MEA 2006 V 1.0 08/2006 Socio-Environmental Impacts of Mining Social Impact Key Issues David Brereton
Social Impact Key Issues
What are social impacts? The term social impacts refers to the effects positive as well as negative that mineral operations can have on individuals and communities.
Social impacts that can result from large-scale minerals developments Loss of amenity due to traffic, noise, dust, visual impacts, etc. Public concern about health risks Relocation Demographic changes population growth; change in community composition Cultural changes introduction of new influences; erosion of traditional values & identity Changes in wealth distribution and forms of income generation Increased social strains in communities Improved services.
Why do project planners need to take account of social impacts? Legal requirements - SIA now required as part of the EIS for major projects; native title & cultural heritage The social license to operate failure to take account of, and respond to community concerns, can lead to conflict with community, damage to corporate reputation, etc. Obligations created by company and industry policies and codes.
Identifying potential social impacts Characteristics of the operation Where will the operation be located? What will it produce and what inputs will it require? How will materials be transported to and from the operation? How many people will it employ? Where will employees come from and where will they live?
Identifying potential social impacts, cont d Community characteristics What is the size, economic base, demographic composition, etc. of nearby communities? How might the proposed development alter the make-up of these communities? What concerns, expectations, perceptions etc. do community members have about the proposed operation? How much community support is there for the development? Who are the likely winners and losers? Are there any Indigenous communities likely to be affected?
Managing Social Impacts: General Principles Design projects to minimise potential adverse social impacts Implement mitigating strategies where impacts cannot be avoided Inform, consult and engage with affected communities and groups. Monitor impacts and adjust strategies as required. Need to manage the impacts of closure, as well as start-up impacts.
Discussion points 1. Why do mining companies need to be concerned about their social impacts? 2. Are the issues different in Australia than in the developing world? 3. To what extent should the management of social impacts associated with large resource developments be a government, rather than company, responsibility?
Week 12 presentation Social Impact Tools and frameworks
What is Social Impact Assessment? A process of systematic social inquiry that focuses on the consequences for people s well-being of proposed, current and/or past actions.
SIAs: Key Points An SIA can be initiated at any time during the life-cycle of a mining project. SIAs can be backward-looking (what happened & why) as well as forward-looking (what is expected to happen). An SIA should be regarded as an iterative process, rather than a one-off activity. SIAs should be focused on how to deliver positive outcomes for communities, rather than just on how to mitigate negative impacts.
Why do SIAs? To comply with regulatory requirements & secure project approval To plan for social & physical infrastructure To identify and help manage social risks and opportunities To inform internal and external stakeholders about project impacts and benefits.
Overview of the SIA Process Initial Scoping Baseline Studies Risk & opportunity Analysis Evaluation & Review Monitoring Implementation Reporting
The SIA Process 1.Scoping Aim: Determine the scale, timing and focus of the SIA Tasks include: Ascertain who is likely to be impacted on by, or have an interest in, the project (stakeholder analysis) Consult with potentially affected groups and those who are knowledgeable about the impact communities Review available information sources Identify key knowledge gaps
The SIA Process 2. Establishing a social baseline Aim: Profile the impact communities and assess how people are likely to respond to anticipated changes Tasks include: Analysis of demographic patterns & trends Socio-economic analysis Community needs analysis Social mapping Engagement with community stakeholders
The SIA Process 3. Analysing risks and opportunities Aim: Ensure that key social risks and opportunities have been identified and appropriate management strategies developed. Tasks include: Identification and assessment of potential impacts, including indirect & cumulative impacts Alternatives analysis Prioritising of risks and opportunities Selection & evaluation of possible controls
The SIA Process 4. Implementation Aim: Ensure that there is follow through on the outcomes of the risk & opportunity assessment Tasks include: Developing a risk and opportunity register with designated responsibilities and time lines Formulating a community development plan linked to this Ensuring that strategies are also linked to other planning and management processes (e.g. HR planning, purchasing policy).
The SIA Process 5. Monitoring Aim: Ensure that desired SD outcomes are being achieved. Tasks include: Identifying priority areas for monitoring Defining lead and lag indicators Setting up data collection processes Reporting: internally and externally
Good practice in SIA The earlier the better but it is never too late to get started! SIAs should be linked to other management and planning processes, rather than being approached as stand-alone exercises. Community engagement should be seen as an integral part of the SIA process. SIAs need to be reviewed and updated regularly, on the basis of monitoring data.
SIAs will be most useful when: They are linked to an ongoing monitoring program. They are part of an engagement strategy. They link back into mainstream management processes, such as risk management frameworks.
Discussion points 1. Should there be a requirement placed on mining operations to undertake some form of social impact assessment as part of closure planning? 2. What information would you need to be able to assess the likely social and economic impacts of closing a mine? 3. What use should a mine make of this information?
Week 12 presentation Ok Tedi Case Study
OK Tedi Case Study Overview of the Ok Tedi Mine Large copper/gold project in Western Province, PNG 1968 Mt. Fubilan deposit discovered 1984 Gold production begins 1987 Copper production begins 2010 Planned closure Project shareholders PNG Sustainable Development Program Company - 52% GoPNG - 30% Inmet Mining - 18% OTML contributes approx 10% of PNG GDP and 20% export earnings Ok Tedi River Tabubil Ningerum Kiunga Lake Murray Obo Telefomin Strickland Oksapmin River Western Province Papua New Guinea Workforce of 2,000 1850 PNG National 800 Preferred Area 1500 Contractors Fly River Morehead Balimo Diverse population in mine-impact area of 60,000+ Daru
Ok Tedi Overview Large copper and gold mine in remote area of PNG. High rainfall area 11m p.a. Pre-mine subsistence economy. Virtually no infrastructure or services, no towns of any size.
Ok Tedi Timeline 1981 construction commences; approvals require stable waste dumps and tailings storage facility 1984 mining starts; landslide destroys tailings facility; PNG Government approves riverine disposal on an interim basis 1990 PNG Govt reaches further agreement with OTML to allow riverine disposal of all tailings and much of the waste rock early 90 s downstream landowners bring legal action against BHP 1997 BHP agrees to pay damages
Time Line cont d 1999 OTML and PNG Government initiate consultations with communities affected by mine 2000 BHP announces intention to exit from OK Tedi, possible closure 2001 PNG Govt announces it wants the mine to remain open and that the local community supports this 2002 BHPBilliton transfers shares to a Program Company 2010 Expected mine closure
Environmental Impacts 90 million tonnes of tailings & overburden discharged annually into Ok Tedi river 50 million tonnes reaches Fly River. Increased flooding, leading to dieback Currently 1 300 sq km affected Predicted 2 040 sq km Loss of land for growing food, reduced fish catch. No evidence of poisoning, some capacity for environmental recovery once mining ceases.
Environmental impacts cont.
Environment: Dredging Photo Sand piles rehab (aerial) Photo Unassisted dieback recovery
Economic Impacts Mine provides direct and indirect employment for 3,500 people 90% PNG citizens. Accounts for 10% of PNG s GNP and 18 % of foreign exchange earnings. OTML has constructed most of the infrastructure in the area. Estimated benefit to Western Province 2002-2010: K 1.35 billion.
Health Benefits Incidence of malaria in a 40 km radius has fallen by 80%. Infant mortality down from 300 per 1,000 to 15 per 1,000. Life expectancy of men increased from 30 years to 50+ years. Better nutrition and better services.
Social Impacts Disruption of traditional lifestyles Creation of new settlements, including squatter settlements Increased social mobility What happens when the mine closes?
Closure issues Tabubil township and attendant facilities office, workshops and accommodation buildings Transport infrastructure roads, bridges, airstrips, wharves, shipping Utilities hydro, diesel power, telecommunications, banks, shopping centres Education and health services Rehabilitation of the mine pit Squatters Livelihoods
Sustainability Objectives Community participation in the development process Ensuring a food secure population Developing a sustainable economic base focus on primary sector Ensuring effective governance for the future Mitigating environmental impacts Ensuring a skilled labor force Continued access to health and education services Gender equity i.e. including women in all programs Integrated development and mine closure planning community, company and government
Overcoming Dependencies Alternate sources of protein rabbits, poultry, goats, ducks, fish farming Community forestry New food crops rice, African yams, taro STAND (Skills Transfer and No Dependency)
Issues for Discussion 1. Should Ok Tedi have ever been built? 2. Should the mine have been shut down by now? 3. Should BHPBilliton have stayed? 4. What should OTML be doing to manage for postclosure?