HUMAN RIGHTS IMPACT ASSESSMENT OF THE BISHA MINE IN ERITREA 2015 AUDIT

05 AUGUST 2015 PREPARED BY COMMISSIONED BY LKL INTERNATIONAL NEVSUN RESOURCES LTD CONSULTING INC. ERITREAN NATIONAL MINING CORPORATION (ENAMCO) TABLE OF CONTENTS

SECTION ONE SECTION FOUR INTRODUCTION 1 EMERGING HUMAN RIGHTS ISSUES 33 1.1 Summary of Conclusions from Initial HRIA and 2015 Audit 2 4.1 Emerging Issue #1 34 1.2 Background on the HRIA process 5 Exploration 1.3 Objectives of the HRIA process 5 4.2 Emerging Issue #2 36 1.4 Timeline of the HRIA process 6 Increase in staff turnover 1.5 Methodology for the HRIA process 7 4.3 Emerging Issue #3 38 1.5.1 Consistent approach 7 Road safety 1.5.2 Continuity of methodological steps 8 4.4 Emerging Issue #4 40 1.5.3 Stakeholder engagement 12 Security and Human Rights 1.5.4 Scope and limitations 15

SECTION FIVE SECTION TWO UPDATED FINDINGS ON HUMAN CONTEXT: HIGHLIGHTS FROM THE CURRENT RIGHTS ISSUES 41 ASSESSMENT PERIOD 16 5.1 Labour Rights and Working Conditions 42 2.1 Bisha Mine operations 17 5.1.1 National Service 42 2.2 Mining sector in Eritrea 18 5.1.2 Workplace Health and Safety 44 2.3 Political and human rights situation in Eritrea 19 5.1.3 Wages, Hours, Leave and Benefits 47 2.4 Global context for business and human rights 20 5.1.4 Freedom of Association 49 5.1.5 Non-Discrimination 49 5.1.6 Harassment 51 SECTION THREE IMPLEMENTATION OF HRIA 5.1.7 Child Labour 51 RECOMMENDATIONS 21 5.2 Human Rights and Local Communities 52 3.1 HRIA Recommendation #1 22 5.2.1 Human Rights Related to the Environment 52 Adopt and embed a more explicit human rights policy 5.2.2 Community Development 54 3.2 HRIA Recommendation #2 24 5.2.3 Cultural Heritage 55 Conduct further human rights training at Bisha 5.3 Cross-Cutting Human Rights Issues 57 3.3 HRIA Recommendation #3 26 5.3.1 Security and Human Rights 57 Integrate human rights considerations into the 5.3.2 Grievance Mechanisms 58 implementation of the 2012 IFC Performance Standards 3.4 HRIA Recommendation #4 28 SECTION SIX Engagement on human rights with suppliers, contractors EVOLUTION OF HUMAN RIGHTS DUE and subcontractors DILIGENCE AT THE BISHA MINE 61 3.5 HRIA Recommendation #5 30 6.1 Adoption of a Stand-Alone Human Rights Policy 62 Develop a framework and protocols to ensure the effective 6.2 Progress on Human Rights Due Diligence 63 implementation and coordination of all grievance mechanisms 6.3 Remediation 66 3.6 HRIA Recommendation #6 32 Continue discussions about implementing the Community Assistance Program SECTION SEVEN CONCLUSIONS AND SUMMARY OF RECOMMENDATIONS AND NEXT STEPS 67

ASSESSMENT TEAM 72 NEVSUN COMMITMENT Inside Back Cover ONE SECTION INTRODUCTION

1 SECTION ONE Introduction 2 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea INITIAL HRIA AND 2015 AUDIT HRIA AND INITIAL SUMMARY OFCONCLUSIONSFROM 1.1 • • • • • • Initial HRIA • • • • • 2015 Audit FREEDOM FROM FORCED addresses nationalservice HRIA Recommendation#4also position Intention tocreateContractManager about humanrightsduediligence forbroaderdialogue are entry-points screeningandaudits National service national service Contractual provisions prohibiting the BishaMine workers at arenotpermitted service Expanding awareness thatnational 2009 Screening proceduresinplacesince Recommendation #4 See follow-up onHRIA working conditions including broaderissuesrelatedto Ongoing dialogueandaudits managers ofEritreancontractors attheBishaMineamongst service prohibition against national High level ofawareness ofthe national service workers have beendischarged from Screening proceduresensurethat Segen and Transhorn Audit activitiesconcentratedon NATIONAL SERVICE LABOUR 01 01 • • • Initial HRIA • • • • • 2015 Audit Road safety needs further attention Road safetyneedsfurther PPE donotappeartobejustified aboutlackofadequate Concerns procedures, trainingandinspection manner throughrigorous policies, are beingaddressedinaresponsible Workplace healthandsafetyrisks - - - - Issue #3: Road safetyaddressedasEmerging exposure todustandchemicals health impactsrelatedtolong-term Increasing attentiontopotential predominantly routineinnature treated by theMedicalClinicwere The illnessesandailmentsbeing the auditperiod disease orlosttimeinjuriesduring There were nofatalities, occupational stronghealthandsafetyrecord. very The BishaMinecontinuestohave a potential tostrengthenroadsafety a GPSmonitoringsystemhas Transhorn’s initiative toinstall compensation provided Transhorn ofbenefitsand interms Appropriate responseby road toMassawa Transhorn driver onthe occurred An off-siteroadfatalityinvolving a Increasing volume ofroadtraffic HEALTH AND SAFETY 02 02 • • • • Initial HRIA • • • • • • 2015 Audit

closure risk totherightsocialsecurityat Lack ofretirementbenefitscreatesa Labour Proclamation work, andBMSC follows Eritrean leave forworkers shift undertaking standards forhours, holidays and accords withbasicinternational Eritrean LabourProclamation benefits put pressureonremunerationand Development ofothermineswill sectors attractive andhigherthaninother wages attheBishaMineare Eritrea, butworkers statedthat minimumwage in No statutory that workers arevoluntarily employed Staff turnover provides anindication grievance mechanisms quitting andstrengtheninternal Need totrackwhy workers are stakeholders ongoing discussions withother for theminingsectorandrequire Some issueshave implications address issues toproactively BMSC managers trying - - - - perspective are: priority issuesfromahumanrights as EmergingIssue#2. Current Increase instaffturnover addressed workers andmanagers wages, hours, leave, andbenefits by Greater attentionwasgiven to employees andneedsoffemale the concerns Giving appropriateattentionto Eritrean workers Providing retirementbenefitsfor Eritrean workers and competitiveness ofwages for Ensuring theadequacy, fairness, rotational shiftwork Addressing thechallenges of LEAVE ANDBENEFITS WAGES, HOURS, 03 03

• • • Initial HRIA • • 2015 Audit mining sector association atBishaorformorethe ofanemployees’about formation Confederation ofEritrean Workers Ongoing discussionswithNational contractors andsubcontractors for anumberofBMSC’s suppliers, Collective agreements areinplace by EritreanLabourProclamation collective bargaining areprotected Right tofreedomofassociationand organize andcollective bargaining of associationandtherightsto freedom forsupporting entry-point NCEW remainsanimportant employees’ association stepsrequired tocreatean formal but nospecifictimelineforthe Ongoing dialoguewiththeNCEW, ASSOCIATION FREEDOM OF 04 04 • • • 2015 Audit • • • • Initial HRIA HRIA RECOMMENDATIONS INITIAL workforce can successfullyadvance inthe women andEritreanworkers remains centralforensuringthat The roleofthe Training Centre conduct. related todiscriminatory attention toany signs warning managers shouldpay particular turnover issues, humanresource In thediscussionsaroundstaff Eritrean workers attheBishaMine ofhiringfemale workersterms and Strong commitmentsandresultsin non-discrimination andotherrights Centre plays aroleinsupporting capacity-building; and, the Training Eritrean workers iscontingent upon development andpromotionof Successful integration, skills therighttoworksupporting Priority hiringforEritreanworkers is operational roles roles, butareadvancing into Women areemployed intraditional employees between madeandfemale No evidence ofdiscrimination NON-DISCRIMINATION 05 05 • • rights policy Adopt andembedamoreexplicithuman HRIA RECOMMENDATION #1 • • 2015 Audit • • • Initial HRIA Policy forBMSC adopt astand-alone Workers’ Rights Nevsun andENAMCO have agreed to human rightsintoitsCodeofEthics Human RightsPolicy andintegrated Nevsun hasadoptedastand-alone related toharassment attentive toany signs warning resource managers shouldremain related tostaffturnover, sohuman Heightened attentiontoissues harassment duringtheauditperiod No evidence orallegations of procedures training onharassmentpoliciesand Ongoing attentionthroughinduction previous incidents didnotraiseissuesor Interviews complaints confidentially harassment andprocedurestoraise BMSC hasstrictpoliciesagainst HARASSMENT 06 06 • • at site been includedintheinductiontraining humanrightsmaterialshave Introductory at Bisha humanrightstraining Conduct further HRIA RECOMMENDATION #2 • • • 2015 Audit • • Initial HRIA additional humanrightstraining Policy provides for anopportunity BMSC Forthcoming Workers’ Rights Principles initiative developed ofthenew aspart Voluntary Advanced humanrightsmodulebeing is nochildlabour shouldalsoensurethatthere service The screeningprogram fornational Mine isremote The riskofchildlabourattheBisha labour No evidence orallegations ofchild years ofage ensure allworkers areatleast18 BMSC hasscreeningproceduresto Bisha Mine No evidence ofchildlabouratthe CHILD LABOUR 07 • • IFC Performance Standards into theimplementationof2012 Integrate humanrightsconsiderations HRIA RECOMMENDATION #3: • • • • 2015 Audit • • • • • Initial HRIA diligence. to ongoing humanrightsdue should beprioritizedtocontribute About 15oftheseplans/SOPs Operating Procedures management plansandStandard environmental andsocial is developing orupdating The Environmental Department Recommendation #3 See follow-up onHRIA treatment plant hydrological study andanew water due diligence, includingamajor which shouldcontributetoongoing Initiatives have beenlaunched communities’ righttowater potential impactsondownstream need forenhancedmonitoringofthe increasingwater consumption,With environment human rightsissuerelatedtothe Water remainstheleading management addresses environmental andsocial HRIA Recommendation#3also risk leading long-term identified water-relatedissuesasa have experts and external Internal impacts suchasdustandnoise fromvisible as aconcern—apart did notidentifyenvironmental issues withcommunityleaders Interviews Performance Standards updated toalignwith2012IFC management plansarebeing Environmental andsocial environmental management progressive approachto BMSC hasresponsibleand HUMAN RIGHTSAND ENVIRONMENT 08 08

3 SECTION ONE Introduction 4 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • • 2015 Audit • • • • Initial HRIA HRIA RECOMMENDATIONS INITIAL Recommendation #6 See follow-up toHRIA projects in thedevelopment ofthetwo pilot planningwithcommunities patory Extensive- consultationandpartici the environment leading humanrightsriskrelatedto which alignwithfocusonwateras prioritized water-relatedissues— The two pilotprojectshave inaugurate theCAP. launching two pilotprojectsto BMSC isintheprocessof Recommendation #6 The CAPisalsoaddressedinHRIA has notyet beenimplemented Community Assistance Plan(CAP) note and communityleadershave taken community developmentsupport BMSC hasmadecommitmentsto rights the fullrangesupport ofhuman Community development can DEVELOPMENT COMMUNITY 09 09 • • • • subcontractors with suppliers, and contractors Engagement onhumanrights HRIA RECOMMENDATION #4 • 2015 Audit supply chain comprehensive approach tothe conduct isanoption foramore The development ofa codeof auditing anddialogue ofthe conditions arebecomingpart Other issuesrelatedtoworking of Voluntary Principlesinitiative initiated withBinaeSecurityaspart traininganddialoguewillbe Further from nationalservice Bisha Minehave beendischarged Segen and Transhorn workers atthe - - - on Exploration: of discussionEmergingIssue#1 Cultural heritage addressedaspart deceased communities andfamiliesofthe based onagreement with Relocation ofasmallcemetery and consent relocation requiresconsultation orsacredsites,artifacts andany ofcultural related tothediscovery There arestrictprocedures responsible manner planned andexecutedina Exploration activitiesarebeing Not assessedin CULTURAL HERITAGE initial HRIA 10

• • mechanisms and coordinationofallgrievance ensure theeffective implementation andprotocolsto a framework Develop HRIA RECOMMENDATION #5 • • Initial HRIA • • • • 2015 Audit Human Rightsintoitssecuritypolicy Voluntary PrinciplesonSecurityand that BMSChasintegrated the forces, thereforeitisappropriate and publicprivate security There areinteractionsbetween Bisha calm andpeaceful communities appearstobesafe, Bisha Mineandinthesurrounding The operatingenvironment atthe to access ensuring thatthereare nobarriers for differentstakeholder groups, and promotion oftherelevant mechanisms resolutionofgrievances,of informal coordination atsite—includingtracking areneededtoensure efforts Further and refined the BishaMinecontinuetobeused The various grievance mechanismsat there isanongoing investigation during theauditperiod, aboutwhich actofvandalismOne reported adapted forotherdepartments modules forsecurityguardscanbe Advanced humanrightstraining the Eritreansecurityforces engagement withBinaeSecurityand provides fortrainingand opportunity The Voluntary Principlesinitiative Principles and implementationon Voluntary a resultofnew initiative fortraining discussed asEmergingIssue#4 Security andhumanrightsare HUMAN RIGHTS SECURITY AND 11

• • • Assistance Plan implementing theCommunity Continue discussionsabout HRIA RECOMMENDATION #6 • • • • • Initial HRIA • • 2015 Audit development ofthetwo pilotprojects planningwithcommunities inthe tory Extensive- consultation andparticipa rights riskrelatedtotheenvironment focus onwaterasleadinghuman water-related issues—which alignwith The two pilotprojects have prioritized CAP two pilotprojectstoinauguratethe BMSC isintheprocessoflaunching Recommendation #5 also addressedinHRIA Grievance mechanismsare respond proactively in ordertoidentifytrendsand the differentgrievance mechanisms tocoordinateandtrack Important the proceduresforusingthem relevant stakeholders andexplain the grievance mechanismstothe topromote It isstillnecessary stakeholders external Whistleblower Policy isopento Nevsun hasclarifiedthatits members, andsubcontractors groups: workers, localcommunity remedies todifferentstakeholder objective ofproviding accessto of grievance mechanismswiththe BMSC hasdeveloped anumber no barriers toaccess no barriers groups, andensuringthatthereare mechanisms fordifferentstakeholder grievances, promotionoftherelevant resolutionof tracking ofinformal coordination atsite—including areneededto ensure efforts Further at site are neededtoensurecoordination acknowledgment efforts thatfurther the auditperiod;thereisalsoan to thesegrievance mechanismsin There hasbeenongoing attention MECHANISMS GRIEVANCE 12 improvement ofthehumanrightsduediligence attheBishaMine. efforts as well astheongoing HRIAprocess, withaview towards continuous will beconsultedregarding thereport’s findingsandrecommendations, the publicationof2015 Audit. stakeholders Eritreanandinternational after assessmentactivitieswill beundertaken It isanticipatedthatfurther andMay 2015.visits toEritreaandtheBishaMineinJanuary other impactassessmentactivitieshave continued—includingtwo further the follow-up ontheHRIA. Therefore, ongoing research, interviews, and Report, thattheHRIAassessmentteamshouldplay aroleinmonitoring between Nevsun stakeholders abouttheinitialHRIA andinternational 8 7 6 5 4 3 2 1 and initiatives attheminesite. recommendations invarious corporatepolicies, management systems, HRIA Report, andthey theimplementationofthese arebothsupporting Nevsun andENAMCOacceptedalloftherecommendationsinitial and shouldbereadinconjunctionwiththe2015 Audit. the BishaMine. isavailableThis initial HRIAReport ontheNevsun website recommendations forstrengtheningongoing humanrightsduediligence at waspublishedin An initialHRIAReport April 2014, andincludedaseriesof conducted by ConsultingInc. LKLInternational Eritrean NationalMiningCorporation(ENAMCO). The HRIAprocesshasbeen by Nevsun ResourcesLtd. (Nevsun)andcooperationofthe withthesupport process fortheBishaMinethatbegan in2013. The HRIAwascommissioned recommendations ofanongoing humanrightsimpactassessment(HRIA) of theBishaMineinEritrea(2015 Audit). Itpresentsthelatestfindingsand forthehumanrightsimpactassessment This istheindependentauditreport HRIA PROCESS ON THE BACKGROUND 1.2

internationally recognizedhumanrightsasareferencepoint,internationally sinceenterprises may any potentiallyimpactvirtually ofthese rights.” states: “While processesforassessinghuman rightsimpactscanbeincorporatedwithinother processessuchasriskassessmentsorenvironmental andsocialimpactassessments, they shouldincludeall or asaresultoftheirbusiness relationships.” However, throughastand-aloneHRIA. toGuidingPrinciple18 theUNGuiding Principles donotrequiretheassessmentofimpacts tobeundertaken Commentary UN GuidingPrinciple18 stipulates thatbusinessenterprisesshould “identify andassessany actualorpotentialadverse humanrightsimpactswithwhich they may beinvolved eitherthroughtheirown activities other-autre/csr-strat-rse.aspx?lang=eng See: Government ofCanada, Extractive fortheInternational Sector(November Enhanced CSRStrategy 2014), accessedat:www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/ UN GuidingPrinciple15. UN GuidingPrinciple11, accessedat:www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf The UNGuidingPrinciplesonBusinessandHuman Rightswere unanimouslyadoptedby theUNHumanRightsCouncil, theUnitedNation’s mainhumanrightsinstitution, inJune2011. Nevsun’s commitmentstofollow-up onthe2015 Audit areincluded ontheinsidebackcover those ofBMSC. The BishaMineisoperatedby theBishaMineShareCompany (BMSC), which isowned by Nevsun (60%)andENAMCO(40%). Unlessotherwisespecified, therelevant corporatepoliciesfortheBishaMineare avoidance ofduplication. See: www.nevsun.com/responsibility/human-rights/Nevsun-HRIA-Summary-April-2014.pdf. willbeprovided foreaseofreferenceand Cross-referencestotheinitialHRIAReport throughoutthisreport 2 Itwasagreed, inthecourseofdialogue

1 3

they areinvolved. others andshouldaddressadverse humanrightsimpactswithwhich This meansthatthey shouldavoid infringingon thehumanrightsof Canadian miningcompaniestoadhereintheiroperationsabroad. standardstowhichthe international theGovernment ofCanadaexpects November 2014, theUNGuidingPrincipleshave beenincludedasoneof due diligence andriskassessmentprocessesinhigh-risk contexts. large-scale investments inconjunctionwithother andprojects—particularly including asarequirementintheplanning, financing, andapproval of and affectedstakeholders areadvocating for the wideruseofHRIAs, about humanrightsconcerns. Indeed, numerouscivilsocietyorganizations operations andsupplychains, andtofacilitatedialoguewithstakeholders to helpidentify, addressandremediatepotentialadverse impactsintheir tool forcompaniestorefinetheirapproachhumanrights—specifically, remediation ofadverse humanrightsimpactswhen they occur. implementation ofongoing processesforhumanrightsduediligence, and respect humanrightsthroughtheadoptionofpolicies, the has emerged thatbusinessenterprisesshouldrespecthumanrights. and HumanRights(UNGuidingPrinciples)in2011, aglobalconsensus theadoptionofUnitedNationsGuidingPrinciplesonBusiness With ontherightsofworkersaffected stakeholders—particularly andcommunities. vestment, development project, orbusinessoperationonthehumanrightsof governments) identifyandaddressthepotentialactualimpactsofanin- HRIAs aretoolsthatcanhelporganizations (companies, communities, and HRIA PROCESS OF THE OBJECTIVES 1.3 companies to undertake HRIAs. companies toundertake HRIAs,to undertake therearenolegal andcurrently requirementsfor The UNGuidingPrinciplesdonotspecificallycallforbusinessenterprises 5 Businessenterpriseswillmeettheirresponsibilityto 8 Nonetheless, they representonepotential

INTRODUCTION 6 Since 7 4

5 SECTION ONE Introduction 6 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 13 12 11 10 9 The following timelinesummarizesthemainHRIAactivitiessinceprocessbegan in2013. TIMELINE OF THE HRIA PROCESS 1.4 provided oftheBishaMine’sThe initialHRIAReport aportrait operations pointintime.a snapshotofthehumanrightssituationatparticular Most HRIAsconductedtodatehave beenone-timeexercisesthatpresent • • • rights.” forhuman respectandsupport Bisha Mineandthuscontributetofurther be aconstructive tooltostrengthendialogueandduediligence aboutthe statedthat The initialHRIAReport “the overall intentionisforthisHRIAto and ENAMCO, tobethefirstHRIAconductedinEritrea. anditisreported by undertaking Nevsun The HRIAoftheBishaMinehasbeenavoluntary • analysis about: 2013 mining sectorinEritrea are respectedandthattheBishaMinesetsagood precedentforthe conclusions andrecommendationstohelpensurethathumanrights to theBishaMine the responsibilitiesforongoing humanrightsduediligence withrespect the humanrightsissuesthatarerelevant totheBishaMine context inEritrea the ownership andoperationsofthe BishaMineandthenational initial HRIA Report atp.initial HRIAReport 47. Section at pp.Three oftheinitialHRIA Report 41–46. Section Two atpp. oftheinitialHRIAReport 17–40. atpp.Section Oneoftheinitial HRIAReport 8–16. Initial HRIAReport, p. 16. attendance atthe Asmara MiningConference audits ofEritreansubcontractors, and at theBishaMineandnearby communities groups withEritreanstakeholders; observations research,in-country interviews, andfocus detailed assessmentplan the assessmentteamandpreparationofa commissions theHRIAinitialmeetingswith international humanrightsstandards international framework ofEritrea, andreview ofrelevant document review andanalysisofthelegal OCTOBER 2013 AUGUST –OCTOBER 2013 JUNE –JULY 2013 9

In particular, provided and theinitialHRIAReport information 10 First missiontoEritreafor First 12 Nevsun Resources 13 Background research, 2014 the initialHRIAReport stakeholders inresponseto and international and distributionofExecutive Summary JULY –DECEMBER 2014 JUNE 2014 MAY –JULY 2014 APRIL 2014 FEBRUARY –MARCH2014 FEBRUARY 2014 JANUARY 2014 Parliamentary SubcommitteeonHumanRights Parliamentary of HRIArecommendations monitoring activitiesrelatedtoimplementation from theBishaMine review reports ofinternal respect tohumanrightsandmininginEritrea report preparation report data verification, humanrightsanalysis, and and auditsofEritreansubcontractors stakeholders, attheBishaMine, observations research, withEritrean in-country interviews Human RightsCouncil Eritrea’s Universal Periodic Review attheUN 11 Appearance beforetheCanadian Release of the initial HRIA Report Release oftheinitialHRIAReport Second missiontoEritreafor Interactive Dialogueon Engagement withCanadian • • • • • • Therefore, this2015 Audit regarding: provides information current integration andacting, tracking, andcommunication). elementsofhumanrightsduediligence further (i.e.,impacts andsupports HRIA practicewhere anongoing processextendsbeyond simplyassessing has becomeanongoing process. This representsapotentialinnovation in to themonitoringandauditingofBishaMine. Inthisway, theHRIA initial HRIAReport, theassessmentteam’s mandatehasbeenextended and businessrelationshipsin2013–2014. Sincethepublicationof Ongoing researchwith Bisha Mine conclusions andrecommendednextstepsforhumanrightsatthe the evolution ofhumanrightsduediligence attheBisha Mine an updateonthehumanrightsissuescovered intheinitialassessment assessment the identificationofemerginghumanrightsissuessinceinitial initial HRIAReport the progress madeonimplementation oftherecommendationsin the evolution ofthecontextforminingandhumanrightsinEritrea Follow-up research, 2015 Principles onSecurityandHumanRights inneedsassessmentfor participation Voluntary Mine; auditsofEritreansubcontractors stakeholders, attheBisha andobservations research, withEritrean in-country interviews AUGUST 2015 JUNE 2015 preparation verification, humanrightsanalysis, andreport MAY –JUNE2015 MAY 2015 FEBRUARY –MAY 2015 JANUARY 2015 stakeholders about COI report stakeholders aboutCOIreport presentation; engagement withinternational Dialogue atUNHumanRightsCouncil onEritreaandInteractive (COI)report Inquiry subcontractors and Massawa Port, andauditsofEritrea stakeholders, attheBishaMine observations research, withEritrean in-country interviews Subcommittee onHumanRights Parliamentary to EritreaandtheChairofCanadian accompanied by theCanadian Ambassador implementation ofHRIArecommendations Bisha Minemonitoringofactivitiesrelatedto fromthe Eritrea review reports ofinternal with respecttohumanrightsandminingin Fourth missiontoEritreafor Fourth Review ofUN Commissionof Release ofthe2015 HRIA Audit Third missiontoEritrea Follow-up research, data Ongoing research

14 OVERVIEW OFKEY APPROACHES TO THE HRIAPROCESS Assessment,” developed by theDanishInstituteforHumanRights. The tool developed by Rights&Democracy, and “Human RightsCompliance organizations,international namely “Getting itRight,” theassessment The initialHRIAwasbasedonthemethodologiesdeveloped by credible issues which arediscussedinthisreport. issues fortheassessment, includingfortheidentificationofemerging stakeholders isadeterminative factorintheprioritizationofhumanrights engagement withaffectedstakeholders. Inparticular, theinputofaffected humanrightsframework,international andisdriven by consultationand HRIAs, theongoing assessmentprocessisexplicitlybasedonthe In accordancewiththeemergingguidanceregarding the conductof HRIA AUDIT 2015 FOR THE METHODOLOGY 1.5 INITIAL HRIA

concept ofongoing humanrightsduediligence Role ofUNGuidingPrinciplesinframing theassessmentaround ofLabourandHuman Ministry Welfare Cooperation ofENAMCOandothergovernment agencies, including of Eritrea rights reports, fromtheUniversal includinginformation Periodic Review and contracts;subcontractoremployment human files;international Document review: company miningagreement documentsandreports; inspection ofSegen camp;andauditsatsuppliers’ headquarters Bisha Mineoperationsandcamp;visitstolocalcommunities; Two of fieldmissionstoEritrea(AsmaraandBisha)withobservations indicators, company andstakeholder concerns information systematic review standards, ofinternational humanquestionsand andquestions;worksheetsused todesignmethodology preparedfor Danish InstituteforHumanRightsand&DemocracyHRIAtools and focusgroups with80Eritreanstakeholders Engagement withaffectedstakeholders: formal, confidentialinterviews Comprehensive approachtopotentialhumanrightsimpacts For further information about methodology for, about methodology information For further andmainactivities oftheinitialHRIA, see pp. 14to16ofthe fullHRIAReport, April 2014.

2015 AUDIT reflected and/ordeveloped inthe2015 Audit. and methodologicalfeaturesoftheinitialHRIA, andhow theseare The following tableprovides anoverview ofsomethekey approaches CONSISTENT APPROACH1.5.1 operational contextattheBishaMine. HRIA guidance, steps, questions, andindicatorshave beenadaptedtothe human rightssituationover time. to generate additionalfindingsaboutpositive ornegative changes inthe ensure methodologicalconsistencyoftheongoing assessmentwork—and same approaches, standards, questions, andindicatorshave beenused is littleguidanceorpracticerelatedtoHRIAfollow-up assessments, the operation, development project, orinvestment agreement. While there provide business asnapshotofthehuman rights situationinaparticular The majorityofHRIAshave beenconductedasone-timeexercisesthat looks further atmanagementlooks further systems due diligence takes onincreasedsignificanceinafollow-up assessmentthat in Nevsun’s new HumanRightsPolicy. The conceptofongoing humanrights Canada’s andareincluded EnhancedCorporateSocialResponsibilityStrategy UN GuidingPrinciplesarenow anexplicitstandardintheGovernment of ImpactReviewcross-departmental Committee to employees, communities, andgovernment dialoguewith officials;further Continued cooperationofENAMCO:Unfetteredandunaccompaniedaccess report rights reports, includingtheJune2015UNCommissionofInquiry monitoring activities;subcontractoremployment human files; international Document review: company government documentsandreports; (IRC) of Massawa Port, explorationandnightshiftactivities of Segen campand auditsatsuppliers’ additionalobservations headquarters; Mine operationsandcamp;visitstolocalcommunities;continuedinspection Two ofBisha fieldmissionstoEritrea(AsmaraandBisha)withobservations guidance inincludedwhere relevant fordifferentissues to ensuretheongoing evolution humanrightsstandardsand ofinternational Same HRIAtoolsusedtoguidefollow-up assessment;updateofworksheets focus groups with107Eritreanstakeholders Engagement withaffectedstakeholders: and formal, confidentialinterviews prioritization ofnew andemergingissues Review ofallpotentialhumanrightsimpactsidentifiedininitialHRIA; 14

7 SECTION ONE Introduction 8 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea taken intheongoing HRIAprocess. The following tableprovides anoverview ofthemainmethodologicalsteps 1.5.2 CONTINUITYOFMETHODOLOGICALSTEPS Initiate in-countr framework ofEritrea Identify thelegal STEP 02 Prepare thestudy STEP 01 reported intheinitialHRIAReport reported The first8stepsrelatetothose research 04 impact analysis V erication and Dene scopeand select indicators 05 03 y ong recommendations for framew oing humanrights Identify theleg due dilig DESCRIPTION OFKEY ACTIONS De • • • • • • • 06 v ork ofEritrea 02 elop Universal Periodic Review exercisein2009and2014 Conduct aGapanalysis, includingareview ofEritrea’s agreements government, plusILOconventions andrelevant regional Review human rightstreatycommitmentsoftheEritrean protection oftheenvironment andworkers for humanrightsandtheminingindustry, includingthe Review Eritrea’s legal, regulatory, andmonitoringframework of themostvulnerableindividualsandgroups Conduct stakeholder mappingwithattentiontoidentification impact assessmentprocesses Review collectedviaenvironmental information andsocial Review BMSCandNevsun policiesandprocedures host country, jointventure, andsubcontractingagreements Review relatedtotheproject, technicalinformation including ence al HRIA REPORTINAPRIL2014 PUBLICA TION OFINITIAL Draft nal the stud Prepare repor 07 01 t y Elicit stak eng ag 08 ement eholder stak Meet with eholders 09 Elicit stak eng ag 16 ement COMMENT ONIMPLEMENTATION implementation of eholder recommendations • • • • • Planning for labour court judgeslabour court inEritrea attentiontounionofficials and withparticular Follow-up interviews Translation ofSegen Construction’s collective agreement laws andcontracts Consultation withBMSClegal counselto identifyrelevant Eritrean abouttheBishaMine reports external Special attentiongiven tohumanrightsissuesmentioned in Nevsun andENAMCO Discussion ofhumanrightsissuesandrisksself-identified by Steps thatinvolved field work inEritrea OF 2015AUDIT PUBLICA 10 TION 2015 Draft HRIA 2015 Audit andsubsequentaudits Steps 9to16arerelevant tothe 15 A On-g udit research oing desktop 11 next stepsofhuman rights duedilig De v elopment 14 In-countr research 12 impact analysis V ence erication and y 13 due diligence ongoing human rights recommendations for Develop STEP 06 impact analysis Verification and STEP 05 research Initiate in-country STEP 04 select indicators Define scopeand STEP 03

DESCRIPTION OFKEY ACTIONS • • • • • • • • • • • • • • • • • site level mechanisms Assess existingmechanismsforaccess to remedies, including in existingsocialandenvironmental management plans tointegrateIdentify opportunities humanrightsduediligence supported Identify areaswhere positive humanrightsoutcomescanbe impacts Prioritize areaswhere thereisanongoing riskofnegative for miningcompanies diligence inline with UNGuidingPrinciplesandbestpractice Develop recommendationsforongoing humanrightsdue research andstakeholder interviews rights questionsandindicatorsbasedonfindingsfromthe Develop analysisofimpactsandrisksinrelationtothehuman physical evidence (includingphotos) opinion,second-round interviews, solicitexpert anddocument Employ verification techniquestotriangulatedata, target to validate andfollow-up information onprevious interviews interviews Develop forasecondroundofin-country astrategy Validate gathered desktopresearch information throughfurther human rightsissuesforverification andimpactanalysis research,Following theinitialin-country prioritizethekey context formininginEritrea Develop understandingofpolitical, economic, andsocial Site visitstoBishamine, Segen andSENETcamps about potentialpositive andnegative humanrightsimpacts relevant humanrightsissuesand elicitedbalancedfeedback covered guidestoensure thatinterviews the Prepare interview confidentiality ofstakeholders who were interviewed Develop protocolstoprotectthesecurityand interview stakeholders inEritrea: andinternal external Interview andotherstakeholder engagementinterviews questions, andindicatorstoframetheassessmentguide from phases1and2therelevant humanrightsstandards, For eachworksheet, compilethebackground information researchphase examined duringthein-country Develop worksheets forthemainhumanrightsissuestobe ------Traditional/community leaders Segen employees Bisha employees practices) Bisha managers (regarding policies, proceduresand subcontractors Government officials, businesspartners, contractorsand COMMENT ONIMPLEMENTATION • • • • • • • • • • • • • • • • • • • • • • • • • grievance mechanisms Focus oncoordinationbetween various site-level andcorporate managers Focus ontrainingandcapacity-buildingforemployees and pointsatBishaMine strategic entry Focus onIFCPerformance Standardsand Voluntary Principlesas recommendations stakeholders aboutpotential Dialogue withinternal 3, 2014 Council onFebruary Interactive DialogueonEritrea’s UPRattheUNHumanRights Postponed totake intoaccountthe finalizingtheHRIAreport Standards andCSRreporting onimplementationofIFCPerformance Follow-up interviews 2 focusgroup meetingswithmaleandfemaleemployees mine manager withgovernmentFollow-up interviews representatives andacting withSegenFollow-up managers interviews ofLabour,Ministry officials andLabourCourt withnational-levelFollow-up interviews unionrepresentatives, conductedwith36stakeholders interviews Formal 7and16,January 2014 visitwasconductedbetween A secondin-country Attended 4thannual Asmara miningconference local villages and Asmara conversations withemployees attheminesiteandwithpeoplein supplementedby andinformal observations interviews Formal Site visitstoSegen andSENETcamps mine’s operations, administration, andcamp Bisha sitevisitincludedfirst-handobservations over 4days ofthe and at Asmara office withSegen managersInterviews on3separateoccasions, atsite, 3 separateoccasions withSegen employeesInterviews onsiteandatcamp were heldinprivate toensureconfidentiality were conductedinfocusgroupsSome interviews butthemajority conductedwith44stakeholders interviews Formal visitbetween October5and13,In-country 2013 Assessment Tool Indicators forBMSCadaptedfromtheDIHRCompliance Indicators fortheStateadaptedfromRights&DemocracyGuide Compliance AssessmentTool Categories ofissuesfortheworksheets adaptedfromthe DIHR issues atthisstage Maintained abroadscopeonthefullrange ofhumanrights

9 SECTION ONE Introduction 10 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 15 research In-country STEP 12 research Ongoing desktop STEP 11 of recommendations Plan forimplementation STEP 10 stakeholders Meet with STEP 09 PUBLICATION OFINITIALHRIAREPORTIN APRIL 2014 engagement Elicit stakeholder STEP 08 Draft finalreport STEP 07 conducted in private of theaforementionedleaders. withouttheparticipation General Manager andheadsofdepartment, meetingswithcommunityleadersandvisits topotentialcommunityprojects. However, with workers andcommunity members confidentialinterviews were The ChairoftheSubcommittee andthe Ambassador were invited someoftheHRIAactivities, toobserve suchassitevisitsatBisha andMassawa, theSegen campinspection, thegroup meetingwiththe DESCRIPTION OFKEY ACTIONS • • • • • • • • • • • • • • relevant sources political, andeconomicdevelopments inEritrea, andother humanrightsstandardsandguidance;legal,international abouttheBishaMine’sUpdate information operations;new recommendations Consult aboutnextstepsforimplementationof departments Meetings withBMSCGeneralManager andheadsof Meetings withNevsun andENAMCOseniormanagement Consult aboutfindingsandrecommendations consider company response: and stakeholders todiscusstheHRIAreport Meet withexternal Bisha departments Eritrean businesspartners, communities, andworkers fromkey andCanadianstakeholders,Include inplan:international recommendations, andfollow-up dialoguewithrespecttotheHRIAreport,prompt formal Develop aproposalforstakeholder engagement planto through website, andlinktoCSRreport forpublication;make availablePrepare anexecutive summary rights issues Prepare finalreport, including worksheets on various human shift atBishaMine ofexplorationactivitiesandnight newUndertake observations headquarters Conduct employment fileauditatSegen and Transhorn Transhorn depot, Massawa port Conduct sitevisitstoBishaMineandcamp, Segen camp, withstakeholders inEritrea: interviews Hold further ------United Nations Nevsun Investors NGOs Canadian Parliament Subcommittee Resident ambassadors Traditional leadersandcommunitymembers Segen and Transhorn managers andemployees Bisha employees practices) Bisha managers (aboutpolicies, procedures, and subcontractors Government officials, businesspartners, contractorsand COMMENT ONIMPLEMENTATION • • • • • • • • • • • • • • while attheBisha camp conversationsNumerous informal withworkers andmanagers orfocusgroups with107stakeholders intotal interviews Formal anddocumentreviewFollow-up withkey interviews managers to Visit Asmara and BishaMinebetween May 6and12, 2015. work ofUNCommissionInquiry Increase inpoliticalandmediaattentiontoEritrealightof Extractive fortheInternational Sector Strategy toinclusion of UNGPsingovernment’sfurther EnhancedCSR Increase inattentiontohumanrightsCanadianminingsector and implementation fornew initiativeSupport relatedto Voluntary Principlestraining implementation toprovide tomanagersOpportunity information responsiblefor assessment Suggestions foradditionalissuestoconsiderinfollow-up follow-up Suggestion thatHRIAassessmentteamshouldplay rolein methodology torespondquestionsabouttheHRIA Opportunity and subcontractors basis fordialoguewithworkers, communitymembers, contractors, canbeusedasatrainingtooland ofHRIAreport Summary and follow-up totheHRIA ongoing onhumanrights inordertosupport reporting CSR Report coordinatedwithpreparationof2013 Disclosure offinalreport ambassador toEritrea HumanRightsandCanadiannon-resident on International 24, 2015, accompaniedby theChairofCanadianSubcommittee to Visit Asmara, Massawa, 18and BishaMinebetween January 15

16 The self-assessmentofprogress madeontheimplementation oftheHRIA recommendationscan befoundatp. 16 ofNevsun’s 2014Corporate SocialResponsibilityReport. engagement Elicit stakeholder STEP 16 2015 Audit Draft STEP 15 rights duediligence next stepsofhuman Development of STEP 14 analysis Verification andimpact STEP 13 DESCRIPTION OFKEY ACTIONS • • • • • • • • • Bisha departments Eritrean businesspartners, communities, andworkers from key andCanadianstakeholders,Include inplan:international and follow-up assessmentactivities prompt discussionsabouttheHRIAreport, recommendations, Develop aproposalforstakeholder engagement planto human rightsissues Prepare finalreport, includingupdated worksheets on various Recommendations developed inrelationto: research andstakeholder interviews rights questionsandindicatorsbasedonfindingsfromthe Develop analysisofimpactsandrisksinrelationtothehuman raised inprevious interviews tovalidate andfollow-up information onissues interviews Develop strategiesforsubsequentroundsofin-country and likelihood ofnegative humanrightsimpacts assessment basedonUNGPcriteriawithrespecttoseverity human rightsissuestobeincludedinthefollow-up research,After thein-country prioritizethenew andemerging physical evidence, includingphotos opinion,second-round interviews, solicitexpert anddocument Employ verification techniquestotriangulatedata, target document review,internal andfollow-up interviews Validate gathered desktopresearch, information throughfurther ------at site integrationFurther ofongoing humanrightsduediligence issues Proactively addressingnew oremerginghuman rights Next stepsinimplementingHRIArecommendations COMMENT ONIMPLEMENTATION • • • • • • • • • • the COIreport verificationFurther andanalysisrequiredinlightofthefindings Asmara andBishaMineinSeptember2015 Meetings withEritreanstakeholders tobehelduponnextvisit 2015 Audit for Ottawa, New York, and Washington afterthepublicationof stakeholders planned Meetings withCanadianandinternational in LondonJune2015 Meetings withNGOs, academicsandgovernment representatives rights situationinEritrea ofitsstudy HumanRightsaspart onthehuman International Subcommitteeon Brief requestedby theParliamentary COI report Additional review andconsultationrequired totake intoaccount addressing emergingissues implementation oftheinitialHRIA’s recommendationsand betweenBalance tobestruck providing nextstepsforthe recommendations of progress madeontheimplementationofHRIA Focus ofattentiononverifying Nevsun’s self-assessment review requiredfornew andemergingissues andadditionalresearchdocument Follow-up interviews to previous findings verificationfor further andimpactanalysis, especiallywithrespect andMay 2015provided toEritreainJanuary opportunities Visits 16

11 SECTION ONE Introduction 12 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 17 Araya etalv. Nevsun ResourcesLtd., SCBC Vancouver file#S148932(November 2014). Registry at theBishaMine(includingemployees ofBMSCandsubcontractors), meetings thathave taken placeduringthefieldwork inEritreawith workers the firstpriority. Thisrefersprimarilytotheinterviews, focus groups, and for theHRIAprocess, engagement withaffectedstakeholders inEritreais While bothofthese components ofstakeholder engagement are important diligence, andtoconsultabouttherecommendationsfromHRIA. gathering feedbackabouttheoverall approach tohumanrightsdue stakeholders outsideofEritreaforthepurposes with international their concerns, prioritizeissues, andassessimpacts;(2)engagement engagement withaffectedstakeholders inEritreaordertounderstand whichan undertaking iscomprisedoftwo maincomponents: (1) Stakeholder engagement oftheongoing isanessential part HRIAprocess, 1.5.3 STAKEHOLDER ENGAGEMENT UPDATED HUMANRIGHTSISSUES assessment teamhasupdatedtheworksheets developed fortheinitial To ensurethemethodologicalconsistencyfor2015HRIA Audit, the ONGOING ASSESSMENT FOR CONSISTENCY INSOURCESOFINFORMATION AND INDICATORS 2 HUMANRIGHTS AND LOCALCOMMUNITIES 1 LABOUR RIGHTS AND WORKING CONDITIONS 3 CROSS-CUTTING HUMANRIGHTSISSUES Grievance mechanisms Security andhumanrights Cultural Heritage* Community development Human rightsrelatedtotheenvironment Child labour Harassment Non-discrimination Freedom ofassociation Wages, hours, leave andbenefits Workplace healthandsafety program National service of Inquiry andtheclass actionlitigation inBritishColumbia. of Inquiry which allow individualstoraisetheirconcerns, suchastheUNCommission understandable given inplace theexistenceofotherprocessescurrently process, ithasnottoucheduponspecificindividual cases—which is While thisengagement hasbeenconstructive andvaluable fortheHRIA workers andcommunitymembers. since thesestakeholders have relevant of abouttheconcerns information Review Committee, NationalConfederationofEritrean Workers, etc.), Mine (e.g., communityliaisonofficers, humanresourcemanagers, Impact and otherstakeholders withresponsibilities formonitoringtheBisha BMSC employees andmanagers, Eritreangovernment representatives, villages. Stakeholder engagement with inEritreaalsoincludesinterviews and withcommunitymemberstraditionalleadersinthesurrounding to assesstheseissues. havesame methodologicalstepsandsourcesofinformation beenused HRIA Report. Where new oremergingissueshave beenidentified, the theauditprocess * New worksheet -asdefined by emergingissuethrough INFORMATION REVIEWED • • • • • • • • • • • • to Eritrea fromvisits andobservations Information media andcivilsocietyreports orallegationsStakeholder concerns from fromEritrea’sInformation UPRreports fromNevsunInformation CSRreports initiativeGlobal reporting indicators for theextractive sector CSRstandards Canadian/international Nevsun policiesandprocedures BMSC policiesandprocedures Eritrean law/proclamations Human rightsindicatorsforcompanies Human rightsindicatorsfortheState humanrightsstandards International 17

• • • • • • • • • • • • • • • • • STAKEHOLDER GROUPS Environment, Labour, etc. ofMines,Department representatives from Impact Review Committee Welfare Minister ofLabourandHuman &Mines Minister ofEnergy SENET managers atBishacamp depot at Asmara Transhorn GeneralManager andmanagers at Bishacamp Segen GeneralManager andmanagers Nevsun seniormanagement BMSC lawyer Labour TribunalJudges Eritrean Workers National Confederationof Community liaisonofficers Workers fromnearby communities Sub-zoba representatives Doctors inthecommunityhealthclinic Women inleadershiproles Traditional leaders M the courseofinterviews. language, andtoprobewhere positive andnegative feedbackemerges in made todesignquestionsandcommunicateinsimplenon-technical Given thepotentialsensitivityofsome humanrightstopics, are efforts areprovided and,interviews insomecases, areproactively solicited. individual concerns. However, forfollow-up opportunities individual and trendsrelatedtoworking conditionsrather thantodiscussspecific group meetingswithemployees areusedtoidentifyoverall patterns successive andtrust. visitstothemineinorder tobuildrapport Focus and sensitive manner. A numberofindividualshave on beeninterviewed or managers present, andareconductedinarespectful, compassionate, andfocusgroups inprivate areundertaken Interviews withoutsupervisors are taken tosafeguardtheconfidentialityandsafetyofinterviewees. In thecourseofengagement withaffectedstakeholders, allprecautions consulted duringtheHRIAprocesstodate. The graphic below aboutthe stakeholders provides information further inister ofFinance

Other Eritrean stakeholders representatives Government of Eritrea Community members supplier managers managers and Contractor This hasprovidedtoreceive anopportunity feedbackabouttheevolving officials, NGOs, academics, experts, andsociallyresponsibleinvestors. engagement hasincludedmeetingswithParliamentarians, government stakeholders sincethepublicationofinitialHRIAreport. This There hasalsobeensubstantialengagement withinternational the assessmentwork. experience interferenceby theGovernment ofEritreainany aspectof The assessmentteamhasnotbeenassigned “handlers” nordidit has beenunfetteredaccesstopeople, places, anddocumentation. that, throughoutthefourfieldmissionstoEritreadate, there human rightssituationattheBishaMine. toemphasize Itisimportant which aboutthe helpstoelicitmorenuancedandin-depthinformation with theGovernment ofEritreaand otherEritreanstakeholders—all of with localstakeholders, workers, andmanagers atthesite, aswell as HRIA processcontinuestobuildtrust, understanding, andrelationships From theseactivities, theassessmentteambelieves thattheongoing workers Bisha Contractworkers and suppliers managers Bisha • • • • • • • • • • • • • • • • • • • • • • Transhorn workers atBishasite Transhorn workers at Asmara depot Segen workers atBishasite Segen workers atcamp Head doctoratBishaMedicalClinic Exploration manager Processing plantmanagers Operations managers Procurement/finance manager Security managers Health andsafetymanager Community relationsmanager Environmental managers Human resourcemanagers General Manager Combined worker focusgroups Female worker focusgroups Male worker focusgroups Workers inexploration Workers inkitchenandhousekeeping Workers inofficeandadministration Workers inminingandprocessing Affected Stakeholders 13 SECTION ONE Introduction 14 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea and theimplementationofrecommendationsinitialHRIAReport. of greatest priority for issues the assessment the on focused and general, investors intheBishaMine. To date, thisengagement hasbeenfairly the humanrightssituationinEritrea, aswell associallyresponsible engaged inthisprocess, about alongwithacademicsandotherexperts activities, children’s rights, etc.). International NGOs have also been investigation duringthefollow-up visitstoEritrea(e.g., exploration received issuesforadditionalresearchand helpedtoprioritizecertain of theimplementationrecommendations. Otherfeedback extending themandateofHRIAprocesstoincludefollow-up auditing in stakeholders wasinstrumental from meetingswithinternational specific recommendationsfromtheHRIA. Forinstance, thefeedback approach tohumanrightsattheBishaMine, aswell as feedbackonthe stakeholder engagementThe maininternational activitiestodatearesummarizedinthetablebelow. ENGAGEMENT WITH INTERNATIONAL STAKEHOLDERS 18 21 20 19 STAKEHOLDER GROUPS

Socially ResponsibleInvestors Academics/Experts NGOs International Canadian NGOs United Nations Government Representatives HumanRights International Canadian Parliament’s Subcommitteeon Ibid. transcript isavailable at:www.parl.gc.ca/HousePublications/Publication.aspx?DocId=7880351&Language=E&Mode=1&Parl=41&Ses=2. The SubcommitteeChair, Mr. ScottReid, and Ambassador DominicRossettisubsequently provided testimony abouttheirvisitto EritreatotheSubcommitteeonMarch12, 2015(SDIRMeeting60). The SDIR Meeting32. The transcriptofthisappearancecanbeaccessed at:www.parl.gc.ca/HousePublications/Publication.aspx?DocId=6651839&Language=E&Mode=1. future HRIAs, suchahearing allows fordemocraticoversight andenhancedaccountability. committee. hearinginarepresentative hasbeenthesubjectofaformal institutionsuchasaParliamentary report As theHRIAcommunityofpracticeseekstoreinforcetransparency andcredibilityof At present, confidentially. HRIAsareundertaken ofreported requirementsforcompaniestomake publictheir HRIAs;asignificantproportion therearenoformal Totheauthor’s knowledge, noprevious HRIA ADDITIONAL INFORMATION • • • • • • • • • • • • • • • • • Meetings withEuropeanethicalinvestors inMay 2015 Presentation atChathamHouseinLondonJune2015 June 2015 Presentation atUniversal Peace HumanRightsGroupinLondon Foundation/Solicitors International Presentation atInstituteof Advanced Legal StudiesinLondon inMay 2014 Presentation toMining Association ofCanada’s SocialResponsibilityCommitteein International April 2014 Meetings withrepresentatives ofHuman Rights Watch inJuly2014 Meetings withrepresentatives of andMining Amnesty International Watch inJune2014 2015 inJanuary Submission ofHRIAtoUNCommissionInquiry andwithUNGlobalCompactinJuly2014 Meetings atUNheadquarters Meetings withUNICEF(Canada)inJune2014 Meetings withGovernment oftheUnitedKingdominJune2015 Meetings withresidentambassadorstoEritreainMay 2015 2015 January Canada’s non-residentambassadortoEritreavisitedduringtheHRIAfollow-up visitin 2015 Meetings withGovernment ofCanadarepresentatives inJune2014andJanuary Follow-up briefsubmittedtoSubcommitteeatrequestofClerkinMay 2015 2015 Chair ofSubcommitteevisitedEritreaduringtheHRIAfollow-up visitinJanuary witnessbefore SubcommitteeonJune5,Formal 2014 21 Rights provided anadditionalmeasureof accountabilityfortheHRIA. before theCanadianParliament’s Human SubcommitteeonInternational due diligence. Inparticular, theinvitation witness toappearasaformal contribute tothecommunicationscomponentofongoing humanrights improving thetransparencyof ongoing HRIAprocess, andthey for stakeholders areimportant These meetingswithinternational attention. as thehumanrightssituationinEritreaattractsgreater international stakeholders withrespecttotheHRIAprocess—particularly international Going forward, thattheretobeongoing itisimportant engagement with 19 20 18

22 the lawsuit orthesubstanceofCOIReport. process. Consequently, willnotcommentonthemeritsof theHRIAReport these processeshave objectives thataredistinctfromtheongoing HRIA onEritrea’s publishedinJune2015, report the UNCommissionofInquiry ofBritishColumbiainNovemberin theSupremeCourt 2014, aswell as While theassessmentteamisaware ofthelawsuit filedagainst Nevsun while inthecountry.interviews these broaderissueshave notbeenthefocusoffieldvisitsand about thegeneral contextrelatedtominingandhumanrightsinEritrea, Mine. While theassessmentteamhasconductedbackground research The HRIAprocessisfocusedonthehumanrightssituationatBisha 1.5.4 SCOPE AND LIMITATIONS

Initial HRIAReport, p. 16. corroborate thepastallegations.corroborate and managers, ortestimonialswere andnoinformation provided that practices have beenconsistentlyasked ofBMSCandcontractorworkers manner. Nonetheless, tostressthatquestionsaboutpast itisimportant mayhuman rightsconcerns beaddressedinaneffective andcredible engagement mechanismssothatindividualspast, present, orpotential focus hasbeenonstrengtheninggrievance mechanismsandstakeholder conclusive orconvergent aboutpastpracticesatthe mine, information the taken forthe2015 Audit: where ithasnotbeenpossibletogather The sameapproachtothetemporallimitationsofHRIAhasbeen to draw conclusionsaboutthehumanrightssituationpriortothatperiod. ex postassessmentwhich commencedin2013, ithasbeenchallenging described intheinitialreport. The mainlimitationoftheongoing HRIAprocessisthesameasthat 22 Namelythat, sincetheHRIAprocessisan 15 SECTION ONE Introduction 16 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea TWO SECTION CONTEXT: ASSESSMENT PERIOD HIGHLIGHTS FROM THE CURRENT

• following points: in Nevsun’s 2014CorporateSocialResponsibilityreport, includingthe Some oftheBishaMine’s recentoperationalhighlightswere published BISHA MINEOPERATIONS 2.1. from April 2014toJune2015. level.and morebroadlyattheinternational These developments cover theperiod Bisha Mine, andconsidersthem inthecontextofminingandhumanrightsEritrea, The following sectionprovides somerelevant highlightsofthedevelopments atthe BISHA MINELOCATION pound pounds ofcopperconcentrateproducedatcashcost$1.05per Average realizedcopperpriceperpoundof$3.02, with196million BISHA MINE ASMARA PORT OFMASSAWA 12 • • • • • • • undertaken A widerange ofcommunityengagement activitieshave been Exploration program hasdrilled27,300meters a totalof23,578hourstrainingprovided Training anddevelopment forlocalEritreanshasbeenacceleratedwith 21 millionhoursofwork withoutalost-timeinjury 1,230 employees, ofwhich 89%areEritrean Over $112millioninpayments tolocalpayroll andsuppliers Over $206millioninpayments toGovernment ofEritreaandENAMCO 01 PERIOD CURRENT ASSESSMENT HIGHLIGHTS FROM THE CONTEXT: ERITREA

17 SECTION TWO Highlights from the current assessment period 18 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 23 • • • • relevant period: totheassessmentofhumanrightsincurrent In addition, thefollowing general developments attheBishaMineare projected development oftheBishaMine. The following timelineprovides anupdatedoverview ofthepastand UPDATED TIMELINE OF THE BISHAMINE the Bishadeposit.deposit in theregionanddiscovered conducted prospectingwork exploration company) (a private Canadian Ophir Ventures 1996 1996 obtain further information obtain further anddialoguewithstaffto management interviews isconductingfurther turnover ataremoteminesuchastheBishaMineandBMSC Eritrean workers. There areanumberofplausiblereasonsforstaff There hasbeenanincreaseinstaffturnover ofEritreanandnon- and extensionofthelifeBishaMine results, which may resultinfutureexpansionoftheminingoperations hashadanumberofpromising drilling The ExplorationDepartment consumption requirementsforzincprocessing projectsatthesite, construction further andwillincreasethewater phase, which isprojectedtocommenceinmid-2016. This entails Preparations have begunforthetransitiontomine’s zinc Company fleetoperated a truck by anEritreansubcontractor, Transhorn Trucking copper concentratebetween theBishaMineandMassawa Port by copperphaseofmininginvolvesThe current significanthaulingof African Economic Outlook, Eritrea 2015, pp. 1and 3, accessedat: www.africaneconomicoutlook.org/fileadmin/uploads/aeo/2015/CN_data/CN_Long_EN/Eritrea_GB_2015.pdf statesthateconomicgrowthThe report for2015 isprojectedat2.1%, upfrom1.3%in2013and2.0%2015, reflectingimproved economicactivityandincreased investment inthe mining sector. See:

1998 license.license granted aprospecting was Nevsun subsidiary 2002 2002 Nevsun exploration.exploration was discovered by way of The BishaMainZone 2004 -2006 deposit.deposit Follow-up delineatedtheBisha drillingfurther • • MINING SECTOR INERITREA 2.2 • Construction GroupCo.Construction Ltd. between ENAMCOandtheSFECOGroup, ofShanghai asubsidiary developed by theZaraMiningShareCompany (ZMSC), ajointventure and isscheduledtobeginproductionlaterin2015. This mineisbeing Eritrea, phase Project areaofnorthern hasenteredtheconstruction The development oftheKokadeposit(gold), locatedwithintheZara mainly by theminingsector” Outlook, hasbeenpositive,“recent economicperformance driven growth inEritrea. According toa recentanalysisby African Economic The miningsectorcontinuestobeastrongcontributoreconomic implementation ofhumanrightsduediligence atthemine will have leadershiproleinensuringtheongoing animportant Department, andHumanResourcesDepartment. These managers months includenew managers intheEnvironment Department, Training Mine, andotherkey managers have beenhiredorpromoted inrecent A new GeneralManager hasbeenappointedtooversee theBisha Energy andMines. Energy andMines Energy of of to theEritreanMinistry to theEritreanMinistry conducted andsubmitted conducted andsubmitted Assessment (SEIA)was Assessment (SEIA)was and Environmentaland Environmental Impact Impact process,process, aSocio-Economic aSocio-Economic oftheminelicensing part oftheminelicensing part under Eritreanlaw.Nevsun andENAMCOas As BMSC wasincorporated 60/40 jointventure between under Eritreanlaw. As a BMSC wasincorporated 2006 2006 23 2007 Environment.Environment of Land, Water and the EritreanMinistry Review Committeewithin reviewed by theImpact was The SEIAreport 2008 • 26 25 www.danakali.com.au/projects/project-overview 24 www.sunridgegold.com/s/Home.asp • • diversion structures ofwater the construction Mogaraib River, including the useofwaterfrom wasgrantedpermit for began inSeptember. A May andmineconstruction was issuedtoBMSCin The Bishamininglicense Eritrea There areanumberofminingexplorationcompaniesoperatingin Danakali Ltd., an Australian company Mining ShareCompany (CMSC), ajointventure between ENAMCOand to commencein2018. This mineisbeingdeveloped by Colluli of Eritrea, inthefeasibilitystage, iscurrently withproductionexpected The development oftheCollulideposit(potash), locatedinthesouth ENAMCO andSunridge GoldCorp., aCanadiancompany the Asmara MiningShareCompany (AMSC), ajointventure between could begininthecomingmonths. This mine isbeingdeveloped by If therelevant andprojectfinancingisobtained, permits construction near theEritreancapitalcity, stage. intheminepermitting iscurrently The development ofthe Asmara deposits(gold, copper, zinc), located the reports citedtherein. the reports This isonlyabriefupdate ofafew key developments thatarerelevant totheHRIA Audit. andin discussionaboutthepoliticalandhumanrightscontext inEritreaisincludedtheinitialHRIAReport Further 2011 began the copperprocessingplant began of andconstruction Commercial gold production 25

2013 production commenced to winddown andcopper Gold productionbegan 24 2014 copper wasproduced 196 millionpoundsof • • • • SITUATION INERITREA POLITICAL AND HUMAN RIGHTS 2.3 Eritrea inthemediaandatUNHuman RightsCouncil report, ithasbroughtnegative attentiontothehumanrightssituationin Government ofEritreaandNevsun have publiclyobjected totheCOI the activitiesofsubcontractorsatBishaMine. While boththe and includesallegations abouthumanrightsviolationsrelatedto raises questionsaboutpotentialcrimesagainst humanityinEritrea whichIn June2015, publishedareport theUN Commission ofInquiry deadline fortheMDGs communitytakes stockofprogressas theinternational atthe2015 Millennium Development relatedtohealth— Goals(MDGs)—particularly Eritrea isreceivingcreditforitsachievements onanumberof Rights abouttechnicalassistanceonhumanrightsmatters been initiatedwiththeUNOfficeforHighCommissioneronHuman In follow-up toEritrea’s Universal Periodic Review exercise, dialoguehas ofprocedure rules The Government itscriminalandcivilcode ofEritreahasreformed 2014-2015 start-up inmid2016 start-up expansion project, withtarget BMSC advanced itszinc extended ifotherdepositsarefoundthroughongoing exploration Predicted closureandreclamationphase;thistimelinecouldbe 26 2025+ 19 SECTION TWO Highlights from the current assessment period 20 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 31 30 29 28 27 • • AND HUMANRIGHTS GLOBAL CONTEXTFORBUSINESS 2.4 33 32

Mine: initiatives thatarerelevant tothefollow-up assessmentoftheBisha impossibletotrack,rights arenearly thefollowing aresomeofthekey While thenumberofnew initiatives relatedtobusinessandhuman when operatingoverseas companiesareexpectedtoimplement that Canadianextractive industry 2014) now includestheUNGuidingPrinciples asoneofthestandards Extractive fortheInternational Sector(revisedStrategy inNovember national level. InCanada, theGovernment ofCanada’s EnhancedCSR to strengthentheimplementationofUNGuidingPrinciplesat and elsewhere have adopted, orarepreparingNational Action Plans business andhumanrights. A growing numberofcountriesinEurope Human Rightscontinuetogain momentumasthe leadingstandardfor level,At aninternational theUNGuidingPrinciplesonBusinessand accessed at:www.ceowatermandate.org/files/business-hrws-guidance.pdf CEO Water Mandate, GuidanceforCompaniesonRespectingtheHumanRightsto Water andSanitation:BringingaHumanRightsLenstoCorporate Water Stewardship, 2015–Betaversion), (January Assess Implementationofthe Voluntary Principleson SecurityandHumanRights, May 2015, accessedat:www.globalcompact.ca/resources UN GlobalCompactNetwork CanadaandBusinessforPeace, Auditing Implementationof Voluntary PrinciplesonSecurityandHumanRights: A GuidanceDocumentto Assist Companiesandtheir Auditors LabourConference,International Recommendation203(June11, 2014), accessedat:www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_248908.pdf P029 -Protocolof2014totheForcedLabourConvention, 1930(June11, 2014), accessedat:www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:P029 For further information about theOHCHR’s information For further Remedy and Accountability Project, see:www.ohchr.org/EN/Issues/Business/Pages/OHCHRstudyondomesticlawremedies.aspx found at:www.business-humanrights.org/en/binding-treaty business enterpriseswith respecttohumanrights.” The firstmeetingof this intergovernmental working group washeldonJuly6-10, 2015inGeneva. onthe proposedbindingtreatycanbe Moreinformation toaresolutionintheUNHumanRightsCouncil,Further anintergovernmental working group to hasbeenstruck legally ontransnational corporationsandother “to elaborateaninternational bindinginstrument FrameworkThe UNGuidingPrinciples Reporting andaccompanying materialscanbeaccessedat: www.ungpreporting.org - - - - Suppression ofForcedLabour MeasuresfortheEffective a RecommendationonSupplementary the Voluntary Principles the Voluntary auditors aboutwhat good practicelookslike when implementing document attemptstoprovide clearerguidanceforcompaniesand of the Voluntary PrinciplesonSecurityandHumanRights;this related toKey Performance Indicatorsfor Auditing Implementation The UNGlobalCompactNetwork inCanadaprovides new guidance provide remedy forforcedlabouratthenationallevel and employers associationstoprevent, protectagainst, and collective actionsbetween governments, employees associations to theConvention Against ForcedLabour1930 LabourOrganizationThe International adoptedthe2014Protocol 29

28 thatprovides new guidancefor 27 , andreleased • • launched amajor “Remedy and Accountability Project” the UNOfficeofHighCommissionerforHumanRightshas to remedieshave beenlaunchedinrecentmonths. Inparticular, andanumberofnew initiativesinternationally toimprove access rights abuses. The issueofremedy isgaining greater attention both judicialandnon-judicial—forbusiness-relatedhuman about thelackofprogress withrespecttoaccessremedies— Many stakeholders andhumanrightsdefendersremainconcerned human rightsabuses on government andcompanieswithrespecttobusiness-related and humanrightsthatwould legal imposefurther obligations treatyonbusiness Guiding Principleswithabindinginternational tonotethatthereisamovementimportant tosupplementtheUN by many governments, associations, industry andcompanies, itis standardforbusinessandhumanrights appropriate international While theUNGuidingPrincipleshave acceptedasthe beenclearly - - - - management systems considerations intotheirwaterstewardship andenvironmental tointegratehelp companiesintheirefforts humanrights Human Rightsto Water andSanitation. This mandateshould guidance fortheCorporateResponsibilitytoRespect The UNGlobalCompact’s CEO Water Mandateprovides new Principles practiceswiththerequirementsofUNGuiding reporting thisway,rights reports—in moreeffectively aligningcompany way ofintegrated sustainabilityreports, orstand-alonehuman bybetter andmoreconsistentreporting companies—eitherby FrameworkThe UNGuidingPrinciplesReporting willfacilitate 31 32

30

33 HRIA RECOMMENDATIONS IMPLEMENTATION OF THREE SECTION

21 SECTION THREE Implementation of HRIA recommendations 22 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 36 35 34 Assessment 2014 HumanRightsImpact in acasestudy inthe2014CorporateSocialResponsibilityReport. provided aself-assessmentofitsprogress ontheHRIArecommendations onhumanrights, ofitscommitmenttopubliclyreport As part Nevsun 38 37 training, engagement, andauditingwithoursupplierscontractors.” ontheseongoing –includingwithrespectto continue toreport efforts these aspectsrequireongoing humanrightsduediligence, andwe will acknowledgesResponsibility Report that “we understand thatsomeof regard, itshouldbeemphasizedthatthe2014CorporateSocial as well assuggested nextstepsforongoing implementation. Inthis The following review ofeachrecommendationprovides information, further recommendations ontheground. progress reflectsthecurrent madetowardsfairly implementingthe From thefollow-up assessmentattheBishaMine, theself-assessment end ofthisreport. consolidated intheConclusionsandRecommendationssectionat The suggested nextstepsfortheHRIArecommendationsare recommendations withoutreservation. As mentionedintheintroduction, Nevsun andENAMCOacceptedalloftheHRIA current implementation oftherecommendationssetoutininitialHRIAReport. current providesThis sectionofthereport thefindingsofthisassessmentwithrespectto

RECOMMENDATIONS OF HRIA IMPLEMENTATION Nevsun 2014CSRReport, p. 16, accessed at:www.nevsun.com/pdf/Nevsun-2014-CSR-Report.pdf The fulltextoftheserecommendationscanbefound onp. 47ofthe fullHRIAreport. The HumanRights Policy isavailable onthe Nevsun website: www.nevsun.com/corporate/governance/human-rights-policy/ Initial HRIAReport, p. 47. discussionabout Bisha’s Further policycommitmentisincluded atp. 42ofthe initialHRIAReport. Ibid, note*onp. 16. 2014 CorporateSocialResponsibilityReport 35

36

HRIA RECOMMENDATION #1 3.1 Rights intotheNevsun CodeofEthicsin April of2015. a HumanRightsPolicy onDecember12, 2014, andintegrated Human tothisrecommendation,Further Nevsun’s BoardofDirectorsadopted Status –approved; 100%complete NEVSUN SELF-ASSESSMENT: senior levels ofNevsun management iswhat counts. words onpapermay be, themost thesignalofcommitmentform language intheexistingBMSCpolicies. asthesenew As important in itsCodeofEthics, andtoembedsomeadditionalhumanrights for Nevsun tointegrate aseparateanddistincthumanrightssection Therecommendedoptionis Explanation intheinitialHRIAReport: Adopt andembedamoreexplicithumanrightspolicy stakeholders afterthepublication ofthis2015 Audit. policy asadoptedmay besoughtduringtheengagement withexternal theinitialHRIAReport. feedbackonthespecific concerning Further general ideaofastand-alonehumanrights policyduringthemeetings experts. stakeholders aboutthe There wasconsultationwithexternal consultation withintheseniormanagement teamaswell aswithexternal Policy andstatementintheirCodeofEthicsafteraprocess ofinternal The Nevsun adoptedtheHumanRights BoardofDirectorsformally has beenreproducedinthetableonnextpage. 37 38 The relevant text 34

39 • • • • • features ofthisnew HumanRightsPolicy areasfollows: From theperspective oftheUNGuidingPrinciples, someofthepositive NEVSUN HUMANRIGHTSPOLICY See Commentary toUNGuidingPrinciple 16andtheOHCHRInterpretive Guideatpp. SeeCommentary 26-31. to corporatesocialresponsibilityworking groups atsite Committee tothe ofCorporateSocialResponsibilityand Vice-President the policyfromBoardofDirector’s Safety, HealthandEnvironment It provides clearresponsibilitiesfortheoversight andimplementationof ENAMCO internally, hasbeendiscussedwith theimplicationforitssubsidiary throughtheNevsunIt hasbeencommunicatedexternally website and, human rights It stipulatestheexpectationthatallsubsidiarieswillrespect byIt wasinformed relevant expertise andexternal internal It wasapproved by themostseniorlevel ofthebusinessenterprise respect, promote, humanrightsinitsoperations. andsupport ofNevsun (a willberequiredto each operatingsubsidiary “Subsidiary”) In ordertopromotethe UNGuidingPrinciplesonBusinessandHumanRights, Subsidiaries Nevsun • • • • • • to: will undertake In linewiththe UNGuidingPrinciplesonBusinessandHumanRights, Nevsun Human RightsatNevsun and itsoperations. Nevsun respects, humanrightsacrosstheorganization promotesandsupports business conductandcorporatesocialresponsibility. or the “Company”) ofourcommitmenttoethical andareaninherentpart Human rightsarefundamentalvalues forNevsun ResourcesLtd. (“Nevsun” Human RightsPolicy supply chain respect forhumanrightsthroughoutourdirectandcontrollablevalue and Work withourbusinesspartners, contractorsandsuppliersto promote our stakeholders atthelocal, levels national andinternational Communicate ourcommitmentsandactionsrelatedtohumanrightswith circumstances warrant Consider additional, stand-alonehumanrightsimpactassessmentswhere employees andcontractors Provide orientationonhumanrightsandcodesofconductpoliciesfor requirements human rightsandnationalregulatory Develop codesofconductandpoliciesinlinewithourcommitmentson investments innew jurisdictions Assess potentialhumanrightsimpactsrelatedtomajoracquisitionsor 39 Resources Ltd.onDecember12, 2014. This HumanRightsPolicy ofNevsun wasadoptedbytheBoardofDirectors operational level. corporatesocialresponsibilityworkingthe inter-departmental groups atthe Rights Policy management andeachof andprovides guidancetoSubsidiary Corporate SocialResponsibilityleadsintheimplementationofourHuman raisedthrough the concerns Whistleblower Policy. The of Vice-President oversight oftheimplementationourHumanRightsPolicy andaddressing The mandateofourSafety, Health&Environment Committee includes Governance development outcomesinourlocalcommunity. development priorities, we endeavour humanrightsandsustainable tosupport local communitiesandvulnerablegroups. While respectinglocalandnational Nevsun iscommittedtoavoiding negative impactsonthehumanrightsof In Communities bargaining. We therightofourworkers support tofreedomofassociationandcollective to fosterasafe, justandfavourable workplace cultureforouremployees. discrimination, harassmentorforcedchildlabourandprioritizesinitiatives Nevsun iscommittedtofairemployment. Nevsun willnottolerateany typeof In theWorkplace diligence exercises. stand-alone humanrightsimpactassessments and/orotherdue (and otherrelated)policiesofeach subsidiary, aswell asthrough human rightsforeachoperationthroughspecificsite-level humanrights commentary. The company intendstoidentifyandaddressthesalient recognised humanrightsasspecifiedinUNGuidingPrinciple12andits was intendedtosignalthecompany’s commitmenttoallinternationally thattheirreferencetotheUNGuiding Principlesintheirpolicy confirm ofthescopepolicy,In terms withNevsun management interviews • www.nevsun.com/responsibility/human-rights theNevsun’sView HumanRightsPolicy at: rights initsoperations. ofNevsun willberequiredtorespect,subsidiary promote, human andsupport Guiding PrinciplesonBusinessandHumanRightsthateachoperating The Company hasadoptedaHumanRightsPolicy thatwillpromotetheUN Human Rights STATEMENT ONHUMANRIGHTSINNEVSUN’SCODEOFETHICS contractors andsuppliersonhumanrights the useofstand-aloneHRIAswhere relevant, andengagement with with respecttonew acquisitionsandinvestments innew jurisdictions, It includesrequirementsandstrategiesforhumanrightsduediligence 23 SECTION THREE Implementation of HRIA recommendations 24 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea rights duediligence attheBishaMine. as toembedresponsibilitiesfortheongoing implementation ofhuman human rightswithworkers, communities, andbusinesspartners, aswell rights policyprovides awareness agood toraisefurther about opportunity for BMSC. The development and roll outofthisEritrean, site-level human and ENAMCOhave agreed toadoptastand-alone Workers’ RightsPolicy a sectiononhumanrightsintoitsCodeofEthics. Furthermore, Nevsun Nevsun hasadoptedastand-aloneHumanRightsPolicy andintegrated CONCLUSIONS • • • • • • should cover include: Directors. Someofthenextstepsandapproachesthatroll-outplan when the Workers’ RightsPolicy isapproved by theBMSCBoardof Therefore, itisrecommendedthataspecificroll-outplanbeprepared the endof2015. adoptedbyexpected tobeformally theBMSCBoardofDirectorsbefore Policy” hasbeenpreparedfortheBishaMine. This new policyis thatastand-alone assessment teamhasbeeninformed “Workers Rights stand-alone policyonhumanrightsforBMSC. At thetimeofwriting, the In thisregard, Nevsun andENAMCOhave beencollaboratingtodraftnew new “Workers’ RightsPolicy” forBMSC. the BishaMine. roll-outofa The focusatpresentisontheforthcoming already beenembeddedinthevarious CSRpoliciesandproceduresat As discussedintheinitialHRIAReport, many humanrightsaspectshave 40 InitialHRIA Report, p. 47. of promotionalmaterialsintheCLOoffices on-going engagement ofthecommunityliaisonofficersanddistribution ofthenew policythroughthe Ensuring thatcommunitiesareinformed on humanrights(seerecommendation#4) contractors andsupplierstodrive theon-going engagement withthem Ensuring thatthenew policy requirementsarecommunicatedtoBisha’s policy (seerecommendation#2). Alignment ofthehumanrightstraininginitiatives atsitewiththenew awareness aboutthenew policyatsite Developing materials(posters, ofsupporting etc.)topromote in implementationofhumanrightsduediligenceto participate activities andprovidingFormalizing aclearmandatefortheCSR Working Group policy communicating thecommitmentofseniormanagement tothenew Leadership fromENAMCOandtheGeneralManager atsitein specific commitmentscontainedinthenew policy. BMSC Workers’ RightsPolicy toembedthe sothatthetrainingserves suggested thatthisbecoordinatedwiththeroll-outofforthcoming received inductiontraining)toreceive trainingonthenew module. Itis will betodevelop amechanismforexistingemployees (who have previously The nextstepforensuringthatallemployees receive humanrightstraining forallnew employeestraining ismandatory andvisitorsatsite. withthemanager ofthe From interviews Training Centre, theinduction includes thetopicssummarizedintextboxonfollowing page. site. The inductiontraining’s humanrightsmodulehasbeenreviewed andit the Bisha Training Centreover threedays when new employees firstarriveat at site. The overall inductiontrainingisdelivered inaclassroomsetting developed andhasbeingintegrated intoinductiontrainingfornew workers tothisrecommendation,Further abasichumanrightsmodule hasbeen acknowledgment thattrainingrequiresongoing efforts) Status –ongoing onaregularbasis;100%complete(with NEVSUN SELF-ASSESSMENT: human rights. rights workshops withkey andoperationalimplicationsof departments rights inrelationtothe Voluntary Principles, and(3)conductinghuman module forex-pats), (2)specializedtrainingonsecurityandhuman induction training(chalk-boardmoduleforlocalemployees andon-line moduleonhumanrightsduringthe Mine include(1)anintroductory forintegratingopportunities humanrightsintotrainingattheBisha day-to-day rolesand responsibilities. Someofthemostpromising about BMSC’s humanrightscommitmentsandwhat they implyintheir new trainingcentreprovides anexcellentvenue toeducateworkers building andtrainingwithintheworkforce atthe Bisha Mine, andthe Thereisathirstforcapacity- Explanation intheinitialHRIAReport: humanrightstrainingConduct further atBisha HRIA RECOMMENDATION #2 3.2 development of specializedworkshops forkey departments. of the Voluntary PrinciplesonSecurityandHuman Rights, aswell asthe advanced humanrightstrainingprograms relatedtotheimplementation The initialHRIArecommendationalso suggested thedevelopment ofmore • • receive thetrainingonnew policy, includingthefollowing There areanumberofpotentialapproachesforensuringthatallemployees Training Centre onadditionaloccasions during othertrainingsessionssothat employees donotneedtogo tothe Providing todeliver opportunities thehumanrightstrainingmodule that ithasbeencompletedwhen theemployee’s planisreviewed training andpersonaldevelopment planforthenextyear, andverifying Ensuring thatthehumanrightstrainingisincludedineachemployee’s 40

: aligned with external expectationsandexamplesofgoodaligned withexternal practice. help ensurethatthetraininginitiative andsubsequentauditingexercise are Indicators for Auditing theImplementationof Voluntary Principlescan network. Moreover, therecentlaunchofnew guidanceonKey Performance Nevsun hasestablishedcontactwiththesecretariatfor Voluntary Principles Principles afterthetraininginitiative hasbeencompleted. Inthisregard, auditontheimplementationof independent third-party Voluntary Furthermore, Nevsun hasindicatedthatitwould like toconductan • • • follows: Principles initiative, someofthekey nextstepsanddeliverables areas Bisha MineinMay 2015. Fromareview ofthework planforthe Voluntary initiative, intheinitialneedsassessmentvisitto andparticipated toleadthe Canadian securityandhumanrightsexpert Voluntary Principles a The assessmentteamassistedintheidentificationandselectionof of theBishaMine. training canbeofferedtoEritreansecurityforcesthatoperateinthevicinity initial trainingonthe Voluntary Principleshasbeendelivered atsite, the guards fromBinaeSecurity(private securitycontractors atsite). Oncethe human resources, medicalclinic, etc.), andthemanagers andsecurity security managers, otherrelevant BMSCmanagers (healthandsafety, on providing advanced trainingonhumanrightsandsecuritytotheBMSC recent months(the Voluntary Principlesinitiative). This initiative focuses a new initiative ontrainingandimplementationhas beenlaunchedin respecttothe With Voluntary PrinciplesonSecurityandHumanRights, INDUCTION HUMANRIGHTS TRAINING AT BISHASPEAKINGPOINTSFOR TRAINERS Five days)Five ofthetrainingat BishaMineinNovemberDelivery 2015(plannedfor guards tobedeveloped by October 2015 Principles andtherelevant standardoperatingproceduresforsecurity A customizedtrainingpackage covering humanrights, the Voluntary Mine inSeptember2015 assessment andstandardoperatingprocedurestobeheldattheBisha Training workshops onintegrating humanrightsintoongoing risk • • Overview oftheHRIAprocess Overview Human rightsattheBishaMine ------Anonymous dropbox ofthegrievanceOverview mechanismsavailable atBisha Commitment toimplementtherecommendations Recommendations Background ontheHRIAprocess and Government ofEritrea for humanrightsinEritreathroughcooperationwithENAMCO Support resolve relatingtohumanrights issuesandconcerns Provide grievance mechanismstoensurethatwe candiscussand operations andthroughbusinesspartners Commitment toensuretherearenonegative impactsinthemine’s Commitment torespectingworkers andcommunities • further humanrights capacity-buildingandtraining. further CSR departmental Working Group. This isalogicalplacetoprioritize responsibility forhumanrightsdue diligence atsitetoacross- employees andbusiness partners. The new policy alsodelegates foradditionalhumanrightstrainingactivitiesexisting opportunity BMSC The roll-outoftheforthcoming Workers’ RightsPolicy provides an 2015. andotherrelevantto thesecuritydepartment inthefallof departments Voluntary PrinciplesonSecurityandHumanRights, andwillbedelivered rights trainingcourseisbeingdeveloped ofanew initiative aspart onthe in theinductiontrainingfornew BMSCemployees. A moredetailedhuman number oflevels. humanrightsmaterialshave beenincluded Introductory Explicit humanrightstraininghasbeeninitiatedattheBishaMinea CONCLUSIONS team.assessment and resourcesforspecificfunctionscanbeidentifieduponrequesttothe encouraging theinvolvement oftheGeneralManager. Additional training a collaborative andcoordinatedapproachtohumanrights, aswell as rights trainingandworkshops forthetimebeing. This willencourage human suggested remainthemainfocusofsupplementary thatthisforum CSRworkinginter-departmental groups attheoperationallevel, itis Given thatNevsun’s HumanRightsPolicy assignsresponsibilityto specific 2015HRIA Audit activitieswithintheirresponsibilities. andresourcesabout in various toprovide information departments further have been supplementedby individual and group meetingswithmanagers discussthe2015HRIA further Audit. meetings These inter-departmental the GeneralManager) duringtheassessmentandauditingvisitstosite toconveneopportunities working aninter-departmental group (chairedby implications ofhumanrights. Inthepastmonths, therehave been human rightsworkshops withkey addressingtheoperational departments A finalcomponentoftheinitialHRIArecommendationrelatestoconducting Expectations ------human rightsatBisha Numerous BMSCandNevsun policiesandnationallaws reinforce respect humanrights All managers, employees areexpectedto andbusinesspartners sector ofBisha’sRespect forhumanrightsispart leadershipinthemining improve ouroperations Speak up! Usethesemechanismstohelpusresolve issuesand Union mechanismsforSegen employees Nevsun whistleblower policy BMSCcomplaintprocessforSegenFormal workers BMSCcomplaintprocessforcommunities Formal BMSCcomplaintprocessforemployeesFormal 25 SECTION THREE Implementation of HRIA recommendations 26 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 43 The 2006version oftheIFCPerformance Standardswere includedintheMining Agreement between theGovernment ofEritreaandNevsun. As theBishaMinedoesnot receive projectfinancing fromtheIFC 42 41 2012 IFCPerformance Standards, requirement forBMSCto While thereisnoformal “comply” withthe standards andoperationalhumanrightsissues. diligence, asthereissignificant overlap between thespecificperformance 2012 IFCPerformance Standardscancontributetohumanrightsdue adhere towhen operatingabroad. The effective implementationofthe the Government ofCanadaexpectsCanadianextractive companiesto management; they standardsthat alsoconstituteoneoftheinternational widely regarded astheleadingstandardforenvironmental andsocial operations. Inthisrespect, the2012IFCPerformance Standardsare key framework forintegrating humanrightsduediligence intothemine’s developed onthebasisof2006IFCPerformance Standards—asa environmental andsocialmanagement plansattheBishaMine— The intentionofthisrecommendationwastousetheexisting Status –tocommenceinQ22015;0%complete NEVSUN SELF-ASSESSMENT: resources. considerations canbemanaged withinexistinghumanandfinancial and environmental management plansalsohelpsensurethatthese be tracked over time. The integration ofhumanrightsintosocial into moredetailedandmeasurableactionsindicatorsthatcan exercise canhelpbreakdown thebroadhuman rightscommitments recently beendeveloped forIFCPerformance Standards(2012). This human rightstobeintegrated intothemanagement plansthathave the BishaMine. for Furthermore, thereisanexcellentopportunity pointsforongoing humanrightsduediligencestrategic entry at Thisisoneofthemost Explanation intheinitialHRIAReport: at theBishaMine Standards implementation ofthe2012IFCPerformance Integrate humanrightsconsiderations intothe HRIA RECOMMENDATION #3 3.3 of areasthathave humanrightsimplications. development ofnew StandardOperatingProcedures(SOPs) inanumber editing ofexistingenvironmental andsocialplans, andisattendingtothe in 2015indicatethatNevsun hasbeguntoprioritizetheupdating/ Department. However, withthenew environmental interviews managers delays asaresultofturnover inthemanagement oftheEnvironmental as 0%in2014. The mainreasonforthisself-assessmentrelatesto Nevsun evaluated itsprogress onthe2012IFCPerformance Standards good practiceinthemanagement ofenvironmental andsocialimpacts. made toapplythesestandardsattheBishaMineasabenchmarkfor a voluntary basis. a voluntary (or EquatorPrinciplesbanks thatalsoapplytheIFCPerformance Standards), theinitiative toupdatethemine’s environmental andsocialplanstothe2012IFCPerformance on Standardshasbeenundertaken Bisha Mine, itisclearthatadditionalhuman rightsduediligence through theongoing part isbeingundertaken—in HRIAprocessandtheimplementationof itsrecommendations. appropriate fortheclient tocomplementitsenvironmental andsocialrisks and impactsidentificationprocesswithspecific humanrightsduediligence asrelevant business.” totheparticular Inthecaseof that they areahighlyrelevant pointforintegrated andusefulstarting approachestohumanrightsforextractives projects. In footnote12ofPerformance Standard1, the IFCacknowledges that “it may be There isongoing debateaboutwhether theIFCPerformance Standardsfullycover the expectationsforongoing humanrightsduediligence accordingtotheUNGuidingPrinciples, butthereisconsensus Initial HRIAReport, p. 47. aboutBMSC’s information Further environmental andsocialmanagement atpp. plansandtheIFCPerformance StandardscanbefoundintheinitialHRIAReport 31-33. 41 43 a voluntary commitment hasbeen avoluntary 42

development oftheminingsector inEritrea. social management initiatives canhave apositive impactontheoverall Committee membersinthedevelopment ofnew environmental and ongoing dialogueandallowing ofImpact Review forparticipation at thenew minewillmeetthesamestandards. Therefore, maintaining practices atBishawiththeexpectationthatpoliciesand facilitated visitsofenvironmental the managers fromZaratoobserve for theZaraMine. Insome cases, theImpactReview Committeehas social impactassessmentsandmanagement plansbeing developed plans, andSOPs attheBishaMineasthey review theenvironmental and Committee, who statedthatthey topolicies, are referring management feedback frommeetingswithrepresentatives oftheImpactReview ofthe part This capacity-buildingaspectwasaclearandrecurrent being developed. policies andproceduresfortheotherminingprojectsthatarecurrently basis) inordertounderstandandapplyleadingenvironmental andsocial committeethatmonitorstheBishaMineonaquarterly department of theGovernment ofEritrea’s ImpactReview Committee(across- and socialplansSOPs, theBishaMineiscontributingtocapacity of the2012IFCPerformance Standardsandupdatingitsenvironmental assessmentperiod:byduring thecurrent working ontheimplementation aspectofthe2012IFCPerformance Standardsbecameclear One further operations. especially onsomeissuesthatmay notberelevant totheBishaMine’s and reference, butshouldnotbeviewed asrequiringfull “compliance”— point entry Performance Standardsshouldbeunderstoodasanimportant perspective. Therefore, theassessmentteamconcursthat2012IFC the UNGuidingPrinciplesarekey referencefromahumanrights Standards provide usefulguidanceforoperationalgrievance mechanisms, community grievance mechanismplan:while the2012IFCPerformance some issueareas. Oneexamplerelatestotheupdatingofexisting standards thatmay berelevant andprovide additionalguidancefor social management attheBishaMine. efforts However, thereareother reference pointsforongoing improvements totheenvironmental and that the2012IFCPerformance Standardsareseenasoneofthekey In discussionswiththeenvironmental managers atsite, ithasbeenclear rights perspective, asoutlinedinthetableonnextpage. oftheseplansand/orSOPsshouldbeprioritizedfromahuman quarter requirements—the assessmentteamsuggests thatapproximatelyone in accordancewiththe2006IFCPerformance andEritreanpermitting social management planspreparedsincethedevelopment ofthemine this listofplansandSOPs—andpriorreview oftheenvironmental and developing new plansinatleast56differentareas. Fromareview of existing environmental andsocialmanagement plansand/orSOPsor The assessmentteamhasreviewed theproposedprioritiesforupdating ENVIRONMENTAL ORSOCIALMANAGEMENT PLANSORSTANDARD OPERATING PROCEDURES (SOP)RELATED TO HUMANRIGHTS 9. 8. 7. 6. RIGHT TORELATEDSANITATION WATERHUMAN TO AND THE 5. procedure 4. 3. 2a. 2. 1. PLANS /SOPS 12. 11. 10. HEALTHRIGHT TORELATED TOCOMMUNITIES WORKERS AND RELATED TO HUMANRIGHTSOFCOMMUNITIES 15. 14. 13. RELATED TO OVERALL ENVIRONMENTAL AND SOCIALMANAGEMENT /HUMANRIGHTS DUEDILIGENCE

Potable watermonitoringSOP Surface watermonitoringplan Ground waterlevel meteringSOP Ground watermonitoringplan Compensation policy Community assistance policy document Community Assistance Program procedure Construction Grievance mechanismforSegen management plan Grievance mechanism Stakeholder engagement plan Dust monitoringplan Noise meterSOP Noise monitoringplan Environmental inspectionplan investigation SOP Environmental incident Internal reporting SOP reporting Internal RELEVANCE TO HUMANRIGHTS • • • • • • • • • • • • • • • • • • Contributes toassessingimpactsofoperationsonwaterqualityandquantity Contributes toassessingimpactsofoperationsonwaterqualityandquantity Contributes toassessingimpactsofoperationsonwaterqualityandquantity Contributes toassessingimpactsofoperationsonwaterqualityandquantity Contributes toremediationofpotentialnegative impactsincommunities Follow-up onHRIArecommendation#6 positive impactsincommunities Contributes tomanagement ofpotentialnegative for impactandsupport Follow-up onHRIArecommendation#6 positive impactsincommunities Contributes tomanagement ofpotentialnegative for impactandsupport impacts andconcerns Contributes toaccessremediesandproactive management ofhumanrights impacts andconcerns Contributes toaccessremediesandproactive management ofhumanrights Is akey componentofongoing humanrightsduediligence (respiratory illness) (respiratory Contributes toassessingimpactsonworkers andcommunitieshealth Contributes toassessingimpactsonworker’s health(hearing) Contributes toassessingimpactsonworker’s health(hearing) Contributes tohuman rightsduediligence (especiallytracking) acting, andintegrating) Contributes tohumanrightsduediligence (especiallyimpactassessment, Contributes tohumanrightsduediligence (especiallytracking) • • • • • • • • • • • • • • • • STATUS New planis tobedeveloped New planistobedeveloped Updated planhasbeenfinalized New SOPbeingprepared Updated planhasbeendrafted New SOPisbeingdeveloped Updated planhasbeendrafted New policyisbeingdrafted with new CAPpolicy policiesarebeingupdatedtoalign Internal and communities and responsibilitiesofBMSC, government New policyisbeingdraftedtoaddressroles Principles standards includingtheUNGuiding prepared toalignwithinternational Updated management planisbeing Existing planisbeingupdated. Updated planhasbeendrafted New SOPisbeingdeveloped Updated planhasbeendrafted be used workers andtheNCEWabouthow itcan have beeninitialdiscussionswithSegan approved by theBMSCBoardandthere Segen grievance mechanismhasbeen 27 SECTION THREE Implementation of HRIA recommendations 28 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 44 activities have by beenundertaken Nevsun and BMSCmanagers. the 2015HRIA Audit mandate. However, additionalengagement and audit of with andauditingofEritreansubcontractors hasbeenanexplicitpart oftheBishaMine,priority issuesraisedby observers external engagement remainsoneofthe Given thattheprohibitionagainst nationalservice Binae Security. expanded toothercompanies, notably Transhorn Trucking Company and At thesametime, the engagement withsubcontractorshasbeen been prioritizedfortheongoing engagement onhumanrightsmatters. phaseoftheBishaMine,construction subcontractorhas thisparticular workers bynational service Segen Company Construction duringthe working conditions. Given therepeatedallegations oftheuse and subcontractors have continuedwithrespecttonationalservice tothisrecommendation,Further inspectionsandauditsofEritrean requires ongoing efforts) developed; 75%complete(withacknowledgment thatauditing Status – Auditing underway, BMSCStandardOperatingProcedure NEVSUN SELF-ASSESSMENT: provisions where appropriate. agreements shouldbetracked andrevised toincludehumanrights should becoordinatedwithSENET. BMSCcontractsandprocurement Transportation andBinaeSecurity. Screeningandmonitoring efforts transposed intodeeperengagement withcontractorssuchas Transhorn grievance mechanismdeveloped withSegen shouldbe Construction “inside thefence”. The dialogueand screeningproceduresand address issues “outside thefence” asconfidently asitmanages issues stakeholders, andisalsoasignofmaturingapproach when BMSCcan contractors andsubcontractorsonhumanrightsisanexpectationof Engaging withsuppliers,Explanation intheinitialHRIAReport: subcontractors Engagement onhumanrightswithsuppliers, contractors, and HRIA RECOMMENDATION #4 3.4 can helpaddresskey issuesatsite. Environmental insomecases, Department; standards otherinternational the BishaMine, they shouldnotbeinterpretedasrestrictive forthe benchmarkfor the IFCPerformance Standards2012areanimportant of theseplans/SOPsshouldbeprioritizedasmuchpossible. While ongoing humanrightsduediligence; thecompletionandimplementation Approximately 15oftheseplans/SOPsaremorerelevant toBMSC’s 60differentareas.plans andStandardOperatingProceduresinnearly and/or updatingofexistingenvironmental andsocialmanagement The Environmental hasprioritizedthedevelopment Department ofnew CONCLUSIONS InitialHRIA Report, p. workers 47. aboutthesafeguards against by information theusenational service Eritreansubcontractors canbefound atpp. Further 21-22ofthe initialHRIAReport. 44 from nationalservice. To date, noevidence hasbeenfoundforthe file management toensurethat driversTranshorn have beendischarged and involved reviewing Transhorn’s screeningproceduresandemployment to Eritrea. At first, theseactivitiesfocusedontheissueofnationalservice engagement andauditingactivitiesduring threeoftheassessmentvisits respectto With Transhorn Trucking Company, therehave now been acceptable forthenumberofworkers atcamp. andthatthelivingconditionsare been discharged fromnationalservice necessitate additionalduediligence toensurethatallthe employees have required forthezincphase. This upswing intheSegen workforce will are to riseup200+employees services construction astemporary and 60employees inMay 2015). However, thisnumberisprojected workforce atBishahasbeenquitesmall(40employees 2015 inJanuary It mustbenotedthat, duringtheassessmentperiod, thesizeofSegen whopass throughintermediaries mightmisappropriatethewages. activities toensurethatthepayment ofwages toSegen workers doesnot by stakeholder, aninternational therehave beendiscussionsandauditing working andlivingconditions. Forinstance, raised inrelationtoconcerns a widerrange ofworkers’ rightsissuesrelatedtowages, benefits, and mission, dialoguewithSegen therehasbeenfurther managers about Bisha campduringeachoftheHRIA’s fourmissionstoEritrea. each With There have beenauditingactivitiesatbothSegen andthe headquarters innationalservice. Section Five colleagues canquitifthey wantto. isincludedin information Further holidays andtake personalleave when they want;andthatthey andtheir at Segen voluntarily; thatthey areentitledtonationaland religious have andthatthey areworking been discharged fromnationalservice for automaticdischarge. withSegen workers Interviews thatthey confirm identification papersestablishthatheorsheisabove theestablishedage discharge certificate,appropriate nationalservice and/ortheemployee’s auditing activities. Ineachcase, theemployee filesreviewed containthe workers duringthese No evidence hasbeenobserved ofnationalservice • • • • • Segen includedthefollowing Construction activities: assessmentperiod,During thecurrent engagement andauditsrelatedto 2015 the HRIAassessorandBMSCHeadofHumanResourcesinMay attheSegenSite inspectionandworker camp atBishaby interviews BMSC HeadofHumanResourcesinMay 2015 auditatSegen in File headquarters Asmara by theHRIAassessorand Canadian non-resident 2015 Ambassador toEritreainJanuary Parliament’s HumanRightsandthe SubcommitteeonInternational oftheChairCanadian the HRIAassessorwithparticipation attheSegenSite inspectionandworker camp atBishaby interviews 2015 January auditatSegen in File headquarters Asmara by theHRIAassessorin Head ofHumanResourcesinOctober2014 auditsatSegen in File headquarters Asmara by Nevsun andBMSC 45 from therelevant responsibleforthecontractwork. departments was overseen by withcollaboration theHumanResources Department (in additiontoSegen and Construction Transhorn Trucking). This screening whose Eritreanworkers were screenedby BMSCduringtheauditperiod The following tableprovides abouttheothercontractors information discharge papersbeforethey willbeallowednational service onsite. and toensurethatnew contractors andsuppliersproducetherequisite innew contractswithEritreansubcontractors,against nationalservice developed forinclusionofcontractualprovisions relatedtotheprohibition thataStandardOperatingProcedurehasbeen it hasbeenconfirmed withmanagers responsibleforoverseeingFrom interviews procurement, the Voluntary PrinciplesonSecurityandHumanRights. rights issues, bytrainingandimplementation of canbesupported further discharge fromnationalservice, aswell asdialogueaboutotherhuman at Bishamustbeclearedfromnationalservice. Ongoing screeningfor Security contractcontainsclearstipulationsthatthesecurityguards which provides theprivate securityguardsattheBishaMine. The Binae engagement andauditingonhumanrightsisBinaeSecurity, thecompany Another Eritreancontractorthathasbeenprioritizedforongoing collaboration andmutualbenefits. dialogue withcontractorsandsupplierscangenerate for opportunities which operatesonthesameroads. This isapositive exampleofhow couldbeusedbymonitoring infrastructure BMSCforitslightvehicle fleet within which thedrivers areoperating. ItisalsopossiblethattheGPS fleet andthehours trucking which helpstomonitorthespeedoftrucks voluntarily implementedanew GPSmonitoringsystemfortheBisha this fatality, withtheobjective ofimproving roadsafety, Transhorn has this assessmentperiod. However, itisworthnotingthat, subsequentto Four asoneofthehumanrightsissuesthatemerged inthecourseof the year. detailinSection The issueofroadsafetyisexploredinfurther drivers afteranumberofaccidents, in includinganoff-sitefatalityearlier dialogue hasshiftedtoroadsafetyissueswithrespect Transhorn truck In themostrecentmeetingswith Transhorn managers, themainsubjectof totheBishaMine. services transportation workers inthe presence ofnationalservice Transhorn fleet which provides SGS Contractor Lilo Transport Solomon TesfaghergishElectronics TK Consultant (Back-hoe) Furtuna LongyearBoart BINAE SecurityContractor AREA InitialHRIA Report, p. 21. Technical Services Engineering and Administration Finance Environmental Exploration Exploration Security DEPARTMENT records relatedtodischarge fromnationalservice.” focal pointshouldtake aroleinongoing inspectionandmaintenanceof for engagement withsuppliers, contractorsandsubcontractors…. This asafocalpointwithclearresponsibility a positive stepandcanserve stated that “BMSC’s intentiontocreateaContractManager positionis due diligence inthesupplychain. Inthisregard, theinitial HRIAReport tocontributehumanrights apply contractualprovisions asnecessary subcontractors, andsuppliers, andwho would review contractsand responsible forconductingadditionalscreeningofnew contractors, in fillingaproposedpositionforContractManager who would be However, revealed thesesameinterviews thattherehave beendelays all workers attheBIshaMinearedischarged fromnationalservice. toensurethat the pressureonBMSCanditsEritrean businesspartners attentiontothisissueincreases Furthermore, thecontinuedinternational provisions, and screeningmechanismswithEritreansubcontractors. this prohibitionhasbeenreinforced by BMSC’s policies, contractual is prohibitedintheminingsectorand national service. Nationalservice and Construction Transhorn Trucking have beendischarged from in theassessmentperiodshow thatworkersinterviews fromSegen The resultsoftheongoing fileauditing, campinspections, and worker CONCLUSIONS resource records. suppliers, withrespecttocomputerdatabasesforhuman inparticular record-keeping systemsoftheEritrean contractors, subcontractors, and encouragement,further requirements, orincentives forstrengtheningthe An additionalconsiderationforongoing istoprovide auditingefforts expanded dialogueandtrainingforkey contractorsandsuppliers. a clearerbasisforongoing screeningandauditingactivities, aswell asfor compliance onaperiodicbasis. The code of conductwould alsoprovide whoto businesspartners would berequiredtosignadeclarationof subcontractors, andsuppliers. This codeofconductcouldbeprovided policies thatareintendedand/orrequiredtoapplycontractors, whichpartners consolidatesthecontractualprovisions andvarious is recommendedthatBMSCdevelop acodeofconductforbusiness to develop over aholisticapproachtoallbusinesspartners time, it appropriately screenedandauditedonhumanrightsmatters. However, at ensuringthatnew contractors, subcontractors, andsuppliersare oftheseproposalsareforward-lookingandaimed The mainthrust during futureauditingactivities. Procurement andHumanResources, aswell asby theassessmentteam to ongoing by screeningandauditingefforts relevant managers from by BMSClegal counselforcontractreview andtrainedtocontribute candidate proves difficulttofind, askilledEritreancanalsobesupported with experienceincontracts, labourlaw, andhumanrights. Ifanideal position would beanEritreannationalwithalegal background and should bemadetofillitassoonpossible. Theidealprofileforthis contractors, andsupplierswithrespecttohumanrights;additionalefforts step intheon-sitecoordinationofengagement withcontractors, sub- thispositionofContractManager next Filling remainsanimportant 45

29 SECTION THREE Implementation of HRIA recommendations 30 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 46 • grievance mechanisms attheBishaMineinclude: initiativesSome ofthecurrent tostrengthenawareness anduse of Nevsun’s annualCSRReports. ofthematerialityassessmentand datagatheringpart exercisefor attention togrievances isalsoanimportant andstakeholder concerns of Nevsun’s PresidentofCorporateSocialResponsibility.Vice Further through ongoing atsiteandby monthlyreporting way oftheengagement The coordinationofgrievance beingaddressed mechanismiscurrently mechanisms forcommunities). for workers) andCommunityRelations(responsiblefortheexternal mechanisms forHumanResources(responsibletheinternal particular grievances andinformal formal by therelevant atsite, departments in tothisrecommendation,Further therehasbeenongoing attentionto coordination requiresongoing efforts) Status –underway in2015;20%complete(withacknowledgment that NEVSUN SELF-ASSESSMENT tracking andreporting. BMSC identifytrends, adoptproactive approaches, andfacilitate coordination andrefinementbetween themechanismsshouldhelp to ensurethatthey arecredibleandmeetingtheirobjectives. Further promote thegrievance mechanismswiththeintendedstakeholders mechanisms arecoordinated. term, Intheshort itwould beusefulto appointing afocalpointtoensurethatthevarious grievance Inessence,Explanation intheinitialHRIAReport: thisinvolves implementation andcoordinationofallgrievance mechanisms Develop aframework and protocolstoensuretheeffective HRIA RECOMMENDATION #5 3.5 Bisha Mine’s supplychain. one optionforhaving acomprehensive approachtohumanrightsinthe which BMSC partners alignswiththeforthcoming Workers’ RightsPolicy is subcontractors. The development ofacodeconductforbusiness oftheauditinganddialoguewith conditions shouldalsobepart reports,on external otherissuesrelatedtohumanrightsandworking Rights. based willremainatop-of-mindconcern While nationalservice the implementationof Voluntary PrinciplesonBusinessandHuman training, of anddialoguewillbeinitiatedwithBinaeSecurityaspart should continuetobebroadened. Forinstance, screening, further On-going auditingactivitiesanddialoguewithbusinesspartners InitialHRIA Report, p. 47. aboutgrievanceAdditional information mechanisms canbefoundat pp. 38–40oftheinitial HRIAReport. improve ouroperations” “Speak up!Usethesemechanisms tohelpusresolve issuesand rights inductiontrainingwithencouragement fornew employees to Awareness-raising ofgrievance mechanismsincludedinthehuman 46 operations, andmake acommitmenttorespecthumanrights. community memberstobringgrievances forward, contributetoimproved should bepositive messagingandreinforcementtopromptworkers and addition tothedevelopment ofpromotionalmaterials(e.g., posters), there the promotionofgrievance mechanismsthroughout theworkforce. In CSRworkingThe cross-departmental group canplay aleadershiprolein trends, andpotentialsolutionsonaregularbasis. have grievances, a standingagenda andformal itemtodiscussinformal level. Inotherwords, CSRworking thecross-departmental group should to helpimplementtheNevsun HumanRightsPolicy attheoperational CSRworkinglinked withthecross-departmental group thatismandated grievance mechanismsatsitelevel, itissuggested thatthisshouldbe Given thatthisrecommendationisfocusedonthecoordinationof inthesectiononaccesstoremedy.further (and forothersubcontractors’ workers). These issuesarediscussed to pushforwardwithadedicatedgrievance mechanismforSegen workers offices. TheNCEW’s lackofongoing presenceatsitereinforcestheneed representatives arebasedatSegen’s andinregional NCEW headquarters that they donothave adedicatedrepresentative attheBishacamp;their Eritrean Workers withSegen workers Construction andinterviews show Furthermore, ongoing discussionswiththeNationalConfederationof managers orcommunityliaisonofficers, asthecasemay be. throughdialoguewithhumanresources majority ofissuesinformally to usethemifandwhen necessary. However, they generally resolve the they areaware oftherelevant mechanismsandthatthey areprepared assessment period, thereisconsistentandconvergent that information withworkers andcommunitymembersoverFrom interviews this grievance mechanismsandtheircoordinationatsite. acknowledges progress thatfurther needstobemadestrengthen In itsself-assessmentwithrespecttothisHRIArecommendation, Nevsun • • groups, and ensuring that there are no barriers to access. groups,access. to andensuring thattherearenobarriers grievances, promotionofthe relevant mechanisms fordifferentstakeholder resolutionof to ensurecoordinationatsite—including trackingofinformal areneeded period; thereisalsoanacknowledgment efforts thatfurther been ongoing attentiontothesegrievance mechanisms intheassessment contractors attheBishaMinecontinuetobeusedandrefined. Therehas variousThe grievance mechanismsthatapplytoworkers, communities, and CONCLUSIONS unionization oftheEritreanminingsector Transhorn Trucking), anddiscussionsaboutthepotentialbenefits of withcollectiveEritrean firms agreements (i.e., Segen and Construction about theirroleinproviding grievance mechanismsforworkers of Ongoing dialoguewiththeNationalConfederationofEritrean Workers Guiding Principles with therequirementsof2012IFCPerformance StandardsandUN communitycomplaintsmechanismsinline The updatingoftheformal

COMMUNITY FEEDBACK AS DISCLOSEDINCSRREPORTING STAKEHOLDER 2013 workers BMSC residents andformer on behalfofnineMogoraib Sub ZobaDighe Administration Community Akordat Stakeholder stakeholder village - Adarat Administration Community Adibrahim Stakeholder Two Mogoraib residents (group of3) from Akordat Villagers Akordat town residents 2014 ex-employee) fromMogoraib Community member(and GRIEVANCE/COMPLAINT laid-off withoutany tangiblereason written complaintthatnineworkers were Sub-Zoba Dighe Administration submitted city ofMassawa the roadfromBishaMinetoport on andcopperconcentratetrucks transport Speed anddustpollutioncausedby bus the villagers the villages among iscreatingdiscomfort Dust generated due toBMSCvehicles near more employment opportunities that othervillagesConcern were receiving sickness of6cows, with2fatalities contamination mighthave causedthe ofmining-related Claim thatsomesort advanced ages employment duetotheir opportunities restricted theseindividualsfrom An age range limitation(18-35years) dust speedandexcessiveConcentrate trucks diabetic condition Unfair dismissalduetoa HOW ADDRESSED ORRESOLVED them allon30/9/2014duetonew projectwork laid offduetotheendingoftheircontractperiod. However BMSCrehired The personnelwere casuallaborershiredforfixed, and terms were short community asadetour aroundthis A new roadforcommercialtrafficwasconstructed road to one further awayroad toonefurther fromthevillage The explorationteamwasimmediatelynotifiedandchanged theaccess of localemployment amongstallnearby opportunities villages closely withregionaladministrationandstepstaken toensureequality Local CLOprovided withenhancedtrainingforcommunicatingmore there arenodownstream impactsthatcouldaccount forany illness evident elsewhere. The cattlewere located7kmfromtheminesiteand toas referred “water disease”)iscommon atthetimeofyear andwas animal’s illnesswasnotcausedby themineactivities. The illness(locally The investigation confirmed, anditwaslateragreed by allparties, thatthe became well afterreceivingtreatment The letterstatedthat4cows were sickon21/3/2014butthey reported which describedthenumberofsickanimalsandtypetreatmentgiven. investigation. of letterwasreceivedA formal fromtheMinistry Agriculture of Ministry Agriculture invited SubZobaDighewasformally toconductan employment procedure and advised thecomplainantsthattherewould benoage restrictioninthe physical stamina, however BMSChumanresourcesremoved thislimitation labourcontractrequiredconsiderable The postingforthisparticular Built new roadtobypass thetown other healthconditionswhich couldcompromisehislife human resourcesandtheclinic. thattheemployee Itwasdetermined had An investigation andde-briefwiththeemployee wasconductedby BMSC 31 SECTION THREE Implementation of HRIA recommendations 32 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea COMMUNITY ASSISTANCE PROGRAM (CAP)PROJECTS 50 49 48 47 engagement aboutprojectsthroughdialogueandcollaboration. at thecommunitylevel, aswell astostrengthenstakeholder development andsupport for BMSCtoaddresshumanrightsconcerns Thisisastrategicmechanism Explanation intheinitialHRIAReport: Assistance Program Continue discussionsaboutimplementingtheCommunity HRIA RECOMMENDATION #6 3.6 approvals ofCAP projectsisbaseduponfactorssuchasalignmentwith needs andregionaldevelopment priorities. Fromacompany perspective, the pilotprojectshave beendiscussedandprioritizedbasedoncommunity that with community leadersandsub-zoba administrators confirm Interviews 2015 and2016($300,000USDintotal). $150,000 USDperyear hasbeenapproved by BMSCforCAPprojectsin two CAPpilotprojectstobelaunchedthisyear. Moreover, abudget of Environmental Department. There isnow agreement inprincipleabout community leaders, communityliaisonofficers, andmanagers fromBMSC’s held withENAMCO, localgovernment (zobaandsub-zoba) administrators, totherecommendationofHRIAreport,Further additionalmeetingswere the appropriateroleforacompany incommunitydevelopment projects. consensus between various levels ofgovernment withrespecttotheclarifying main challenges toinitiatingtheCommunity Assistance Planwastobuilda within themine’s environmental andsocialmanagement plans. Oneofthe are aware ofthecommitmentstocreateaCommunity Assistance Plan clear development needsinthesecommunitiesandcommunityleaders the expectationsoflocalcommunitiessituatednearmine. There are This recommendationwasmadetohelpensurethattheBishaMinefulfils requires ongoing efforts) 2016; 75%complete(withacknowledgment that implementation Status –ENAMCOBoardissupportive ofapilotCAPprogram in2015- NEVSUN SELF-ASSESSMENT: Tekeret watersupplyproject Aderat watersupply CAP PILOT PROJECTS Nevsun 2014CSRReport, p. 46. Initial HRIAreport, pp. 31-33. Nevsun 2014CSRReport, p. 46 Initial HRIAReport, p. 47. aboutgrievanceAdditional information mechanismscanbefoundatpp. 38–40oftheinitialHRIAReport. DEVELOPMENT IMPACT • • • • • • Improved localfoodsecurity Enhanced localagricultural productioncapabilities Repair awaterdiversion forpurposesofirrigation ofcropland improved waterqualityandquantity Improved accesstowater Drill new waterwells andprovide thewatertocommunity new pumpandpipestotransport 47

community perspective. prioritization ofwaterasahumanrightsissuefromanenvironmental and alsoalignswiththeHRIA’sfocus onirrigation andwatersupplyinfrastructure with communityneedsandpotentialforsignificantpositive impacts. The andMay 2015validatewith communityleadersinJanuary theiralignment 2015, tothetwo potentialprojectlocationsinJanuary andmeetings Visits 2015 willaddressirrigation andwatersupplyinfrastructure. The two pilotprojectswhich have beenidentifiedforimplementationin Community Investment. metrics containedwithintheLondonBenchmarkGroup’s Framework for andevaluatinghas committedtoreporting theCAPprojects basedonthe hascreatedanew socialmanagementDepartment planfortheCAP, and alongside miningprojectsinEritrea. Inthisregard, theEnvironmental this framework representsanew modelforcommunitydevelopment situated frameworkthe partnership forCAPprojectsright, given theextenttowhich communities toadvance quicklyontheseprojects, toget italsoisimportant While thereis, understandably, great interestalongwithsomepressurefrom results andpositive humanrightsimpacts. sustainability. Suchanapproachhasabetterchancetodeliver development leaders andsub-zobaadministrators, andwithaview totheirlong-term mannerwithsubstantialengagement withcommunity in aparticipatory priorities relatedtotheenvironment. The projectsarebeingdeveloped address communityneeds, regionaldevelopment plans, andhumanrights agreement inprincipletodevelop two CAPpilotprojectsin2015thatwill The dialoguebetween BMSCandEritreanstakeholders hasresultedinan CONCLUSIONS which by shouldbeborne thecommunitiesandsub-regionalgovernment. cost considerationsformaintenanceandrepairoftheCAPprojects—costs the projects, purchasingofequipment, andoutliningclearexpectations the proposedinfrastructure. Therefore, careisbeingtaken inthedesignof sustainable, fromtheperspective ofmaintaining andrepairing particularly Furthermore, thereisastrong preoccupationthattheCAPprojectsare project, aswell astheimpactoncommunityawhole. CAP objectives, communityproximitytotheBishaMine, sustainabilityofthe 50 49 IMPACT POTENTIAL HUMANRIGHTS • • • • • Right tohealth Right tofood Women’s rights Right tohealth Right towater 48

EMERGING HUMANRIGHTSISSUES FOUR SECTION 33 SECTION FOUR Emerging human rights issues 34 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 52 51 EXPLORATION OBJECTIVESFOR THE BISHAMINE2015 and increasedspendingonexplorationactivities. There have alsobeen years, includingthecreationofastand-aloneExplorationDepartment Additionally, therehasbeenincreasingfocusonexplorationinrecent next assessment. and assuranceswere provided thatthisissuewould be addressedinthe stakeholders madespecificinquiriesaboutexplorationactivities,external of theBishaMinewhich couldhave animpactonstakeholders. Moreover, and thereforerepresentsagap ofpotentialactivities inthefullspectrum In thefirstplace, explorationwasnotaddressedintheinitialHRIAReport This issueisbeingprioritizedforthefollowing reasons: and culturalrights Human rightsatrisk:landrights, economicrights, righttofood, EXPLORATION EMERGING ISSUE#1: 4.1 section. of thevarious andinterconnectedhumanrightsissuesthathave beenflagged inthis of eachissueareexplained, andcross-referencesareprovided discussion forfurther issues which were prioritizedduringtheauditperiod. The reasonsfortheprioritization The following sectionprovides anassessmentofnew oremerginghumanrights resources atHarena Expand andupgrade Ibid, slide14. Nevsun ExplorationPresentation(June2015), slide2, accessedat:www.nevsun.com/projects/exploration/ 1

targets atdepthand Drill highpriority on strikefrom Bisha Main 2 are outlinedinthegraphic below. deposits.” underexplored withpotentialforsignificantadditionaltonnage and “Exploration Presentation”)which states “the BishaDistrictremains at theBishaMine, includingarecentslideshow presentation(the website regarding containsdetailedinformation theexplorationprogram License; and(3)theMorograib River ExplorationLicense. The Nevsun licenses, namely:(1)theBishaMiningLicense;(2)Harena taking placeinthethreeareaswhere BMSChasminingorexploration By way ofbackground, theexplorationactivitiesatBishaMineare leaders, ofanactive andobservation drillingsiteneartheHarenapit. Environment Department, communityliaisonofficersand document review, withtheExplorationDepartment, the interviews the latestvisittoBishaMineinMay 2015. These activitiesincluded The mainassessmentactivitiesrelatedtoexplorationtookplaceduring operations andextendthelifeofmine. positive explorationresultsthatpotentiallycouldexpandtheBisha 51 The mainobjectives forBisha’s explorationprogram in2015 Continue testinghigh the MogoraibRiver exploration license priority targetson 3 52

ISSUES HUMAN RIGHTS EMERGING • • • programs onasuccess basis fund significantexploration Future: BMSCwillcontinueto drilling planned Approximately 35,000feetof from $10millionin2014 Budget of$15million, up ISSUES HUMAN RIGHTS EMERGING • • • • • activities areasfollows: The assessment’s findingsrelatedtotheBishaMine’s exploration agricultural orgrazing activities, andculturalheritage sites. relate toaccessland, resettlement, potentialdisturbancesoftraditional themselves. Typically, humanrightsrisksrelatedtoexplorationactivities of themine. However, thefocushereisonexplorationactivities the HRIA. They alsopushbackthepotentialimpactsrelatedtoclosure rights impactsrelatedtothemine’s activitiesasdiscussedthroughout extendsallpotentialpositivemine concurrently andnegative human From ahumanrightsperspective, thepotentialextensionoflife ultimate objective istoextendthelifeofmine. exploration activitiesareincreasing, resultshave beenpromising, andthe withmanagers intheExplorationDepartment,interviews arethat The key takeaways fromtheExplorationPresentation, fromthe apart 55 54 53 are trainedtofollow “chance find” procedures andareas,religious andsacredstructures andtheexplorationworkers the BMSCCodeofConductcontains provisions relatedtorespecting andtheEritreanNational Museum.of culturalartifacts Furthermore, these situationsshouldbehandled—includingwithrespecttotherole There areprovisions intheEritreanMiningCodethatregulatehow Exploration activitiescanhave impactsonaspectsofculturalheritage. applicable mitigation andremediationmeasures fromtheEnvironment identifyinganyobtained acertificate Department cannotbeginitsactivities untilithas The ExplorationDepartment be conductedandhow thesiteistoberemediateduponcompletion. they areabletoincludeconditionsabouthow drillingactivitieswill a riskassessmentofpotentialenvironmental andsocialimpacts; drilling commences. The environmental managers andstaffconduct Each drillingsiteisinspectedby theEnvironment before Department affected communities withtheseplanningdiscussions with theExplorationDepartment drilling activities. collaborates The CommunityRelations Department beforethecommencementof with assistancetocompletetheharvest agriculture. Insomecases, BMSChasprovided communitymembers has beencompletedbeforedrillingasectionoflandthatisusedfor schedule toaccommodatethesecommunitymembersuntilharvest flexibility hasbeenbuiltintotheannualplanningofexploration of BMSC). According tothe managers intheExplorationDepartment, crops withintheboundariesoflicensearea(withpermission whocommunity members—notablywiththosefarmers planttheir There issomeinteractionbetween theexplorationactivitiesand unpopulated locationswhere takingplace drillingiscurrently littletonolikelihood ofresettlementgivenThere isvery the ofthelicenses terms areas, andarethereforeregulatedby theEritreanMiningCodeand The explorationactivitiestake placewithinthemine’s threelicenses procedures if chancefindsareencountered.” and practicesofthelocal population-Donotdisturbshrinesandotherreligious monuments-Recognisethatshrinesand sacredsitesmay includetrees, sheds, piles ofpebbles, andpiles ofofferings-Follow The provisions oftheBMSCCodeConduct arereproducedonp. 12oftheinitialHRIAReport, includingthefollowing: -Respectthereligious shrines andburialsites “Religious andSacredStructures/Areas: For moreinformation, see Nevsun’s 2014CSRReport, p. 45 Proclamation (indraftas of2011) Proclamation toPromotetheDevelopment ofMineralResourcesNo. 68(1995);Legal NoticeNo. 19/1995–RegulationonMiningOperations;MaterialCulturalHeritage ProtectionandConservation 53 54

55

• • families ofthedeceased. and wasbasedontheagreement ofthelocalcommunitiesand in2014thatfollowed theseprocedures,relocation ofasmallcemetery authorities—including theImpactReview Committee. There wasa of localcommunities, and theoversight ofnational, regional, andlocal sacred sites, andany relocationrequirestheconsultationandconsent or ofculturalartifacts are strictproceduresrelatedtothediscovery andharvesting. accommodate traditionallanduseforfarming There organize theirdrillingcampaignsonaseasonalbasisinorderto activities provides withtheflexibilityto theExplorationDepartment members. Inparticular, exploration planning thatunderlies thelong-term and avoids negative impactson—thehumanrightsoflocalcommunity planned andexecutedinaresponsiblemannerthatissensitive to— Exploration activitiesconductedaroundtheBishaMinearebeing CONCLUSIONS training isdelivered thisfall include key when personnelfromtheExplorationDepartment the on SecurityandHumanRights;and, therefore, itwould beusefulto traininginitiativethrough thecurrent relatedtothe Voluntary Principles exploration activities. These aretopics thatwillbecovered indetail Eritrean securityforcesareadvised ofthetimingandscopeplanned be usefultoreinforcecommunicationsprotocolsensurethatthe additional interactionwiththeEritreansecurityforces;therefore, itmay in thepast, increaseinexplorationactivitiesmay thecurrent leadto While therehave beennoissuesassociatedwiththeseencounters Eritrean securityforceswho themine. patrolintheareasurrounding subcontractors, thereareoccasionalencounterswithmembersofthe and drilling withmembersoftheExplorationDepartment In interviews Eritrean NationalMuseum and (b)theoversight ofrelevant government authorities—includingthe agreement ofthefamilies, communityleaders, andreligiousleaders; in thepast, tohave andeachisreported beendonewith(a)the heritage orsacredsites. There have beenthreeothersuchrelocations that thisisthe “standard” procedureforotherrelocationsofcultural Review CommitteeandtheEnvironment Department, itwasconfirmed expenses assumedby withtheImpact BMSC. interviews Infurther the completionofaseriesreligiousceremonies, withalltherelated toberelocatedupon community andfamilymembersforthecemetery regional, andlocalauthorities. Agreement wasreachedwiththe religious leaders, andfamiliesofthedeceased, aswell asnational, explained. The processinvolved numerousmeetingswithculturaland Department, theconsultationprocessthatprecededrelocationwas managers fromtheEnvironment andCommunityRelations Department withtheImpactReview Committee,interviews communityleaders, and In 2014, therewasaneedtomove asmallcemetery. Through 35 SECTION FOUR Emerging human rights issues 36 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea which canhave inturn animpactonhow effectively various policiesand localization objectives andthestabilityofBishaMine’s labourforce— mines operatinginremotelocations, itcouldposeathreattothe While theturnover rateisnotnecessarilyunusualcomparedtoother workers thanmaleworkers. KEY THEMES AND CONSIDERATIONSSTAFF ABOUTKEY THEMESAND TURNOVER dismissed in2014; 2014 vs. 13%in2013), foratotal of 224workers who resignedorwere BMSC management andworkers. Staffturnover increasedby 5%(18%in as ontheincreasedattentionthatissueofturnover isbeinggiven by increase instaffturnover ofbothEritreanandexpatriateworkers, aswell The issueofstaffturnover hasbeenprioritizedonthebasisofastatistical security, andfreedomofassociation/collective bargaining, etc. right tojustandfavourable working conditions, righttosocial Human rightsatrisk:righttosafeandhealthy working conditions, INCREASE INSTAFF TURNOVER EMERGING ISSUE#2 4.2 ongoing humanrightsduediligence inotherareas. for collaborationthatisnecessary of thetypecross-departmental ofexplorationactivities.mine areinformed This provides agood example sothatEritreansecurityforcespatrollinginthevicinityof Department communication between andtheSecurity ExplorationDepartment impact ontraditionalactivities). tocoordinate Furthermore, itisimportant and membersonhow toorganize explorationactivitieswithaminimum (fordialoguewithcommunityleaders Community RelationsDepartment environmental andsocialmitigation andremediationplans), andonthe collaboration withtheEnvironment (forsiteinspections, Department and depends, tosomeextent, coordinationand oncross-departmental Human rightsduediligence oftheExplorationDepartment onthepart 56 KEY THEMES AND CONSIDERATIONS KEY THEMESAND • • • Isolation oftheBishaMine 2014 compared to157individualsin 2013. Bygender, thisfigurerepresents 16%formaleemployees and26%forfemale employees.” As statedinNevsun’s atp. 2014 CSR Report 25, “the BishaMinecontinues toexperienceahighturnover rateforitsworkforce, approximately 18%in2014(2013–13%)which equatesto 224individualsin workers willbeisolatedfromtheirfamilies for miningoperations, sotherearelimitedoptionsforaddressing thefactthat The mine’s locationisgeographically fixed, androtationalshift work isthenorm extended familypresentadditionalpressures For Eritreanworkers, headsofhouseholds, particularly culturalobligations to Challenge forworkers tobeaway fromtheirfamiliesforlongperiodsoftime 56 turnover wasapproximately10%higherforfemale IMPLICATIONS AND POTENTIAL IMPACTS ONHUMANRIGHTS • • • elaborated intherelevant ofthereport. subsectionsofSectionFive and potentialimpactsonhumanrightsarealsohighlightedfurther about staffturnover aresummarizedinthetablebelow. The implications The key themesandconsiderationsthatemerged fromtheinterviews HRIA audit. depth assessmentofany potentialhumanrightsissuesduringafuture issues. This willhelpprovide foramorein- moredetailedinformation studyBMSC hasinitiatedaformal aboutstaffturnover andsatisfaction at thetimeofwriting, thatthe theassessmentteamhasbeeninformed investigationof potentialissuesforfurther andanalysis. Inthisregard, Therefore, list theissuesidentifiedbelow areintendedasapreliminary been given astowhy workers arechoosingtoleave theBishaMine. In theseinterviews, awide variety ofhypotheses andanecdoteshave camp—including duringthenightshift. employees duringinspectionsofvarious oftheminingoperationand parts Confederation ofEritrean Workers, aswell conversations asinformal with workers, withtheImpactReview CommitteeandtheNational interviews with humanresourcemanagers, focusgroups withmaleandfemale The mainassessmentactivitiesrelatedtostaffturnover involved interviews Bisha Minetobeanemployer ofchoice. the BMSCBoardandmanagement torespectworkers’ rightsandforthe emerging issuescanbeconsideredandprioritizedinongoing attemptsby impacts onhumanrightsifthey arenotaddressed. Bysodoing, these seekstolinkthemainreasonsgivenreport forstaffturnover withpotential discriminatory, unfair, orleftunaddressed. Therefore, thissectionofthe issues canescalateintohumanrightsifthey are systematic, issues arehumanrightsissues. Rather, sometypicalhumanresources thefactthatnotallhumanresources tounderline It isimportant favourableuniformly responses. satisfaction, given withworkers thatprevious elicitedmore interviews procedures areimplemented. Italsoraisessomequestionsaboutjob Further discussioninsectiononhours,Further wages, benefitsandholidays standards international Need toensurethatrotationalshiftsaredesignedinaccordancewith rest andleisure other humanrightssuchastherighttoafamilylifeandadequate Work-life balanceissue;relatedtojustandfavourable working conditions, and 57 • • • Competition fromothermines CONSIDERATIONS KEY THEMESAND • • • Higher ratesofturnover forwomen • • • • Dismissal ofemployees • • • • Wages paidtoEritreanworkers provides tolive closetohome may working attractthosecurrently theBishaMine, given it theopportunity A key formanagement concern isabouttheforthcoming Asmara Mine, which at theBishaMine Bisha; however, tobelessattractive thelivingconditionsarereported than those Based onanecdotalevidence, thewages atZaraarecomparabletothose Some workers have already lefttheBishaMinetogo totheZaraMine advancement tosupport highly motivated training opportunities andtendtoseekfurther Women who advance intonon-traditionaljobs(e.g., drivers) truck are frequently citedasthereasonfordeparture The challenges forfemaleemployees tobalancework-family obligations ismost leavefrom maternity in2014than2013 leave,Not necessarilyrelatedtomaternity asmorewomen totheirjobs returned coming years fromademographic standpoint workforce—so theissueof(lackof)retirementbenefitswilllikely emerge inthe older age, ofolderEritrean thereisasignificantportion workers intheBisha Since many Eritreanshave atan been discharged fromnationalservice have adequateretirementsavings orbenefits fit fortasks;however, thereisreluctance todismissthembecausethey donot retirementage,Since thereisnostatutory employees elderly may nolonger be Proclamation Severance packages areprovided asrequiredby theEritreanLabour related issues appropriate procedureshave notbeenfollowed fordismissalsperformance No indicationthatemployees have beenwrongfullydismissed, orthatthe benchmarks forwages The absenceofwage inEritreamakes itdifficulttoestablish information companies andbusinessin Asmara. the country, forworkers butthereareotheropportunities withothermining Wages competitive tobeamongst thehighestin andreported arestillvery once regularhouseholdexpensesarepaid that theirwagesreport arestillattractive, they have lessmoney thanbefore, Rising costoflivingin Asmara makes itdifficulttosave money; while workers workers andexpatriates scalesbetween andbetween differentdepartments local Discrepancies insalary maternity leavesmaternity backtotheirpost).” in2013 with5returning See Nevsun 2014CSRReport, p. 26: “We alsohad24employees leave onmaternity forpersonalreasons(comparedto13 in2014 of which backtothepost andthreedecidednottoreturn 21returned 57 • • • • IMPLICATIONS AND POTENTIAL IMPACTS ONHUMANRIGHTS • • • • • • • • • on nationalservice onhours, discussioninSectionFive Further wages, benefitsandholidays and in theminingsector program sothatmoredischarged workersnational service areeligibletowork The development oftheotherminesputs collective pressureonlimitingthe movement that Bisharemainsanemployer ofchoice ratherthanonrestrictingworker Strategies tocounteractthiscompetitionshouldbebasedonensuring mines, suggests thatthereisnoforcedlabourintheEritreanminingsector Competition fromothermines, movement andvoluntary ofworkers between Further discussion in Section Five onnon-discrimination discussionin SectionFive Further Bisha Minemoreattractive towomen initiatives (e.g., oftrainingandleisureoptions)inordertomake the interms workers have higherturnover ratesthanmaleworkers, andtoconsiderspecial There isaneedtopay attentiontotrackingthereasonsthatfemale particular such astheBishaMine to attract, promote, atanisolatedsite andretainqualified women—particularly Globally, miningisamale-dominatedindustry, arerequired andspecialefforts the sectiononnondiscrimination onhours, discussionin SectionFive Further wages, benefitsandholidays and the availability ofpublichealthandothersocialservices there isaneedtoreview theadequacyof company-funded benefitsalongwith benefitsfor Eritrean workers, theimpactsofdismissalarepotentiallysevere, so Given thepaucityofgovernment-funded socialsecurityandretirement unsatisfactory, dismissalproceduresmustbefairandnon-discriminatory While therighttowork doesnotguaranteeworkers is ajobiftheirperformance onhours, discussioninSectionFive Further wages, benefitsandholidays the BMSCBoard isolation bonushasbeenproposedby to theHumanResourcesDepartment Need toensurethatwages arecompetitive andprovide alivingwage; an favourable working conditions, andtherighttoanadequatestandardofliving human rightsperspective relatetonon-discrimination, therighttojustand While itiscommonforworkers towantadditionalpay, thekey issuesfroma 37 SECTION FOUR Emerging human rights issues 38 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea mechanisms that help address concerns moreproactivelymechanisms thathelpaddressconcerns and the BishaMineworkforce. Therefore, tostrengthen itisalsoimportant isoften toolatetokeepdeparted, theseworkers anexitinterview in While itisusefultounderstandthereasonsthatworkers have voluntarily rights issues. related toworker turnover oftheassessmentvarious aspart labour The follow-up totheHRIAprocessshouldcontinuemonitorany trends proactivesupport management initiatives andhumanrightsduediligence. confidential manner, andthattheresultsareaggregated andanalyzedto areconductedinasystematic, exitinterviews safe,that formal and from theBishaMine. shouldensure The HumanResourcesDepartment There isaneedtomorefullytrackthereasonsthatworkers aredeparting Eritrean Workers. Committee, andotherstakeholders suchastheNational Confederationof and thereforerequireongoing discussionsENAMCO, theImpactReview identified previously have implicationsforthe mining sectorasa whole, pay and benefitsforBMSC’s Eritrean workers. Someoftheotherissues has broughtrecentproposalstotheBMSCBoardwithrespect can controldirectly. Inparticular, theHumanResourcesDepartment toproactivelyand areexpendingeffort addressthoseissuesthatBMSC BMSC managers demonstrateahighdegree ofawareness oftheseissues • • • • to thefollowing: in staffturnover, thepriorityissuesfromahumanrightsperspective relate Of thevarious toaddressincreases themesthatemerged frominterviews challenging over thelongterm. and withpersonalendeavours—which particularly makes retentionefforts isolated mineisademandingjobthatrequirescompromises—withfamily development, andadvancement. However, therealityisthatworking inan to wages, working conditions, training, forprofessional opportunities high degree ofsatisfactionamong workers attheBishaMinewithrespect thatthereremainsa conducted duringtheassessmentperiodconfirmed nottooverstateIt isimportant theissueof staffturnover, astheinterviews CONCLUSIONS 59 58 are gaining additionalresponsibilitiesattheBishaMine employees toensurethatthey areincreasinginnumber, andthatthey andneedsoffemale Giving appropriateattentiontotheconcerns future forreasonsofage therequiredtasks andinabilitytoperform workers forelderly whoparticularly may needtobedismissedinthe Ensuring theadequacyofbenefitsfor workers who aredismissed— cost oflivingcontinuestorise Eritrean workers over timeasotherminesenterintoproductionandthe Ensuring theadequacy, fairness, andcompetitiveness ofwages for balancebetween work andfamilylife maintain asatisfactory Addressing thechallenges ofrotationalshiftwork sothatworkers section onenvironment (water)andinthe relevant sections onstakeholder engagement. and operationsoftheBisha Mine(i.e. conflict; landaccess, use andacquisition;in-migration; environment; safetyandsecurity;and, mining). artisanal discussionsofchildren’s Further rightsareincludedin potential adverse impactsofminingonchildren’s rightsthatareidentifiedinUNICEF’s “Children’s UNICEFExtractive Pilot” RightsandtheMiningSector: (April2015)aremuchless likely given thelocation Based ontheHRIAassessment activitiesofthepast2years, theroadsafetyissue istheareawhere theBishaMine’s operations have themostlikely andpotentiallysever impactsonchildren. The other Initial HRIAReport, p. 23. and communitymembers. Given thefocuson Transhorn’s fleetofheavy which todiminishcontactbetween has beenconstructed theBishafleet and villages wasalsoobserved, of thebypass alongwithobservations roads between Massawa, Asmara, andBisha. Truck trafficontheroad Assessment activitiesrelatedtoroadsafetyinvolved ofthe observation an increaseinmaintenanceefforts. route fromBishato Asmara andMassawa continuetodeterioratewithout of roadaccidentswilllikely increase ifroadsandbridges alongthemain are requiredtokeep themineeconomically viable. Furthermore, therisk transitions intothezincphase, ashigherquantitiesofzincconcentrate to theBishaMine. Heavy trafficwilllikely increase truck when themine oftheroadfrom the Massawa ontheportion Port—particularly Asmara fleet ofheavy haulingcopperconcentratefromtheBishaMineto trucks In addition, therehasbeenasignificantincreaseinroadtrafficwith ROAD SAFETY EMERGING ISSUE#3 4.3 indication thatworkers arevoluntarily employed andcanfreelyquit. of forcedlabourattheBishaMine, staffturnover provides animportant andallegations given attentiontotheissueofnationalservice theexternal As afinalreflectionontheissueofstaffturnover, itisnotingthat worth to working conditions. feedbackthatmanagersinformal arereceivingfromworkers withrespect Group canalsoprovide anongoing todiscussandconsolidatethe forum reduce staffturnover. CSR The proposedcross-departmental Working inareal-timemannerandtherebyconcerns increasesatisfactionand systemwhich warning wouldan early allow management toaddress grievanceinternal mechanismforworkers—for itsabilitytofunctionas systematically. Inparticular, additionalattentionshouldbegiven tothe This issuewaspreviously discussedintheinitialHRIAReport children’s rights. right tolifeandsecurityoftheperson, righttohealth, and Human rightsatrisk:righttosafeandhealthy working conditions, the BishaMine. children’s isthemostimportant initial HRIAReport—and rightsissuefor tothepublicationof was highlightedindialoguewithUNICEFfurther that thepotentialimpactsonchildren’s rightsinrelationtoroadsafety impacts tohumanrightswhen roadaccidentsoccur. Itisworthnoting June 2014, which focusedattentiononthepotentialseverity ofnegative In thefirstplace, therewasonefatalityinthe Transhorn fleetin Trucking prioritized intheassessmentperiodforanumberofreasons. 59

58 , butitwas 62 61 60 BISHA MINE NEW GPSSYSTEMON TRANSHORN TRUCKS USEDFOR THE route. the transportation involved alongallofthe350kilometres settingupGPSinfrastructure noteworthyparticularly given thatitisacostlyandcomplexsolution that hours thatdrivers work inanattempttolimitfatigue. The GPSsystemis regulations (setfordifferentstretchesoftheroad), andmonitorsthe traffic,monitoring oftruck speed promotescompliancewithinternal new initiative.is animportant This GPSsystemfacilitatestheconstant their plantoextendthesystemrestof Transhorn’s non-Bishafleet— Transhorn’s fleet—and installationofanew GPSsystem onitsBishatruck does notappeartodomuchintheway ofmonitoringspeedmonitoring. as themine, port, anddepot. Furthermore, theEritreanpoliceforce fleetoutsideofdesignated BMSC) tomonitorthetruck work areas, such However, ithasalways beendifficultfor managementTranshorn (and emphasis onputtingroadsafetypoliciesandregulationsinplace. Subsequent tothefatality, therehasnaturallybeenanincreased the familyby Transhorn anditsworkers. collective agreement, withadditionalvoluntarily contributionsprovided to family have ofthe beenpaidaccordingtotheterms reportedly Transhorn cause oftheaccident. The driver’s funeralexpensesandbenefitsforthe the policeandcompany. Fatigue wasidentifiedasthemostlikely According to Transhorn managers, theaccidentwasinvestigated by both ontheroadbetweenoccurred Massawa and Asmara onJune24, 2014. respecttothefatalitywithin With Transhorn fleet, theaccident beinginstalledforthe GPS systemcurrently Transhorn fleet. truck to understandthespecifications, operations, andeffectiveness ofthenew also conductedwith Transhorn inorder andtheBMSCSafetyDepartment depot. andtruck wereheadquarters Follow-up inspectionsandinterviews andinspectionsweretrucks, conductedatthe interviews Transhorn • • • • • • Nonetheless, follow-up inquiriesshouldbemadetoverify this, includingwiththedriver’s family. This willbeincludedinthework planforany follow-up assessmentactivities. by Transhorn. revealedwith According toinformation ininterviews Transhorn managers, Total (the multinationaloilcompany) operated isin theprocessofinstallingitsown foritsfleetofoiltanker trucks monitoringterminals report-on-road-safety-in-countries-of-the-who-african-region.html. World HealthOrganization, “Road Safetyinthe WHO African Region-theFacts 2013,” accessedat:www.afro.who.int/en/clusters-a-programmes/dpc/mental-health-violence-and-injuries/features/2846-status- secondary monitoring secondary couldbeinstalledelsewhereAdditional computerterminals for manager/monitor cancontactthedriver by radio truck’s speed, deviation fromtheroute, etc., inwhich casethe Notifications appearinred abouta when thereisawarning radio communications, andnotificationsforeachtruck The computerlogsandarchives thespeed, hoursofoperations, onaGPSmap the locationofeachtruck Computers attheBMSCdepotallow managers/monitors toview GPS transmittershave beeninstalledthroughouttheBishafleet routefromtheBishaMinetoMassawatrucking port (satellitetowers)GPS infrastructure hasbeeninstalledalongthe company toconductitsown monitoringactivitiesonthe Transhorn fleet. of BMSC, having fortheGPSsystemwould the aremoteterminal permit potential tostrengthenroadsafetyinitsBishafleet. Fromtheperspective In particular, Transhorn’s initiative toinstallaGPSsystemhasstrong possible. safety andprevent futureaccidents, injuries, andfatalitiestotheextent tochangedemonstrable efforts itsmanagement systemstoenhanceroad provided tothedeceaseddriver’s family. ofbenefitsandcompensation indicate anappropriateresponseinterms fatality,to thisparticular with initialinterviews Transhorn managers impactontherighttolife.A fatalityhasanirremediable respect With causes ofdeathin Africa. issueglobally,important andthattrafficaccidentsareoneoftheleading Massawa highlights. Inthisregard, itisworthnoting thatroadsafetyisan accidents have potentiallysevere impacts—asthefatalityonroadto will likely beminorandnotresultinhumanrightsimpacts, some riskofroadaccidents.Bisha Minebringsacertain While mostaccidents andshippingmaterialstofromthe road trafficfortransportation issuebecausethehighvolumeRoad safetywillremainaimportant of CONCLUSIONS mutually beneficiallysolutionstochallengingoperationalissues. contractors canleadtoexpandedhumanrightsduediligence and and itwould provide aninterestingexampleofhow dialoguewithEritrean the humanrightsrisksrelatedtoroadsafetyinBMSC’s directoperations, vehicles thatleave theminesite. This development couldhelpaddress with aview toinstalling GPStransmittersontheBMSCfleetandlight In addition, BMSCcanlikely negotiate accesstotheGPSinfrastructure 60 61 Equally important is Equallyimportant Transhorn’s 62

39 SECTION FOUR Emerging human rights issues 40 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea VOLUNTARY PRINCIPLESIMPLEMENTATION AND TRAINING INITIATIVE Report, Although securityandhumanrightswere discussedintheinitialHRIA SECURITY AND HUMANRIGHTS EMERGING ISSUE#4 4.4 framing andevaluating thecurrent Voluntary Principlesinitiative atsite. Voluntary Principles, adocumentwhich provides anew andusefultoolfor recently publishedaguidancedocumentforauditingimplementationofthe instance, theUNGlobalCompactNetwork forCanadadeveloped and Canada andvarious stakeholders intheCanadianminingindustry. For been specificattentiontothe Principles by theGovernment of Voluntary operations.in theirinternational Duringtheassessment period, therehas Canadian miningcompaniesareexpectedtoimplementwhere applicable Extractive Sector Abroad, ofthepolicyframework andarethereforepart that in theGovernment ofCanada’s fortheCanadian EnhancedCSRStrategy The standardsincluded Voluntary Principlesarealsoonetheinternational Bisha Mine(describedinthetablebelow). Principles traininginitiative hasbeenlaunched—andisongoing—at the of Eritrea andtheHorn Africa region. tothis, Further aspecific Voluntary departments, HRIA recommendationaboutspecializedhumanrightstrainingforkey Voluntary Principles. Inpart, thisisaresultofthefollow-up totheinitial and securitymanagers capacityrelatedtothe atsitetobuildfurther There hasbeensignificantattentionandmotivation fromNevsun Security andHumanRights. a numberoffactorswhich coalescedaroundthe Voluntary Principleson political rights. person; righttosafeandhealthy working conditions, andcivil 67 66 65 64 63 Human rightsatrisk:righttolife, liberty, andsecurityof the • • • • • Nevsun PressReleaseofMarch 22, 2015:www.nevsun.com/news/2015/march22. in 2016. party Given thiscollaborationbetween theHRIAand Voluntary Principlesinitiative, tonotethatanevaluation/audit itisimportant of Voluntary Principles implementationwillbeconductedby anindependent3rd Assess Implementationof the Voluntary PrinciplesonSecurityandHumanRights, May 2015, accessed at:www.globalcompact.ca/resources UN GlobalCompactNetwork CanadaandBusinessforPeace, Auditing Implementationof Voluntary PrinciplesonSecurityandHumanRights: A GuidanceDocumentto Assist Companiesandtheir Auditors point forexplicitandoperationaldiscussionsabout humanrightsforanextractive company. Initially, wasidentifiedforspecialized trainingsincetheBMSCSecurity thesecuritydepartment Policy containsanexplicitreferencetothe Principles—theinclusionof which istypicallya Voluntary good entry- Initial HRIAReport, pp. 36-37. conducted in early 2016 conducted inearly auditof 3rd party Voluntary Principlesimplementation—tobe conducted inNovember 2015 oftrainingto BMSCmanagers andsecurityguards—tobe Delivery procedures—to beconductedinSeptember2015 Workshops to update riskassessmentsandstandardoperating oftrainingin Novemberdelivery 2015 Principles andrelevant SOPs—ongoing, tobecompletedprior training moduleonhumanrights, andthree-day trainingon Voluntary Development ofadvanced training package, includingtwo-day Needs assessment—completedinMay 2015 63 this issue was prioritized during the assessment period due to thisissuewasprioritizedduringtheassessmentperioddueto 64 and in part to update the assessment of security risks in toupdatetheassessmentofsecurityrisksin andinpart 65

Nevsun withrespecttoany futuremine acquisitionsinhigh-riskcontexts. Principles trainingandimplementationinitiative canalsobeappliedby mining sector. fromthis Furthermore, theoutputsandlearning Voluntary and otherminingcompaniesaboutsecurityhumanrightsinthe departments, andforfuturedialoguewiththeGovernment ofEritrea model andmaterialsthatcanbeusedforhumanrightstraininginother focus onadvanced humanrightstrainingforsecurityguardsprovides a As discussedintheprevious sectiononhumanrightstraining, the contractors, andpublic sectorstakeholders withrelatedfunctions. withothermanagers,guidance fortheBMSCSecurityDepartment—along diligence, while the Voluntary Principlescanprovide practicaloperational Human Rightsshouldframetheoverall approachtohumanrightsdue the broaderframework oftheUNGuidingPrinciplesonBusiness and attheBishaMine.of thebroaderhumanrightsstrategy Inotherwords, to ensurethatthe Voluntary Principlesarecontextualizedasonepiece commitments, andstakeholder expectations. However, itisimportant is strategicasastand-aloneinitiative toaddresspotentialrisks, policy impacts canbesevere. Therefore, thenew Voluntary Principlesinitiative While securityrisksmay below, theirpotential human rightsandbusiness assessment period, aboutwhich thereisanongoing investigation. the mine’s permission). actofvandalismThere wasonereported duringthe who fromlocalherdersandfarmers accesstheirtraditionallandswith (apart encroachmentsofciviliansintothemine’sbeen noreported perimeter phases. Inaddition, mininginEritreaandtherehave thereis no artisanal likely diminishingafterthetransitionfromgold tothecopperandzinc Furthermore, thesecurity riskprofileofthemine, when itcomestotheft, is checkpoints atthemine’s entranceandontheroadto Asmara). outside theperimeterofmine, andwithwhom thereisinteractionat interaction withtheEritreansecurityforces(who arestationedunobtrusively relationship withitsworkforce. The minealsobenefitsfromstable, routine peaceful relationshipswithnearby communities, andaharmonious at theBishaMine. The minehasbenefitedfromanisolatedlocation, To datetherehave beenminimalrisksrelatedtosecurityandhumanrights CONCLUSIONS the BishaMineinMay 2015. audit activitieswitha Voluntary Principlesneedsassessmentconductedat training activities. This processalsoincludedcoordinationofsomethe integrated approachtostakeholder engagement, riskassessment, and ensure alignmentwiththeoverall 2015HRIA Audit, andtofacilitatean initiative attheBishaMinesite. The purposeofthiscoordinationisto whowith aCanadiansecurityexpert isleadingthe Voluntary Principles oftheassessmentactivities,In terms therehasbeenclosecollaboration 66 67

ISSUES UPDATED FINDINGSONHUMANRIGHTS

FIVE SECTION 41 SECTION FIVE Updated findings on human rights issues 42 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • manner: a discussionofonethesehumanrightsissueandispresentedinthefollowing human rightsissuesthatarerelevant totheBishaMine. Eachsub-sectioncontains The following sectionpresentstheconsolidatedfindingsonacomprehensive series of • • Conclusions ofinitialHRIAReport 5.1.1 NATIONAL SERVICE CONDITIONS RIGHTS ANDWORKING LABOUR 5.1 toavoid duplication. necessary issues inprevious sectionsofthereport. They willbecross-referencedas There have beensubstantive discussionsofsome ofthesehumanrights 68 serve to identify opportunities toengage toidentifyopportunities withnewserve suppliers Binae Security, andBMSC’s procurementpolicyandproceduresshould be maintainedwithSegen Construction, Transhorn Transportation and and subcontractorsattheBishaMine, ongoing engagement should continued. Basedonareview ofthevarious suppliers, contractors attheBishaMine,are notpermitted shouldbe andtheseefforts workers stakeholders thatnationalservice andexternal internal BMSC’s arecontributingtoanexpandingawareness efforts amongst Transhorn Transportation andBinaeSecurity contractors suchas been implementedwithrespecttootherimportant were firstdeveloped withrespecttoSegen andhave Construction also workers attheBishaMine. The dialogueandscreeningprocedures subcontractors toimplementtheprohibitionagainst nationalservice dialogue withthemanagement ofitsmainsuppliers, contractorsand Since 2009, BMSChas implementedscreeningproceduresand See initialHRIA Report, pp. 20-21 updates thatwere notedintheauditperiod tableofrelevant standardsisincluded,A summary localandinternational highlightingany The updatedfindingsandconclusionsfromthe2015 Audit arepresented arecross-referenced initial report arereproducedandtherelevantThe conclusionsoftheinitialHRIAReport sectionsofthe 68 • 2015 Audit Findings • • • mine’s development phaseofthe attheBishaMineduringconstruction Construction workersallegations by withrespecttotheuseofnationalservice Segen ofJune2015, report in theUNCommissionofInquiry’s includingspecific human rightssituationinEritrea. isconsideredindetail Nationalservice regarding reports the remainsafocus issueinexternal National service related todischarge fromnationalservice should take aroleinongoing inspectionandmaintenanceofrecords managementconstruction (ECPM)contractor, SENET. This focalpoint including forcoordinationwithBMSC’s engineering, procurementand for engagement withsuppliers, contractorsandsubcontractors, asafocalpointwithclearresponsibility positive stepandcanserve BMSC’s intentiontocreateaContractManager positionisa Bisha mine’s supplychain more comprehensive forhumanrightsduediligence strategy inthe fora workers representsaconstructive entry-point national service The engagement withsuppliers, contractorsandsubcontractorsabout local workers contractor orsubcontractorwillinvolve theprovision ofnationaland whennew contractsare negotiated supplier, andsigned—particularly toaddsimilarprovisionsattention shouldbepaidtoopportunities as procedures forsuppliers, contractorsandsubcontractors. Ongoing subcontractors. These provisions reinforcethedialogueandscreening employees appearinthemaincontractswithBMSC’s contractorsand Contractual provisions prohibitingtheuseofnationalservice ISSUES HUMAN RIGHTS FINDINGS ON UPDATED ISSUES HUMAN RIGHTS FINDINGS ON UPDATED • • • • • • • 70 69 the Bishamine” present, orwillbeusedinthefuture, by state-owned subcontractorsat reasons, “that itishighlyunlikely thatforcedlabourisbeingusedat Subcommittee onMarch12, 2015, heopinedthat, foravariety of 2015.at theBishaMineinJanuary Insubsequenttestimony tothe auditactivitiesattheSegen incertain camp Human Rightsparticipated The ChairoftheParliament ofCanada’s SubcommitteeonInternational workers attheBishaMine national service Eritrean suppliersandcontractorstocomplywiththeprohibitionagainst a strongincentive forSegen Construction, Transhorn Trucking andother attention thatthisissuehasreceived—and continuestoreceive—provides Mine have arebeingenforced. beendischarged fromnationalservice The in placetoensurethatcontractorandsubcontractorworkers attheBisha Departments. Fromallindications, thescreeningprocedureswhich are well astheBMSCmanagers intheHumanResourcesandProcurement discussions withmanagers atSegen Construction, Transhorn Trucking, as Mine. Auditing activitiesincludedfileinspections, worker interviews, and have uncovered workers noevidence attheBisha ofnationalservice The HRIAauditingactivitiesatSegen and Construction Transhorn Trucking human trafficking, detention, anddrowning Mediterranean, includingstoriesabouthumanrightsimpactsrelatedto aboutmigration inreports ofEritreanstoEuropeacrossthe particularly mediaattentionfocusedonnationalservice, There hasbeeninternational and slavery the lawsuit inBritishColumbiawhich includesallegations offorcedlabour issueforNevsun alsoremainsanimportant becauseof National service report raisedintheCOI inordertoaddressthespecificconcerns undertaken forcontinuedauditingactivitiesrelatedtoSegen it isimportant be possible falsificationofdischarge documentsandintimidationof workers, program,overall raisedaboutthenational service concerns including allowed onsite been appliedtoallnew contractorsorsubcontractorsbeforethey are has procedures requiringdocumentationofdischarge ofnationalservice awarded tonew Eritreansuppliers;however, thestandardscreening In theauditassessmentperiod, therehave notbeenany majorcontracts workers hasnotyet beenimplemented to coordinatescreeningandauditactivitiesrelatednationalservice at theBishaMine. However, theplantohirealocalcontractmanager workers contracts thatreinforcetheprohibitionagainst nationalservice a StandardOperatingProcedureforincludingprovisions inallrelevant thatprogressit wasconfirmed hasbeenmadewithrespecttodeveloping withBMSCprocurementandhumanresourcemanagers,From interviews than current operationsattheBishaMine. than current of theHRIA, periodrather andappeartoberelatedtheconstruction Some oftheseallegationsandfindings donotalign withtheobservations SDIR 60, March12, 2015. tobeexploited” until itstarted ofthemineinfrastructure (2011). construction betweenIn correspondence Nevsun and theChairofCOI, thisassumptionappearstohave beenconfirmed. InanemaildatedJune 17, 2015, theChairstatesthat focuseson…the “COIEreport 70

69 Nonetheless, given the • • • • Updated conclusionsandnextsteps • other humanrightsissues and engagement withcontractorsandsuppliersaboutnationalservice code ofconductforcontractorsandsuppliersongoing auditsand They include:creationofaContractManager positiondevelopment ofa implementation ofRecommendation4fromtheinitialHRIAReport. have beenpreviouslyservice discussedinthesectionabout Next stepsforongoing humanrightsduediligence onthenational labour rights procedures andincludesbroaderdiscussionsofworking conditionsand screening if itbuildsuponongoing auditsofthenationalservice contractors andsupplierswillbemostconstructive andeffective As suggested intheinitialHRIAReport, ongoing dialoguewithEritrean suppliers who wishtowork attheBishaMine attention isrequiredby BMSCmanagement andany contractorsor due diligence. Nonetheless, given oftheissue, theimportance ongoing the BishaMine, thisissueremainsanpriorityforongoing humanrights have workers disclosed noevidence beingusedat ofnationalservice While theauditactivitiesatSegen and Construction Transhorn Trucking arebeingdiligently enforced national service and supplierworkers attheBishaMinehave beendischarged from indications, thescreeningproceduresinplacetoensurethatcontractor and Construction Transhorn Trucking duringtheauditperiod. Fromall ongoing onSegen attentionwithactivitiesconcentratedinparticular subjectof issueremainedanimportant The nationalservice assessment ofthefollow-up onthe initialHRIA’s Recommendation#4 diligence intheBishaMine’s supplychainhasbeensuggested inthe suggested tobuildamorecomprehensive approachtohumanrightsdue to contractorsandsuppliers. Inthisregard, somenextstepshave been BMSC retainsresponsibilityforthescreeningandauditactivitiesrelated the perspective ofongoing humanrightsduediligence, itislikely bestif will likely have projects. aroleinfutureengineeringandconstruction From writing, thereareisnoSENETpresenceattheminesite—although BMSC HumanResourcesandProcurementDepartments. At thetimeof Eritrean subcontractorshasdiminishedandbeenassumedby the Over time, theroleofSENET(asECPMcontractor)inscreening 43 SECTION FIVE Updated findings on human rights issues 44 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 71 SeeInitial HRIAReport, pp. 22-23 fordiscussionandp. 23forconclusions STANDARDS RELATED TO FORCEDLABOUR Eritrea hasratifiedtheILOConvention AgainstForced Labour(No.29 • • • BMSC EmployeePolicy (Policy 4) protects against unethicalpracticessuchaschildlabourandforcedlabour” materials, inamannerthatenhanceslocalbenefitsand goods andservices management shallconductthecompany’s businessactivitiesto:procure BMSC SocialResponsibilityPolicy (Policy 3)statesthat “BMSC • • • (No.82/1995): Proclamation ofNationalService • • Labour ProclamationNo.118/2001: • • Eritrean Constitution(suspended): FREEDOM OFMOVEMENT; RIGHT TO WORK HUMAN RIGHTS:FREEDOMFROM FORCEDLABOUR; FREEDOMFROM SLAVERY; the Measures) Recommendation(No. 203). Labour (No. 29)andpromulgated theForcedLabour(Supplementary In 2014, theILOadoptedanew ProtocoltotheConvention Against Forced service personnelonextended specifically theuseofEritreanNationalService ensure thatinvoluntary labourisnotusedby BMSCoritscontractors, freedom, security, equityanddignity ensure thatconditionsofemployment adheretothestandardsof conventions aspects oftheEritreanLabourLaw labourstandardsand andinternational establish asoundhumanresourcespolicyframework which meetsall activeperformed dutyservice People over statusifthey have 40areconsideredtobeonreserve months foratotalof18 service training and12monthsofactive dutymilitary For personsaged 18-40, theobligation consistsof6monthsmilitary Persons aged 18-50have theobligation NationalService toperform under thePenal Code 9(6) Article An employer who engages inforcedlabourshallbepunishable forced labour renderedduringemergency mayservices not, however, beregarded as forced labourasprovided forinthePenal Code, and communalservices civicobligations, nationalservice, normal 3(17)Compulsory Article national service 25(3) Article All citizensshallhave thedutytocompleteone’s dutyin forcedlabournotauthorisedbyperson berequiredtoperform law norshallany orservitude 16(3)Nopersonshallbeheldinslavery Article ILO Convention the AbolitionofForced concerning Labour(No.105)

statesthatBMSCwill:

) and • • • • • 2015 Audit Findings • • Conclusion ofinitialHRIAReport 5.1.2 WORKPLACE HEALTH AND SAFETY period, asoutlinedinthetablebelow The BishaMinecontinuedtohave strongsafetystatistics fortheaudit other contractors ofoff-siteroadsafety as anissueforBMSCand raises theimportance Trucking asa result oftheoff-sitefatalityonetheirdrivers. Italso Road safetywasthepriorityworkplace safetyissuefor Transhorn Massawa Port loading copperconcentrateatthemineandunloading worksconducting earth projectsatsiteand Transhorn Trucking drivers ofSegen workersInspections includedobservations Construction the relevant safetyprocedures andarewearing therequisitePPE. ofthecontractorworkersobservations at site, they arealsofollowing and following therequiredsafetyproceduresintheirtasks. From thatBMSC and processingplantconfirm workers are wearing PPE atdifferentlocationsinandaroundthemineoperations Observations andimprovement forcontinuouslearning opportunities Furthermore, minoraccidents arereported, reviewed, anddiscussedas piece ofequipmentfallingontoaworker’s footandfracturinghisfoot. 2015andinvolvedperiod. inFebruary a occurred The losttimeinjury duringtheaudit reported diseases andonlyonelosttimeinjury rateandtherehave notbeenanyinjury fatalities, occupational low As outlinedinthetableonnextpage reportable thereisavery (SOPs), andthepromotionofasafetycultureatmine through task-relatedsafetytraining, standardoperatingprocedures with managers andworkers anongoing confirm emphasisonsafety manner andasamatterofpriorityformanagers andworkers. Interviews Workplace healthandsafetycontinuestobeaddressedinaresponsible communities, contractors, aswell asthetrafficpoliceaboutroadsafety it isanappropriateareaforongoing consultationandengagement with control. As thisisanareathatalsoposesrisksto communitymembers, the minesite, andtherearemany variables beyond thecompany’s vehicle operation, itismoredifficulttoenforcethesepoliciesoutside concentrate. While BMSChaspoliciesinplacewithrespecttosafe copper phaseandramp-uptotheround-the-clockhaulingof The risksinthisareahave likely increasedwiththetransitionto between theminesite, localcommunities, Asmara, andMassawa. attentionrelatestoroadsafetyonthepublicroads One areaforfurther contractors attheBishaMinedonotappeartobejustifiedpresent adequate Personal Protective Equipment(PPE)foremployees and of aneffective safetyculture. aboutlackof Stakeholder concerns procedures, training, inspectionthatcombineintothedevelopment are beingaddressedinaresponsiblemannerthroughrigorous policies, nature ofminingoperations. However, workplace healthandsafetyrisks Workplace healthandsafetyisanareaofongoing riskduetothe 71 72 According toUNAIDS, in2014the prevalence ratefor adultsfrom15to49 was0.7%. www.unaids.org/en/regionscountries/countries/eritrea being treatedandtracked: withtheheaddoctorandareview fromthemine’s ofreports From interviews MedicalClinic, thefollowing arethemainillnessesandailmentsthat • 2014 MAINILLNESSES/ALIMENTS HIV /AIDS Fatigue Dehydration Malaria Gastro-intestinal Muscle andjoint Respiratory MAIN ILLNESSES/ AILMENTS with workers of theMedicalCentre, review healthreports, ofinternal andinterviews withtheheaddoctoratminesite, through interviews observations Occupational healthmatterswere assessedintheauditperiod *** frequencyratewas0.00for2014.The totallosttimeinjury At thetimeofwriting, therehas ** * • • • • 2014 WORKPLACE HEALTH AND SAFETYHIGHLIGHTS No work relatedfatalitiesrecorded No occupationaldiseasesrecorded recorded)*** Total frequencyratewas0.00 (nolosttimeinjury losttimeinjury (compared to0.23**in2013) Total frequencyrate*was0.22in2014 injury reportable in thenextHRIAauditand/orNevsun CSRreport. 2015.been oneLTI inFebruary The totallosttimefrequencyratefor2015willbereported Report, however as0.41 inthe2014CSRReport reported was incorrectly as0.23inthe2013CSR reported FrequencyIndexwascorrectly Injury The 2013Reportable worked by thetotalworkforce multipliedby afactor of200,000 FrequencyIndexreferstothefrequencyofinjuriesrelative tothetotaltime Injury Reportable EXPLANATION • • • • • • • • • • • • • • • • • • • • • • • handlers hashadgood results Focus onprevention illnesses;ongoing offood-poisoning andfood/water-borne inspectionprogram forthemine’s kitchensandfood Seasonal factors(e.g. fluseason)have stronginfluenceonincidence of gastro-intestinalcomplaints Emphasis onprevention throughon-sitephysical fitness Physiotherapy treatmentsareprovided attheMedicalClinic Given demographics thecurrent atthemine, olderworkers tendtohave moremuscleandjointailments Common ailmentsrelatedtophysical labour According totheheaddoctor’s illnessareinline with assessment, ratesofrespiratory WHO guidance current monitoring illnessasasubjectforitslong-term Impact Review Committeealsoidentified respiratory Seasonal factors(e.g. complaints fluseason)have stronginfluenceon incidence ofrespiratory Background anddustyclimatearecontributingfactors environmental conditionsrelatedtothedry Trends illnessratessincethebeginningofmineoperationsarebeingcloselymonitored relatedtorespiratory Workers withHIV/AIDS areprovided atsite withconfidentialsupport by anursecounselor areprovided by thepublichealthsystemin treatmentsandcounselingservices Drug Asmara The nationalratesofHIV/AIDSarelow comparedtosomeother African countries ofmaintainingthelevelImportance andprivacy ofcomfort in thecampsothatworkers canget adequaterestbetween shifts Greater emphasisisbeingplacedoneducating workers aboutfatigueasapotentialsafetyconcern Fatigue canberelated toanumberoffactors, includingrotationalshiftsandheat No incidentsofheatcollapseduringauditperiod Oral hydration pillsareprovided atclinic Educational campaignduringaudittheperiodemphasizinghydration, consumptionandself-monitoringofurinecolour fruit The hotclimateattheminesitemeansthatdehydration isaconstantconcern Controls includeavector-control plan;mosquitospraying treatments andfogginganti-malarialdrug There continuetobeseasonalincidentsofmalaria;however, therearebettercontrols andhospitaladmissionshave notbeen required

• • • on sitethatareusedforsuchtransferswhen necessary is nosurgicaltheatreattheMedicalClinic. There aretwo ambulances Asmara formoreadvanced treatmentsuchassurgery, there ascurrently In rarecases, asickorinjuredworker tothehospitalin istransferred workers arehired compared withthebaselinehealthassessmentsconductedwhen health trends. Healthdatafromindividualvisitstotheclinicisalso torecorddatathatcontributesananalysisoflong-term opportunity Regular visitsfromworkers provide MedicalClinicstaffwiththe period expand, withdentalcareforworkers beingaddedduringtheaudit necessary. availableThe services attheMedical Cliniccontinueto provides workers withclearanceifabsencefromwork mightbedeemed BMSC workers andcontractorsatsitewithoutcharge andthedoctor ailments. Medicaltreatmentsandmedicineareprovided tothe the MedicalCliniceachyear, predominantlyforminorillnessesand According totheheaddoctor, approximately10,000workers visit 72 45 SECTION FIVE Updated findings on human rights issues 46 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • • 2015 Audit ConclusionsandNextSteps • • • • current discussionsaboutadditionalhealthassessments,current which can exposuretodustandchemicals.long-term Inthisregard, thereare the ImpactReview Committee onpotentialhealthimpactsrelatedto increasing attentionfromtheMedical Clinic, management, workers and As theminehasbeenoperatingfor a numberofyears, thereis to educationandprevention measures trendsandcontributing focus onidentifyingandaddressinglong-term the medicalconditionsofworkers thatusetheMedicalClinicwitha predominantly routineinnature. The headdoctoriscarefullytracking The illnessesandailmentsbeingtreatedby theMedicalClinicwere ofreinforcingtheirsafetycontrols outsideofthemine terms Trucking, italsohasimplicationsforBMSCandothercontractorsin site roadsafety. for While roadsafetywasprimarilyaconcern Transhorn safetyissueassessedduring theauditperiodrelatedtooff- important As discussedintheSectionFouronemergingissues, themost attheBishaMine disease orlosttimeinjuriesreported record. Duringtheauditperiod, therewere nofatalities, occupational The BishaMinecontinuestohave stronghealthandsafety avery and tocontributeongoing monitoringandprevention efforts provide toupdatetheworkers’ additionalinformation healthbaseline health impacts. The doctorissupportive of suchinitiatives tohelp assessments toensurethatthemineisaddressingpotentiallong-term Clinic, theIRCandBMSCmanagers aboutadditionalhealth Looking forward, therehave beendiscussionsbetween theMedical mining sector shared interestinmakingitapositive exampleofgood practiceforthe Mine MedicalClinicisthefirstmineclinicincountry, thereisa illnesses.attention totheindicatorsrelatedrespiratory As theBisha mineinspections.quarterly Members oftheIRCarealsopaying close general healthissuesandoccupationalduringtheir and Human Welfare—confirm thatthey are providing oversight on ofLabour ofHealthandtheMinistry representatives fromtheMinistry withtheImpactReview Committee—whichInterviews includes ailments well asthequalityoftreatmentthatthey receive forminorillnessesand the doctorandstaffatMedicalClinicfortheirmonitoringefforts, as monitoring. The workers expressedconfidenceinandappreciationfor align withandreinforcethefocusofMedicalClinic’s ongoing processing plant. formineworkers,These arenaturalconcerns which forworkers inmineoperationsandthe or chemicals—particularly were exposuretodustand/ relatedtopotentialimpactsoflong-term In thefocusgroups withworkers, abouthealth themainconcerns onmonitoringandpreventionother departments measures exposure.to dustandparticulate The doctorisalsocollaboratingwith related ontrends—particularly and iscarefullymonitoringreporting forpotentialoccupationalhealthimpacts demonstrates strongconcern for theappearanceofchronicdiseases. However, theheaddoctor The mineisinitsfifth year ofoperations, andthereforeitisstillearly STANDARDSRELATED TO SAFETY HEALTH WORKPLACE AND and community.” health andsafetyatitswork sitesforthebenefit of itsemployees, contractors “The Company provides anoperatingenvironment that isorientedtoprotect Code ofEthics Nevsun Health &Safetyof Yourself, otherEmployees/Contractors andtheCommunity: BMSC CodeofConduct(Policy 5) To ensurethattheseprinciplesareadopted, BMSCwill: Our guidingprinciplesare: BMSC HealthandSafety Policy (Policy 2) his fellow employees ortheemployer’s withoutendangering property himself (7) torenderassistancewhen anaccidentoccursorimminentdanger threatens the protectionofsafetyandhealthhimselfotheremployees (6) toutilizeappropriatelyandwithcareappliancesdevices provided for authority a concerned issuedby(5) toimplementallhealthandsafetyinstructions anemployer orby 21:ObligationsArticle ofanEmployee include: themonuse materialsandinstruct necessary (10) toprovide employees withpersonalprotective equipmentandother health andsafetyoftheemployees and theprocessesofwork donotbecomeasourceorcauseofhazardstothe ontoensurethatallwork(9) totake appropriatemeasuresearly placepremises occupationalsafetyandhealthmeasures… (4) totake allthenecessary 20:ObligationsArticle ofanEmployer include: Labour ProclamationNo.118/2001 RIGHT TO HEALTH HUMAN RIGHTS:RIGHT TO JUST AND FAVOURABLE WORKING CONDITIONS; • • • • • • • • • • • health andsafetyefforts toreinforcetheconfidenceof workersserve inthemine’s occupational contribute totheongoing duediligence atthemine, efforts andshould No job should be undertaken ifitisnotsafetodoso No jobshouldbeundertaken limits inlocalcommunities Vehicles mustbeoperated safelyandinaccordancewithestablishedspeed with therequirementsofOHSAS18001:2007 establish andmaintainahealth&safetymanagement systeminaccordance assist thelocalcommunityinhealthawareness activities complywithrelevantensure thathealthandsafetyperformances legislation andoperationalactivities outriskassessmentforallconstruction carry train andmotivate allourpeopletowork inasafeandresponsiblemanner any taskthatcan’tbedonesafelyshouldn’t working safelyisaconditionofemployment objectiveour mostimportant issafetyandhealth all injuriesarepreventable

• • • 2015 Audit Findings • • • • Conclusions oftheinitialHRIAReport 5.1.3 WAGES, HOURS, LEAVE AND BENEFITS 74 73 an adequatestandardofliving workers’ rightstojustandfavourable working conditions andtherightto than ahumanrightsissue, althoughitwould have apositive impacton decision toprovide anisolationbonusismoreofabusinessissue provides itsworkers attheBishacampwithanisolationbonus. The this regard, itisinterestingtonotethatSegen currently Construction and toattractretainworkers who may beluredelsewhere. In bonus” forworkers attheBishaMinetomake wages morecompetitive BMSC BoardofDirectorsaboutpotentiallyinstitutingan “isolation In thiscontext, thereare discussionsbetween management andthe and otherskilledjobsavailable in Asmara the Eritreanjobmarket asaresultofthenew minesbeingdeveloped remain comparatively high, buttherearecompetitive factorsatplay in representatives converge aroundthefactthatwages attheBishaMine withworkers,Interviews humanresourcesmanagers, andgovernment to make itdifficulttoassessthewages andbenefitsatthemine. The lackofnationalwage continuestomake itdifficult information the auditperiod, includingthoserelatedtowages andbenefits raisedbyconcerns workers regarding humanresourcesissuesduring As discussedinthesectiononstaffturnover, therehave beenfurther andworkers dialogue withtheMinistry that shouldbeconsideredinclosureplanningandexploredthrough Provident Fundforworkers.to createavoluntary This isanissue ofLabourandHuman recently throughtheMinistry Welfare’s efforts social security. At thenationallevel, thisrighthasonlybeenaddressed benefits createsariskofpotentialnegative impactson workers’ rightto Although closureisstillover adecadeaway, thelackofretirement Proclamation quitestrictly shiftwork,undertaking andBMSCfollows theEritreanLabour standardsforhours,international holidays, andleave forworkers The EritreanLabourProclamationgenerally accordswithbasic should beseenasacompetitive advantage the righttojustandfavourable working conditionsandrelatedrights remote location. This willbecomeanissuewhere actively supporting to retainemployees who may choosetowork atotherminesinaless to ensurethatremunerationandbenefitsremainattractive in order The development ofotherminesinEritreawillputpressureonBMSC higher thanthosepaidinothersectors stakeholders statedthatwages attheBishaMineareattractive and aboutnationalwageinformation levels; however, allworkers and minimumwage inEritreaandlittlecomparative There isnostatutory See OHCHR, “Human Rights Translated: A Business Reference Guide,” section onsocialsecurityatpp. 105-109. See InitialHRIAReport, pp. 24-26fordiscussion andp. 26forconclusions 73 • • • • • • result intheneedtoconsideralternative shiftarrangements Competitive pressuresfromothertheminesindevelopment may and management inthebroaderconversation relatingtostaffturnover. work discussionbetween willlikely remainatopicofinformal workers mechanismforcollectiveformal bargaining attheBishaMine, shift through theprocessofcollective bargaining. Intheabsenceofa The detailsrelatedtoshiftlengthandrotationsareoftenbestresolved safety issue reason, shiftwork shouldalsobeviewed asanoccupational healthand may accumulateforworkers towards theendoftheirrotation. For this days ofrestaway fromthemineaftertheirrotation;nonetheless, fatigue world. The shiftrotationsprovide workers withasufficientnumberof shifts attheBishaMinearecommonplacemostminesaround ofLabourandHumanResources.Board andtheMinistry The 12-hour at theBishaMinehave beenreviewed and approved by theBMSC standardsthatapplytohoursofwork.international shifts The current fromtheregularEritreanand Shift work isinanexemptedcategory rotational scheduleduringtheauditperiod expatriate workers complaintsaboutachange raisedcertain intheir rotation forworkers inmineoperationsandprocessing. Furthermore, wereSome concerns raisedaboutfatiguerelatedtothenight-shift however itiscitedasoneofthefactorscontributingtostaffturnover. accepted asoneoftheoperationalrealitiesworking inthemine managers duringtheauditperiod. Forthemostpart, shiftwork is withworkersShift work and wasasubjectduringtheinterviews BMSC BoardofDirectors subject ofdiscussionbetween humanresourcesmanagers andthe for theminingsector. The issueofretirementbenefitsisanother isnorequirementfortheProvidentcurrently Fundtobeimplemented retirement benefitsforsomepublicsector workers however there Human Welfare Provident Fundthatprovides ispromoting avoluntary are rareindeveloping countries. InEritrea, ofLabourand theMinistry security thatincludesretirementbenefits. It isagovernment obligation tomake available asystemofsocial continue togain forolderworkers importance atthemine Bisha workforce tobeintheir30sand40s, isreported thisissuewill not wanttoretirebecausethey have nobenefits. Whilethebulkof management; they willnotbefitfor work formuchlonger, yet they will mine, therearesomeolderworkers who arecreatingadilemmafor be postponedbecauseofpotentialextensionorexpansionthe workers attheBishaMine. While itappearsthatmineclosuremay An areaofongoing isthelackofretirementbenefitsfor concern an adequatestandardofliving families—and whether thesehave oftherightto implicationsinterms to which inflationiscreatingnegative impactson workers andtheir in thedegreeAsmara. isrequiredtoascertain information Further relatedtowagesConcerns were raisedprimarilyby workers living 74 However, suchsystems 47 SECTION FIVE Updated findings on human rights issues 48 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 75 • • • • 2015 Audit ConclusionsandNextSteps the lawsuit against Nevsun duringtheauditperiod. andinworkers report were repeatedintheCommissionofInquiry Concerns relatedtotheworking conditionsofSegen Construction benchmark inordertoremainanemployer ofchoice are developed, therewilllikely beongoing pressuretosurpassthe benchmark forworking conditionsintheminingsector. As othermines this regard, roleinsettingastrong theBMSCBoardhasanimportant standards andcompetitive labourpracticesofotheremployers. In dynamic element, asthey needtobecomparedevolving Eritrean The issuesrelatedtohours, benefits, leave, andholidays willhave a require further attentionandassessmentinclude: require further From ahumanrightsperspective, theareasofpotentialimpactthat operations andotherjobsbecomeavailable in Asmara as thelabourmarket pressuresbeingcreatedastheZaraMinenears attributed tothefocusonstaffturnover issuesin interviews, aswell leave, andbenefits by workers andmanagers. Inpart, thiscanbe During theauditperiod, greater attentionwasgiven towages, hours, isolation bonus. work asrequired. Segen workers attheBishacampalsoreceive an (same astheBMSCworkers) andarepaidovertime after8hoursof file auditsshow thatSegen workers are working 12-hourshifts overtime, andbenefits. with workers andemployment Interviews otherworkers’surrounding rightsissues—includinghoursofwork, attheBishaMine,national service therewasincreasingdialogue activities withSegen focusedontheprohibitionagainst Construction See paragraph 42andfollowing oftheNotice CivilClaim. ------mathematical equationofworking hours ofoccupationalhealthand safety ratherthanasa framed interms relate torestandfatigue;therefore, follow-up inquiriesshould be ofthesereasonsfromahuman rightsperspectiveimportant attracting andretainingworkers attheBishaMine. The most discussion aboutthisissueforavariety ofreasons—including fortheminingindustry,norms therewilllikely beongoing While therotationalwork scheduleappearstomeetinternational other retirementsaving scheme to itsworkers throughcontributionstoaProvident Fundorsome andsafeguards support wish toconsiderproviding extraordinary retirement benefitsfor workers intheminingsector, BMSCmay fit to work atthemine. Duetothecurrent gaps inlegally required provide olderworkers withsocialsecuritywhen they arenolonger The needforapublicand/orprivate retirementbenefitschemeto in thecountry to provide attractive wages andbenefitsthatare amongstthebest jobs in Asmara willprovide incentives formanagement tocontinue Eritrea. Itislikely thatcompetitive pressuresfromotherminesand The adequacyofwages andbenefitsinrelationtoinflation 75 While theaudit

STANDARDS RELEVANT TO WAGES, HOURS, LEAVE AND BENEFITS for every yearfor every offulltime service receive atleastonefullday seven offevery andaminimumof3weeks ofholiday day andweekly hoursshouldnotexceed48hours. Days ofrest:workers should Regular hours:employees shouldnotberequiredtowork morethan 10hoursper LabourOrganization(ILO) International • • above objectives, BMSCwill: ensures thetimelyachievement ofCompany businessobjectives. Inachieving the encourages employees toreachtheirpersonalandprofessionalgoals, aswell as The Company iscommittedtothecreation ofawork environment which helpsand BMSC LabourPolicy (Policy 4) 62–SickLeave;Article Leave 66–PregnancyandMaternity Article Leave; 60–LeaveArticle forSpecialPurpose; 61–Obligation Article toNotify; from Annual Leave; 58–LeaveArticle forFamily Events; 59– Article Association See also 55–PublicHoliday;Article 56– Article Annual Leave; 57–Recall Article engaged inwork ofaspecialnature (3) The Ministermay theweekly issueregulationsconcerning restofemployees on Sundays may replaceitby anothersuitableday (2) The weekly restperiodshallbeSunday, providedthatwork thatundertakings consecutive hoursinthecourseofeachperiodseven days (1) An employee shall, attheminimum, beentitledtoaweekly restoftwenty-four 54– Article Weekly Rest two andonehalfmultipliedbyrate theregularhourly (3) An employee who works overtime onpublicholidays shallbepaidattherateof of two multipliedbyrate theregularhourly (2) An employee who works overtime onaweekly restday shallbepaidattherate rate regular hourly in themorning, heshallbepaidattherateofoneandhalfmultipliedby the rate.the regularhourly Forovertime work fromteno’clockintheevening uptosix o’clock intheevening multipliedby shallbepaidattherateofoneandaquarter (1) An employee who works overtime between andten sixo’clockinthemorning 53–Overtime Article Work Payment make thelatterwork overtime formorethantwo hourswithoutthelatter’s consent (1) An employer may make anemployee work over time, provided hemay not 52–Overtime Article Work hours perweek four-week periodmay orshorter notexceedeighthoursperday eight andforty longer thanoneweek, provided thattheaverage numberof hoursworked over a calculated onthebasisofaverage hoursofwork may bedistributed over aperiod hours ofworknormal cannotbedistributedevenly over aweek, working hours Where thecircumstancesinwhich theworkonaresuchthat hastobecarried 50–DistributionofHours Article Work in Weeks a week (1) Regularhoursofwork may notexceedeighthoursaday hours andforty-eight 48–RegularHoursof Article Work be lessthantheminimumwages fixed by acollective agreement inanundertaking 41(2) Article Wages by shallbedetermined thecontractingparties, butmay not Labour ProclamationNo.118/2001 RIGHT TO SOCIALSECURITY TO AN ADEQUATE STANDARD OFLIVING;RIGHT TO REST, LEISURE AND HOLIDAYS; HUMAN RIGHTS:RIGHT TO JUST AND FAVOURABLE CONDITIONSOF WORK; RIGHT employees andlawskeeping withEritreannorms andenablesBMSCtoattractretain ensure fairentitlements, benefitsandremuneration, ofalevel which isin the EritreanLabourLaw labourstandardsandconventions andinternational establish asoundhumanresourcespolicyframework which meetsall aspectsof 77 76 SeeinitialHRIAReport, pp. 26-27forfulldiscussion andp. 27 for conclusions • • • • • 2015 Audit Findings • • Conclusions oftheinitialHRIAReport 5.1.4 FREEDOMOF ASSOCIATION SeeinitialHRIA Report, pp. 27-28 for fulldiscussionandp. 28forconclusions are normally forwardedtotheNCEWrepresentativeare normally atSegen’s however orgrievances requestsforinformation fromtheBishacamp visit theBishaMineandSegen Bishacampperiodically, representativepermanent attheBishacamp. NCEWrepresentatives workers,Construction itwasrevealed thattheNCEWdoesnothave a In discussionswiththeNCEWregarding working conditionsforSegen agreement abouttheneedforanemployers’ association developed minesarefurther the forthcoming andthereisbroader potentially beneficialoption, viewed itiscurrently asprematureuntil workers’ association(s)intheminingsector. While thisisviewed asa sector, which would forany actasanaturalcounterpart future the potentialcreationofanemployers’ associationforthemining There have beendiscussionsbetween Nevsun andENAMCOabout human resourceissuesproactively communications andgrievance mechanismsforworkers toresolve meantime, isfocusingonitsinternal theHumanResourcesDepartment and isinitiatedby workers oftheNCEW. withthesupport Inthe ensure thatany unionizationproposalfollows theproperprocedures turnover andworking conditions. However, management alsoneedsto collectively addresssomeoftheissuesdiscussedinrelationtostaff to discussthepotentialadvantages ofanemployees’ associationto managers. BMSCmanagers continue toexpresstheirwillingness able tovisittheBishaMineandhave opendiscussionswithBMSC in any anti-unionbehaviour. NCEWrepresentatives statethatthey are There hasbeennosuggestion orallegation thatBMSChasengaged decided uponNCEW’s nextsteps at theBishaMine. However, therehave beennospecifictimelines from Nevsun andENAMCOaboutthepotentialcreationofaunion by thegenerally favourable toneofthedialoguewithrepresentatives withrepresentatives oftheNCEW,From interviews they areencouraged abouttheEritreanlabourmarket observations Bisha Mine(Segen and Construction Transhorn Trucking); and, general tothe relations withunionizedEritreancontractorsproviding services ongoing industrial period: potentialunionizationoftheminingsector; of Eritrean Workers (NCEW)aboutarange ofissuesduringtheaudit There hasbeencontinueddialoguewiththeNationalConfederation rights relatedtofreedomofassociationandcollective bargaining requesttoBMSC—which forthe result inaformal willtestitssupport Mine. discussionsmay Itisforeseeablethattheseinformal eventually associations fortheminingindustry, includingwithrespecttotheBisha ofemployeeare ongoing discussionsabouttheformation informal stakeholders suggest andexternal Discussions withinternal thatthere place foranumberofBMSC’s suppliers, contractorsandsubcontractors have beenexercised—asisevidenced by thecollective agreements in protected by theEritreanLabourProclamation andtheserightscan The righttofreedomofassociationandcollective bargaining are 76 • • 2015 ConclusionsandNextSteps • Conclusions oftheinitialHRIAReport 5.1.5 NON-DISCRIMINATION STANDARDS RELATED TO FREEDOMOF ASSOCIATION Collective Bargaining(No.98)in1999 Protection oftheRighttoOrganize(No.87)andon Eritrea hasratifiedtherelevant I 99–CollectiveArticle Bargaining 90–Functions of Article Associations of 89–Formation Article Associations Title of VIII –Formation Associations andCollective Bargaining Labour ProclamationNo.118/2001 RIGHT TO ORGANIZE;RIGHT TO COLLECTIVEBARGAINING HUMAN RIGHTS:RIGHT TO FREEDOMOF ASSOCIATION AND PROTECTION OF THE companies asthey develop theiroperations dialogue shouldcontinueandbeexpandedtoincludeothermining role inthedevelopment ofaresponsibleminingsectorand, therefore, knowledgeable andcommittedorganization thatcanplay aconstructive bargaining. withtheNCEWcontinuetopresentapictureof Interviews freedom ofassociationandtherightstoorganize andcollective forsupporting entry-point with theNCEWremainsanimportant stakeholders,with external thereisagreement thatongoing dialogue the tradeunionsfromgovernment inEritrea, however ininterviews aboutthelackofindependence of raiseconcerns reports External association stepsrequiredtocreateanemployees’specific timelinefortheformal having refined, aunionizedminingsectorisbeingfurther thereisno While thisdialoguehasbeenconstructive andthevalue propositionof association attheBishaMineand/orforminingsectorasawhole. of Eritrean Workers aboutthepotentialcreationofanemployees’ There hasbeenongoing dialoguewiththeNationalConfederation initiative toensureaccessremedy grievancecomplementary mechanismfor BMSCcontractorsisauseful Bisha camp;and, therefore, itseemsthatthedevelopment ofa may well suitedforaddressinggrievances notbeparticularly atthe on grievance mechanisms, itappearsthattheNCEWmechanism and/ortoaregionaloffice.headquarters Asdiscussedinthesection rights by BMSC oftheir individual successstoriesandtestify totherespectandsupport cultural values towork outsideofthehome. These women represent employed positionshave inentry-level challenged traditionalroles and training programmes offeredatthemine. Even localwomen who are growing numberofwomen advancing intooperationalrolesthroughthe in traditionalrolessuchashousekeeping andthekitchen, therearea employees attheBishamine. While women areemployed primarily There isnoevidence ofdiscriminationbetween maleandfemale LO Conventions onFreedom of Associationand 77 49 SECTION FIVE Updated findings on human rights issues 50 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • • • 2015 Audit Findings • • 78 as theirskillsaredeveloped. Over time, the objective isforEritrean management roleswilllikely make wage comparisons toexpatriates have specializedskills, theEritreanworkers who arebeingtrainedin that expatriateworkers arerelatively few innumber(11%2014)and between expatriateandEritreanworkers. While thereisunderstanding wereA few concerns expressedabout thediscrepanciesinwages new employees training isalready oftheinductiontrainingfor offeredaspart that theworking environment remainsrespectfulandharmonious. Such there shouldbeanemphasisonculturalsensitivitytrainingtoensure as staffturnover increases(bothforexpatriateandEritreanworkers), remain positive andmutuallyrespectfulonapersonallevel. However, between expatriateandEritreanworkers. Overall, theserelationships Another areaofpotentialdiscriminationrelatestotherelationship suggestion box employees tobringtheirsuggestions forward directlyorthroughthe to new ideasforfuture recreationalinitiatives andencourage female hair salonorteahouse). Humanresourcemanagers arereceptive interests andwould make theirtimeatcampmoreenjoyable (i.e., a recreational initiatives thatwould bemorefocusedonwomen’s Some femaleworkers madeconstructive suggestions aboutpotential workers areastrongcomponentoftheBishaMine’s workforce they shouldbemonitoredonanongoing basistoensurethatfemale 2013). todrawWhile itistooearly any conclusionsfromthesetrends, period thaninprevious years (23%ofnew hiresin2014vs. 32%in 13 in2013). Ontheotherhand, fewer women were hiredintheaudit leavematernity thanintheprevious year (21of24in2014vs. 5of appears thatagreater numberoffemaleworkers after decidedtoreturn From discussionswithmanagers andworkers aboutstaffturnover, it driversfemale truck willbetrainedthisyear roles atthemine. Femaleworkers thatanother contingent report of of thetrainingprograms thatallow women toprogress innon-traditional working atthemine. Inparticular, femaleworkers arestrongsupporters average. already succeededinhiringmorefemaleworkers thaninternational discrimination wasnotidentifiedasaconcern. TheBishaMinehas withworkers duringtheauditperiod,In interviews gender-based right toeducation therighttonon-discrimination,and supporting therighttowork andthe Bisha Mine’s role toplay trainingcentrehasanimportant inrespecting contingent upontrainingandcapacity-building. Inthisregard, the a view togradually replacingsomeoftheexpatriateworkers), is workforce, aswell astheirskillsdevelopment andpromotion(with The successfulintegration offemaleand male Eritreansintothe exceeding itscontractualtargets with91%Eritreansintheworkforce therighttowork.discrimination andalsosupport BMSCiscurrently implemented attheBishaMinerepresentanotherfacetofnon- The requirementsforpriorityhiringofEritreansthatarebeing The international averageThe international offemale employees hasapproximately20% offemaleemployees inminingoperations isapproximately 13%andtheBishaMine currently 78 Femaleworkers statethatthey arerespectedandenjoy • • • 2015 ConclusionsandNextSteps STANDARDS RELATED TO NON-DISCRIMINATION equity andequalaccesstoemployment for women.” opportunities BMSC SocialResponsibilityPolicy (Policy 3)statesthatBMSCwill “promote job • • • Labour ProclamationNo.118/2001 • • Eritrean Constitution TO EDUCATION RIGHT TORIGHT WORK;RIGHTS; AND RIGHTS); WOMEN’S HUMAN LABOUR AND (WHICH APPLIESTONON-DISCRIMINATIONRIGHT TO ALL RIGHTS: HUMAN management occupiedby rolescurrently expatriateworkers mining andmanagement skillsrequiredtoassumesomeofthesenior Furthermore, the Training CentreishelpingEritreanworkers develop the development andcansuccessfullyadvance innon-traditionalroles. central forensuringthatwomen have forprofessional opportunities discrimination intheworkplace, theroleof Training Centre remains In additiontotheBMSCpoliciesthatpromoteequalityandnon- conduct attentiontoanyparticular signsrelatedtodiscriminatory warning around staffturnover issues, humanresourcemanagers shouldpay who have resignedfromtheBishaMine. Intheongoing discussions workers’ grievance mechanism, forworkers aswell asinexitinterviews Potential throughtheinternal discriminationissuescanbeobserved relatedtothezincphase required forconstruction explained by engineeringworkers theincreasedneedforinternational to thehiringoffemaleworkers andEritreanworkers, thisislargely Bisha Mine. While therewasaslightdowntick inthestatisticsrelated ofhiringfemaleworkersresults interms andEritreanworkers atthe and Eritreanworkers. Inbothcases, therearestrongcommitmentsand continued tobeonpotentialdiscriminationrelatedfemaleworkers ofnon-discrimination,In terms thefocusduringauditperiod managers anddiminishedrelianceonexpatriates hoped thatthisissuecanbemanaged throughpromotionofEritrean managers themine, toincreasinglyassumetheleadinrunning soitis treatment inemployment andremuneration, onthebasisoftheirsex 65(1) Article Women may notbediscriminatedagainst asregardsor opportunity work 41(1) Article An employer shallplay wages equalstarting forthesametypeof colour, nationality, sex, religion, status, politicalorientation orsocialstatus bytermination anemployer ofacontractemployment: anemployee’s race, 23(4) Article The following may notconstitutelegitimategrounds forthe improper factors religion, disability, age, politicalview, orsocialeconomicstatusany other discriminated against onaccountofrace, ethnicorigin, language, colour, gender, 14(1) Article All personsareequalunderthelaw. (2)Nopersonmay be isprohibited their roleandparticipation otherwise thwarts 7(2) Article Any actthatviolatesthehumanrightsofwomen orlimits

• • 2015 ConclusionsandNextSteps • • 2015 Audit Findings • Conclusions oftheinitialHRIAReport 5.1.6 HARASSMENT 81 www.unicef.org/csr/files/UNICEF_REPORT_ON_CHILD_RIGHTS_AND_THE_MINING_SECTOR_APRIL_27.pdf 80 79 • • local hiringpreference: The • • • • BMSC EmployeePolicy (Policy 4)statesthatthecompany: workers to bring forth complaints or concerns related toharassment workers complaintsorconcerns tobringforth ensuring thatappropriateandconfidential channelsare available for strengthen grievance mechanismsatsite, attentionshouldbegiven to signs relatedtoharassment. Similarly, asthereareongoing to efforts human resourcemanagers shouldremainattentive toany warning As thereisheightenedattentiontoissuesrelatedstaffturnover, audit period There wasnoevidence orallegations ofharassmentduringthe 2013 or2014CSRReports orthe reports No incidentsofharassmentwere ininternal reported psychological harassment and femaleworkers have notraisedany issuesrelatedtosexualor with humanresourcemanagers,Interviews worker focusgroups incidents employeeas monitoringoftheinternal grievance mechanismsforany induction trainingontheharassmentpoliciesandprocedures, aswell Nonetheless, ongoing attentionthrough thisisanareathatdeserves employees—did notraiseany issuesorprevious incidentsofconcern. withemployees—indepartment. Interviews particular, withfemale in placetoraisecomplaintsconfidentiallythehumanresources BMSC hasstrictpoliciesagainst harassmentandhasprocedures “reasonable number” shallmean withregard to: expatriate workers who have specializedskills, knowledge andexperience. A 16.2, theCompany hastherighttohireandemploy areasonablenumberof 16.3. Subjectto Righttohireexpatriateexperts: Applicable Law and Article skills and/orqualifications employment ofEritreannationalsprovided thatsuchpersonshave therequired 16.2. Preferenceforlocalhiring: The Company shallgive preferencetothe performance implement mechanismsforthefairandconsistentmeasurementofemployee employees andlawskeeping withEritreannorms andenablesBMSCtoattractretain ensure fairentitlements, benefitsandremuneration, ofalevel which isin the immediateProjectareaandlocalcommunitiesinfirstplace procedureswhichadopt recruitment facilitatetheemployment ofpeoplefrom religion, ethnicity, gender orotherfactors will notdiscriminateagainst potentialorexistingemployees onthebasisof - - Mining Contractbetween theGovernment ofEritreaandBMSCprovides for See initialHRIAReport, p. 30forfulldiscussion andconclusions See initialHRIAReport, p. 29fordiscussionand conclusion. years fromthecommencementofCommercialProduction initially andnomorethan10%oftheCompany’s workforce afterfive (5) 16.3.2. MineralExploitation:no morethan20%oftherelatedworkforce 16.3.l. Development work: nomorethan20%oftheCompany’s workforce 79

• 2015 ConclusionsandNextSteps STANDARDS RELEVANT TO HARASSMENT • • • 2015 Audit Findings • Conclusions oftheinitialHRIAReport 5.1.7 CHILDLABOUR “The Company willnottolerate…sexualharassment, abusive behaviour.” Nevsun’s CodeofEthics: writing orpictures, andunwelcome sexualadvances orconversations.” jokes, statements, gestures, impedinganother’s movement, culturallyoffensive Project. Harassmentmay take many includingreligiousandethnicslurs, forms “Harassment ofany kindwillnotbetoleratedfrompersonnelengaged withthe BMSC CodeofConduct(Policy 5)states: access toemployment forwomen.” opportunities will conductthecompany’s businessactivitiestopromotejobequityandequal BMSC SocialResponsibilityPolicy (Policy 3)statesthat “BMSC management The Transitional CriminalCodeprohibitssexualviolence or treatmentinemployment andremuneration, onthebasisoftheirsex 65(1): Article Women may notbediscriminatedagainst asregards opportunity Labour ProclamationNo.118/2001 FREEDOM FROM DEGRADING AND INHUMAN TREATMENT HUMAN RIGHTS:RIGHT TO NON-DISCRIMINATION; WOMEN’S RIGHTS;RIGHT TO extremely remote period, andtheriskofchildlabouratBishaMine continuestobe There isnoevidence orallegations ofchild labourduringtheaudit was prioritizedasanemergingissueforthe2015HRIA Audit respect tostakeholder engagement androad safety—the latterofwhich attention wasgiven inrelationtochildren’s rightsissues, notablywith of additionalchildren’s rightstobeconsidered. Pilot on “Children’s RightsandtheMiningSector” provides anumber broadly thanjustchildlabour. Inthisregard, UNICEF’s Extractive company (andtheHRIAprocess)toconsiderchildren’s rightsmore Dialogue between Nevsun andUNICEFCanadaencouraged the labour appearstobeextremelyremote mainly fromanolderdemographic segment—theriskofchildoryouth attheBishaMine,against nationalservice theEritreanworkforce is all workers areover 18years ofage. Combined withtheprohibition the BishaMine, includingage verification procedurestoensurethat Policies inplacetoprohibitchildlabourat andproceduresarefirmly contractors’ campsduringtheauditperiod ofchildrenatminesite,There wasnoobservation camporin labourlawstandards inEritreanandinternational forwork atamine that futureemployees areatleast18years ofage, which meetsthe appropriate humanresourcesscreeningproceduresinplacetoensure There isnoevidence ofchildlabourattheBishaMine. BMSChas 80 81 As aresult, greater 51 SECTION FIVE Updated findings on human rights issues 52 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • Conclusions ofinitialHRIAReport ENVIRONMENT 5.2.1 HUMANRIGHTSRELATED TO THE COMMUNITIES HUMAN RIGHTS AND LOCAL 5.2 STANDARDS RELATED TO CHILDLABOUR • exploitation ofchildlabour.” Nevsun’s CodeofEthics:statesthat: “the Company willnottolerate… as childlabour.” inamannerthat…protectsagainst unethicalpracticessuch goods andservices management willconductthecompany’s businessactivitiesto “procure materials, BMSC SocialResponsibilityPolicy (Policy 3), laws andconventions ofchildlabour.” andprohibitallforms BMSC EmployeePolicy (Policy 4) (c) underground work, suchasmines… (b) work connectedwithtoxicchemicals, dangerous machines… (a) work ofpassengers inthetransport andgoods by road, railway, airandsea young employees, includingapprentices, which shall, inparticular, include: 69(1) Article The Ministermay, by regulation, issuealistofactivitiesprohibitedto 68(1)ItisprohibitedtoemployArticle apersonundertheage year offourteen s Labour ProclamationNo.118/2001 HUMAN RIGHTS:FREEDOMFROM CHILDLABOUR; AND THE RIGHTSOF THE CHILD 85 84 83 82 Implementation oftheseplanshas been delayed, dueto inpart indicators andresponsibilitiesforimplementation andmonitoring. Standards (2012)have beendeveloped, includingtimelines, Detailed Environmental Management PlansinlinewithIFCPerformance standardsandbest practices and implementinginternational committed togoing beyond compliancewithdomesticlegal standards revision ofthesestandards. This isoneoftheareaswhere BMSCis Performance Standardsand updatingtheminlinewiththe2012 Eritrean environmental regulationswiththeadoptionofIFC environmental management by supplementingitscompliancewith BMSC hasadoptedaresponsibleandprogressive approachto Mine orby itsbusinesspartners should alsoensurethatthereisnochildlabourbeingusedattheBisha and contractors’ workers have beendischarged fromnationalservice The screeningprogram thathasbeenput inplacetoensurethatBMSC and indocksideswarehouses… accessed at: http://ceowatermandate.org/files/business-hrws-guidance.pdf UN GlobalCompactCEO Water Mandate, “Guidance for CompaniesonRespectingtheHumanRightsto Water andSanitation:BringingaHuman RightsLenstoCorporate Water Stewardship” 2015), (January For example, waterwasranked astheleadingsocialbusinessrisk(by impact)atthe2015 World EconomicForum. http://reports.weforum.org/global-risks-2015/part-1-global-risks-2015/introduction/ 2014 CSRReport, p. 37. SeeinitialHRIAReport, pp. 31-33fordiscussionandp. 33forconclusions. states thatBMSCwill: “abide by minimumage 82 it is stated that BMSC it isstatedthatBMSC • 2015 Audit Findings • • • environment. Key are: factorsinthisdetermination Committee, waterremainstheleadinghumanrightsissuerelatedto withmanagers,interviews communityleaders, andtheimpactreview documentation,From areview andinternal ofthe2014CSRReport andrightsofend-users the concerns also shouldincorporateongoing consultationwithandconsiderationof strive fortechnicalandscientific good practiceattheminesite, but that BMSC’s approachtoenvironmental management shouldnotonly ongoing duediligence. Furthermore, humanrightsprinciplessuggest additional rationaleforBMSCtoprioritizewater-relatedimpacts human rightsimpacts. Therefore, ahumanrightslensprovides an the mine’s productionneedsorpotentialpollutionalsoamountto Any impactsonwateravailability, accessibility, andqualityrelatedto riskfromanenvironmentalleading long-term andbusinessperspective. have experts andexternal identifiedwater-relatedissuesasa internal route.such asdustandnoiserelatedtothetransportation However, fromthemostvisibleimpacts environmental issuesasaconcern—apart withcommunityleadersfromnearby villagesInterviews didnotidentify human rightsduediligence attheBishaMine pointsforongoing Plans representsoneofthemoststrategicentry rights considerationsintotheEnvironmental andSocialManagement be genuine andsharedacrossmanagement. The integration ofhuman commitment totheirimplementationasanongoing priorityappearsto personnel changes intheEnvironmental Department, however BMSC’s international watermanagementinternational consultancyhasbeenretained to the Mogoraib aquifer–themine’s mainwatersource. A reputable been commissionedtobetterunderstand themine’s impact on Additional hydrological investigations andgroundwater studieshave Mine—including asahumanrightsissueforthenearby communities of awareness ofwateratandaroundtheBisha oftheimportance ontheImpactReviewwater experts Committee, there isahighdegree In discussionwithmanagers intheenvironmental and department ------with thegreatest impactonbusiness Globally, waterisincreasingly recognisedastheglobalsocialrisk an impactoncommunityaccesstowaterandquantity communities alsousethisaquifer, decliningwaterlevels may have diligence arebeingmadeby leadingcompanies Links between corporatewaterstewardship andhumanrightsdue in monitoringwells closetotheproductionwell. notesa1.18metredeclinesince2011 the 2014CSRReport aquifer sincethebeginningofproductionin2011. Inparticular, There issomeevidence ofdecliningwaterlevels intheMogoraib mine transitionstozincprocessing increaseswillcontinueasthe and itisanticipatedthatfurther 2013 to2014asaresultofthetransitioncopperprocessing There wasanincreaseof29%inwateruseattheBishaMinefrom 84

83 85 As two local • 2015 ConclusionsandNextSteps • • • • 87 UNGlobal CompactCEO Water Mandate, p. 17. 86 BMSC anddifferentlevels ofgovernment aboutpotential water Nonetheless, thefactthatwaterismainfocusofdialogue between aboutnegativenot raisedconcerns impactsontherighttowater. environment at the BishaMine. To date, community leadershave Water remains theleadinghumanrightsissuerelatedto Recommendation #4ontheIFCPerformance Standards rights, discussionintheSection thereis further Three related to HRIA mitigate thepotentialimpactsonenvironment andhuman ofthemanagementIn terms systemsinplacetoaddressand period include: discussed withmanagers andstakeholders duringtheassessment Other potentialhumanrightsrisksrelatedtotheenvironment thatwere priorities to potablewaterisalsooneoftheGovernment ofEritrea’s national pilot projectsfortheCommunity Assistance Projects. Improving access this reason, hasbeenprioritizedforthe waterinfrastructure supporting private watersuppliersorby travelling todistantwatersources. For access towater, with many communitymembersobtainingwaterfrom be noted, however, thatnearby communitiesdonothave reliable on therighttowaterfrommine’s operationsatpresent. Itmust withcommunityleadersdonotpointtospecificimpacts Interviews is beingbuiltwithatarget ofbeingoperationalinQ12016 the mine’s processingplant. Inthisregard, anew watertreatmentplant fromthe recovery Tailings Management Facility (TMF)tobere-usedin andinvestmentsAdditional efforts arebeingmadetoimprove water that alsousethisaquifer impacts onthedownstream waterquality andquantityforcommunities wells aboutpotential thatshouldhelpprovide information further complete. Part ofthiswork willinvolve drillingadditionalmonitoring thesestudies—whichundertake willtake approximately12monthsto 2014 CSRReport, p. toNote13ofNevsun’s 41(referring 2014auditedconsolidated financial statements). - - - - affected stakeholders potential humanrightsimpactsoncommunitymembersandother steptoensure thatthe mine closureplanin2016isanimportant 31, 2014). reclamation costs(with$34.1millionestimatedasofDecember needed. The BishaMineisrequired toupdatetheclosureand and planning(atleast10years), which good practicesuggests is is areasonableamountofleadtimeformineclosurepreparation or extensionoftheBishaMine’s operations, itappearsthatthere enthusiasmregardingthe current thepotentialforexpansionand/ license areaandsocialimpactsonnearby communities. Given Mine closure:presentsaseriesofenvironmental impactsonthe dust andotherpotentialcommunityhealthimpacts community heathassessmentthatwould cover issuesrelatedto considered. Inthisregard, therehasbeenconsiderationofa worker health, potentialimpactsoncommunityhealthwere also Dust: Indiscussionsaboutthepotentialimpactsofduston 86 The commitmenttodevelop aconceptualsocial • • STANDARDS RELATED TO HUMANRIGHTS AND THE ENVIRONMENT Article 22.3.2–EnvironmentalArticle management andrehabilitationprogramme plan 22.3.1–EnvironmentalArticle impactassessmentstudy 22.3–EnvironmentalArticle proceduresandguidelines 22.2–CompanyArticle toobtainenvironmental approvals 22.1–CompanyArticle tominimizeenvironmental impactandpollution 22–Environment,Article RehabilitationandProtection Against Lossand Waste The MiningAgreementbetween theGovernment ofEritreaandBMSC: national Action Plan needs self-assessmentforglobalenvironmental management, and developed a Programme (UNEP), theEritreangovernment conductedanationalcapacity andbiosafety.biodiversity IncooperationwiththeUNEnvironmental Eritrea hasratifiedanumberofUNConventions relatedtoclimatechange, Proclamation 162/2010 Eritrea hasadoptedarelatively new law onwater andsanitation:Water Guidelines inMarch1999 Eritrea hasadoptedNationalEnvironmental Assessment Proceduresand environmental damage, andforprogressive reclamation and Environment Protection, includingprovisions andmitigation forreporting of Eritrean MiningRegulationNo.19/1995, 29providesArticle forHealth, Safety safeguarding theenvironment ofthepeoplein for creatingtherightconditionstosecureparticipation and for ensuringtheirmanagement inabalancedandsustainablemanner; be responsibleformanagingallland, water, airandnaturalresources 8(3)Inthe interest ofpresentandfuturegenerations,Article theStateshall Eritrean Constitution FOOD RIGHT TO HUMAN RIGHTS:RIGHT TO WATER AND SANITATION; RIGHT TO HEALTH; safety, acceptability, andaffordability. key dimensionsofthisrightareavailability, accessibility, qualityand the potentialimpactsondownstream communities’ righttowater. The zincphase,and forthcoming thereisaneedforenhancedmonitoringof themine’sWith copper increasingwaterconsumptionforthecurrent of watertotheaffectedcommunities Program, oftheprioritizationtopic demonstratestheimportance projectsrelatedtotheCommunity andsupport infrastructure Assistance from theaquifer recycling ofwaterfromthe TMF andreducetheratethatwaterisdrawn atthemine,treatment plantisbeingconstructed which shouldenhance impacts ondownstream communities. Furthermore, anew water about themine’s impactsontheMogoraib aquifer—including potential recently beencommencedwhich shouldprovide betterinformation the humanrighttowater. Inparticular, amajorhydrological study has period which shouldcontributetoongoing duediligence relatingto initiativesA numberofimportant have beenlaunchedduringtheaudit consumption are atthegreatest riskofhumanrightsimpacts duetothemine’s water of Mogoraib and Aderat usethesameaquiferasBishaMine and 87 Inparticular, thecommunities

53 SECTION FIVE Updated findings on human rights issues 54 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea (SEHS) tooversee theseconcerns. Board hasappointedaSocial, Environmental, HealthandSafetyCommittee sites backtoahighenvironmental standardattheendofprojectcycle. The communities. ItistheCompany’s policythattheCompany allutilized willreturn in which itoperatestominimizeimpactthelocalecosystemsandhuman The Company alsoutilizesthebestenvironmental practicesinthejurisdictions CodeofEthics Nevsun • • BMSC’s SocialResponsibilityPolicy (Policy 3) • • • • • • • • • • • BMSC’s Environmental Policy (Policy 1) management andrehabilitationprogramme plan 22.5–CompanyArticle toimplementandcomplywithenvironmental 22.4– Article obligationAnnual reporting 22.3.5.Article –Ministertoapprove plan 22.3.4–CompanyArticle shallupdateplan 22.3.3–CompanyArticle may submitamendedproposedstudiesandplans 88 and socialissues actively consultwithlocalcommunitiestoidentifyandresolve environmental protection… conduct businesswithinaframework thatpromotes…environmental throughperiodicaudits onperformance monitor andreport operating practices incorporate anemergency preparednessandresponsesystemintostandard protection andpollutionprevention policies train, motivate andensurethatallemployees adheretoenvironmental management practices reduce, re-useandrecycleresources andimplementproperwaste management apply theprinciplesofBAT (Best Available Technology) to environment increasesandawarding contracts salary include environmental criteriaindecisions onpromotions, performance environmental awareness with employees, localcommunitiesandotherstakeholders topromote onenvironmental andencourage externally performance dialogue report and by implementingcorrective actionswhere needed developing environmental indicators, monitoringandauditingperformance, be committedtocontinualimprovement inenvironmental by performance with ISO14001:2004 establish andmaintainanEnvironmental Management System(EMS)inline environmental policy andimplementthecompany’s resourcestosupport commit thenecessary bestpracticestandardsorwhicheverindustry isthemorestringent ofthetwo; environmental lawscomply withallhostcountry andregulationstogether with See initialHRIAReport, pp. 34-35andconclusions onp. 35. • • 2015 Audit Findings • Conclusions ofinitialHRIAReport 5.2.2 COMMUNITYDEVELOPMENT delivery ofthepilot projects are: delivery availableFrom thelatestinformation fromsite, thenextstepsfor Recommendation #6. The key findingsare: summarized inthediscussionofimplementationHRIA The findingsrelatedtotheCommunity AssistanceProgram are precedentforresponsiblemininginEritrea another important goodwill withthecommunityleadersandcanhelpBishaMineset goals. ImplementingtheCAPasamatterofprioritywillhelp tomaintain as well astocontributenational, regional, andlocaldevelopment humanrights,to addresspotentialriskshumanrightsand/orsupport yet beenimplemented. This deprives BMSCofavaluable mechanism ofitsSocialManagementAssistance Planaspart Plans, theCAPhasnot of thosecommitments. While BMSChasdeveloped aCommunity community development andcommunityleadershave taken note BMSC hasmadepolicyandcontractualcommitmentstosupport ------Both pilotprojectsshouldbecomplete in2016 August orSeptember2015 project forcommunitywatersupply)isscheduledtocommencein Well drillingfor the Aderat watersupplyproject(aninfrastructure be issuedinSeptember2015 the community’s agricultural land)and acallforproposalsshould project (repairingawaterdiversion toprovide betterirrigation for Terms ofreference arebeingdeveloped forthe Tekeret watersupply as soonpossible are highandthereispressuretohave thepilotprojectsdelivered the localcommunities. At thesame time, communityexpectations impacts oftheCAPprojects are quitesignificant given theneedsof Even forrelatively modestamountsofmoney, thepotentialpositive communities coming months, bothofwhich willenhancewatersupplytolocal Two pilotprojectshave been prioritizedforimplementationinthe community expectations and participation intheprojects community expectationsandparticipation the sustainabledevelopment ofCAPprojectsandtomanage Committee anddeveloped implementationguidancetoensure The Environmental has establishedaSteering Department projects withregionalandnationaldevelopment priorities administrators toensurealignmentoftheproposedCAPpilot There have beendiscussionsbetween BMSC, zobaandsub-zoba 2015 and2016 budgeted CAPprojectsin atotalof$300,000USDtosupport progress madeonimplementationoftheCAPandBMSChas Through dialoguewiththeGovernment ofEritrea, therehasbeen 88 STANDARDS RELATED TO COMMUNITYDEVELOPMENT • • • 2015 ConclusionsandNextSteps • SUPPORT THE FULLRANGEOFHUMAN RIGHTS HUMAN RIGHTS:COMMUNITYDEVELOPMENT ACTIVITIES CANPOTENTIALLY projects—and shouldbereplicatedforfutureCAPprojects development results—ascommunitieshave inputandownership inthe development. Arguably thisapproachshouldcontributetosustainable projects provides apositive exampleofarights-basedapproachto community leadersandmembersinthedevelopment ofthetwo pilot planningwith The extensive consultationandparticipatory philanthropic orcommunityrelationsinitiative assessment processesaswell ashumanrightsduediligence andnota viewed ofthemine’s aspart ongoing socialandenvironmental risk water-related impactsrelatedtotheBishaMine’s operationscanbe other words, projectsthatcontributetomitigating potentialnegative water istheleadinghumanrightsriskrelatedtoenvironment. In makes sensefromahumanrightsperspective, since particularly The two pilotprojectshave prioritizedwater-relatedissues—which reinforce positive relationshipsbetween thecommunitiesandmine for development forthecommunitiesnearBishaMineandcan Assistance Program. This representsanew modelofpartnership process oflaunchingtwo pilotprojectsto inauguratetheCommunity affected communitiesandgovernment representatives, BMSCisinthe planningprocessinvolvingAfter lengthy discussionsandaparticipatory priorities discussedincludeeducation, healthandinfrastructure water projectsareprioritiesforthecommunity. Otherdevelopmental Discussions withcommunityleadersandmembershave that confirmed the hostandneighbouringcommunities the general welfare andenhancethequalityoflifeinhabitants livingin The Company shallassistinthedevelopment ofthecommunitytopromote 17.1. GeneralObligation toPromoteDevelopment 17–CommunityDevelopmentArticle The MiningAgreementbetween theGovernment ofEritreaandBMSC: Schemes(IRDS)toguidelocaldevelopmentIntegrated RuralDevelopment process ofdevolution totheregional(Zoba) level, Eritreaisputtinginplace to education, healthcare, andsocialsecurity. jobopportunity Through a related toeradicatingpoverty andproviding citizenswithbetteraccess Eritrea hasdeveloped anational development planwithvarious objectives through theirparticipation to enableallcitizensimprove theirlivelihood inasustainablemanner, development throughoutthecountry, andshalluseallavailable means (2) The Stateshallwork tobringaboutabalancedandsustainable material andspiritualneeds citizens’ rightstosocialjusticeand economicdevelopment andtofulfiltheir (1) The Stateshallstrive toensurethefulfilmentof tocreateopportunities 8,Article EconomicandSocialDevelopment The EritreanConstitution:

• • 2015 Audit Findings • Conclusions ofinitialHRIAReport 5.2.3 CULTURAL HERITAGE significance withinthelocalstudy areafortheproposedproject These fieldassessmentsfocussed on identifyingareasofarchaeological field investigations were developed andconductedin2004 and2005. conductedin2004,collected duringtheinitialfieldsurvey additional National MuseumofEritrea. Following thereview ofavailable data Assessment (ESIA)throughthreefieldassessmentsconducted by the oftheBishaMine’scompiled aspart Environmental andSocialImpact ofbackground,In terms was baselineinformation archaeology associated withtheBishaMine intotheexplorationactivities This wasreviewed oftheinquiry aspart duringtheauditperiod.the resultofarelocationsmallcemetery The issueofculturalheritage wasaddressedinthe2015 Audit as land use BMSC managers relatedtoculturalheritage hadnotraisedconcerns and At thetime, withcommunitymembers, interviews localworkers and The issueofculturalheritage wasnotassessedintheinitialHRIAReport. for thebenefitofitsemployees, contractorsandcommunity.” environment thatisorientedtoprotectthehealthandsafetyatitswork sites CodeofEthicsstatesthat: The Nevsun “the Company provides anoperating are subjecttoapproval oftherelevant government administrations.” development plans. All communityassistanceprojectsproposedby BMSC community assistanceprojectsareconsistentwiththeGovernment’s regional ofworkingplan setsoutastrategy withtheGovernment toensurethatany the sustainabledevelopment ofthecommunitiesneartoBishasite. The Assistance Plan(CAP). This plan “sets outstepsforBMSCtocontribute BMSC’s SocialandEnvironmental ManagementPlansincludeaCommunity of communityleaders about: communitygoodwill vs. seekers; and, opportunity torespectrequests BMSC’s CodeofConduct(Policy 5)alsoincludesrelatedcommitments • • management willconductthecompany’s businessactivitiesto: BMSC’s SocialResponsibilityPolicy (Policy 3)statesthatBMSC deductible fortaxpurposes Only MEMpre-approved communitydevelopment expendituresshallbe 17.3 CommunityDevelopment ExpenditurestobeDeductive beliefs andtraditionsoflocalcommunities The Company shallrecogniseandrespecttherights, customs, cultures, 17.2. Company toRespect Traditions solutions withlocalcommunitiesandregionalnationalgovernments build capacityby sharingenvironmental andsocialexperiences employees andtheirfamilies community involvement, community benefitsandthequalityoflifefor community healthandsafety, environmental protection, humanrights, conduct businesswithinaframework thatpromotesworker and 55 SECTION FIVE Updated findings on human rights issues 56 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 89 BMSCSocial Management Plan(2010), p. 4. • • • • • with alltherelatedexpensesassumed by BMSC to berelocateduponthecompletion ofaseriesreligiousceremonies, was reachedwiththecommunityandfamilymembersforcemetery deceased, aswell asnational, regional, andlocalauthorities. Agreement meetings withculturalandreligiousleadersfamiliesofthe preceded therelocationwasexplained. The processinvolved numerous Community RelationsDepartment, theconsultationprocessthat leaders, andmanagers fromtheEnvironment and Department withtheImpactReview Committee,Through interviews community significance ofculturalheritageto beapart andhasobvious religiousandspiritual 43 graves inrelationtoexplorationactivities. isconsidered A cemetery During theauditperiod, of there wasaneedtomove asmallcemetery 2010 BMSCSocialManagement Plan period.construction This waspreviously inSectionOneofthe reported communities andNationalMuseumtorelocategraves during the BMSC managers priorwork andIRCmembersreport withthe follows: conductedfortheBishaProject,surveys andcanbesummarizedas number ofarchaeologicalsiteswere identifiedduringthethreefield According totheBMSCCulturalHeritage Management Plan, alarge location ofhistoricalandculturalfestivals, events andrituals associated withlocalfolklore, mythology, andtraditionsthe landscapes, placesofworship, cemeteriesandgraveyards, places monuments, sitesandbuildings, historicalandculturally-significant resources, includingarchaeologicaldepositsandremains, historical Cultural heritage isdefinedintheESIAtoencompassawiderange of ------mortars, polishedstones, cores, flakes anddebitages blades, perforatedstones, hammerstones, pestles, stoneaxes, Lithic materialsidentifiedincluded grinding stones, scrapers, clay-made productshasdiminished) but duetowidespreaduseofplasticandmetalutensils, theuseof stillcontinuing, makingwasreportedly ofpottery (theart formation displayed various featuresindicatingbothrecentandancient Ceramics were conducted, identifiedinallfieldsurveys and they included social, cultural, andeconomic transformations that and oraltraditionsalludedtoalongunstudiedhistory occupied beforethe Turkish colonialperiod, which began in1557 Ethnographic inquiriesindicatedthattheareaseemstohave been pre-colonial periods maysurvey astheItalian, dateasearly Turkish, oreven the Some ofthetombs/burialsitesrecordedduringmostrecent (up to2006) theirdeadneartheoldBishavillagecommunities were stillburying indicated thatburialsiteschange frequentlyandthattheBisha toanumberofburialsites;oraltraditions pertaining surrounds areaand Evidence wascollectedintheprojectandsurrounding 89 • • 2015 ConclusionsandNextSteps • STANDARDS RELATING TO THE PROTECTION OF CULTURAL HERITAGE FREEDOM OFRELIGION HUMAN RIGHTS: THE RIGHT TO TAKE PART INCULTURAL LIFE; THE RIGHT TO and thefamiliesofdeceased procedures, andwasbasedontheagreement ofthelocalcommunities in2014thatfollowed these There wasarelocationofsmallcemetery and localauthorities—includingtheImpactReview Committee consent oflocalcommunities, andtheoversight ofnational, regional, or sacredsites, andany relocationrequirestheconsultationand ofculturalartifacts There arestrictproceduresrelatedtothediscovery Museum of relevant government authorities—includingtheEritreanNational community leaders, andreligiousleaders;(b)theoversight tohaveis reported beendonewith(a)theagreement ofthefamilies, There have beenthreeothersuchrelocationsinthepast, andeach procedure forotherrelocationsofculturalheritage orsacredsites. Environment Department, thatthisisthe itwasconfirmed “standard” withtheImpactReview Committeeandthe interviews In further • • • • Religious andSacredStructures/Areas: BMSC CodeofConduct • • • • BMSC SocialResponsibilityPolicy presentation oftheculturalandnaturalheritage” ontheirterritories effective andactive measuresaretaken fortheprotection, and conservation 24, 2001. The signatoriestothisConvention have agreed “to ensurethat Cultural andNaturalHeritage” (The World Heritage Convention) onOctober Eritrea ratified “TheConvention theProtectionof Concerning World Operations (theRegulations) (1995), Chapter4andLegal NoticeNo. 19/1995RegulationsonMining Proclamation toPromotetheDevelopment ofMineralResourcesNo. 68 24 Article “Creation ofProtectedSites” Material CulturalHeritage Proclamation(draft), ProtectionandConservation Eritrean Law Follow BMSCproject procedures ifchancefindsareencountered pebbles, andpilesofofferings. Recognise thatshrinesandsacredsites may includetrees, sheds, piles of program inordertoavoid creatingtheneedtodisturbsuchstructures) Do notdisturbshrinesandotherreligious monuments(adjustwork population Respect thereligiousshrinesandburialsitespracticesoflocal environmental andsocialissues actively consultwithlocalcommunitiestoidentifyandresolve customs andsocialvalues conduct activitiesinamannerthatrespectstraditional-userights, cultures, activities work toprotectculturalheritage resourcespotentiallyaffectedby our we work ofthecommunities,language andhistory regionsandcountriesinwhich actively promoteunderstandingby allBMSCemployees, ofculture, 92 91 90 • • Conclusions ofinitialHRIAReport 5.3.1 SECURITY AND HUMANRIGHTS RIGHTS ISSUES CROSS-CUTTING HUMAN 5.3 for theEritreanminingindustry standards andwhich canprovide opportunity anexampleandlearning where good BMSChasmadeacommitmenttointernational practice principles. Moreover, the Voluntary Principlesareoneoftheotherareas training on these into itssecuritypolicyandisimplementingfurther integrated the Voluntary PrinciplesonSecurityandHumanRights private securityforces. Therefore, itisappropriatethatBMSChas There areinteractionsbetween theBishaMineandpublic and and peaceful communities appearstobesafe,Bisha Mineandinsurrounding calm, about securityandhumanrights, theoperatingenvironment atthe perceptionsaboutthesituation inEritrearaiseconcerns While external • • • • • • potentially impactedby projectactivities. Site specificprotection/retrieval planswillbedeveloped foreachknown site procedures fordealingwithChanceFinds to map, documentandexcavate known culturalresourcesincludingthe through construction, operationandclosure. The plancontainsthemethods through theimplementationofeffective mitigation andmonitoringmeasures Project hasminimalimpactontheculturalresourcesofprojectarea, The CulturalHeritage Management PlanisdesignedtoensurethattheBisha BMSC CulturalHeritageManagementPlan Nevsun PressReleaseofMarch 22, 2015:www.nevsun.com/news/2015/march22. resources Assist Companiesandtheir Auditors Assess Implementationofthe Voluntary Principles onSecurityandHumanRights, May 2015, accessedat:www.globalcompact.ca/ UN GlobalCompactNetwork Canadaand Business forPeace, Auditing Implementationof Voluntary PrinciplesonSecurityandHumanRights: A GuidanceDocument to See initialHRIAReport, pp. 36-37fordiscussionandp. 37forconclusions. adequately specific assessmentforeacharchaeologicalsitetoensureitisprotected Close consultationwiththeNationalMuseumwillbemaintainedregarding that requireadditionalsubsurfaceactivitiesmay uncover new artefacts The Environment Manager monitorwilloversee any routinemineoperations archaeological management ofculturalheritage/locations deemedtorequirespecialattentioninterms The Environment Manager willbeemployed tomonitoractivitiesat interpretation ofculturalresources familiar withtheareaandlocalcommunitiesonissuesrelatedtosite fashion• timely a in undertaken be data collectedduringmitigation isanintegral oftheprocessandwill part Scientific andculturalanalysisinterpretationofthearchaeological National MuseumofEritrea conducted by experiencedarchaeologists/work teamsrecognisedby the All testingandcollectionwillbedoneunderanapproved planand are present ifburiedculturaldeposits activitiestodetermine sites priortoconstruction Subsurface evaluative testingwillbeconductedatpotentiallythreatened 90 BMSC willwork withbotharchaeologists

• • 2015 Audit Findings • • • • updated riskassessmentworkshop plannedforSeptember2015 issues fromahumanrightsperspective: Principles) have provided theframework attentiontosecurity forfurther The Voluntary PrinciplesonSecurityandHumanRights(the Voluntary included inSectionFive issues fortheauditperiod;andadetaileddiscussiononthissubjectis Security andhumanrightswasidentifiedasoneoftheemerging investigation. the assessmentperiod, which subjecttoanongoing iscurrently May 2015. However, actofvandalism therewasonereported during and communities while theauditingactivitiesconducted inJanuary and peacefulasduringprevious visitstothemineandsurrounding The securitysituationaroundtheBishaMineappearedassafe implementation ofthe Voluntary Principles auditisplannedfor2016toassess progressA 3rdparty onthe suppliers rights mattersthathave beenimplementedforBMSCcontractorsand workersthe prohibitionagainst andotherhuman nationalservice will helpadvance thedialogueandscreeningproceduresrelatedto thatprovidessecurity firm securityguardsfortheBishaMine. This engagement forfurther opportunities withBinaeSecurity, theprivate The traininginitiative forthe Voluntary Principleswillprovide November 2015 Voluntary Principlestraining package totheBMSCsecuritypersonnelin Operating ProceduresinSeptember2015;andacomprehensive conducted inMay 2015);workshops onriskassessment andStandard for the Voluntary Principlesincluding:aneedsassessment(which was mandated todesignanddeliver atrainingandimplementationinitiative An independent, hasbeen Canadiansecurityandhumanrightsexpert ------Voluntary Principles a guidancedocumentforauditingtheimplementationof Compact Network forCanadadeveloped andrecentlypublished stakeholders intheCanadianminingindustry. The UNGlobal Voluntary Principlesby theGovernment ofCanadaandvarious During theauditperiod, therehasbeenspecificattentiontothe Principles criteriaforriskassessments the sitelevel, of inEritreaandtheHorn Africa usingthe Voluntary There isadesiretoupdatetheassessmentofsecurityrisksat fall of2015 totheBMSCsecuritypersonnelin being preparedfordelivery Principles hasbeenprovided andanadvanced trainingpackage is for theSecurityDepartment. Basictrainingonthe Voluntary follow-up totheHRIARecommendation onhumanrightstraining ofthe Principles onSecurityandHumanRightsatsiteaspart There hasbeenincreasedinterestinandattentiontothe Voluntary 92 The resultsof theinvestigation the shouldinform 91

57 SECTION FIVE Updated findings on human rights issues 58 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea STANDARDS RELATED TO SECURITY AND HUMANRIGHTS • • 2015 ConclusionsandNextSteps 93 Seediscussion onpp. 38-40 andconclusionsonp. 40. • BMSC SecurityPolicy • • • BMSC HealthandSafety Policy (Policy 2): 2. ortocruel, Nopersonshallbesubjectedtotorture inhumanordegrading 1. The dignityofallpersonsshallbeinviolable 16-Rightto HumanDignity Article 2. Nopersonshallbedeprived withoutdueprocessoflaw ofliberty 1. Nopersonshallbedeprived oflifewithoutdueprocesslaw 15-Rightto LifeandLiberty Article 4. The defenseandsecurityofEritreadependonthepeopletheiractive 3. The defenseandsecurityforcesshallbecompetentsubjectto 2. The defenseandsecurityforcesareanintegral ofsociety, part andshallbe 1. The defenseandsecurityforcesofEritreashallowe allegiancetoandobey 12-National DefenseandSecurity Article Eritrean Constitution: PUNISHMENT; RIGHT TO JUST AND FAVOURABLE WORKING CONDITIONS FROM TORTURE, CRUEL, INHUMAN AND/OR DEGRADING TREATMENT OR HUMAN RIGHTS:RIGHT TO LIFE;RIGHT TO LIBERTY AND SECURITY;FREEDOM of the 2016 Voluntary Principleswillbeconductedinearly completed by auditofimplementation theendof2015anda3rd party security guardsprovided by BinaeSecurity). This initiative willbe human rightstotheBMSCsecuritypersonnel(includingprivate Procedures, andwilldeliver acomprehensive trainingonsecurityand update ofthemine’s securityriskassessmentandStandardOperating security andhumanrightsexpert. This initiative an willsupport ofaCanadian Principles hasbeenlaunchedwiththeparticipation A new initiative fortrainingandimplementationofthe Voluntary Eritrean securityforces engagement asabasisforfurther withthe Principles canalsoserve training andengagement withBinaeSecurity. Over time, the Voluntary promoted attheBishaMineasatooltoadvance humanrights The Voluntary PrinciplesonSecurityandHumanRightsarebeing Rights approaches andactionsby the Voluntary PrinciplesonSecurityandHuman To treatallpeoplewithrespectanddignity, and to beguidedinour a way aspossible rights, avoids creatingconflict andaddressessecuritythreatsinaspeaceful ensure thatsecurityismanaged inaway thatrespectsandprotectshuman sites outriskassessmentsinrelationtosecurityissuesat eachofitsproject carry securing itsoperations, thosethatrelatetotheuseofforce particularly adhere tolocallaws aswell standardsonlaw asinternational enforcementin participation accountable underthelaw productive andrespectfulofthepeople the Constitutionandgovernment establishedthereunder treatment orpunishment

• • Conclusions ofinitialHRIAReport 5.3.2 GRIEVANCE MECHANISMS its stakeholders. and assetsinaway thatminimizesconflictsandrespectsthehuman rightsof standard inouroperationsisdesignedtohelptheCompany protectitspeople subcontractors aretreatedwithdignityandrespectatalltimes. The security implemented numerouspoliciestoensureallemployees, contractorsand Voluntary PrinciplesonHumanRights&Security. The Company has CodeofEthics: Nevsun • • • • BMSC CodeofConduct(Policy 5) refers expresslytotheUNCodeofConductforLaw EnforcementOfficials The above-noted standardsonlaw commitmenttointernational enforcement • • • • • • • • • • mechanisms. topromotethem totherelevant Itisstillnecessary Just astheBishaMineisrelatively young, soarethese grievance those insideandoutsideofEritrea that its Whistleblower Policy stakeholders including isopentoexternal community members, andcontractors. Inaddition, Nevsun hasclarified remedies todifferentstakeholder groups: itsown workers, local of grievance mechanismswiththeobjective ofproviding accessto responsibility torespecthumanrights. BMSChasdeveloped anumber component forproviding accesstoremedy andmeetingthecorporate Developing effective operationalgrievance mechanismsareacritical produce identificationuponrequest no accesstositeby non-authorisedpersonnel. Workers mustbewilling to appropriateidentificationatalltimesandtherewillbe Workers mustcarry offirearms, explosives etc.The carrying isprohibited through appropriatelegal channels Use offorcewillnotbetoleratedandalldisagreements mustberesolved The Projecthasazerotolerancetocrimesandviolence operations To useproven toincreasethereliabilityandefficiencyofour technology procedures security staffwithappropriaterecruiting, training, resourcesandcontracting To maintain a highdegree ofprofessionalism, knowledge andintegrity among To operatein accordancewiththelaws ofEritrea continuously improve To investigate andanalyzesecurityincidents, totake appropriateactionand shareholders fromlosstheft, fraud, andotherinappropriateactivity To establish programs thatprotectemployees, company assetsand plans To beprepared torespondincidentswithappropriateandtestedresponse incidents To identifyand manage riskseffectively, withafocusonpreventing security achievementsupport ofBisha’s businessobjectives To establish security strategies, plans, standards, policiesandproceduresto secure working environment To provide andresourcesrequiredtodevelop thesecurityexpertise asafeand secure working environment To provide andresourcesrequiredtodevelop thesecurityexpertise asafeand 93 • • 2015 Audit Findings • following actions: through Nevsun’s Whistleblower Policy. byThis hasbeensupported the coordinate thevarious grievance mechanisms available atsiteand Community RelationsandHumanResourcestostrengthen There have beenconvergent fromthe Environmental efforts Department, HRIA Recommendation#5, which isdiscussedinSection Three period,Mine duringthereporting duetoimplementationofthe inpart There hasbeengreater attentiontogrievance mechanismsattheBisha addressed facilitate ongoing anddialogueabouthow reporting issueshave been coordinated trackingofthevarious grievance mechanismsshouldalso that any foramoreproactive trendscanbeascertained response. The mechanisms toensureappropriatefollow-up actions aretaken and tocoordinatethetrackingofallgrievanceIt isimportant ensuring theireffectiveness andcredibility adjustments tothedesignofgrievance mechanismwithaview to of consultingwithstakeholders provides tomake anopportunity stakeholders andtoexplaintheproceduresforusingthem. The process ------all contractorsandsuppliersnot justSegen Construction specialized grievance mechanismhasbeenexpandedtoapply due diligence extends toallofitscontractorsandsuppliers, the promoted. Given thatBMSC’s responsibilityforhumanrights to greater accesstoremedy forSegen workers andshouldbe the Bishacamp, thenew grievance mechanismcancontribute As theNCEWdoesnothave representative apermanent at Collective Agreement between theNCEWandSegen Construction. mechanism cancomplementthemechanismsthatexistunder Confederation ofEritrean Workers abouthow thisnew grievance has beenongoing dialoguewithSegen workers andtheNational workers attheBishacampwasdeveloped in2014andthere A specializedgrievance mechanismforSegen Construction proposals toaddressworker concerns as discussionswiththeBMSCBoardofDirectorsaboutother reviewcomplaints (e.g. andpay salary scaleadjustment), aswell resources initiatives have toresolve beenundertaken systemic turnover issuesduringtheauditperiod, anumberofnew human channels. andformal informal Given theattentiontostaff grievancesthe internal fromworkers thatareraisedthrough continuestomanageThe HumanResourcesDepartment dialogue proceduresandinformal a combinationofformal the communitygrievance mechanismcontinuestooperatethrough rolled-out by theendof2015. While theSOPsarebeingupdated, of theupdatedSOPshasbeenreviewed andisanticipatedtobe the UNGuidingPrinciplesonBusinessandHumanRights. A draft according tothecriteriaofIFCPerformance Standardsand Operating Proceduresforthecommunitygrievance mechanism isupdatingtheStandard The CommunityRelationsDepartment • • • • non-judicial mechanisms trend towards improving accesstoremedy through various judicialand operations outsideofCanada. ofalargerThis isarguablypart global series ofcasesagainst Canadianminingcompaniesrelatedtotheir commentingonthemeritsof thelawsuit,Without ofarecent itispart andworking conditionsattheBishaMine.respect tonationalservice withallegationsColumbia SupremeCourt fromthreeindividualswith In November 2014, alawsuit wasfiledagainst Nevsun intheBritish the NationalConfederationofEritrean Workers inthisregard the BishaMine, discussionswith althoughtherehave beenpreliminary As previously discussed, noemployees’ thereiscurrently associationat collective issuescouldbeidentifiedandaddressedmoreproactively. address collective issues;however, questionswere raisedaboutwhether appreciation forsomeofthenew initiatives to beingundertaken In thecontextofdiscussionsaboutstaffturnover, workers expressed promoted inthecommunitieswhen they arefinalized Operating Proceduresarebeingupdatedandwillbeexplained in receivingcomplaints. As notedin Section Three, theStandard of theBishacommunityofficesandCommunityLiaisonOfficers and membersdemonstratedaconvergent understandingoftherole senior management atthemine. withcommunityleaders Interviews grievances andensuringfollow-up withtherelevant and departments Community Liaisonofficershave aroleinreceivingandrecordingthe as pointsofaccessforcommunitymemberswithgrievances. The showed how theBishaofficesinnearby communitiesareused 2015auditvisit,During theJanuary theCommunityRelationsmanager grievancethe formal mechanismisseenasmoreofa “last resort” with supervisors,managers andtheHumanResourceDepartment. Using However, toresolve issuesinformally thereisapreferenceforfirsttrying of thesite-level grievance mechanismsandawillingnesstousethem. andfocusgroups withworkersInterviews revealed thatthereisawareness - - - - contribute tocontinuousimprovement attheBishaMine with amessage encouragingemployees tousethemand there isapresentationonthesevarious grievance mechanisms In thehumanrightsinductiontrainingmodulefornew employees, mechanism atsite there islikely aneedforgreater promotionandawareness ofthis Although the Whistleblower Hotlinewastestedandisworking, were raisedthroughthismechanismduringtheauditperiod. financial issues, includinghumanrights. Nohumanrightsissues The Nevsun Whistleblower Policy hasbeenexpandedtocover non- 59 SECTION FIVE Updated findings on human rights issues 60 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • 2015 ConclusionsandNextSteps the grievance mechanisms, aswell astheir overall coordination: The following aresomesuggested nextstepsforstrengtheningeachof stakeholder groups, toaccess andensuringthattherearenobarriers of grievances, promotionoftherelevant mechanismsfordifferent resolution to ensurecoordinationatsite—includingtrackingofinformal areneeded period; thereisalsoanacknowledgment efforts thatfurther has beenongoing attentiontothesegrievance mechanismsintheaudit and contractorsattheBishaMinecontinuetobeusedrefined. There The various grievance mechanismsthatapplytoworkers, communities, ------issues forworkers thatgo beyond asingledepartment Working usefulinidentifyingcollective Groupcanbeparticularly composition,Because ofitscross-departmental theproposedCSR improvement ofthevarious grievance mechanismsatsite. for regulardiscussionaboutthecoordinationandcontinuous and BMSC Workers’ RightsPolicy atsite)shouldbecomeaforum in theimplementationofnew Nevsun HumanRightsPolicy The proposedCSR Working role Group(that willhave aprimary adjusted, orsupplementedwithadifferentmechanismatsite matters, considerwhether promoted, itneedstobefurther If the Whistleblower Hotlineisnotbeingusedfornon-financial feedback can helppromoteandrefinethemechanismbasedontheir access areprovided. withcontractors’ interviews workers Further promoted totherelevant workers andthatconfidentialpointsof Ensure thatthegrievance mechanismforBMSCcontractorsis of trendsrelatedtoworker concerns areusedtosupplementmanagement’sinterviews understanding trends andaddresscollective issuesproactively. Ensurethatexit grievanceon theinternal mechanismsforBMSCworkers toidentify Given therecentattentiononstaff turnover issues, focusattention in theBishacommunityoffices communities throughmeetingsandmaterials(inlocallanguages) have beenfinalized, ensurethatthey arewidelypromotedinthe When theupdatedSOPsforcommunitygrievance mechanism STANDARDS RELATED TO GRIEVANCE MECHANISM Ethics. accounting matterstoincludeviolationsorsuspectedoftheCode Nevsun expandedthescopeofitsWhistleblowerPolicy beyond financial contractors andsuppliersattheBishaMine has beendeveloped forSegen employees andisbeingupdatedtoapplyall Ltd.GrievanceA specificSegenConstruction ProcedureattheBishaMine Standards (2012) environmental andsocialmanagement plansinlinewithIFCPerformance for localcommunities, which oftherevision wasupdatedaspart ofthe The BMSCStakeholderEngagementPlancontainsagrievance mechanism the proceduredefined by theBMSCStakeholder Engagement Programme.” member ofthecommunityrelationsteam. Any complaintsshallbetreatedunder community leadersshallbedirectedtotheCommunityLiaisonOfficersorother “Respect requestsofCommunityLeaders: Any request/issueraisedby The BMSCCodeofConduct(Policy 5)statesthefollowing: complaints.” the timely, confidentialandappropriateresolutionofemployee grievances and The BMSCEmployeePolicy (Policy 4)statesthatBMSCwill “provide avenues for issues.” consult withlocalcommunitiestoidentifyandresolve environmental andsocial The BMSCSocialResponsibilityPolicy (Policy 3)statesthatBMSCwill “actively 127– Article The LabourRelationsBoard InstanceLabourCourts 126–First Article well asissuesinvolving Collective Agreements Labour RelationsBoardfortheadjudicationofindividualemployment casesas Labour Proclamation118/2001provides andthe forasystemofLabourCourts laws aswell astheintroduction of new laws forenforcement encompass changes refinementoftheprocedural inthejurisdictionofcourts; ofjustice.aim ofenhancingaccesstoandbetterdelivery The amendments 120/2012. These laws were promulgated by thegovernment in2012withthe Proclamations No.166/2012, 167/2012, 168/2012andLegal NoticeNo. 2. Any personswithanadministrative question, whose rightsorinterestsare 1. Any personwithanadministrative questionshallhave therighttobeheard 24- Article Administrative Redress The EritreanConstitution: HUMAN RIGHTS: ACCESS TO REMEDY redress interfered withorthreatened, shallhave therighttoseekdueadministrative and equitableanswers fromthem respectfully by theadministrative andtoreceive officialsconcerned quick DUE DILIGENCEAT THEBISHAMINE EVOLUTION OFHUMANRIGHTS

SIX SECTION 61 SECTION SIX Evolution of Human Rights Due Diligence at the Bisha Mine 62 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 95 94 As mentionedabove, theUNGuidingPrinciples onBusinessandHumanRightshave now been includedby theGovernment of Canada asstandardsthatareexpectedofCanadian extractive sector companies coherent package ongoing thatsupports humanrightsduediligence. willalsobehighlightedtoshowin thereport how they fit together ina period. Recommendationsandsuggested nextstepsoutlinedelsewhere provided alongwithhighlightsoftheprogress made duringtheaudit In thissection, relevant willbe excerptsfromtheinitialHRIAReport Bisha MineinaccordancewiththeUNGuidingPrinciples. blocks” thatwere inplaceforongoing humanrightsduediligence atthe alsoincludedasectionthat outlined the The initialHRIAReport “building- RESPECT HUMANRIGHTS THE CORPORATE RESPONSIBILITY TO Principles onBusinessandHumanRights. of thecorporateresponsibilitytorespecthumanrightsaccordingUNGuiding The conclusionsofthe2015 Audit aroundthedifferentcomponents arestructured place so unlessthey have policiesandprocessesin certain show thatthey respecthumanrights. They cannotdo Businessenterprisesneedtoknow and Commentary: (c) (b) (a) circumstances, including: policies andprocessesappropriatetotheirsize rights, businessenterprisesshouldhave inplace In ordertomeettheirresponsibilityrespecthuman THE BISHAMINE DUE DILIGENCEAT HUMAN RIGHTS EVOLUTION OF See initialHRIA Report, pp. 41to46 Business andHumanRights initsnew HumanRightsPolicy. in theiroverseas operations;and, humanrightsduediligence isoneofthecoreconcepts ofthecorporateresponsibilitytorespecthuman rights. Nevsun hasalsoincludedthe UNGuidingPrincipleson contribute human rightsimpactsthey cause ortowhich they Processes toenabletheremediationofany adverse their impactsonhumanrights prevent, mitigate andaccountfor how they address A humanrightsduediligence processtoidentify, respect humanrights A policycommitmenttomeettheirresponsibility

95 94

6.1 • • • have thefollowing strengths: In relationtopolicycommitmentsattheBishaMine, Nevsun andBMSC frominitialHRIAReport Observations POLICY COMMITMENT foundation forenhancedhumanrightsduediligence attheBishaMine. of Nevsun’s adoptionofastand-alonehumanrightspolicyas The following tableshows theprogress thathasbeenmadeinterms HUMAN RIGHTSPOLICY ADOPTION OF A STAND-ALONE (e) Is reflected in operational policies and procedures necessary toembedit (e) Isreflectedinoperationalpoliciesandproceduresnecessary (d) Ispubliclyavailable toall and externally andcommunicatedinternally (c) Stipulatestheenterprise’s humanrightsexpectationsofpersonnel, business by(b) Isinformed relevant expertise and/orexternal internal (a) Isapproved atthemostseniorlevel ofthebusinessenterprise a statementofpolicythat: enterprises shouldexpresstheircommitmenttomeetthisresponsibilitythrough As the basis for embedding their responsibility to respect human rights, business Operational Principle directors oftheCompany anditssubsidiaries The Nevsun CodeofEthicsappliestoallemployees, officersand approved by theirrespective Boards of Directors The Nevsun CodeofEthicsandBMSCoperationalpolicieshave been Ethics andtheBMSCoperationalpolicies Human rightsandrelatedissuesareincludedintheNevsun Codeof throughout thebusinessenterprise personnel, andotherrelevant businesspartners parties services directlylinked toitsoperations, andother parties partners productsor

• • • • Next Steps • • • Progress during2015Audit Period • • • the rolloutofBMSC Workers’ RightsPolicy Encourage ENAMCO andtheGeneralManager toplay avisiblerolein the nextstepsinclude: Mine throughcoordinatedpromotionandtrainingactivities. Someof theBMSC Finalize Workers’ RightsPolicy androllitoutattheBisha HRIA Recommendations effective implementationofthepolicycommitmentandfollow-up on CSR thecross-departmental Formalize Working Grouptoensure Mine throughcoordinatedpromotionandtrainingactivities theBMSC Finalize Workers’ RightsPolicy androllitoutattheBisha The Nevsun HumanRightsPolicy: Code ofEthics Policy andhasintegrated asectiononhumanrightsintotheNevsun As discussedabove, Nevsun hasadoptedastand-aloneHumanRights detailed operationalpoliciesandproceduresfortheBishaMine Specific humanrightsissuesarereflectedexplicitlyandimplicitlyinthe available andtobusinesspartners andarecommunicatedinternally The Nevsun CodeofEthicsandBMSC operationalpoliciesarepublicly subcontractors BMSC CodeofConductappliestoallemployees, contractorsand The BMSCoperationalpoliciesapplytomanagement, andthe ------distribution ofpromotionalmaterialsintheCLOoffices the on-going engagement ofthecommunityliaisonofficers and ofthenew policythrough Ensure thatcommunitiesareinformed going engagement withthemonhumanrights Bisha’s contractors, subcontractorsandsupplierstodrive theon- Ensure thatthenew policyrequirementsarecommunicatedto policy Align thehumanrightstraininginitiatives atsitewiththenew about thenew policyatsite Develop materials(posters, supporting etc.)topromoteawareness policy communicating thecommitmentofseniormanagement tothenew Leadership fromENAMCOandtheGeneralManager atsitein policy’s implementation Requires thecreationofasite-level committeeforoversight ofthe rights impactassessmentwhere necessary Requires specifichumanrightsduediligence, includinghuman Requires ahumanrightspolicyateachoperation Human Rights Refers explicitlytotheUNGuidingPrinciplesonBusinessand ONGOING HUMANRIGHTSDUEDILIGENCE tracking, examinedinturn. andcommunicatingexternally—are due diligence—assessing impacts, integrating andacting, Bisha Mine. Eachoftheconstituentelementshumanrights ofongoingmade interms humanrightsduediligence atthe The following sectionoutlinesthe progress thathasbeen DUE DILIGENCE PROGRESS ONHUMANRIGHTS 6.2 • • frominitialHRIAReport Observations ASSESSING IMPACTS ongoing humanrightsduediligence. The following discussionexamineseachofthemaincomponents (c) Shouldbeongoing, recognizingthatthehumanrightsrisksmay change over (b) incomplexitywiththesizeofbusinessenterprise, vary Will theriskof (a) Shouldcover adverse human rightsimpactsthatthebusinessenterprisemay diligence: responses, andcommunicating how impactsareaddressed. Humanrightsdue human rightsimpacts, integrating andactinguponthefindings, tracking rights duediligence. The processshouldincludeassessingactualandpotential adverse outhuman humanrightsimpacts, businessenterprisesshouldcarry In ordertoidentify, prevent, mitigate andaccountforhow they addresstheir Operational Principle (b) Involve meaningfulconsultationwithpotentiallyaffectedgroups andother humanrightsexpertise (a) Draw and/or independentexternal oninternal business relationships. This processshould: they may beinvolved eitherthroughtheirown activitiesorasaresultoftheir and assessany actualorpotentialadverse humanrightsimpactswithwhich In ordertogauge humanrightsrisks, businessenterprisesshouldidentify Operational Principle an updatedStakeholder Engagement Plan updated toreflecttherevised IFC Standards.Performance Thisincludes The SEIA’s Environmental andSocialManagement Plansarebeing accordance withtheEritreanguidelines forimpactassessment consultation withpotentiallyaffectedstakeholders in wasundertaken conducted inaccordancewiththeIFCPerformance Standards, and ofthelicensingprocess.for theBishaMineaspart The SEIAwas A SocialandEnvironmental Impact Assessment (SEIA)wasundertaken time asthebusinessenterprise’s operationsandoperatingcontextevolve severe humanrightsimpacts, andthenaturecontextofitsoperations linked toitsoperations, by itsbusinessrelationships productsorservices cause orcontributetothroughitsown activities, orwhich may bedirectly and thenaturecontextofoperation relevant stakeholders, asappropriatetothesizeofbusinessenterprise 63 SECTION SIX Evolution of Human Rights Due Diligence at the Bisha Mine 64 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • • • Next Steps • • • • Progress during2015Audit Period • activities inongoingaffected stakeholders canparticipate impactassessment theupdatedStakeholder EngagementFinalize Plantoensurethat other stakeholders communities inconsultationwiththeImpactReview Committeeand Develop aplanfortargeted healthimpactassessmentsforworkers and potential impactsonthehumanrighttowater thehydrology assessmenttoimproveFinalize understandingof andworking conditions national service Continue targeted auditingactivitiesforEritreancontractorsrelatedto recommendations fromthe2015 Audit oftheHRIA Continue stakeholder engagement regarding thefindingsand aboutpotentialimpacts source ofinformation Additional attentiontogrievance mechanismsisproviding anadditional including: to improve understandingofareaspotentialhumanrightsimpact, Targeted impactassessmentactivitieshave beenlaunched orproposed with affectedstakeholders audit wasconductedinamannerthatinvolved significantengagement emerging issues. As explainedinthesectionaboutmethodology, the implementation oftheHRIARecommendationsandtoidentifyany A follow-up auditwascommissioned toprovide anupdateonthe regarding thefindingsandrecommendation oftheHRIA andEritreanstakeholders There wasdialoguewithinternational workers ofsubcontractors affected stakeholders, includingworkers, communityleaders, andthe expertise, which involved meaningfulconsultationwithpotentially teamwithhumanrightsandsocialperformance independent external astand-aloneHRIAconductedbyBMSC hasundertaken an ------communities improve understandingofpotentialimpactsonworkers and Additional healthimpactassessmentshave beenproposedto communities of themine’s impactsontheaquifersharedwithtwo local A hydrology study hasbeenlaunchedtoimprove understanding andworking conditions related tonationalservice Ongoing auditactivitiesforcontractorspotentialimpacts • • • Progress during2015Audit Period • • • • • frominitialHRIAReport Observations INTEGRATING ANDACTING (b) accordingto: Appropriate actionwillvary (a) Effective integration requiresthat: relevant functionsandprocesses, internal andtake appropriateaction. enterprises shouldintegrate thefindingsfromtheirimpactassessmentsacross In ordertoprevent andmitigate adverse humanrightsimpacts, business Operational Principle grievance mechanism andtheStakeholder Engagement Plan integrated relevance forSOPswithparticular suchasthecommunity Standards andhumanrightsconsiderations arebeingorwillbe Operating ProceduresinaccordancewiththeIFCPerformance Progress isbeingmadeonupdatingmanagement plansandStandard Recommendations todiscusstheimplementation oftheHRIA heads ofdepartments A seriesofgroup andindividualmeetingswere organized with implementation and have beenactedupon, althoughsomewillrequireongoing All HRIARecommendationswere acceptedby Nevsun andENAMCO provisions rights issuestocomplementscreeningprocessesandcontractual business partners, suppliers, contractorsandsubcontractorsonhuman Continue dialogue, trainingandcapacity-buildinginitiatives with Human Rightsforsecuritydepartment departments, e.g. trainingon Voluntary PrinciplesonSecurityand more advanced humanrights-relatedtrainingmodulesforkey In additiontoaninductiontrainingmoduleonhumanrights, develop integration intotheirresponsibilitiesandworkplans to discussrisks, challenges, about andbrainstorm opportunities Conduct workshops onthefindingsofHRIAwith key departments Social Plans actions andbudgets fortheimplementationofEnvironmental and and multiplicationofpriorities. UsetheHRIAfindingstohelpprioritize and SocialManagement Plansinordertoavoid dispersionofefforts Integrate theHRIAfindingsinsofaraspossibleintoEnvironmental actions plannedtointegrate andactuponthefindingsofHRIA Develop anactionplanthatsetsoutthecommitments, timelinesand (ii) The extentofitsleverage inaddressingtheadverse impact (i) Whether thebusinessenterprisecausesorcontributestoanadverse decision-making,(ii) Internal budget allocationsandoversight processes (i) Responsibilityforaddressingsuchimpactsisassignedtotheappropriate linked toitsoperations, by abusinessrelationship productsorservices impact, orwhether itisinvolved solelybecausetheimpactisdirectly enable effective responsestosuchimpacts level andfunctionwithinthebusinessenterprise • • • • inInitialHRIAReport Observations TRACKING RESPONSES • • • • Next Steps • • (b) Draw on feedback from both internal and external sources,(b) Draw andexternal onfeedbackfrombothinternal including (a) Bebasedonappropriatequalitative andquantitative indicators should: business enterprisesshouldtracktheeffectiveness oftheirresponse. Tracking In ordertoverify whether adverse humanrightsimpactsarebeingaddressed, Operational Principle Committee and external social and environmental performance experts socialandenvironmental experts Committee andexternal performance ongoing monitoringanddialoguewiththeEritreanImpactReview relevant issuesandvalidate company responses. These includethe BMSC hasvarious review external andauditsthatcanhelptrack reports reporting, includingweekly,external monthly, andannual quarterly and BMSC hastemplatesandprocessesforvarious ofinternal forms for consultationwithemployees communities, as well mechanismsexist asvarious andformal informal Stakeholder Engagement Plan for ongoing consultationwithsurrounding BMSC hasdedicatedCommunityLiaisonOfficersanda indicators thatarerelevant accordingtotheGRI totrackingandreporting Management Plans, which canbesupplementedby humanrights Indicators have beendeveloped fortheEnvironmental andSocial responsible miningsectorinEritrea about broaderCSRinitiatives thatcontributetothedevelopment ofa Continue dialoguewithENAMCOandtheImpactReview Committee GPS initiative) that contributetohumanrightsduediligence (e.g. Transhorn Trucking view tothedevelopment oftheirown policiesandprocedures internal Continue dialoguewithEritreancontractorsandsubcontractorsa systematic andoperationalimplementationofcommitments Continue todevelop new orupdatedSOPsinpriorityareastoensure held anddeliverables aremet has adequatetimeandauthoritytoensurethatregularmeetingsare Recommendations atsite. EnsurethattheChairof Working Group ongoing integration andcontinuedimplementationoftheHRIA CSR thecross-department Formalize Working Grouptoensure and working conditions explore issuesbeyond program, thenationalservice e.g. roadsafety to Dialogue onhumanrightswithcontractorsandsuppliersisstarting Human RightsisbeingimplementedfortheBMSCsecuritypersonnel training initiative relatedtothe Voluntary PrinciplesonSecurityand Human rightsinductiontrainingisnow beingprovided andanew affected stakeholders • • • • • Next Steps • • • • Progress in2015Audit Period • COMMUNICATING EXTERNALLY (c) In turn notposeriskstoaffectedstakeholders,(c) Inturn personnelortolegitimate (b) Provide thatissufficientto information evaluate theadequacyofan andfrequencythatreflectanenterprise’s(a) Beofaform humanrightsimpacts communications should: onhow formally theyrights impactsshouldreport addressthem. Inall instances, enterprises whose operationsoroperatingcontextsposerisksofsevere human when areraised by concerns oronbehalfofaffectedstakeholders. Business enterprises shouldbepreparedtocommunicatethisexternally, particularly In ordertoaccountforhow they addresstheirhumanrightsimpacts, business Operational Principle community liaisonactivities effectiveness fromongoing ofthemechanismfortrackinginformation oftheupdateStakeholder EngagementAs part Plan, ensurethe can helpidentifyhumanrightsimpacts Continue tomonitorgrievance mechanismsforissuesandtrendsthat strategies tomake ongoing auditingaseffective aspossible Continue dialoguewithEritreancontractorsandsuppliersabout audits orexternal future internal HRIA Recommendationstofacilitatetrackinganddatacollectionfor Develop onimplementationofthe reporting atemplateforinternal follow-up ontheHRIARecommendations andEritreanstakeholders about Continue dialoguewithinternational view totheirengagement oftheirongoing aspart monitoringefforts Recommendations hasbegunwiththeImpactReview Committeewitha Dialogue inrespectoftheimplementationHRIA the emerginghumanrightsissuesfor2015 Audit actions. This engagement contributedto the prioritizationofsome stakeholders abouttheHRIArecommendationsandproposedfollow-up There hasbeenextensive engagement andEritrean withinternational the annualCSRReport HRIA Recommendationsandtheassessingprogress for disclosurein trackingwasheavilyInternal focusedontheimplementationof sources,external includingaffectedstakeholders issues, and drew uponfeedbackfrominternal andthemethodology to theHRIARecommendationsandidentifyingemerginghumanrights The 2015 objective oftrackingBMSC’sAudit hasaprimary responses and humanrightsissues Nevsun hasongoing stakeholders relatedtoCSR dialoguewithexternal requirements ofcommercialconfidentiality enterprise’s human rightsimpactinvolved responsetotheparticular and thatareaccessibletoitsintendedaudiences 65 SECTION SIX Evolution of Human Rights Due Diligence at the Bisha Mine 66 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea • • • Next Steps • • • • • Progress during2015Audit Period • • • frominitialHRIAReport Observations with localworkers andcommunitymembers the HRIAprocess, would ongoing helpsupport stakeholder engagement Translation oftheCSRreport, about includinginformation ofasummary future humanrightsreporting Frameworkconsider usingtheUNGuidingPrinciplesReporting toframe Report. To meetemergingbestpracticesforhuman rightsreporting, implementation oftheHRIARecommendationsinannualCSR abouttheHRIAprocessand Continue topublishinformation the HRIAprocess ongoing engagement andEritreanstakeholders about withinternational Nevsun hascommittedtopublishingthe2015 Audit andto report stakeholders who intheHRIAhasbeensafeguarded participated transparent while aboutaffected ensuringthatconfidentialinformation communicationregardingExternal humanrightshasbeenexceptionally communicationandaccountabilitywithintheCanadiancontext external for HumanRightshasprovided opportunity International animportant The engagement withtheCanadianParliament’s Subcommitteeon andthefollow-up explaintheHRIAmethodology atsite further proposed follow-up actions. This engagement provided to opportunities and Eritreanstakeholders abouttheHRIArecommendationsand There hasbeenextensive andongoing engagement withinternational 2014 CSRReport the implementationofHRIARecommendationswasincludedin A casestudy ontheHRIAandaself-assessmentofprogress madeon subsequently madeavailable ontheNevsun website was waspublishedandthefullreport oftheHRIAReport A summary and commercialconfidentiality willbepreparedinamannertoprotectstakeholder identity HRIA report oftheHRIAreport. BMSC hascommittedtopublishasummary The communicationonprogressexternal engagement activitiesthatprovide agood forongoing opportunity and theStakeholder Engagement stakeholder Planplansstructured tocommunities, reporting BMSC operationalpoliciescommittoexternal FrameworkSustainability Reporting annual CSRReport, which ispreparedinaccordancewiththeGRI Nevsun onhumanrightsissuesinits provides reporting formal • • • • • Next Steps • • • • Progress inthe2015Audit Period • • • frominitialHRIAReport Observations REMEDIATION REMEDIATION 6.3 through legitimateprocesses. adverse impacts, they shouldprovide fororcooperateintheir remediation Where businessenterprisesidentifythatthey have causedorcontributedto Operational Principle promotional efforts, consider anevaluation and redesignifnecessary If any ofthegrievance mechanismsarenotbeingusedafteradditional retribution emphasize theprinciplesofanonymity, confidentiality, andnon- Ensure thatallpromotionalmessages aboutthegrievance mechanisms CSR including throughtheproposedcross-departmental Working Group Continue totracktheuseofvarious grievance mechanisms, community grievance mechanismSOPisready tobeimplemented andconsulted whenEnsure thatcommunitiesareinformed theupdated including duringtherolloutofnew BMSC Workers’ RightsPolicy Continue topromotethevarious grievance mechanismsatsite, human rightsimpactsthatitcausedorcontributedto is willingtocompensateandremediateany past, present, orfuture British ColumbiaSupremeCourt, Nevsun haspubliclystatedthatit While itdeniesthespecificallegations inthelawsuit broughtinthe mechanism forBMSCcontractors Confederation ofEritrean Workers relatedtoaspecific grievance There hasbeendialoguewithSegen workers andtheNational through thehumanrightsmoduleininductiontraining Promotion ofthevarious grievance mechanisms atsitehasbegun the BishaMine implementation andcoordinationofvarious grievance mechanismsat A numberofactionshave tostrengthenthe beenundertaken of Ethicsmatters stakeholders andwasrecentlyamendedtoincludenon-financialCode Nevsun hasclarifiedthatits Whistleblower Policy is available toexternal managers ontheimplementationofmechanism conditions, andisintheprocessofconsultingwithSegen workers and to addressallegations aboutworking offorcelabourorconcerns BMSC hasdeveloped aspecific grievance mechanismprocedure and develop awareness materialsonthegrievance mechanism planned todevelop new standardoperatingprocedures, provide training raise concerns. IntheStakeholder Engagement Plan, thereareactions BMSC hasgrievance mechanismsforemployees and communitiesto RECOMMENDATIONS ANDNEXTSTEPS CONCLUSIONS ANDSUMMARYOF

SEVEN SECTION 67 SECTION SEVEN Conclusions and Summary of Recommendations and Next Steps 68 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea rights impacts. a moreproactive approachtoassessingandaddressingpotentialhuman fordialoguewithmanagersopportunity andaffectedstakeholders about to exploration, staffturnover, roadsafety andsecurityhasprovided an In thisregard, theidentificationofemerginghumanrights issuesrelated can helpbuildcapacityforongoing humanrightsduediligence atsite. process, rather thanaone-timeexercise, isaninnovative practicethat Moreover, thecontinuationofHRIAasanongoing andtransparent these efforts. and therewasanopennesstoconsidernextstepsthatcouldstrengthen the ongoing implementationoftheinitialHRIA recommendationsatsite, Operating Procedures, capacity, andresourceswere beingmarshaledfor mechanisms. Standard In theauditperiod, internal thenecessary screening anddialoguewithsupplierscoordinationofgrievance examplefortraining,recommendations requiresustainedeffort—for Furthermore, BMSCmanagers understandthatmostoftheHRIA operations. human rightsofworkers andcommunitymembersduringthemine’s have been themainframework foraddressingpotentialimpactsonthe procedures forCSRandenvironmental andsocialmanagement, which rights asanoperationalissue. This builds upon theexistingpoliciesand BMSC leadershiparecontributingtothismoreexplicitfocusonhuman Nevsun andthedevelopment ofastand-alone Workers’ RightsPolicy by rights atsite. The adoptionofastand-alone HumanRightsPolicy by There arenow moreexplicitreferencestoandunderstandingofhuman rights fromtherelevant managers. andpositive issupport momentumonhuman at site—buttherecurrently integrate new humanrightsduediligence requirementsandprocesses timeframe.short As withany remoteoperation, ittakes timetofully inarelativelyimplementation oftherecommendationsHRIAreport During theauditperiod, solidprogress hasbeenmadeonthe diligence accordingtotheUNGuidingPrinciplesonBusinessandHumanRights. that thisprogram isincreasinglyfocusedontherequirementsforhumanrightsdue a strongprogram forcorporatesocialresponsibility(CSR)attheBishaMineand From theHRIAactivitiesconductedover thepasttwo years, itisclearthatthere AND NEXTSTEPS RECOMMENDATIONS AND SUMMARYOF CONCLUSIONS

included in Section Five ofthereport,included inSectionFive andshouldbecross-referenced. Some additionalnextstepsrelatedtospecifichumanrightsissuesare strengthening ofongoing humanrightsduediligence attheBishaMine. the following tablecompilesthemainrecommendationsforcontinued throughout thisreport. Foreaseofreferenceandtrackingpurposes, A numberofrecommendationsaboutnextstepshave beenprovided leveraged tocontributehumanrightsduediligence atothermines. Mine alone. In thisregard, theexperienceofBishaMineshouldbe and humanrightsstandardsthatcannotbeaddressedby theBisha will beoccasionstoengage onbroaderissuesrelatedtominingpolicy inEritrea.broader miningindustry As new minesaredeveloped, there dialogue andcooperationabouttheresponsibledevelopment ofthe To theextentpossible, forBMSCtocontribute itisalsoimportant attheBishaMine.and HRIAefforts transparency, stakeholder engagement, andaccountabilityfortheCSR Eritrean miningsector. Therefore, fortheretobecontinued itisimportant roleandresponsibilitytosetapositivean important benchmarkforthe a significantroleintheeconomicdevelopment ofEritrea, andBMSChas stakeholders isunderstandableandwillcontinue. The BishaMineplays Attention tothehumanrightssituationatBishaMineby external and dialoguewiththeBishaMine’s isrequired. Eritreanbusinesspartners findings oftheHRIAprocess over thepasttwo years, continuedscreening subcontractors attheBishaMine. While these donotalignwiththe legal developments thathighlightallegations aboutpastpracticesof During theauditperiod, and therehave reports external beenfurther NEXT STEPSFORIMPLEMENTATION OFINITIALHRIARECOMMENDATIONS AND SUPPLIERS WITH CONTRACTORS 4. ENGAGEMENT STANDARDS 3. IFCPERFORMANCE 2. TRAINING 1. POLICY • • • • • • • • • • • • • • • contractors, subcontractors, andsuppliers Provide encouragement, further requirements, or incentives forstrengtheningtherecord-keeping systemsoftheEritrean are intendedand/orrequiredtoapplycontractors, andsuppliers Develop which acodeofconductforbusinesspartners consolidatesthecontractualprovisions andvarious policiesthat suppliers withrespecttohumanrights thepositionofContractManagerFill toassistincoordination ofengagement withcontractors, sub-contractors, and Voluntary Principlesinitiative provides aframework forscreening, auditingandengagement withBinaeSecurity Continue audits ofSegen and Transhorn toother human rights issues and continue to expand topics from national service Continue dialoguewithImpactReview Committeeonupdatedmanagement plansandSOPs SOPs: In particular, ensurethathumanrightsconsiderationsandstandardsaretaken intoaccountintheupdateoffollowing to humanrightsasidentifiedinthesectionaboutHRIARecommendation#3 Prioritize thedevelopment orupdatingofenvironmental andsocialmanagement plansandSOPsthataremostrelevant has beencompleted. auditontheimplementationof Conduct anindependentthird-party Voluntary Principlesafterthetraininginitiative ofthetrainingforsecuritypersonnelatBishaMine Delivery operating proceduresforsecurityguards Development ofacustomizedtrainingpackage covering humanrights, the Voluntary Principlesandtherelevant standard operating procedures Training workshops forsecuritymanagers onintegrating humanrightsintoongoing riskassessmentandstandard embed thespecificcommitmentscontainedinnew policy BMSC This canbecoordinatedwiththerolloutofforthcoming Workers’ RightsPolicy to sothatthetrainingserves Ensure thatallemployees (who have previously received inductiontraining)get trainingonthenew humanrightsmodule. activities. Someofthenextstepsinclude: theBMSC Finalize Workers’ RightsPolicy androllitoutattheBishaMinethroughcoordinatedpromotiontraining follow-up onHRIARecommendations CSR thecross-departmental Formalize Working Grouptoensureeffective implementationofthepolicycommitmentand ------Water-related plansandSOPs Grievance mechanism Stakeholder engagement Continue toimplementthe Voluntary PrinciplesonSecurityandHumanRightstraininginitiative, including: do notneedtogo tothe Training Centreonadditionaloccasions Provide todeliver opportunities thehumanrightstrainingmoduleduringothersessionssothatemployees next year, andverify thatithasbeencompletedwhen theemployee’s planisreviewed Ensure thatthehumanrightstrainingisincludedineachemployee’s trainingandpersonaldevelopment planforthe officers anddistributionofpromotionalmaterialsintheCLOoffices ofthenew policythroughtheon-goingEnsure thatcommunitiesareinformed engagement ofthecommunityliaison drive theon-going engagement withthemonhumanrights Ensure thatthenew policyrequirementsarecommunicated toBisha’s contractors, subcontractorsandsuppliersto Align thehumanrightstraininginitiatives atsitewiththenew policy Develop materials(posters, supporting etc.)topromoteawareness aboutthe new policyatsite management tothenew policy Leadership fromENAMCOandtheGeneralManager atsiteincommunicatingthecommitmentofsenior 69 SECTION SEVEN Conclusions and Summary of Recommendations and Next Steps 70 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea 2. IMPACT ASSESSMENT 1. POLICYCOMMITMENT RECOMMENDEDNEXTSTEPSFORSTRENGTHENINGONGOINGHRDD AT SITE 4. SECURITY 3. ROAD SAFETY 2. STAFF TURNOVER 1. EXPLORATION CONCLUSIONS AND NEXTSTEPS TO PROACTIVELY ADDRESS EMERGINGISSUES 6. CAP GRIEVANCE MECHANISMS 5. COORDINATION OF • • • • • • • • • • • • • • • • • • • • • • • • • • • Engage routeaboutroadsafety indiscussionswithcommunityleadersandpolicecommunitiesalongtransport fortheBMSClightvehicleConsider thepossibilityofusingGPSmonitoringinfrastructure fleet atBisha computer monitoringterminal cultural sensitivity If workforce turnover resultsingreater relianceonexpatworkers – prioritizeinductiontrainingonhumanrightsand impacts Prioritize futurehumanresourceinitiatives anddialogueontopicsthathave beenidentifiedwithpotentialhumanrights proactively grievanceContinue tostrengthentheinternal mechanismsandcommunicationschannelsforworkers toraiseconcerns tounderstand thereasonsthatemployees exitinterviews Conduct formal areleaving result inpotentialimpactsonlandorculturalheritage Ensure appropriateconsultationandconsentisobtainedfromlocalcommunitiesauthoritiesifexplorationactivities and socialduediligence isconductedinadvance ofexploration activities Continue tocollaboratewiththeEnvironmental andotherrelevant Department toensurethatenvironmental departments remedy Ensure thatfocusonoperationalgrievance mechanismsdoesnotprevent toaccessjudicialornon-judicial barriers redesign ifnecessary If any ofthegrievance mechanismsarenotbeingusedafteradditionalpromotionalefforts, consideranevaluation and Segen andallcontractorssuppliers While continuingdialoguewithNationalConfederationofEritrean Workers, roll-outaseparategrievance mechanismfor to beimplemented andconsultedwhenEnsure thatcommunitiesareinformed theupdatedcommunitygrievance mechanismSOPisready anonymity, confidentiality, andnon-retribution Rights Policy. Ensurethatallpromotionalmessages aboutthegrievance mechanismsemphasizetheprinciplesof Continue topromotethevarious grievance mechanismsatsite, includingduringtherolloutofnew BMSC Workers’ Working Group Continue totracktheuseofvarious grievance mechanisms, CSR includingthroughtheproposedcross-departmental impact assessment activities theupdatedStakeholder EngagementFinalize inongoing Plantoensurethataffected stakeholders canparticipate Review Committeeandotherstakeholders Develop aplanfortargeted healthimpactassessmentsforworkers and communities inconsultationwiththeImpact thehydrology assessmenttoimproveFinalize understandingofpotentialimpactsonthehumanrighttowater andworking conditions Continue targeted auditingactivitiesforEritrean contractorsrelatedtonationalservice Continue stakeholder engagement regarding thefindingsandrecommendationsfrom2015 Audit oftheHRIA See HRIARecommendation#1 auditforthe Conduct a3rdparty Voluntary Principleswhen thetraininginitiative hasbeencompleted members investigatedEnsure thatsecurityincidentsareproperly –includingtoworkers andappropriatelyreported andcommunity regarding emergency procedures Ensure that Voluntary Principlestrainingandimplementationinitiative includesupdatedriskassessmentandSOPs Ensure anequitabledistributionofCAPprojectsbetween affectedcommunitiesover time forfutureCAPprojects impacts andlessonslearned evaluationPlan forexternal ofCAPpilotprojectstoassessthepotentialpositive impacts, any unintendednegative C Ex ontinue dialoguewith Transhorn toensuretheeffective GPSmonitoringoftheBMSCfleet–includingthroughhaving a pedite theimplementationofproposedpilotprojects

96 GOVERNMENT OFERITREA 7.ENGAGEMENT WITH 6. REMEDIATION 5. COMMUNICATING 4. TRACKING ACTING 3.INTEGRATING AND public information availablepublic information for Nevsun torespond tothecorequestions and many of theadvanced Framework. questionsintheUNGuiding PrinciplesReporting abouttheHRIAprocess, andthetransparentreporting onhumanrightsabout theBishaMinethroughannualCSRReports thereisalready reporting sufficient analysisoftheexternal From apreliminary • • • • • • • • • • • • • • • • wide impact assessment and/or the potential formation ofemployerswide impactassessmentand/orthepotentialformation andemployees associationsforthesector Provide leadershiponCSRforminingsector—includingthroughcontinueddiscussionsabouttherationaleasector- Engage of withEritreansecurityforcesaspart Voluntary Principlestrainingandimplementation ofongoingand suppliersaspart auditinganddialogue) Offer toprovide humanrightstrainingtoENAMCOandImpactReview Committee(aswell astostate-owned contractors See HRIARecommendation#5 stakeholder engagement withlocalworkers andcommunitymembers Translation oftheCSRreport, abouttheHRIAprocess, includinginformation ofasummary would ongoing helpsupport FrameworkReporting toframefuturehumanrightsreporting annual CSRReport. To meetemergingbestpracticesforhumanrightsreporting, considerusingtheUNGuidingPrinciples abouttheHRIAprocessandimplementationofRecommendationsin Continue topublishinformation stakeholders abouttheHRIAprocess Nevsun hascommittedtopublishingthe2015 Audit andtoongoing report engagement andEritrean withinternational fromongoinginformation communityliaisonactivities oftheupdate oftheStakeholder EngagementAs part Plan, ensuretheeffectiveness ofthemechanism fortracking Continue tomonitorgrievance mechanismsforissuesandtrendsthatcanhelpidentifyhumanrightsimpacts possible Continue dialoguewithEritreancontractorsandsuppliersaboutstrategiestomake ongoing auditingaseffective as audits orexternal collection forfutureinternal Develop onimplementationoftheHRIARecommendationstofacilitatetrackinganddata reporting atemplateforinternal andEritreanstakeholders aboutfollow-upContinue dialoguewithinternational ontheHRIARecommendations. development ofaresponsibleminingsectorinEritrea Continue dialoguewithENAMCOandtheImpactReview CommitteeaboutbroaderCSRinitiatives thatcontributetothe policies andproceduresthatcontributetohumanrightsduediligence (e.g. Transhorn Trucking GPSinitiative) Continue dialoguewithEritreancontractorsandsubcontractorsaview tothedevelopment oftheirown internal commitments Continue todevelop new orupdatedSOPsinpriorityareastoensuresystematicandoperationalimplementationof that regularmeetingsareheldanddeliverables aremet HRIA Recommendationsatsite. EnsurethattheChairof Working Grouphasadequatetimeandauthoritytoensure CSR thecross-department Formalize Working Grouptoensureongoing integration andcontinuedimplementationofthe 96 71 SECTION SEVEN Conclusions and Summary of Recommendations and Next Steps 72 HUMAN RIGHTS IMPACT ASSESSMENT of the Bisha Mine in Eritrea a memberoftheLaw SocietyofUpperCanada. in philosophy andpolitics, andsubsequentlyMcGillUniversity inlaw. Heis Democracy from2003to2008. HiseducationisfromQueen’s University astheseniorassistanttothreePresidentsofRights& previously served trade agreements. Lloyd began hiscareerasacorporatelitigator and projectsandfree impact assessmentwithafocusonextractive industry indigenous peoples. Hehasdeveloped anicheinthefieldofhumanrights national humanrightsinstitutions, civilsocietyorganizations, and 16 years ofexperienceworking withleadingcompanies, governments, Consulting Inc. Lloyd humanrights lawyer isaninternational withover LLOYD LIPSETT prepared by ConsultingInc. LKLInternational The assessmentteamincluded: The HumanRightsImpact Assessment oftheBishaMineinEritrea2015 Audit was TEAM ASSESSMENT is the founder and principal of LKL International isthefounderandprincipalofLKLInternational Certified andhasaMastersdegreeCertified inProfessionalCommunications. continuous improvement efforts. Initiative SheisGlobalReporting (GRI)G4 and communicationmethodsthatbestreflectthesemulti-stakeholder, policies,social performance andproviding guidanceastothepresentation strategies, assistinginthedesignanddevelopment ofgovernance and identifying developing andintegrating CSRprioritiesandsustainable have includedstakeholder services engagement, andadvisory expertise been almostexclusively inminingandmetals, where themajorityofher for theextractive sector. Michelle’s clienteleover thepast17years has initiatives consultancy specialisinginsustainabilityandsocialperformance MICHELLE HOHN isthePrincipalof Akashic Communications, a NEVSUN COMMITMENT

Nevsun has made the following commitments with respect to the 2015 HRIA process

• Publishing the HRIA and audit on its website • Providing a public response • Developing an action-plan for follow-up on recommendations • Ongoing engagement with stakeholders about the HRIA process • Reporting on implementation of HRIA recommendations in its annual Corporate Social Responsibility (CSR) Report