Annual Report 2013

Corporate Social Responsibility Statement

General Community Interaction

Introduction +-

Kenmare is committed to operating in a sustainable and responsible manner and has a long-term strategic approach to the conduct of its business with corporate responsibility as a key priority. Kenmare recognises that its social license to operate derives from its stakeholders, in particular the members of the communities in the immediate vicinity of the Mine. Ensuring close communication and consultation with all stakeholders is therefore one of the central pillars of its operations. Kenmare aims to be a catalyst for positive social and economic improvements in the communities neighbouring its operations. One of the ways it does this is by supporting the Kenmare Moma Development Association (“KMAD”, the initials of its Portuguese name), an independent not-for-profit development organisation established in 2004 to implement development programmes in these communities.

The community and its needs are at the centre of KMAD’s programmes, in contrast to a conventional corporate social responsibility (“CSR”) programme which takes the business’s responsibilities as its starting point.

KMAD’s vision is to achieve a community of:

  • Healthy people living in safe and dignified conditions, protected from disease and hazards;
  • An informed and independent population with access to education and opportunity for individuals to reach their potential;
  • Many cohesive social groups and networks contributing to sustainable development.

Since KMAD’s first activities were started in 2004 there have been significant improvements in infrastructure, with all the neighbouring communities now electrified, improved water access and mobile phone coverage throughout. Direct and indirect employment opportunities have been created; training initiatives have been implemented; and numerous development activities started by KMAD have now matured. KMAD is currently implementing the 2013-2015 work plan, the details of which were finalised through extensive community consultations, and the goals of which formed the basis of a Community Agreement signed by the local leaders, the District Government and Kenmare in 2013. Over the three year period of its current work plan, KMAD’s goal is to:

  • Facilitate the economic development and income generation capacity of the local community. This includes maximising the benefits of the Mine by creating secondary economic opportunities in the community and generating long-term sustainable economic opportunities independent of the Mine, as well as supporting facilitating mechanisms such as education, adult literacy and vocational training; and
  • Improve the wellbeing of the local population. This includes supporting social development in health, with special focus on community health awareness, sports, and the construction of appropriate social infrastructure such as water pumps (accompanied by building the capacity of local water management committees) and educational facilities (including investing in vocational training).

Kenmare is committed to operating in a sustainable and responsible manner and has a long-term strategic approach to the conduct of its business with corporate responsibility as a key priority.

KMAD’s core values are:

  • Participation: priorities for activities are based on local needs as identified by community members, and only those development initiatives with active local participation are supported by KMAD.
  • Sustainability: investment in the building of skills and capacity will accompany any projects supported by KMAD to ensure their viability and only those initiatives with strong potential are supported.
  • Equality: all people and communities have the same rights and are to be treated equally. KMAD particularly promotes the involvement of women in all its activities to achieve this aim.
  • Efficiency: maximising local benefits of resources and leveraging off the Mine infrastructure rather than setting up parallel systems and evaluating activities to look for improvement and effectiveness.
  • Integrity, Honesty and Transparency: KMAD is open about its allocation and use of resources and in its dealings with all its partners and stakeholders.

KMAD operates in three main areas:

Livelihoods and economic development

This includes capacity development and financial support to income generating initiatives, agriculture/food security and livestock support, economic infrastructure, etc.

Health development

This includes all support to the health sector – including capacity development of health staff, equipment, materials and infrastructure improvements, the Mobile Clinic Team visits, community health and HIV awareness, and water and sanitation.

Education development

This includes all support to the education sector – such as support for capacity development of teachers, educational materials and equipment, school buildings and furniture, vocational training, community environmental awareness and sports initiatives.


Organisational Development +-

KMAD membership

The KMAD Board consists of members of the Board and executives of Kenmare Resources plc, five community representatives as well as members of the Mine operations team.


KMAD activities are supervised by the Kenmare Country Manager in coordination with the full time KMAD Coordinator who is responsible for the day to day management of the portfolio of activities together with a total of five field staff. The Community Liaison Officer (a member of the Mine operations team) helps to monitor activities. Financial information is maintained by the Company’s Financial Controller.

Sources of funding

The majority of funding to date has come from the Group. Additional resources have been obtained through direct support from partner institutions such as FMO (the Netherlands Development Finance Company) which support the community health project. Donations have also been received from Kenmare Directors and employees. KMAD has leveraged indirect support by working with partners who have projects in the region and can extend their focus to include KMAD’s target area with minimal additional effort.

Implementation Strategies +-

KMAD’s approach to project implementation includes a mixture of direct, contracted, and collaborative implementation.

Direct implementation

KMAD has in some instances directly managed activities, such as construction projects, animal husbandry and the multi-media centre. Direct implementation is generally the most rapid implementation method but is also very time consuming and, given the desire to maintain a lean operational structure, KMAD’s capacity to carry out direct implementation projects is limited.

Contracted implementation

KMAD provides funds to an organisation for implementation. There are a number of organisations working in Nampula province active in community development. Working with these organisations helps leverage their existing organisational capacities and field experience. As various projects are identified KMAD works to explore possible linkages. This has generally been the preferred form of implementation method in order to ensure high quality of implementation.

Collaborative implementation

KMAD increasingly seeks to develop long-term collaborative relationships with partners in the area. Such relationships will be pursued with institutions, both government and non-government organisations (“NGO’s”), that have a long-term interest in the region. Collaboration encompasses planning of activities and management of resources. While such arrangements take considerable time to develop and there are inevitable challenges in coordination, these have long-term benefits to the community in terms of greater assistance.

Enterprise Projects +-

In 2013, KMAD received seventy five business proposals from the community, double the number received in 2012. Of these, seven were funded: two groups supplying native seeds to the mine rehabilitation department; two butchers; one business building latrines; one fish shop; and one brick maker. Each new business received twelve to sixteen days’ training on business and management skills. The businesses are monitored on business data capture and organisation of the tasks among the members of the groups. The introduction of forms used by KMAD to monitor the progress of the business as well as the challenges the groups face in terms of income and profit have allowed KMAD to better assist the groups that need special attention. Despite this progress there are still challenges, especially with groups who misuse business revenue for personal activities, therefore damaging, and in some cases destroying, the business.

During 2013, five of the businesses started in previous years were closed down as they were not profitable. At the end of 2013 there were twenty five economic development projects supported by KMAD benefiting a total of 155 families. The businesses generated a total of US$162,100 in revenue and US$43,500 in profit.

KMAD continued to support the existing two farmers’ associations that produce vegetables for sale to both the Mine catering company and the local market. Construction of a borehole with generator and pump to provide water for irrigation in Nathuco was concluded. Monthly average production from the two existing groups was 11,700 kilograms. As the demand for vegetables from the Mine catering company cannot be met solely by these two groups, KMAD extended its support to two other local suppliers from nearby.

KMAD has agreed to work with the Government of Mozambique’s Centre for the Promotion of Investment (“CPI”) in partnership with the United Nations Conference on Trade and Development (“UNCTAD”) to train the farmers’ associations in agri-business and develop the capacity of the groups to be able to supply products and services to the defined standards. Further irrigation alternatives continue to be investigated.

KMAD continued to support the two egg producer associations. Both groups suffered from a shortage of chicken feed for a large portion of the year. The technician employed by KMAD taught the group to produce an alternative chicken feed. This local feed prevented the loss of hens but did not prevent a reduction in egg production. There were also difficulties in obtaining replacement chicks for the groups. The same restrictions applied to the poultry business which, despite these challenges, had a successful first year.

The sewing groups producing sample bags for the Mine continue to deliver the best returns. The groups produced a total of 877,000 calico bags generating revenue of US$73,200, of which US$15,500 was profit. The various shops continued to perform steadily.

The table below summarises the enterprise projects that KMAD is actively providing support to:

Project description

Communities involved

Number of Participants






Existing projects

Vegetable farming

Nathuco, Nathaca, Mpago




Egg farming

Mtiticoma, Thipane




Sewing project – sample bags

Mtiticoma, Thipane, Cabula




Grocery shops

Thipane, Cabula, Nathuco, Mulimune




Bicycle spares shop





Multimedia centre





Second hand clothes shop















Salt production





New projects started in 2013









Guest House





Latrine manufacture





Seed suppliers

Nathuco, Mulimune




Brick making





Home utensils













Social and Cultural Projects +-

Health Clinic

The health clinic constructed by KMAD officially opened in March 2013. KMAD constructed the clinic with an outpatient and maternity block, two houses for the staff, equipment and furniture. An ambulance was also donated by Kenmare. The government allocated two staff members, a technician and a nurse, and hired three health assistants. As the salaries of these auxiliaries had not been included in the clinic budget, KMAD will pay their salaries for a period of three years, following which they will be incorporated into the District Health Services (“DHS”) staff. With the opening of the clinic, a new Memorandum of Understanding was signed with the DHS, which covers the construction of a pre-natal accommodation house for women waiting to deliver (Casa de Mãe Espera), an outside shaded area for the vaccination of children and a new consulting area which will allow for the introduction of HIV testing and the provision of anti-retroviral treatment. The latter two were complete by the end of the year and the pre-natal accommodation unit is structurally complete with connection to the water and electricity supply to be finalised.


The Mobile Clinic Team (“MCT”) of Missão Betesda continued with the fortnightly visits to Topuito locality. The team made twenty three general consultation visits and fifteen dental consultation visits, with a total of 3,348 and 812 patients being seen respectively. Thirty-nine patients were evacuated, nine to Moma and thirty to Nampula, by the Mission Aviation Fellowship (“MAF”) aircraft. During the year, the team had an additional medical dentist and a nurse trained in mother and child care. With the opening of the health clinic the focus of the project changed to more consultations in the Topuito clinic (two days per visit) and increased focus on training of the clinic staff and the community health volunteers (one day per visit).































HIV/AIDS Programme

Kenmare signed a one year contract extension with Population Services International (“PSI”) in May 2013 to implement a comprehensive HIV/AIDS programme both in the workplace and in the surrounding communities. The community activists continue to work with the MCT as well as with PSI. The project started with thirty community volunteers at the beginning of the year and with twenty six still volunteering at the end of the year. The communication strategies include theatre groups, door to door awareness sessions, permanent group discussions and viewing videos. The opening of the clinic has enabled the volunteers to refer individuals with HIV/AIDS to the clinic.

During the year there were a total of 2,218 inter-personal communication sessions covering 19,488 individuals (10,353 women). With door to door visits, the volunteers visited 3,041 households and 3,684 individuals (2,312 women). 141 theatre sessions were held watched by 18,431 people (9,929 women). 102 individuals (58 women) were referred to the clinic. The video sessions started in the final quarter of the year. There were five sessions with 124 people (75 women) attending.


Three indoor spraying campaigns were carried out in the surrounding communities during 2013. Prior to each campaign representatives from Moma District Health Department undertook education and awareness campaigns in each of the seven villages that were sprayed. Details of the number of buildings sprayed during these campaigns are detailed below:

2013 Campaigns



Other buildings
















There has been a large increase in coverage when compared with the first campaign in August 2011 when 4,802 buildings were sprayed. The increase is mainly due to an increased acceptance of the spraying and the benefits it brings to the local community.

Water and Sanitation

In 2013, KMAD drilled boreholes in Nathuco and Nathaca and formed water committees in both villages to manage the maintenance of the pumps. KMAD is monitoring the activities of all the community water committees and facilitating a monthly workshop whereby all water committees meet and exchange their experiences and learn from one another.

Equipment and technical support costing approximately US$50,000 was also given to Moma town to rehabilitate the town’s water reticulation system which has been inoperable for over 20 years. At the time of writing, the hospital was finally receiving running water and the final repairs to ensure the remainder of the town has access to running water were almost complete.

Vulnerable Households

A survey identifying all the vulnerable households in the Topuito locality was financed by KMAD and undertaken by the Provincial Department of Women and Social Action. Upon completion, KMAD supported the registration of the beneficiaries with the Civil Registry of Moma so they could qualify for the social security pension scheme together with the Moma Social Welfare Services. A total of 427 people were registered, with the majority being children under the age of six. KMAD will prioritise developing projects targeting the vulnerable members of society.

In August 2013, KMAD together with the District Social Welfare Department conducted a random survey of the identified vulnerable households in order to assess the impact of the Mine operations on the lives of this group of people. The results show that 89% of those surveyed noted a general improvement due to improved road access, more variety of goods available in the markets, improved schools, health clinic, electricity, mobile telephone communication, etc. 9% noted no real change and 2% mentioned a change for the worse in their particular situation due to ill health or lack of help from family members. KMAD will continue working with the District Social Welfare Department to conclude the registration of vulnerable people to: (i) provide them with identity documents to make them eligible for the monthly state-provided social welfare benefits; and (ii) to design other suitable support projects for those able to work.


Education +-

As usual, at the beginning of the school year KMAD distributed school materials to all the pupils attending school in the locality. KMAD concluded the construction of Nathaca primary school and is currently constructing schools in two other villages, Nampeia and Matalahe. Maintenance work in the form of painting, plastering and replacing damaged benches was undertaken in all the schools in the locality.

Technical school

The 2013-2015 KMAD strategic plan foresaw the construction of both a secondary school and a vocation training centre, with the secondary school being built first. However, in further discussion with the education authorities it became clear that their priority was the construction of the vocational training centre. A Memorandum of Understanding with the Department of Education for the construction of the centre is currently under discussion. The courses to be provided will be focused on providing skilled workers for the Mine. It is likely the construction of the centre will be in three phases with phase one starting in the second half of 2014.


In October 2013, Kenmare signed a financing agreement with Zizille, an NGO formed by Graça Machel to champion the development of pre-school education in Mozambique. Kenmare will donate US$100,000 over a twelve month period to support their programmes.

Sports +-

The local soccer tournament expanded once again and now has fourteen male teams and ten female teams. Although financed by KMAD, the organisation of the tournament was undertaken by the local football committee. In July, ten referees were trained by the Nampula Province Referees Association on football rules, regulations and practices.

Population Influx Management +-

The development of the Mine has led to increased population in the area and significant growth in size of some of the local villages. Kenmare agreed with the Government’s Department of Urban Planning to finance the development of an integrated urban management plan for the area which will tackle issues such as public service provision, village expansion and waste management. Three public consultation sessions were held with the local community and the Government. The plan is expected to be completed in the first quarter of 2014.

Television signal +-

At the request of the national television station, TVM, KMAD purchased transmission equipment and transported it to Topuito where it was installed by TVM. This has enabled the Topuito locality to receive TV for the first time. This will greatly improve the communities’ access to information.