6.1.26 Operation Phase Impacts 6.1.26.1 Impact 1: the Expansion Of

Volume 2: EIE Mine Site – November 2013

6.1.26 Operation Phase Impacts

6.1.26.1 Impact 1: The expansion of infrastructure and service provision

Cause and comment

The Project is likely to have a positive impact on project-affected areas in terms of the improvement of road networks, which are currently in a poor condition and limit access to markets, schools and healthcare facilities. The development of the haul road, albeit not intended for third party use, as well as improvements to the local road network, will significantly improve access to social services and mobility between fokontany, which may in turn have positive social, economic, and health benefits.

Moreover Toliara Sands is likely to invest, or attract investment by national government, in developing related infrastructure, such as telecommunications, which would assist government with rolling out infrastructure and development projects in the areas of health, water and sanitation, and education. Local communities have high expectations with regard to Toliara Sands’ provision of boreholes and the construction of schools and clinics. Although Toliara Sands has implemented a number of social development projects in the villages neighbouring the proposed mine lease area, it must be noted that Toliara Sands aims to identify and implement infrastructure and social development programmes in consultation with the Government. This will ensure that the benefits accruing from these programmes continue after closure of the mine.

Mitigation measures

In collaboration with local leaders and the regional Government, Toliara Sands should explore opportunities to:

 Develop a sustainable Community Development Plan (CDP), which builds capacity for local people to develop beyond the life of the project; and  Consult with CDP beneficiaries to manage misplaced expectations that Toliara Sands will take the role of government in terms of infrastructure development and service provision.

Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Study Area May Occur Moderate MODERATE + WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area May Occur Beneficial HIGH +

6.1.26.2 Impact 2: Increased competition and conflict between communities

Cause and comment

The implementation of the Community Development Plan (CDP) should try to avoid increasing jealousy, tensions and conflict between communities. Although Ranobe is the closest fokontany to the mine site, in order not to incite tensions between communities, Toliara Sands has not prioritised Ranobe over other neighbouring communities for community development projects. Toliara Sands has also implemented development projects in Tsiafanoke and Benetse. The selection criteria for CDP beneficiaries should be

Coastal & Environmental Services 217 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 based on proximity to the mine site, and the level of impact i.e. direct and indirect, should be developed in consultation with local government, community leaders, and key stakeholders. These programmes should be developed and the allocation of the programmes to various communities should be undertaken in consultation with local government, community leaders and key stakeholders. This will also ensure that these programmes are sustainably implemented and do not lead to increased dependence on Toliara Sands.

Mitigation measures

Given the importance of community development programmes, Toliara Sands must develop a CDP that aims to promote sustainable economic development in neighbouring communities.

Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Local Probable Moderate MODERATE - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Local Probable Slight LOW -

6.1.26.3 Impact 3: An increase in social pathologies

Cause and comment

With the developments of mining projects resulting in a population influx, and increased cash flow and spending power in the local economy, it is likely that the project will have an impact on social pathologies related to increased crime levels, alcohol and drug abuse, and prostitution. The exacerbation of these social pathologies may negatively impact local communities by disrupting family structures and social dynamics, and endangering the health and safety of local community members by increasing STDs and the spread of HIV/AIDS. These “social pathologies” may negatively impact migrant workers and local community members by endangering their health, and the health of their families.

Mitigation measures

In collaboration with district health and social welfare organisations, local administrative councils and affected communities, Toliara Sands should explore opportunities to:

 Develop and implement a Community Health and Safety Plan which focuses on educating and raising awareness amongst communities about alcohol and drug abuse, STD and HIV/AIDS; and  Initiate sustainable social and economic development programmes, based on gender equity principles, which will provide women with employment and income opportunities and thereby discourage prostitution.

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Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Definite Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Definite Moderate MODERATE -

6.1.26.4 Impact 4: Loss of productive land and natural resources due to mining

Cause and comment

A number of households in the mine site area will be affected by economic displacement, and will lose access to grazing and productive agricultural land, which they extensively rely on to secure their livelihoods. Fair compensation packages based on the replacement value of lost assets should enable households to purchase replacement land which they can use to subsist and derive secure livelihoods.

In order to prevent households from being worse off as a result of losing productive land, Toliara Sands must develop a RAP, in consultation with community leaders and affected households, that aims to assist Toliara Sands with managing physical displacement, and ensuring that affected households are able to secure alternative livelihoods while re- establishing grazing areas, agricultural fields, productive fruit and fuel trees.

Livelihood restoration programmes must aim to assist households with establishing community-based farming co-operatives that produce crops both for sale and household consumption. These farming cooperatives might eventually supply the mine with food and fruit for their employees during construction and operation.

Mitigation measures

In order to ensure that households affected by economic displacement are fairly compensated, able to access productive land, and benefit from livelihood restoration programmes, Toliara Sands should collaborate with government, local leaders and affected households to:

 Develop a RAP that ensures economically displaced households are fairly compensated, allocated additional productive land, and assisted with securing alternative livelihoods while re-establishing grazing land, fields, productive fruit and fuel trees; and  Develop a sustainable community development project that provides communities with monetary income through the sale of cash crops and fuel trees.

Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Definite Very Severe VERY HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Definite Moderate HIGH -

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6.1.26.5 Impact 5: Loss of sacred and culturally important heritage sites

Cause and comment

In the mine lease area there are a number of culturally important sites including sacred trees and forests. Of these sacred sites, a few sacred trees are located in close proximity to the proposed mining area and although they will not be destroyed, Toliara Sands must protect these scared sites.

Mitigation measures

Given the importance of sacred sites, ancestors, cultural norms and values, Toliara Sands should develop a Cultural Heritage Management Plan in consultation with affected communities that aims to protect the cultural heritage of the area.

This plan should identify all sacred sites in the area and propose ways to protect these sites. In addition, this plan should assist Toliara Sands with understanding the cultural norms and values of the locals in the area, which might impair working conditions such as the requirement to wear safety boots and protective equipment. These cultural norms and values should be considered when developing the Social and Labour Plan (SLP), as well as the recruitment strategy.

Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Probable Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Probable Moderate MODERATE -

6.1.26.6 Impact 6: Relocation of tombs and graveyards

Cause and comment

In the mine lease area there are a number of graves. A few gravesites are located in close proximity to the proposed mining area and will be exhumed by Toliara Sands using culturally acceptable practices.

Mitigation measures

The removal of tombs is one of the most sensitive issues to be considered in the impact assessment, and given the importance of tombs in Malagasy culture; Toliara Sands should develop a Cultural Heritage Management Plan in consultation with affected communities that aims to protect the cultural heritage of the area.

This plan should identify all tombs in the area and propose ways to protect these sites. In addition, this plan should assist Toliara Sands with understanding the correct cultural practices when exhuming graves, which might include:

 Preparing coffins and new burial sites before exhuming the tombs;  Preparing separate tombs for men and women;  Erecting tombs for wealthy families using big cement blocks that are tiled inside, and erecting tombs for poor families using stones;

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 Carrying deceased bodies in coffins to the tombs, and it must be noted that some tombs house as many as 100 deceased people;  Pouring rum on the exhumed tomb door before opening it;  Ensuring “hasmanga” or wise man call the ancestors; and  Slaughtering a zebu at the same time as opening the tomb door.

Significance Statement

6.1.27 Decommissioning Phase Impacts

6.1.27.1 Impact 1: Loss of social services

Cause and comment

During the decommissioning of the mine various social projects initiated during the various phases of the proposed project such as educational projects, honey project, etc. may be lost.

Mitigation Measures

The project proponent should ensure that these projects are undertaken in a sustainable manner so that they can continue within the region post mine closure, i.e. should include basic business training

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area May Occur Severe MODERATE - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Unlikely Severe MODERATE

6.1.27.2 Impact 2: Retrenchment

Cause and comment

During the decommissioning phase of the proposed project the majority of staff previously employed will be retrenched as all mining activities has ceased.

Mitigation measures

A retrenchment policy has to be in place prior to any retrenchment activities being undertaken.

Should the proposed project continue to Phase 2, employees appointed for Phase 1 of the development should be maintained for the second phase which would reduce the amount of staff to be retrenched.

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6.1.28 Risks and Hazards

Risk Cause and Comment Rating without Recommendations mitigation  With the developments of mining projects resulting in a population influx, and increased cash flow and spending power in the local economy, it is likely that the project  Implement a comprehensive STDs policy for employees, will have an impact on social contractors/suppliers. pathologies related to increased  Run community awareness programmes and workshop on the HIV/Aids crime levels, alcohol and drug policy with local communities; An increase in abuse, and prostitution. The  Consider engaging specialised NGOs to run on-going community HIGH 3C social pathologies exacerbation of these social awareness workshops on safe sex and HIV/Aids (involve employees and all pathologies may negatively impact community stakeholder but specifically target local women and youth local communities by disrupting organisations). family structures and social  Workers should be well educated about HIV/ AIDS and STDs, and the risks dynamics, and endangering the surrounding this disease. health and safety of local community members by increasing STDs, and the spread of HIV/AIDS.  The implementation of the Increased  The grievance mechanism should be developed early in the project cycle Community Development Plan competition and and implemented adequately to cater for all complaints. (CDP) may increase jealousy, HIGH 3C conflict between  Disclosure and external communication should be carefully monitored and tensions and conflict between communities implemented. communities.

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6.1.29 Monitoring

Community health and safety issues that may be associated with the Ranobe Mine Project activities and requiring monitoring include transport safety along access corridors, transport and handling of dangerous goods, impacts to water quality and quantity, and potential for transmission of communicable diseases, e.g., respiratory and sexually transmitted infections resulting from the influx of project labour. In addition, there can be significant household and community level effects on the social determinants of health, e.g., drug, alcohol, gender violence, and other psychosocial effects, associated with the rapid influx of labour during construction and operational phases. The rapid influx of labour and their associated extended family members may also place a significant burden on existing community health facilities and resources. Finally, because of their large and generally positive economic impacts, large mining developments can rapidly move local communities from a pattern of infectious diseases, e.g., malaria, respiratory and gastrointestinal infections, to a pattern of non-communicable diseases, e.g., hypertension, diabetes, obesity and cardiovascular disorders. The medical infrastructure in many developing countries is often poorly equipped or experienced in dealing with non-communicable diseases.

Recommendations for the management of these issues are described in the Social Impact Assessment for the Ranobe Mine Project. Additional concerns specific to mining activities, with community health and safety implications, and also broader EHS implications are considered under the following headings:

 Land Subsidence  Emergency Preparedness and Response  Communicable Diseases  Specific Vector Control and Prevention Strategies

Ranobe Mine Project is responsible for implementing any resettlement and compensation strategies developed and defined in the Resettlement Action Plan to be developed. Ranobe Mine Project will therefore assume responsibility for providing the funding for monitoring of resettled persons and project affected people. Such monitoring is required to ensure that resettlement is properly implemented, is in line with the Resettlement Action Plan, that grievances are being attended to, and that any necessary changes to the overall process are being done in good time and sensibly. To be compliant with best practise monitoring will probably need to take place at two levels.

6.1.29.1 Internal Monitoring

Internal monitoring will be conducted by a suitably qualified person within the Ranobe Mine Project Community Affairs Department. The form that this monitoring takes is flexible and can be tailored to the personnel and capacity of the Ranobe Mine team. However it is strongly recommended that monitoring have at least three data sources. These would be:

 The Grievance Mechanism  Results and minutes of the local level engagement programme as per the Stakeholder Engagement  Some quantitative monitoring based on the database developed as the baseline for the Social Impact Assessment for the overall project.

6.1.29.2 External Monitoring

External Monitoring should be conducted through a contracted independent body. The external Monitoring Team should visit the project area upon completion of the first phase of resettlement and then two years later. The subsequent frequency can be determined after

Coastal & Environmental Services 224 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 the first two visits. External monitoring should pay particular attention to the following aspects:

 Ensure that any replacement housing for those who have had to move is of an adequate replacement standard.  Ensure that monies paid to households who have lost crops and other forms of livelihood production have received fair compensation.  Examine the livelihood restitution strategies and key performance indicators as determined by the Resettlement action Plan and measure their progress.

6.1.29.3 Social Monitoring Indicators

At this stage it is recommended that the following indicators form part of the socio-economic monitoring framework:

 Food security (including aspects of nutritional/health status by age and gender)  Household incomes (not only money, but surrogate indicators such as suite of assets owned (e.g. radios, bicycles, television, etc)).  Housing, quality of roof, walls, floor.  Expenditure patterns  Indebtedness/savings  Access/use of services (social and physical infrastructure)  Project Affected People’s views on progress toward restoration/enhancement especially those to be physically relocated  Waged full/part-time jobs by household (Ranobe Mine Project and non-Ranobe Mine Project created jobs) by development phase (construction/operations)  Small-scale ‘business’ start-ups  Numbers of shops/trading activities in villages/project area  Changes in gender livelihood-focused activities and incomes  Status of Vulnerable PAPs  Grievances and resolution outcomes  Livelihood diversity and relative contributions (numbers/incomes from charcoal production, bee-keeping/honey production, etc)  Improvement in production/income for women/youth.

Education

Suggested indicators for monitoring:

 Where applicable, primary and basic enrolment levels by gender.  Secondary enrolment levels by gender.  Pupil/teacher ratio.  Distance to primary school.

Health

Suggested indicators for monitoring:

 Availability of and distance to safe drinking water and sanitation.  Incidence of main diseases/gender/age.  Death rates of main diseases/gender/age.  Trained health staff/catchment population.  Distance to health centre.  Child nutrition: height for age (stunting), weight for age (wasting).

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 Possibly incidence of HIV/AIDS and of other STDs by gender and age.

Wider ‘social’ indicators (not in order of importance)

 Local hiring as per policy  Grievance and resolution outcomes  Market prices for key food items  Costs of social/welfare provisions/services (schools and ‘equipment’ [pencils, notebooks, uniforms]; clinics and medicines, local transport)  Inflation (food basket)  Influx/in-migration  Security/community incidents  Number of local companies involved in supplying goods and services/value of goods and services provided (Ranobe Mine Project local purchasing)  Return of youths to villages  Village demographic changes (by age/sex)  Birth rates  Nationalization progress (expatriates to nationals)  Intra-household conflicts  Intra-community (villages) conflicts (elders/youths; political factionalism)

6.2 Land and Natural Resources Use

6.2.1 Agriculture

Two types of agriculture are practiced. Permanent agriculture, which is used for cotton, and slash and burn, in the local dialect called hatsaky, which is used for maize and manioc crops. Hatsaky which is carried out mainly in the savannah and near the escarpment, has a low productivity, and plots are generally abandoned after 3-5 years. Although declared illegal because of its negative effect on the environment, hatsaky is still popular, since people believe that returning to old fields will not bring good yields.

In the study area agriculture is mainly manual, using oxen to plough the land, and those without ploughs use spades. Households located close to the Manombo River are able to grow crops by river beds and have relatively good soil. A small portion of households have canal irrigation systems in place, although these can become choked with sand and are typically not well maintained. Several of the villages in the study area are connected to the 17 km long irrigation network which uses water from the Manombo River. However the water distribution is not well organised and villages further along the canal do not receive sufficient water. As such, communities are reliant on rain fed agricultural production (UNDP, Plan Communal de Développement).

Prior to the 2009 political crisis a majority of villages in the study area grew cotton, which was organised by HASYMA, a privatised government organisation that assisted cotton growers with seeds, agricultural inputs and who committed to purchasing, and collecting their crops. The costs of the inputs were then deducted from the income of the cotton farmer when the harvest was purchased. However the cotton textile industry has declined and as a result cotton is no longer an important source of income for the area. In 2002 the cotton yield in the village of Tsianisiha was 270 tons and in Ankilimalinike 950 tons (Direction Régional Développement Rurale, figures for 2005), and recently cotton growing in the region is regaining some strength, although during focus group interviews it was reported that poor rainfall in 2011 affected crop productions.

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The region is marked by its reliance on the production of maize, which is an important cash and subsistence crop in the region. During the 1980’s and 1990’s as the country opened up to trade liberalization, and following in the footsteps of EU policies that promoted the growth of Reunion island’s cattle rearing, Madagascar’s southern regions invested in large-scale maize production for export, moving away from growing the crop for subsistence purposes and instead focusing on the supply of animal feed (Minten, Meral & Swinnen, 2010.).

At the height of the maize trade, a dozen Toliara-based companies were supplying a minimum of 4 000 tons of maize per annum to Reunion. For almost a decade farmers remained competitive in exporting maize for animal fodder to Reunion, however in 2002 the maize export declined and the village of Tsianisiha produced only 30 tonnes of maize while the village of Ankilimalinike produced only 200 tonnes of which 120 tonnes were consumed locally. Despite its geographic strategic advantage, its supply chain suffered inefficiencies and subsequently, the region lost its competitive edge.

Rice is the preferred staple diet of the people in the study area and it is grown wherever there is enough water, but particularly around the Manombo River near Ankililoaka. Since the collapse of the irrigation system, rice production has decreased in the study area.

Manioc is essentially a subsistence crop. While people prefer to eat rice, manioc is the staple food in periods of drought and in between the rice harvests. In 2002 the yield for manioc in Tsianisiha was 150 tonnes and in Ankilimalinike 1 650 tonnes. For the latter 650 tonnes was consumed locally.

Sweet potatoes, pois du cap (Phaseolus linctus), lojy or antsoroko (Vigna sinensis), hantake (Dolichos lablab), butter beans, lentils, banana, mangoes, papaya and sugar cane are other subsistence crops cultivated by most of the villages in the study area, and surplus is often sold at local markets. Other crops grown include kira (green vegetables), carrots, cucumber, salad, and a Chinese leafy vegetable “petsay”. Some farmers take their surplus produce to Toliara Town, or alternatively collectors visit villages and local markets to purchase produce. Sugar cane is used locally for the preparation of rum.

In most of the villages household heads are responsible for farming. Men do the ploughing and the sowing of the seeds with their sons, while weeding and harvesting is done by both men and women, and women are usually responsible for selling excess crops at local markets (Tucker et al., 2010).

Generally maize is planted throughout the year, and other crops are planted mostly during the wet season that runs between January and March. Cassava and maize are sold in June, July, August and September albeit for fairly uncompetitive prices as the crops are usually in abundance and lack the flavour and nutrient composition of wild foods. The seasonal calendar in Table 6.1 shows the planting and harvesting periods for the main crops in the study area.

Despite the high efforts invested in agricultural production, 77 % of the surveyed households stated that they experienced food shortages at some point during the year, predominantly in the period between January and March. Of the 77% households interviewed, 42% stated that this was mainly due to natural calamities, which is illustrative of the relative vulnerability of households to natural shocks and weather events. A further 39% of the surveyed households indicated that they struggled to produce enough food to feed their families, likely linked to farmers’ reliance on subsistence practices characterised by a lack of inputs or modern tools.

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Table 6.5: Seasonal calendar for the study area Activities/ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Characteristics Rainy seasons (asara) Hunt and gather Forest burning and clearing Cotton sowing Cotton harvest Maize sowing Maize harvest Rice sowing Rice harvest Cassava planting Cassava harvesting Charcoal Malaria Flu and coughs Circumcision Wedding Fanambadiana Bathing of royal relics Tromba (spirit possession) Bilo Period of least food Schools closed

6.2.2 Animal Husbandry

Zebu are the most important type of livestock in the area. These are not reared for commercial purposes but rather sold and bought according to a family’s financial needs. In times of financial constraint zebu are sold for cash, and when there is extra income, this money is promptly invested in purchasing cattle. Besides being a measure of wealth, cattle are used during sacrificial ceremonies and as working animals to transport goods and people and to plough fields. On average households in the study area own 12 heads of cattle. However some families own larger herds of approximately 50 heads of cattle, while others own none (Plan communal de developpement, 2003).

Zebu generally roam freely in the communal areas and requires minimum management. However, with increasing cattle theft zebu are now herded by paid herdsmen who during the dry season watch over grazing in the forested areas south of the mining concession. In order to provide sufficient grazing land for the cattle, areas of grassland are regularly burned to encourage new grass growth (Van Vlaenderen, 2006).

Besides zebu, most families in the study area keep goats and chickens, and some families raise sheep, turkey, geese and pigs. Most livestock are sold opportunistically, when there is need for cash, and occasionally animals are slaughtered for consumption. This is with the exception of chickens which are often sold and prepared for guests, while zebu meat is regularly bought at the local market in Toliara.

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Although 80% of households in the household survey own farm animals, the bulk of ownership is limited to small quantities of animals comprising mainly chickens, zebu and goats. Chickens are owned in the largest quantities, and ownership of large herds of zebu or flocks of chickens are limited to just under 10% of the surveyed households.

Animal husbandry meets with multiple challenges, not least of all the difficulties and expense related to obtaining proper vaccines. Veterinary clinics are practically unknown outside of the capital, and most households are unable to cover the costs of transporting a vet to their homes for assistance.

Additionally, cattle theft is a serious problem in the area, and the security in the region has been greatly taxed by the growing presence of Dahalo, roving groups of bandits who practice cattle rustling. They are well organised, plot out their strikes thoughtfully in advance, and are typically armed with rifles, which they have been known to use. To respond to the violent and regular incursions of Dahalo, villages have set up their own security systems. Due to the increase in zebu theft families have also started investing in pigs (who can more easily be supervised) rather than in cattle.

Prices for livestock are dependent on the size and gender of the animal. In the study area, the price for a zebu ranges from MGA300 000 to MGA500 000, while a sheep can cost anything between MGA70 000 and MGA100 000, and a goat can cost between MGA80 000 and MGA100 000. Chicken are sold in most local markets, and prices for chickens range from MGA5 000 to MGA15 000.

6.2.3 Charcoal Makers

Charcoal is produced by men, women and children mostly during the dry season between May and October, and although charcoal making is considered an illegal practice, it is allowed if charcoal markers are registered with the Association of Coal Producers, “TONGASOA”, and produce a maximum of 30 bags every three months. This Association was initiated by the World Wildlife Fund (WWF) after the Government tried to prohibit the production of charcoal, and it is based in Ankatrakatrake.

In the study area 23% of the charcoal producers have operating licences, and during focus group interviews it was difficult to establish the amount of charcoal produced by these individuals given the reluctance to share information about an illegal practice. In the household survey only six survey participants (3%) claimed that they produce charcoal.

However, the research team observed widespread production and rudimentary storage sites suggesting that impositions and fines on unregulated charcoal production may lead individuals to deny participation in the trade even though the charcoal business, which started in 1980, is rapidly expanding, and almost all villages in the study area engage in the charcoal trade.

6.2.4 Rum Production

Rum is produced throughout Madagascar, and the popular toaka gasy, is usually made in small production runs at the village level. It is a crucial component of many religious ceremonies, and is regularly consumed by a large portion of the population.

Homemade rum is not supposed to be sold, but this law is regularly ignored. For many homes, rum provides an important source of income when crop yields are low, as demand for alcohol is constant. Even at the lowest level of production, a household may make about MGA36 000 (USD18) per year, though research shows that more diligent producers can

Coastal & Environmental Services 229 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 earn as much as MGA2 560 000 (USD 1 280), which is triple the average national household income.

Rum is produced from sugar cane mixed with a substantial amount of perfumed bark, largo, to drive the distillation process, and as a result this production process adds extra strain to existing forest resources as areas are cleared for sugarcane farming, and trees stripped of their bark die.

6.2.5 Artisanal work and trade

Many households in the study area secure multiple livelihood opportunities in order to hedge against crop failures or other unforeseen disasters. For some, this means developing artisanal skills and offering services to neighbours. Artisans in masonry, carpentry, sewing, basket weaving and forest forging make up a small segment of the population (2%), and due to supply constraints and the upfront costs of materials, carpenters and iron-workers usually only build and craft on request.

Carpenters tend to construct carts, boats and furniture, and women tend to sew and weave baskets from reeds collected from lakes or river beds. Of the households surveyed, only 7% indicated possessing an artisanal skill, namely dressmaking and masonry.

Very few people are employed with government institutions and a small percentage of the population are employed by the tourism, and in the Non-Governmental Organisation (NGO) sector. For example Spirnam is an NGO growing Spirulina for commercial sale in the area. Most villages do however have at least one small bar and shop selling diverse goods such as soaps, basic foods – both perishable and preserved – cell phone airtime, plastic wares and other daily necessities.

Outside of Toliara I, there are a few large businesses, but there are approximately 3 400 microenterprises employing 70% of the private-sector labour force. They are involved in property development, construction, transport services, restaurant and hotel management, extractive industries (typically in small scale gem or mineral mining), and basic retail.

6.2.6 Other natural resource uses

Local households are very dependent on natural resources for their livelihoods. In the study area men are reported to hunt wild animals during the dry season using riffles, and snares to capture small animals including kibo, tandraky, and tambotriky, and given the heavy reliance on subsistence farming, it is not surprising that hunting and collecting plants are an important resource for the daily survival of the villagers.

The forest provides wood for constructing houses, fences, boats, oxcarts, furniture and sculptures, and wild fruits (lamoty, andranaha, kapiky ala), and tubers (ovyala, babo, balo, sosa, fagnitsy) for household consumption, as well as honey and medicinal plants.

According to the WWF more than 20% of the forest species are used for medicinal purposes and forest animals such as, guinea fowl, bush pig, tenrecs and tortoises are hunted.

Forests are generally held in high regard by local people and are believed to be populated by spirits of the ancestors. Villagers revere certain trees as sacred such as the Tamarindus indica L. (Kily), and the baobab, which is often situated in or on the edge of the village and which is used for community meetings and offerings.

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The area around Ranobe Lake provides reeds (vondro – Typha angustifolia) for thatching, and some dwellings are constructed from wattle and daub with a thatched roof, whilst others consist of concrete blocks with a corrugated iron roof.

In the household survey, not a single participant admitted to hunting small animals or birds, only two respondents stated that they collected wood for furniture production, and a limited 10% of the participants confirmed that they collect fuel wood for energy, however, informal discussions with villagers and observations in the field suggest that locals regularly practice these activities. Given that forest harvesting for timber use is frowned upon by local conservation groups and the WWF, the fear of fines, and or other legal repercussions may have guided participants’ responses.

6.2.7 Conservation

6.2.7.1 Community based resource management

The natural resources in the study area are currently under threat. In addition to the destruction of the forest as a result of charcoal production by local villagers, commercial timber extraction by companies in Toliara (much of which is allegedly illegal) is also on the increase. Licenses for the exploitation of timber for local and commercial use in the forested areas are granted by the Ministère de l’Environnement des Eaux et Forêts. However, as a result of over-consumption of natural resources, abuses of the licensing system and current trends in participatory conservation management, community based natural resource management initiatives in the area have been developed.

For example, FiMaMi (Fikambanana Miaro ny Alan’I Mikea), an inter communal association for the conservation of the Mikea Forest, consisting of the mayors of all the firaisana around the Mikea forests was set up as a network for conservation and development in the Mikea region, and to take over the execution of some of the government functions with regard to management of natural resource use. As part of this initiative, management of local resource use is negotiated between local stakeholder communities. This is called Gestion Local Sécurisée (Gelose).

The Gelose is organised at three levels, namely at the committee concentration (at village level) at the structure communale (commune level) and at the structure inter communautaire (at firaisana level). Once agreement is reached on resource use issues at all levels, a dina, which is a kind of interior rule based on local custom, is formulated. The decision made by the Gelose and the dina are subsequently ratified by national law.

These new initiatives are still in their initial stages and currently work parallel with Government structures. In the study area there is only one Gelose, namely in the village of Ranobe. The Malagasy organisation SAGE currently provides capacity building services for the Gelose.

6.2.7.2 WWF Project for the creation of a protected area

The WWF’s work in the district is heavily focused on restoring and protecting portions of the country’s unique Mikea forest, a transition ecosystem with attributes of both the South’s spiny forest and more northern deciduous forests. Despite its importance as a biome supporting endemic species – some areas report 90% plant endemism – as well as rare species, such as threatened tortoises and lemurs, the forest in its entirety is not protected by the government, and is subject to rapid degradation trends, notably as villagers seek more farmland, fuelwood and biomass for charcoal production. Attempts have been made to decentralize management of the forest, through the State’s “Gelose” (Gestion Locale de Securité) system which devolves management rights to villages bordering forest.

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The mine lease area neighbours an area that is currently the focus of a conservation initiative. The World Wide Fund for Nature (WWF) funded by Conservation International (CI) is undertaking a feasibility study for the creation of a protected area located between the Fiherenana River in the south and the Manombo River in the north. The western boundary of the area of interest is the sea, whilst the Plateau Mikoboka forms the eastern boundary.

Seven communes are concerned by the WWF conservation project: Behompy, Belalanda, Miary, Tsianisiha, Maromiandra, Marofoty and Ankilimalinike. The activities of the WWF project affect approximately thirty fokontany of these communes.

The project intends to identify several zones in the proposed protected area. These include a hard core zone, including the different habitats (plants and animals), for complete protection; buffer zones which will allow limited activity and resource use, a service zone for tourism and educational activities and, an area for habitation of the people who already reside in the area.

In line with current conservation philosophy, the conservation plan will be developed in consultation with the local population and will include a sustainable community development plan. Since the mining lease area neighbours the proposed conservation area, close collaboration between the mining project proponent and the conservation initiative is important.

6.2.8 Existing Land Use Impacts

6.2.8.1 Over-exploitation of resources

At present there is a considerable degree of resource utilisation; people collect plants and, to a smaller extent, wild animals from the Ranobe Forest that provide for their needs with respect to health, shelter, food and income. Currently the Ranobe Forest is decreasing at an alarming rate as illustrated in Figure 6.10 below which shows satellite images of the northern part of Ranobe forest. It is evident that large portions of forested areas have been cleared. In the top left image all forested area in the north are intact, whereas in 2005 (top right) large cleared patches in the forested area are evident as pink patches on the image. This is where soil has been exposed, and the canopy is no longer intact. By 2010 a vast swathe of forest had been cleared, with the open area almost bordering with the vegetation of the calcere to the east (right). By 2011 almost no forested area is present in the central part of the image (light coloured areas) and clearing to the south is also evident. Note the large amount of calcere vegetation cleared (compare the top right and bottom right images). This trend is unlikely to remedy itself and is anticipated to worsen over time as populations within the area increase.

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Figure 6.10: Satellite images of the Ranobe project area in 2000, 2005, 2010 and 2011

Impact 1: Hardwood Trees

Cause and comment

Hardwood trees are preferred for charcoal production in the area. On-site investigations showed that the majority of hardwood trees within the Ranobe Forest area have already been cleared and the few that remain are seedlings and/or saplings. The lack of hardwood trees have subsequently resulted in the use of woody shrubs for charcoal production. According to Mr Anthony from Ranobe Village attempts to propagate various hardwood species in a nursery in Ranobe Village have been unsuccessful to date.

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Significance Statement

It is definite that communities will continue to harvest hardwood trees as currently their livelihoods depend upon this. The nature of the impact would be Permanent. The impact is of high severity and of HIGH significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Permanent Study Area Definite Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance N/A N/A N/A N/A N/A

Impact 2: Softwood Trees

Cause and comment

Softwood trees such as Givortia are utilized for the construction of dug-out boats and stills. Even though the uses of these trees are limited large amounts are still harvested on an annual basis. To date baobab trees were not harvested on a regular basis and are used only for fibre and fruit. However in recent months it was established that these trees are being cut down to water cattle. It is anticipated that this situation will be exacerbated should more uses for these trees be discovered.

Significance Statement

It is probable that communities will continue to harvest softwood trees to construct dug-out boats and stills. The nature of the impact would be Long term. The impact is of moderate severity and of MODERATE significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Probable Moderate MODERATE - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance N/A N/A N/A N/A N/A

Impact 3: Medicinal Plants

Cause and comment

A large number of plants are utilised for medicinal purposes. These plants however are not harvested on a regular basis but rather based on need. In addition to this the majority of the plants utilised are not removed in their entirety since only specific parts of plants such as the roots, leaves, stems etc. are used for any particular cure.

Significance Statement

It is probable that communities will continue to harvest plants for medicinal purposes. The nature of the impact would be medium term. The impact is of low severity and of LOW significance.

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WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Local Probable Slight LOW - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance N/A N/A N/A N/A N/A

Impact 4: Wild Foods

Cause and comment

Various plants are utilised for consumption at the end of the rainy season and during the dry season when food is scarce.

Significance Statement

It is probable that communities will continue to harvest wild foods from the forest. The nature of the impact would be long term. The impact is of moderate severity and of MODERATE significance.

Impact 5: Loss of Fauna from Hunting

Cause and comment

Hunting is another source of wild food, however, this is largely opportunistic and limited to small animals such as pigs and tortoises as well as birds.

Significance Statement

It is probable that communities will continue to hunt wild animals from the forest for consumption. The nature of the impact would be long term. The impact is of moderate severity and of MODERATE significance.

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Impact 6: Fuelwood

Cause and comment

All the villages visited appear to be able to access fuelwood easily in the immediate vicinity of the village or within 1 km of the village. For this reason fuelwood is not readily sourced from the Ranobe Forest.

Significance Statement

It is probable that communities will continue to harvest fuelwood, however it is unlikely that this will be from the proposed project area. The nature of the impact would be medium term. The impact is of low severity and of LOW significance.

Impact 7: Species of Special Concern

Cause and comment

Various species of special concern are currently being harvested for various purposes, such as Dalbergia xerophila which is listed on the IUCN as endangered, and which is used for both building and charcoaling purposes.

Significance Statement

It is definite that communities will continue to harvest species of special concern as currently their livelihoods depend upon this. The nature of the impact would be Permanent. The impact is of high severity and of HIGH significance.

6.2.9 Construction Phase Impacts

Impact 1: Loss of natural resources

Cause and comment

An area of the Ranobe forest will have to be cleared for the construction of the proposed heavy minerals mine and associated infrastructure. It should however be noted that even though the proposed mine will affect a large area (approximately 455 ha) over its lifespan, only a limited area (approximately 35 ha) will be impacted upon at any given time due to progressive rehabilitation. This will result in significant impacts on natural resource use since

Coastal & Environmental Services 236 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 these resources provide households with building materials, food, medicine and income (i.e. charcoal production). It is anticipated that in addition to natural resources some grazing land will also be lost. This however is not expected to be significant due to the low livestock numbers, the poor quality of the grazing in the mine deposit area, the lack of water sources in this area and the high risks of livestock theft.

Mitigation measures

 The area has to be rehabilitated progressively with species that are utilised by the local communities for various purposes;  It is recommended that villages have controlled access to the proposed mining area prior to clearing commences to harvest all available resources; and  The implementation of measures that would allow local residents to access the forest resources that are cleared could also help to meet local needs and reduce the pressure on the remaining forest resources.

Significance Statement

It is definite that the removal of vegetation will be required for the construction of the mine and associated infrastructure. The nature of the impact would be short term as the area will be mined and rehabilitated in phases. The impact is of moderate severity and of MODERATE significance as it is anticipated that under the no-go situation these areas will be regularly harvested and even cleared for grazing purposes. With mitigation measures in place this impact could be reduced to that of LOW significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Short Term Study Area Definite Moderate MODERATE - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Short Term Study Area Probable Slight LOW -

Impact 2: Clearing virgin land for small scale farming as a result of agricultural displacement

Cause and comment

There are a number of grazing areas and agricultural land within the proposed concession area. Locals who are economically displaced by the proposed development may clear additional areas within the Ranobe Forest to continue these livelihoods, resulting in an induced secondary impact.

Mitigation measures

 Toliara Sands will have to replace any arable land parcels that they displace from their mining activity. This process will have to be dealt with in the Resettlement Action Plan (RAP).  Facilitate (including sourcing potential funders) alternative and environmentally sustainable forms of local economic development, such as establishing woodlots for charcoaling, improving agricultural practices to produce larger yield on existing land parcels etc.  Consideration should be given to assist with the improvement of surrounding agricultural practises by providing guidence to improve the existing irrigation canal

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and scheduling of irrigation water. This will increase yields in those areas and could potentially form part of WTRs social responsibility.  Monitor vegetation clearing activities in the general project area, beyond the Ranobe Mine project boundaries.  Implementation of a programme to monitor the rate of vegetation clearing is a crucial activity. Annual monitoring during the planting season must be carried out and must consist of monitoring the presence of and impacts on identified intact spiny thicket areas within the project area.

Significance Statement

It is probable that communities will clear the adjacent Ranobe Forest due to being displaced by the mine. The nature of this secondary impact would be long-term. The impact would be severe and of HIGH significance. The mitigation measures provided would reduce the likelihood of clearing and the severity, and the overall impact to MODERATE.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Probable Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area May Occur Slight MODERATE -

Impact 3: Increasing demand for natural resources

Cause and comment

The proposed development is likely to result in the in-migration of job seekers, the employment and accommodation of mine staff, increased tourism (linked to improvements in infrastructure and increased demand for accommodation, meals and entertainment by mine staff), and increase trading opportunities. This influx of people needing accommodation, meals and entertainment and improved infrastructure is likely to increase the demand for charcoal, building materials, thatch and other natural resources.

Mitigation measures

It is recommended that an influx management plan is developed for the proposed Ranobe Mine to deal with the issue of in-migration in its entirety.

Significance Statement

It is probable that there will be in-migration to the area due to the potential for employment. The nature of this secondary impact would be long-term. The impact would be severe and of HIGH significance. The mitigation measures provided would reduce the likelihood of clearing and the severity, and the overall impact to MODERATE.

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Impact 4: Capacity of institutions to manage use of natural resources

The capacity of local management institutions to effectively regulate the use of natural resources and ensure compliance with rules is expected to be undermined as a result of 1) the loss of forest resources and increasing pressure from existing population, 2) increasing demand for resources due to the influx of job seekers, mine employees, and tourists, 3) the lack of knowledge and reduced compliance with rules due to in-migration. It is already clear that local management institutions have struggled to control and restrict engagement in charcoal production amongst local residents in recent years, even deep in the Ranobe forest. While there are rules these are often not adhered to and the local authorities appear to have little ability to discipline offenders and ensure compliance. This impact will affect the concession area and immediate surrounds, but may also impact on areas further afield.

Mitigation measures

If possible it is recommended that the Ranobe Mine Project contribute to government departments such as Madagascar National Parks and NGO’s such as WWF to assist the protection of the remainder of the Ranobe Forest and any high value conservation areas in PK32. In addition to this the establishment of woodlots and agricultural programmes may result in a reduction of harvesting from forested areas which may alleviate some of the stress placed on local management institutions.

Significance Statement

At present existing capacity to manage the proposed protected area of PK32 is limited, and degradation of the environment continues, as described above. This is due to, inter alia, the limited capacity and resources available to Madagascar National Parks, resulting in a long- term severe impact of HIGH significance. The mitigation measures provided would help to improve existing capacity, and mitigate this constraint, resulting in an impact of MODERATE significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Regional Probable Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Regional May Occur Moderate MODERATE -

6.2.10 Operation Phase Impacts

The operation phase impacts on natural resource use are exactly the same as the construction phase impacts (Section 6.2.9) as discussed above.

6.3 Description of the Economy

6.3.1 National economy

Madagascar is a very poor country (estimated US $430 per capita annual income in 2011), with poverty rates estimated at around 69 % (CIA 2011). Economic growth over the period 2000 to 2011 has declined from a high of 7.2% in 2008 to 1% in 2011 (World Bank, 2011). After the 2002 political crisis the Madagascan government committed itself to major public investment in road infrastructure and renewed its attempts to promote public-private partnerships, attract foreign investment and reform land ownership laws. There has also been a commitment to tackling problems of corruption, but reform in the governance sector

Coastal & Environmental Services 239 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 has been perceived internationally as lagging. Despite these reforms, considerable foreign investment and economic growth that occurred during this period, poverty remained high especially in the rural areas. In 2004 economic growth was again hampered by currency depreciation and rising inflation (15%).

In 2004 and 2005, the government announced a comprehensive package of measures to stabilise the economy (under pressure from international financial institutions) (World Bank, 2005). These reforms included typical neo-liberal economic reforms, such as privatization and the development of export processing zones. This strategy was associated with slow and steady growth with a considerable boom in exports of apparel due to duty-free access to the US markets. However, access to this market was cut off in January 2010 when the country failed to comply with the requirements of the African Growth and Opportunity Act. This had large job impacts in the textile industry. Political crises reared its head again in 2009, along with the international financial crisis and recession. Tourism dropped by more than 50% in 2009 (CIA, 2011).

Agriculture, including fishing and forestry, is the mainstay of the economy. It accounts for one-quarter of GDP and contributes more than 70% to export earnings. The main agricultural products are: coffee, vanilla, sugarcane, cloves, cocoa, rice, cassava (tapioca), beans, bananas, peanuts and livestock – mainly cattle, goats, ducks and chickens. In rural areas 90.1% of the active population is employed in agriculture; in urban areas it is lower at 71.8 % (INSTAT, 2004a).

The main industries are the beverage and food processing industry, the energy sector and tourism. The latter mainly focuses on tourists from France.

In 2010 Madagascar had $916 million worth of exports. The main exports in 2010 were textiles ($240.7m), vegetable products ($105.6m), machinery ($83.2m), foods beverages and tobacco ($84.4m), minerals ($77.2m), ), animal products ($75.6m), vehicles ($35.2m), chemicals ($29.8m), processed animal skin products ($17.7m); pulp and paper ($19.1m), base metals ($18.9m), pearls and precious stones ($15.5m), wood and wood products ($15.8m) (Index Mundi 2011). The total value of imports in 2010 was $2053m, with the most significant being machinery, ($553.3m), textiles ($261.8), base metals ($227.3m), vehicles ($157.7m), foods beverages and tobacco ($128.3m), and vegetable products ($117.8m), (Index Mundi 2011).

Transportation in Madagascar relies on an extensive air network, with scheduled Air Madagascar flights serving many relatively small towns, as well as the main cities. The road network is extensive but often in poor condition; many roads become impassable during the rainy season. A small rail network connects several towns on the central highlands and connects Antananarivo with the East coast port city of Toamasina. Sea transport accounts not only for a great part of international trade, but also for local exchanges by coasting vessel between coastal regions.

6.3.2 Regional economy

The Southwest Region is one of the poorest of all the Madagascan provinces. As indicated by the data in Table 6.6 below, the Toliara formal economy is dominated by the tertiary service sector, which included around 86% of all formal economic business enterprises in 2004. The secondary manufacturing sector makes up around 13% and the primary sector (agriculture and mining) including less than a half a % of enterprises. These figures do not, however, take account of the informal and subsistence sector economic activities, and therefore underestimate the contribution that agriculture makes to the region’s economy. It is also evident from that the formal sector of the economy grew quite significantly between

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2003 and 2004 with the number of enterprises rising by 28%, again mostly in the tertiary sector.

Table 6.6: Number and % of enterprises in each of the main economic sectors of the Toliara Economy in 2003 and 2004 (Source: INSTAT, 2004b) Economic Sectors 2003 2004 No. % No. % Primary Sector 5 1 6 0.5 Secondary Sector 151 17 167 13 Tertiary Sector 736 83 1068 86 Total 892 100 1241 100

Small businesses owned by sole proprietors account for about 95% of all enterprises. Most of these businesses are what are termed informal sector businesses. Private firms and corporations which form the formal sector make up only 4% and the remainder are cooperatives or NGOs etc., which also form part of the formal sector.

An examination of the different types of economic sectors indicates that the regional economy is dominated by small retail businesses owned by sole proprietors. This sector accounted for 40% of all enterprises in 2003 and 48% in 2004. The next largest sectors (according to 2004 data) are the transport sector (15.6%), followed by the bulk retailing sector (wholesale) (9.2%), the building and public works sector (BTP) (7.1%) and the tourism/hospitality sector (hotels, restaurants and bars) which accounts for 6.8% of the enterprises. Note that the number of small businesses more than doubled between 2003 and 2004.

The BTP sector was the largest employer amongst the formal enterprises with 23% of the workforce (233 persons), but laid off half its workforce between 2003 and 2004. More significant job losses in this sector may also have taken place since then due to the World Bank and European Union policies not to finance public works until new elections in 2013. The next two largest employers (according to 2004 data) are the mining and transport sectors, which accommodate 16% and 15% of those employed. Both of these sectors increased the number of persons they employed between 2003 and 2004, but the most substantial increase was in the mining sector where the number of employees increased from 41 to 165. There was also significant growth in employment in the small retail business, food, agriculture and fisheries sectors. However, once again these increases may be due to improvements in the registration and recording of small-scale informal business activities.

Data from the Ministry of Tourism (INSTAT, 2003) indicates that there are far more tourism businesses operating in the Southwest Region than indicated. Consultations with resort owners in the Toliara II region indicate that the average number of persons employed in these resorts is somewhere in the region of 15. Using this figure and the number of resorts this suggests that there may be as many as 300 persons employed in this sector in the Toliara II region.

CES’s survey of tourist resorts in the area between Toliara Town and the Manombo river to the north of the proposed mine site, found that there were 15 hotels, two guest houses and three resorts that offer self-catering or camping facilities. All of these resorts had restaurants and pubs some of them offer other activities and attractions. These resorts employ about 237 persons, 85% of whom (202) are employed full-time. The employment of part-time and casual workers appears to be quite uncommon. The minimum legal wage is approximately MGA100 000 per month in Madagascar. Managers and other highly skilled employees are expected to receive in the region of MGA200 000 per month. This amounts to a total income

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of MGA207 780 000 per annum derived by local residents from the tourism sector in the Toliara II district.

6.3.3 Local Economy

The local economy refers to the rural economy in the immediate vicinity of the proposed mine site.

The Estimated Value of Cash Incomes to Local Residents

Although some households are exclusively involved in one particular economic activity such as fishing or charcoal production, the majority of households in the study area have adopted a mixed livelihood strategy that includes crop cultivation, the rearing of cattle and goats and foraging and hunting in the forest. These activities are sometimes combined with fishing and/or charcoal production. The breakdown of traditional ethnic life styles and the need to reduce vulnerability and enhance food security in a climatically unpredictable environment are the main reasons for the adoption of mixed livelihood strategies.

A crude estimate of the total value of current annual incomes for the local population is provided in Table 6.7 below. This estimate does not include the value of produce consumed by the households. The estimates for agricultural incomes have been derived from the data on volumes of produce sold multiplied by the current prices. This is likely to represent an underestimate of the value of agricultural cash incomes. Estimates for vegetables/fruits, fish and natural resources are conservative and not based on reliable information about volumes and prices but on crude estimates based on relative importance to other income sources such as charcoal, maize production etc.

Table 6.7: Estimated value of annual cash incomes to local residents (2006) Livelihoods Volume/ Price Annual % of HHs # households Total Income Income Mass Maize 50 612.5 30,625 Cotton 1220 1150 1,403,000 Manioc 1150 2000 2,300,000 Rice 7830 750 5,872,500 Vegetables/fruits 0 2,000,000 Livestock 500,000 20 1,177 588,400,000 Fish 500,000,000 Charcoal 0 750,000,000 Thatch 0 495,000,000 Nat. Resources 2,000,000 Total Income from Land and Sea based livelihoods 2,347,006,125 Total Income earned from employment in the Tourism Sector 207,780,000

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6.3.4 Construction Phase Impacts

6.3.4.1 Economic impacts on the regional economy

Impact 1: Increase in income and expenditure due to direct employment

Cause and comment

The project is expected to provide jobs for around 500 people during construction.

WTR estimates that they will spend 13% of their annual operating budget on labour. Some of this wage bill will be paid to expatriate workers who will send most of their money to their countries of origin. Unfortunately, due to the lack of data on the value of regional income, it is difficult to assess how substantial this increase in wage incomes would be. It is however possible to conclude that this impact will definitely have a beneficial impact on the regional economy in the long-term.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact will definitely have a beneficial impact on the regional economy in the long-term, of HIGH significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Moderate Long Term Regional Definite HIGH + Beneficial WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Regional Definite Beneficial HIGH +

Impact 2: Indirect and induced impacts

Cause and comment

A large number of additional employment and income generating opportunities are expected to arise as a result of the contracting of service providers by the mine (indirect effects) and the purchasing of goods and services by mine employees (induced effects). The range of services expected to be contracted out include car hire, communications, catering, construction (machinery, buildings and infrastructure), transport services, clearing, rehabilitation, etc. These indirect and induced effects are likely to be most significant during the construction phase. Within the Southwest Region, (assuming that 20% of these effects accrue to the Southwest Region), the Ranobe Mine Project could result in the annual increase of 3.89 billion Ariary in economic output, and the creation of at least 838 jobs during the construction phase, as a result of the multiplier effect.

Mitigation measures

No suggested mitigation measures.

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Significance Statement

This impact will definitely have a moderate beneficial impact on the regional economy, of HIGH significance.

Impact 3: Leakage of employment and business opportunities

Cause and comment

The estimates of income and expenditure provided by the proponent indicate that the economic sectors most likely to benefit from the mining project during the construction phase are the building sector (4.04%), followed by the manufacturing sector (2.48%), fuel/petrol and transport (2.13%), trade services and energy (1.6%), commerce and food (1.26%), and agriculture (1.14%).

However, the data on the regional economy indicates that the Southwest Region has a very weakly developed construction, manufacturing and transport sector. This means that the Mine will have to contract companies outside the province to provide construction, manufacturing, transport and other services. As a consequence of this there will be a considerable leakage of economic benefits from the Province, possibly even as much as 80%.

Mitigation measures

This negative impact cannot be eliminated, but given the long-term nature of the Ranobe Mine Project, it is likely that over time these external service providers may open offices/business premises in the Toliara region and gradually employ more local residents. If this occurs the benefits to the regional economy will increase and the extent of this impact will be moderated. It may be possible to reduce this negative impact if appropriate mitigation measures are adopted. These could include requiring the mine to take into consideration 1) the extent to which local residents are employed by service providers, and 2) the extent to which supplies are sourced from local suppliers, as key criteria to be used to select preferred bidders for contracted service providers.

Significance Statement

This represents a severe negative impact over the medium-term, which will definitely occur. Suggested mitigation measures may help to reduce this negative impact from severe to moderately severe. It should be recognised however, that it may not be possible for service providers to source sufficient skilled labour and/or industrial inputs within the province over the short to medium term.

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WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Regional Definite Severe HIGH - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Regional Definite Moderate MODERATE -

Impact 4: Impacts on Toliara Town

Cause and comment

Toliara Town is likely to experience considerable benefits from the proposed development. such as increased business activity in the town. Local suppliers of food, refreshments, fuel, building materials, clothing, furniture and manufactured goods, as well as domestic services, translation, transport, trade, business, financial and communication services could benefit from the increased business provided by the mine and its employees.

The increased demand for services will also result in an increased demand on the government to provide infrastructure such as port facilities, roads, water, electricity, refuse disposal, schools, and health services. If the Government does not supply such services the benefits of the mine development will be reduced and increase the leakage of economic benefits from the region. However, the use of the port by the mine and immigration of skilled Malagasy and expatriate workers to the area and their accommodation in the town and local tourist resorts will also increase the tax base for the municipal authorities. If these tax revenues generated from the immigrants and from the mine are used to cover the costs of supplying the required services, then these infrastructural and service improvements will have considerable beneficial effects on productive and commercial activity in the town and province and will improve the prospects of attracting new productive and commercial activity to the area.

Mitigation measures

The municipal and provincial authorities need to ensure that they collect adequate tax revenues from residents, property owners and businesses to cover the costs of basic infrastructure and service provision and maintenance of these. The mining legislation for Madagascar also specifies that 1.4% (which is expected to amount to US$ 35million over the 21 year life of the mine) of the total 2% royalties paid by the mine to the government must be given to the Autonomous Provinces, Regions and Communes. This indicates that if the local governance structures exist and function efficiently and transparently, that a portion of these funds will accrue to the Toliara town authorities. This has the potential to increase their capacity to deliver the required services.

Significance Statement

These benefits are rated moderately beneficial and definite over the long-term. If the necessary services can be provided by the government, then these beneficial impacts can be increased to beneficial over the long-term with a HIGH significance rating.

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WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Moderate Long Term Regional Probable MODERATE + Beneficial WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Regional Definite Beneficial HIGH +

6.3.4.2 Economic impacts on the local economy

Impact 1: Increased income associated with increased direct employment opportunities

Cause and comment

Due to the low skills base amongst local residents and their agricultural and domestic orientation (as opposed to an industrial or mining orientation), it is unlikely that any local residents would be able to take up the skilled employment positions on the mine in the short term. However, given the mine’s stated intention to develop a training programme for their local employees and to give local residents preference in labour procurement processes, it is likely that local residents could obtain a significant portion of the unskilled jobs that become available and gradually increase their access to more skilled jobs. However, there will also be employment opportunities for local unskilled workers in the forest clearing operations, and social projects. It is expected that the environmental and social projects will employ approximately 150 additional local residents.

It is also assumed that there will be some opportunity cost associated with employment on mine related activities. Such employment will mean that there is less household labour available for the cultivation of crops or the production of charcoal. However, this negative impact is assumed to be cancelled out by the increased earnings from higher prices and new indirect income earning opportunities associated with the increased demand for goods and services from local residents by the mine and mine staff, as well as increased earnings from livestock due to the investment of wages in livestock. Using these estimates (and their underlying assumptions), it is estimated that total local cash income may increase by an estimated 4.6% during the construction phase as a result of direct employment on the mine.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact is rated as beneficial and probable over the long-term, and with mitigation of HIGH positive significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Moderate Long Term Study Area Probable MODERATE + Beneficial WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Probable Beneficial HIGH +

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Impact 2: Increased income earning opportunities linked to indirect and induced effects and job creation

Cause and comment

In addition to the incomes earned from employment on the mine, many local residents will be able to gain additional income from two other sources. The first of these is employment by contractors who are providing goods and services to the mine. This source of employment is likely to be more substantial during the construction phase. The second source of income is from the sale of goods and services to mine employees and service providers. This includes the sale of food, building wood, charcoal, and thatching, as well as the provision of domestic and other services. It is difficult to quantify these benefits, but assuming that local residents are able to benefit from at least 20% of these indirect and induced effects, it is estimated that these sources could increase income by another 24% during the construction and operational phases.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact is rated as beneficial and probable over the long-term, and of HIGH positive significance.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Probable Beneficial HIGH + WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Study Area Probable Beneficial HIGH +

Impact 3: Leakage of employment and income earning opportunities to outsiders

Cause and comment

Due to the low skills base amongst local residents and their agricultural and domestic orientation (as opposed to an industrial or mining orientation) it is unlikely that any local residents would be able to take up skilled employment positions that the mine will create in the short term. Although it is the mines stated intention to hire local labour wherever possible, it is not possible to guarantee that local residents would secure all the unskilled jobs unless there is very tight control over in-migration. This is difficult to prevent in poor flexible communal tenure areas that facilitate population movement and where residents and authorities often view population growth as a beneficial development process. Some unskilled jobs may therefore go to people who move to this area from other parts of the country. We anticipate that perhaps as much as 40% of unskilled jobs on the mine itself are likely to be filled by historical residents from the Southwest Region more generally.

Mitigation measures

These impacts could be reduced to slight severity if the mine takes measures to ensure that the number of local residents employed by them and their service providers is maximised. This would involve the adoption of a preferential employment policy for local residents that is implemented in conjunction with the local authorities. Such a measure is also recommended as a means of minimizing the extent of opportunistic in-migration. The provision of training

Coastal & Environmental Services 247 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 for local residents would also increase their prospects of obtaining and maintaining employment on the mine and increasing their wage levels.

Significance Statement

This impact is rated moderately severe over the medium-long term.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Regional Probable Moderate MODERATE - WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Medium Term Regional Probable Slight MODERATE -

Impact 4: Leakage of employment and income earning opportunities due to opportunistic in-migration

Cause and comment

If the development of the mine results in significant in-migration, then local residents may find themselves competing with outsiders not only for jobs but also for other informal income earning opportunities. If uncontrolled, there may also be a significant increase in demand for natural resources, water and agricultural land by outsiders that could reduce the resources available for current residents.

Mitigation measures

The key to mitigating this impact is for the mine to give local residents preferential access to employment opportunities linked to the mine. In addition, it should encourage its service providers to employ local residents. The effective implementation of such a policy will also require the co-operation of the local authorities to ensure that access to land and natural resources is effectively managed and controlled.

Significance Statement

This impact is rated moderately severe and probable over the medium to long- term. If the suggested mitigation measures are adopted by all the relevant stakeholders, this impact can be reduced to slightly severe and possible.

Impact 5: Loss of forest and grazing land

Cause and comment

As indicated in the Resource Use Report, the clearing of forests and woodlands for the mine will definitely result in a loss of access to valuable forest resources and some grazing resources for local residents. It will also result in a loss of access to some dry arable lands

Coastal & Environmental Services 248 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 along the plateau for some residents, and could result in economic hardship for the project affected people.

Mitigation measures

The loss of access to grazing, arable land and forest resources can be mitigated through the employment of local residents on the mine and related activities. If the employment of local residents is maximised, then this should provide adequate compensation for the loss of some grazing and arable lands. Additional compensation and lease payments made by the mine to the local land owners/authorities could also alleviate this impact, if these payments are used to mitigate income and savings loss impacts for affected households.

If in addition, the mine and government authorities allowed local residents to harvest the natural resources and wood before the land is cleared for mining throughout the life of the mine, then this impact could definitely be reduced to one of MODERATE significance.

Significance Statement

6.3.4.3 Economic impacts on the local tourism sector

Impact 1: Impact on tourism sector associated with increased demand

Cause and comment

The tourism sector could benefit significantly from the mine development if the mine and its expatriate staff make use of these resorts for accommodation and other visitors to the mine during the construction phase particularly. In addition, the tourist resorts will benefit from increased business from mine employees visiting local restaurants and bars and visiting overnight on weekends. These impacts are rated Probable and Moderately Beneficial over the long-term.

In 2007 the number of tourist resorts along the coastal area adjacent to the proposed mine site was 21 and these were estimated to have 185 rooms and 255 beds available. These facilities are expected to have grown over the last five years. Given this capacity, the increase in demand for these facilities and services by upper income mine staff members (30-60) is not expected to overwhelm the local tourist resorts. The additional business may also assist the resort owners to expand their facilities and possibly increase the number of persons employed. If there proves to be a clash of cultures and tastes between tourists and mine staff, then there is a possibility that some tourist may choose to go elsewhere. This would only result in negative economic impacts on the resorts (owners and staff) if tourists frequent these establishments more than mine staff members and spend more money at these resorts than mine staff members. At this stage it is not known whether this impact is likely to materialise and how significant it may be.

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6.3.5 Operation Phase Impacts

6.3.5.1 Economic impacts on the national economy

Cause and comment

According to the Economic Assessment undertaken the proposed project will definitely have beneficial long term impacts on:

 Total economic output (GDP);  Output of all productive sectors of the economy (Indirect Effect);  Remuneration of the factors of production - labour, capital and land. (Induced effects); and  Household incomes (Induced effects).

Direct effects associated with the proposed project are new value added by the project itself. Indirect effects are the new values added as a result of the backward and forward linkages between the mining sectors and all the other productive sectors of the economy (i.e. construction, industry, agriculture, trade, services, etc.). Induced effects are the new values created for households through the multiplier effect. The Ranobe Mine Project will have significant direct, indirect and induced effects on the regional economy. During the construction phase, almost 4 200 jobs may be created in the formal and informal sectors of the national economy through the indirect and induced effects of the project, while almost 1 000 jobs may be created during the operational phase.

The amount of foreign investment and foreign earnings from the sale of minerals will result in a significant increase in the availability of foreign exchange for Madagascar. This increase is in the range of 9-11% of the total value of foreign receipts and expenditure for Madagascar. Consequently, the Ranobe Mine Project is expected to definitely have a beneficial impact on the Madagascan terms of trade and balance of payments over the long-term.

Mitigation measures

The benefits of the Ranobe Mine Project to the national economy could be increased if measures were taken to ensure that the use of skilled expatriate labour was minimised and local persons were trained to fill these positions. WTR are already proposing to adopt such a strategy, but they envisage having to use a large number of expatriate workers during the construction phase. During the operational phase expatriates will be used during the first few years, but these persons will provide on-the-job training to skilled Malagasy employees who will eventually take over many positions held by expatriates.

Another strategy would be to maximise the use of Madagascan service providers. The indirect impacts of increased payments to other productive sectors have a more beneficial effect than direct payments for labour, due to the multiplier effect.

Finally, the benefits of the development could be increased if the amount of imports purchased was minimised and the purchase of domestic goods and services was maximised. While such a policy can be adopted, it should also be recognised that it may not be possible to source the industrial inputs required if these are not available locally or are not competitively priced. Due to the limited industrial development that has taken place in Madagascar so far, it will not be possible to limit all service providers to local companies or to significantly reduce the extent to which equipment and machinery is imported.

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Significance Statement

If the above mitigation measures are adopted as is the intention, then the beneficial impacts of the Ranobe Mine Development can be increased from Beneficial to Highly Beneficial and the negative leakage impacts will be reduced from severe to moderately severe. These benefits would be of HIGH significance for the Malagasy economy.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term National Definite Slight Beneficial MODERATE + WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term National Definite Beneficial HIGH +

6.3.5.2 Economic impacts on the regional economy

Impact 1: Increase in income and expenditure due to direct employment

Cause and comment

The project is expected to provide jobs for approximately 250-400 people during the operational phase, including those employed by the project directly by the mining and other contractors for example rehabilitation and providing services such as building, clearing, catering, vehicle hire. The 250 staff employed directly by TS provisionally will include 44 highly skilled, 76 skilled, 87 semi-skilled and 94 unskilled positions. Preliminary Human Resource studies undertaken by the proponent indicate that it will be possible for the company to source a sufficient number of skilled Malagasy persons who have tertiary qualifications and two years of technical work experience. However, most of these may not come from the Toliara District, but will have to be sourced from other parts of Madagascar. These studies do indicate however, that at least 30 capable mechanics could be sourced in the Southwest Region. It is assumed therefore that around 30 skilled employees will be sourced in Southwest Region and the rest (46) will be sourced from outside the province. More effort should be made to maximize Toliara based employee numbers. Over time the number of locally sourced skilled employees should increase due to participation in the company’s training programs.

The mining company also envisages the need to provide skilled employees with additional training to ensure that they can perform the tasks required. This training will take the form of on-the-job training to be provided by the skilled expatriate employees who will be brought in during the first five or so years of the project. In addition, the company plans to work closely with the University of Toliara to set up a technical and management training programme for its staff and prospective employees. This training will provide a long-term benefit to the Madagascan and Southwest Regions by enhancing the capacity and productivity of the workforce. The long-term employment prospects for those individuals who do receive training will also improve as a result of the training and work experience they acquire from the Ranobe Mine Project.

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Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact will definitely have a beneficial impact on the regional economy in the long-term, of HIGH significance.

Impact 2: Indirect and induced impacts

Cause and comment

A large number of additional employment and income generating opportunities are expected to arise as a result of the contracting of service providers by the mine (indirect effects) and the purchasing of goods and services by mine employees (induced effects). The range of services expected to be contracted out include car hire, communications, catering, construction (machinery, buildings and infrastructure), transport services, clearing, rehabilitation, etc. These indirect and induced effects are likely to be most significant during the construction phase. Within the Southwest Region, (assuming that 20% of these effects accrue to the Southwest Region), the Ranobe Mine Project could result in the an annual increase of 3.89 billion Ariary in economic output, and the creation of at least 838 jobs during the construction phase, and 3.2 billion Ariary and 200-400 jobs during the operational phase, as a result of the multiplier effect.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact will definitely have a moderate beneficial impact on the regional economy, of HIGH significance.

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Impact 3: Leakage of employment and business opportunities

Cause and comment

The estimates of income and expenditure provided by the proponent indicate that the economic sectors most likely to benefit from the mining project during the operation phase, will be the energy sector (2.32%) followed by the fuel/petrol sector (1.09%), transport (0.63%), commerce sector (0.59%), food and trade services (0.5%), and agriculture (0.38%). The impact on the energy sector will still occur even though the mine will be generating its own electricity using diesel. This is due to the indirect effects of increased demand and consumption of electricity by consumers generally and the employees and service providers of the mine.

However, the data on the regional economy indicates that the Southwest Region has a very weakly developed transport sector. This means that the Mine will have to contract companies outside the province to provide transport and other services. As a consequence of this there will be a considerable leakage of economic benefits from the Province, possibly even as much as 80%.

Mitigation measures

Significance Statement

Impact 4: Impacts on Toliara Town

Cause and comment

Toliara Town is likely to experience considerable benefits from the proposed development. The volume of goods handled by the port may increase from the current volume of 37 000 tons per annum to 80 000 tons. This is due to the fact that approximately 43 000 tons per annum of rutile/zircon concentrate will be transported in containers to the Toliara Port for export. There are also likely to be benefits from increased business activity in the town.

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Local suppliers of food, refreshments, fuel, building materials, clothing, furniture and manufactured goods, as well as domestic services, translation, transport, trade, business, financial and communication services could benefit from the increased business provided by the mine and its employees.

Mitigation measures

Significance Statement

6.3.5.3 Economic impacts on the local economy

Impact 1: Increased income associated with increased direct employment opportunities

Cause and comment

Coastal & Environmental Services 254 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 local employees and to give local residents preference in labour procurement processes, it is likely that local residents could obtain a significant portion of the unskilled jobs that become available and gradually increase their access to more skilled jobs. However, there will also be employment opportunities for local unskilled workers in the forest clearing operations, rehabilitation activities and social projects. It is expected that the environmental and social projects will employ approximately 150 additional local residents.

It is also assumed that there will be some opportunity cost associated with employment on mine related activities. Such employment will mean that there is less household labour available for the cultivation of crops or the production of charcoal. However, this negative impact is assumed to be cancelled out by the increased earnings from higher prices and new indirect income earning opportunities associated with the increased demand for goods and services from local residents by the mine and mine staff, as well as increased earnings from livestock due to the investment of wages in livestock. Using these estimates (and their underlying assumptions), it is estimated that total local cash income may increase by an estimated 13% during the operational phase as a result of direct employment on the mine.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact is rated as beneficial and probable over the long-term, and with mitigation of HIGH positive significance.

Impact 2: Increased income earning opportunities linked to indirect and induced effects and job creation

Cause and comment

In addition to the incomes earned from employment on the mine, many local residents will be able to gain additional income from two other sources. The first of these is employment by contractors who are providing goods and services to the mine. This source of employment is likely to be more substantial during the construction phase but will continue during the 21 year operational period through the provision of clearing, mining, rehabilitation, transport and other goods and services. The second source of income is from the sale of goods and services to mine employees and service providers. This includes the sale of food, building wood, charcoal, and thatching, as well as the provision of domestic and other services. It is difficult to quantify these benefits, but assuming that local residents are able to benefit from at least 20% of these indirect and induced effects, it is estimated that these sources could increase income by another 24% during the construction and operational phases.

Mitigation measures

No suggested mitigation measures.

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Significance Statement

This impact is rated as beneficial and probable over the long-term, and of HIGH positive significance.

Impact 3: Additional income from lease and royalty payments to local authorities and residents and from community development

Cause and comment

According to the 2005 amendments (Act 21 of 2005) to the 1999 mining legislation for Madagascar (Act 22 of 1999), 2% of the value of the sold mining product would be divided between the National State (who would receive 0.6%) and the Autonomous Provinces, Regions and Communes (who would receive 1.4%). In the Ranobe Mine project 1.4% is estimated to amount to US$ 35 million over the life of the mine (using the base case). However, it remains unclear how this amount would be shared amongst the provincial, regional and local authorities and what it would be spent on. In addition to these royalty payments, the mine intends to enter into lease agreements with the land owners (including the traditional owners who use the land) and make periodic lease payments for the life of the mine. Neighbouring communities who do not directly receive lease payments will benefit from a number of community development projects which improve the potential for local residents to benefit from business opportunities related to the mine. These include educational and training projects, and other service businesses related to rehabilitation and tourism development.

Mitigation measures

No suggested mitigation measures.

Significance Statement

This impact is rated as beneficial and probable over the long-term.

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Local Probable Beneficial MODERATE + WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Long Term Local Probable Beneficial MODERATE +

Impact 4: Leakage of employment and income earning opportunities to outsiders

Cause and comment

Coastal & Environmental Services 256 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 the short term. Although it is the mines stated intention to hire local labour wherever possible, it is not possible to guarantee that local residents would secure all the unskilled jobs unless there is very tight control over in-migration. This is difficult to prevent in poor flexible communal tenure areas that facilitate population movement and where residents and authorities often view population growth as a beneficial development process. Some unskilled jobs may therefore go to people who move to this area from other parts of the country. We anticipate that perhaps as much as 40% of unskilled jobs on the mine itself are likely to be filled by historical residents from the Southwest Region more generally.

Mitigation measures

Significance Statement

This impact is rated moderately severe over the medium-long term.

Impact 5: Leakage of employment and income earning opportunities due to opportunistic in-migration

Cause and comment

Mitigation measures

Significance Statement

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Impact 6: Loss of forest and grazing land

Cause and comment

Mitigation measures

Significance Statement

6.3.5.4 Economic impacts on the local tourism sector

Impact 1: Impact on tourism sector associated with increased demand

Cause and comment

The tourism sector could benefit significantly from the mine development if the mine and its expatriate staff make use of these resorts for accommodation and other visitors to the mine during the construction phase particularly, and continuing on a smaller scale during the operational phase. In addition, the tourist resorts will benefit from increased business from mine employees visiting local restaurants and bars and visiting overnight on weekends. These impacts are rated Probable and Moderately Beneficial over the long-term.

In 2007 the number of tourist resorts along the coastal area adjacent to the proposed mine site was 21 and these were estimated to have 185 rooms and 255 beds available. These

Coastal & Environmental Services 258 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 facilities are expected to have grown over the last five years. Given this capacity, the increase in demand for these facilities and services by upper income mine staff members (30-60) is not expected to overwhelm the local tourist resorts. The additional business may also assist the resort owners to expand their facilities and possibly increase the number of persons employed. If there proves to be a clash of cultures and tastes between tourists and mine staff, then there is a possibility that some tourist may choose to go elsewhere. This would only result in negative economic impacts on the resorts (owners and staff) if tourists frequent these establishments more than mine staff members and spend more money at these resorts than mine staff members. At this stage it is not known whether this impact is likely to materialise and how significant it may be.

Impact 2: Water supply impacts on the tourism sector

Cause and comment

The concerns about water supply issues are that the use of extensive ground water resources for the mining operation will reduce the amount of ground water resources available for tourist resorts and may lead to salt water contamination of the ground water resources. If the mine draws water from the alluvial aquifer this impact is rated as probable and moderately severe over the short to medium-term. This will also affect local communities. If the mine does withdraw large volumes of water from the alluvial aquifers or there is a possibility that access to water for local residents could deteriorate and could impact negatively on agricultural production and labour productivity, as well as on the Ranobe lakes and reed growth.

Mitigation measures

The hydrological study indicates that such impacts can be reduced to unlikely and LOW if the mine limits itself to using the Carsk aquifer during the rainy season. They also recommend that water resources and water use is monitored over time to ensure that such problems do not arise or can be addressed if they do arise.

Significance Statement

WITHOUT MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Short to medium Moderately Local Probable MODERATE - term Severe WITH MITIGATION Temporal scale Spatial scale Likelihood Severity Significance Short to medium Local Probable Slight LOW - term

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7. STUDY OF THE CLOSURE PLAN

7.1 Plan of rehabilitation

7.1.1 Rehabilitation to Date

Rehabilitation trials were implemented by Toliara Sands in 2006. The objective of these trials was to rehabilitate sampling sites impacted by bulk sampling for the pilot plant trial. Approximately 132 species were selected based on the following criteria:

 The future use of the area;  The degree of processing of the soil conditions and microclimates generated by the topography of the area;  Economic and environmental considerations;  Species Endemicity;  Species of Special Concern (IUCN list);  Species that provide important ecosystem services to the local community; and  Pioneer species that could promote rapid succession.

Seeds were collected in the Ranobe forest during the fruiting season. The selection criteria for seed collection was based on:

 Ripe fruit containing large and healthy seeds;  Recently fallen seeds; and  Seed availability.

In addition to seed collection, plants were also propagated using vegetative cuttings. Using the plants established in the nursery seven plots were planted; 5 inside the pilot plant site, 1 at the Ranobe site and 1 at the Tsiafanoka site. A total of 4050 seedlings, from 37 different species were planted between February and March 2007. These species can be classified into the following groups:

 Forest Species: 20  Pioneer Species: 9  Exotic Fruit Species: 4  Exotic Species (Not fruit trees): 4

Seedlings and plants were planted at a density of 5 plants/m2 in each plot. This is a high density of planting, and is unlikely to be economical at a large scale. Usually areas are over- seeded at a rate of 5kg/ha with indigenous pioneer species collected from ahead of the mining area. The focus of seed harvesting must be on easily harvested seeds. Seedlings are also harvested or propagated, and usually planted at densities of 1000 to 2000 plants per hectare (1 plant per 5 or 10m2). Table 7.1 indicates the number and percentage of living plants recorded during the monitoring phase for 2007 and 2010.

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Table 7.1: Summary of living individuals per plot Number of Number and (%) live Number and (%) live Plot Sites seedlings plants in September plants in 2010 (second Number planted 2007 half)

PP1 421 304 (72%) 276 (65%)

PP2 843 525 (62%) 569 (67%) Within the pilot PP3 263 186 (70%) 190 (72%) plant PP4 539 326 (60%) 392 (73%)

PP5 642 638 (99%) 535 (83%)

Ranobe Site RDS 244 123 (50%) 176 (72%)

Tsiafanoka Site TDS 427 388 (91%) 419 (98%)

Total 3379 2490 2557

The overall results from the rehabilitation trials to date indicate that exotic species have a higher survival rate than the indigenous species. In addition, monitoring of the species growth rates showed that exotic species such as Acacia sp. (Kasia), Moringa oleifera (Brede Morongo), Azadirachta indica (Nimo) have a fast growth rate while indigenous species like Givotia madagascariensis (Farafatse) and Cedrelopsis grevei (Katrafay) have slow growth rates despite being given fertilizer. Large native trees like Bauhinia madagascariensis (Bagnaky); Givotia madagascariensis (Farafatse); Rhopalocarpus lucidus (Talafoty); Neobeguea mahafaliensis (Handy); Adansonia rubrostipa (Fony), Dalbergia sp. (Magnary); Diospyros sp. (Lavahatsy) and Delonix sp. (Malamasafoy) had little to no survival after planting. Table 7.2 summarises the success rate of each species used in the rehabilitation trials.

Table 7.2: Number of live and dead individuals between December 2008 and August 2011 Number Number Number of Percentage of live of live Common Name Scientific Name dead of living species species individuals individuals (2008) (2011) Exotic Species Kasia Acacia sp. 17 0 17 0

Nime Azadirachta indica 34 32 2 94

Orange Citrus sp 64 0 64 0

Manga Mangifera indica 16 1 15 6

Brède monongo Moringa oleifera 63 27 36 43

Grenadine Punica granatum 27 1 26 4

Indigenous Species Acacia sp1 36 3 33 8

Fony Adansonia rubrostipa 146 3 143 2

Za Adansonia za 151 24 127 16

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Number Number Number of Percentage of live of live Common Name Scientific Name dead of living species species individuals individuals (2008) (2011) Tainakanga Albizia sp. 302 48 254 16

Cœur de bœuf Annona sp. 25 0 25 0

Bagnaky Bauhinia madagascariensis 178 0 178 0 Flamboyant nain Ceasalpinia sp. 11 6 5 54

Katrafay Cedrelopsis grevei 187 21 166 11

Fandrosy Clerodendrum sp. 10 0 10 0

Voanio Cocos sp. 6 4 2 67

Sarongaza Colvillea racemosa 126 48 78 38

Andranahaky Combretum sp. 247 32 215 13

Boy Commiphora sp. 145 20 125 14

Kalaogna Crataeva sp.a 102 0 102 0

Andriambolafotsy Croton sp. 7 1 6 14 Manary Dalbergia sp. 18 0 18 0

Fengoky, Malamasafoy Delonix sp. 6 0 6 0

Lavahantsy Diospyros sp. 98 13 85 13

Fany Entada sp. 138 41 97 30

Rotranala Eugenia sakalavarum 97 4 93 4

Famata Euphorbia laro 172 109 63 63

Somotsoy Fernandoa madagascariensis 379 102 277 27

Lamoty Flacourtia ramontchi 14 6 8 43

Voafotaky Gardenia sp. 104 20 84 19

Farafatsy Givotia madagascariensis 381 99 282 26

Katepoky Grewia grevei 7 1 6 14

Kapaipoty Gyrocarpus americanus 234 54 180 23

Satrasatra Jatropha mahafaliensis 358 116 242 32

Handy Neobeguea mahafaliensis 102 0 102 0

Vontake Pachypodium sp. 145 87 58 60

Sakoa, Sakoambanditse Poupartia sylvatica 44 7 37 16

Talafoty Rhopalocarpus lucidus 6 1 5 17

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Number Number Number of Percentage of live of live Common Name Scientific Name dead of living species species individuals individuals (2008) (2011) Hazomena Securinega sp. 268 48 220 18

Kily Tamarindus indica 35 11 24 32

Vaovy Tetrapterocarpon geayi 96 40 56 42

Hazomafio Zanha suaveolens 39 15 24 38

Unknown Valo Hibiscus sp. 29 12 17 41

Total 4712 1060 3652 22.5

It would not be advisable to propagate and plant any species with survival rates below 20%, and further work will be required to ascertain what methods could be used to improve the rate of survival. At the scale of mining, fertilization and frequent watering are likely to be too costly. Strategies such as the planting of an initial, nitrogen fixing cover crop such as Tephrosia sp. should be explored, as well as the use of hydrogel during planting to improve water retention around the root zone will need to be explored.

Toliara Sands have established two nurseries in Ranobe and Tsiafangoka villages where two women’s associations have been trained to run the nurseries for the mine. They not only grow plants for the rehabilitation of the mine but are encouraged to grow species such as fruit trees and fuel wood for their own needs. On-going challenges associated with the nursery and rehabilitation trials include damage from cyclones, which regularly destroy many individuals that have been planted, and the dry climate which has resulted in the failure of the reforestation program.

In conclusion the results of this preliminary analysis indicate that, whilst the rehabilitation of areas disturbed through mining as well as hard wood harvesting in the PK 32 area is possible, the main challenges will include:

1 Developing a rehabilitation programme that is cost effective. Seedling establishment and planting at densities greater than 1 plant per 5m2 is not likely to be affordable. 2 Identifying suitable indigenous pioneer, nitrogen fixing species for which seed harvesting can be cost-effectively achieved so these species can be sown to achieve an initial cover crop that stabilises the sand and improves soil conditions. 3 Developing strategies to improve the moisture and water holding capacity of soil in the upper layers of the mined out areas. For example, research in the arid environment of Western Australia, at Iluka’s Jacinth and Ambrosia heavy mineral sand mine has focused on developing ways to inoculate the soils with a biocrust and cyanobacterial bio-inoculum for use in mine rehabilitation (Doudle, Williams and Galea, 2011).5 This is because of the importance of biocrusts in intertwining soil particles to form an ecologically functional soil surface layer which encourages the growth of higher plants and reduces soil erosion. 4 Developing strategies to improve the survival of seedlings planted out in rehabilitated areas. Watering and irrigation are not likely to be affordable, and

5 S Doudle, W Williams and V Galea (2011) Improving rehabilitation outcomes using biocrust. Proceedings of the international minerals conference, Perth.

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further work on species selection and additional strategies to improve survival rates is required. 5 Identifying additional indigenous (and possibly non-indigenous) species that are able to achieve a survival rate of greater than 25%. Preliminary results (Table 7.2) indicate that a wide range of species did not survive in the rehabilitation trials.

Plate 7.1: August 2006

Plate 7.2: October 2007

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Plate 7.3: March 2008

Plate 7.4: Nursery established by Toliara Sands (March 2006)

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Plate 7.5: Nursery established by Toliara Sands (October 2007)

7.2 Decommissioning, rehabilitation and closure of specific components

7.2.1 Mine void

The Stage 1 mining operation will take 21 years to complete and will cover a total area of approximately 455 hectares. However, at any one time only a small part, around 10 – 35 ha of the deposit will be exposed. Vegetation and topsoil removal, mining, concentration and tailings disposal will occur as a continuous process. The composition of the sand tailings from the PCP, which amount to > 90% of the mined material, will be unchanged by the process and will be immediately returned to the mining void as backfill material.

Once the mine void has been backfilled (with a combination of tailings and slimes) the surface will be contoured and the topsoil that was previously removed and stockpiled as part of the clearing and stripping process will be returned and spread by bulldozers and replanted. As far as practical, the natural seed bank within the topsoil will be encouraged to germinate. This will involve developing the operational processes in a manner that minimises the length of time that topsoil is stockpiled.

Post-closure monitoring of stability of the area (i.e. formation of sink holes), radiation levels, vegetation cover, soil structure and nutrient profiles and water quality will be carried out to ensure that the area is stable and that the water is of quality that meets relevant legislative requirements and does not pose a risk to human or environmental health.

As stated before it is important to note that rehabilitation will occur as soon as is practical after mining and will involve backfilling, replacement of the topsoil and establishment of a cover of vegetation. It is recommended that monitoring begin within 6 months after an area has been rehabilitated. Rehabilitated areas should be monitored annually until 4 years after the mine has closed. Further biennial (once every two years) monitoring should occur after the mine has closed from years 4 to 10. Monitoring is to ensure that the area is being

Coastal & Environmental Services 266 Ranobe Mine Project Volume 2: EIE Mine Site – November 2013 actively rehabilitated and that the vegetation, whether it is natural vegetation, woodlots or agricultural fields, is being planted as per the agreed rehabilitation plan and is being actively managed. It is important to note that the current rehabilitation plan (Figure 7.1) is only a preliminary plan.

In terms of radiation, to allow for the possibility of exposure from other sources, operators are required to apply constraints to the exposure levels and limit the annual public exposure to 1 mSv per annum from all (their) operations, the international level for this constraint is 0.3mSv/annum from a single source. This is in line with the IFC and is derived from the International Atomic Energy Agency (IAEA). It is important to note that international radiation protection programs do not hold the operator responsible for background induced radiation doses. However such programs do hold the operator responsible for any radiation dose above the natural background. Therefore the main purpose of any radiation management programmes that will be implemented in the future is to ensure that the exposures to both workers and members of the general public are kept as low as reasonably achievable above the existing natural background.

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Figure 7.1: Proposed rehabilitation strategy for the Ranobe Mine Project

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7.2.2 MSP, PCP, workshops, administration, fuel storage areas and other infrastructure

Certain infrastructure may remain post closure. It is assumed that the buildings of the administration block, workshop and maintenance area will remain to support post closure use. Once closure is complete, a decision to either demolish remaining facilities or hand them over to Government for conversion into social infrastructure (e.g. schools, clinic) will need to be made using a consultative process.

All other infrastructure will be decommissioned as follows:

 Any surface buildings and infrastructure which are no longer required will be demolished, unless specific directives to the contrary are received from the authorities. Such directives may result from communities’ requests. This will need to be confirmed through a stakeholder engagement process undertaken as part of the closure plan goal refinement exercise.  Foundations will either be removed or will be covered with a layer of soil, or soil forming material, the depth of which will need to be determined following appropriate trials.  Non-re-useable materials including rubble and waste will be disposed of at suitable sites in accordance with the waste management and disposal plan that will be developed.  Following the removal of the infrastructure a soil contamination assessment will be undertaken by an independent specialist and remediation and re-vegetation activities implemented where necessary.  Support infrastructure buried underground such as tanks and their pipes, other pipes and service tunnels will, depending on the proposed future use of the site, either be kept as is or be unearthed and removed from the site. If they are to be left in-situ, the integrity of all underground pipes and tanks will be assessed by an independent expert. If the integrity of sub-surface infrastructure is compromised, it will be removed.  Remaining openings and access ways of support infrastructure will be blanked.  A detailed plan indicating the location of any remaining infrastructure will form part of the closure plan.  Electrical equipment and infrastructure i.e. generators will be removed from the site. The soils in the vicinity of the generators will be assessed for contamination and appropriate decontamination measures will be implemented, in accordance with Malagasy regulatory requirements. However, due to the lack of electrical infrastructure in the region, it should be considered that all electrical infrastructure is handed over to the community.  All disused mining plant and equipment such as the MSP, PCP, and heavy machinery will be removed from the site. It is not anticipated that any of this machinery or equipment will be contaminated. However, the mine will confirm this before any machinery or equipment is removed from the site. If any of the machinery or equipment is found to be contaminated it will be appropriately decontaminated before being removed.  During the mitigation and rehabilitation works, particular attention will be paid to the places where equipment will be parked. The mine will assess these sites and if the soils are contaminated appropriate remedial measures will be taken in compliance with Malagasy regulatory requirements.  There will be a landfill on site for general waste. The design of this dump has not yet been finalized. However the following design principles will apply: o The dump will be designed according to generally acceptable environmental standards and in compliance with Malagasy legislation.

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o The dump will be well managed at all times and wastes deposited will be covered in an ongoing manner. o On completion of the land fill the covers will be completed and re-vegetation of the cover undertaken. o The slopes of the dump will be designed to ensure that erosion is properly controlled at all times and stability of the slopes ensured. o The closure plan for the mine will include details for the closure of the landfill and will ensure that the closure of this specific facility meets the requirements of Malagasy legislation and international best practice. Post-closure monitoring of these facilities may be required.

7.2.3 General Surface Rehabilitation

General surface rehabilitation should ensure the surface topography emulates the surrounding area, is free draining (and does not allow storm-water to accumulate anywhere), has a “neat” appearance and is re-vegetated. Special attention must be given to shaping and removal of heaps of excess material, scrap and waste.

7.3 Closure Plan

7.3.1 External Monitoring Conceptual Closure Plan

In accordance with Malagasy law and IFC Requirements, a Mine Closure Plan for the Ranobe Mine Project will be required. This plan must support the operation in achieving a post closure status that leaves behind a positive legacy in the community. Health, safety, social, environmental, legal, governance and human resource aspects will need to be considered and addressed. However, the project is currently at the early stages, and hence it is not possible to produce a detailed closure plan. Thus, it is recommended that all Malagasy laws are adhered to and that the Integrated Mine Closure approach developed by the International Council on Mining and Metals (ICMM, 2008) be used as a guideline (Figure 7.2). This approach encourages planning for closure becoming part of the design of a mine operation in order to facilitate closure. When a project is designed, there is a lot of scope to do so with closure in mind. For example, designing mine infrastructure in relation to the community's requirements.

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Figure 7.2: The integrated mine closure planning approach recommended by the ICMM (2008)

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Thus, a mine closure plan for the Ranobe Mine Project will be developed by Toliara Sands, initiated at this early stage as a Conceptual Closure Plan (Figure 7.2). A conceptual closure plan should communicate an outcome and goals of the closure activities, whereas a detailed plan includes milestones, detailed methodologies of achieving these, monitoring and validation processes. This can only come later at the more detailed engineering design phase. It should however be noted that a Closure Plan for a heavy minerals mine may differ from the generic model in that rehabilitation (which forms part of the closure phase of the proposed development) will probably start within a few years of the operation of the mine. The nature of heavy mineral mining projects allows for progressive and ongoing rehabilitation of the mine path which is often not possible with traditional hard rock mines. The mine void will be backfilled and revegetated on an ongoing basis as mining progresses. This is substantially different from a hard rock mine where rehabilitation and closure generally takes place after all mining activities has ceased. For this reason a detailed rehabilitation and offset strategy has been developed for the proposed project and has been included in the Specialist Volume accompanying this report.

The Conceptual Closure Plan is developed and used during exploration, pre-feasibility, feasibility/design and construction to guide the direction of activities. Its active life may be a few years, but if well-defined and based on effective community and stakeholder engagement, it may not change much during this time. However, any closure plan must be reviewed at regular intervals over the life of the mine. Any change to, or new development associated with the project as currently proposed, would automatically trigger a revision of the Closure Plan and its budget to ensure that sufficient funds are available to cover any additional costs.

This section of the report therefore serves to provide some of the broader principles and methodologies that will be adopted by the company for closure planning, and essentially provides the outcome and objectives of the Conceptual Closure Plan.

The target closure outcomes of the mine closure plan are to:

1. Restore as much as possible of the mine area to a condition consistent with the pre- determined post closure land use objective. 2. Ensure that the mine area is left in a condition which poses an acceptable level of risk to public health and safety. 3. Reduce, as far as is practically possible, the need for post closure intervention, either in the form of monitoring or ongoing remedial works. 4. Minimise or prevent post-closure environmental degradation (to the soils, water and air), by ensuring that the mine area is left in a condition that is chemically and physically stable. 5. As far as practical, minimise the immediate negative economic impacts to local communities associated with mine closure and maximise the likelihood of lasting benefits to local communities. This will include leaving infrastructure in place that has a post mining value to the communities.

The standards against which the success of decommissioning, rehabilitation and closure of the mine area will be determined have yet to be formulated but should, as a minimum, comply with:

 The requirements of Malagasy Law;  The targets set by the ICMM Mine Closure Toolkit (2008);  The IFC Performance Standards and associated guideline documents;  The Equator Principles;  The company’s Environmental Policy; and  The company’s Social Policy.

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