Red Back Mining Inc. - Community - Chirano

Community

Chirano

At Chirano, Red Back's subsidiary Chirano Gold Mines Limited ("CGML") has established a Community Consultative Committee ("CCC") made up of representatives of the local government authorities, traditional councils, farmers, and the security agencies. The mandate of the CCC is to provide an open and transparent forum for discussion and debate on all issues affecting the local communities. Regular well attended meetings are held at Chirano and detailed minutes of these meetings are taken and agreed.

The CCC has proved an effective body and the Company regularly tables its plans as they affect the local communities for CCC consideration prior to implementation such that once action is taken all affected parties are well informed.

The Company has undertaken many initiatives aimed at assisting local communities, including:

Provision of fresh water to numerous villages through the drilling of water wells and provision of hand pumps;
Resettlement and compensation to residents of hamlets disturbed by the Chirano operations. This included the building of a new community for ~ 300 people;
Cell phone access has been brought to the local area via CGML's phone tower;
Electricity supply shortly to be connected to largest of the local villages, a twin village with a population of ~ 3,000 people;
Upgrade and maintenance of access roads from the main highway to various villages; Future provision of computer resource centers for some larger local villages;
Future upgrading of market places in local villages.

CGML Trust Fund

The CGML Trust Fund ("the Fund") has been established for local community projects which is funded at the rate of $1 for each ounce of gold produced.

The mission of the Fund is to promote and facilitate sustainable socio-economic development in the communities in order to improve upon the quality of life of the people. The sole objective of the Fund is to provide money for developmental projects and causes. A board of trustees has been established to manage the Fund and includes representatives of CGML along with local Paramount Chiefs and District Chief Executives.

At the end of every financial year the Community Relations Department meets with all the leaders of the communities within the Project footprint to assess their needs and provide these in order of priority based on money available in the Fund.

Projects and causes to be provided the communities may include alternative livelihood, water and sanitation, health, education and infrastructure.

Since the District Assemblies are by law and convention the ultimate planning agencies for the socio-economic development of the rural communities, discussions will be held with them to ensure that projects and causes to be provided by the Fund meet the applicable guidelines of the Ghana Education Service, the Ghana Health Service and the Community Water and Sanitation Agency.

The projects to be undertaken would be such as to contribute to the Growth and Poverty Reduction Strategy of Ghana and achievement of the United Nations' Millennium Development Goals.

Every proposed project that would be provided to the communities will be submitted to the Board of Trustees for approval, after which tenders would be invited from local contractors and suppliers.

Tano-Suraw Agribusiness Growth Initiative

The Tano-Suraw Agribusiness Growth Initiative (TAGI) is a community based integrated agricultural development project. TAGI aims to stimulate long term economic growth and improve the livelihood of communities in the Wiawso area by strengthening agricultural productivity, improving farm management skills, increasing market linkages and supply chain interventions as well improving access to microfinance. The project has been designed by African Connections Ghana Limited (AC) in collaboration with (CGML) and in partnership with five communities in the Sefwi area namely; Kwawkrom, Anyinase, Paboase, Akoti, and Etwebo.

CGML is committed to providing training and resources that are needed to ensure that the requirements of their social responsibility policy are met through partnership with stakeholders in appropriate community development programmes. In respect of this social responsibility framework, TAGI has been designed and tailored towards the provision of farm management training and skills acquisition and other training to help TAGI participants gain access to finance and market opportunities. The overarching goal of TAGI is to create "economies of scale" while integrating small scale farmers into local and regional supply chains and training farmers to produce for available markets.

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