Social Impact Assessment Report

GRAFEX ANCUABE GRAPHITE MINE PROJECT:

SOCIAL IMPACT ASSESSMENT REPORT

Prepared for:

GRAFEX, LIMITADA. 25 Setembro Avenue nº. 1383, 6º floor, Flat 613, Maputo Moçambique www.tritonminerals.com

Prepared by:

COASTAL & ENVIRONMENTAL SERVICES MOZAMBIQUE LDA Avenida da Mozal, Porta 2334 Beluluane Celula D. Quarteirao 02, Matola Cidade, Maputo, Mozambique

With offices in Cape Town, East London, Johannesburg, Grahamstown and Port Elizabeth (South Africa) www.cesnet.co.za

SEPTEMBER 2017

Report Title: Grafex Ancuabe Graphite Mine Project: Social Impact Assessment Report Version: Draft

Consultant Responsibility Signature Date

Marc Hardy Study Leader/Reporting 17 September 2017

Amber Jackson Review 18 September 2017

COPYRIGHT INFORMATION This document contains intellectual property and proprietary information that is protected by copyright in favour of Coastal & Environmental Services (CES) and the specialist consultants. The document may therefore not be reproduced, used or distributed to any third party without the prior written consent of CES. This document is prepared exclusively for submission to Grafex Lda and is subject to all confidentiality, copyright and trade secrets, rules intellectual property law and practices of Mozambique.

This report should be cited as follows: CES, 2017. Social Impact Assessment: Grafex Ancuabe Graphite Mine Project. [Unpublished]. Maputo.

Social Impact Assessment NON TECHNICAL EXECUTIVE SUMMARY

INTRODUCTION

Grafex Limitada (Lda) have proposed the development of the Ancuabe Graphite Project located in the district of Ancuabe in Cabo Delgado Province, northern Mozambique. The Ancuabe Graphite Project spans across three adjacent mining licenses. In 2017, Coastal & Environmental Services (CES) was appointed by Grafex. (hereafter referred to as Grafex or ‘the company’) to conduct an Environmental, Social and Health Impact Assessment (ESHIA) to secure environmental authorisation from Mozambique’s Ministry of Land, Environment and Rural Development (Ministerio de Terra, Ambiente e Desenvolvimento Rural: MITADER).

The project area spans three adjacent exploration licenses (EL5305, EL5336, EL5380) currently held by Grafex. Combined, three areas cover approximately 51,094ha however the project area DUAT applications for this project will cover a much smaller area of approximately 9,000ha. The exact size of the pit that will be mined is still to be determined and will depend on the outcome of the resource surveys that are currently being undertaken.

This Social Impact Assessment (SIA) forms part of the ESHIA for the Ancuabe Graphite Project (hereafter referred to as ‘the project’) conducted in accordance with the Regulations on the Environmental Impact Assessment (EIA) process (Decree 54/2015 of December 31). The proponent is in the process of applying for Environmental Authorisation (EA) from the Government of Mozambique (GoM). The ESHIA and specialist studies are submitted at the national-level to the Ministério Da Terra, Ambiente e Desenvolvimento Rural (MITADER) for decision-making.

OVERVIEW OF THE PROJECT AFFECTED COMMUNITIES

Project Affected Communities (PAC) refers to communities that are affected by the proposed project through either primary (direct) or secondary (indirect) effects. The distinction between direct and indirect PAC is a function of the extent and severity of the anticipated positive and/or negative impacts induced by the project on the particular communities. It is apparent from the study findings that the majority of PAC households essentially engage in livelihood strategies that are almost fully subsistent in nature, and notably, agricultural activity dependent. People are poorly educated, with few of the surveyed adults having completed senior secondary (high) school, and very few of these subsequently attaining a tertiary education or some form of vocational training. People also lack skills that might otherwise be able to set them up in the wider economic market. As such, it is expected that the local labour pool can supply the project with largely unskilled candidates only.

The study area is also lacking in terms of public goods and service provision. Government capacity to deliver on these mandates is limited despite their best intentions. As a result, the study area inhabitants display an expected low level of basic or high school education, only access health services in times of emergency, and are mostly isolated from centres or towns where these limited services are available.

Understandably access to land, and the cultivation thereof, is crucial for household survival. The majority of the surveyed households obtained land tenure through their Traditional Authority with over a quarter of these inheriting these tenure rights. A minority of surveyed households indicated that they rent land parcels for agricultural production (note that the potentially affected farmers along the proposed access route and inside the mining tenement report that they do not pay rent for this land), paying this rent by means of reciprocal exchange of household labour, indicating the existence of an informal system of labour exchange between these households.

Very few people are employed in the formal sector, with regular employment being limited to the mining and public sectors. As such, non-regular work and the informal sector plays a substantial role in the respondent households’ daily economies (trading, farm labour, craftsmanship, charcoal production etc.). Two thirds of households receive their incomes from agricultural production. Income

i Social Impact Assessment from regular employment (mostly referring to formal employment with fixed salaries), has been recorded by only 7% of households.

Agricultural produce is largely for household consumption, with a minority of households reporting to be selling all their crops. Cassava, beans, cereals, legumes and vegetables are the primary crops being planted and harvested in the area. Many crops are also intercropped, especially such as beans and other vegetables. Natural resources are similarly harvested for own consumption, with limited sales thereof reported. Food intake is high in starch and is often shared between households, especially in the periods between agricultural harvests - a key food insecurity coping response in times of stress or shortage. Many household respondents stated that they do not have sufficient food to eat, with the months February to April, being the period of highest food insecurity. Animal husbandry and fishing are not large contributors to household food security or their overall livelihood strategy. Few households seem to own and raise livestock, or hunt bush meat for commercial gain, but rather for household subsistence needs.

The study area PACs are surviving by pursuing a variety of livelihood strategies, mixing subsistence and cash-based pursuits (such as charcoal production), of which subsistence agriculture is the most crucial. In addition to agriculture, people rely heavily on their environment for the collection of a wide variety of natural resources, for a range of reasons, such as food, medicines, fuel, house building materials, etc. These resources are collected mainly, but not only, by women, and form a significant additional component to households’ nutrition and general needs basket. As such, any proposed project activities that could impact or curtail these livelihoods strategies and income sources will need to be understood by the proponent. There are vulnerable households present amongst the direct PAC and the project will need to identify and monitor these that may be impacted by project activities.

ISSUES AND CONSIDERATIONS

Both indirect and direct economic opportunities will be created as a result of the proposed project. Should the services from the surrounding area and villagers be used, the project should increase the amount of cash-flow into the affected villages and smaller settlements within the greater project area, and may further create opportunities for the sale of goods and services to the mine and mine employees. With the upgrading of services and access roads to site, this might potentially improve access and basic service provision for residents in the project area. The following benefits can be realised:

 Economic opportunities: both indirect and direct opportunities will be created (improved access and increase in amount of cash inflow to village in the immediate vicinity of the mine; upgraded services and road infrastructure; potential improvements in access and basic service provision for residents; and direct economic benefits from employment).  Employment benefits: and an increase in the skills base in the area. However, the general lack of skills in the study area reduces the permanent employment opportunities available to local residents unless they are subject to skills training and capacity building by the project.  Social development: initiatives are to take the form of a dedicated Social Development Plan (SDP) to be developed by the company, in consultation with key stakeholders.

The project will result in direct economic benefits at both provincial and national levels and any income generated from the mining operation will significantly increase the country’s tax-base

A Resettlement Action Plan (RAP) is currently being developed to address all farmers potentially affected by project activities. The areas under cultivation that may be affected will be remunerated through a compensation framework for affected farmers will be developed in conjunction with residents, local leadership and relevant government stakeholders. These same parties will need to ultimately agree to, and formally approve the proposed compensation mechanisms and quantum’s to be employed. The RAP will need to be developed and agreed to prior to the commencement of construction activities for project infrastructure that may impact on land under cultivation. The PAC have been reassured that any compensation measures appropriate to project induced economic

ii Social Impact Assessment displacement would follow national legislative processes and international guidelines regarding compensation for loss of assets or income sources, and that the process would not happen overnight.

Owing to the fact that no physical resettlement of people is required by the project, coupled with the fact that residents from surrounding PAC will probably be a large contributor to the project’s labour requirements, it is preferable to prioritise the local employment as far as possible. This will also assist in minimising population influx into the project area during the construction phase.

The mining operation might limit access to particular areas due to the presence of fences and infrastructure, as well as the mine infrastructure. This may affect existing access routes that local communities rely on, and could make access to natural resources and access between villages difficult or more time consuming. Given the number of access paths used by the local villagers and their location throughout the deposit areas, it may not be possible to design the mine to avoid all access routes completely. Where local access routes might be compromised, mitigation measures will involve the identification of appropriate alternative routes to important resources and between villages. Failure to do so could compromise the livelihood strategies of some villagers, however, the project is not anticipated to significantly affect their access to these resources.

The project is not anticipated to significantly impact on the PAC livelihood strategies currently being exercised by them, with the exception of famers identified as being subject to potential and temporary economic displacement. However, it is necessary to ensure that their current levels of production are maintained or improved on alternate land parcels that will need to be identified within a safe distance from the access road.

It is anticipated that some local farmers or PAC residents will be employed by the project in a temporary or permanent capacity, who may as a result of wage income neglect their farming activities for the duration of employment. However, it is common in these situations for the waged employee to hire labour to work their land, alternatively rely more on household members to do this (wives and children). Should this not be the case and these individuals rely on wages only for food purchases, they will be left temporarily vulnerable when their period of employment is over, and until such time as household agricultural production increases again.

The PAC are characterised by a large proportion of women-headed households, with disabled persons in these communities being reported. While it is not anticipated that the project will negatively impact on these vulnerable households’ exiting livelihood strategies and their vulnerability context, there is potential for the project to identify these and ensure project benefits are made available to them where possible. The RAP process that is underway will identify any affected farmers whose households can be considered to be vulnerable, in particular women-headed ones.

There is a strong possibility that the prospective mining operation will draw migrant labour in search of employment opportunities. The study area residents are largely poor and uneducated, which means that more educated and skilled labour will certainly be needed from areas such as Pemba and further afield. Such an influx can either cause some of these PAC villages (especially Sunate) to expand significantly, or cause a temporary oversupply of labour.

As with most social impacts, in-migration may also have a positive impact in terms of providing locals with small business opportunities due to an increased demand for local produce and other goods, as well as opportunities for cultural exchange. Although influx is considered outside the control of project developers, the IFC guidelines on project-induced in-migration suggest that influx can threaten ‘project security’ and that it should be managed as a project threat. The direct and indirect impacts associated with an influx of job seekers, and the presence of a limited expatriate workforce and contractors, can potentially have significant impacts on PAC villages. This influx result in many social, cultural, economic and political changes at the local level. This will need to be closely monitored by the company, PAC and relevant government stakeholders.

General safety issues will be of importance owing to the proximity of the settlements to existing and potential future access routes for mining operations. The mining operation can pose severe safety iii Social Impact Assessment risks to individuals who enter high risk areas of the mine site without authorisation, as well as communities living along transport corridors that will be subject to increased vehicular traffic. Should the mine block important access routes to natural resources, and safe route alternatives are not identified, community members might be tempted to cross the mine area exposing themselves to safety risks or harassment from security personnel. Accidents involving local residents carry a high project risk and can quickly become a source of conflict.

Inward migration and increases in the labour force employed in the area may impact negatively on the health standards of people in villages in the mine expansion area. This, however, needs to be understood within the context of a number of issues. Malaria rates are high in the area (as for the majority of the country) and it is unlikely that inward migration will increase these infection rates. An increase in levels of HIV/AIDS and other STD’s is also a concern. Current infection rates for the villages in the project area are not known, and inward migration may increase the rates of infection if appropriate prevention and education programmes are not implemented for mine personnel and contractors on site.

Dust generation could potentially impact on community and worker health due to elevated concentrations of dust particulate matter (PM10), especially along both roads and cleared areas. The impact of elevated levels of dust could result in an impact of moderate significance, especially when mining and roads are located in close proximity to villages. In addition, dust could be generated once the tailings have dried out, since they are susceptible to wind-blown dispersal.

The mining operation will cause an increase in ambient noise levels in the surrounding areas. The residents living adjacent to the project area will be most affected by noise, both during the construction and operation phases. This is likely to be an impact of moderate significance that can be mitigated by using standard industry practice to reduce noise and vibration levels. The effect of this on adjacent communities and the workforce will however be largely negligible.

The natural landscape of the area will be significantly disrupted through the establishment of the mine. The visual and landscape impacts will not be significant for PAC villages owing to their distance from the mine site only. The visual impacts of the pits, plant, waste rock dumps and storage facilities will be significant and permanent, but localised and only visible from the air. As a result of mining activity, vegetation will be cleared, large industrial structures will be built and vehicles and earth moving equipment will become familiar in the landscape. Good housekeeping and ensuring that those aspects of the operation that can be rehabilitated will contribute to mitigating this impact.

Mining will result in a significant increase in vehicular traffic in the area, and this may occasion increased visual and noise impacts for the villages situated along the roads in the area. At present, changes to the landscape and visual quality of the project area are considered a high impact.

Social systems and structures have evolved in the study area over generations and are not static, but have responded dynamically to the changing social environment. Any development of the scale of the proposed project will result in significant social change; the influence of the project on the various village social systems and structures is likely to be experienced in a number of ways - both positive and negative. Construction and mining activity, increase in vehicular traffic, intensification of economic activity and improved economic/market linkages are all likely to alter the prevailing rural nature of the direct PAC settlements.

Developments of this magnitude are frequently associated with changes to social structures and associated tensions and social pathologies. These may be related to a variety of factors, including the influx of outsiders in search of employment, increased wealth, or reliance on cash income, the introduction or increase of communicable diseases, increased crime, disturbance of traditional hierarchies, as well as open conflict if not managed appropriately.

As noted above, in-migration to the project area can be expected during the construction phase and conflicts between them and local PAC can be expected if the project recruitment processes are not implemented accordingly. Increased pressure on limited social services is almost certain and this can also lead to tensions - specifically around access to health and education services. Intra- iv Social Impact Assessment community conflict over access to jobs can also be anticipated in and amongst the direct PAC if expectations around these opportunities, and the way in which they are allocated, are not carefully managed by the company and its contractors.

Conflict can, and often does, arise from the economic displacement of PAC (farmers) in commercial mining project contexts. It is possible that farmers who won’t be affected by project activity, and may be resentful that although they are not eligible for compensation, may still feel entitled to it. This can possibly create tension between neighbouring farmers and compensated farmers, especially if the latter are utilising adjacent machambas, or even expanding them, at the perceived expense of non- compensated farmers. It is hoped that any fears or perceptions the PAC and affected farmers have around this issue will be allayed through the RAP process stakeholder engagement, compensation negotiation and reporting disclosure sessions that will be undertaken during the remainder of 2017.

IMPACT ASSESSMENT

The following issues and impacts have been assessed in this report:

Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance CONSTRUCTION PHASE Issue 1: Land Acquisition Impact 1.1: Reduced community access to agricultural land Without Mitigation Short term Study area Very severe Definite HIGH - With Mitigation Short term Study area Moderate May occur MODERATE - Impact 1.2: Heightened food insecurity and increased local food prices Without Mitigation Short term Study area Very severe May occur MODERATE - With Mitigation Short term Study area Beneficial Probable MODERATE + Impact 1.2: Reduced access to natural resources and ecosystem goods and services Without Mitigation Short term Study area Severe Definite HIGH - With Mitigation Short term Study area Moderate May occur MODERATE - Impact 1.4: Impact on Cultural Heritage Resources (disruption of graves and sacred sites) Without Mitigation Permanent Study area Very severe May occur HIGH - With Mitigation Permanent Study area Moderate May occur MODERATE - Impact 1.5: Loss of ‘sense of place’ Without Mitigation Permanent Study area Moderate Probable MODERATE - With Mitigation Permanent Study area Slight Unlikely LOW - Issue 2: Economic Growth and Employment Opportunities Impact 2.1: Provision of direct and indirect employment opportunities Without Mitigation Short term Study area Moderately beneficial Probable MODERATE + With Mitigation Short term Study area Very beneficial Definite HIGH + Impact 2.2: Increased economic opportunities Without Mitigation Short term Study area Slightly beneficial May occur LOW + With Mitigation Short term Study area Moderately beneficial Definite MODERATE + Impact 2.3: Training opportunities and skills development Without Mitigation Short tern Study area Beneficial May occur MODERATE + With Mitigation Short term Study area Very beneficial Definite HIGH + Impact 2.4: Localised community conflict due to perceived differential benefit distribution and in-migrant influx Without Mitigation Short term Study area Moderate Probable MODERATE - With Mitigation Short term Study area Slight Unlikely LOW - Issue 3: Health, Safety and Security Impact 3.1: Increased transmission of communicable Diseases (TB, STD, HIV etc) Without Mitigation Long term Regional Very severe Probable HIGH - With Mitigation Long term Regional Moderate Probable MODERATE - Impact 3.2: Dust impacts due to additional access roads and construction traffic Without Mitigation Short term Study area Moderate Definite MODERATE - With Mitigation Short term Study area Slight Definite LOW - Impact 3.3: Increase in noise and traffic due to improved roads Without Mitigation Short term Study area Moderate Definite MODERATE - With Mitigation Short term Study area Slight Probable LOW - Impact 3.4: Road traffic safety risks and potential mortality Without Mitigation Short term Study area Very severe Probable HIGH - With Mitigation Short term Study area Moderate May occur MODERATE - Impact 3.5: Increased household vulnerability Without Mitigation Short term Study area Moderate Definite MODERATE - With Mitigation Short term Study area Slight Probable LOW - Issue 4: In-Migration Impact 4.1: Increased pressure on natural resources Without Mitigation Short term Study area Moderate Definite MODERATE - v Social Impact Assessment

Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance With Mitigation Short term Study area Slight Probable LOW - Impact 4.2: Increased pressure on social infrastructure Without Mitigation Short term Regional Very severe Definite HIGH - With Mitigation Short term Regional Moderate Probable MODERATE - Impact 4.3: Increased competition or conflict over project benefits between in-migrants and local residents. Without Mitigation Short term Regional Severe Probable MODERATE - With Mitigation Short term Regional Moderate May Occur LOW - Impact 4.4: Increase in social pathologies, prostitution, petty criminality and domestic violence. Without Mitigation Short term Regional Very severe Definite HIGH - With Mitigation Short term Regional Moderate Probable MODERATE - OPERATIONAL PHASE Issue 1: Economic Growth and Employment Opportunities Impact 1.1: Provision of direct and indirect employment opportunities Without Mitigation Long term Study area Moderately beneficial Probable MODERATE + With Mitigation Long term Study area Beneficial Definite HIGH + Impact 1.2: Increased economic opportunities Without Mitigation Long term Regional Moderately beneficial May occur MODERATE + With Mitigation Long term Regional Beneficial Definite HIGH + Impact 1.3: Training opportunities and skills development Without Mitigation Long term Regional Moderately beneficial May occur MODERATE + With Mitigation Long term Regional Beneficial Probable HIGH + Impact 1.4: Community conflict due to perceived differential benefit distribution Without Mitigation Medium term Study area Slight Probable MODERATE - With Mitigation Medium term Study area Slight Unlikely LOW - Impact 1.5: Social development opportunities Without Mitigation Long term Study area Moderately beneficial Probable MODERATE + With Mitigation Long term Study area Beneficial Definite HIGH + Issue 2: Health, Safety and Security Impact 2.1: Increased transmission of communicable Diseases (TB, STD, HIV etc) Without Mitigation Long term Regional Very severe Probable HIGH - With Mitigation Long term Regional Moderate Probable MODERATE - Impact 2.2: Dust impacts due to additional access roads and construction traffic Without Mitigation Long term Study area Moderate Definite MODERATE - With Mitigation Long term Study area Slight Definite LOW - Impact 2.3: Increase in noise and traffic due to improved roads Without Mitigation Long term Study area Moderate Definite MODERATE - With Mitigation Long term Study area Slight Probable LOW - Impact 2.4: Road traffic safety risks and potential mortality Without Mitigation Long term Study area Very severe Probable HIGH - With Mitigation Long term Study area Moderate May occur MODERATE - Impact 2.5: Increased household vulnerability Without Mitigation Short term Study area Moderate Definite MODERATE - With Mitigation Short term Study area Slight Probable LOW - DECOMMISSIONING PHASE Issue 1: Economic Growth and Employment Opportunities Impact 1.1: Indirect and direct employment opportunities Without Mitigation Short term Study area Slight Definite LOW + With Mitigation Short term Study area Moderate Definite MODERATE + Impact 1.2: Decreased economic development opportunities Without Mitigation Short term Study area Moderate Definite MODERATE - With Mitigation Short term Study area Slight Probable LOW - Impact 1.3: Reduced training and skills development Without Mitigation Long term Regional Very severe Probable HIGH - With Mitigation Long term Regional Moderate Probable MODERATE - Impact 1.4: Impacts on local livelihood strategies Without Mitigation Medium term Study area Moderate Definite MODERATE - With Mitigation Medium term Study area Slight Probable LOW - CUMULATIVE IMPACTS Increased pressures on existing social services MODERATE - Increased conflict over access to benefits from multiple projects in the study area LOW - An overall loss of sense of place or community identity LOW - Increased traffic congestion and road degradation MODERATE - Increased employment and economic opportunities HIGH + Development of human capital (training and skills development) HIGH + Increased awareness of health and safety MODERATE + Community development and social infrastructure upgrades HIGH +

vi Social Impact Assessment

CONCLUSION

Most of the PAC inhabitants are uneducated and unskilled, with limited alternative livelihood strategies and economic opportunities open to them. The villages surrounding the project area rely largely on subsistence farming and the collection of natural resources and wild foods to meet their household food needs, with very little in the way of formal employment opportunities available to them.

The villages lack basic infrastructure and sanitation facilities, with poor healthcare facilities and limited access to secondary or higher education. The village members do hold high expectations for the project and hope to benefit directly or indirectly through positive project-related impacts.

Project-related activities may lead to increased risk to safety due to improved roads and increased risk of disease transmission and prostitution in both the construction and the operational phases, mainly as a result of an influx of people searching for employment and economic opportunities. These impacts will be of high negative significance without mitigation measures but can be reduced to moderate negative if the recommended measures are implemented.

The assessment of impacts indicated that land acquisition during the construction phase will result in a limited, if not negligible, reduction in community access to agricultural land, possible heightened food insecurity for in-migrant households, and a limited reduction in access to natural resources and ecosystem goods and services. The project’s overall impact on local PAC food security throughout the construction and mining phases is deemed to be of low significance if the recommended mitigation and enhancement measures are implemented. With the exception of in-migrant households that are expected to settle in the project area during the construction phase, it is only these that have been identified as being potentially worse off once project work opportunities decline. It is these remnant households, and not the local PAC, who will in all likelihood be left more vulnerable to the project’s boom and bust economic cycle.

The beneficial impacts from the project include direct and indirect employment opportunities, economic opportunities, training and skills development and improvement in basic infrastructure, social services and the provision of socio-economic development in both the construction and the operational phases as well as through the additive cumulative impacts in this regard that other planned mining projects in the area will promote.

The socio-economic benefits to the surrounding communities will provide economic opportunities and community development that will be welcomed by local communities. It is, however, essential that project-related activities consider the cultures and traditions of the local communities. It is necessary to maintain engagement with local communities as well as with local and district authorities throughout the project phases to ensure that communities are aware of project related activities and the proponent is aware of any community grievances or concerns and can, where feasible, address these timeously and effectively.

Crucially, the more serious negative impacts, that is those associated with in-migration to the study area, will need to be managed and controlled in cooperating with local PAC, traditional leadership and government stakeholders if the detrimental effects of these is to be minimised.

vii Social Impact Assessment TABLE OF CONTENTS 1 STUDY TERMS OF REFERENCE AND APPROACH ...... 1 1.1 PROJECT OVERVIEW ...... 1 1.2 TERMS OF REFERENCE ...... 1 1.3 METHODOLOGY AND APPROACH ...... 2 1.3.1 Methodological Framework...... 2 1.3.2 Study Approach ...... 2 1.3.3 Socio-Economic Baseline Survey (SEBS) ...... 3 1.3.4 Focus Group Discussions ...... 3 1.3.5 Key Informant Interviews ...... 3 1.4 DATA ANALYSIS ...... 4 1.5 STUDY TEAM ...... 4 1.6 REPORT STRUCTURE ...... 4 2 LEGISLATIVE FRAMEWORK ...... 5 2.1 INSTITUTIONAL STAKEHOLDERS ...... 5 2.1.1 MITADER (Ministério Da Terra, Ambiente e Desenvolvimento Rural) ...... 5 2.1.2 National Commission For Sustainable Development ...... 5 2.2 MOZAMBICAN LEGISLATION ...... 5 2.3 INTERNATIONAL LEGISLATION AND GUIDELINES ...... 6 2.3.1 The Equator Principles ...... 6 2.3.2 The International Finance Corporation ...... 6 3 THE COUNTRY AND STUDY AREA SOCIO-ECONOMIC CONTEXT...... 8 3.1 INTRODUCTION ...... 8 3.2 NATIONAL DEMOGRAPHIC PROFILE ...... 9 3.3 NATIONAL OVERVIEW...... 9 3.3.1 Economic Growth ...... 9 3.3.2 Mozambique’s Development Agendas ...... 10 3.3.3 Economic Sectors ...... 11 3.3.4 Household Dynamics and Social Services ...... 12 3.3.5 Education ...... 13 3.3.6 Health...... 13 3.3.7 Household Income and Expenditure ...... 13 3.3.8 Livelihood Strategies ...... 14 3.4 THE PROJECT-AFFECTED COMMUNITIES ...... 14 3.4.1 Direct Project Affected Communities ...... 14 3.4.2 Indirect Project Affected Communities ...... 15 3.5 LOCAL DEMOGRAPHICS AND SOCIAL INFRASTRUCTURE ...... 16 3.5.1 Local Demographics ...... 16 3.5.2 Educational Status ...... 17 3.5.3 Culture and Religion ...... 18 3.5.4 Land Tenure ...... 18 3.5.5 Migrancy ...... 19 3.5.6 Household Living Conditions ...... 19 3.5.7 Social Infrastructure Assets ...... 20 3.5.8 Basic Infrastructure ...... 21 3.6 HOUSEHOLD LIVELIHOOD STRATEGIES ...... 23 3.6.1 Employment Sectors ...... 23 3.6.2 Natural Resource Use ...... 23 3.6.3 Local Livelihoods ...... 24 3.6.4 Household Income and Expenditure ...... 28 3.7 FOOD SECURITY AND HOUSEHOLD VULNERABILITY ...... 30 3.7.1 Food security ...... 30 3.7.2 Household Vulnerability ...... 32 3.8 SUMMARY SOCIO-ECONOMIC BASELINE STATEMENT...... 33 3.9 SOCIO-ECONOMIC DEVELOPMENT NEEDS ...... 34 4 MAIN ISSUES INFORMING THE SOCIAL IMPACT ASSESSMENT ...... 35 4.1 NATIONAL AND REGIONAL BENEFITS ...... 35 4.2 LAND ACQUISITION AND ECONOMIC DISPLACEMENT ...... 35

viii Social Impact Assessment

4.3 GENERAL ACCESS TO NATURAL RESOURCES ...... 35 4.4 LOCAL LIVELIHOOD STRATEGIES ...... 36 4.5 HOUSEHOLD VULNERABILITY ...... 36 4.6 IN-MIGRATION ...... 36 4.7 COMMUNITY HEALTH AND SAFETY ...... 36 4.8 AIR QUALITY ...... 37 4.9 NOISE AND VIBRATION ...... 37 4.10 LANDSCAPE AND VISUAL AMENITY (SENSE OF PLACE) ...... 37 4.11 CHANGES TO SOCIAL SYSTEMS AND STRUCTURES ...... 37 4.12 COMMUNITY CONFLICT ...... 37 5 IDENTIFICATION AND ASSESSMENT OF POTENTIAL IMPACTS ...... 39 5.1 SUMMARY OF ANTICIPATED IMPACTS ...... 39 5.2 IMPACTS RESULTING FROM THE CONSTRUCTION PHASE ...... 40 5.2.1 Issue 1: Land Acquisition ...... 40 5.2.2 Issue 2: Economic Growth and Employment Opportunities ...... 43 5.2.3 Issue 3: Health, Safety and Security ...... 44 5.2.4 Issue 4: In-Migration ...... 48 5.3 IMPACTS RESULTING FROM THE OPERATIONAL PHASE ...... 50 5.3.1 Issue 1: Economic Growth and Employment Opportunities ...... 50 5.3.2 Issue 2: Health, Safety and Security ...... 51 5.4 MINE CLOSURE AND DECOMMISSIONING PHASE IMPACTS ...... 52 5.5 CUMULATIVE IMPACTS ...... 53 6 SOCIAL MITIGATION MANAGEMENT FRAMEWORK ...... 54 7 CONCLUSION ...... 56 REFERENCES ...... 57 ANNEXURE A: CES IMPACT RATING SCALE ...... 59 ANNEXURE B: ANALYTICAL FRAMEWORK ...... 61 ANNEXURE C: FGD & KII QUESTIONS ...... 64

ix Social Impact Assessment LIST OF FIGURES

FIGURE 3.1: THE PROJECT AREA (GREEN POLYGON) IN RELATION TO NEAREST VILLAGES ...... 15 FIGURE 3.2: MACHAMBAS LOCATED ALONG THE PROPOSED ACCESS ROAD AND IN THE PROJECT AREA ...... 16 FIGURE 3.3: TYPICAL HOUSING AND BUSINESS STRUCTURES FOUND IN THE STUDY AREA - BOTH BRICK AND MORTAR (LEFT), AS WELL AS TRADITIONAL WATTLE AND DAUB HOUSES (RIGHT)...... 19 FIGURE 3.4: HOUSEHOLD HOME OWNERSHIP ...... 20 FIGURE 3.5: METORO HOSPITAL ...... 20 FIGURE 3.6: HOUSEHOLD WATER SOURCES ...... 21 FIGURE 3.7: TYPICAL PIT LATRINES AND BOREHOLE WATER POINTS UTILISED BY COMMUNITIES ...... 22 FIGURE 3.8: HOUSEHOLD ENERGY SOURCES ...... 22 FIGURE 3.9: SOLAR PANELS IN NANKHUMI AND THE MAIN ELECTRICITY GRID ALONG THE ROAD IN SUNATE ...... 22 FIGURE 3.10: HOUSEHOLD NATURAL RESOURCE USE ...... 24 FIGURE 3.11: THE AREA’S NATURAL RESOURCES ARE UTILISED FOR WOOD CARVING AND FOR EXTENSIVE CHARCOAL PRODUCTION THAT THE MAJORITY OF HOUSES RELY ON FOR CASH INCOME ...... 24 FIGURE 3.12: TYPICAL ROAD SIDE MACHAMBAS IN THE PROJECT STUDY AREA ...... 25 FIGURE 3.13: YEARS THAT MACHAMBAS HAVE BEEN HELD ...... 26 FIGURE 3.14: CROPS PLANTED AT THE TIME OF SURVEY ...... 26 FIGURE 3.15: ECONOMIC TREES (% OF ALL RECORDED TREES) ...... 28 FIGURE 3.16: ECONOMIC TREES RECORDED. LEFT TO RIGHT: MATURE CASHEW, PRODUCING PAPAYA AND SAPLING CASHEW...... 28 FIGURE 3.17: HOUSEHOLD INCOME SOURCE (% OF SURVEYED HOUSEHOLD REPORTING THESE SOURCES) ...... 29 FIGURE 3.18: HOUSEHOLD EXPENDITURE CATEGORIES ...... 30 FIGURE 3.19: TYPES OF FOOD CONSUMED BY HOUSEHOLDS ...... 31 FIGURE 3.20: HOUSEHOLD ACCESS TO PRODUCTIVE (FOOD/FRUIT) TREES ...... 31 FIGURE 3.21: HOW HOUSEHOLD FOOD IS OBTAINED ...... 32

LIST OF TABLES

TABLE 1.1: SEBS QUESTIONNAIRE ADMINISTRATION...... 3 TABLE 1.2: FOCUS GROUP DISCUSSION SESSIONS ...... 3 TABLE 1.3: FOCUS GROUP DISCUSSION SESSIONS ...... 3 TABLE 2.1: APPLICABLE MOZAMBICAN LEGISLATION...... 5 TABLE 2.2: INTERNATIONAL FINANCE CORPORATION PERFORMANCE STANDARD OBJECTIVES ...... 7 TABLE 3.1: PROVINCIAL AND DISTRICT POPULATION NUMBERS ...... 16 TABLE 3.2: ESTIMATED PROJECT-AFFECTED COMMUNITIES’ DEMOGRAPHICS ...... 16 TABLE 3.3: AGE CATEGORIES OF SURVEYED HOUSEHOLDS...... 17 TABLE 3.4: EDUCATIONAL STATUS OF SURVEYED HOUSEHOLDS ...... 18 TABLE 3.5: EMPLOYMENT AND UNEMPLOYMENT STATUS OF THE SURVEYED HOUSEHOLDS ...... 23 TABLE 3.6: GENERAL CROP CULTIVATION SEASONS ...... 27 TABLE 3.7: INCOME PRICES FOR CROPS (2017) AT LOCAL MARKETS ...... 27 TABLE 3.8: MAIN ECONOMIC ACTIVITIES ENGAGED IN BY HOUSEHOLDS ...... 28 TABLE 3.9: AVERAGE MONTHLY INCOME GENERATED BY THE VARIOUS ECONOMIC ACTIVITIES ...... 29 TABLE 3.10: THE COMPONENTS OF FOOD SECURITY ...... 30 TABLE 5.1: POTENTIAL SOCIO-ECONOMIC ISSUES AND ASSOCIATED IMPACTS ...... 39 TABLE 7.1: SOCIAL MITIGATION MANAGEMENT FRAMEWORK ...... 54

x Social Impact Assessment 1 STUDY TERMS OF REFERENCE AND APPROACH

1.1 PROJECT OVERVIEW

This Social Impact Assessment (SIA) forms part of the ESHIA for the Ancuabe Graphite Project (hereafter referred to as ‘the project’) conducted in accordance with the Regulations on the Environmental Impact Assessment (EIA) process (Decree 54/2015 of December 31). The proponent is in the process of applying for Environmental Authorisation (EA) from the Government of Mozambique (GoM). The ESHIA and specialist studies are submitted at the national-level to the Ministério de Terra Ambiente, e Desenvolvimento Rural (MITADER) for decision-making.

The methodology and approach to the SIA study process includes the use of primary and secondary data collection and analysis of qualitative and quantitative data. The primary data collection methods comprise of Focus Group Discussions (FGD) and Key Informant Interviews (KII). The SIA was informed by household-level data collected through a Socio-Economic Baseline Survey (SEBS) conducted as part of the study process. Secondary data is sourced mainly from the 2007 Mozambican Census.

1.2 TERMS OF REFERENCE

According to the International Association of Impact Assessments (IAIA, 2012), an SIA can be defined as: “the processes of analysing, monitoring and managing the intended and unintended social consequences, both positive and negative, of planned interventions (policies, programs, plans, projects) and any social change processes invoked by those interventions”. (IAIA, 2012:1).

In accordance with the above, the Terms of Reference (ToR) for this SIA are as follows:

 Identify all Project Affected Communities (PAC) and villages who will be directly impacted by the project;  Describe the local socio-economic environment, with particular reference to the directly affected communities;  Determine the current land use of the development area and the area surrounding the development boundary that are likely to be affected by the project;  Identify and list all applicable national, regional or international legislation that could impact future land uses in the project area;  Determine if physical and economic resettlement will occur and if so, determine the number of households (and people) that will need to be resettled as a result of the project;  Establish a baseline understanding of current state of livelihoods, income sources, expenditure trends, education levels and food security;  Assess the local social infrastructure and access to facilities (health, sanitation, education and markets);  Identify local development needs and problems and evaluate (or provide recommendations

Coastal & Environmental Services 1 Social Impact Assessment on) how the project can contribute to community development;  Identify and assess all potential socio-economic impacts of the project on local communities and all stakeholders;  Investigate possible effects on livelihoods, income levels, education levels, food security and other factors relevant to the affected communities;  Describe and investigate possible effects on traditional structures and cultural and religious customs; and  Provide mitigation measures for all negative impacts and enhancement measures for positive impacts.

This SIA therefore assesses the potential impacts associated with the project, provides the mitigation and management framework required to enhance or reduce the significance of these impacts. The impact significance rating methodology used in this assessment is contained in Annexure A.

1.3 METHODOLOGY AND APPROACH

1.3.1 Methodological Framework

CES has adopted the Sustainable Rural Livelihoods Approach to conceptualise the PAC context and report on the data captured during the Socio-Economic Baseline Survey (SEBS) process conducted for this SIA. According to Ellis (2000: 10):

“A livelihood comprises the assets (natural, physical, human, financial and social capital), the activities, and the access to these (mediated by institutions and social relations) that together determine the living gained by the individual or household.”

This focus on both assets (“what people have”) and activities and access to resources (“what people can do with what they have”) provides a useful framework for gathering information related to PAC wellbeing. It is also serves to draw attention to the core influences, processes and multiple interactions that affect these PAC livelihoods (DFID 2000). The framework allows for the tracking over time of a household’s productive activities in relation to its vulnerability context (Hulme and Shepard 2003). The vulnerability context is defined as the external environment within which people exist, but over which they have little control (DFID, 2000).

This context considers what the outside factors are that are driving change at local household level (existing and those changes introduced by the Grafex project), in order to determine what the ability of individual households is to cope with these change related risks, stresses and shocks. Households that are unable to cope (make temporary adjustments in response to change) or adapt (make longer term shifts in livelihood strategies) are vulnerable to trends and surprises over which they have little control. The livelihoods approach assumes that rural people construct their livelihoods in variable ways that actively seek to avert such risks by investing in multiple livelihood strategies, generally alternating between various combinations of available assets and resources (Scoones 1998). The livelihoods of the study area PAC are described in this report, along with an assessment of their potential vulnerability to any project induced changes and impacts on these existing strategies.

Refer to Annexure B for a more detailed description of this analytical framework.

1.3.2 Study Approach

The methodology conducted for this Social Impact Assessment (SIA) included primary and secondary data collection. Data for this SIA has been complimented by household-level survey data collected through Socio-economic Baseline Surveys (SEBS). The SEBS was conducted by the CES team over the months of June/July 2017. The aim of the site visit was to identify the direct and indirect Project Affected Communities (PAC) and to assess the potential impacts of the proposed project activities on these communities.

Coastal & Environmental Services 2 Social Impact Assessment The two CES personnel were assisted by a fieldwork coordinator (Mr Rahamane Bacar), and 5 survey enumerators from the town of Montepuez that CES employs frequently for these purposes. CES conducted the required site visit and survey from 26 June to 6 July 2017. The site visit included Focus Group Discussions (FGDs) with villages within the project area as well as Key Informant Interviews (KII) with staff from local schools. All meetings, FGDs and KII were conducted in Portuguese and English and translated into the local language (Macua) when necessary.

Secondary data was additionally collected to determine the current socio-economic context of Mozambique at the national, provincial and district level to greater inform the potential impact of the proposed project on the surrounding area.

1.3.3 Socio-Economic Baseline Survey (SEBS)

Prior to the commencement of the SEBS on 26 June 2017, a refresher training session for the emunerators was held to ensure familiarity with the survey instruments and methodology. The surveys were conducted using an Android tablet. The purpose of the SEBS was to obtain data pertaining to household dynamics and socio-economic status. The duration of each interview was approximately 45 minutes. A total of 140 SEBS questionnaires were administered at the following villages:

Table 1.1: SEBS questionnaire administration Village/ Total Sunate (Silva Macua) Metoro Nankhumi 140 105 11 24

The surveys were conducted from 27 June - 5 July 2017.

1.3.4 Focus Group Discussions

There 2 Focus Group Discussions (FGD) conducted at Natocua and Nankhumi during the site visit (Table 1.2). Various village members attended the sessions, including community leaders and representatives and various village organisations (women and youth). The objectives of the FGD was to introduce the proposed project, the proponent and the SIA team, to provide a brief description of the proposed project, the ESHIA and SIA processes and to collect socio-economic local-level data on village dynamics; the facilities and social infrastructure available to the villages (education, recreation, health, safety and security); current land-uses; natural resources uses; agricultural and livestock practices; livelihood strategies; income and expenditure patterns; and cultural and traditional practices. The village members were given an opportunity to discuss any potential impacts and to raise any comments or concerns about the proposed project. The duration of the FGD sessions ranged from 2 to 3 hours.

Table 1.2: Focus Group Discussion Sessions Village Date & Time Number of Attendees Natocua 05/07/2017 (09:30) 9 Nankhumi 04/07/2017 (09:00) 10

1.3.5 Key Informant Interviews

KII were held with headmasters or teachers from two different primary schools (Natocua and Nankhumi). The aim of the KII was to obtain detailed information regarding the education facilities and infrastructure available to the local communities and to understand the challenges they faced

Table 1.3: Focus Group Discussion Sessions Village Date & Time Number of Attendees Natocua 04/07/2017 (09:15) 6 Nankhumi 04/07/2017 (11:20) 2

Refer to Annexure C for the FGD and KII questionnaires.

Coastal & Environmental Services 3 Social Impact Assessment 1.4 DATA ANALYSIS

The data collected was both qualitative and quantitative. The quantitative data analysis comprised of data capturing and statistical analysis of key socio-economic variables across villages. The data was extrapolated and compared to district and national level secondary data from sources, such as the Mozambique Census of 2007. The qualitative data analysis included a thematic approach that identified basic themes and socio-economic patterns within the data. The information was verified across data collection methods, contributing to the reliability and the validity of the findings. The SEBS dataset was incorporated into a Microsoft Access database for subsequent analysis and representation in this report.

1.5 STUDY TEAM

The SIA project team includes the following members:

Marc Hardy Marc holds an M.Phil (Environmental Management) from Stellenbosch University’s School of Public Management and Planning (South Africa) as well as undergraduate degrees in Environmental Science, Sociology and Development Studies from the University of Cape Town (UCT). His professional interests include environmental, health and social impact reporting for linear, energy and large infrastructure projects, resettlement planning, strategic environmental reporting, environmental and social due diligence studies and compliance reviews for development financing institutions, environmental auditing and compliance monitoring. In his time with CES, Marc has been responsible for the planning and management of projects and research/ specialist teams and support staff, as well as being responsible for the management of the CES Maputo, Mozambique office.

Lungisa Bosman Lungisa holds a Bachelor of Social Science from UCT (SA), with majors in Public Administration and Sociology, and a Post Graduate Diploma in Organisation and Management. Over the past 20 years, Mr Bosman has gained considerable experience in social facilitation and community education. He is currently working full-time as a consultant for CES, involved in a number of ESIA. SIA and RAP projects to date. Lungisa has been involved in a number of projects where he has utilized his facilitation, social research and fieldwork for CES. These included most of the resettlement projects CES is involved in, which required extensive fieldwork coordination and survey administration. He has been involved in an annual EIA course lecturing on public participation, stakeholder engagement and SIA for numerous years now.

1.6 REPORT STRUCTURE

This report follows the following structure:

Chapter 1 has provided a brief introduction to the project, the rationale for the SIA and associated Terms of Reference. It also describes the methodology which was employed for this study. Chapter 2 describes the legislative framework that is applicability Chapter 3 focuses on the PAC and provides an analysis of the social data obtained during the baseline survey, Key Informant Interviews (KII) and Focus Group Discussions (FGD). Chapter 4 summarises the anticipated issues, risks and impacts anticipated to result from the development of the project. Chapter 5 assesses the potential project impacts. Chapter 6 summarises all the mitigation and/or project enhancement measures by providing a health impact mitigation and enhancement strategy. Chapter 7 concludes the report.

Coastal & Environmental Services 4 Social Impact Assessment 2 LEGISLATIVE FRAMEWORK

The institutional and legislative framework of Mozambique and the applicable international best practice guidelines applicable to the socio-economic context of the project are provided in the section below.

2.1 INSTITUTIONAL STAKEHOLDERS

2.1.1 MITADER (Ministério Da Terra, Ambiente e Desenvolvimento Rural)

The Ministry of Land, Environment and Rural Development (MITADER), formerly known as MICOA, regulates and enforces sustainable environmental management. MITADER is the government body responsible for processing Environmental Impact Assessments (EIA) in Mozambique. Since its establishment, then MICOA, it has developed a range of policies and regulations for environmental management, including the EIA Regulations, Decree 54/2015 of December 31.

2.1.2 National Commission For Sustainable Development

The National Commission for Sustainable Development was established under a provision in the Environmental Act in 2000 with the main role of coordinating and integrating sectoral policies and plans regarding environmental management (Development Bank of Southern Africa, 2007).

2.2 MOZAMBICAN LEGISLATION

A list of Mozambican legislation and regulations are provided in Table 2-1 below.

Table 2.1: Applicable Mozambican Legislation. Date of Legislation Relevance to proposed project Enactment The Constitution of Mozambique embodies the new democratic rule of the country and recognises its independence and challenges faced. The Constitution sets out fundamental rights, duties and freedoms of Mozambican citizens. Chapter V, Economic, Social Rights and Constitution of Duties provides principles for fair compensation if land is expropriated1. Article 90 highlights the the Republic of 2004 importance of protecting the environment and sustainable use of natural resources. The Mozambique importance of the agricultural sector is emphasised as a key driver in national development. Article 106 recognises the contribution of small-scale production to the national economy and the importance in supporting small-scale developments. The Law provides a framework for control and ownership of land and natural resources. It stipulates the process to determine and acquire land-use rights for use and benefit. Customary rights are recognised for communities and individual members. The Law details the process of acquiring rights based on customary claims, which includes a consultation-based process. The Law recognises the right to land that is inherited or acquired due to occupancy through customary tenure or good faith, except in legally defined reserved or areas where land has been Law Land Act legally transferred to another person or body. Existing rights may be terminated in the public 19/1997 interest or after the payment of fair compensation. Article 24 identifies that, in rural areas, local communities need to participate in:  The management of natural resources;  The resolution of conflicts;  The process of obtaining title as established in No. 3, of Article 13 of the Land Law; and  In the identification and definition of the boundaries of the land they occupy. The Regulation applies to all areas outside of municipal jurisdiction and stipulated the following:  Where there is joint title, such title belongs to all titleholders equally. When one of the titleholders dies, the other holders continue as the rightful titleholders;  Consultations between the applicants and the local community are mandatory before a Decree decision to grant title use is made by the provincial governor or higher authority. 66/1998, Land Act amended Article 14 establishes that the title holders of DUATs must: Regulations by Decree  Allow the access through its plots to people that have no access to public roads or to water 1/2003 resources;  Good faith occupiers and local communities may apply for demarcation and title; and  Titleholders are required to pay a tax for authorisation of the right to use land, plus an annual tax. Family businesses and local communities are exempt from such taxes.

1 Chapter V of the Constitution states: “The State shall recognise and guarantee the right of ownership of property” and “Expropriation may take place only for reasons of public necessity, utility, or interest, as defined in the terms of the law, and subject to payment of fair compensation”

Coastal & Environmental Services 5 Social Impact Assessment

Date of Legislation Relevance to proposed project Enactment Land use rights do not imply ownership and area occupied by local communities cannot prevent economic or other activities from being conducted, however if outside entities obtain land-use rights that displace current land-users, they must enter into negotiations with local communities and their leaders to obtain consent. It is essential that the local community be actively involved and consulted in the demarcation process. The Mozambican authorities must facilitate the official granting of the land transfer once the land-use rights for the new entity have been approved. The Act provides a framework for preparation, approval, implementation, monitoring and supervision for land planning and responsibilities associated with these activities. The Act Land Planning Law applies to entire national territory for the purpose of planning. The Act regulates relations Act 19/2007 between different levels of public administration, the relations with other public and private individuals as well as different economic, social and cultural interests, including local communities. The Regulations set out measures to ensure occupation and sustainable use of natural Land Planning Decree resources, protection of diversity in different regions, use and access to infrastructures and Regulations 23/2008 promotion of national cohesion and public safety. Regulation of These regulations formulate the procedures for any resettlement in Mozambique, and especially Resettlement articulate the assistance required from Government during a resettlement process. These Decree Process Resulting regulations are used during the ESIA process to inform all project affected communities of their 31/2012 from Economic rights with regard to economic displacement. The articles in this regulation are used to structure Activities most of the RAP procedures at community level if and when required. MINING ACTIVITIES The Policy indicates the need for drafting a Social Development Plan (SDP) as part of the Mining Corporate Social Contract outlining the key potential economic development areas in the region, aligning these Responsibility with proposed community development plans in accordance with national socio-economic Policy for the Resolution interventions. The report should be discussed with relevant District Administrator and approved Extractive No. by the Provincial Government. The document is a stand-alone live document required for the life Industry of 21/2014 of the mine and is to be updated with changes to community needs and impacts. There is no Mineral stipulated timeframe for submission of such a plan; however a mining license can be cancelled Resources if the plan has not been compiled. Law No. 20/2014, of 18 August (“Mining Law"), which entered into force on the same date the Mining Act (Law No. 14/2002 of 26 June) was repealed, intends to set the legal framework for 20/2014 of The Mining Law the mining sector. It aims to ensure greater competitiveness and transparency, preserve the 18 August environment, ensure the protection of the rights and obligations of the holders of mining rights, safeguard national interests and benefit the communities. Ministerial The purpose of this law is to regulate the use and re-use of mineral resources to ensure that the Mining Law Decree best and safest mining and socio-environmental practices are adhered to, allow for transparency Regulations 20/2014 of and ensure the sustainable long term development of mineral resources and subsequent raising 18 August of revenues in favour of Mozambique. Ministerial This law defines the norms for the prevention, control, mitigation and compensation of adverse Environmental Decree effects that mining activities might cause to the environment. It also provides specific Regulations for 26/2004 of environmental protection measures, defines the required environmental management Mining Activities August 20th instruments (e.g. the EIA process) and the use of licenses.

2.3 INTERNATIONAL LEGISLATION AND GUIDELINES

2.3.1 The Equator Principles

The Equator Principles are a risk management framework or benchmark adopted by financial institutions for determining, assessing and managing projects’ environmental and social risks. These principles are primarily intended to provide a minimum standard for due diligence to support responsible risk standards. The Equator Principles are further defined by the International Finance Corporation (IFC) Performance Standards.

2.3.2 The International Finance Corporation

The International Finance Corporation (IFC) is a member of the World Bank Group, and one of the largest development financing institutions that focuses exclusively on the private sector in developing countries (IFC, 2012). The IFC was established in 1956 and works in developing countries to create employment opportunities, generate tax revenue, and improve corporate governance and to ensure that projects contribute to the upliftment of its countries’ local communities. In respect of the latter, it is also the IFC’s vision for people to be presented with an opportunity to escape their poverty and improve their lives. The IFC published its PS on Environmental and Social Sustainability in April 2006, and published comprehensive Guidance Notes (GNs) in July 2007. The PS and Guidance Notes have been revised in 2012 (cf. IFC, 2012). Relevant PS to this SIA are as follows:

PS 1: Assessment and management of environmental and social risks and impacts

Coastal & Environmental Services 6 Social Impact Assessment PS 2: Labour and Working Conditions PS 4: Community Health, Safety and Security PS 5: Land Acquisition and Involuntary Resettlement PS 7: Indigenous Peoples PS 8: Cultural Heritage

The main objectives of each PS are provided in the table below:

Table 2.2: International Finance Corporation Performance Standard objectives Performance Standard Main objectives  Identify and assess social and environment impacts, both adverse and beneficial, in the project’s area of influence; PS 1: Assessment and  Avoid, or where avoidance is not possible, minimise, mitigate or compensate for adverse management of environmental and impacts on workers, PAC and the environment; social risks and impacts  Ensure that PAC are appropriately engaged on issues that could potentially affect them; and  Promote improved social and environmental performance of companies through the effective use of management systems.  Establish, maintain, and improve the worker/management relationship;  Promote the fair treatment, non-discrimination and equal opportunity of workers, and PS 2: Labour and Working compliance with national labour and employment laws; Conditions  Protect the workforce by addressing child labour and forced labour;  Promote safe and healthy working conditions; and  Protect and promote the health of workers.  Avoid or minimise adverse impacts on human health and the environment by avoiding or PS 4: Community Health, Safety minimising pollution from project activities; and and Security  Promote the reduction of emissions that contribute to climate change.  Avoid or at least minimise involuntary resettlement wherever feasible by exploring alternative project designs and layouts;  Mitigate adverse social and economic impacts from land requisition or restrictions on affected persons’ use of land by: (i) Providing compensation for loss of assets at PS 5: Land Acquisition and replacement cost; and (ii) Ensuring that resettlement activities are implemented with Involuntary Resettlement appropriate disclosure of information, consultation and the informed participation of those affected;  Improve or at least restore the livelihoods and standards of living of displaced persons; and  Improve living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites.  Ensure that the development process fosters full respect for the dignity, human rights, aspirations, cultures and natural resource-based livelihoods of Indigenous Peoples;  Avoid adverse impacts of projects on communities of Indigenous Peoples, or when avoidance is not feasible, to minimise, mitigate, or compensate for such impacts, and to provide opportunities for development benefits, in a culturally appropriate manner; PS 7: Indigenous Peoples  Establish and maintain an ongoing relationship with the Indigenous Peoples affected by a project throughout the life of the project;  Foster good faith negotiation with and informed participation of Indigenous Peoples when projects are to be located on traditional or customary lands under use by the Indigenous Peoples; and  Respect and preserve the culture, knowledge and practices of Indigenous Peoples.  Protect cultural heritage from adverse impacts of project activities and support its preservation; and PS 8: Cultural Heritage  Promote the equitable sharing of benefits from the use of cultural heritage in business activities.

The above country and IFC specifications and obligations have been factored into this report with the exception of PS 7 that is not applicable to the study area.

Coastal & Environmental Services 7 Social Impact Assessment 3 THE COUNTRY AND STUDY AREA SOCIO-ECONOMIC CONTEXT

3.1 INTRODUCTION

Mozambique is approximately 799,380km2 in size (GoM, 2010). The country consists of ten provinces, 148 districts and 21 major cities (Statoids, 2015). In terms of local governance, there are only around 33 municipalities that cover 23 cities and ten of the 116 towns in its districts (CLGF, 2009). The city of Maputo serves as its capital. The country can be classified as a democratic republic with a unicameral parliament, known as the Assembly of the Republic (ibid.). Leading the country’s Mozambique Liberation Front (FRELIMO) is its fourth president since 2015, President Filipe Nyusi. The first democratic election was held in 1994.

Mozambique is one of the poorest countries in the world. According to the Human Development Report (UNDP2, 2014), the country scores 0.393 on the Human Development Index (HDI) of the United Nations (UN). This index measures countries’ progress against three basic human dimensions; namely a long and healthy life, access to knowledge and a decent standard of living. A score of 0.393 is assigned to the ‘Low Human Development’ category. Countries which are similarly scored include Guinea-Bissau and the DRC.

In simpler terms, the HDI positions Mozambique as number 178 out of 187 countries and territories (187 being the lowest, assigned to Niger) (UNDP, 2015). Its neighbouring country, Tanzania, is ranked at 159 (South Africa is 118) (ibid.). The reasons for Mozambique’s position under this index can be attributed to many factors, one being its civil war which lasted until around 1992. General poverty can also be exaggerated by other socio-environmental factors, such as limited economic opportunities and capital, and the lack of basic, rudimentary social services in much of the country.

Still, Mozambique has abundant mineral resources and much of its land is very fertile, especially for agriculture, but also the extractive industries. It is the latter industry in particular which is claimed to be responsible for an upward economic growth path in the country, in which sustainable employment opportunities are needed, as per the Government’s Poverty Reduction Action Plan, (IMF3, 2011).

According to Campbell (2014), writing for the Mining Weekly, Mozambique’s mining sector is projected to grow from $259 million in 2012 to $724 million in 2017. Being acclaimed as one of the world’s fastest growing mining sectors, much of this potential is located in the Cabo Delgado Province. Although mining development in particular is crucial from an economic development perspective, such development often affects the land of resource-poor people. This is compounded by the fact that poverty is sometimes worse felt in areas where mines are developed, categorised by rural, land-dependent areas where basic social services are often lacking, and agricultural support from the government is limited (Eriksen and Silva, 2009). It is for these reasons that there is a need to invest in sustainable livelihood practices.

To a large extent, the country’s trading industry (not just in minerals) has not only been important to larger industries, but also rural livelihoods. Historic trading products have included coconut, cotton, oil seeds, sesame and ground nuts/peanuts (Eriksen and Silva, 2009). Much of such trade has been affected by economic changes, all which altered the livelihoods of its people in many ways. For example, liberalisation (especially after the war) opened the economy to new emerging markets and industries exploiting land in the country, reducing local communities’ access to land and natural resources (ibid.)

Mozambique is an underdeveloped country and is therefore faced with several socio-economic challenges. There are, however, significant economic and development opportunities due to the country’s rich mineral resources and large land area (agriculture).

2 United Nations Development Programme 3 International Monetary Fund

Coastal & Environmental Services 8 Social Impact Assessment 3.2 NATIONAL DEMOGRAPHIC PROFILE

Mozambique’s total population is estimated at around 25,930,150, comprising of approximately 51.2% women and 48.8% men (GoM, 2010; Indexmundi, 2016). The population growth rate is appraised at 2.45% (2014 estimate), although the country seems to be experiencing a negative net- migration rate of 2.02 (meaning that more people are leaving the country than entering it). A large section of the country’s population is living in rural areas; it was estimated in 2010 at around 14 million (61.1% of its entire population in 2010). In 2013, Indexmundi (using the Central Intelligence Agency’s, or CIA, World Fact Book as a reference), calculated the urban population at 31.2%, with an urbanisation rate of 3.05%.

According to the United Nations Children’s’ Fund (UNICEF, 2012), the under-five mortality rate (U5MR) decreased significantly since the 1990s from 233 per 1,000 live births to around 135 in 2010. This figure is slightly lower than a country with a similar HDI, such as Guinea-Bissau (150) (ibid.), and is appraised by UNICEF as the country with the 16th highest U5MR (Somalia is ranked as having the highest at 180). Even though this rate is high for Mozambique, it reduced from 144 per 1,000 live births in 1996, which is reflective of the improvements, particularly in public childcare treatment and the availability thereof (Indexmundi, 2015). The youth dependency ratio was appraised at 88.1% in 2014, which is basically a measurement of the pressure on a country’s productive or working age population. This percentage means that 88.1% of the youth (14-35 years; the category under which ‘youth’ is defined in Mozambique) are dependent on someone else economically.

The average land/person density is estimated at 29.7 persons/km2 (CARE, 2013). This is relatively low when considering other African countries such as Malawi (109 persons/km2) and South Africa (39 persons/km2). The population is also relatively young. For example, in 2006, half of the country’s inhabitants were estimated to be below 30 years of age (UNICEF4, 2006). This is confirmed by statistic estimates for 2014, which appraised the age category of 0-14 years at 45.3% of the total population (Indexmundi, 2014). The median age in 2014 was 16.9 years.

The population is diverse in local customs, cultures and religious beliefs. The ethnic group structure is comprised of persons of 99.66% African, 0.06% European, 0.2% Euro-African and 0.08% Indian descent, with various different local cultures within the African ethnic group (CIA, 2016). There are various traditional customs that are deeply rooted in these local cultures and are passed down from one generation to the next (Our Africa, 2013). The official language is Portuguese, although there are several local languages spoken across Mozambique. The religions in Mozambique include Roman Catholic (28.4%), Muslim (17.9%), Zionist Christian (15.5%), Protestant (12.2%) and other (6.7%), while 18.7% of the population do not practice religion (ibid).

3.3 NATIONAL OVERVIEW

3.3.1 Economic Growth

Mozambique gained its independence from Portugal in 1975. The country subsequently experienced a civil war from 1977 to 1992, further contributing to the country’s social and economic challenges. Since the cessation of hostilities, the country’s economy has recovered significantly. Much of this recovery is due to the Government’s commitment to making great strides in reviving its economic sectors, giving rise to Mozambique being acclaimed by the World Bank as the fastest growing non- oil economy in Sub-Saharan Africa from 1993 to 2009 (ibid., 2011). Partly due to Government- initiated macroeconomic reform policies, coupled with international donor support, Mozambique experienced a 13.1% real economic growth between 1992 and 2004 (UNICEF, 2010).

A series of economic development initiatives were implemented from 1987, coupled with increased international donor support, contributing to a 13.1% real economic growth between 1992 and 2004 (UNICEF, 2010). Mozambique experienced an increase in the Gross Domestic Product (GDP)5 from

4 United Nations Children’s Fund 5 The Gross Domestic Product (GDP) represents the total dollar value of all goods and services produced by a specific country over a certain time period.

Coastal & Environmental Services 9 Social Impact Assessment $4 billion in 1993 to approximately $33 billion in 2015 (CIA, 2016). The country experienced an increased economic growth of 6% to 8% from 2005 to 2015 and was acclaimed by the World Bank to be the fastest growing non-oil economy in Sub-Saharan Africa from 1993 to 2009, contributing to an increased in investment specifically in mineral resources.

The GDP of a country is a useful indicator of its economy, as it represents the total dollar value of all goods and services produced by a specific country over a certain time period. From being one of the world’s poorest countries at independence in 1975, Mozambique’s economic recovery reflected in its growing real GDP. The latter escalated since the last war in 1992, at which it was appraised at an all-time low of US$1.97 billion (Trading Economics, 2015). This escalated to US$19 billion in 2015 (Global Finance, 2015). In 2010, the growth in Mozambique’s economy stood at around 6.5% (World Bank, 2011), whilst in 2012, its growth rate was estimated at 7.5% (Indexmundi, 2013a). Currently, the country’s GDP value represents around 0,03% of the world economy.

3.3.2 Mozambique’s Development Agendas

In order to revive its economy after the wars, the GoM developed several development agendas and strategic action plans which have shaped the country’s economic growth path (Indexmundi, 2013a). Some of these are Poverty Reduction Strategies Papers (PRSP), which are prepared by governments with the assistance of international stakeholders, such as the World Bank and IMF. One of these have been the country’s PRSP (or Poverty Reduction Action Plan; PARP I) for 2001 to 2005 (GoM, 2010). Of importance to this plan was the creation of an environment that could be conductive to economic investment, both in the private, but also public sectors. In addition, the plan supported human capital growth, but also the creation of needed infrastructure after the wars to encourage the country’s economic development. The strategy was implemented across, and aimed at, a wide range of sectors, such as macroeconomic financial management, education, health, agriculture, rural development, basic infrastructure and good governance.

Another strategy has been the Government 5-Year Plan (2010-2014), its predecessor being the 5- year programme for 2005-2009. The 2010-2014 plan was primarily aimed at reducing the poverty headcount from 54.7% in 2009 to 42% in 2014 and improving people’s living standards (GoM, 2010). Some of the plan’s most important aims were to attend to food security, to invest in small-scale agriculture to make this sector more productive, but also to encourage alternative land-uses and developing human capital and institutional capacity, especially for the agricultural sector.

Another PRSP (II) was prepared for the period 2011-2014 primarily as a means to fight poverty (IMF, 2011). The latter strategy reaffirmed the Government’s commitment to pro-poor economic development in particular, steering its efforts towards more inclusive, broad-based economic developments to alleviate poverty. Creating an environment that is conducive to economic development remains on the Government’s agenda, especially to create more Small, Micro and Medium Enterprises (SMMEs). It is also believed that, by attracting labour-intensive domestic and foreign investment into the country (such as by liberalising the market and signing concession agreements with industries), the role of SMMEs can be strengthened in the economy. Stated differently, by attracting large industries, it is hoped that economic growth will ‘trigger-down’ to local entrepreneurs and businesses. Apart from employment creation, some of the most important cross- cutting issues that are addressed in this strategy are enhancing the agricultural sector and farmers’ outputs (including exports), as well as stimulating human and social development (ibid.).

Another influential strategy is the current Mozambique’s Agenda 2025. This agenda is geared towards ‘fast-tracking’ the country’s economy, with a strong thrust towards social development and social inclusion. As with all its predecessors, the agenda also aims to fight poverty and illiteracy, and to overcome economic underdevelopment. It outlines some of the following strategic country objectives (cf. World Bank, 2011):

 Cultivating human capital through the improvement of basic living conditions;  Cultivating social capital through national cohesion, peace and stability;  Promoting social justice;

Coastal & Environmental Services 10 Social Impact Assessment  Accelerating access and ownership to land by local communities;  Creating incentives for the effective participation of women and youth in the country’s economy;  Rural development; and  Supporting entrepreneurial sectors.

Despite the strategies and plans detailed above that have been implemented by the GoM to date, the country is still heavily dependent on international and NGO donor support in trying to meet its development agendas.

3.3.3 Economic Sectors

The primary economic sector includes agriculture, forestry, mining and, to a lesser extent, fishing. The agricultural sector remains one of the main drivers of the country’s economy, contributing to 25.5% of GDP, 31.1% of the country’s exports and 81% of the labour force (CIA, 2016). The World Bank (2011) estimates that approximately 36 million hectares of land are suitable for agriculture, while only around 10% is currently under cultivation. The agricultural sector is renowned for its cotton, cashew nuts, sugar, citrus and coconuts (Trading Economics, 2013). Many of these products are also traded, such as cashew nuts, sugar and cotton. This sector is clearly one of the country’s most important economic sectors, as it accounts for around 31.8% of the country’s exports (Indexmundi, 2013a), and contributed around 24.0% of the country’s GDP in 2009 (GoM, 2010). It is estimated by USAID (2015) that this sector currently contributes more than a quarter to the country’s GDP, whilst employing around 80% of the country’s labour force; most of who are subsistence and commercial farmers. The potential for this sector to expand is also significant, especially since food crop production has a direct impact on food security and malnutrition. As such, the creation of SMMEs is especially vital in this industry to stimulate economic development at grass-route level which can sustain local farmers, provide jobs and improve food security.

Agriculture is a key livelihood strategy in rural areas, contributing to subsistence, income generation and food security and is therefore highly depended on. It has been estimated that 3.2 million subsistence farms, approximately 1.2 ha in size, contribute to 97% of agricultural production in Mozambique. The main basic food crops grown for subsistence includes sweet potatoes, cotton, cashew nuts, groundnuts, coconuts, sugarcane, cassava, maize and citrus (Trading Economics, 2013). Commercial operations located in lowlands produce vegetates and rice. Livestock husbandry is mainly practiced by small to medium households, whilst most households have free-ranging chickens (GoM, 2010). The World Bank estimates that approximately 24.1% of farms in Mozambique are female-headed (GoM, 2010). There are several challenges facing small-scale farmers, including lack of agricultural extension services, irrigation infrastructure, farming equipment and fertilisers and pesticides (GoM, 2010; CARE, 2013). Consequently the Plano Estratégico para o Desenvolvimento do Sector da Agricultura (PEDSA), 2011-2020, a strategic plan for agriculture development was implemented to increase agricultural productivity and competitiveness; improve infrastructures and services; ensure sustainable use of land, water, forest and wildlife resources; implement legal frameworks and policies conducive to agricultural investment and strengthen agricultural institutions (GoM, 2010).

Extractive industries, have become very significant in the last decade. Much of this expansion has been due to several coal mines which expanded the country’s GDP growth in recent years. Many of these mines are situated in the Moatize and the Mucanha-Vuzi sub-basins in the prospective Zambezi coal basin in the Tete Province (Kolver, 2012). The World Bank claims that natural resource exports have been largely responsible for increasing the country’s trade, with aluminium, electricity and gas as some of the main resources (World Bank, 2011). Apart from coal, mineral deposits, such as marble, bentonite, gold, granite and gemstones are also significant (Trading Economics, 2013). More recently, large graphite resources have also been discovered in the Cabo Delgado Province. Apart from Triton Minerals Ltd., other mining operations currently exploring such reserves are Syrah Resources and Metals of Africa (or Battery Minerals) amongst others (The Economist, 2015).

Coastal & Environmental Services 11 Social Impact Assessment The industrial sector has also seen a growth in the country, currently contributing around 24.6% to the country’s GDP (Indexmundi, 2013a). The growth rate for this industry was estimated at 8% in 2013 (Indexmundi, 2015). Industries in this sector which have contributed to this growth include the extraction and production of aluminium, petroleum products, chemicals, textiles, cement, glass, asbestos, tobacco, food and beverages. Many economists are of the opinion that the extractive industry will galvanise the economy of the country in the next few years, especially with regard to mining developments which, according to the World Bank (2011), are expected to increase as more coal investments will become operational. In this industry, Mozambique is an exporting partner to South Africa, Belgium, Italy, Spain and China (Indexmundi, 2013a).

The tourism sector is fast growing in Mozambique. In 2003 tourism accounted for only ~1.2% of the country’s GDP, significantly lower than that of the Sub-Saharan average (6.9%). By 2005, the industry grew by 37%, accounted for US$130 million and 32,000 job opportunities. It is evident that while tourism rates are lower than most neighbouring countries, the industry is still growing. Lastly, at 43.6% of the country’s GDP composition, the services sector is also significant (Indexmundi, 2013a).

3.3.4 Household Dynamics and Social Services

As the project will have a significant socio-economic impact on its direct and indirect PACs, it is important to consider the most basic element of a community, namely the household unit. In Mozambique, the largest section of the population is rurally based, with households often comprising more than one family per house. Having many household members is important in rural areas and frequently seen as ‘wealthy’ households, as such households are believed to provide labour for farming, and hence contributing food security and a house’s income-earning capacity. UNICEF (2010) appraises the average household size at around 4.7 members in urban areas and 4.2 in rural regions (de facto population6). This generally compares favourably to its neighbouring country of Tanzania (4.8), but less so with a country of a similar HDI, such as Guinea-Bissau (6.9 members) (Euromonito, 2014). A direct relationship exists between the intensity of poverty and household sizes. According to Asogwa et al. (2012): “[…] the larger the number of less active adults […] and children in a household, the heavier the burden of the active members in meeting the cost of minimum household nutrition and, hence, the higher the probability or intensity of poverty, and vice versa” (ibid. p: 173). This means that larger houses carry more dependants, as heavier burdens are placed upon working members to meet the household’s nutritional requirements

Many rural households are deprived of government social services, such as electricity. Electricity is regulated by the National Regulatory/Advisory Board (CNELEC), and largely generated by its parastatal company, Electricidade de Moçambique (EDM) (GoM, 2013). Much of the country’s electricity is also generated by the Independent Power Producer (IPP), Hidroeléctrica de Cahora Bassa (HCB) in Tete Province, as well as Moz Transmission Company (MOTRACO). Still, according to the IMF (2011), the proportion of the population which uses electricity, a generator or a solar energy for lighting purposes stands around 13.3%.

Access to clean drinking water is also limited especially in rural areas. The World Bank (2010) estimates that such access in 2010 was around 52% of rural households in Mozambique. Rural areas are highly dependent on the provision of boreholes or wells with hand pumps; many of which have been installed by international donors. Water supply, however, remains, unreliable during the dry season as the water table retreats. Country wide, many constructed wells are also non- operational or broken. The need for intervention in the water sector is a high priority of the GoM, underpinned by Priority Nr 3 of its PRSP. This priority aims to expand access to, and the use of, safe water supply and sanitation services in rural areas. Under its PRS, the Government is serious about rehabilitating water sources that are located in rural areas, whilst easing household access to such water points.

6 This means individuals recorded at specific household at a specific time. This therefore excludes migrants or people not present, but who are part of a particular household.

Coastal & Environmental Services 12 Social Impact Assessment Most rural households do not have access to decent sanitation services, whilst only around 50-64% of households in urban regions have such access (ibid.).

3.3.5 Education

The national literacy rate, based on the recorded population ages 15 and older, is as follows:

 Adult (+15) literacy rate - 51.9%  Adult (+15) male literacy rate - 48.1%  Adult (+15) female literacy rate - 57.0%

The education system in Mozambique is largely subsidised by the Government. The school fees for primary schools in the rural areas commonly comprise only of a registration fee while schooling supplies are provided by the Government. Children are usually enrolled at the age of six, attend primary school (grade 1 to grade 7) from age’s six to twelve and attend secondary school (grade 8 to grade 10) from ages thirteen to eighteen. The average school-life expectancy, from primary to tertiary education, is 9 years for females and 10 for males. Access to education and quality of education is unequally distributed in rural and urban areas. There are various challenges facing schools in rural areas, including poor or limited facilities and infrastructure, lack of educators and a lack of school supplies.

3.3.6 Health

The prevalent diseases, both communicable and non-communicable, across Mozambique include tuberculosis, malaria, bacterial and protozoal diarrhoea, hepatitis, typhoid, schistosomiasis (bilharzia) and HIV/AIDS. It is estimated that 10.55% of the adult population, or an approximate total of 2.6 million, are living with HIV/AIDS (2015 estimate) (CIA, 2016). Malnutrition is common, particularly among children, with 15.6% of the population of children under the age of five underweight (2011 estimate). Access to healthcare facilities is one of the challenges faced by rural communities. The clinics in rural areas are often ill-equipped, lacking infrastructure and supplies. The clinics or healthcare facilities are often few and widely dispersed, meaning communities have to walk far distances or pay for transportation to access these facilities. Statistically, there are 0.04 physicians/1000 people and 0.7 beds/1000 people (CIA, 2016). The limited medical doctors, bed capacity, lack of supplies and equipment coupled with inadequate water supply and sanitation facilities are contributing factors to inadequate health services in many rural areas. The reader should refer to the Health Impact Assessment (CES, 2017) conducted for the project for more detail on the health status of the study area communities.

3.3.7 Household Income and Expenditure

Mozambique is classified by the UNDP HDI as being part of the ‘Low Human Development’ countries. With an estimated 54% living below the poverty line of around US$1.25 per day (Indexmundi, 2013a), the country can be classified as poor. Although larger cities do offer more employment opportunities, these are still limited largely to urban areas. The latest unemployment rates, measured as the number of people actively looking for a job as a percentage of the labour force, was calculated by the African Economic Outlook in 2008 at 17%7; down from 18.7% in 2006 (ibid., 2015). The labour force stands at around 10.1 million (2012 estimate), whilst women comprise more than half of this force [cf. Indexmundi (2013a) and Rural Poverty Portal (2013)]. Most people in the labour force are employed (either formally or informally) in the agricultural sector (around 81.0%) (Indexmundi, 2013a). Possibly as a result of such poverty and many areas which simply do not have a large cash economy, many rural households are involved in agriculture (as explained), but also natural resource-use.

Natural resource-use is part and parcel of many households’ daily livelihood practices, where resources are collected, processed and even marketed for selling or bartering. One of such

7 A more current estimate cannot be found

Coastal & Environmental Services 13 Social Impact Assessment resources is wood, which is extensively used as firewood either for cooking or selling (such as to make charcoal). Selling charcoal is sometimes the only income a household receives, especially for villages located next to busy transport routes. Moreover, bush meat, honey, clay, plant roots, thatch and other building materials and medicinal plants are widely used by many on a daily basis. The collection of such resources sustains a large number of villagers and, as an activity, is also embedded in many cultural practices and rituals.

As the majority of rural communities are directly dependent on their natural environment, any significant changes thereto can make them extremely vulnerable and susceptible to food insecurity, or diminished household incomes. In light of this, assisting directly affected communities to diversify their livelihoods with income-earning opportunities should be at the centre of any development project. Although most rural households are subsistence farmers, off-farm labour opportunities are often important for mitigating the effects of periodic or prolonged drought (Giesbert and Schindler, 2012). According to Osbahr et al. (2008), many rural Mozambican households are reliant on off-farm migrant work, for which household members are willing to migrate for piece jobs (i.e. irregular employment) or regular wage employment. In recent years, some parts of Mozambique have seen a decline in the local industries such as, for example, the cashew industry, which contributed to unreliable migrant work; this decline has seen an increase in rural unemployment and a dependency on temporary, local work.

3.3.8 Livelihood Strategies

Most rural households are reliant on subsistence farming, fishing, hunting, natural resources and ecosystem goods and services with less reliance on the cash economy. Goods and services are often traded, bartered and sometimes sold. Natural resource used includes wood for cooking, lighting, selling or charcoaling, bush meat, honey, clay, grasses and other building materials. Wild plants are often collected as a food source, used for medicinal purposes or used for spiritual rituals. The collection of such resources sustains a large number of villagers and is also embedded in many cultural practices and rituals. The rural communities are therefore heavily dependent on their surrounding natural environments.

3.4 THE PROJECT-AFFECTED COMMUNITIES

3.4.1 Direct Project Affected Communities

The project area is approximately 80km by road west of Pemba and is located within the Ancuabe District in the Cabo Delgado Province of Mozambique. The nearest main town to the project area is the town of Ancuabe which is still 20km away. There are several villages located outside the project boundary with the nearest 10km away (Figure 3.1). The area is dissected by two main rivers to the west and east: the Muaguide and Mogido rivers respectively. The area is characterised by very limited human activity. The term PAC is used to refer to a community which is affected by the project either from primary (i.e. direct) or secondary economic effects (i.e. further spin-off effects), but also those whose current livelihood’s may be affected by the project. These communities are not necessarily living on, or immediately adjacent to the project site, often they might even be substantial distances away as is the case with this project. In defining the PAC, the following criteria are considered:

 What project related impacts are anticipated and which villages would be directly or indirectly affected by these impacts?  Which villages/communities would be the beneficiaries of health programmes/projects?  Where would the mine’s labour be sourced from?

Coastal & Environmental Services 14 Social Impact Assessment Four villages are considered to be the direct8 PAC, namely:

1. Silva Macua (also known as Sunate) 2. Nankhumi 3. Natocua 4. Muaguide

Figure 3.1: The project area (green polygon) in relation to nearest villages

The more peripheral settlements indicated on Figure 3.1, as well as the towns of Pemba, Metoro and Ancuabe are considered to be indirect PAC in that their experience of the project induced impacts will be of a much lower significance. None of the direct PAC settlements are located inside the proposed project area. Residents utilise the study area on a significant scale for natural resource use and cultivating farmlands (referred to locally as machambas).

Most of the machambas occur within the most south western point of the access road (where the access road joins the main road: R243), with some machambas located within the proposed dam site. Most of the access road machambas are intercropped with crops such as cassava, maize, beans, peas and sesame. Some mango and cashew trees (mostly sapling, non-producing trees) and secondary structures (i.e. not physical living houses) were recorded on the machambas.

3.4.2 Indirect Project Affected Communities

An indirect PAC refers to communities in the area surrounding the proposed project area that are not impacted to the same extent or severity as direct PAC and are not proximate to the project area. The town of Ancuabe, the main economic hub in the area, is considered an indirect PAC in addition to several smaller villages or towns in the area, as reflected in Figure 3.1 above. The project area is subject to very limited and observable human activity. The residents of Nankhumi and Natocua are

8 This refers to those villages inside the corridor of impact which will be affected not only from a primary economic trigger involving trade and commerce and related demographical and livelihood changes, but more directly from the physical activities of the project itself. People inside these villages are usually exposed to either being physically or economically displaced as a result of the project land take, or might be close enough to the project activities to be affected by its activities.

Coastal & Environmental Services 15 Social Impact Assessment cropping machambas along the proposed access route (where the access road joins the main road R243) to site as indicated in Figure 3.2. As noted above, the only machambas that occur within the mining area are within the proposed water dam site. There are currently no communities residing in the remainder of the project area that the study team is aware of.

Figure 3.2: Machambas located along the proposed access road and in the project area

It is anticipated that only economic resettlement/displacement (the loss of economic activity and livelihoods, such as loss of crop fields) and physical resettlement will not take place. Overall, use of the majority of the project area for agriculture appears to be very limited, and only a small amount of area is mainly utilised for natural resources (fuel wood, plant harvesting, charcoal production and hunting).

3.5 LOCAL DEMOGRAPHICS AND SOCIAL INFRASTRUCTURE

3.5.1 Local Demographics

The Ancuabe District is not very densely populated and in 2013 had an estimated population of 118 926 people as reflected in Table 3.1. Table 3.2 provides population estimates for these four villages, obtained from the local village leaders.

Table 3.1: Provincial and District population numbers Province/District Population (2007) Population (2013) Cabo Delgado Province 1.61 million No value Ancuabe District 107 238 118 926

Table 3.2: Estimated Project-Affected Communities’ Demographics Village Information Nankhumi Natocua Sunate Total Total number of people 2,272 2,150 4,143 8,565 Total number of men 1,124 1,064 2,050 4,238 Total number of women 1,148 1,086 2,093 4,327 Estimated number of households 455 430 790 1675

The term ‘household’ does not refer to a physical building. Rather, it refers to a group of members

Coastal & Environmental Services 16 Social Impact Assessment who share a house, income, assets and/or resources at least once a week. The 140 households surveyed had a total of 627 persons living in them at an average household size of 4.5 persons. The household age category structure for surveyed households is as follows:

Table 3.3: Age categories of surveyed households Age Bracket (years) Number % of total 0-6 125 19.94 7-14 108 17.22 15-18 54 8.61 19-24 57 9.09 25-54 143 22.81 55-64 22 3.51 65+ 11 1.75 Respondent unsure 107 17.07 Total 627 100

It is apparent from the above table that 45.8% of household members are below the age of 18 years, indicating a very young population cohort being representative of the study area. The Province has a large youth population with just under half the population (44.6%) under the age of 15 and 53.2% of the population are within the working-age of between 15 and 64 (Knoema, 2017).

In terms of gender, females represent 51.6% of the population in the Cabo Delgado Province ibid (). Gender-related roles and responsibilities are clearly defined and culturally implicit. Men are considered the head of the household and the decision-makers. Their roles and responsibilities include hunting, fishing, farming, small businesses and the construction of houses. Women are also engaged in farming activity and are additionally responsible for child bearing and household chores, such as cooking, cleaning and collecting wood and water. Women assist with thatching and placing mud on houses while farming activities are undertaken by all household members (men, women, the youth and the elderly).

The youth divide their time attending school, playing sport, making crafts, fishing, charcoaling, family machamba cultivation and assisting with child care.

The main language spoken by the communities is eMakhuwa, or Macua, and Portuguese. All surveyed households indicated that Macua was their home language, with 77% of respondents indicating that they speak Portuguese as well.

3.5.2 Educational Status

The schooling system in Mozambique consists of primary and secondary school subsidised by the government. Primary school encompasses grades one to seven, whilst enrolment commences at the age of six. Children are enrolled in secondary school (Grades 8-12) at around 12 or 13 years of age. There is one primary school located in each of the direct PACs providing grades 1-5. According to key informants at the schools, the number of learners at these schools range between 200 and 300.

Most of the schools have around five teachers (including the headmasters), whilst no school has had a noteworthy fluctuation in the number of learners over the last few years. Cabo Delgado Province has the highest illiteracy rate in the country, where 60.7% of the population cannot read or write. By comparison, the lowest illiteracy rate in the country is 9.5% (http://clubofmozambique.com).

The local schools face several challenges including a lack of classroom capacity, a shortage of teachers, classrooms, desk and chairs as well as stationery and other materials. The classrooms are often in poor condition and there is usually no access to lighting or electricity. These contribute to a significant number of children not attending school.

The educational status of the surveyed households is detailed in Table 3.3 below.

Coastal & Environmental Services 17 Social Impact Assessment Table 3.4: Educational status of surveyed households Level Number Percentage (%) Completed Primary School 56 9% Completed Secondary School 10 2% None 262 42% Some Primary School 254 41% Some Secondary School 45 7% Total 627 100%

Very few household members seem to complete secondary schooling (2%), 7% have some secondary schooling, and only 9% having completed primary school. 42% of households members have not attended school at all which demonstrates why the illiteracy rates remain so high in the province. The primary schools face several challenges and require the following support:

 Most schools have a lack of classroom capacity and need to expand.  There is a shortage of teachers in most schools, and support is needed to employ more teachers. Key informants also noted that teacher accommodation is lacking.  There are limited numbers of desks and chairs, whilst stationery and other materials are frequently lacking.  Proper toilets and water supply (boreholes) are required.

It is often the case for these challenges to contribute to low school attendance rate. This is also due to children working on farms instead of attending school. The nearest secondary schools are situated in Metoro and Ancuabe. Most of the children from the villages do not attend secondary school or university due to high fees and the distance from their villages.

3.5.3 Culture and Religion

Religions practiced in the local villages include Christianity and Islam, with churches and mosques found in all direct PAC villages. Some households practice polygamy, a traditional system where husbands have more than one wife. Polygamy is often believed to enhance productivity as those who have a greater number of children who survive to productive years will have more children to work on machambas and therefore increased support through inter-generational transfers (Adui et al., 2008). There are several graves that have been identified during the SIA and DUAT survey processes conducted within the project area during June and July 2017, and the relatives of the buried will need to be identified as far as practically possible.

3.5.4 Land Tenure

In Mozambique, land is primarily held by the government, which also legally recognises the role of customary tenure systems. In the rural area studied, although land ultimately belongs to the state, the area is controlled by the chiefs and elders who regulate the land under the custodianship of their Traditional Authority (TA). For the most part, the government’s responsibility in terms of land provision revolves around land registration and surveying. The chiefs or village secretaries, on the other hand, are responsible for local land allocation; a process which is verbal and undocumented. Traditional rights to land in the study area are held under a traditional tenure system that is dominated by the area’s major ethnic group, namely the Makhuwa (although there are smaller ethnic groups such as the Maconde, for example).

The majority of surveyed households (47%) obtained the land on which they live through traditional tenure means. This is followed by approximately 26% of the households who inherited their land. Around 16% of the households bought their land on which they live, which are usually informal arrangements which are not documented. Although land is held by the state, purchasing such land is not an uncommon practice, especially if a family (or individual) wants to settle on a piece of land which used to be the homestead of someone else. Land that has a homestead or other infrastructure is purchased by use right applicants, while open or undeveloped land use title is given free of charge to local applicants. Land and houses can be rented by temporary occupants.

Coastal & Environmental Services 18 Social Impact Assessment 3.5.5 Migrancy

The households interviewed confirmed that they live there on a permanent basis, but they also note that are periodic influxes of people from as far as the town of Ancuabe who come to the area to farm on a temporary basis in order to supply their own villages (or towns) with agricultural produce. Such farming-related migrancy is largely due to insufficient land being available in and around urban areas. Such migrant farmers use farms in and around the local settlements, either through a land rental agreement with other households/families, or work on farms in exchange of either money or agricultural produce. These migrants are normally housed in the communities without having to pay for accommodation.

3.5.6 Household Living Conditions

Most houses and businesses in Metoro and Sunate are more robust brick, mortar and tin roof sheeting structures, however, traditional wattle and daub (thatch roof) as well as clay fired sun-dried brick structures are the dominant form of housing in the remaining direct PAC (Figure 3.3)

Figure 3.3: Typical housing and business structures found in the study area - both brick and mortar (left), as well as traditional wattle and daub houses (right).

Figure 3.4 indicates that most households (67%) have occupied and build their houses independently with a quarter (26%) of respondents indicating they had inherited their dwelling. The more traditional housing structures require higher levels of ongoing maintenance and are more susceptible to damage in storm of flood vents that occur periodically throughout the province and country. They are also more likely to allow easier access to insects and other nuisance pests.

Coastal & Environmental Services 19 Social Impact Assessment

House Ownership (%)

1 1 13 5 36

Home Ownership Inherited Occupying Independently Other Purchased Government Renting Tradtional Authority

Figure 3.4: Household home ownership

Most traditional houses have cooking and food preparation areas located outside of the residential dwelling, in close proximity thereto. There is nothing in the way of government provided or social housing in the study area.

3.5.7 Social Infrastructure Assets

The main district hospitals are situated in Ancuabe and Metoro respectively. Discussions with Metoro and Ancuabe hospital staff during the fieldwork study highlighted the challenges experienced by these health facilities. These largely seem to relate to what these informants claim to be lower than desired level of support from the Government or a lack of medicine and/or general facility equipment.

A related problem appears to be a lack of medical facilities in general. Poor drug storage facilities as well as lack of transport to the rural clinics are also said to be major challenges. Both hospitals indicated that ever increasing patient loads strain what resources they have, and invariably bed space is not enough, particularly in times of diarrheal disease outbreaks.

Figure 3.5: Metoro Hospital

Community members also referred to a need for more health facilities in the area, as well as an upgrade to the existing ones. Distance to the available centres is often quoted as the limiting factor in accessing these services.

Coastal & Environmental Services 20 Social Impact Assessment There are no police posts in the direct PAC villages, with the exception of Sunate. The type of crime in the area is reported by interview respondents to be generally limited to petty crime and livestock theft which is usually reported to village chiefs or leaders, as well as police stations when possible.

There are football fields in most of the villages, with majority of the villages also offering a dance club for recreation. There are also women’s, men’s and youth organisations in most villages with water and famer’s associations in some of the villages. These recreational activities and associations create a sense of belonging, community pride and cohesiveness.

Most villages have their own shops and weekly market places where smaller items are sold or bartered/traded; varying from food items and agricultural produce to charcoal, medicine and general equipment. The largest market places are in Sunate, Chiure (around 25km from Metoro), Metoro and Ancuabe. Around 40% of households (usually the women) go to such markets on a daily basis, whilst the remaining households either go monthly or weekly.

The primary modes of transport include bicycles and motorbikes, while most villagers travel by foot to their machambas. For longer trips minibus taxis as well as larger busses operated by private companies or individuals are utilised. Very few villagers use cars. A car ride from Nankhumi to Sunate, for example, is approximately MZN30 (US$0.5). The costs increase to MZN50 for a ride from Nankhumi to Metoro (US$0.8). Motorbikes are more expensive: around MZN100 (US$1.6) from Nankhumi to Sunate and MZN500 (US$8.2) from Nankhumi to Ancuabe.

3.5.8 Basic Infrastructure

There is no access to piped water and villagers depend on water points. The majority of the villages use wells, hand pumps or draw water from the river as water sources for drinking, bathing, washing clothes and for livestock. In many cases, the water from the boreholes’ overflows is used by livestock, as well as for washing clothes. Water is also drawn from the rivers as water sources for drinking, bathing, washing clothes and for livestock. There are 12 boreholes with hand-pumps in Sunate and three in Nankhumi. No borehole was recorded in Natocua, although the village has several wells. Several hand-pumps found in the villages are not functioning.

Water Sources (% of all households)

Borehole 49.29 Spring 25.71 Well 16.43 Tank 4.29 Stream_River 2.14 Tap 0.71 Other 0.71 Creek 0.71

0.00 10.00 20.00 30.00 40.00 50.00 60.00

Figure 3.6: Household water sources

93% (130/140) respondent households indicated that the believed their water was always drinkable, with the remainder indicating that sometimes it was perceived to be undrinkable.

The sanitation infrastructure in the villages in the area comprise of self-constructed pit latrines with bamboo or thatch coverings, as there is no water borne sanitation systems. The pit latrines are shared between 1 to 4 households. 82% of households indicated that use pit latrines for their ablutions with the remainder doing so in the surrounding bush.

Coastal & Environmental Services 21 Social Impact Assessment

Figure 3.7: Typical pit latrines and borehole water points utilised by communities

44% of households indicated that they burn the domestic refuse (waste) generated by their households, 41% indicating they bury their waste, and the remainder (15%) indicating they dispose of this in the surrounding bush. The waste disposal comprises of hand-dug pits where waste is buried and/or burnt. There were no centralised landfill sites observed in any of the villages surveyed.

Household Access to Energy Sources (%) 0.82 1.22

29.39 42.45

21.22 3.27

1.22 0.41 Candles Charcoal Lantern Solar Panel Energy Grid Electricity Wood Battery

Figure 3.8: Household energy sources

Figure 3.9: Solar panels in Nankhumi and the main electricity grid along the road in Sunate

Coastal & Environmental Services 22 Social Impact Assessment There is limited electrical energy supply to direct PAC in the study area and therefore most households are reliant on wood and/or charcoal for cooking and wood and/or torches for lighting. Sunate is the only nearby village with access to electricity, but very few survey respondents have access thereto. Very few households or businesses in the other villages use electricity from generators or solar panels, but the technologies are observable. Wood and charcoal remain the most significant energy source for the majority of households (approximately 70% combined), with lanterns extensively used for lighting purposes in the evenings. Wood from the local Mphakala Tree (Julbernardia globiflora) is most widely used.

3.6 HOUSEHOLD LIVELIHOOD STRATEGIES

3.6.1 Employment Sectors

There are limited formal employment opportunities in rural Mozambican villages and few of the survey respondents are in this category. It is likely very few households have members that are formally employed as local construction workers (such as road upgrades) or by the Government such as employees in the educational and health sectors. Other non-regular employment opportunities in the study area include craftsmanship, artisanal mining, charcoaling, fishing, small business endeavours or self-employment, such as local shop owners.

Most households in the villages in close proximity to the project area are subsistence farmers, some of whom sell produce locally. Labour exchange is commonly practiced in rural areas in Mozambique, where labour from the villages work on machambas owned by other households and receive payment in kind, such as a prepared meal. This is a cultural practice driven by moral obligation or reciprocity (Osbahr et al. 2008), often as a response to labour shortages.

Employment in mining and exploration has steadily increased in some of the districts, with several mines being constructed in the province. The mining sector is expanding in the region and will provide a range of employment opportunities in the future. 7% (10/140) of survey respondents indicated that members of their households were in formal employment (Table 3.5), either with government (health and education departments) with 3 individuals reportedly working for mining companies in the area.

Table 3.5: Employment and Unemployment status of the surveyed households Working- Not available for work Employed population Age Home worker/ Unemployed/ Disabled Non-regular Unemployment Population Not interested Regular Not or unable employment or rate (between in work/ employment contributing to work farm work 15-65) School-going 81 10 226* 57 375 1 15.2% 82 293

Only 2.8% (4/140) of surveyed households indicated that members did leave the area either for work purposes, or seeking greater experience outside of their local village. It is often challenging to define non-regular employment in these villages, since many are involved in their own household farming for subsistence and commercial purposes. As some of these farmers sell their produce (which is sometimes the only income a household receives), it is sensible to categorise own household farming, in this context, under non-regular employment. However, it should be noted that the studied area lacks large agricultural markets which limits these farmers from receiving a significant income from their machambas. Most, in fact, have limited opportunities or means to sell their produce in markets in and around Metoro and Ancuabe. Adding to this challenge is the fact that their machambas are far from the main roads. Farming is the main source of income and subsistence for villagers in the project area, who also rely extensively on natural resources.

3.6.2 Natural Resource Use

The project area is utilised for natural resources and ecosystem services, including fuel wood, medicinal and edible wild plant harvesting and hunting. The majority of households access these

Coastal & Environmental Services 23 Social Impact Assessment resources for firewood, thatch grass, charcoal production, weaving materials (reeds and grasses) and wood craft materials as is illustrated in Figure 3.10. Collecting wood, mud, thatch and bamboo for construction, but also collecting wild fruits, vegetables and bulbs either for medicinal purposes or for food occupies a lot of the households time. Some households are engaged in hunting and fishing activities, which are usually primarily subsistence strategies.

Natural Resource Use (% of households that use each resource)

Firewood 97.14 Thatch 90.71 Charcoal 70.71 Weaving 63.57 Wood Crafts 61.43 Medicinal plants 44.29 Swimming/bathing 44.29 Bamboo Poles 42.14 Sand 40 Clay 38.57 Wood Poles 36.43 Vegetables 26.43 Animal Meat 17.14 Other CR 15.71 Drinking_Animals 12.14 Insect 10 Beekeeping 5 Grazing Animals 3.7 Gum 2.86 Fishing 2.19 0 20 40 60 80 100 120

Figure 3.10: Household natural resource use

Figure 3.11: The area’s natural resources are utilised for wood carving and for extensive charcoal production that the majority of houses rely on for cash income

Only 2% (3/140) survey respondents indicated that they fish on a regular basis, given the perennial nature of the rivers in the area this is not surprising. Most households also supplement their diets by sourcing fruits from productive trees (mostly around their homesteads), which include banana, papaya, mango, and guava trees. Vegetables, such as tomatoes, pumpkin and beans are grown in food gardens. Income from fruit and vegetables can be significant being sold in local markets or alongside the road, together with some of their other agricultural produce.

3.6.3 Local Livelihoods

Most households use their land predominantly for subsistence purposes, as many are constrained by a lack of market access, unimproved agricultural technology, limited or no access to chemical

Coastal & Environmental Services 24 Social Impact Assessment inputs such as fertilisers, and crucially, no capital for improved production investments. The farmers in the areas surrounding the project area consider maize, cassava and beans to be the most productive crops in the area. Most households within villages have machambas and some households have smaller food gardens around their homesteads. Most households have more than one machamba (ranging from 3 to 7 machambas per household), on which the most popular crops are sorghum, millet, cassava, ground nuts, sweet potatoes and maize. Other crops not as commonly grown include cotton, sugar cane and rice. Crops are rain-fed and a rotational slash and burn agricultural system is implemented. Shifting cultivation is practiced where land is cleared of natural vegetation, often cultivated for a few years and left to lie fallow for one or more seasons to allow the land to become fertile again. The villages commonly use the land for approximately 2 to 3 years after which the land is left to lie fallow for approximately 4 years before returning to crop them again.

Figure 3.12: Typical road side machambas in the project study area

All the farmers walk to their fields. During the Resettlement Action Plan (RAP) land-holding survey farmers were asked to estimate the distance from their households to their farms, most respondents (57.97%) indicated that it takes them between 30 minutes and one hour. Approximately 30% of the respondents said between ten and 30 minutes. Most of the machambas belong to one household, while 16 machambas were recorded belonging to eight households who had two machambas each. No owner has a DUAT or any other land title other than through traditional tenure means. Agricultural land does not seem to be rented by, or rented out to, any household, whilst households seem to farm on their own lands only. This means that farmers have their own machambas. However, many households have farm labour that is sometimes used (if they have the money for this, or else agricultural products are offered). Prior opening new machambas, limited crops are usually planted on the land to measure the land’s fertility, after which a larger piece of land is cleared for farming if the crops grew well. Cassava is claimed to be the most productive crop in the area in terms of yields and income.

Coastal & Environmental Services 25 Social Impact Assessment Figure 5.8 depicts the number of years which households have held their current machambas. The validity of this data could be questioned, however, as available historical satellite imagery does not support the claims of those claiming 10 years or longer. This may be respondents aiming to justify what they might believe to be their claim to the land, or simply inaccurate estimations on their length of use.

Figure 3.13: Years that Machambas have been Held

It is evident from this data that a significant majority of the recorded machambas (74.36%) have been established in the last five years. Figure 5.9 identifies all the crops that were planted during the time of the survey. It should be noted that, often, more than one crop is planted on a single machamba; a practice known as intercropping. The villagers commonly use the land for approximately three to four years after which the land is left to lie fallow for approximately four years before returning.

Figure 3.14: Crops Planted at the Time of Survey

Cassava, peas, beans (Cajanus cajan) and mabira were recorded on most of the machambas (30.43%, 28.99% and 17.39% respectively). Less cultivated at the time of study were pumpkin, mexoeira (millet), groundnuts, peppers, sweet potatoes and sugarcane. Most machambas are used for subsistence and commercial purposes. As indicated in Table 3.7, income from farming produce can be quite substantial and is most certainly the most significant source of income in these communities.

The main tools used on the machambas include axes and machetes to clear land (along with burning) and hoes to plough the land prior to planting. No fertilisers or chemicals are used and fields are generally burnt after harvesting on the perception that it restores the land’s fertility. Land preparation and planting usually occurs in November to March, harvesting in April to June and land clearance in July to October, although these dates do vary across different crops.

Coastal & Environmental Services 26 Social Impact Assessment Planting activities begin in the months of highest rainfall and harvesting is done at the end of the rainy season and the beginning of the dry period. Farming is normally performed by both men and women, although subtle differences have been identified in this plan. Table 3.6 provides an estimate of different planting and harvest seasons for the most common crops planted in the study area.

Table 3.6: General Crop Cultivation Seasons Crops Planting Months Harvests (sell/eat/both) Corn December-January Cassava November Millet January Beans February Sell and eat Groundnuts January Peas Sesame February

Table 3.6 is a generalisation only, as some crops are actually harvested on an ad hoc basis throughout the year. In many cases entire fields are not necessarily harvested at once, such as maize. The same is true for cassava, which is actually harvested throughout much of the year. With this in mind, it seems that the months of December to February are the crop planting seasons, which coincide with the rainy season. Peanuts/groundnuts are typically intercropped and planted in the rainy season. This is also the case with sweet potatoes and tomatoes. Generally, a planting season is usually around 4-6 months. All the fields are rain-fed. The main tools used on the machambas include axes and machetes to clear land and hoes to plough the land prior to planting. No fertilisers or chemicals are used and fields are burnt after harvesting to restore land’s fertility. The planting seasons are usually inaugurated by the coming of the rainy season. Land is normally cleared for farming around July to October. Planting usually occurs in November to March, harvesting in April to June. These dates do vary across different crops.

The end of the rainy season is normally associated with harvesting and selling produce. A normal farming season for crops such as maize (from land clearing to harvesting) is approximately five months. According to key informants in the PAC’s, no agricultural support is offered by any Non- Governmental Organisation (NGO) or the government. However, the author is aware that the government does assist farmers in the region with seed, although this was not verified. In terms of gender roles, men normally clear and thin the land, whereas women are mostly responsible for harvesting and planting. Men are usually responsible for building harvest storage structures. This produce is usually sold at markets along the road, whilst some take their harvests to areas such as Metoro, Ancuabe or even Pemba. Most of the direct PACs do have weekly markets where agricultural products are sold.

Agricultural crop sales show a substantial monthly variation, depending on many factors: harvesting periods and/or climatic conditions, for example. During the interviews, informants were asked to elaborate upon different crop prices and selling units in their local market places (Table 3.7).

Table 3.7: Income Prices for Crops (2017) at local markets Crop Type Selling Unit Price (MZN) Price (US$) Corn MZN5,000 US$81.86 Cassava MZN1300 US$21.28 Sesame MZN47 US$0.77 1kg bags Beans MZN15 US$0.25 Peas MZN38 US$0.62 Groundnuts MZN24 US$0.39

According to the farmers, the agricultural challenges faced include erratic rainfalls (droughts and/or floods); lack of access to seeds, fertilisers or chemicals as well as farming equipment; agricultural disease; limited access to markets and lack of agricultural assistance or services. In addition to agricultural produce, productive trees are also of vital importance for household food security (adding a variety of nutrients to a household’s diet), but also commercial purposes (although not as important as general farming). Income from such fruit can be substantial and a major economic contributor during poverty cycles and hunger months. Most economic trees are usually planted around

Coastal & Environmental Services 27 Social Impact Assessment homesteads. At the time of RAP survey, 79% of all the recorded machambas had economic trees planted on them. Figure 3.15 depicts the types of food as a percentage of all those recorded in machambas.

Figure 3.15: Economic Trees (% of all recorded trees)

As shown in Figure 3.16, at the time of survey, most of the trees recorded on the machambas were either mango, cashew or papaya trees (25.45%, 23.64% and 21.82% respectively).

Figure 3.16: Economic Trees Recorded. Left to right: Mature cashew, producing papaya and sapling cashew.

47.1% of surveyed households do not keep any livestock at all, 48.5% keep chickens with only 3 households reporting to keep goats and other livestock. No livestock was recorded on any landholdings inside the mine site study area, but they are usually reared and grazed around homesteads. Bees are additionally kept for honey, which is eaten, used for spiritual rituals, utilised for medicinal purposes and sold at local markets or alongside the road.

3.6.4 Household Income and Expenditure

The majority of the households in the study area receive some form of income from their main household activities, namely agricultural (87%) and small business (5%) efforts.

Table 3.8: Main economic activities engaged in by households Job/Sector % Artisans 0.88 Assisting with farming 0.44 Informally employed 2.65 Own farming 87.61 Small business 5.31 Other 3.10 Total 100

Coastal & Environmental Services 28 Social Impact Assessment In terms of main household cash income sources, agriculture is responsible for the most households (69%) income followed by business activities (22%) and salaries (5.71%).

Figure 3.17: Household Income Source (% of surveyed household reporting these sources)

This is a limited source of income, though, as is mainly obtained by selling either some of the surplus crops, economic tree fruits, fish, bush meat or livestock at markets or next to the roads. Many households receive their sole income from selling charcoal, while some also receive remittances and land rent incomes.

Although asked to elaborate upon different income categories (such as livestock sales, fishing income, charcoal-making, trade income etc.), most households only seem to rely either on household member salaries, or agricultural income. The rainy season (i.e. the harvesting period between November and April) is said to be the months during which households receive the highest income.

Table 3.9: Average monthly income generated by the various economic activities Average Monthly Income Average Monthly Income Category % of households (MZN) (US$) Mining products 0.71 10,000.00 163.56 Craftsmanship income 0.71 200.00 3.27 Mining labour 1.43 10,250.00 167.64 Economic fruit income 1.43 400.00 6.54 Compensation 1.43 3,350.00 54.79 Fishing income 2.86 1,500.00 24.53 Livestock 3.57 1,220.00 19.95 Employment 5.00 5,966.67 97.59 Trading income 6.43 862.50 14.11 Piece jobs 6.43 4,550.00 74.42 Farm labour 10.71 1,321.43 21.61 Donations 14.29 841.05 13.76 Farming products 17.14 478.26 163.56 Charcoal 39.29 1415.80 3.27

With such a limited cash economy, daily expenditures remain high. The most common expenditure sources in the region are food, clothes and school registration fees and schooling materials such as books and uniforms. There are markets in most of the larger villages where food, agricultural produce and other basic goods are sold.

Most households indicated that food, household materials, clothes, but also healthcare are the highest sources of expenditure. School-related expenditures, such as school books and uniforms, are also claimed to be some of the highest expenditures have increased significantly in the area over the past few years.

Coastal & Environmental Services 29 Social Impact Assessment

Highest expenditures of households (%)

0.71 10.00 5.71 18.57

11.43

53.57

Ceremonies Clothes Education Food Health Household_Material

Figure 3.18: Household expenditure categories

The months of highest expenditures are the ones associated with the dry season, as machambas are being cultivated during this time, forcing households to spend more money on food. Few households share their income, whilst money is usually managed by men. Shop food prices are said not to have increased substantially or notable in the last few years according to survey respondents.

3.7 FOOD SECURITY AND HOUSEHOLD VULNERABILITY

3.7.1 Food security

Food security is a complex and multifaceted concept for which a specific assessment is often required, but will not be undertaken for this assessment process. There are several components by which food security can be measured, including food availability, accessibility to food sources, food stability, food utilisation and food consumption, as defined in the table below with a list of indicators for each component.

Table 3.10: The components of Food Security Component Definition Indicators  Food transport; This refers to the degree to which food is  Food production systems; physically available to the local population, Food  Weather (droughts/floods etc.); either through subsistence farming, natural availability  Use of food stock (subsistence or commercial); resources, hunting and fishing or in shops and markets.  Conversion from food to cash crops; and  Changes in import and export tariffs. This is the way in which different people are  Location of farms (distance to walk etc.); able to have access to food. In rural areas, a  Housing income and distribution; Food access variety of means are usually employed in order  Food prices; and and stability to access food, such as own using subsistence or left-over stocks, purchasing, bartering,  Sudden shocks or events (such a physical borrowing, sharing gifts or welfare systems. insecurity or weather events).  Food quality;  Method or preparation (do people have cooking Food The quality of food consumed and the ability of utensils, for example); utilisation the local population to prepare their food.  Storage facilities; and  Health status of individuals consuming food (endemic diseases, poor sanitation etc.). This refers to how food is consumed within a  Number of meals per day; Food household, which is generally indicated by the  Average meal consumption; and consumption amount of meals eaten per day and the total expenditure on food  Household expenditure on food.

The PAC have various levels of access to markets, farmland, hunting areas, rivers and natural resources due to the distances to these potential food sources. Most PAC have good access to

Coastal & Environmental Services 30 Social Impact Assessment markets along poor quality roads, although some food is bought and sold on roadsides or at smaller local markets. There are very few households receiving a formal income and therefore tend to borrow, barter, share or rely on food stocks and existing livelihood strategies, resulting in instability of food sources.

The quality and availability of water sources is relatively poor in the area, with some wells drying up in the dry season. Limited water sources, poor sanitation facilities and poor hygiene contribute to diseases and illnesses spread by food preparation and/or utilisation. Storage facilities are also limited as very few households are connected to the national energy grid, restricting the ability to keep fresh foods. Household diets are therefore restricted to food types that can be dried or stored. The food security and stability of surrounding communities is vulnerable and changes to livelihood strategies and access to natural resources may have detrimental effects.

The main food types consumed by households are indicated in Figure 3.19. Beans and maize meal porridge are the household staples, followed by rice, peas, cassava and fish as the main protein source. High starch diets are the norm in the study area and rural sub-Saharan Africa as in general.

Food Consumption (%) Beans 18.76 Pap 16.83 Rice 15.86 Peas 11.22 Cassava 8.90 Fish 7.74 Vegetables 6.19 Cabbage 4.06 Corn 2.32 Maize 1.93 Millet 1.74 Chicken 1.74 Other 1.55 Sweet… 0.58 Banana 0.39 Meat 0.19

0.00 5.00 10.00 15.00 20.00 Figure 3.19: Types of food consumed by households

Other protein sources such as chicken and red meat are not reported to be eaten often. Access to food/fruit trees is seasonally an essential part of the household diet. Most households report access to mango trees, with lemon, banana, papaya and guava trees also being utilised by them.

Household Access to Productive Trees (%) Access to Pawpaw trees 0 Access to Mandarine 0 Access to Oranges 0 Access to Avo 0 Access to Papaya trees 12.86 Access to guava 25.71 Access to Banana trees 25.71 Access to Other Productive trees 25.71 Access to Lemon trees 30 Access to Mango Trees 71.43 0 20 40 60 80

Figure 3.20: Household access to productive (food/fruit) trees

When asked how their households obtained their food 87.9% of households indicated that they both farm and purchase their total requirements, 6.4% purchasing all their food, and 5.7% solely from their own crops.

Coastal & Environmental Services 31 Social Impact Assessment

How food is obtained (%) 5.71 6.43

87.86

Both farm and buy food Buy Only Farm Only

Figure 3.21: How household food is obtained

24.2% (34/140) of surveyed households also reported experiencing hunger in the course of the previous year, generally this is an annual occurrence (February to April being the hungry period), and this determines that they are food insecure. Most households report to generally only eat meals twice a day, and once a day only during hungry periods. It is clear that drought and flood events that are common in the study area can significantly reduce crop yields remains a fundamental determinant of household food security for the PAC.

3.7.2 Household Vulnerability

The term ‘vulnerable is defined as any person or household who might suffer disproportionately or, “face the risk of being marginalized by the effects of resettlement” (Huggins and Lappeman, 2012). Such people can be seen as those who are unable to anticipate, cope with, resist and/or recover from project-related risks. For the purposes of this report, vulnerable people are defined as:

 Very poor people/households;  The elderly;  Infants and women;  Homeless children;  People with disabilities;  Households without security of tenure (no legal or traditional title to land); and  Women-headed households.

Particularly vulnerable groups do not have the social flexibility to withstand the stresses of the resettlement process. In any particular community, certain sections of the population are more vulnerable to change, having to adapt or mitigate their livelihoods in response to a new environment. Development creates a changing environment, whether positive or negative, and forces communities to adapt or diversify their livelihoods to accommodate such changes. Assessing the vulnerability context of the PAC ensures that developers pay attention to the needs of these groups.

1.76% of the surveyed population are above the age of 65, however this is likely to be much higher given the high number of unknown responses to this question in the survey - it is generally older people who cannot say for sure what their age is. Although in the minority, these citizens should be considered as vulnerable for several various reasons. One reason is that the elderly normally require additional healthcare services that generally are not available to residents of the more isolated communities in the study area. Despite the lack of hospices and state services for senior citizens in the area, families typically assist their elder relatives. They are often too old or infirm to grow (or collect) food for themselves, or sell their labour for income. No support is provided locally by the state in the form of pensions if they have not contributed to the national scheme during the course of their working life and this is applicable to the majority of project area PAC. Although not extensively reported in the household survey all communities confirmed that they had children with disabilities in their villages. A lack of adequate government supported education and healthcare services for

Coastal & Environmental Services 32 Social Impact Assessment disabled children expose the majority of households with disabilities to a host of vulnerabilities, such as chronic illnesses and lack of schooling.

The survey revealed that 14.2% of households were female-headed. These villages are still predominantly patriarchal, based upon the role men have in terms of managing household finances, and overall decision making at the household level. Female-headed households are especially vulnerable to any project-induced impacts, especially economic displacement, for the following reasons:

 In addition to heading the household, women are also responsible for everyday household chores, such as washing clothes, collecting wood, cooking and looking after the children. This means that females who head households have to work harder; and  Therefore, this added responsibility compounds the poverty burdens experienced by female- headed households, as they are then also responsible for chores predominantly considered male tasks, such as household finances, agriculture, decision-making and homestead maintenance (replacing cracked walls and thatch roofs etc.).

Such vulnerability (related to added responsibilities) is compounded by lack of security in land tenure, where women are typically not afforded the opportunity to own land, and risk being deprived of their central income-generating source. Land provides the primary source of income, but above all, food. Women are normally the first to have to deal with food insecurity and malnourished children [see, for example, (Gladwin et al. 2001)]. Another area where female subordination is often entrenched in local tradition is the management of household finances. In many rural communities, household finances are mostly managed by men. When women were questioned during a focus group discussion about household finances, the majority agreed that their husbands deal with the money. Some women strongly believe that they would be in a better position to manage household finances as, in their opinion, women have an emotional connection to the needs of their household members and would therefore firstly purchase food items. Men, alternatively, are believed by many women to be more absent-minded about spending money on the household, and would rather use the bulk of their households’ income on lower priority items which often include alcohol.

One quarter of the surveyed households can be deemed food insecure and therefore vulnerable, by virtue of the fact that they face shortages in the hungry periods and skip meals to compensate for this shortage. Possible vulnerable households who are amongst the farmers whose machambas will be affected by the project land acquisition will be identified during the compensation payment procedures. Each case will be investigated internally, after which appropriate measures will be put in place at the time of compensation. This might include extra farming assistance in terms of any livelihood restoration initiatives supported by the company, or simply providing transport support to get goods to market.

3.8 SUMMARY SOCIO-ECONOMIC BASELINE STATEMENT

It is apparent from the study findings that the majority of PAC households essentially engage in livelihood strategies that are almost fully subsistent in nature, and notably, agricultural activity dependent. People are poorly educated, with few of the surveyed adults having completed senior secondary (high) school, and very few of these subsequently attaining a tertiary education or some form of vocational training. People also lack skills that might otherwise be able to set them up in the wider economic market. As such, it is expected that the local labour pool can supply the project with largely unskilled candidates only.

The study area is also lacking in terms of public goods and service provision. Government capacity to deliver on these mandates is highly restricted. As a result, the study area inhabitants display an expected low level of basic or high school education, only access health services in times of emergency, and are mostly isolated from centres or towns where these limited services are available.

Understandably access to land, and the cultivation thereof, is crucial for household survival. The majority of the surveyed households obtained land tenure through their Traditional Authority with

Coastal & Environmental Services 33 Social Impact Assessment over a quarter of these inheriting these tenure rights. A minority of surveyed households indicated that they rent land parcels for agricultural production (note that the potentially affected farmers along the proposed access route and inside the mining tenement report that they do not pay rent for this land), paying this rent by means of reciprocal exchange of household labour, indicating the existence of an informal system of labour exchange between these households.

Animal husbandry and fishing are not large contributors to household food security or their overall livelihood strategy. Few households seem to own and raise livestock, or hunt bush meat, for commercial gain.

As such, any proposed project activities that could impact or curtail these livelihoods strategies and income sources will need to be understood by the proponent. There are vulnerable households present amongst the direct PAC and the project will need to identify and monitor these that may be impacted by project activities.

3.9 SOCIO-ECONOMIC DEVELOPMENT NEEDS

The objectives of an SIA include establishing socio-economic development needs of the PAC to identify how the project can contribute to community development. The ways by which the community feels the project may assist include the following:

 Providing support to primary schools through provision of more desks, chairs, schooling materials, toilets and improved water supply.  Construction of more wells and boreholes, or upgrading of existing ones.  Providing alternative sources of energy (such as solar energy) to needing households or buildings (such as some schools or clinics, for example).  Offering direct employment and skills development opportunities and indirect economic opportunities through increased demand for goods and services, support of Small, Medium and Micro-sized Enterprises (SMME) and indirect improvement of skills base in the area.

The proponent will develop a Social Development Plan (SDP) drawn up in close consultation with the surrounding communities and government stakeholders, which may include some or all of the above in the proposed or modified forms.

Coastal & Environmental Services 34 Social Impact Assessment 4 MAIN ISSUES INFORMING THE SOCIAL IMPACT ASSESSMENT

A summary of the anticipated issues, risks and impacts relevant to the project are summarised in the sections below.

4.1 NATIONAL AND REGIONAL BENEFITS

Both direct and indirect economic opportunities will be created as a result of the proposed project. Should the services from the surrounding area and villagers be used, the project will increase the amount of cash-flow into the affected villages and smaller settlements within the greater project area, and may further create opportunities for the sale of goods and services to the mine and mine employees. With the upgrading of services, this might potentially improve access and basic service provision for residents in the project area. The following benefits can be realised:

 Economic opportunities: both direct and indirect opportunities will be created (increase in amount of cash inflow to village in the immediate vicinity of the mine; upgraded services; potential improvements in access and basic service provision for residents; and direct economic benefits from employment).  Employment benefits: possibly resulting in an increase in the skills base in the area. However, the general lack of skills in the study area reduces the potential for long term employment opportunities available to local residents unless training is provided, in which case the skills base will increase in the area.  Social development: initiatives are to take the form of a dedicated Social Development Plan (SDP) to be developed by the company in consultation with key stakeholders.

The project will result in direct economic benefits at both provincial and national levels and any income generated from the mining operation will significantly increase the tax-base of the country.

4.2 LAND ACQUISITION AND ECONOMIC DISPLACEMENT

A Resettlement Action Plan (RAP) is currently being developed to address farmers potentially affected by project activities. The areas under cultivation that may be affected will be remunerated through a compensation framework for affected farmers according to legislation, and implemented in conjunction with residents, local leadership and relevant government stakeholders. These same parties will need to ultimately agree to, and formally approve the proposed compensation mechanisms and quantum’s to be employed.

The RAP will need to be developed and agreed to prior to the commencement of construction activities for project infrastructure that may impact on land under cultivation. The PAC have been reassured that any compensation measures appropriate to project induced economic displacement would follow national legislative processes and international guidelines regarding compensation for loss of assets or income sources, and that the process would not happen overnight.

Owing to the fact that no physical resettlement of people is required by the project, coupled with the fact that residents from surrounding PAC will probably be a significant contributor to the project’s labour requirements, it is preferable to prioritise them local employment as far as possible. This will also assist in minimising population influx into the project area during the construction phase.

4.3 GENERAL ACCESS TO NATURAL RESOURCES

The mining operation will limit access to the project areas due to the presence of the mine infrastructure. This may affect existing access routes that local communities rely on, and could make access to natural resources more time consuming. It will not be possible to design the mine to avoid all access routes completely, particularly as the locals utilise access created by the company as part of its prospecting activities. While some local access routes might be compromised, the company is aware of the many alternatives which the locals already have.

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4.4 LOCAL LIVELIHOOD STRATEGIES

The project is not anticipated to significantly impact on the PAC livelihood strategies currently being exercised by them, with the exception of farmers identified as being subject to potential and temporary economic displacement. However, it is necessary to ensure that their current levels of production are maintained or improved on alternate land parcels that will need to be identified within a safe distance from the access road.

4.5 HOUSEHOLD VULNERABILITY

The PAC are characterised by a large proportion of women-headed households, with disabled persons in these communities being reported. While it is not anticipated that the project will negatively impact on these vulnerable households’ existing livelihood strategies and their vulnerability context, there is potential for the project to identify these and ensure project benefits are made available to them. The RAP process that is underway will identify any affected farmers whose households can be considered to be vulnerable, in particular women-headed ones.

Where possible, recruitment strategies may also focus on recruitment from these households, bringing direct benefits to these households. There will also be indirect benefits from hiring locally to assist within the households may also occur.

4.6 IN-MIGRATION

The direct and indirect impacts associated with an influx of labourers and expatriates are likely to have significant impacts on PAC villages as it usually results in many social, cultural, economic and political changes. This will need to be closely monitored by the company, PAC and relevant government stakeholders.

4.7 COMMUNITY HEALTH AND SAFETY

General safety issues will be of importance owing to the proximity of the settlements to existing and potential future access routes for mining operations. The mining operation can pose severe safety risks to individuals who enter high risk areas of the mine site without authorisation, as well as communities living along transport corridors that will be subject to increased vehicular traffic. Should the mine block important access routes to natural resources, and safe route alternatives are not identified, community members might be tempted to cross the mine area exposing themselves to safety risks or harassment from security personnel. Accidents involving local residents carry a high project risk and can quickly become a source of conflict.

Inward migration and increases in the labour force employed in the area may impact negatively on the health standards of people in villages in the mine expansion area. This, however, needs to be understood within the context of a number of issues. Malaria rates are high in the area and it is unlikely that inward migration will increase these infection rates. An increase in levels of HIV/AIDS and other STD’s is also a concern. Current infection rates for the villages in the project area are not known, but inward migration may increase the rates of infection.

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4.8 AIR QUALITY

4.9 NOISE AND VIBRATION

4.10 LANDSCAPE AND VISUAL AMENITY (SENSE OF PLACE)

4.11 CHANGES TO SOCIAL SYSTEMS AND STRUCTURES

Construction and mining activity, increase in vehicular traffic, intensification of economic activity and improved economic/market linkages are all likely to alter the prevailing rural nature of the direct PAC settlements.

4.12 COMMUNITY CONFLICT

As noted above, in-migration to the project area can be expected during the construction phase and conflicts between them and local PAC can be expected if the project labour desk and recruitment processes are not implemented accordingly. Increased pressure on limited social services is almost certain and this can also lead to tensions - specifically around access to health and education services. Intra-community conflict over access to jobs can also be anticipated in and amongst the

Coastal & Environmental Services 37 Social Impact Assessment direct PAC if expectations around these opportunities, and the way in which they are allocated, are not carefully managed by the company and its contractors.

Coastal & Environmental Services 38 Social Impact Assessment 5 IDENTIFICATION AND ASSESSMENT OF POTENTIAL IMPACTS

5.1 SUMMARY OF ANTICIPATED IMPACTS

The issues and impacts associated with the proposed project are summarised in Table 5.1 below. The issues and impacts are assessed using the methodology explained in Chapter 1 for the construction, operational and decommissioning phases of the project. Mitigation and/or enhancement measures are recommended for each issue in the sections that follow.

Table 5.1: Potential Socio-Economic Issues and associated Impacts Issue Impact Construction Phase Reduced community access to agricultural land Heightened food insecurity Land Acquisition Reduced access to natural resources and ecosystem goods and services Impact on cultural heritage resources (graves, sacred sites etc.) Loss of ‘sense of place’ Provision of direct and indirect employment opportunities Economic Increased economic opportunities Development Training opportunities and skills development Localised community conflict due to perceived differential benefit distribution and in-migrant influx Increased competition for natural resources Increased pressure on the District’s limited social infrastructure In-migration Increased competition or conflict over project benefits between in-migrants and local residents Increase in social pathologies, prostitution, petty criminality and domestic violence Dust impacts due to increased traffic and improved road Increase in noise and traffic due to improved roads Health, Safety Increased safety risks due to improved roads and Security Increased safety and security risks due to an influx of people risks Increased risk of disease transmission and prostitution Increased household vulnerability Operational Phase Provision of direct and indirect employment opportunities Increased economic opportunities Economic Training opportunities and skills development Development Community conflict due to perceived differential benefits Social Development opportunities Dust impacts due to increased traffic and improved road Increase in noise and traffic due to improved roads Health, Safety Increased safety risks due to improved roads and Security risks Increased safety and security risks due to an influx of people Increased risk of disease transmission and prostitution Increased household vulnerability Decommissioning Phase Reduction of direct and indirect employment opportunities Economic Decreased economic opportunities Development Decreased training opportunities and skills development and Employment Impacts on local livelihood strategies Cumulative Impacts Increased pressures on existing social services Increased conflict over access to benefits from multiple projects in the study area An overall loss of sense of place or community identity Increased traffic congestion and road degradation Increased employment and economic opportunities Development of human capital (training and skills development) Increased awareness of health and safety Community development and social infrastructure upgrades

Socio-economic impacts are complex and dynamic and therefore the following should be noted with reference to the impacts identified:

 Socio-economic impacts are cumulative and synergistic (i.e. interactive and interdependent).  Socio-economic impacts can change with community dynamics and social processes. The

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project is therefore one of a number of possible contributing factors to such on-going change.  Socio-economic impacts are often unattended and unavoidable, making them difficult to mitigate. Mitigation measures are often strategies to manage change as opposed to avoid impacts.  Socio-economic impacts are not always measurable and the assessment is often subjective. Impacts therefore need to be informed by a clear understanding of social processes and knowledge of PAC.

To contextualise the potential impacts of the mining activities on the PAC, the existing impacts (or status quo), associated with current land use and socio-economic conditions are taken into account. This baseline or status quo is used as the comparison against which expected project impacts are assessed. The main issues identified in Chapter 4 are discussed below.

5.2 IMPACTS RESULTING FROM THE CONSTRUCTION PHASE

5.2.1 Issue 1: Land Acquisition

The proposed project will require a land take (the area of land that is required for the construction and operation of the project) and will therefore trigger impacts associated with land acquisition. There are machambas found within the project development footprint area, and disturbances to these existing land use practices, as well as reduced access to surrounding resources, are potentially very significant. The impacts assessed in this land acquisition section are:

 Reduced access to agricultural land;  Heightened food insecurity;  Reduced access to natural resources and ecosystem goods and services;  Disruption to graves and sacred sites; and  Loss of ‘sense of place’

The local communities depend on the land for subsistence agriculture as well as for natural resource use. The food security of local communities is vulnerable to changes in their livelihood strategies, particularly subsistence farming and access to natural resources. Direct impacts include increased pressure on local food sources and an increased reliance by PAC on the cash economy, reducing their standard of living or ability to access natural resources. Therefore, any full or partial loss of access to this land and natural resources, coupled with a general lack of access to food markets, may indirectly result in greater food insecurity in the study area if not actively managed by the proponent. There are limited alternative livelihood strategies and income generation activities available to PAC in the study area. However, the project is not anticipated to significantly impact on local livelihoods, and will for the construction phase at least, potentially support them through employment provision and increased demand for agricultural products.

A Resettlement Action Plan (RAP) is currently being conducted to compensate owners of machambas that will be affected by the access road and project area. The RAP will include detailed agricultural valuation of all affected farmlands and possessions to develop appropriate compensation strategies and entitlement matrices. The RAP will be conducted in accordance with the Mozambique Regulations for the Resettlement Process resulting from Economic Activities (2012) and the Ministerial Decree N155/2014 on the Internal Regulations for the Technical Commission on Monitoring and Technical Supervision of Resettlement. There are various potential indirect impacts associated with loss of agricultural land, but not limited to:

 Food insecurity;  Loss of income generation and financial poverty;  Loss of status and sense of importance within the community;  Health impacts associated with nutritional-related deficiencies and elevated stress levels;  Social dependency on support programmes or aid from the Government; and  Changes to subsistence and income-generation livelihood strategies.

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Cemeteries, gravesites and sacred sites are integral to local communities’ cultural and social identity. The disruption or restricted access to these sites may undermine the traditions and culture held by the communities in favour of the proposed project activities. There were gravesites and sacred sites observed and recorded within the project area and it is possible that more sites exist within the project area and may be discovered during the planning, construction and operational phases of the proposed project.

The project land take may also impact the cultural and traditional heritage of the surrounding communities, either through disturbances to graves and sacred sites, or as a loss of ‘sense of place’ that could be experienced by host communities (or PAC). A ‘sense of place’ refers to the identity and meaning that communities hold to a particular area or place. It comprises of a combination of characteristics that makes the place unique and meaningful. There are three aspects of ‘sense of place’ that are considered, namely:

 Attachment from a personal or group perspective (community land, land memory, knowledge and values);  Psychological process (villagers’ own feelings of the land, their experience on the land or the sense of pride, love or memories associated with the land); and  Physical place attraction (the area’s beauty, social and physical attraction, or its potential).

This sense of place may be impacted directly by the construction of the proposed project as well as indirectly through an influx of people from various ethnic groups and cultural backgrounds and due to the changes associated with economic growth and other external influences. The “place” as people currently know and experience it will change, and how they relate to these changes influences the overall significance of the impact for them.

Mitigation Measures: The following mitigation and enhancement measures are recommended:

 Implement the project RAP. The proponent must identify, monitor and report on the number and location of the machambas within the project study area. The proponent must determine whether the machambas within the project area can continue to operate throughout the construction and operation of the proposed project or whether the machambas will need to be relocated.  The affected farmers must be notified of such displacement/disturbance at least 3 months prior to any activities that may affect planting and harvesting abilities. No household’s land or machambas should be affected prior to the completion of the RAP.  The provision of agricultural extension services to PAC as part of any Social Development Plan (SDP) projects initiated by the company should be considered. These extension services can be developed and implemented in consultation with the affected villages, local stakeholders (including NGOs) and government authorities to assist farmers with agricultural practices and overcome land shortage and possible food insecurity. Some agricultural programmes that could be considered include: o Agricultural training aimed at farmers, using demonstration plots; o School garden programme, including education on nutrition and food security; o Food gardening or production of fruit trees; and/ or o Increased animal husbandry.  A Stakeholder Engagement Plan (SEP), including a Grievance Mechanism is being developed that will allow community members the latitude to inform the proponent of any machambas in the area; indicate where access to agricultural land is restricted; to report any other agricultural issues as a result of the project activities; to inform the proponent of any natural resources used; indicate where access to these resources is restricted; to report any other natural resource issues as a result of project activities; to inform the proponent of any sacred sites or gravesites in the project area not already identified; indicate if/where access to these sites are restricted and to report any other disturbance to these sites as a result of project activities.  The proponent is recommended to provide foot access route(s) around the project area to allow local communities access to natural resources, ensuring no project or community safety risks

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are posed by this access.  It is recommended that resources commonly used by surrounding communities are considered prior to land clearing activities, providing already cleared resources, such as felled wood or cut grasses, to communities where they will not utilised by the company.  The proponent can designate conservation or natural resource use areas that remain undisturbed by the project. These areas can be managed by the direct PAC with support from the company.  Where grave sites or sacred sites have been identified in the project area they have been recorded. If relocation is not required, a buffer area will be established around the grave or sacred site and no activities associated with the proposed project will fall within this buffer.  Should any sacred sites or grave sites be affected, the affected communities will be notified in advance and provided the option to receive compensation and/or assistance with reburial and related expenses, which will be determined through compensation matrices.  Should it be necessary, a Cultural Heritage Management Plan (although this is deemed unnecessary at this point in time owing to the lack of significant heritage resources currently identified on site) should be compiled in consultation with the affected villages, including: o Identification of sacred site or grave site in the area; o Measures to protect and/or relocate sites; o Cultural norms and values of local communities; and o Measures to protect cultural heritage of the area.  Develop a Chance Find Procedure that will specify the actions necessary on discovery of graves/heritage features and the actions /process to be followed.  Through the SEP, continued and transparent community engagements should be held on a regular basis to address any feedback, concerns, issues and/or grievances. Minutes need to be kept of such meetings, all which should be distributed to and signed by the proponent and relevant local authorities; and

Significance Statement Most impacts that could be experienced through land acquisition process will be of a high negative significance without implementing the mitigation measures described above. The overall significance will be reduced through the implementation of mitigation and enhancement measures which can assist food production levels, food security and provide income generation opportunities. The mitigation measures may even result in greater food production, stability, accessibility and security resulting in an overall beneficial impact.

Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 1: Land Acquisition Impact 1.1: Reduced community access to agricultural land Without Short term Study area Very severe Definite HIGH - Mitigation With Short term Study area Moderate May occur MODERATE - Mitigation Impact 1.2: Heightened food insecurity and increased local food prices Without Short term Study area Very severe May occur MODERATE - Mitigation With Short term Study area Beneficial Probable MODERATE + Mitigation Impact 1.2: Reduced access to natural resources and ecosystem goods and services Without Short term Study area Severe Definite HIGH - Mitigation With Short term Study area Moderate May occur MODERATE - Mitigation Impact 1.4: Impact on Cultural Heritage Resources (disruption of graves and sacred sites) Without Permanent Study area Very severe May occur HIGH - Mitigation With Permanent Study area Moderate May occur MODERATE - Mitigation Impact 1.5: Loss of ‘sense of place’

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Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 1: Land Acquisition Without Permanent Study area Moderate Probable MODERATE - Mitigation With Permanent Study area Slight Unlikely LOW - Mitigation

5.2.2 Issue 2: Economic Growth and Employment Opportunities

There are limited economic and employment opportunities in the area, with very few household members formally employed, or receiving a formal wage or salary. The provision of unskilled, semi- skilled and skilled workers will directly and indirectly generate economic growth and opportunities in the area, particularly if labour is employed locally. During the construction and operational phases, the project area will likely experience an influx of job-seekers into the area, placing increasing pressure on local resources and possible conflict within local communities. The following impacts are related to this issue, which are assessed below:

 Provision of direct and indirect employment opportunities  Increased economic opportunities  Training opportunities and skills development  Localised community conflict due to perceived differential benefit distribution and in-migrant influx.

The project will provide direct employment in the construction phase of the project. The number of workers to be employed is not yet known. The project will additionally provide indirect employment opportunities through increased economic activity and growth in the area. These employment opportunities may be in Small, Medium and Micro-sized Enterprises (SMME), as shop owners due to increased demand for local goods and services or increased local employment such as teachers or medical staff. The project will additionally contribute to indirect employment through awarding contracts that do not directly relate to mining activities, such as transportation, and security. Employees of the project will additionally contribute to indirect employment such as cleaning services, food supply services, sewing and weaving services etc. to the local population.

The surrounding communities are uneducated and lack skills required in the workplace, specifically for mining projects. These community members will benefit greatly from skills development and training opportunities, such as on-the-job training, workshops or other education initiatives in the construction phase of the proposed project. The project could additionally result in an influx of people into the area which will increase the demand of local goods and services. This will provide economic opportunities for local community members who can start small businesses providing local services or offering locally sourced goods. The income-generation can be reinvested in the local community, indirectly contributing to economic growth and development in the area.

It is likely, however, that differential employment benefits (such as favouring people from other villages, larger towns, cities or migrants in search of opportunities over people from local PAC) may lead to community conflicts due to unrealistic expectations about employment opportunities coupled with already high expectations from local communities relating to income generation activities and perceived benefits from the proposed project. This may lead to an influx of job-seekers and could create conflict during the construction phase of the project and is discussed further in Section 5.2.4.

Mitigation Measures: The mitigation and enhancement measures recommended include:

 The following International Labour Organisation (ILO) conventions must be adhered to: o ILO Convention 87 on freedom of association and protection of the right to organise; o ILO Convention 98 on the right to organise and collective bargaining; o ILO Convention 29 on forced labour;

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o ILO Convention 105 on the abolition of forced labour; o ILO Convention 138 on the minimum age of employment; o ILO Convention 182 on child labour; o ILO Convention 100 on equal remuneration; and o ILO Convention 111 on discrimination.  These planning efforts should incorporate collaborative management strategies for in-migration, ensuring fair access to community benefits from the project as well as transparent and effective communication with local stakeholders.  The company will ensure that recruitment is fair and transparent and that local job opportunities are maximised, working with the local communities to ensure this.  The company’s community and environmental team will work with the surrounding communities.  Direct PAC should be provided first priority in job opportunities and training, prior to indirect PAC.  Attention must be provided to employment opportunities for vulnerable persons (women headed households and disabled persons).  A plan for gradual replacement of expatriates and outsiders by local people will be developed and implemented over the course of the project’s lifespan.  The proponent should ensure, as far as reasonably possible, to source materials, products and services locally.  The proponent is encouraged to provide on-the-job training, skills development and learnership opportunities to unskilled community members, who will gain workplace skills under the supervision of more experience staff. The proponent can additionally provide workshops or educational programmes to increase the skills of the local communities in the area and support to local primary schools, such as school supplies, financial support or contribution to improve facilities, and to provide skills development opportunities to the youth.  A Grievance Mechanism must be implemented as part of the SEP to allow community members the opportunity to voice any concerns that may result in community conflict or conflict between the proponent and the communities.

Significance Statement Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 2: Economic Growth and Employment Opportunities Impact 2.1: Provision of direct and indirect employment opportunities Without Moderately Short term Study area Probable MODERATE + Mitigation beneficial With Short term Study area Very beneficial Definite HIGH + Mitigation Impact 2.2: Increased economic opportunities Without Short term Study area Slightly beneficial May occur LOW + Mitigation With Moderately Short term Study area Definite MODERATE + Mitigation beneficial Impact 2.3: Training opportunities and skills development Without Short tern Study area Beneficial May occur MODERATE + Mitigation With Short term Study area Very beneficial Definite HIGH + Mitigation Impact 2.4: Localised community conflict due to perceived differential benefit distribution and in-migrant influx Without Short term Study area Moderate Probable MODERATE - Mitigation With Short term Study area Slight Unlikely LOW - Mitigation

5.2.3 Issue 3: Health, Safety and Security

The Health Impact Assessment (HIA) conducted for the project (CES. 2017) concluded that:

“...eight key issues which were further elaborated upon with impact ratings and mitigation and/or project enhancement measures. Of these eight, particularly vector-related diseases (such as malaria), but also communicable diseases like TB, were considered as being a high risk to the health

Coastal & Environmental Services 44 Social Impact Assessment of the communities should no mitigation measures be implemented be implemented by the company.

Malaria, for example, is considered to be one of the most significant causes of mortality in the study area. This is a serious disease which could potentially increase with more breeding habitats for mosquitoes, such as which might be associated with an influx of people or the deterioration of current living conditions. The project could potentially affect the rate of malaria by creating new water bodies for the vector activities to breed in, or an influx of people can also potentially change the environment and land-use practices in the area.

Increased rates of STI and HIV/AIDS infections or transmission are raised as a significant concern with the influx of job-seekers and related socio-economic changes which could be expected with any development. This issue was extensively discussed in the report, although reliable statistics on HIV infection rates could not be sourced from local health facilities. However, the qualitative data does show that HIV/AIDS exist in the communities, although the significance of this is not well-known. There are signs of possible discrimination or stigmatisation against those who are infected, however, the local health system does provide the requisite treatment. The existing rates of non-communicable diseases are not considered to be heavily influenced by the introduction of the project, and these impacts are considered negligible.

Malnutrition, on the other hand, is another salient feature of the study the area. The project could potentially affect this through an influx of in-migration of people into the study area who could put additional strain on existing land usage and yields. However, more importantly, food prices might escalate as a result of an influx of people and more employment opportunities. With appropriate mitigation measures and project benefits, malnutrition, as with many other issues, can actually be reversed and become a different project benefit.

Particular soil, water and waste-related diseases, such as diarrhoea in particular, were considered as possible moderate to high impact issues if no mitigation measures are introduced. The project could potentially affect the occurrence of diseases such as diarrhoea as a result of poor water and waste related management standards and practices, which could affect the underground water table and local rivers.

Increased vehicular traffic potentially can lead to death or injury of hot community members if their movements and drivers are not appropriately managed through denser areas of occupation along the transport route and access road to the project site.

It is believed that the project could have an effect on the host community’s social determinants of life, especially a possible increase in substance abuse and domestic violence that can potentially be associated with more money circulating in these communities, which will occur as a result of employment with the project. Both of these pathologies are observable in the study area; however, the impact thereof can be minimised with the implementation of appropriate mitigation and management measures.

In conclusion, it is also anticipated that the introduction of the project will place additional pressures on existing and limited health service infrastructure as a result of the anticipated influx of job-seekers into the area, and the required influx management strategy will need to be implemented prior to the commencement of project construction activity so as to control (as far as possible) this expected in- migration to the project area.

The HIA should be referred to in its entirety should the reader wish to gain a more detailed understanding of the anticipated project induced health risks, and the proposed mitigation strategy to deal with these. However, the overall project impacts on community health will be minimal if the risks described in this section are appropriately managed.

The site access route upgrade will pose a safety risk to communities located in close proximity to the road as well as pedestrians and cyclists making use of the access route in the short term. Rural communities in the area are not aware of the risks that vehicles present, and are unfamiliar with road

Coastal & Environmental Services 45 Social Impact Assessment safety rules and the obligations of pedestrians. The increased traffic along the unpaved roads will additionally lead to increased dust emissions (especially in the dry season), which contribute to health and respiratory issues; increased risk of vehicle accidents due to low visibility; and impacts to soil, agriculture and vegetation on roadside verges due to dust. The improved road will result in increased noise and traffic, which will cause a nuisance factor (noise) and a safety risk to communities situated close to the road during both the construction and operational phases. The increase in noise and traffic may negatively impact the quality of life for the local communities. Secondary impacts such as a substantial increase in solid waste generated by in-migrant settlements and associated impacts on water quality will lower the quality of life for surrounding communities if what resources and services that area available are over utilised by an increased in-migrant population. Increased competition for land access will impact on these households that are currently deemed to be vulnerable (food insecure as well as women-headed) are more susceptible to these changes.

Other social ills such as increased prostitution and petty crime can also be expected. The use of security personnel is important from a safety perspective to ensure safety of both the host communities and the project itself; however, it is vital to ensure that the personnel are adequately trained to avoid conflict between local villagers and security. Local communities may feel threatened by security personnel or may feel that their access to the area is being denied.

Mitigation Measures  Clearing vegetation only from areas that will be worked on in the short term future.  Preparing dust control procedures to identify dust sources, help reduce negative impacts of dust and provide monitoring of dust emissions.  Periodically inspect project activities vehicles to ensure that noise levels are limited and vehicles have not been modified.  Investigate the establishment of noise buffer zones on either side of the road to ensure no development or households are located within the buffer zones.  A speed limit should be introduced and strictly adhered to along existing and proposed access routes to site roads, particularly when driving through or close to a village.  The use of company vehicles and other vehicles associated with the proposed project should be closely monitored, including: o A GPS tracker on the vehicles to determine the distance and speed. o A GPS tracker on vehicles to monitor usage (driver, date, time, mileage etc.).  A road safety awareness campaign should be conducted in each village and schools.  A Grievance Mechanism must be used to allow villages to voice their concerns regarding community or road safety issues, security personnel and other possible community safety risks.  Any incidents must be reported and assessed by the proponent, who will implement the appropriate measures.  The entrance of the project area should be controlled by trained security personnel.  A zero-blood alcohol level by employees should be adopted at the mine site. Regular monitoring and inspections of the labour force can ensure that such an approach to alcohol is applied. Regular alcohol testing campaigns can be considered.  All the PAC will be informed about the roles and responsibilities of the security personnel through regular community briefings.  As far as possible, the proponent should engage a security consultant to assist in the following: o Human rights training; o When hiring security personnel, reasonable effort must have been made to inquire whether the personnel have not been part of past abuses; o Security personnel need to be properly trained and, most importantly, appropriate conduct towards farm-owners; o Appropriate penalties must be imposed on any security personnel who is involved in theft or abuse; and o A code of conduct must be developed for the security personnel.  A clinic or health-centre at the mining site will offer on-site occupational and emergency services for its workforce only. The clinic should, however, develop its own health monitoring programme

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to track key health trends in the area. This should take the form of a Community Health and Safety Plan (CHSP) which includes an emergency preparedness and response plan for any communicable disease, or other vector related disease, outbreaks or infection spikes.  As part of the labour recruitment process, all potential employees should undergo a pre- employment health screening assessment prior to being employed and/or accommodated on site. This should include specific tests for Tuberculosis (TB), Respiratory Tract Infections (RTI) or Bilharzia (Schistosomiasis). The results need to be shared with the local health authorities in a confidential manner, and workers with serious disease should firstly be treated prior to sharing contact with other workers  The proponent could strengthen partnerships with local health authorities and NGOs by materially supporting certain health initiatives, or providing financial support for particular campaigns or programmes. The project could also consider supporting local clinics through the provision of supplies or medical equipment and improved facilities. Prior to the development and implementation of any healthcare assistance programme, it is proposed for the proponent to develop a memorandum of understanding (MoU) with the local leaders, health authorities and the Government to ensure that the project does not become the de facto government or service provider in the area, and that its development programmes are aligned with government’s.  Provide free condoms at the mine’s clinic, as well as in other health posts in the area.  The project may consider offering free Voluntary Counselling and Testing (VCT) for its workforce/community and closest PAC from which its labour is sourced from.  Support existing malaria programmes or workshops in the area (or community based interventions), or develop new programmes specifically aimed at schools. Such programmes could be supported by local health workers.  The proponent is encouraged to develop an awareness campaign in collaboration with the local clinic for both communicable, and non-communicable diseases, and associated prevention strategies. This campaign should be aimed both at the workforce and also the wider PAC.  Labour accommodation units during the construction phase need to be properly planned to avoid overcrowding living conditions that can result in higher rated of communicable disease transmission amongst employees or contractors.  Existing Water, Sanitation and Hygiene (WASH) community programmes could be supported. Additional WASH programmes could be initiated, using local community healthcare workers. In addition, free hand washing soap could be distributed to the workforce regularly with the aim of encouraging the practice of good hygiene.  A Code of Conduct should be developed for all workers at the mine to conform to basic health standards. This should include standards for not urinating or defecating near any open water sources.  The ongoing identification and assistance to vulnerable households affected by project activities must be maintained as a priority in the construction phase.

Significance Statement Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 3: Health, Safety and Security Impact 3.1: Increased transmission of communicable Diseases (TB, STD, HIV etc) Without Long term Regional Very severe Probable HIGH - Mitigation With Long term Regional Moderate Probable MODERATE - Mitigation Impact 3.2: Dust impacts due to additional access roads and construction traffic Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Definite LOW - Mitigation Impact 3.3: Increase in noise and traffic due to improved roads Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Probable LOW - Mitigation Impact 3.4: Road traffic safety risks and potential mortality

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Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Without Short term Study area Very severe Probable HIGH - Mitigation With Short term Study area Moderate May occur MODERATE - Mitigation Impact 3.5: Increased household vulnerability Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Probable LOW - Mitigation

5.2.4 Issue 4: In-Migration

The proposed project will attract migrant labour to the area in search of employment opportunities. As most of the villagers are unskilled and uneducated, skilled labour will likely be sourced from other areas within Mozambique, as well as from neighbouring countries. The proponent has confirmed that all local labour recruitment policies and practices will ensure that no persons are hired at the gate of the mine site. This is a crucial mechanism for reducing the anticipated influx of job seekers to the mine site location. The IFC guidelines on project-induced in-migration suggest that influx can threaten ‘project security’ and that it should be managed as a project threat, even though influx is considered out of the control of the developer (cf. IFC, 2009). The anticipated influx of job-seekers to the area can also potentially pose increased security risks to resident communities, and result in community conflict and increased crime in the area. There are noted direct and indirect impacts associated with an influx of people to project developments in rural areas like the Grafex project context that will likely result in social, cultural, economic and political changes to the area. These impacts can include:

 Tension and conflicts between locals and migrants regarding natural resources, land and employment opportunities;  Inflated local food and produce prices;  Increased pressure on already limited social and natural resources;  Increased ‘social ills’, such as prostitution, alcohol abuse, and crime;  Increased prevalence of communicable diseases;  Creating ‘poverty gaps’ and income and wealth inequalities between locals and migrants; and  Disruption of social dynamics.

The influx of people into the Grafex project study area is expected by CES to result in:

 Increased competition for natural resources, land occupation and use in the vicinity of the mine is anticipated. This will also imply land degradation impacts will occur at a faster rate in the study area than what the current land-use practices (charcoal production and limited agriculture and livestock grazing) are inducing.  Increased pressure on the District’s limited social infrastructure; schools, health services, waste disposal facilities and potable water sources can be expected if the influx of people is large.  Increased competition or conflict over project benefits between in-migrants and local residents.  Increase in social pathologies, prostitution, petty criminality and domestic violence.

It is apparent from the above summary that the key to managing and avoiding these impacts is constraining the development of in-migrant settlements anywhere near to the mine site, and to a lesser degree the jetty location, the latter being far more manageable for local government. It is a base assumption that once the construction activities cease, there will be little incentive for locals or in-migrants to remain in the area, and however the potential for ongoing settlement by some remnant households - particularly those who can be classified as vulnerable - is high.

Mitigation Measures  Developing a Labour Recruitment and Influx Management Plan (LRIMP). The purpose of the LRIMP is intended to provide a set of actions and responsibilities for the management of impacts

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linked to any potential project induced influx or in-migration into its extended area of influence over its lifespan. The objectives of the LRIMP are to: o Avoid unplanned and unmanaged in-migration into the project’s area of influence; o Determine the potential migration routes and in-migrant settlement ‘hotspots’; o Monitor the rate and scale of influx and settlement into the project area once this occurs o Provide the initial framework approach to managing these impacts in order to ensure that these are minimised a far as possible, while also ensuring the potential benefits are distributed as equitably possible; and o Assign responsibilities and resources for the proposed management measures.  The LRIMP will be developed in accordance with the following guidelines: o Information dissemination: Employment opportunities should be made available to the local public through regular briefings; o Recruitment and supply chain transparency: Recruitment and procurement processes should be transparent and accessible to the public; o Influx management and security arrangements: Any security measures associated with the project should restrict uncontrolled influx of job-seekers while allowing free and safe access and mobility for local communities; and o Regular engagement with local communities and security personnel, such as workshops and/or meetings, could be undertaken to gain understanding of communities’ needs and the safety and security measures required for the project.  The company and local/district government will need to agree to the measures to be implemented to spatially contain limit in-migrant settlement to the study area itself, as well as monitor increased demands on social services and infrastructure.

Significance Statement Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 4: In-Migration Impact 4.1: Increased pressure on natural resources Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Probable LOW - Mitigation Impact 4.2: Increased pressure on social infrastructure Without Short term Regional Very severe Definite HIGH - Mitigation With Short term Regional Moderate Probable MODERATE - Mitigation Impact 4.3: Increased competition or conflict over project benefits between in-migrants and local residents. Without Short term Regional Severe Probable MODERATE - Mitigation With Short term Regional Moderate May Occur LOW - Mitigation Impact 4.4: Increase in social pathologies, prostitution, petty criminality and domestic violence. Without Short term Regional Very severe Definite HIGH - Mitigation With Short term Regional Moderate Probable MODERATE - Mitigation

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5.3 IMPACTS RESULTING FROM THE OPERATIONAL PHASE

5.3.1 Issue 1: Economic Growth and Employment Opportunities

There will be reduced employment opportunities in the operational phase, however, economic growth opportunities should remain constant. It is expected that there will be a reduced influx of people in search of benefitting these opportunities, however, some of these in-migrants will remain. The following impacts are related to this issue in the operational phase:

 Provision of direct and indirect employment opportunities  Increased economic opportunities  Training opportunities and skills development  Community conflict due to perceived differential benefits  Social Development Opportunities

These employment opportunities will provide formal employment, a regular source of income and therefore economic stability for households. The economic growth opportunities will continue through the operational phase, contributing to the provision of indirect employment opportunities. The provision of training and skills development opportunities for locally sourced employees will continue to benefit the surrounding communities in the operational phase, further contributing to the available skills base in the area. Community conflict as a result of perceived differential benefits, reduced employment opportunities, and a decline in informal (SMME) income generation activities and natural resources in the area are likely to continue into the operational phase of the project.

Most projects provide additional community benefits which can be easily overlooked. This includes ad hoc social support to schools or clinics as well as assistance with construction or maintenance of wells, footballs fields and other activities aimed to improve social infrastructure, often through company CSR spends. The proponent will undertake a consultation exercise with the surrounding community and implement required projects accordingly. The project support provided to local communities will likely result in improved basic infrastructure, and social services, such as wells or hand pumps, education supplies or improved healthcare facilities.

Mitigation Measures The mitigation and enhancement measures recommended for Issue 1 of the construction phase are applicable. In addition, labourers involved in the construction phase of the project should be incorporated in the permanent staff for the operational phase, as far as possible. In addition the company is required to develop a Social Development Plan (SDP) as part of the proponent’s as per the Corporate Social Responsibility Policy for the Extractive Industry of Mineral Resources, Resolution (No. 21/2014) and the Manual on the implementation of Social Corporate Responsibility for Extractive Industry of Minerals Resources (No. 8/2017). Grafex should develop this prior to the commencement of operational activity and submit this SDP to the relevant authorities. This will be updated periodically to reflect new interventions, as well as progress against all previously defined development projects or programmes.

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Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance With Long term Regional Beneficial Definite HIGH + Mitigation Impact 1.3: Training opportunities and skills development Without Moderately Long term Regional May occur MODERATE + Mitigation beneficial With Long term Regional Beneficial Probable HIGH + Mitigation Impact 1.4: Community conflict due to perceived differential benefit distribution Without Medium term Study area Slight Probable MODERATE - Mitigation With Medium term Study area Slight Unlikely LOW - Mitigation Impact 1.5: Social development opportunities Without Moderately Long term Study area Probable MODERATE + Mitigation beneficial With Long term Study area Beneficial Definite HIGH + Mitigation

5.3.2 Issue 2: Health, Safety and Security

The impact of increased dust due to the improved access road and therefore increased traffic volumes will continue in the operational phase of the project. The improved roads will increase the noise and vibration effects in the operational phase due to increased traffic volumes compared to the status quo. The increase in noise and traffic may negatively impact the quality of living for the local communities as well as pose a safety risk to PAC and road users. As for the construction phase the risk of an increase in communicable diseases remains high, but lower during operations. Vulnerable in-migrant households that remain in the study area after work opportunities have dried up will probably struggle to maintain their livelihood strategies if they have not diversified into agricultural production during the construction phase. These are likely to be the most vulnerable households that will also be the most affected by project activity and changeover to a smaller work force.

Mitigation Measures Mitigation Measures provided for Issue 3 of the Construction Phase remain applicable here.

Significance Statement Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 2: Health, Safety and Security Impact 2.1: Increased transmission of communicable Diseases (TB, STD, HIV etc) Without Long term Regional Very severe Probable HIGH - Mitigation With Long term Regional Moderate Probable MODERATE - Mitigation Impact 2.2: Dust impacts due to additional access roads and construction traffic Without Long term Study area Moderate Definite MODERATE - Mitigation With Long term Study area Slight Definite LOW - Mitigation Impact 2.3: Increase in noise and traffic due to improved roads Without Long term Study area Moderate Definite MODERATE - Mitigation With Long term Study area Slight Probable LOW - Mitigation Impact 2.4: Road traffic safety risks and potential mortality Without Long term Study area Very severe Probable HIGH - Mitigation With Long term Study area Moderate May occur MODERATE - Mitigation Impact 2.5: Increased household vulnerability

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Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Probable LOW - Mitigation

5.4 MINE CLOSURE AND DECOMMISSIONING PHASE IMPACTS

The decommissioning phase of the mine, more than 30 years in the future, will involve mine closure activities which will provide limited employment opportunities, and result in an overall decline in economic activity in the projects area of influence. The decommissioning phase requires a substantially smaller workforce than in the operational phase and these employment opportunities will all be short term. It is essential that skills transfer and training takes place, particularly in the operational phase, is sufficiently capacitating for local community recipients thereof to seek other employment opportunities once the operational and decommissioning phases come to an end.

Post-mining communities often suffer hardship as a result of disruption of their traditional lifestyles which may be exacerbated by a sudden collapse of the temporary support provided by the mine and/or its employees, as well as the informal economy that has been supported by the project’s presence. Plans should be put in place early on in the mining process for post-mining activities. In terms of land, a rehabilitation forum should be created of all relevant stakeholders, including representatives of local communities, to develop a rehabilitation plan. The “boom and bust” cycles associated with initial construction, operation and eventual closure of the mine that can potentially leave the most vulnerable of in-migrants exposed to greater hardships once these cyclical benefits of the project are no longer available to them. Those households that have relied on wage earnings and have not maintained an agricultural livelihood, become less reliant on natural resources, and cannot find other employment opportunities, are likely to be left vulnerable on mine closure.

Mitigation measures The mine closure and rehabilitation plan that is being developed by the company will detail the strategies to maximise employment in the closure period, while also providing an indication as to how remnant mine infrastructure can be used for community or local government benefit.

Significance Statement Effect Overall Impact Risk or Likelihood Temporal Scale Spatial Scale Severity of Impact Significance Issue 1: Economic Growth and Employment Opportunities Impact 1.1: Indirect and direct employment opportunities Without Short term Study area Slight Definite LOW + Mitigation With Short term Study area Moderate Definite MODERATE + Mitigation Impact 1.2: Decreased economic development opportunities Without Short term Study area Moderate Definite MODERATE - Mitigation With Short term Study area Slight Probable LOW - Mitigation Impact 1.3: Reduced training and skills development Without Long term Regional Very severe Probable HIGH - Mitigation With Long term Regional Moderate Probable MODERATE - Mitigation Impact 1.4: Impacts on local livelihood strategies Without Medium term Study area Moderate Definite MODERATE - Mitigation With Medium term Study area Slight Probable LOW - Mitigation

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5.5 CUMULATIVE IMPACTS

The IFC (2012) defines cumulative impacts as those “that result from the incremental impact, on areas or resources used or directly impacted by the project, from other existing, planned or reasonably defined developments at the time the risks and impacts identification process is conducted.” Since Mozambique’s economy is growing rapidly due to foreign investments, it is highly probable that other mines and/or large scale projects will occur adjacent to the study area during the lifespan of the project. Even though the possible extent of the cumulative impacts cannot be determined due to not knowing the number of projects that will receive environmental authorisation in the immediate area, it is still important to try and identify the negative and positive impacts which may arise in the long term and this includes looking at this project in conjunction with other projects.

Cumulative impacts arise as a result of successive, incremental and combined impacts of mining activities on society, the economy and the environment.

Cumulative impacts are complex and assessed on a broader level, making it difficult to apply the same methodology as direct and indirect impacts. Consequently, an overall impact significance has been determined for each of the cumulative impacts identified below.

CUMULATIVE IMPACT SIGNIFICANCE RATING Increased pressures on existing social services MODERATE - Increased conflict over access to benefits from multiple projects in the study area LOW - An overall loss of sense of place or community identity LOW - Increased traffic congestion and road degradation MODERATE - Increased employment and economic opportunities HIGH + Development of human capital (training and skills development) HIGH + Increased awareness of health and safety MODERATE + Community development and social infrastructure upgrades HIGH +

There are various site-specific mitigation and enhancement measures that can be implemented, including the implementation of management systems, engagement with communities and other stakeholders and developing mechanisms for regular reporting on social and economic changes. There are effective broad-level strategies that may be implemented through cross-company collaboration and engagement with national, provincial and district-level key stakeholders.

Coastal & Environmental Services 53 Social Impact Assessment 6 SOCIAL MITIGATION MANAGEMENT FRAMEWORK

The proposed management plans or procedures are to be developed and implemented to mitigate and enhance expected social impacts over the construction and operational phases of the project are provided in Table 7.1 below.

Table 7.1: Social Mitigation Management Framework Mitigation/Management Detail Measure The IFC guidelines on project-induced in-migration suggest that influx can threaten “project security” and that it should be managed as a project threat. According to these IFC guidelines (IFC, 2009), a project’s security objectives are to: (i) protect the work force, (ii) safeguard the physical assets, (iii) sustain business continuity, and (iv) preserve the reputation of the project and company. As such if influx related impacts are treated as Labour Recruitment threats to the project, and managed accordingly, the proponent will increase the likelihood and Influx Management of mitigating the in-migration of large numbers of economic migrants and job seekers to Plan (LRIMP) villages neighbouring the mine lease area. The required Labour Recruitment and Influx Management Plan must include procedures for disseminating employment-related information, recruitment and supply chain procedures, as well as influx management and security arrangements. This will be developed prior to the commencement of construction activity. A Stakeholder Engagement Plan defines communication processes and involvement with surrounding communities. A SEP must outline roles and responsibilities of all stakeholders Stakeholder to manage expectations of local communities. Stakeholder engagement is a platform by Engagement Plan which key environmental and social issues can be established and understood to improve (SEP) decision-making, determine solutions to issues of concern. The first iteration of the project SEP has been developed by the company. A Resettlement Action Plan is currently being prepared to compensate the economic displacement of farmers with machambas located along the mine access route, as well as the limited number of these within the mining area that have been identified (Figure 1.2). Specific matters to be addressed by the RAP will include:  Informing the government prior to conducting the RAP;  Establishing a Technical Working Group (TWG) of PAC representatives, along with government representation therein; Resettlement Action  A detailed asset and agricultural inventory; Plan (RAP) and  Developing appropriate compensation strategies and entitlement matrixes; Livelihood Restoration  Recording affected villagers’ access to natural resources, specific sites and/or trees of Plan (LRP) cultural value etc.;  Developing livelihood restoration strategies via an associated Livelihood Restoration Plan;  Identify alternative farmland;  A future monitoring programme (with a strong focus on food security and nutrition);  Establishing a Grievance Mechanism (see below); and  Obtaining district and provincial level approval of the RAP prior to finalisation and implementation. A Grievance Mechanism has been established in the SEP that allows for PAC to lodge Grievance Mechanism grievances or register concerns. The company will consider implement a Social Development Plan that will present the objectives and procedures for community development projects, for example:  Providing support to primary schools through provision of more desks, chairs, schooling materials, toilets and improved water supply.  Construction of more wells and boreholes, or upgrading of existing ones. Social Development  Providing energy to PACs or alternative sources of energy (such as solar energy) to Plan (SDP) needing households or buildings (such as some schools or clinics, for example).  Offering direct employment and skills development opportunities and indirect economic opportunities through increased demand for goods and services, support of Small, Medium and Micro-sized Enterprises (SMME) and indirect improvement of skills base in the area. This plan must ensure that cultural heritage in the area is managed and protected. This Chance Find plan needs to identify all the sacred sites to be affected and propose ways to protect these Procedure sites. The plan should also provide measures for the possible exhumation and/or reburial (including a Grave of particular tombs to be affected. This should include the following considerations Relocation Plan) (amongst others):

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 Appropriate consultation;  Preparation of coffins and new burial sites; and  Compensation to family members (if applicable). A Community Health and Safety Plan that includes identification and evaluation of risks and impacts of project activities on health, safety and security of local communities and the provision of procedures to prevent and avoid negative impacts and enhance any Community Health and positive impacts to community health, safety and security. This may include the provision Safety Plan (CHSP) of adequate health related information and prevention measures through community engagement, perhaps in collaboration with the local clinic, as well as traffic safety rules and appropriate plans and mitigation measures for demarcating and fencing-off the mining area. A standard operation procedure is required to include appropriate recruitment procedures and measures for the use of security personnel to ensure their interaction with individuals, and the PAC in general, are duly considerate and professional. Security personnel need Security Personnel to be properly trained and vetted for past convictions. A code of conduct should be drafted and implemented for security personnel that places emphasis on legal and human rights obligations.

The majority of the above framework components are being developed in parallel with the project Environmental and Social Management Programme (ESMP) that will be submitted to all relevant authorities for approval, along with the project ESHIA reporting by the end of this year. The ESMP and attendant action plans or procedures will be updated on a periodic basis throughout the project’s life cycle.

Coastal & Environmental Services 55 Social Impact Assessment 7 CONCLUSION

The assessment of impacts indicated that land acquisition during the construction phase will result in a limited, if not negligible, reduction in community access agricultural land, possible heightened food insecurity for in-migrant households, and a limited reduction in access to natural resources and ecosystem goods and services. The project’s overall impact on local PAC food security throughout the construction and mining phases is deemed to be of low significance if the recommended mitigation and enhancement measures are implemented. With the exception of in-migrant households that are expected to settle in the project area during the construction phase, it is only these that have been identified as being potentially worse off once project work opportunities decline. It is these remnant households, and not the local PAC, who will in all likelihood be left more vulnerable to the project’s boom and bust economic cycle.

The socio-economic benefits to the surrounding communities will provide economic opportunities and community development that will be welcomed by local communities. It is, however, essential that project-related activities continue to consider the cultures and traditions of the local communities and avoid or minimise impacts on community livelihood practices as far as reasonably possible. It is necessary to maintain engagement with local communities as well as with local and district authorities throughout the project phases to ensure that communities are aware of project related activities and the proponent is aware of any community grievances or concerns and can, where feasible, address these timeously and effectively.

Coastal & Environmental Services 56 Social Impact Assessment REFERENCES

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Coastal & Environmental Services 58 Social Impact Assessment ANNEXURE A: CES IMPACT RATING SCALE

Ranking of Evaluation Criteria Sco Temporal Scale re Short-term Less than 5 years 1 Medium-term Between 5-20 years 2 Long-term Between 20 and 40 years (a generation) and from a human perspective also permanent 3 Permanent Over 40 years and resulting in a permanent and lasting change that will always be there 4 Spatial Scale Localised At localised scale and a few hectares in extent 1

Study Area The proposed site and its immediate environs 2 Regional District and Provincial level 3 National Country 3

EFFECT International Internationally 4 Severity Severity* Benefit Slight impacts on the affected Slightly beneficial to the affected system(s) and Slight system(s) or party(ies) party(ies) 1 Moderate impacts on the affected Moderately beneficial to the affected system(s) Moderate system(s) or party(ies) and party(ies) 2 Severe/ Severe impacts on the affected A substantial benefit to the affected system(s) Beneficial system(s) or party(ies) and party(ies) 4 Very Severe/ Very severe change to the affected A very substantial benefit to the affected Beneficial system(s) or party(ies) system(s) and party(ies) 8

Likelihood Unlikely The likelihood of these impacts occurring is slight 1 May Occur The likelihood of these impacts occurring is possible 2 Probable The likelihood of these impacts occurring is probable 3

LIKELIHOOD Definite The likelihood is that this impact will definitely occur 4 * This refers to the impact’s intensity

Matrix used to determine the overall significance of the impact based upon the likelihood and effect of the impact

Effect 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 2 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Likelihood 3 6 7 8 9 10 11 12 13 14 15 16 17 18 19 4 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Description of socio-environmental significance ratings and associated range of scores* Significance Description Score An acceptable impact for which mitigation is desirable but not essential. The impact by itself is insufficient even in combination with other low impacts to prevent the development Low 4-8 being approved. These impacts will result in either positive or negative medium to short term effects on the social and/or natural environment. An important impact which requires mitigation. The impact is insufficient by itself to prevent the implementation of the project but which in conjunction with other impacts may prevent Moderate 9-12 its implementation. These impacts will usually result in either a positive or negative medium to long-term effect on the social and/or natural environment. A serious impact, which if not mitigated, may prevent the implementation of the project (if it is a negative impact). These impacts would be considered by society as constituting a High 13-16 major and usually a long-term change to the (natural &/or social) environment and result in severe effects or beneficial effects. A very serious impact which, if negative, may be sufficient by itself to prevent implementation of the project. The impact may result in permanent change. Very often Very High 17-20 these impacts are unmitigatable and usually result in very severe effects, or very beneficial effects.

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Cumulative Impacts Project-induced cumulative impacts should be considered, along with direct and indirect impacts, to better inform the applicant’s decision making and project development process. Cumulative impacts result from incremental changes caused by other past, present or reasonably foreseeable actions acting in concert with the project. Individually minor impacts from different developments can interact in various ways over time to become collectively significant. Barbour (2007: 39), adapting work by Cooper, 2004, describes cumulative impacts as impacts which may be:

 Additive: the simple sum of all the effects (e.g. the accumulation of ground water pollution from various developments over time leading to a decrease in the economic potential of the resource);  Synergistic: effects interact to produce a total effect greater than the sum of individual effects. These effects often happen as habitats or resources approach capacity (e.g. the accumulation of water, air and land degradation over time leading to a decrease in the economic potential of an area);  Time crowding: frequent, repetitive impacts on a particular resource at the same time (e.g. multiple boreholes decreasing the value of water resources);  Neutralizing: where effects may counteract each other to reduce the overall effect (e.g. infilling of a wetland for road construction, and creation of new wetlands for water treatment); and,  Space crowding: high spatial density of impacts on an ecosystem (e.g. rapid informal residential settlement).

Cumulative impacts are, however, difficult to accurately and confidently assess, owing to the high degree of uncertainty and assumptions made. It is therefore difficult to provide as detailed an assessment of cumulative impacts as compared to direct and indirect ones, usually because of the absence of specific details and information related to similar and different development proposals in the general study area that will contribute to the significance of these cumulative impacts.

Coastal & Environmental Services 60 Social Impact Assessment ANNEXURE B: ANALYTICAL FRAMEWORK 1. Sustainable Rural Livelihoods Approach The first approach used to conceptualise this SIA process is the Sustainable Rural Livelihoods Approach. According to Ian Scoones (1998), this approach asks the following question: “Given a particular context, what combination of livelihood resources result in the ability to follow what combination of livelihood strategies with what outcomes?” (ibid.: p.3). What differentiates this approach from many others is its focus on institutional process, which is why it is useful for this project in order to conceptualise the potential benefits of a particular development on the PAC livelihoods through these institutional changes. Inherent in this approach is obviously the term ‘livelihoods’. In practice, we normally use this term simply to describe activities which household members are involved in to make ‘ends meet’. One definition provided by Chambers and Conway (1992, cited by Scoones, 1998) is:

“A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks, maintain or enhance its capabilities and assets, while not undermining the natural resource base.” (ibid.: p.5)

According to Ellis (2000: p.10): “[…] a livelihood comprises the assets (natural, physical, human, financial and social capital), the activities, and the access to these (mediated by institutions and social relations) that together determine the living gained by the individual or household”. Scoones (1998) makes it explicit that this term remains subject to continuous negotiation, whilst it can be composed in a myriad of ways that are often complex, multiple and dynamic. A particular livelihood very much depends on access to different resources, institutional arrangements, power and politics. It also tends to steer away from studying an individual alone, as it considers individuals or groups of social actors and their relationships. An important aspect of the livelihoods approach is its focus on the ability of households to cope with, and adapt to, stresses and shocks. Households that are unable to cope (make temporary adjustments in response to change) or adapt (make longer term shifts in livelihood strategies) are vulnerable to trends and surprises over which they have little control. The approach assumes that rural people construct their livelihoods seeking to avert such risks by investing in multiple livelihood strategies, and by alternating between various combinations of assets (Scions, 1998).

The Five Elements of Livelihood: The approach identifies five key elements of the above-mentioned definition of livelihood. These include the following:

 The creation of working days;  Poverty reduction;  Well-being and capabilities;  Livelihood adaption, vulnerability and resilience; and  Natural resource base sustainability.

What can be seen from this list is that this approach can be grounded in theory, but also in the practical implementation of community development programmes. In illustration, to use the first element: Creation of working days. This element of ‘livelihoods’ relates to the ability of a livelihood strategy (whatever this might be at this point) to create meaningful employment for a particular time of the year. Scoones further defines three aspects (or types) of employment, namely income (wage-based employment), production (such as employment from a consumable output) and recognition, where it provides some kind of recognition for an individual of doing something worthwhile.

The second element, poverty reduction, is another reason why this approach can be grounded in practice. Ultimately, this element refers to existing poverty levels, which can be analytically measured by various indicators (which the survey instrument will indeed measure), such as income, expenditure, consumption and inequality levels. The third tier is well- being and capabilities. This tier is elaborated upon in more detail under the Human Wellbeing Approach (see Section 2 below). However, as an introduction, it provides a wider concept of the term livelihood why defining individuals and asking what individuals can do with their own entitlements. This tier is therefore narrower, and will allow the SIA to grasp how particular community intervention programmes would impact on individual entitlements. Such entitlement, according to Chambers (1989; quoted by Scoones, 1998) can include self-esteem, security, happiness, stress, vulnerability, power or social exclusion.

The fourth and fifth tier of Chambers and Conway’s (1992) definition of ‘livelihood’ is livelihood adaption, vulnerability and resilience as well as natural resource base sustainability. The former tier deals with how a livelihood copes with or manages stresses and shocks. Dealing with such events can either be through coping or adaption, whilst those who are unable to cope or adapt can be seen as vulnerable and unlikely to achieve a sustainable livelihood. Resilience, alternatively, takes various additional livelihood factors into account to understand how a livelihood becomes resilience. This might be the evaluation of a historical event, which evoked certain responses to shocks and stresses during this time. Lastly, conceptualising livelihoods through the natural resource base sustainable refers more to a natural system and its ability to maintain productivity amidst disturbing forces (whether this includes stresses and shocks).

Conceptualising Livelihoods by considering Capital Resources: Inherent in this approach is the interpretation of the term ‘capital’. In its various different forms, capital is understood by Scoones (1998) to assist people to pursue different livelihood strategies. For example, a capital investment through a community development programme, whether this is seed provision, skills, labour or even cash, all allow the growth and

Coastal & Environmental Services 61 Social Impact Assessment development of livelihood strategies. One way of seeing ‘capital’ is by viewing it as ‘livelihood resources’, allowing for people to construct their livelihoods. Theories of capital usually refer to its variety of forms. Scoones, for example, defines four different types of capital. These are natural capital, economic or financial capital, human capital and social capital and entail the following:

 Natural Capital: refers to the natural resource stocks, normally associated with earth, water and air. Often, this refers to environmental services, or the services that the natural environment provides.  Economic or Financial Capital: this can be seen as ‘hard’ capital, as it refers to cash, credit, saving or economic assets. It can also encapsulate basic infrastructure in a community, or equipment and technologies. The construction of a road, therefore, could be considered as an investment in economic capital - allowing the affected villagers to pursue livelihood strategies.  Human Capital: which is dealt with more comprehensively through the Human Well-Being Approach, represents skills, knowledge, or the ability to perform labour.  Social Capital: is the capital which is the most difficult to study and assess. It implies social networks, claims, relations, affiliation and/or associations. It is argued that people draw upon this capital in order to pursue their livelihood strategies.

Three Broad Livelihood Strategies: After having explained the term livelihood and the elements that are regularly used to define the term, the next section considers three broad livelihood strategies of rural people in the African context. Three clusters of livelihood strategies can be identified in rural settings, namely agricultural intensification/extensification, livelihood diversification, and/or migration. A. Agricultural Intensification/Extensification From the name itself, this livelihood strategy should be very familiar by reflecting on the fact that subsistence and/or commercial agricultural forms the backbone of many rural communities in Africa. In theory, this strategy is often seen as being driven by own labour and social resources (intensification), or capital-led investments (through external inputs or often policy). B. Livelihood Diversification The term ‘diversification’ is sometimes used in the social sciences to refer to people or households’ ability to move between different livelihood strategies and to adopt, alter or form new strategies. This livelihood strategy is aimed at coping or adapting when other options are failing to provide a livelihood. Diversification may involve many strategies employed by households in particular time periods, such as to develop a wider income-earning portfolio, or diversifying to a range of off- farm income-earning activities to put food on the table. As a practical example, formal employment can be used by rural households as a means to diversity their income-earning activities. With reference to the project at hand, one would assume it would also allow villagers to diversify their livelihood activities. C. Migration Lastly, any community is susceptible to population movement patterns in response to change, adaption or copying strategies. Migration can either be voluntary or involuntary. A lot of migration was experienced in the study area during the war years, for example, as villagers attempted to cope with and/or adapt to socio-environmental changes brought along by the war. More recently, the increase in mining and other economic activities in the district have resulted in ongoing migrancy, for employment as well as individuals from more crowded district settlements seeking alternative farmland.

Operational Considerations: The Sustainability Rural Livelihoods Approach can also be grounded in practice, as it provides operational considerations for project interventions. The approach suggests that, through a detailed consideration of livelihood resources and institutional processes, development interventions can identify multiple entry points. For example, communities can be supported by the provision of access to resources that would enable them to obtain needed capital resources to pursue a livelihood strategy, which might not have been available to them without such resources. The framework can be used to consider what and how community programmes can be developed and implemented. For example, should the objective of a particular programme be to create sustainable (alternative) livelihoods, options for intervention might include agricultural intensification and livelihood diversification. Local PAC respondents surveyed reveal that they do not tend to migrate to urban centres. With this consideration in mind, programmes could be considered to bridge the rural-urban linkages in the wider economy. This could include interventions aimed at providing more access routes, or assisting villagers to gain entrance into urban markets for selling their own agricultural produce.

2. Human Well-Being Approach Another approach used to conceptualise the data of the SIA was the Human Well-Being Approach. Human wellbeing includes some key aspects. For example, the Millennium Development Report defines this as:

“[…] The basic material for a good life, such as secure and adequate livelihoods, enough food at all times, shelter, clothing, and access to goods; health, including feeling well and having a healthy physical environment, such as clean air and access to clean water; good social relations, including social cohesion, mutual respect, and the ability to help others and provide for children; security, including secure access to natural and other resources, personal safety, and security from natural and human-made disasters; and freedom of choice and action.” (MA, 2003).

Human well-being is multifaceted, as it consists of multiple aspects. Such aspects do not operate in isolation, but are

Coastal & Environmental Services 62 Social Impact Assessment integrated, and must be understood in specific contexts. That is, the particular context in which people find themselves, impacts the various dimensions of human well-being. Because each of these dimensions is interconnected, the context can provide an enabling environment for the achievement of well-being and livelihood strategies, or an environment, which may limit or prevent the achievement of well-being.

Human well-being may be seen to arise from a combination of what a person, household or community has, what they can do with what they have, and how they think about what they have and can do (IDS, 2009). A focus on well-being therefore requires an investigation that goes beyond documenting household assets and physical or financial capital, and requires an understanding of the social context in which these resources are employed by households towards desired livelihood strategies and outcomes. It is also important to recognise that human well-being is dynamic. This dynamism relates to people’s ability - individually and through the institutions through which they relate to each other and to their surroundings - to respond and adapt to changing circumstances, and to maintain desired levels of social and ecological resilience in the face of sudden or more on-going changes and pressures. This approach to human well-being makes it clear that an over- reliance on the collection and analysis of baseline census data (such as demographic, cash income, expenditure and consumption data) by itself is insufficient, as this only provides for the analysis of a narrow conception of human wellbeing (what a person has).

3. Placing the Analytical Framework in Context It should be stressed that these two frameworks are not without limitations, but this analytical approach adopted by CES pays particular attention to the broader social context in which various kinds of capital can be mobilised by the PAC, how this allows for different choices and increased flexibility in the livelihood strategies adopted by them. Some focus has been placed on the role of social relationships in these livelihood strategies through an analysis of the project area’s institutional and social context, and assets of villages and households in the study area.

Various dynamics and drivers of change at local and macro levels interact with each other and with the dynamic local context. Given the potential for population movement and in-migrant influx into the project area, a diverse range of changes can be anticipated (and are likely to be accompanied by unanticipated change processes) as the project develops. In order to arrive at a comprehensive understanding of well-being, and its potential trajectory in the face of such impending changes, an analysis of the socio-economic conditions and current livelihoods adopted by communities has been necessary to understand how they will cope with project induced changes. The extent to which their well-being and livelihood strategies are maintained is significantly influenced by the interaction between the context in which people exist (a ‘wellbeing baseline’), and the change processes which impact on this context.

Coastal & Environmental Services 63 Social Impact Assessment ANNEXURE C: FGD & KII QUESTIONS

VILLAGE FOCUS GROUP DISCUSSION: GENERAL

1.1. When was this village established?

1.2 Is there a regular influx of people into this village during the year? (Elaborate)

1.3 In general, how have houses in this village been obtained?

1.4 Who makes decisions in this village?

1.5 Who normally makes decisions in households?

1.6 [Men] What do men normally do each day in this village? [Women] What do women normally do each day in this village?

1.7 What is the role of the youth in this village?

1.8 What is the role of the elderly in your village?

2.1. How would you describe the village members’ educational status?

2.2. What school do the children in this village attend and how do they get there?

2.3.1 Does this village suffer from crime etc.?

2.3.2 What do you do in cases of crimes and where do you go for help?

2.3.3 How do you think the project might affect your village’s safety?

2.4.1 What method of transport do you use in your village (costs involved to the nearest town)? Elaborate, costs involved for motorbikes, vehicles etc.

2.4.2 How would you describe the conditions of the roads?

2.4.3 How do you think the project could affect the conditions of the road?

2.5.1 Do households in this village engage in activities such as football, dances, sports, music etc.? (Elaborate)

2.5.2 How do you think the project could affect these recreational activities (how)?

2.5.3 Are there any important organisations/groups in this village that you think the project needs to interact with [elderly, secret society members, particular organisations etc.]?

3.1.1 What is the traditional land tenure system in the area (tribal land etc.)?

3.1.2 Who controls the land and the allocation thereof?

3.1.3 What is the government’s involvement in land allocation?

3.1.4 How can land currently be obtained?

3.1.5 Do you have any problems with land ownership in your area?

3.2.1 On average, how large are agricultural fields?

3.2.2 What produce are mainly farmed (excluding productive fruit trees)?

3.2.3 What do you do with your harvests (sell, eat or both etc.)?

3.2.4 If you sell your harvest, where do you sell it?

3.2.5 What are the most serious challenges with your agriculture?

3.2.6 Can you describe your agricultural harvests in the last year and have these changed in the past 5 years? In other words, has your agricultural practice improved in the last few years? More and improved yields etc.?

3.2.8. Do you think the mining project might affect your agricultural practice (how)?

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3.2.9. Can you describe your village’s food security (do people go to bed hungry)?

3.2.10 Has this situation changed in the last few years?

3.2.11 How will the project affect food security?

4.1.1 What method of energy do you use in your village?

4.1.2 If trees/charcoal, which trees are used and who collects the trees?

4.1.3. How many wells are there in this village, and how many households use each well (estimate)?

4.1.4. How many boreholes with hand pumps are there in this village, and how many households use each borehole and hand pump?

4.1.5. How would you describe the quality and reliability of the water?

4.1.6. How might the project affect your water sources? [Water pollution]

4.1.7. What sanitation facilities do you have in your village?

4.1.8 How many pit latrines are there in this village, and how many households use each latrine?

4.1.9. What would you consider to be the greatest need in your village (the most urgent services needed)?

4.2.1. Would you say that this village is dependent on the natural resources in the area (the dambos/rivers/wetlands etc.?

4.2.2. Has there been any changes to the natural resources in the last few years (why)?

4.2.3 How do you think the project might affect the natural resources?

4.2.4 Has the number of animals reduced in the last few years (why)?

4.2.5 How do you think the project might affect the animals in the area?

4.3.1 Generally, are any members in your village formally employed (i.e. receiving a salary) [if yes, type of employment, temporary/permanent]

4.3.2 Do you believe that the project will provide employment opportunities, and would people in your village be keen to work on the mine?

4.3.3 What are the largest income sources in your village?

4.3.4 Do households receive any other forms of income/support etc. [compensation]?

4.3.5 Which seasons bear the highest income trends and why?

Summer Autumn Winter Spring

4.3.6 What are the largest expenditure sources of your village?

4.3.7. Which seasons bear the highest expenditure trends and why?

Summer Autumn Winter Spring

4.3.8 Who normally manages the finances of the households?

5.2.1 Do members in your village practice polygamy?

5.2.2 What religions are practiced in your village?

5.2.3 Is there a mosque/church in you village?

5.2.4 Do you have a cemetery in your village, or do you bury the deceased in your backyards (how often do you visit this cemetery

5.2.5. Do men/women belong to any secret societies (name the societies)?

5.2.6. Do men/women belong to any secret societies (name the societies)?

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5.2.7. Do you have secret/sacred sites where you perform rituals for your secret societies (get GPS coordinates if possible)

5.2.8. Besides these secret societies, do you practise any cultural traditions?

5.2.9 How do you think the project might affect your traditions/secret societies?

6.1 Do you have any concerns regarding the mining project (elaborate)?

6.2 Do you have any expectations regarding the project?

6.3. What is your opinion about the project?

6.4. How do you think the project might impact your village and your livelihoods?

THANK YOU!

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FOCUS GROUP DISCUSSION: FARMING ONLY

1.1 On average, how large are agricultural fields (machambas)?

1.2 What conditions are looked at when searching for the right land for a machamba?

1.3 What produce are mainly farmed and during which months (excluding productive fruit trees)? What do you do with the harvests?

1.4 If you sell your harvest, where do you sell it?

1.5 Would you know how many kg/grams farmers normally harvest from one hectare for various crops?

1.6 Estimated prices for different harvests?

1.7 Let’s talk about general farming and how many days are required from land clearing to harvesting. Let us base this on a 1ha (soccer field) machamba, and let’s assume one man is farming.

1.8 What would farmers consider to be the most productive crop in this area in terms of harvests and income received?

1.9 Do you use labour from other households in farming? Can you describe the different arrangements through which this happens? For example, any work parties/ploughing arrangements, sharecropping, hired labour, etc.

1.10 How much would it cost to hire a farm worker for one day in this district?

1.11 What are the most serious challenges with your agriculture?

1.12 Can you describe your agricultural harvests in the last year and have these changed in the past 5 years? In other words, has your agricultural practice improved in the last few years? More and improved yields etc.?

1.13 Agricultural calendar

MONTH AGRICULTURAL ACTIVITY GENDER ROLES Jan Feb March April May June July August September October November December

1.14 Do you receive any agricultural support from any organisation? (Explain).

1.15. Do you think the mining project might affect your agricultural practices (how)?

1.16 Can you describe your village’s food security (do people go to bed hungry)?

1.17 Has this situation changed in the last few years?

1.18 How might the project affect your food security?

THANK YOU!

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KEY INFORMANT INTERVIEWS: SCHOOLS

1.1 Grades offered?

1.2 Number of pupils (girls and boys)

1.3 Number of classrooms

1.4 Increase/decrease in pupils in the last 5 years?

1.5 Number of teachers

1.6 Increase/decrease in teachers in last 5 years?

1.7 Challenges/problems

1.8 The project & how this would affect the school

1.9 Support needed

VILLAGE INFORMATION SHEET

VILLAGE NR OF MEN (including children) NR OF WOMEN (including children) NR OF FAMILIES NR OF CHURCHES NR OF MOSQUES NR OF BOREHOLES WITHOUT PUMPS NR OF WELLS WITH HAND PUMPS NR OF CONSTRUCTED PIT LATRINES CEL PHONE COVERAGE Yes No NR OF PRIMARY SCHOOLS NR OF CLINICS FISHING CENTRE Yes No (If yes) Regular influx of migrants/workers/traders etc. (open question) WEEKLY MARKETS Yes No (If yes) Regular influx of migrants/workers/traders etc. (open question) FOOTBALL FIELD Yes No FOOTBALL CLUB Yes No (If yes, elaborate) FARMERS’ ORGANISATION Yes No (If yes, elaborate) WOMEN’S ORGANISATION Yes No (If yes, elaborate) MEN’S ORGANISATION Yes No (If yes, elaborate) NR OF GRAVESITES

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