
speeches and presentations, downloaded via iTunes

20. Applications of Web 2.0 -
Social Network Services
• Facebook
– The Society for Mining, Metallurgy and Exploration
(SME) - engage members, build connections,
event information
– Alcoa - engage graduates and interns, provide
news from operations around the world, random
polling
• Twitter
– Argentina Mining - information about
mining in Argentina.
– Currently has over 570 “followers”
and is “following” about 519 other
mining related people or
organizations.

21. SME Facebook

22. Applications of Web 2.0 -
Videocasts
• Alcoa
– Videocasting to create dialogue and build bridges
between employees and management
– Developed into the “Leader Dialogue Online”
• Ramirez versus TSX
– Embedded video
displaying conflict between
community and
military/security intervention
over mining in Ecuador
(Junin Valley)

23. Web 2.0 and Shareholder
Engagement
• Securities Exchange Act of 1934 amended to
facilitate the use of electronic shareholder
forums
– Real-time communications among
shareholders and the companies.
– Opportunities to gauge attitudes of
shareholders
– Builds transparency and
accountability around financial
management

24. Policy and New Media Tools
• Develop policy statements to guide employees
around how to use new media tools.
Example:
1. The views expressed in the blog are made by individuals
and do not necessarily represent the views of the
company.
2. Respect confidentiality and proprietary information.
3. Ask a manager if you have any questions about what is
appropriate to include.
4. Be respectful to the company, employees, customers,
partners, and competitors.
5. Ensure that your blogging activity does not interfere with
your work commitments.
– Source: blogs.forrester.com

25. Benefits of Web 2.0 Tools
• Awareness
– Raises awareness
– Increases transparency and authenticity
– On-going and real time access to information and
analysis of political/social issues
• Dialogue
– Allows you to “go to the conversation”
– Builds common language
– Meets public expectations for participation and allows
for dialogue that can be maintained real-time
– Access to new audiences/marginalized groups (youth)
• Cost Effective

26. Benefits of Web 2.0 Tools
• International
– Engages broad and international communities
– Links the company to issues and organizations
internationally
• Feedback Loops
– Ability to gauge responsiveness of public to corporate
actions
• Strategic
– Risk assessment of activists
– Tools can be used to “measure” audience
– Measure “hits”, intensity of language, follow how people
navigate sites/learn about issues

27. Drawbacks of Web 2.0 Tools
• Work load/Additional stakeholder engagement
activity
– Web 2.0 dialogue does not replace face-to-face interactions
– Omnipresence of communities on the ground and in virtual
spaces
• Increases vulnerability
– Potential loss of control over message or corporate
reputation
– Hard to determine authenticity and reliability of information
sources

28. Drawbacks of Web 2.0 Tools
• Technological learning
– Tools are still evolving (emergence of Web 3.0)
– Tools not usually developed for corporate use
• Complicated
– Requires information management systems and
strategies (including exit strategy)
• Geographic and cultural limitations
– Limited to areas where there is high internet
penetration, acculturation and literacy

29. Information Society and the
Mining Industry
“Innovation in processing of energy and matter require
innovation of information processing and management.”
James Beniger
“The network economy is founded on technology, but it can
only be built on relationships. It starts with chips and ends
with trust.”
Kevin Kelly - Wired Magazine

30. Conclusions
• On-line communication should not replace
face-to-face interactions, but Web 2.0 tools
may support corporate-community dialogue
• Share best practices around implementation
of Web 2.0 tools (in North America and
internationally)
• Information and dialogue need to be
considered resources that require proper
stewardship

31. Thank you