COMMUNITY

PanAust carries out its activities in a socially responsible manner; respectful of and encouraging the fundamental human rights and traditional values of the cultural environment within which it operates.

PanAust works in close partnership with villages and local authorities to improve the standard of living for people affected by its activities through community development programs that focus on: education (including adult education as well as for school-aged students), healthcare, agriculture, water and sanitation, infrastructure, and small business development. In Laos, these programs are aligned with the government's National Socio-economic Development Plan and the National Growth and Poverty Eradication Strategy.

To understand the composition of local communities, PanAust regularly commissions socio-economic and health surveys. Survey data is analysed and contributes to developing community development priorities and programs.

Community development awards

The Company’s leading role in delivering positive community outcomes has been recognised nationally and internationally.

• In December 2011, PanAust was presented with the Labour Medal Class 1 for the ‘Best Development in a Rural Area’ by the Government of Laos. The award is presented once every five years and recognised the Company’s outstanding contribution to rural socio-economic development and poverty eradication in Laos between 2006 and 2010.
• The Livelihood Improvement Program won the 2011 Australian Ethical Investor Sustainability Award within the social and community category, and the Best Community Development Initiative at the 2010 Asia Mining Congress. The Program builds long-term economic capacity within communities close to the Phu Kham Operation by providing training and micro-financing to enable sustainable small businesses such as market gardening, fish farming, and sewing services to be established by local people.
• PanAust’s Technical Trades Training Program won the Best Community Development Initiative in the Southeast Asia category at the 2011 Asia Mining Congress. The Program was recognised for its positive economic and social contribution to local communities and the greater Lao economy. The Program provides high-quality Lao-registered trade qualifications in the fields of welding and fabrication, automotive mechanical, automotive electrical, electrical fitting, heavy mechanical engineering and mechanical fitting.
• The Livelihood Improvement Program received the Award for Best Community Development Initiative at the 2010 Asia Mining Congress in Singapore.

At a national level, PanAust accounts for approximately 10 per cent of the Laos’ estimated GDP. To date, the Company has invested around US$900 million into the Lao economy through the development, construction and operation of projects, and building supporting infrastructure. During 2011, the Company generated almost US$89 million in royalties, taxes and tenement fees payable to the Government of Laos. In May 2011, the Government of Laos exercised its option to take up a 10 per cent share in Phu Bia Mining. Although the transfer of shares is yet to be completed, the interest is recognised in the Company’s accounts.

In late June/early July 2011, northern and central Laos was affected by two 1-in-50 year rain events. With only a few days separating each event, numerous land slips, widespread flooding, and extensive damage to infrastructure and homes occurred across the region. The Company worked with local villages and government to aid communities including providing labour, equipment and US$86,000 to re-build the Ban Nam Mo Bridge. A further US$160,000 was donated to assist authorities at the national, provincial and local levels.

Further information about PanAust’s community development activities and program outcomes, see the Company's Sustainability Report 2010 (pages 52 - 61).