BARAKA COPPER MINE

VENEZUELA

PROJECT BRIEF

Private & Confidential

This document is an entirely fictional work, intended solely for use in an educational context. While some of its content is based on
real-life data, such as names of countries and currencies, the authors do not guarantee the accuracy of any of this content and do
not intend to convey any opinion whatsoever about the information that may or may not appear to be based on fact. Any similarity
between the names of individuals and organisations featuring in the work and those of real-life individuals and organisations is
entirely coincidental.

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www.prendo.com
1 • INTERNAL MEMO

Chris Porrin
Baraka Mine Manager
Baraka 1658, VENEZUELA

Dear Chris,

I wanted to thank you for taking on this position at short notice, but also to express my
confidence in your ability to lead the Baraka mine project over the coming months.

Last year the Garrard Mining prospecting unit found a large copper ore deposit near the
town of Baraka, in Venezuela’s Amazonas state. We moved quickly to acquire a concession
to mine the deposit, via three licence plots, as well as two adjacent plots.

The Venezuelan government awarded us the concession and as part of the deal they will
take a 10% equity stake in the venture. The International Development Corporation, part
of the Global Bank, is also planning to take a 10% stake in return for their equity financing,
so Garrard will have an 80% shareholding of Baraka Mine Inc., the special purpose entity.

The ore body lies at a consistent and medium depth, meaning we have the option to use
openpit or underground mining techniques at each of the three plots and it is essential that
Garrard’s “shared value” policy is put into practice; that is to say, our projects not only
benefit the investors, but also the environment and local communities as well.

With the exploration and environmental impact phases complete, we now need to finalise
the planning and consensus-building for the development phase which is due to start in
January. By mid December, I therefore have to give the Garrard Board a detailed outline of
how the mine will be developed, as well as confirmation that the key stakeholders are in
support of it. I have great pleasure in giving you full responsibility for this mission between
now and 12 December.

I am sure you will be able to judge how to gain the stakeholders’ support; in my view, a
mixture of consultation, communication and appropriate modifications to the development
plan will be key. The remainder of this document contains details on the site, the
development plan options, and the stakeholders.

Best of luck, and don’t hesitate to call if you need any advice.

Pierre Bonnard
Chief Executive Copper Division
Garrard Mining

Baraka Mine Project Brief

2 • SITE MAP, DESCRIPTION & PLAN OPTIONS

Settlement Plot Rainforest Plot Parrot Plot

Mostly tropical vegetation, This plot is entirely covered This plot is mostly low-level
this plot includes a settlement by rainforest; the rate of forest, and grassland. It is
of several hundred indigenous deforestation in this region of inhabited by a rare blue parrot
people who have been living Venezuela has slowed slightly whose feeding and reproductive
on this site for over 100 years in recent years habits are suited to the area

OPENPIT or UNDERGROUND OPENPIT or UNDERGROUND OPENPIT or UNDERGROUND

Venezuela

ore deposits
road

1 km

Baraka 8km

Yatua River

Processor Loading Area Community

This area of marshland is Garrard has an option to Garrard has an option to
where the processing waste protect the workers from the donate $50m towards the
drains into the river; with dust that is created in the region’s schools over the life
options to reduce pollution loading process of the project

NO TREATMENT or FILTER NO AIRCON or AIRCON NO DONATION or DONATION

or PLANT

Baraka Mine Project Brief

3 • STAKEHOLDER PROFILES

Pierre Bonnard Carla Crespo

Chief Executive, Garrard Copper Manager – Amazon Action, NGO
London, UK Ciudad Bolivar, Venezuela
Responsible for Garrard’s worldwide copper Carla and her colleagues at Amazon Action are
business, I have been with Garrard for over 25 committed to the cause of protecting the
years, after graduating with a BSc in Geology ecosystems of Venezuela’s Amazon region.
from Toronto University. Carla recently organised some demonstrations
against a junior gold mining company
prospecting in an area close to Baraka.

Gan Esperanza Leon Gonzala

Mayor of Baraka Indigenous Council of Venezuela
Baraka, Venezuela Baraka, Venezuela
Gan has been mayor for nearly 10 years. He Leon trained as an anthropologist in Caracas.
has built a powerful web of political support, He set up the ICV several years ago to protect
particularly from local industrialists. Gan was the interests of Venezuelan “Indigenas”,
questioned as part of an anti-corruption including the Yanomamis who live in this
investigation, but no charges were brought. region near the border with Brazil. Leon does
He has spent his life in local and regional not speak very good English, but he usually
politics. understands it quite well.

Bruce Jackson Helen Klein

Fund Director – Sunrise Life Manager – Responsible Business Council
Miami, USA Berlin, Germany
Sunrise is a long-term, major shareholder The RBC organises regular conferences on
in Garrard, with around 30% of the stock. corporate responsibility. Klein has established
Bruce seems to be aware of the danger that a rating system for the environmental
maximising the profits of a project may management of extraction projects. The RBC
compromise long-term shareholder value, but wants to ‘partner’ with Garrard. Klein is a
Sunrise does not have any green funds. Bruce blogger and regular contributor to journals.
has one main concern: share price.

Baraka Mine Project Brief

4 • STAKEHOLDER PROFILES

Zhao Liang Lucia Martinez

Operations Director – XtractCo Director – IDC Latin America
Sao Paulo, Brazil Lima, Peru
XtractCo does a lot of the construction for Lucia's role at the International Development
Garrard’s mines and infrastructure in Africa. Corporation (part of the Global Bank) is to
We have negotiated fixed rates for the oversee investments and ensure projects meet
construction elements at Baraka. Liang is the IDC’s strict standards. The IDC financing
aware of the complications associated with will mean they take a 10% shareholding in the
working in remote locations. project. Lucia knows Minister Ramon.

Manuel Ramon Ricardo Silva

Minister of Finance – Government Venezuelan Mineworkers Union
Caracas, Venezuela Caracas, Venezuela
Ramon has held the post since the last general The majority of the mining employees will be
election, 3 years ago. Reform-minded, but members of the VMU. Ricardo was in the
battling against a conservative cabinet. Ramon military, and cares for his members in the
is encouraging multi-nationals to invest in same way he used to care for his men. Ricardo
Venezuela. The Government will have a 10% is probably not going to be that worried about
equity stake in the Baraka venture. any of the environmental impacts.

Valerie Vidal Paloma Wright

CEO – Green Copper Professor – University of New York
Mexico City, Mexico New York City, USA
Green Copper has a contract to purchase over Paloma is Professor of Ethics at UNY,
35% of Baraka's output. Valerie has used the specialising in environmental issues. She was
name of the company to her advantage by involved in the Kyoto Protocol on Climate
promoting its responsible approach to the Change. She has written a number of books
environment. Valerie will be sensitive to any on business ethics and the environment.
decisions that could affect the mining Paloma's opinion is respected by politicians
industry’s reputation. and business people.

Baraka Mine Project Brief