A recent article published in the Brazilian magazine Época Negócios explains how Alcoa, the world’s leading aluminum producer, is implementing its most ambitious project ever, as it plans to transform a bauxite mine into an exemplary case of responsible exploration. The challenge lies in managing the impact of the project on the lives of the thousands of residents of Juruti, in the Brazilian state of Pará, a city that sits on top of a 700 million metric ton deposit of bauxite, the raw material used to make aluminum.
The article provides interesting insights into how Alcoa is managing relationships with the local community and government, and how it is tackling the challenges emerging from its large-scale presence in the region (infrastructure, healthcare, education, etc.). Franklin Feder, president of Alcoa in Latin America and CEO of the Brazilian subsidiary, argues that that it will be possible for the company to transform the Juruti project into a model of responsible exploration, capitalizing on the economic potential of the region and earning its social license to operate.
More information:
On the topic of how extractive companies participate in expanding economic opportunities in developing countries, see also the comprehensive report by Harvard University's Kennedy School of Government.
On the topic of measuring business impacts on society, see the Measuring Impact Framework developed by the World Business Council for Sustainable Development (WBCSD). The framework is designed to help companies understand their contribution to society and use this understanding to inform their operational and long-term investment decisions and have better-informed conversations with stakeholders.
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