Building from the ground up in West Africa. The Hatch approach to projects in a developing country

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Ferdinand Franklin
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1 Building from the ground up in West Africa The Hatch approach to projects in a developing country

2 2 Agenda 1. Hatch Contribution to West Africa Development 2. Three Recent Projects on Which We Worked 3. Enhancement of Environmental and Social Sustainability 4. Mitigation of Project Risks 5. Recognition of Local Constraints 6. For More Sustainable Projects

3 3 Hatch s Contribution to West Africa Development

Our Involvement in West Africa 4 We work in French, English, Arabic and various African dialects (Bambara, Dioula, Mooré); We design mining, metalurgical, industrial, railways,

4 Our Involvement in West Africa 4 We work in French, English, Arabic and various African dialects (Bambara, Dioula, Mooré); We design mining, metalurgical, industrial, railways, ports, power and water supply projects We assist in permitting, studies, engineering, procurement, construction and commissionning Past and current projects Business development

5 5 Our Step by Step Approach to Projects Concept (FEL1) Pre-feasibility (FEL2) Feasibility (FEL3) Design, procurement and construction (FEL4) Operation and maintenance Establish the scope of the project Confirm the cost of the project Invest in the project Make profits

6 6 Context of Projects in West Africa There is an increased focus for mining projects to address and incorporate social and environmental aspects into financing, engineering, design, procurement and construction. Giving proper attention to these issues during project development and execution, and maximizing opportunities is an ongoing but motivating challenge. When working in remote and extreme environments, projects are faced with specific requirements for engineering and project execution. The challenges are heightened when working in countries with a developing environmental regulatory framework, limited skilled workforce available for recruitment, and minimal infrastructure such as power, roads, and water. Social Environmental Financial

7 7 Three Recent Projects on Which We Worked

8 8 Tasiast Expansion Project Tasiast Mauritanie (TMLSA) is an operating gold mine wholly owned subsidiary of Kinross Gold Corporation The Tasiast expansion project consists of: Expansion of existing open pits into one overall pit Process / infrastructure: mill, Carbon-in-Leach (CIL) process plant, Tailings Storage Facility (TSF) and waste rock dumps Non-process infrastructure: warehouses, mine fleet shop, administration buildings, sewage treatment plants, R/O treatment plants, waste management facility, sea to site pipeline Hatch is the EPCM consultant, and has been working on the project since November 2010.

9 9 Confidential Mine Project in Burkina Faso Mining project in Burkina Faso with associated infrastructure in Côte d Ivoire. The project involves: Development of an open pit mine Process / infrastructure: crushing and screening plant, storage pads, residue stockpile and waste rock dumps Non-process infrastructure: warehouses, mine fleet shop, mine camp, fuel storage facility, explosive shed, administration buildings, laboratory, water treatment facility, loading station, port expansion. Hatch has participated in 2013 and 2014 in the FEL1 and FEL2 definition for material transportation and port infrastructures.

10 Koba-Koumbia Bauxite Project Koba-Koumbia, Guinea, project is a potential bauxite mine in exploration by Navasota Resources The Koba-Koumbia project consists of: Open pits recovery of high grade

10 10 Koba-Koumbia Bauxite Project Koba-Koumbia, Guinea, project is a potential bauxite mine in exploration by Navasota Resources The Koba-Koumbia project consists of: Open pits recovery of high grade bauxite deposits Transportation by rail to port and marine shipping to costumers Non-process infrastructure: warehouses, mine fleet shop, administration buildings, mining camp complete with water supply, sewage treatment plants, R/O treatment plants Hatch is presently helping evaluating the economical, environmental and social feasibility of the project.

11 11 Enhancement of Environmental and Social Viability

Consideration of Flora and Fauna Sensitivities: on Tasiast Challenge Protected Species Identified protected species across the project site. Strategy Tree removal authorized under the EIA permit.

12 Consideration of Flora and Fauna Sensitivities: on Tasiast Challenge Protected Species Identified protected species across the project site. Strategy Tree removal authorized under the EIA permit. Environmental training and management system includes awareness of environmental sensitivities. 12 Ecologically Sensitive Zones (ex. Banc d Arguin National Park) Project facilities are proposed for an area along the coast of Mauritania (running parallel to the park). Project commitment to preserve park. 5 km buffer zone has been established around the park boundary.

The potential also exists to encounter undiscovered cultural heritage or archaeological resources (Chance Finds) when conducting

13 Protection of Cultural Heritage on Tasiast 13 A number of cultural heritage and archaeological sites have been identified across the mine area, and along the seawater intake pipeline route. The potential also exists to encounter undiscovered cultural heritage or archaeological resources (Chance Finds) when conducting construction activities such as excavating and site clearing. Archaeological sites are a finite and irreplaceable resource and all direct impacts are of long term duration. Procedures are developed and implemented during construction activities

Protection of Land Use in Burkina Faso 14 In the project, we select the preferred option for infrastructure to: Minimize economic displacement of land users: farmers, breeders, plants and fruits

14 Protection of Land Use in Burkina Faso 14 In the project, we select the preferred option for infrastructure to: Minimize economic displacement of land users: farmers, breeders, plants and fruits gatherers, etc. Ensure land replacement when occupied for industrial development purpose: replacement for land titles owners, longtime users without land title (often women) and tenants Ensure access to alternative land with similar soil quality and resources availability (water, pasture, access roads, etc.) Maintain consultation with project affected people before land occupation and to research of alternatives

15 15 Mitigation of Project Risks

16 16 Project Execution to minimize the impacts Throughout the project execution phase, management will be required for a wide range of aspects and issues, including but not limited to: Protection of the existing environment: wildlife, wildlife habitat, water resources, marine environment, cultural and archeological resources. Management of environmental issues: waste management, storage and handling of hazardous materials, maintenance of air and water quality, mitigation of noise and blast vibrations. Development of local communities: stakeholders engagement and relation, population re-settlement, site rehabilitation, local workforce and procurement.

17 17 Stakeholder Engagement state of the art Invest adequate resources (staff and budget) in stakeholder engagement Avoid narrowed consultation with community leaders Identify all the stakeholders including vulnerable groups or people (women, youth and migrants) Conduct separate meeting with each group Use appropriate consultation tools and adapt to local languages and usages Limit commitments to feasible projects/activities to manage expectations Tailor project design and corporate social responsibility initiatives on consultations outcomes

Air Quality Protection in desert areas 18 Dust and Sand Challenge Disturbed sand is easily dispersed by the wind during construction Strategy Driving only on designated routes (no offroad driving).

18 Air Quality Protection in desert areas 18 Dust and Sand Challenge Disturbed sand is easily dispersed by the wind during construction Strategy Driving only on designated routes (no offroad driving). Adhering to speed limits. Watering of roads, where practical. Site selection for camps and office buildings considers prevailing wind patterns and upstream emitters. Inductions help to appropriately prepare workers for living under desert conditions.

Water Management in developing regions 19 Water Management Challenge Precious resource especially in arid climate region and lack of groundwater resources in the vicinity of the project.

19 Water Management in developing regions 19 Water Management Challenge Precious resource especially in arid climate region and lack of groundwater resources in the vicinity of the project. Strategy Conservation is a priority. Drinking water requirements: Plastic water bottles are used for drinking water. Health and sanitation challenges with distributing re-usable water bottles: lack of re-fill stations, personal hygiene, how to wash bottles, prevalence of dust. Reviewing options to improve distribution of drinking water to construction workers.

20 20 Recognition of Local Constraints

Site Specific Conditions and cultural differences 21 Training is required for cultural sensitivity and cultural preparedness, so that ex-pats both respect the local customs, but also understand and

21 Site Specific Conditions and cultural differences 21 Training is required for cultural sensitivity and cultural preparedness, so that ex-pats both respect the local customs, but also understand and are not offended by cultural differences. Mobilization of construction workforces should focus on this type of training. Key cultural differences impacting project execution: Schedule, Women in the workforce, Women in management roles On a case-by-case basis, projects may consider whether it is appropriate to offer information sessions on ex-pat cultures.

22 22 Challenges of Local Employment There are limited skills, training, and capacity within the local workforce to meet construction needs. Projects have high standards and expectations (international best practices) for health and safety, quality, engineering, environmental protection, etc. If expectations from the management team are not managed, this can create tension where locals are seen as under performing. Allowances are required in construction budget and schedule to provide on-the-job support and training as required.

23 Local Workforce Management Plan Establish Local Hiring Policy In urban centers (where & how) Through community relations Determine how skilled staff are hired; Standards, targets, requirements Recruitment Policy head hunters, agencies, private firms, etc. Workforce Evaluation Process ensuring transparency and accountability Apprenticeship Program setting standards for all contractors Employment conditions must be consistent and well defined Category of workers Senior Managers Exploration Mining Operation Operating Periods 1 st to 5 th year 6 th to 10 th year th to 15 th year 33% 20% 60% 80% 90% Managers 50% 30% 80% 90% 100% Qualified workers Unskilled workers Ex. Guinea National Employment Plan 66% 40% 80% 95% 100% 100% 100% 100% 100% 100%

24 Local Procurement of Goods and Services Identify appropriate work packages that can be sourced locally; Opportunities register Perform pre-screening of local groups: locally owned and operated,

24 24 Local Procurement of Goods and Services Identify appropriate work packages that can be sourced locally; Opportunities register Perform pre-screening of local groups: locally owned and operated, tax-paying entity, adequate degree of training Establish transparent and fair pre-screening process Steering Committee for pre-qualification process: technical expert, community relations, procurement, etc. Provide support to local contractors to insure standardized work results (remove barriers such as literacy, improve accessibility)

25 25 The Result: More Sustainable Projects

26 Rigorous Planning and Training, training and training 26 Concept (FEL1) Pre-feasibility (FEL2) Feasibility (FEL3) Design, procurement and construction (FEL4) Operation and maintenance Marketability and key risks Strategic environmental and regulatory advise Regulatory management plan Baseline environmental study Community engagement plan and consultation Environmental and social impact assessment Permits, approvals and licences Construction environmental management plan Resettlement and training plan Mitigation and compensation plans Operation environmental management plan Monitoring and follow-up

27 Our Differenciator The Value We Offer 27 U Strategic advisory role to adjust project scope and implementation strategy to financing and legislative constraints Project alignment with client s corporate & sustainable development (SD) strategy Value Hatch Advantage Sustainable Development (SD) Strategy complying with IFC standards Social acceptance, Environmental with Financial sustainability Environmental and social Impact Assessment (ESIA), permits, local employment and procurement Specialized technical studies and design, stakeholder commitment, design criteria Field work, data collection and analysis, sampling and monitoring, infrastructure design

28 28 Thank You Marie-Christine Patoine, M.A.Sc, P.Eng Hatch Environmental Services Group +1 (514)

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