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Stakeholder Engagement Plan Ilovica-Shtuka Gold-Copper Project DRAFT March 2017

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Stakeholder Engagement Plan Ilovica-Shtuka Gold-Copper Project DRAFT March 2017 Stakeholder Engagement Plan Ilovica-Shtuka Gold-Copper Project DRAFT March 2017 SEP – Ilovica-Shtuka Project – Final Draft March 2017 1 Contents Abbreviations & Glossary of Terms 1. INTRODUCTION............................................................................................................................................. 3 2. PROJECT OVERVIEW ................................................................................................................................... 5 3. LEGAL & POLICY FRAMEWORK FOR STAKEHOLDER ENGAGEMENT ................................................... 7 4. SUMMARY OF PREVIOUS STAKEHOLDER ENGAGEMENT ...................................................................... 9 5. COMMUNICATION METHODS .................................................................................................................... 10 6. IDENTIFICATION OF STAKEHOLDERS & ENGAGEMENT PLAN ............................................................. 12 6.1. Stakeholder Identification ........................................................................................................................... 12 6.2. Engagement Plan per Stakeholder Group .................................................................................................. 14 7. INFORMATION DISCLOSURE & STAKEHOLDER ENGAGEMENT PROGRAMME .................................. 26 8. GRIEVANCE REDRESS MECHANISM ........................................................................................................ 29 9. MONITORING & REPORTING ..................................................................................................................... 30 10. CONTACT DETAILS & RESPONSIBILITY FOR SEP IMPLEMENTATION ................................................. 30 Figures Figure 1 Local Setting of the Ilovica-Shtuka Gold-Copper Project .......................................................................... 5 Tables Table 1 Summary of Stakeholder Groups ............................................................................................................. 12 Table 2 Engagement Plan per Stakeholder Group ................................................................................................ 14 Boxes Box 1 Stakeholder Engagement Plan (SEP) ........................................................................................................... 3 Box 2 Summary of Public Consultation & Disclosure Process on Spatial Planning & Environmental Documentation ................................................................................................................................................................................ 7 Annexes Annex 1 Euromax Grievance Form ABBREVIATIONS AoP Agency of Pastures ME Ministry of Economy AR Access Road MOEPP Ministry of Environment and Physical Planning EBRD European Bank for Reconstruction and MoC Ministry of Culture Development EOX Euromax MoTC Ministry of Transport and Communications E&S Environmental & Social OHL Overhead Line EIA Environmental Impact Assessment ESIA Environmental & Social Impact Assessment NTFP Non-Timber Forest Products ESP Environmental & Social Policy NTS Non-Technical Summary FC Forestry Company PAP Projected Affected Person FGD Focus Group Discussion PE Public Enterprise IFC International Finance Corporation PLC Public Liaison Committee KII Key Informant Interview PR Performance Requirement km kilometre, used to identify length PS Performance Standard LAR Land Acquisition & Resettlement RAP Resettlement Action Plan LARF Land Acquisition and Resettlement Framework SEP Stakeholder Engagement Plan LRP Livelihood Restoration Plan MEPSO Macedonian electricity transmission network TBC To Be Confirmed operator MoAFWE Ministry of Agriculture, Forestry and Water TMF Tailings Management Facility Environment SEP – Ilovica-Shtuka Project – Final Draft March 2017 2 1. INTRODUCTION Euromax Resources Ltd. is a public company incorporated in British Columbia, Canada, listed on the TSX Venture Exchange and operating in Macedonia through its subsidiary Euromax Resources DOO Skopje (“Euromax”). Euromax has a major mining development project in Macedonia which focuses on building and operating the Ilovica-Shtuka Gold-Copper project (the “Project”). The Ilovica-Shtuka Gold-Copper Project is a proposed copper and gold mine with supporting facilities located in southeast Macedonia, approximately 180 km south east of Skopje, 18 km east of Strumica and 15 km west of the border with Bulgaria. The European Bank for Reconstruction and Development (EBRD) is contributing finance to the Project and is currently the largest Company shareholder with 19.9% ownership of Euromax. The Project is being developed by Euromax in line with Macedonian legislative requirements and those of EBRD, including EBRD’s Environmental and Social Policy (20141) and Performance Requirements (PR), such as PR 10: Information Disclosure & Stakeholder Engagement. Since the Project may also seek finance from institutions which abide by the Equator Principles, the Project will also be compliant with the International Finance Corporation’s (IFC) Performance Standards (PSs) on Environmental and Social Sustainability, notably the Stakeholder Engagement requirements within PS1: Assessment and Management of Environmental and Social Risks and Impacts2. Box 1 Stakeholder Engagement Plan (SEP) This Stakeholder Engagement Plan (SEP) outlines the approach and actions Euromax will undertake for engagement with stakeholders and local communities about the Project and the related land acquisition programme. The SEP includes a grievance redress mechanism for stakeholders and people to raise their concerns about the Project. A previous SEP (SEP 2015) was disclosed during the Environmental Impact Assessment (EIA) process; this SEP shall supersede previous documents and is a Project wide document. The SEP shall be a live document and will be updated periodically by Euromax. An Environmental Impact Assessment (EIA)3 for the Mining Project was conducted on the Project according to national legislation and submitted for approval to the Ministry of Environment & Physical Planning (MOEPP) on 26.04.2016. A Non-Technical Summary (NTS) of the EIA summarises the Project, the findings of the environmental and social investigations conducted and the risks identified. Open Houses were held in the Municipalities of Bosilovo and Novo Selo on 17, 18th and 19th May 2016 and the official Public Hearing of the EIA was held in the same municipalities on 23rd June 2016. The Strategic Environmental Assessment (SEA) Report on the urbanization process of the Concession Area has been prepared, and submitted to the MOEPP in August 2016, with the Public Hearings held in the municipalities of Novo Selo and Bosilovo on 20th September 2016. The Project is now completing an Environmental and Social Assessment (ESIA) in line with EBRD PR and IFC PS, which is due to be finished by the end of 2016. This will be disclosed to Stakeholders through the Euromax website (in English) and through an extended Non-Technical summary (NTS) (English and Macedonian) which will include a summary of the key differences between the EIA and the ESIA. Copies of this will be presented to Ministries, local government authorities (Municipalities), key institutional stakeholders such as Strumicho Pole Water Management Company and the local Forestry Companies and with communities through the Information Centre, Public Liaison Committee and other community meetings. In particular, key Management Plans will be disclosed to the municipalities who will be involved in their implementation, and to the Public Liaison Committee. A number of Technical Working Groups may be set up to provide input and feedback 1 http://www.ebrd.com/news/publications/policies/environmental-and-social-policy-esp.html 2 http://www.ifc.org/wps/wcm/connect/3be1a68049a78dc8b7e4f7a8c6a8312a/PS1_English_2012.pdf?MOD=AJPE RES 3 The Macedonian legal framework uses the term EIA (environmental impact assessment), whereas the international community uses the term ESIA (environmental and social impact assessment). The terms are interchangeable. SEP – Ilovica-Shtuka Project – Final Draft March 2017 3 on the MPs and their implementation. The ESIA will not be disclosed until the EIA has passed through the approvals process in Macedonia. The land acquisition process is currently underway, and a Land Acquisition & Resettlement Framework (LARF) has been developed and disclosed to guide and document this process. This Stakeholder Engagement Plan (SEP 2016) and the previous SEP (2015) for the EIA process and the other key environmental & social (E&S) project preparation documents – the EIA, NTS and LARF - are uploaded on the Euromax (EOX) websites (http://www.euromaxresources.com/ in English and http://euromaxresources.mk/ in Macedonian language). SEP – Ilovica-Shtuka Project – Final Draft March 2017 4 2. PROJECT OVERVIEW The Ilovica-Shtuka Gold Copper Project is a proposed open pit mine that will be located near the villages of Ilovica and Shtuka on the slopes of the Ograzden Mountain, in the municipalities of Bosilovo and Novo Selo. The proposed Project is located 15 km from the largest urban centre in the region, the town of Strumica. Figure 1 shows the Ilovica-Shtuka Mine Concession Area, the local communities and surrounding area. The ‘on-site’ Project mining facilities for the Project, include the open pit, processing plant, tailings management facility (TMF), warehouses, offices and storage areas, water and power supply and
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