Recognizing that mining activities often have profound impacts on the communities living on and around mineral property areas, Southern Arc strives to minimise or mitigate any negative impacts its activities might have on the environment and on the lives and livelihoods of people within the communities in which it operates.
From the day that Southern Arc starts exploration in a particular geographic location, the company's success is tied to its ability to operate in a manner that improves the lives of the people in the surrounding communities, in a safe and environmentally responsible manner.
Southern Arc undertakes an extensive CSR program through its fully-funded foundation, with an emphasis on education, community health, environmental protection and economic empowerment of local communities. In 2012, Southern Arc granted six micro-credit loans to local village members to support entrepreneurial initiatives. The Company regularly contributes to cultural celebrations with gifts of food and other supplies, and works with the local government to build schools, drill water wells and support other
Main roads between Sepi and Mekaki and from Belikat through to Mencanggah, Selodong and Buwun Mas have been repaired and improved to access the planned drill locations through the Mencanggah prospect, thus providing important infrastructure improvements to the communities in the area. Southern Arc repaired and widened around 40 km of roads at Selodong, including 20 km of provincial road starting from Mekaki to Selodong, and widened 20 km of village road from Selodong through to Lemer and Kedaro. These infrastructure works were carried out by local contractors, providing income to local people and reducing travel times by around one hour.
Tembowong Village Water Supply
As part of its drilling activities, Southern Arc periodically encounters water in a well bore. When possible, Southern Arc redirects this water to local communities to be used as an ongoing water supply. An example of this process is documented below.
In 2007, while drilling hole QDG-04 at the Pelangan Gold Prospect, a strongly artesian aquifer was encountered. The water from the aquifer passed tests carried out by local and provincial health authorities. After gaining permission in writing for an easement for the water line (1400 m in length) to pass through landowners' plots, the water was directed to public tap stands and a large, open communal storage tank. This freed up considerable precious time each day for girls to concentrate on their schooling instead of carrying water for the family, and adult women can similarly pursue other economic activities during time otherwise formerly used for carrying water. The water can also be used to irrigate household vegetable plots, thereby contributing to better family nutrition and perhaps produce excess vegetables, which can be sold at local markets to supplement family incomes.
Bunut Kantor Elementary School Renovations
Southern Arc completed renovations to the Bunut Kantor elementary school in the Mencanggah prospect area. Southern Arc's staff had noticed that local children were being taught in a poorly-maintained structure that was open to the elements as well as being structurally dangerous to students and staff.
The elementary school for 50 to 60 students was repaired and renovated by Southern Arc using locally hired carpenters and other local workers, thus also providing some temporary work for local tradesmen and a small infusion of cash into the local economy. The Company also provided educational aids and supplies in the form of notebooks, pencils, erasers, text books, etc. The refurbished school has become operational again, with at least 50 children being educated at the facility.
The exterior and interior of Bunut Kantor School before Southern Arc's involvement in its repairs and renovations.
Bunut Kantor School after Southern Arc completed the repairs and renovations.
The Company also provided construction materials for a nearby mosque in the area.
By maintaining high standards for protecting human health and the environment, and working in cooperation with the company's host communities in Indonesia, Southern Arc endeavors to create sustainable, long-term economic and social opportunities. Keen to establish good working relationships with members of the local community, we encourage the participation of the community as an important stakeholder and in the discussion of matters of concern either through the local government or directly with community leaders and members through socialization meetings and other activities. Socialization meetings with local government and communities related to exploration activities on the West Lombok property are being carried out by Southern Arc liaison personnel on a continuing basis.
Southern Arc recognizes that the actions and conduct of every one of its employees and contractors are the basis on which stakeholders will evaluate the company's commitment to achieving the highest standards of social and environmental responsibility.
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