When Regional Development Council chairman Graham Thompson brandished a 123-page report into the resources sector’s impact on regional communities, he believed it offered an insight into what can be done well.
When Regional Development Council chairman Graham Thompson brandished a 123-page report into the resources sector’s impact on regional communities, he believed it offered an insight into what can be done well.
Inside the report Mr Thompson pointed to pages of community-linked spending by the big resources companies as part of their corporate social responsibility efforts in Western Australia.
This provided a benchmark for others to follow, he suggested.
BHP Billiton spent $60 million in 2009, including $20 million on a childcare strategy in the Pilbara; Rio Tinto outlaid about $60 million, including $53 million from its WA iron ore operations; Alcoa spent $5.3 million; and Woodside spent $10 million, including $3.7 million on an early learning centre in Karratha.
Even Wesfarmers, which has a relatively small mining footprint in WA centred on coal in Collie, spent up to $3 million on research into rehabilitating mine lakes. As a result, Lake Kepwari near Collie is due to be handed over to the state soon.
But that is the big end of town.
Smaller companies spend much less, or don’t report their outlays. Magellan Metals, for instance, is reported as spending $576,000 on a community fund for Esperance in 2009-10. Minara Resources spent $508,000 on a community fund over the past two years.
The lack of reporting also appears prevalent among the big international groups: the report offered little detail on what Chinese-owned Citic Pacific or US-based Chevron does.
Mr Thompson said that the reported spending of the larger players provides a guide for regions across WA to determine if the resources companies were giving them what was needed.
“Overwhelmingly, it was clear from the report the mining industry does step up to the plate,” Mr Thompson said regarding CSR.
Importantly, the report also reveals that CSR spending is not impacted by shire rates. In other words companies that pay rates spend as much on the community as those that have various state agreement exemptions, countering the argument that making all mining operations pay local government fees and charges would impact on community spending.
But the report also reveals many quirks in CSR spending.
They are across a broad range of areas in the so-called community sector and not all of it is targeted at the regions. For instance, Rio Tinto has reportedly committed $8.7 million to Kings Park between 2008 and 2015.
Mr Thompson said that there was a lot to be gained by leaving CSR in the hands of the companies because they were more committed to it.
“What I loathe to do is create a situation where government considers a legislative response,” he said.
“I believe a lot more can be gained by establishing a better relationship between local communities and mining companies.”
