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The existing project is already achieving transition impact through the
demonstration effect of a successful restructuring.
This will be taken further by the proposed project through the integration of
DGMC into DPM’s own reporting, systems and management. The Project will
benefit from the introduction of modern mining technology and practices, thus
contributing to technical and marketing know-how transfers. By upgrading the
existing mine and mill and, in time, tailings facilities, the project will
also raise both efficiency and environmental performance to much higher
standards
Augmenting the capacity of Kapan to produce greater quantities at increased
productivity and lower overall operating costs provides immediate competition
to other local mines.
The mine is already engaging local industry and engineers in terms of
determining how more indigenous resources can be used as a means of reducing
overall production costs. DPM has already identified a need to adopt of best
practice in terms of labour and supplier contracts, both of which will enhance
this process.
The project can set new standards in an industry often characterised by
opacity and lack of accountability. Crucial to the turnaround of the Kapan
operations has been the introduction of objective accounting, cost-benefit
assessment for process improvement and basic raising of health, safety and
environment standards. Whereas there was an initial reluctance in the take up
of professional approaches by the indigenous population there has been a
progressive improvement in the attitudes of the workforce and an increasing
interest in how processes can be better managed through the adoption of both
commercial principles and international practices. This project can crucially
reinforce that process. DGMC has also implemented a number of initiatives
which target local social needs, engaging the local community, promoting
entrepreneurship, regularly informing stakeholders on progress in the mine,
promoting transparency and activity.
The proposed expansion by DPM will also set new standards that would be
immediately relevant to other nearby mining operations that still use outdated
and inefficient technology. Energy efficiency demonstration effects are likely
to be high in this project for example.
New standards of environmental monitoring and compliance and a technology and
know-how transfer are also likely to migrate through linkages with suppliers
and service providers who will be asked to perform to new and higher
standards. This will be further demonstrated through the continued development
and monitoring of procurement practices.
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