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Brazil - 2008
Amazon Mining Project Strives To Set Sustainability Benchmark
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In the heart of the Amazon, an Alcoa bauxite mining project in the pristine Juruti region of Brazil is striving to become a sustainability benchmark by generating positive social and economic effects in the local community and enhancing environmental conditions.
The Juruti project, which is scheduled for start-up in 2009, consists of a bauxite mine, a port along the Amazon River, and a 55-kilometer (34-mile) railway that will help transport bauxite from the mine to the port. The project has generated approximately 5,000 jobs during construction and will support 1,300 during ongoing operations. About 10% of the project's budget is being spent on sustainability programs in the local community.
"Setting up a large, new project in any town always affects the selected region economically, environmentally, and socially," said Franklin Feder, Alcoa vice president and president of Latin America and Caribbean. "In Juruti, we have been grounded from the start in our values, and we were well prepared for all situations that were bound to emerge in the course of construction and operation of the mine. We must make a positive impact without altering the region's unique culture and heritage, and we must earn our license to operate by living Alcoa's sustainability framework every single day."
Engaging the Community
At an estimated 700 million metric tons, Juruti has one of the single largest high-quality bauxite deposits in the world. Those new reserves are needed to meet increased global demand that will be supported by the expansion of Alcoa's Alumar refinery in São Luís, Brazil.
The Juruti region is home to almost 35,000 people, with 65% of them living in about 150 rural communities. The economy traditionally has been based on fishing, cattle raising, Brazil nut extraction, and subsistence agriculture. The average per capita income is US$23 per month, and the population has an illiteracy rate of 21%.
"Due to controversy arising from past non-Alcoa projects in the Amazon, we sought to deepen our understanding of potential impacts of the Juruti project and solicit stakeholder participation early on," said Mauricio Macedo, sustainability and corporate affairs manager for the Juruti mine.
To educate residents about the project and solicit their input, Alcoa conducted two opinion surveys, held three public meetings attended by almost 8,000 people and another nearly 70 meetings with community members, and implemented a far-reaching communications program. Alcoa also conducted extensive surveys, studies, and field research.
In early 2008, an opinion poll conducted in the urban area and rural communities of Juruti by Ibope-Brazil's leading public opinion survey institute-indicated that almost 90% of the local population has a positive or neutral attitude toward the Alcoa mining project.
Community Reaction
Alcoa's presence in Juruti has drawn criticism from members of the local community. Reverend Alfons Blumenfeld, a priest who has lived in Juruti for 35 years, is one critic of the mining project, although he does recognize improvements in sanitation, employment, housing, and infrastructure that have come along with Alcoa's presence.
"I am against the project because of the threat to the environment of the region, which is one of most precious in the whole world," said Reverend Blumenfeld. "Each one of these projects threatens the Amazon a bit more. I don't understand why they must take the ore of this region. If we calculate the paid price for the environment and the price to explore another region, the paid price here is higher, because it is a price paid by humanity. The company says that it will preserve and protect, but there will certainty be damage there. I know that an effort exists to reforest, but we'd better admit there will be damage."
He adds, "I know the population and the communities very well, and I know they depend on this environment for the Brazil nuts, fishing, and hunting. The trees barely exist, and the fish are disappearing, so that harm is already reality. And the Juruti Velho people's worries are not being taken seriously. The firm isn't being open."
A recent arrival to Juruti, Onélia Kzan Barbosa has a more favorable outlook.
"I am in favor of the project for the progress and development it brings to the city," said Barbosa, who owns a restaurant in Juruti. "Nowadays, people do not make a living on fishing alone. Juruti has become known throughout the state of Pará because of the Alcoa project."
Addressing Local Needs
Extensive community engagement by the company and in-depth research helped identify the region's environmental, social, and economic needs that must be addressed to offset the mining project's negative impacts and bolster the positive ones. The result: 20 environmental programs and 15 social and economic initiatives—known as PCAs—that Alcoa is implementing in partnership with various partners to fulfill its licensing requirement.
For example, Alcoa has partnered with private training organization Senai to train 2,800 professionals and trades people to work in the new mine or in the service industry that will support it. During the first two years of the partnership, almost 2,100 residents in 115 groups benefited from 16,000 hours of training.
The initial training, conducted from May to June 2006 on the school ship Samaúma, focused on the community's general needs, such as baking, basic information technology, bicycle maintenance, etc. Later courses were designed for builders, carpenters, metal workers, and topography assistants, as well as heavy machine operators, welders, industrial electricians and plumbers, administrative assistants, and more. Alcoa also committed funds to build a permanent school in the municipality for training adults and apprentices.
On the environmental side, one focus is the identification, control, and preservation of native plants and animals. Activities include ongoing surveying and monitoring, minimization of vegetation removal by 40%, the establishment of a germplasm bank-genetic material, usually seeds, that is conserved for long-term use-for threatened species, and relocation of certain animals to preserved areas.
In total, Alcoa will spend almost US$19 million on implementation of the 35 PCAs.
Positive Agenda
Going beyond the sustainability actions required for Juruti's license to operate, Alcoa is voluntarily investing more than US$30 million on community initiatives in education, health, security, infrastructure, and social assistance.
Examples of Alcoa's Positive Agenda items, which involve partnerships with various community and government agencies, include the following:
- The New Business Training Program, which was developed in partnership with the Juruti Trade and Business Association and the Supplier Development Program of the State of Para Federation of Industries;
- Construction of three wells to improve the quality of water in Juruti;
- Construction of a legal complex, which will include the city's first courthouse, as well as offices for court employees, through an agreement with the State Superior Court and the Juruti Municipal Administration;
- Construction of the Juruti Community Hospital and the construction, refurbishment, or expansion of various health facilities throughout the region;
- Construction of 16 classrooms in eight municipal schools and an elementary school in the Maracanã district; and
- Establishment of the Juruti Cultural Center.
Sustainable Juruti
Recognizing that its success in bringing sustainability to the Juruti region requires broad participation from the community, Alcoa spearheaded efforts to create three community-driven initiatives.
Council for a Sustainable Juruti
Established in February 2008, this multi-stakeholder council includes representatives from local businesses, civic groups, local and regional governments, and non-governmental organizations. Its goal is to guide and monitor the overall sustainability agenda of Juruti and provide a forum for discussion and collective action.
The 15-member council contains eight working groups focused on environment, health, education, security, infrastructure, culture & tourism, economy & labor, and rural development. When representatives from Alcoa's Board of Directors traveled to Juruti in 2008, they had a long meeting with council members to hear their views on how the project was being implemented.
"This council is the way for a truly sustainable project," said Neto Vieira, a Juruti business leader. "We can be writing a new model of mining not only for Brazil but possibly the world. We do face challenges, such as obtaining the commitment of society and companies, but these can be solved through the functioning of the council itself."
Development Fund of Juruti
This fund, which will be supported not only by Alcoa but other businesses, foundations, and civil society, will provide the financial resources necessary to fund the local sustainability agenda.
"To encourage broad participation, we are making an effort to construct the fund with the local community," said Patricia Moles, a consultant with the Brazilian Biodiversity Fund (FUNBIO), a nonprofit civil association that complements governmental action to conserve and sustainably use the country's biological diversity. "This will give a better sense of local ownership and will guarantee that the program lines are catering to local needs. There are many stakeholders involved in different projects in Juruti, and we need to ensure all are involved in the process. This can be challenging, not only logistically, but also culturally and technically, as communication is poor and distances are long."
Sustainability Indicators
These indicators, developed via multiple stakeholder workshops by the Center for Sustainability Studies of the Getulio Vargas Foundation, will be used to monitor local development within Juruti. They will also inform the work of both the council and fund.
For current information about the Juruti project, visit alcoa.com.
Principles of the Juruti Mine Project
- Live up to the values and principles of Alcoa's human rights policy.
- Have respect for culture and diversity.
- Listen actively and respond to all stakeholders.
- Improve and preserve the region's biodiversity.
- Improve social and economic conditions.
- Develop local skills in order to minimize dependence on the project.
- Employ local and regional resources.
- Avoid paternalism at all cost.
- Apply world-class technology and management systems.
- Conquer our right to operate the business day by day by living up to the foundations of Alcoa's sustainability structure.
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