Matmaa’s Journey: Approach to Host Community Engagement

At Matmaa Mining Group, development and host community engagement have progressively evolved and taken shape by learning from international standards and frameworks in Corporate Social Responsibility (CSR), corporate sustainability, rural development, and social facilitation.

Undeniably, any mining operation entails impacts and consequences for its host community, classified as both positive and negative. Nevertheless, aligned with Matmaa Mining Group’s core corporate motto—‘Creating Value through Sustainable Mining’—the company seeks to generate shared value with key stakeholders in its interactions and partnerships with the community surrounding the Morvarid Iron Ore Mine. Corporate accountability and responsibility regarding these impacts are driven through two primary dimensions:

1. Regulatory Compliance and Statutory Obligations
2. Voluntary Engagement for Regional Socio-Economic Sustainability

Under the first dimension, Matmaa Mining Group consistently fulfills all statutory obligations and legal levies mandated to mitigate and compensate for the impacts of industrial operations on society and the environment. These duties include Value Added Tax (VAT), government mining royalties, and environmental pollution levies. Across all these categories, a designated statutory portion is earmarked to be reinvested into the mine’s host community for environmental reclamation, infrastructure development, public services, and regional poverty alleviation. It remains the responsibility of the governing authorities to allocate and expend these funds locally.

Under the second dimension, Matmaa Mining Group’s strategy for local community development and engagement is anchored in ‘Participatory Management and Capacity Building’. Participatory management is defined as engaging the right people, at the right time, for the right task. Based on this definition, community involvement in matters directly affecting them is voluntary, intentional, and informed. Under this framework, individuals are empowered to contribute to the group’s objectives while sharing in both the responsibilities and outcomes. Consequently, through a gradual and endogenous process, the socio-economic capacity and resilience of the host community are enhanced.

Navigating this path has been a journey of continuous learning and growth for Matmaa. The company has successfully transitioned from providing ad-hoc philanthropic aid to fostering constructive neighborly partnerships and elevating the collective livelihood capacity of the region surrounding the mine. Furthermore, over the years, internal organizational mechanisms for defining operational responsibilities have matured, complemented by a dynamic evolution in collaborating with specialized external experts and consultants.