Randgold
Resources Annual Report 2005 31
SOCIAL RESPONSIBILITY AND COMMUNITY
DEVELOPMENT
The sustainable development and social responsibility
strategy forms an integral part of the company’s overall
business strategy and is implemented throughout all
offices, projects and operations.
Efforts have been maintained during the year to enhance
community relations and to promote and manage the
social impact of the company’s activities on the
communities surrounding its operations. The operations
carried out community development activities in close
cooperation with representative local community liaison
and development committees. These committees
included traditional leaders, non-governmental
organisations, aid agencies and local and national
government officials.
During 2005, funds in excess of US$1 million were spent
on sustainable community development projects at
Loulo, Morila and other areas in the countries in which
the company operates, with a focus on basic community
health, primary education, potable water supply and
food security.
In terms of building and maintaining effective
relationships with the governments of the countries in
which it operates, regular meetings were held with
officials from Mali, Tanzania, Senegal, Ghana, Burkina
Faso and Côte d’Ivoire.
The Randgold Resources financial contribution to the
economies of the countries in which it operates, and
particularly in Mali, is significant. During 2005, a total
of US$75 million was paid by way of staff salaries and
wages, payroll taxes, duties, royalties and dividends.
An amount of approximately US$231 million was paid
to businesses for goods and services supplied to Morila
and Loulo, of which a sizable percentage went to Malian
companies. Amounts invested, that are directly
attributable to Randgold Resources and its subsidiaries,
ie excluding 60% of Morila spend, are as follows:
Capital expenditure in Mali
US$79 million
Duties, taxes and royalties
US$60 million
Payments to suppliers
US$122
million
Exploration
in West and East Africa
US$22 million
Total
US$283
million
INDUSTRIAL RELATIONS
Good industrial relations across the group continue to
reflect the success of the Randgold Resources pact
with labour. Randgold Resources’ employees are unique
among mining companies operating in Mali, in that they
have never yet responded to calls for national strikes.
MANPOWER
Human Capital
As the company develops and expands, every effort is
made to employ excellent people. Through leadership,
a sense of ownership and interpersonal influence, these
people are motivated to contribute to our success.
“What needs to be done” in Randgold Resources is
defined by consultative strategic planning, which is
refreshed at regular intervals and is rolled down through
the operations. This strategy provides the foundation
for the long term plan (including manpower plans), the
fundamental principles of our business, the frame work
for effective decision making and the actions required
of our employees, the initiating of change and
improvements and, most importantly, a rallying point.
It enables the business to organise its resources and
optimise the application of its human capital.
2005 has been a year of consolidation in Randgold
Resources’ leadership structure. Only one additional
position was created, that of manager: underground
project, responsible for managing the underground
development project at Loulo.
The operational management at Loulo has, during a
very busy and stressful year, successfully selected and
trained its respective teams to a point where first gold
was poured in the third quarter of 2005. This was
achieved while construction of the mine was continuing
and in an environment
where a not inconsiderable
portion of management’s
time was taken up in
supporting and
ultimately replacing the contractor.
Voluntary turnover of the company’s staff, continues
to be below 1% per annum, despite the large increase
in the number employed at Loulo which at December
2005 was 1 202.
Group training and development
This year the focus has been on induction, safety, cyanide
handling, the introduction of short interval scheduling
and skills and management training.
All five of the company’s MBA students and its three
post-graduate financial students qualified during 2005.
Twenty two employees attended technical training and
six attended general management courses.
The company continued its support of the Malian
Mining Industry University Scholarship scheme and
the Randgold Resources’ Scholarship Award scheme
for earth sciences students at the University of
Senegal.
Human resources report
