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List of Figures Figure 1.1: Location of study area and mining rights area ... ............................................. 2 Figure 2.1 : Location of development corridors in the Northern Cape Province ............ 24 Figure 2.2 : Location of mining focus areas in the Northern Cape Province ................. 25 Figure 3.1 : Location of the Kamiesberg and Nama Khoi Local Municipalities within the Namaqua DM ............ ........... .... .. .. .... .. ................................... ...................... .. .. ....................... 31 r Figure 3.2: Percentage of people living in poverty in the Northern Cape ..................... 33 Figure 3.3: Percentage of household income below the poverty breadline by District ..... ................. .. ... ......... ................... .. ..................... .... ... .. .. ............... .. .. ... ..... ................ ...... .. 34 r Figure 3.4: Employment by Economic Sector and Industry .. ............................................ 35 List of Tables r Table 3.1 : Overview of key demographic indicators for NDM, NKLM and KLM ...... .. .... 37 Table 3.2: Overview of access to basic services in NDM, NKLM and KLM ..................... 38 Table 4.1 : Towns of origin for workers ................... .. .. .. .. .. ................................................. .. .. 42 Table 4.2: Assessment of employment opportunities ........................................................ 43 Table 4.3: Assessment of training and skills development opportunities ..................... .44 Table 4.4: Assessment of business opportunities ..................... .. .. .. ................................... .46 Table 4.5: Assessment of opportunity to revitalise Koingnaas and Kleinzee ............ .. .48 Table 4.6: Summary of community projects supported by WCRs .................................. 50 Table 4.7: Assessment of support for community initiatives .................... ......... .. ............ 50 Table 4.8: Assessment of impact of workers on local communities ......... ..... .............. ... 52 Table 4.9: Assessment of the impacts associated with mining activities ...................... 53 Table 4.10: Assessment of regional impact of mining on abalone farming ........ .. ........ 55 Table 4.11 : Assessment of closure and decommissioning .. .............................................. 56 Table 4.12: Assessment of no-development option ............. .. ........ .. ...... .. .......... ........... .. ... 57 Table 5.1: Summary of social impacts during construction phase .... .. .. ........... .. ............ 63 List of photographs Photograph 1.1: Mine processing dump at KOingnaas .. .. ................................................... 8 Photograph 1.2: Abandoned sports complex in Kleinzee ....... .. ............................ ............... 9 Photograph 1.3: Closed Spar Shopping Centre in Kleinzee ........ .. ........ .. .... .. ...................... 9 Photograph 1.4: Kleinzee golf course with processing plant in background ................. 10 Photograph 1.5: Tarred road between Kleinzee and Koingnaas ...................................... 11 l Photograph 1.6: Town of Garies located adjacent to N7 ............. .. .................................... 11 Photograph 1.7: Hondeklip Bay with old Oceana crayfish factory in the Background .. .. ... .... ... .... ....................... .. ........................ .. ............................................................. 12 Photograph 1.8: Local primary school in Hondeklip Bay.. .. ... .. ............. .. .................... ....... 13 Photograph 1.9: Local rugby field in Hondeklip Bay .. ..... ... ...... ............... .. ......................... 13 Photograph 1.9: Community playground initiative by WCR ............................................. 14 xi Koingnaas·Samsons Bak SIA November 2016 SECTION 1: INTRODUCTION 1.1 INTRODUCTION West Coast Resources (Pty) Ltd (WCR) is a private company owned by Trans Hex Operations (Pty) Ltd (Trans Hex), RE :CM and Calible Limited (RAC), the Government of South Africa, Dinoka Investment Holdings (Pty) Ltd and the Namaqualand Diamond Trust Fund, a broad based community trust representing historically disadvantaged persons from the Namaqualand community. WCR has existing converted mining rights and prospecting rights over the area, including a number of properties situated approximately 50 kilometres west of Kamieskroon and extending north and south of Hondeklip Bay on the West Coast of the Northern Cape Province, South Africa (Figure 1.1). The mining rights comprise of the existing rights, covering the Koingnaas Complex (KNC) and Samsons Bak Complex (SBC), which were converted in July 2012 (under File No. SNC 522 MRC and SNC 525 MRC), I I respectively, and several farms of the existing prospecting right area, which includes the Namaqualand Prospecting Right (NPR) (File No. SNC 672 PRC). Trans Hex has entered into an agreement with the other shareholders of WCR to oversee and manage the operations of WCR. WCR is re-establishing a diamond mining operations in the Koingnaas area on the Namaqualand coast, which was previously mined by De Beers and under the existing mining environmental authorisation of July 2012. As part of their operations, WCR intend to mine deposits that are located on land as well as specific deposits that extend seaward from the land for potentially for several hundred metres. The focus of the Environmental Impact Assessment (EIA) is on the mining relate activities that are proposed and the associated processing activities. Myezo Environmental Management Services were appointed by WCR to manage the Environmental Impact Assessment (EIA) process. Tony Barbour was appointed by Myezo Environmental Management Services to undertake a specialist Social Impact Assessment (SIA) as part of the EIA process. I This report contains the findings of the SIA undertaken as part of the EIA process. II I 1 1 J r r Appendix 3 - Figure 2 West Coast r Resources .' •• ~ ,""'! r .. ~ ;; .~} , 1 - , - [ " I. r l j j {II LJ , 1I I u .. ... ~,. .. .... ~ . t· ~ "''--'' '''.~' ~ ~:':T,:- ~'.~ u, Finn. \!: TCWN ",:.", ' .-. NIIINI~ NabOn!li PINk .~ u Figure 1.1: Location of study area and mining rights area 2 Koingnaas-Samsons Bak SIA September 2016 1.2 TERMS OF REFERENCE The terms of reference for the SIA require: • A description of the environment that may be affected by the activity and the manner in which the environment may be affected by the proposed road upgrade; • A description and assessment of the potential social issues associated with the proposed development and the associated alternatives; • Identification of enhancement and mitigation measures aimed at maximizing opportunities and avoiding and or reducing negative impacts. One of the key challenges facing SIA, therefore, does not necessarily involve the physical disruption of human populations, but understanding the meanings, perceptions and/or social significance of these changes. The social construction of reality is a characteristic of all social groups, including the agencies that attempt to implement changes, as well as the communities that are affected (Guidelines and Principles for Social Impact Assessment, 1994). The tendency of development agencies and proponents to dismiss the concerns of others as being merely imagined and perceived is therefore a key issue that needs to be addressed by social impact assessments. SIA's should enable the authorities, project proponents, individuals, communities and organizations to understand and be in a position to identify and anticipate the potential social consequences of the implementation of a proposed policy, programme, plan or project. The SIA process should also alert communities and individuals to the proposed project and possible social impacts, while at the same time allowing them to assess the implications and identify potential alternatives. The assessment process should also alert proponents and planners to the likelihood and nature of social impacts and enable them to anticipate and predict these impacts in advance so that the findings and recommendations of the assessment are incorporated into and inform the planning and decision-making process (Barbour, ! 2007). II 1.3 PROJECT DESCRIPTION 1.3.1 Need and desirability of the proposed activities WCR concluded a transaction with De Beers in October 2014 whereby WCR acquired, amongst others, the KNC and SBC mining rights. Both these rights have been exploited by De Beers for over 60 years and the diamond resources on land are largely depleted. What remains are very low grade or buried under thick overburden. The key remaining high value diamond resources remaining are those that DBCM could not access due to: • Its proximity to the Trans Hex owned marine concessions; and • Deposits that DBCM discovered towards the end of the life of their operation. The majority of these deposits are located directly adjacent to the coast, on the I beaches or in the shallow marine environment. The shareholders of WCR together with the Industrial Development Corporation (IDC) has invested over R250 million to date to recapitalize the operations at I Koingnaas. This investment has resulted in the creation of 166 permanent 3 Koingnaas-Samsons Bak SIA September 2016 employment opportunities, the majority of which has been filled by people from the nearby towns and the broader Namaqualand community. An additional 54 jobs were created over the past 12-month period, during construction operations of the first Plant. The Life of Mine of the operation is