Partnering for Shared Value

A ‘Health Check Workshop‘ at Carrapateena Mine in South Australia

In 2016 OZ Minerals (OZM) and the Kokotha Aboriginal Corporation (KAC) developed a Partnering Agreement and Native Title Mining Agreement for the new Carrapateena Mine in just 12 months. A case study of their agreement making process has recently been published in the June 2019 edition of the AusIMM magazine.

This article follows a previous one published in December 2016, and now provides a more in-depth assessment of the context, where the process is at now and the key learnings from this process. It also describes the operation of the Partnering Management Committee that has been established to oversee the implementation and operationalisation of the agreements and monitor progress against key milestones.

This case study shows the level of trust that was built right at the start of the relationship and how this has helped to speed progress. Importantly there was a commitment from the leaders of both organisations to work together to create shared value.

It wasn’t all plain sailing with plenty of robust discussions and disagreements along the way. But the overriding purpose was also maintained and there was a strong desire to work through issues to ensure effective resolution for both parties.

Some brief excerpts from comments of each of partners are:

Kokatha Aboriginal Corporation (Khatija Thomas – Kokatha Aboriginal Corporation member)

“The process was developed together and not imposed. This has meant Kokatha and OZ Minerals established a trust which allowed us to put together an agreement in record time. The process has ensured a strong commitment to make it work and has left my Directors feeling valued and respected. Our Partnering Agreement, ‘Nganampa palyanku kanyintjaku’, when translated means ‘keeping the future good for all in Kokatha’; this encapsulates the outcome of the process and the feelings of my community.”

OZ Minerals (Andrew Cole, MD and CEO)  

“Value creation is at the centre of OZ Minerals’ strategy. Put simply, we believe our social performance, or how we work with host communities and stakeholders, matters and will inform our ability to grow. To succeed, we work with our stakeholders (communities, shareholders, suppliers, government and employees) to understand and integrate our projects into their futures to support their values and interests so they in turn support ours. We refer to this as ‘shared value, mutual obligation’.The development of processes that support how we have worked together (OZ Minerals and KAC) has been transformational for our business. Significantly and critically, working this way has demonstrated that ‘how we work’ is key to creating value for all stakeholders”. 

One of the key success factors for this partnering process to date has been the willingness of the leaders of both parties to be authentic – to be open and honest in their engagement and discussions and to share critical information. This has led to a foundation of trust being built between the two organisations resulting in a faster completion of the agreement-making process 

While this partnering approach has been highly successful to date, it is early days and the long-term success will depend on an understanding of this relationship being embedded throughout the company, its subcontractors and the KAC. Only then will a sustainable relationship creating shared value be achieved.

This case study is an excellent example of how two organisations can come together and create shared value around a major mining development.

To read the full article go to the AusIMM link here