Corporate Social Responsibility atMMG LXML Sepon

November 2014

Partnership for Development

Progress to date:• Identified 4 potential businesses:

• Mandarin, pineapple, silk, & chicken.

• Engaged 15 buyers (Coke Cola, PepsiCo, Kellogg, Ikea etc)

• Agreed partnership with Ironbark Citrus. They have initiated registration as Lao business.

• 25,000 seedlings planted• 10 initial farmers identified• Credit secured• District support

Next Steps:• Import trees• Identify next 100 farmers

High-value agriculture

High Value Agriculture

Local business

Local Business Development• 100s of jobs• Multiple businesses• Millions of $ in income

Developing Small Business

• 439 jobs• 26 businesses• USD $2.975 M income 2013• USD $15,650,000 income to date• Extensive training to develop

required skills• Partnership with Lao National

Chamber of Commerce and Lao-Japan Human Resource Training Institute

• Developing both mine and non mine dependent businesses

• Building on local skills• Focused on quality• Next step develop new markets

167,920244,295

490,949

1,401,302

1,792,993

2,517,4612,228,920

2,624,6492,975,299

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

USD

Annual Income for Small Business Groups

RiceSNV Enhanced Rice• 1,300+ farmers• Milling businesses• Market driven

Improving Rice Yield and Milling

• Sticky rice is a cultural icon and fundamental to the Lao perception of livelihood security.

• Targets:• Increase yields from 2.5 to 3 tonnes

per hectare• Improve quality• 159% increase in income for farmers

($105/hectare). • 200% increase in income for rice

millers.• Leverage LXML rice consumption for local

benefit• LXML Sticky rice sourced 100% from

Vilabouly• In partnership with the Netherlands

Development Agency (SNV)• Market driven• Beneficiaries:

• 1,300+ farmers• 8 rice millers• Rice group

Earning the Privilege to Grow

Area 2014 est. LOM

Government Receipts ($’m) $100m $1.3 billion

Infrastructure (28A, village roads, and electricity grid) - $46 million

Vilabouly Trust Fund ($’m) $0.75m $5 million

Community development and poverty alleviation $1.2m $5.8 million

Cultural Heritage (includingVilabouly Cultural centre) $200,000 $1.4 million

Extension to Huay KhongTraining Centre $200,000 $0.2 million

Local business income $2.9 m $18 million

UXO Clearance ($’m) $4.5m $40 million

People Development

Training Hours 273,000 1.7 million

Infrastructure Development

7

Donations and Sponsorship

US$3 million since 2003 Emphasis on direct development benefit to community, assisting women and children.

US$3 million in donations

Humanitarian and disaster assistance (US $440,000 in flood relief, dengue etc)

Support for SavannakhetHospital, Mother Child Hospital, Paediatrics etc.

Monuments of national significance – National Assembly, Chao Anou

Support for Capacity Building – UXO, EITI etc.

9

Building the Next Generation of Lao Leaders