Considerable effort has been directed in building and maintaining close working relationships with local communities and indigenous groups through regular dialogue in an open and transparent manner. Communication is achieved through regular meetings with representative bodies. Indophil and its Philippine partners are well aware of their position as a major employer in the Tampakan Project area and our social responsibility to all stakeholders. The activities of the Project team, run under the management of Sagittarius Mines Inc. (SMI), have been widely recognised in the Philippines with an emphasis on employing world best practices. The SMI team is constantly being requested to give presentations and advice on sustainable development programs.

In accordance with agreements in place with these local communities, significant funds have been released for community projects, especially in the area of education, health, community infrastructure and sustainable development projects. The funds have enabled free education to all children for those communities in the immediate Project area. Employment opportunities are preferentially made available to local communities, commensurate with their skills base.

Indigenous groups support the Project, with the relationship documented in formal Principal Agreements. Further, agreement has been reached with all five Barangays (villages) and two Municipalities within the Project area in the form of Principal Agreements.

While exploring the potential development of this mineral resource, ethics underpin our responsible actions. When engaging with indigenous peoples (IPs) and other directly affected people, SMI fosters full respect for their dignity, human rights, aspirations, cultures and related resource-based livelihoods. Where resettlement is required, we will adhere to national laws and international standards, including the International Finance Corporation (IFC) guidelines. We have commenced consultation with communities regarding resettlement. We are also committed to securing Free and Prior Informed Consent (FPIC) from the indigenous peoples prior to any resettlement taking place.

Even though the Project is not yet approved, SMI is already making a difference. In 2010, SMI invested PhP135 million (USD3 million) as part of its Corporate Social Involvement (CSIV) initiatives, which includes education, health, livelihood and enterprise-building programs. These programs have provided real and long-term benefits to our host communities.