Community

Case studies: Group

  • Implementing a land management policy for AngloGold Ashanti
Obuasi, Ghana

Obuasi, Ghana

Tau Lekoa mine, South Africa

Democratic Republic of Congo

Siguiri, Guinea

Siguiri, Guinea

Implementing a land management policy for AngloGold Ashanti

Access to land – particularly that held through customary title – and relocation are highly complex and emotive issues. This is particularly the case among local populations in Africa, Australia and South America, where AngloGold Ashanti has numerous operations.

In 2004, the Board Committee on Safety, Health and Sustainable Development ratified the International Finance Corporation’s (IFC’s) Performance Standards on Involuntary Resettlement as AngloGold Ashanti’s policy on resettlement, and a guidance note was prepared by the community affairs team to assist operations and exploration sites in handling resettlement and compensation.

“But,” says Prishani Satyapal, AngloGold Ashanti Community Affairs Manager, “on review, it became clear that by opting for a resettlement policy and strategy, we were significantly narrowing our options and that we were operating as if resettlement was a given at the outset.

“In line with our business principles and in keeping with best practice, we have as a group committed to seeking to avoid resettlement where possible. And only where evidence suggests that relocation is unavoidable, will we embark on a process of consultation and engagement in accordance with our business principles, and the IFC’s Performance Standards.”

Developing an integrated land management standard

The development of an integrated management standards on land management and land acquisition for the group started from the premise that land management must address the company’s need to access resources and construct site infrastructure waste disposal facilities, as well as neighbouring communities’ needs, and the interaction between the two. Because mines will eventually close, it is necessary to plan for closure and the communities that will remain once mining has ceased, leaving sustainable ecosystems and safe landforms. Additionally, resettlement is far more complex than the physical act of moving people.

The group community affairs team has developed a land acquisition roadmap to assist operations in approaching the issue. The roadmap starts with a due diligence study, environmental and social impact assessment, followed by a formal feasibility study. Once this stage has been completed, a range of alternatives to resettlement is investigated and considered. Once a decision has been made to proceed with resettlement, a formal resettlement project must be embarked upon that includes aspects such as:

  • consistent stakeholder consultation and information disclosure;
  • baseline studies;
  • planning and Resettlement Action Plan (RAP) preparation;
  • negotiations with community representatives;
  • final implementation and handover; and
  • the maintenance of resettlement sites.

Even after handover the process is not complete, with ongoing monitoring and evaluation of the resettlement required. This aspect needs to be factored into plans from the outset.

Planning for relocation

Says Satyapal, “The decision to resettle a community is not one that should be taken lightly. At best, it is a high-risk activity that is often dogged by controversy. The process is usually very costly, complex and time-consuming (taking between three and five years). The correct approach inevitably involves a range of disciplines within a project team, from mine planning and law to environment and community affairs. With this in mind, we sought the services of a specialist resettlement agency during the year (rePlan) which will provide specialist support to both the community affairs team and operations personnel in terms of a possible global service level agreement.”

Currently, land management plans are being developed for Siguiri in Guinea and at the company’s exploration operations in the DRC. Resettlement processes are under way at both Iduapriem and Obuasi in Ghana. In line with the corporate decision that all future resettlement will be evaluated by external experts, rePlan is reviewing and advising on the process envisaged at these sites. (See box below.)

Central to the rePlan process are five key principles which are aligned with AngloGold Ashanti’s values.

Mike Steyn of rePlan elaborates, “Lessons learned over many resettlements have resulted in five key principles that underpin our resettlement planning and implementation work. These are:

  • consultations and negotiations should be conducted in a transparent manner;
  • compensation and other packages need to take into account the particular circumstances of the locality;
  • people should be treated fairly – they should be compensated for the losses they incur and enabled to restore or replace these and, where possible, improve their livelihoods;
  • people with equivalent assets should be treated equitably; and
  • the cost of resettlement needs to be reasonable and affordable for the project.

“The degree of success in any resettlement process is linked proportionally to how well you understand what exists, both geologically and socially. There is no ‘quick fix’ and there are no ‘short cuts’. From experience we have found that all aspects of the resettlement process are challenging, but the restoration and/or replacement of livelihoods is very particularly so. Local employment can be a source of friction or goodwill. Our advice is to create jobs, as opposed to giving gifts; initiate a training programme early in the process; and implement transparent, locally orientated hiring and procurement policies where this is practical.”

The rePlan process adopted by AngloGold Ashanti also makes provision for cultural heritage. Adds Steyn: “Land management and resettlement processes need to display the utmost respect for the traditions and beliefs of the affected communities and to take into account their cultural norms and practices. As a consequence of this, all the necessary ceremonies – during and at the end of the process – need to be carried out.”

Satyapal comments: “What we would like to see is that all operations have land management plans in place that include detailed assessments of the impact of the proposed mining activities. These need to be closely aligned with their Stakeholder Engagement Action Plans (SEAPs) and Integrated Development Action Plans (IDAPs). These assessments will include social impact assessments and baseline socio-economic and epidemiological studies, and will form the basis for decision-making.

“While this process may seem long and cumbersome, particularly in the face of production targets, we believe that it will provide the basis for the long-term viability of our operations.”

Democratic Republic of Congo
Democratic Republic of Congo

Democratic Republic of
Congo

CONSIDERING RESETTLEMENT IN THE DRC

The Mongbwalu project, which is at an advanced stage of exploration, is located within the Ituri Province in the north-eastern DRC, some 80 kilometres from Bunia and 320 kilometres from Kampala (in the neighbouring state of Uganda). The Mongbwalu Concession covers an area of approximately 10,000km2, and is managed as a joint venture between AngloGold Ashanti and L’Office des Mines d’Or de KiloMoto (Okimo), with AngloGold Ashanti holding an 82% interest.

Consideration is being given at this early stage to the potential impact of a mine on the people of the area, both in a physical and economic sense.

AngloGold Ashanti’s appointed land management consultants, rePlan, undertook a review of the project and its implications during 2008. Local history is clearly a very sensitive issue here because war has ravaged the area in recent times, and its people are in the midst of a post-conflict recovery phase. Another complicating factor is the widespread artisanal and small-scale mining (ASM) present in the region, especially in the area where in-fill drilling is going to take place as part of the continuing exploration programme. ASM is an important economic activity for many local people.

There are other considerations as outlined below.

  • The need for community infrastructure improvements (including roads, education and health) weighed against the fact that in an exploration phase expenditure by the company has to be limited. See case study: New road paves the way for economic development in the DRC.
  • As is common with projects in areas with little formal economic activity, there is a danger of a further large influx of people with the potential for putting pressure on limited resources, increasing artisanal mining, building and speculative crop planting.
  • There is a lack of capacity both at a community and local government level but a high degree of expectation because exploration has been going on for three years.
  • Lastly, any resettlement undertaken at Mongbwalu will set a precedent and create a framework for future development in the concession area, as well as determining the nature of the relationship between the mine and the community.

As the next steps in the process, AngloGold Ashanti is preparing a resettlement framework document, together with rePlan. This will detail the potential project’s physical and economic displacement areas, the estimated number of people affected, proposed compensation and other resettlement packages. This framework will form an integral part of the project scheduling and costing.

At the same time, baseline data will be gathered to enable an adequate understanding of the potential displacement. Concurrently, mine planning needs to be engaged to minimise resettlement as far as possible.

There is no guarantee that an exploration project will turn into a mine. However, the land management processes that need to be followed form an integral part of the planning and costing exercise to determine whether or not a mine will be established.

 

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ANGLOGOLD ASHANTI Report to Society 2008