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Strategic Environmental and Social Assessment of the Mining and Gas Sectors in Mozambique

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Strategic Environmental and Social Assessment of the Mining and Gas Sectors in Mozambique Final Report – Mining Sector Strategic Environmental and Social Assessment of the Mining and Gas Sectors in Mozambique Prepared for: Ministry of Energy and Mineral Resources (MIREME) of Mozambique 18 September 2017 Final Mining SESA Report Contact Information Document Information Cardno Prepared for: Ministry of Mineral 2107 Wilson Boulevard Resources and Energy (MIREME) of Suite 800 Mozambique Arlington, VA 22201 Telephone +1 703 373 7600 Project Name: Strategic Environmental and Social Assessment of the Mining Email: [email protected] and Gas Sector of Mozambique Date: 15 September 2017 OzMozis Rua de Tchamba No 178, R/C, Esquerdo Bairro da Polana Cimento Maputo, Moçambique Telephone +258 21 902 445 Email: [email protected] © Cardno. Copyright in the whole and every part of this document belongs to Cardno and may not be used, sold, transferred, copied or reproduced in whole or in part in any manner or form or in or on any media to any person other than by agreement with Cardno. This document is produced by Cardno solely for the benefit and use by the client in accordance with the terms of the engagement. Cardno does not and shall not assume any responsibility or liability whatsoever to any third party arising out of any use or reliance by any third party on the content of this document. Praça 25 de Junho, 380 C.P. nº2904 Maputo, Moçambique Page i Final Mining SESA Report Table of Contents ACRONYMS AND ABBREVIATIONS ................................................................ IV GLOSSARY ....................................................................................................... VII SUMÁRIO EXECUTIVO ...................................................................................... 1 EXECUTIVE SUMMARY ..................................................................................... 7 1. INTRODUCTION ......................................................................................... 13 1.1. Strategic Environmental and Social Assessment (SESA) – Why it is Required and Definition ............................................. 13 1.2. SESA Scope and Objectives ........................................................ 13 2. SUMMARY OF THE SESA PROCESS ....................................................... 14 2.1. Phase 1 – Inception Phase ........................................................... 14 2.2. Phase 2 – Consultation................................................................. 15 2.3. Phase 3 – Analysis ........................................................................ 17 2.4. Phase 4 – Reporting and Validation ............................................ 18 2.5. Key Deliverables ........................................................................... 19 3. PRIORITY ESHSS ISSUES AND IMPACTS ............................................... 20 3.1. Methodology ................................................................................. 20 3.2. Situational Analysis ...................................................................... 26 3.3. Prioritization and Validation of ESHSS issues ........................... 68 3.4. Priority Issues Taken Forward to Phase 3 .................................. 74 3.5. Cumulative Impacts ...................................................................... 75 4. INTERNATIONAL COMPARISONS ............................................................ 98 4.1. International standards ................................................................ 98 4.2. Country-Specific Examples of Mining Governance ................. 101 4.3. Other Useful Resources ............................................................. 106 5. POLICY AND INSTITUTIONAL ANALYSIS AND ISSUES ....................... 107 5.1. Methodology ............................................................................... 107 5.2. Description of institutional structure and regulatory framework for the mining sector ............................................... 108 5.3. Policy Analysis and identification of issues ............................. 124 5.4. Institutional Analysis and identification of issues ................... 130 5.5. Potential Benefits and Costs of the Mining Sector .................. 134 6. RECOMMENDED ACTIONS TO ENHANCE POLICY AND REGULATIONS ............................................................................................... 146 6.1. Addressing Gaps, Overlaps and Inconsistencies .................... 146 6.2. Addressing Weaknesses in Implementation ............................ 153 6.3. Modification of ESHSS Standards and Guidelines ................... 156 7. RECOMMEND ACTIONS TO ENHANCE INSTITUTIONAL ARRANGEMENTS .......................................................................................... 158 Praça 25 de Junho, 380 C.P. nº2904 Maputo, Moçambique Page i Final Mining SESA Report 7.1. Institutional Roles and Function ................................................ 158 7.2. Institutional Capacity .................................................................. 158 7.3. Institutional Interactions and Coordination .............................. 160 7.4. Stakeholder Engagement and Management ............................. 163 8. POLICY AND INSTITUTIONAL MATRIX .................................................. 166 9. CONCLUSIONS – PROGRESSING TO IMPLEMENTATION AND MONITORING .................................................................................................. 191 10. REFERENCES CITED AND CONSULTED ............................................... 193 APPENDICES .................................................................................................. 204 APPENDIX A. FINAL MEETING SCHEDULE – PUBLIC CONSULTATIONS .......................................................................................... 204 APPENDIX B. NATIONAL WORKSHOP REPORT ......................................... 206 APPENDIX C. STAKEHOLDER INTERVIEWS SCHEDULE, AUGUST TO SEPTEMBER 2016 .................................................................................... 228 APPENDIX D. PHASE 3 GUIDANCE FOR STAKEHOLDER INTERVIEWS (INSTITUTIONAL AND REGULATORY REVIEW AND GAP ANALYSIS) ............................................................................................. 231 APPENDIX E. SUMMARY OF FINDINGS AT PROVINCIAL WORKSHOPS (FEEDBACK CONSULTATIONS, NOVEMBER 2016) ........... 251 Praça 25 de Junho, 380 C.P. nº2904 Maputo, Moçambique Page i Final Mining SESA Report Cardno Cardno provides professional services to design and deliver programmes in support of economic growth, wealth creation, social and rural development in developing countries and emerging economies. With corporate offices in Australia, Belgium, Indonesia, Kenya, Papua New Guinea, Philippines, United Kingdom and the United States, the Division employs over 900 people and has projects in 85 countries. Cardno serves clients such as the Department for International Development (DFID), the European Commission, the US Agency for International Development (USAID), the World Bank, the Global Fund, the Millennium Challenge Corporation (MCC), the World Bank, the African Development Bank (AfDB) and UN agencies, as well as partner governments, private clients and communities. Cardno has more than 50 years of experience in Sub-Saharan Africa. The professional excellence and achievements of our projects and designed interventions have been recognised with a number of awards, extensions and continued work for existing and new clients. Cardno has developed extensive experience in East and Southern Africa, and has a proven record of assisting governments in the region with the preparation, design and implementation of strategies and reforms. We have worked with regional centres, national authorities and agencies in order to enhance their capability to deliver services; this has often been achieved through the provision of training, skills transfer, and advisory support as well as by improving and developing necessary procedures and processes. OzMozis Founded in 2009, OzMozis Limitada (OzMozis) is a development and investment consultancy and services company registered and based in Maputo, Mozambique. OzMozis works throughout southern Africa, but with a focus on Mozambique. The firm specializes in four areas: Providing investor support and risk assessment, focused on the extractive industry sector Managing project design and implementation, especially around government policy, skills development, local economic development, community and environment issues, and participation processes Understanding policies, priorities and practices of government, donors and investors Supporting regional and rural development, including planning and financial mechanisms, and value chains OzMozis is licensed by Mozambique’s Ministry for the Coordination of Environmental Action (MICOA) to undertake environmental and social impact assessments. Acknowledgements Cardno and OzMozis would like to acknowledge the support and assistance of the following during the Strategic Environmental and Social Assessment: Project contacts and key staff in MIREME and MAGTAP. World Bank staff (Paulo Jorge / Augusto Ferreira Mendonca / Ekaterina Mikhaylova). Government ministries. Provincial staff. Attendees at the National Workshops and Provincial workshops undertaken in June 2016 and November 2016 and the final validation workshop held in Maputo in August 2017. The wide range of stakeholders and interested parties that were interviewed throughout the SESA process. Praça 25 de Junho, 380 C.P. nº2904 Maputo,
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