final resettlement action plan the balama … balama graphite mine...eia environmental impact...

FINAL RESETTLEMENT ACTION PLAN

THE BALAMA GRAPHITE MINE CABO DELGADO PROVINCE IN THE DISTRICT OF BALAMA,

MOZAMBIQUE

PART 6 OF THE ENVIRONMENTAL AND SOCIAL HEALTH IMPACT ASSESSMENT PROCESS

September 2014

Prepared for:

Twigg Exploration & Mining Lda.

Syrah Resources Ltd.

356 Collins Street Melbourne

3000, Australia

Report prepared by:

EOH Coastal & Environmental Services Lda. In South Africa and Mozambique* *Rua da Frente de Libertação de Moçambique, N°324 Maputo, Mozambique

Final Resettlement Action Plan of the Balama Graphite Mine – September 2014

i

EOH Coastal & Environmental Services

This report should be cited as follows: EOH CES.2014_Part 6.Final Resettlement Action Plan: The Balama Graphite Mine.Grahamstown: EOH Coastal & Environmental Services.

COPYRIGHT INFORMATION

This document contains intellectual property and propriety information that are protected by copyright in favour of Twigg Exploration and Mining Ltd. and Syrah Resources Ltd (the „proponent‟). The document may therefore not be reproduced, used or distributed to any third party without the prior written consent of the proponent. This document is prepared exclusively for submission to the proponent for the mining project in Mozambique, and is therefore subject to all confidentiality, copyright and trade secrets, rules, intellectual property law and practices of and Mozambique.


ii


REPORT TRACK TABLE

EOH Coastal and Environmental Services

Project Name: The Balama Graphite Mine

Report Title: Final Resettlement Action Plan: The Balama Graphite Mine

Report Version:Part 6 of the Environmental, Social and Health Impact Assessment Process

File Name Compiled By Reviewed Date

Draft RAP 1

Jan Anton Hough (EOH CES)

Prof Chris de Wet 17/02/2014

Draft RAP 2 Dr Ted Avis 03/03/2014

Draft RAP 3 Proponent 10/03/2014

Draft RAP 4 Government and

Community Disclosure 05/06/2014

FINAL RAP Proponent 09/19/2014


iii


LIST OF ACRONYMS

* Portuguese Term

AfDB African Development Bank CA CES

Conservation Agriculture Coastal & Environmental Services

DFI Development Funding Institution DINAPOT DPCA

National Directorate of Territorial Planning and Organisation Diretório Provincial Coordenação Ambiental*

DSEA District Services of Economic Activities DSPI District Services of Planning and Infrastructure EIA Environmental Impact Assessment EHS Environmental Health and Safety ESHIA Environmental, Social and Health Impact Assessment EUM FDP

Eduardo Mondlane University Farmers Development Programme

GN Guidance Note GO GoM

Government Organisation Government of Mozambique

HIA Health Impact Assessment HRSP Human Resource Development Programme ID Identification IFC International Finance Corporation ISFM LHDP

Integrated Soil Fertility Management Lesotho Highlands Development Project

LoF Life of Mine LRP Livelihood Restoration Plan MICOA Ministério para a Coordenação da Acção Ambiental* MoA Ministry of Agriculture NGO Non-Governmental Organisation OP Operational Procedure PAC Project-Affected Community PDEC Provincial Directorate for Environmental Coordination PS Performance Standard RAP Resettlement Action Plan SADC SED

Southern Africa Development Corporation Socio-Economic Development

SEP Stakeholder Engagement Plan SIA Social Impact Assessment SLP Social and Labour Plan SMME Small, Medium and Micro Enterprise TA Traditional Authority TpA Tons per Annum TSF Tailing Storage Facility TWG Technical Working Group


iv


GLOSSARY OF TERMS Unless otherwise indicated in-text, the following meanings are assigned to these terms (not in alphabetical order):

Area of Influence (AoI) Thisrefers to the demarcated boundary of the mine (Figure 1.2). Most landholding-owning farmersinside this AoI might be affected by economicdisplacement.

Secondary Structure

This refers to all structures that are usually more temporary in nature, and hence not part of a physical living house. The term covers a range of different structure types; from agriculture-related sheds, grain storage buildings, shading or temporary resting houses.

Primary Structure This refers to a permanent living and/or recreational house lived in by household members for the most part of the week.

Census

The census is the household Socio-Economic Baseline Survey (SEBS),which was conducted ofa 30% sample of all theaffected landholding-owning householdsinside the mine‟s AoI. The rationale for this survey was to extrapolatethe number of Project-Affected People/Person(PAP) and determine the living conditions of the household units affected by economic displacement.

Proponent In this report, „the proponent‟jointly refers to the directors or shareholders of Syrah Resources Ltd. and Twigg Exploration & Mining Lda.

Compensation

- In the context of this report, compensation refers either to: - A payment offered (by means of an entitlement contract) to an

affected landholding-owning farmer inside the mine‟s AoI for the disturbance and/or loss of crops, economic trees and/or secondary structures; or

- Any measure put in place by the mine‟s Social Department to ensure that an affected farmer and his/her household are better-off after economic displacement (this might include the provision of alternative land, transitional or agricultural support etc.).

Consultation

Consultation with stakeholders, Interested and Affected Parties (I&APs), as well as the PAPis of central importance to the economic displacement process. The term encapsulates particular actions which are undertaken, including timely dissemination of information, a free-flow of information exchange, as well as the opportunity for these parties to voice their concerns and have an actual input in the displacement process. Any consultation was conducted foremost in accordance with the Mozambique Regulations on the Resettlement Process resulting from Economic Activities (Decree 31 of 2012).

Cultural Property

This includes the following:

Archaeological sites; Site of religious or historical significance (sacred areas); Gravesites; Monuments/shrines; Places of worship; and Artefacts.

Cut-off Date

The Cut-off-Date represented the date on which those landholding-owning farmers inside the mine‟s AoI were informed that any new farmland and/or secondary structure on such land would not be compensated by the proponent. The RAP‟s social team informed farmers of this during several site visitsundertaken in order to conduct the SEBS and farmland assessments in 2013 and 2014.


v


Economic Displacement

Economic displacement is defined as any, “[l]oss of income streams or means of livelihood resulting from land acquisition or obstructed access to resources” (IFC, 2002:p.ix). This term is used in the report to refer to the loss and/or disturbance of agricultural landholdings and secondary structures.

Ecosystem Service This term describes the ways in which natural resources and processes supplied by the natural environment (or ecosystem) are used by people.

Entitlement Framework

This is a framework that categorises each affected landholding-owning farmer and the compensation that the farmer is entitled to. The framework covers and protects eligible farmersin terms of what they are entitled to receive as compensation for economic displacement.

Environmental, Social and

Health Impact Assessment

This refers to a suite of reports which is prepared to identify and mitigate potential negative project-induced affects, as well as optimise positive ones.

Farmland Assessment This term describes the inventory (identification and assessing) of all the landholdings inside the mine‟s AoI. This inventory included any structures, important features, cultural property and economic trees.

Grievance Mechanism A Grievance Mechanism is a process used for PAPsto submit grievances to the mine. It also offers a way for mine management to process and address such grievances.

Household

In this report, the term „household‟refers to a group of members who share a house, income, assets and/or resources at least once a week. This is thus the de jurepopulation or, i.e., the population including temporary absent members.

Homestead

A homestead refers to an agricultural holding which is used by a particular household to live on. In this project‟s context, a homestead usually has on it a physical living house (primary structure), as well a small food garden. Homesteads are normally fenced.

Landholding A landholding is defined as any piece of land that belongs to a household. Such a landholding might have on it a living house (primary structure) or small food garden, or might constitute only an agricultural farm.

Machamba

The term „machamba‟ is used in this report in replacement of the word „farm‟. In Mozambique, a machamba refers to a piece of land (whether this is family or individually owned) used for subsistence and/or commercial purposes.

Project The project refers to the Balama Graphite Mine, and encapsulates all the processes involved therein.

Project-Affected Community This refers to a community which is affected by the project. In this report, PACs refer to the town and villages of Balama, Ntete, Nquide, Pirira and Maputo.

Project-Affected Person

Generally used to refer to any person who is affected by the RAP. The International Finance Corporation (IFC) Handbook for Preparing a RAP (2002) defines PAPs as: “[a]ny person who, as a result of the implementation of a project, loses the right to own, use, or otherwise benefit from a built structure, land (residential, agricultural, or pasture), annual or perennial crops and trees, or any other fixed or moveable asset, either in full or in part, permanently or temporarily” (ibid.: x). A PAP can therefore also be an individual who is not part of a PAC.

Replacement Cost This term refers to the cost for replacing an asset. The term equates to market cost plus transaction costs (which include any labour which will be used by the mine to replace such an asset).


vi


Resettlement Assistance Measures are proposed in this report for the proponent to ensure that economically displaced farmers are provided with assistance during the displacement process.

Socio-Economic Baseline

Survey

This term refers to a census which was carried out in order to identify and obtain socio-economic data on the PAP. Data which was collected included household demographics, family structures (relationships, age, residential status and occupation etc.), household livelihoods and economic data (inter alia).

Stakeholders

Stakeholders are defined as all individuals, groups or organisations which/who have an interest in the project and who are (or should be) involved during the project‟s consultative process. For purposes of this report, such stakeholders generally refer to those farmers and households who are affected by economic displacement, as well as the relevant government authorities. Stakeholders also include thecurrent and future labour force.

Technical Working Group

The establishment of a working group that represents those who are affected is a central part of any economic displacement process. The role of such agroup is to be the central communication and decision-making mechanism on behalf of the PAP through the implementation phase of the RAP.

Transitional Support

The IFC uses this term as a means for projects to remunerate economically displaced persons for the time required to restore their income-earning capacity, farm production levels and standard of living (cf. IFC, 2012: p. 7). The World Bank‟s Operational Procedure (OP) on Involuntary Resettlement (OP 4.12) [World Bank, 2013(b)] also specifies that projects need to provide development assistance as part of compensation strategies. In the context of this project, the term encapsulates the provision of alternative farmland and initial support during the land acquisition process,to assist affected farmers to cultivate their „new‟ fields.

Vulnerable Group

The term „Vulnerable Group‟ is defined as any person who might suffer disproportionately or, “[…] face the risk of being marginalized by the effects of resettlement” (Huggins and Lappeman, 2012). One role of an established group representing those who are affected would be to identify such vulnerable people/households who can prove to the mine that they are eligible for additional assistance through the compensation process. The World Bank [2013(a)] defines vulnerable people as belonging to any of the following groups: Homeless children; People with disabilities; At-risk youth; and Indigenous people.

Vulnerable groups can also include (cf. Huggins and Lappeman, 2012): Very poor people/households; Ethnic minorities; Infants and women; Households without security of tenure (no legal title to land); and \Women-headed households.


vii


TABLE OF CONTENTS

1. INTRODUCTION ................................................................................................................. 3

1.1 Project Overview ................................................................................................................. 3 1.2 Project Site Location and Area of Influence ......................................................................... 4 1.2 The Mining Process ............................................................................................................. 6 1.3 Project Rationale and Objectives ......................................................................................... 6 1.4 Potential Impacts of the Project and Economic Displacement .............................................. 7 1.4.1 Potential Project Impacts ..................................................................................................... 7 1.4.2 Asset Inventory for Possible Economic Displacement.......................................................... 8 1.5 Resettlement Action Plan Objectives ................................................................................. 11 1.6 Resettlement Action Plan Study Team .............................................................................. 11 1.7 Report Structure ................................................................................................................ 13

2. LEGAL FRAMEWORK ..................................................................................................... 14

2.1 Introduction ........................................................................................................................ 14 2.2 The Resettlement Action Plan Process in Mozambique ..................................................... 14 2.3 Mozambican Legislation .................................................................................................... 15 2.3.1 Constitution of the Republic of Mozambique of 2004 ......................................................... 15 2.3.2 Regulations on the Resettlement Process resulting from Economic Activities ................... 16 2.3.3 National Heritage Protection Law of 1988 .......................................................................... 17 2.3.4 Mining Act of 2002 ............................................................................................................. 17 2.3.5 Mining Law Regulations of 2003 ........................................................................................ 17 2.3.6 The Land Act No 19/97 and Decree No 66/98 ................................................................... 17 2.3.7 Land Law Regulations (2003) ............................................................................................ 19 2.4 International Guidelines ..................................................................................................... 20 2.4.1 Overview ........................................................................................................................... 20 2.4.2 The World Bank‟s Operational Procedure 4.12 on Involuntary Resettlement ..................... 20 2.4.3 The International Finance Corporation ............................................................................... 21

3. RESETTLEMENT ACTION PLAN PRINCIPLES .............................................................. 22

3.1 Introduction ........................................................................................................................ 22 3.2 The Challenge of Economic Displacement ........................................................................ 22 3.2.1 Overview ........................................................................................................................... 22 3.2.2 Resettlement Case Studies ............................................................................................... 23 3.2.3 Cumulative Mine Development Impacts ............................................................................. 23 3.2.4 Land and Food Security ..................................................................................................... 24 3.2.5 Dependency on Community Development Initiatives ......................................................... 24 3.2.6 Community Participation .................................................................................................... 24 3.3 Resettlement Action Plan Principles .................................................................................. 25 3.3.1 Guiding Principles .............................................................................................................. 25 3.3.2 Measures to Avoid Involuntary Resettlement and the Impacts Thereof .............................. 27

4. STAKEHOLDER ENGAGEMENT AND PUBLIC PARTICIPATION .................................. 28

4.1 Introduction ........................................................................................................................ 28 4.2 Requirements .................................................................................................................... 28 4.3 Community Engagements ................................................................................................. 30 4.3.1 Overview ........................................................................................................................... 30 4.3.2 Social Impact Assessment Site Visit .................................................................................. 31 4.3.3 Resettlement Action Plan Site Visit One and Two (July-August 2013) ............................... 31 4.3.4 Disclosure of the Environmental, Social and Health Impact Assessment‟s Scoping Report 32 4.3.5 Resettlement Action Plan Site Visit 3 (November-December 2013) ................................... 32 4.3.6 Resettlement Action Plan Site Visit Four: First Disclosure of the RAP Report (May 2014) . 33 4.4 Technical Working Group .................................................................................................. 34 4.4.1 Objectives of the Technical Working Group ....................................................................... 34 4.4.2 Establishing the Technical Working Group ........................................................................ 36 4.4.3 Meetings Held with the Technical Working Group .............................................................. 37


viii


4.4.3.1 Overview ........................................................................................................................... 37 4.4.3.2 Introduction Meetings and Obtaining Permission for Farmland Surveys ............................ 38 4.4.3.3 Disclosing the First Draft RAP Report and Discussing Compensation Measures ............... 39 4.5 Provincial and District Government Engagements ............................................................. 39 4.5.1 General Engagements ....................................................................................................... 39 4.5.2 District Resettlement Commission ..................................................................................... 40 4.5.2.1 Objectives .......................................................................................................................... 40 4.5.2.2 Disclosing the First Draft RAP Report to the District Resettlement Commission ................ 41 4.6 Grievance Mechanism ....................................................................................................... 41 4.6.1 Objectives .......................................................................................................................... 41 4.6.2 The Grievance Mechanism Procedure ............................................................................... 43 4.6.3 Operating the Grievance Mechanism ................................................................................. 45

5. THE PROJECT’S SOCIO-ECONOMIC CONTEXT ........................................................... 46

5.1 Overview ........................................................................................................................... 46 5.2 Survey and Assessment Methodology ............................................................................... 46 5.2.1 Overview ........................................................................................................................... 46 5.2.2 Landholding Asset Inventories and Socio-Economic Baseline Surveys ............................. 46 5.2.3 Entitlement Sheets and Individual Cut-Off-Date Declarations ............................................ 47 5.2.4 Data Analysis and Reporting ............................................................................................. 48 5.3 Socio-Economic Context ................................................................................................... 48 5.3.1 Demographics of the Project-Affected People ................................................................... 48 5.3.2 Household Dynamics ......................................................................................................... 49 5.3.2.1 Overview ........................................................................................................................... 49 5.3.2.2 Membership ....................................................................................................................... 49 5.3.3 Socio-Economic Living Conditions ..................................................................................... 50 5.3.3.1 Education .......................................................................................................................... 50 5.3.3.2 Health ................................................................................................................................ 50 5.3.3.3 Water, Sanitation and Waste Disposal ............................................................................... 51 5.3.3.4 Energy ............................................................................................................................... 51 5.3.3.5 Communication, Markets and Transport ............................................................................ 52 5.3.4 Household Livelihood Strategies ....................................................................................... 52 5.3.4.1 Occupation ........................................................................................................................ 52 5.3.4.2 Income and Expenditure .................................................................................................... 53 5.3.5 Natural Resource-Use and Ecosystem Services ................................................................ 54 5.3.6 Agriculture ......................................................................................................................... 56 5.3.6.1 Machambas ....................................................................................................................... 56 5.3.6.2 Agricultural Crops .............................................................................................................. 56 5.3.6.3 Agricultural Crop Seasons ................................................................................................. 57 5.3.6.4 EconomicTrees.................................................................................................................. 57 5.3.7 Food Security .................................................................................................................... 58

6. ENTITLEMENT FRAMEWORK AND LIVELIHOOD RESTORATION ............................... 59

6.1 Overview ........................................................................................................................... 59 6.2 Household Eligibility and Entitlement Matrix ...................................................................... 59 6.3 Compensation Valuation .................................................................................................... 60 6.3.1 Compensation Valuation Methodology .............................................................................. 60 6.3.2 Discussing the Compensation Valuation Methodology with the Affected Farmers and Government Officials .................................................................................................................... 61 6.3.3 Replacement of Land......................................................................................................... 65 6.3.3.1 Allocating Replacement Land ............................................................................................ 65 6.3.3.2 Preparation of Replacement Land through a Farmers Development Programme .............. 72 6.3.4 Compensation of Annual Crops ......................................................................................... 73 6.3.5 Compensation and Replacement of Economic Trees ........................................................ 74 6.3.6 Compensation of Secondary Structures ............................................................................ 75 6.3.7 Compensation of Communal Resources............................................................................ 75 6.3.8 Costs Associated with Cultural Property ............................................................................ 76

7. IMPLEMENTATION AND DELIVERY OF ENTITLEMENTS ............................................. 78


ix


7.1 Overview ........................................................................................................................... 78 7.2 A Social Department .......................................................................................................... 78 7.3 Entitlement Contracts ........................................................................................................ 79 7.4 Payment Procedure ........................................................................................................... 80 7.5 Implementation Activities and Assigned Responsibilities ................................................... 81

8. MONITORING AND EVALUATION ................................................................................... 84

8.1 Overview ........................................................................................................................... 84 8.2 Internal Monitoring and Evaluation..................................................................................... 84 8.2.1 Progress Monitoring .......................................................................................................... 84 8.2.2 Re-Validation Survey ......................................................................................................... 84 8.3 External Monitoring and Evaluation ................................................................................... 85 8.3.1 Conducting a Post-Economic Displacement Socio-Economic Baseline Survey ................. 85 8.3.2 An Independent Post-Economic Displacement Audit ......................................................... 86

9. COSTS AND BUDGETS ................................................................................................... 87

10. CONCLUSION .................................................................................................................. 89

11. REFERENCES .................................................................................................................. 90

Appendix 1: previous mine layout plans ........................................................................................ 93 appendix 2: gps positions of grave and sacred sites and boreholes .............................................. 95 Appendix 3: Community meeting minutes 1 .................................................................................. 97 Appendix 4: Community meeting minutes 2 ................................................................................ 101 Appendix 5: Community meeting minutes 3 ................................................................................ 105 Appendix 6: Community meeting minutes 4 ................................................................................ 110 Appendix 7: Community meeting minutes 5 ................................................................................ 114 Appendix 8: Community meeting minutes 6 ................................................................................ 122 Appendix 9: Community meeting minutes 7 ................................................................................ 132 Appendix 10: Technical working group meeting 1 ....................................................................... 135 Appendix 11: Technical working group meeting 2 ....................................................................... 138 Appendix 12: Technical working group meeting 3 ....................................................................... 142 Appendix 13: Technical working group meeting 4 ....................................................................... 146 Appendix 14: Technical working group meeting 5 ....................................................................... 150 Appendix 15: minutes of the community disclosure meetings of the resettlement action plan ..... 154 Appendix 16: Attendance register of the resettlement action plan disclosure meeting held in ntete on 14 may 2014 .......................................................................................................................... 157 Appendix 17: Attendance register of the resettlement action plan disclosure meeting held in Nquide on 15 may 2014 .......................................................................................................................... 161 Appendix 18: Attendance register of the resettlement action plan disclosure meeting held in Balama on 15 may 2014 ............................................................................................................. 166 Appendix 19: Attendance register of the resettlement action plan disclosure meeting held in Maputo on 16 may 2014 ............................................................................................................. 170 Appendix 20: Attendance register of the resettlement action plan disclosure meeting held in Pirira on 16 may 2014 .......................................................................................................................... 174 Appendix 21: Attendance register of the resettlement action plan disclosure meeting held in bala with the district resettlement comission on 8 may 2014 ............................................................... 179 Appendix 22: entitlement contracts ............................................................................................. 180 APPENDIX 23: Progress report proofs of delivery ....................................................................... 184 APPENDIX 24: Technical Working Group mission document ..................................................... 186 APPENDIX 25: Members of the District resettlement commission .............................................. 190


1

EOH Coastal & Environmental Services Draft RAP – 2014

LIST OF FIGURES Figure 1.1: The site location of the proposed Balama Graphite Mine [Map reference: CES, 2013] .. 3 Figure 1.2: Project infrastructural layout as at August 2014 ............................................................ 5 Figure 1.3: Assessed Machambas inside the Mine‟s Area of Influence (AoI) ................................... 9 Figure 1.4: Identified grave, borehole and sacred sites ................................................................. 10 Figure 2.1: The Resettlement Action Plan (RAP) process in Mozambique .................................... 15 Figure 5.1: Age breakdown of the Project-Affected People (PAP) (%) .......................................... 49 Figure 5.2: Education status of the project-affected households (%; 18 years or above) ............... 50 Figure 5.3: Energy access of the project-affected households (%) ................................................ 51 Figure 5.4: Project-affected household incomes (%) ..................................................................... 53 Figure 5.5: Project-affected households‟ natural resource-use (%) ............................................... 55 Figure 5.6: Project-affected household food security (% of households) ....................................... 58 Figure 6.1: a_Possible affected landholdings with each owners‟ ID number.................................. 66 Figure 6.1: b_Possible affected landholdings with each owners‟ ID number.................................. 67 Figure 6.1: c_Possible affected landholdings with each owners‟ ID number .................................. 68 Figure 6.2: The Alternative Land (marked in light green and purple) ............................................. 71 Figure 7.1: The Balama Graphite Mine Social Department Structure* ........................................... 79

LIST OF TABLES Table 1.1: Project Details ................................................................................................................ 6 Table 1.2: Socio-economic impacts and issues identified during the Social Impact Assessment process ........................................................................................................................................... 7 Table 1.3: Possible affected landholdings inside the mine‟s Area of Influence* ............................... 8 Table 1.4: Resettlement Action Plan (RAP) Study Team............................................................... 11 Table 2.1: Legal Framework ......................................................................................................... 14 Table 2.2: The World Bank‟s Operational Procedure 4.12 (2013 amendment)* ............................ 20 Table 2.3: International Finance Corporation Performance Standard Objectives .......................... 21 Table 3.1: Resettlement Action Plan Guiding Principles ................................................................ 25 Table 4.1: Site visits undertaken until the end of May 2014 ........................................................... 29 Table 4.2: Resettlement Action Plan (RAP)-related public participation activities until August 201430 Table 4.3: Balama Mine Technical Working Group Membership ................................................... 36 Table 4.4: Technical Working Group (TWG) meetings held until the end of June 2014 ................. 37 Table 4.5: Members Sitting on the District Resettlement Commission........................................... 40 Table 4.6: District Resettlement Commission Meeting Attendance Register ................................. 41 Table 5.1: Villages where the project-affected households live ..................................................... 48 Table 5.2: The labour force of the Project-Affected People (PAP) ................................................. 52 Table 5.3: Project-affected household incomes and expenditures ................................................. 53 Table 5.4: Project-affected household average monthly income from different sources ................ 54 Table 5.5: Agricultural crops planted on machambas inside the mine‟s Area of Influence (AoI) .... 56 Table 5.6: Agricultural crops seasons ........................................................................................... 57 Table 6.1: Eligibility Matrix ............................................................................................................ 60 Table 6.2: Issues and Response Trail Concerning Discussions over Compensation Strategies .... 62 Table 6.3: Alternative Land ........................................................................................................... 70 Table 6.4: Government of Mozambique crop rates (MZN) ............................................................. 73 Table 6.5: Government of Mozambique tree rates (MZN)* ............................................................ 74 Table 7.1: Implementation schedule for completing the draft RAP report and submitting it to the relevant government authorities for approval (2014) ..................................................................... 82 Table 7.2: Implementation schedule for a proposed pilot phase RAP implementation of the access road (2014) ................................................................................................................................... 83 Table 9.1 Estimated budget for implementing the Resettlement Action Plan * .............................. 87 Table 9.2: Budget for economic tree compensation at established tree rates (Government rates) 88 Table 9.3: Draft budget for crop compensation at established rates* ............................................ 88 Table 9.4: Draft budget for a structure ........................................................................................... 88 Table 9.5: Draft budget for a Farmers Development Programme .................................................. 88

Draft Resettlement Action Plan of the Balama Graphite Mine – August 2014

2


LIST OF PLATES Plate 4.1: Initial public participation meeting with the community of Nquide (Left) and Pirira (Right)31 Plate 4.2: Community meetings as part of the Resettlement Action Plan (RAP) (July-August 2013)32 Plate 4.3: Disclosing the Scoping Report (EPDA) ........................................................................ 32 Plate 4.4: Engaging with the affected farm owners in May 2014 to discuss compensation packages during the disclosure of the RAP report ......................................................................... 34 Plate 4.5: Establishing the Technical Working Group (TWG) on 10 August 2013 ......................... 37 Plate 4.6: Engaging with the Technical Working Group (TWG) members on 29 November 2013 . 39 Plate 4.7: Left: EOH CES presenting a grievance form which he tailored for the mine‟s Social Department. .................................................................................................................................. 42 Plate 4.8: Establishing the Grievance Mechanism during each community meeting with a poster illustrating the steps involved ........................................................................................................ 45 Plate 5.1: Transecting the study area and identifying cultivated landholdings, crops and structures to be assessed .............................................................................................................................. 47 Plate 5.2: A household ID number issued to each farm-owning household ................................... 47 Plate 6.1: The one land parcel outside Maputo is being demarcated with a „land reservation‟ board being erected ................................................................................................................................ 70 Plate 6.2: A typical hut or resting house structure constructed of wood poles/sticks, mud and thatch. 75 Plate 6.3: Demarcation of Cultural Heritage Areas ........................................................................ 76


3


1. INTRODUCTION

1.1 Project Overview

Syrah Resources Ltd.and the Mozambique-based company, Twigg Mining and Exploration Lda. (hereaftercollectively referred to as the „proponent‟) planto developthe Balama Graphite Mine in the Balama District of the Cabo Delgado Province of Mozambique (referred to as „the project‟).The project is located approximately 265km west of Pemba and around 9km from the nearest town to the mine‟s west, Balama (refer to Figure 1.1 below). Graphite is currently the main resource of interest and although the proposed Life of Mine (LoM) is estimated at 50 years, the mine‟s layout plan suggests that the project might even run for the next 100 years.

Figure 1.1: The site location of the proposed Balama Graphite Mine [Map reference: CES, 2013]

The mining site is encircled by four villages, namely Nquide, Ntete, Maputo (formerly known as Mualia) and Pirira. Together with the town of Balama, these are referred to as the mine‟s direct Project-Affected Communities (PACs), although more villages and towns might benefit from the project in terms of employment and social development. To the east, the town of Montepuez is the area‟s main economic centre (around 45-50km from the mine). The road from Montepuez to the mine is a gravel road, which is being upgraded to tarmac road (Road 203), which is being maintained by the Government of Mozambique (GoM). The mine is to be developed mostly on cultivated agricultural landholdings (hereon called „machambas‟, as these are commonly referred to in Mozambique), belonging to farmers living in the PACs who hold the land under a traditional land tenure system. In addition to economic trees (i.e. planted, productive trees), some of these machambas also have secondary structures on them. Such structures can be defined as structures that are usually more temporary in nature, covering a range of different structure types; from agriculture-related sheds, grain storage buildings, shading or temporary resting houses.None of the affected machamba owners or any of


4


their household members live on their farms, as they all live within villages. Thus there will be no physical resettlement of households.

Several grave sites and some self-constructed boreholes have also been identified on some of the landholdings. No communal livestock grazing areaswere identified, although some sacred sites were recorded on communal, uncultivated woodlots. However, there is the possibility that the project might affect future community access to natural resources and cultural heritage held under communal land. Ten homestead landholdings (i.e. fenced living areas with primary structures used as living houses) have been recorded next to the main access road through Pirira. It is not anticipated for any of these households to be physically resettled, as the main access road through this village will bypass any homestead. However, in future, should some of these households (or any other households) need to be relocated as the road is widened, the proponent shall draft and implement a separate Entitlement Framework specifically for these households to be approved by the District Administrator prior to any resettlement or associate compensation payments. Under the Mozambique Environmental Impact Assessment (EIA) process, regulated by Decree No. 45/2004 (as well as its amendment through the Decree 42/2008 of November 4), the project required an Environmental, Social and Health Impact Assessment (ESHIA). Such an ESHIA is currently being conducted by EOH Coastal & Environmental Services (CES). As the proponent will also apply international good practice for the environmental and social management aspects of the project, the ESHIA meets the standards of the International Finance Corporation (IFC). Economic displacement is triggered by the project. This refers to any, “[l]oss of income streams or means of livelihood resulting from land acquisition or obstructed access to resources” (IFC, 2002:p.ix). For such displacement, a Resettlement Action Plan (RAP) had to be drafted as part of the ESHIA process under the Mozambique‟s Regulations on the Resettlement Process resulting from Economic Activities (Decree No 31/2012 of 8 August).A RAP is also required under Performance Standard (PS) 5 of the IFC - Land Acquisition and Involuntary Resettlement (IFC, 2012).

1.2 Project Site Location and Area of Influence

Several project infrastructural layout plans were drafted by the proponent during the course of the ESHIA and RAP processes in order to minimise the disturbance of land and economic displacement. Through the RAP process in particular, GPS positions of possible affected landholdings (mostly machambas), sacred and grave sites were continuously provided to the proponent during 2013/2014, after which new layout plans were drafted in order to minimise human disturbance as far as possible. An updated mine infrastructural layout plan (as at August 2014) is provided in Figure 1.2. Illustrating how the layouts changed in order to minimise human disturbance, previous mine layout plans are attached to this report as Appendix 1. This entire mining site is hereafter referred to as the mine‟s Area of Influence (AoI). The mine will be constructed in several phases, with the first construction phase (Stage 1 Priority Area) anticipated to commence in late 2014 or 2015. The first construction area will possibly include the eastern pit, processing area, haul road, camp site and access road to the site through Pirira (this is elaborated upon under Section 5).


5


Figure 1.2: Project infrastructural layout as at August 2014


6


Based upon the position of the key project infrastructure, EOH CES demarcated a study area using an estimated 30m buffer zone around the proposed infrastructure and access road. Such a buffer area was deemed adequate in terms of accounting for damage that might be caused by the construction and operations of these facilities, as well as seen to be an adequate safety barrier. Most of the landholdings inside this boundary area (mostly machambas) have been assessed for possible economic displacement in 2013 and 2014. The term „most‟ is used as some machambas owners were not in the area during the survey periods. Machambas which have been missed during these periods will be identified and assessed during the RAP‟s implementation phase, as well as dealt with through the established Grievance Mechanism.

1.2 The Mining Process

The project‟s activities can be summarised in Table 1.1 below [for a detailed project overview, refer to the Environmental, Social and Health Impact Assessment (ESHIA) Report]:

Table 1.1: Project Details

Developer Syrah Resources Limited and Twigg Exploration & Mining Lda.

Project Location Cabo Delgado Province in the Balama District in northern Mozambique

Project Activities

Conventional open pit mining will be used to extract the ore;

Water for this process will be acquired from the Chipembe Dam;

Ore will be delivered from the mine onto stockpiles at the processing plant using haul trucks; and

Once the Graphite and possibly Vanadium concentrates have been produced, this will be transported by road to Pemba where a deep water port is located.

Proposed Project

Infrastructure

A pipeline from the Chipembe Dam to the project site;

Pump houses at the dam and project site; Water reservoirs at the project site; Offices and accommodation at the project site to accommodate some

workers (the number of workers still needs to be finalised); A diesel powered electricity generation plant (making provision for a grid-

power connection as well); An ore processing plant; Additional infrastructure such as roads; and A Tailings Storage Facility (TSF) and a waste rock dump will be required.

Key Product Graphite and possibly Vanadium

Conventional open pit mining is planned for the operation in order to extract the graphite ore. To extract the graphite (and possibly vanadium as well), conventional flotation processing will be undertaken. The water for this process will be acquired from the Chipembe Dam, a process which will require a pipeline to this dam. The servitude line for this pipeline has not been covered by this RAP. A separate machamba asset inventory exercise and resulting Entitlement Framework should be conducted and drafted to be approved by the District Administrator prior to any economic displacement brought along by such a servitude line.

1.3 Project Rationale and Objectives

The project is aligned with the GoM‟s aims to develop the country‟s mining industry. To illustrate, the Government has granted more than 2.5 million ha of land to mining concession companies between 2004 and 2009 (CARE, 2013). In addition, the mining sector was also boosted in 2013 when the president of Mozambique entered into an agreement with Australia to develop the mining sector (Cambell, 2013). Through this agreement, the two countries are committed to increase mining-related trade and investment in Mozambique, which will include the development of much-


7


needed infrastructure for various regions such as Balama (ibid.). The mining sector is therefore expanding in the region and this is intended to provide a range of employment opportunities in the future. Apart from boosting Mozambique‟s mining potential, one rationale of the project is also to support and improve the area‟s Socio-Economic Development (SED). This should mostly be realised through employment provision. According to the proponent, at full capacity, the mine should be able to provide full-time employment opportunities to around 180 plantworkers and approximately 50 general mining-related workers (some of whom will be employed on a temporary basis). Of the plant workers, there will be a number of specialist roles that will require qualified local personnel to be trained over time. During the construction phase of the mine, local labour will be used wherever possible. However, is should be noted that both the construction and operational phases of the project require skilled people who have prior knowledge with regard to mining operations. This reality cannot be avoided, as mine work is highly specialised and potentially dangerous as well. Therefore, proper training and apprenticeships will be created to ensure that, as far as reasonably possible, the local labour force can be trained to be skilled or semi-skilled in mining operations. Some of the broader objectives of this project are as follows:

To build and add value to the country‟s mining industry;

To diversify the income-earning opportunities of the local people who are currently predominantly dependant on agricultural production alone;

To create socially, economically and environmentally sustainable development in these regions;

To provide basic social services; and

To create and promote opportunities for women to play an equal role in rural industries.

1.4 Potential Impacts of the Project and Economic Displacement

1.4.1 Potential Project Impacts

The Social Impact Assessment (SIA) conducted of the project (CES, 2013a) identified a range of socio-economic impacts. Some of the most important impacts that bear relevance to this RAP are presented in Table 1.2 below.

Table 1.2: Socio-economic impacts and issues identified during the Social Impact Assessment process

Issue nr

Issue Impact Addressed

1 Land Acquisition

1.1 Reduced Access to Agricultural Land

These issues are addressed in this report

1.2 Increased Food Insecurity

1.3 Reduced Access to Natural Resources

1.4 Loss of Sites for Cultural Practices

1.5 Loss of Graveyards/Cemeteries

2 Community Safety Risk

Addressed in the SIA (Issue 2) with recommendations, such as for the proponent to sign an agreement

with a private security company to be used allowing for specific

community safeguarding requirements as per the IFC PS 4.


8


Issue nr

Issue Impact Addressed

3

Employment Opportunities and the

Stimulation of Economic Growth

3.1 Employment, Skills Training and Scholarships

Addressed in the SIA (Issue 3) with sufficient requirements for Human Resources (HRs) policies to meet Mozambique regulations and the

standards of the International Labour Organisation (ILO)

3.2 Temporary or Permanent In-Migration by Outsiders in Search of Job Opportunities

Addressed in the SIA (Issue 3) by requiring the proponent to develop

and implement a Labour Recruitment and Influx

Management Plan.

4 Stakeholder Engagement

Addressed in the SIA (Issue 4) by referring to the Stakeholder

Engagement Plan (SEP) which has already been drafted for the

proponent by EOH CES

1.4.2 Asset Inventory for Possible Economic Displacement

The mine‟s AoI was assessed during five site visits undertaken in 2013/2014 (refer to Table 4.2). Table 1.3 below lists all the landholdings assessed up and until August 2014, mapped in Figure 1.3 andfigures6.1-6.3. Included in the table are the number of structures, number of grave, borehole and sacred sites identified (shown in Figure 1.4), as well as the number and different types of economic trees. Appendix 2 provides the GPS positions of the gravesites, boreholes and scared sites. Section 7 of the report interprets the table with an entitlement framework.

Table 1.3: Possible affectedlandholdings inside the mine‟s Area of Influence*

Item Types Number Entitlement Framework

Landholdings (refer to Figure 1.3 and figures 6.1-6.3)

Homesteads 10

(total size: 2.41ha) Refer to Section

6.3.3 Machambas 667

(total size: 1,086.31ha)

Affected farmers 588

Structures Secondary structures

Storehouses 21

Refer to section 7.3.5

Resting huts 18

Temporary kitchen huts

4

Sheds 163

Number of identified grave sites (refer to Figure 1.4)

58 Refer to Section

7.3.7 Number boreholes (refer to Figure 1.4) 2

Number of sacred sites (refer to Figure 1.4) 5

Economic trees

Banana 3886

Refer to Section 7.3.4

Mango 3369

Cashew 1689

Orange 78

Papaya 61

Moringa 12

Coconut 10

Lemon 10

Breadfruit 4

Alteira (type of tree to be verified) 2


9


Figure 1.3: Assessed Machambas inside the Mine‟s Area of Influence (AoI)


10


Figure 1.4: Identified grave, borehole and sacred sites

final resettlement action plan the balama … balama graphite mine...eia environmental impact...

Documents