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Social Impact Assessment for the ISUA Iron Ore Project for London Mining Greenland A/S (In Compliance with the BMP Guidelines on SIA of November 2009) Final

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Social Impact Assessment for the ISUA Iron Ore Project for London Mining Greenland A/S (In Compliance with the BMP Guidelines on SIA of November 2009) Final Social Impact Assessment for the ISUA Iron Ore Project for London Mining Greenland A/S (in compliance with the BMP Guidelines on SIA of November 2009) Final March 2013 TABLE OF CONTENTS PAGE EXECUTIVE SUMMARY V 1 INTRODUCTION 1 1.1 Objectives and Process of a SIA 1 1.2 Study Area for the SIA of the Project 3 1.2.1 Areas of influence 3 1.2.2 Short description of the SIA study area 4 1.3 Acknowledgements 6 2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK RELATED TO THE SIA OF THE PROJECT 7 2.1 General political situation in Greenland 7 2.2 Legal Framework 7 2.2.1 Greenlandic legislation 7 2.2.2 Orders on Occupational Health and Safety relevant to the project 9 2.2.3 National guidelines relevant to the project 9 2.2.4 International Unions and Conventions 10 2.3 Act on Large Scale Projects 10 2.4 Taxes and Revenues 11 2.4.1 Concession fees 11 2.4.2 Tax regulation 11 2.5 SIA Guidelines 13 3 PROJECT DESCRIPTION 14 3.1 The ISUA Project 14 3.2 The ISUA project key components and infrastructures 15 3.3 Expected implementation schedule for the ISUA Project 19 3.4 Labour requirements for the Construction Phase and Operation Phase of the ISUA Project 20 3.4.1 Construction phase 20 3.4.2 Operation Phase 21 3.5 Transport of personnel 26 4 SIA METHODOLOGY 27 4.1 Baseline study 27 4.2 Data collection from secondary sources and research from primary sources 27 4.3 Impact Analysis Methodologies 29 4.4 Summary of the Economics of the Isua Project 33 5 SOCIAL AND ECONOMIC BASELINE CONDITIONS 36 5.1 Introduction 36 5.2 Demographic profile 37 5.2.1 Country profile 37 5.2.2 Ethnic composition 38 5.2.3 Languages spoken 39 5.2.4 Key Demographic indicators 40 5.2.5 Number of inhabitants 40 5.2.6 Age and gender distribution 41 5.2.7 Population statistics 43 5.2.8 Mortality and death rate 43 5.2.9 Fertility and life expectancy 43 5.2.10 Migration 44 5.3 Description of Society 46 5.3.1 Social and political organisations 46 5.3.2 Municipal Administration 49 5.3.3 Public Authorities covering the Danish Realm 51 5.3.4 Labor unions – civil society organisations 53 5.3.5 Labor Unions 55 5.3.6 NGOs 56 5.3.7 Employers’ organisations 56 5.3.8 Gender issues 56 5.4 Socio-economic conditions 57 5.4.1 Economy 57 5.5 Education 69 5.5.1 Primary School 70 5.5.2 Secondary Education 70 5.5.3 Further Education 70 5.5.4 Higher education in Nuuk 73 5.6 Physical Settings and infrastructure 73 5.6.1 Housing and accommodation 73 5.6.2 Communication 76 5.6.3 Transport facilities and infrastructure 76 5.6.4 Energy production 78 5.6.5 Water Supply 79 5.6.6 Waste Management 79 5.6.7 Other projects in the area 79 5.6.8 Development plans in the municipality and project area 80 5.7 Public Health 81 5.7.1 Health status 81 5.7.2 Health services 82 5.7.3 Social health and vulnerable groups 84 5.8 Cultural and Natural Values 86 5.8.1 Values and traditions of importance in the Greenlandic society 86 5.8.2 Religion 87 5.8.3 Relations of the Greenlandic people to the local, regional, national and international communities 87 5.8.4 Existing use of natural resources in Greenland 88 5.8.5 Local use of natural resources in the project area 90 5.8.6 Sites of historical and cultural importance in the project area 92 5.9 Qeqqata Kommunia 93 5.9.1 Introduction 93 5.9.2 Demographic and socioeconomic profile 94 5.9.3 School of Minerals and Petroleum in Sisimiut 97 5.9.4 ARTEK (Arctic Centre for Technology) 98 5.9.5 Kangerlussuaq airport 98 5.9.6 Maniitsoq 98 6 SOCIAL IMPACT ASSESSMENT 99 6.1 Economic environment 99 6.1.3 Local business and economy during Construction 115 6.1.4 Conflicts and Synergies with Other Economic Sectors 123 6.1.5 Traditional livelihood 127 6.2 Education and Training 133 6.2.1 Training skills development opportunities during construction 133 6.2.2 Training skills development opportunities during operations 134 6.2.3 Summary of Impacts on education and training during construction and operation 137 6.3 Public Services and development plans 139 6.3.1 Impacts on public services and development plans during construction 140 6.3.2 Impacts on public services and development plans during operations 141 6.3.3 Summary of impacts on public services and development plans during operation 143 6.4 Social Aspects 144 6.4.1 Demography and population changes during construction 145 6.4.2 Demographic changes during operation 146 6.4.3 Social conflict 148 6.4.4 Vulnerable groups 149 6.4.5 Resettlement impact 149 6.4.6 Assessment of potential criminality at the mining site 150 6.4.7 Summary of impacts on social aspects 151 6.5 Health 154 6.5.1 Occupational health and risk of accidents 154 6.5.2 Summary of Occupational Health, Hygiene & Safety (Construction & Operations) 155 6.5.3 Health Services 160 6.5.4 Public Health and quality of life 161 6.5.5 Environmental impacts 162 6.5.6 Summary of impacts on public health and quality of life 163 6.6 Cultural and natural values 165 6.6.1 Sites of monument or cultural importance 165 6.6.2 Access to natural areas perceived as important 166 6.7 Summary of anticipated impacts of the ISUA iron ore project 168 6.7.1 Key Benefits and Opportunities 169 6.7.2 Key Risks and Negative Impacts 169 6.7.3 Summary table 169 7 DRAFT IMPACT AND BENEFIT PLAN 171 8 DRAFT MONITORING PLAN AND DRAFT EVALUATION PLAN 186 9 STAKEHOLDERS CONSULTATIONS AND PARTICIPATION 191 9.1 Public Hearing process 191 10 REFERENCES 195 ANNEX 1: TERMS OF REFERENCE ANNEX 2: ANNEXES TO TERMS OF REFERENCE ANNEX 3: BASELINE APPENDICES ANNEX 4: PROJECT CONTRACT PACKAGES ANNEX 5: HS-ANALYSIS OF LOCAL USE STUDY ISUA ANNEX 6: CLOSURE CONCEPT FOR THE ISUA MINE ANNEX 7: ACCOMODATION PLANS London Mining ISUA SIA Page i of 233 SIA Report Changes made to SIA report between August 2012 and final submission, sorted after appearance in report. Responses to written comments from the public hearing are denoted with the Whitebook section/subsection number. Public hearing written SIA section Key words /subject description comment 1.2. 24.2 Correction of where to keep dogs made 2.1; 5.2 33.6 Clarification of citizens of Greenland 2.2 23.1 Additional regulations added 2.2 24.6 Rules on field work added 2.2 24.3 Correction of Danish translation of Maritime Safety Act No 882 made 2.2 24.4 Correction of reference to Act No 11 of 19 May 2003 made 2.2 24.5 Correction of Nature Protection Act made 2.2 33.7 Emergency of Management Act is added 4.3 13.17 Methodology section expanded 5. 13.18 Small comments and errors to the baseline conditions made (5.2.4;5.8.5) Figures on mortality and death rate updated as well as education section 5.2.8; 5.5 20.12 updated 5.3.2 18.0 Organisation diagram of Kommuneqarfik Sermersooq updated 5.3.2 24.8 List of work for KANUKOKA corrected 5.3.3 33.8 Public authorities added 5.5.4 24.9 Correction of Vocational educations institutions made 5.7.3.4 33.9 Section on Crime and violence amended 6.1.2.3 24.11 Proposed actions added 6.1.5.3 13.19 Coordination with KNAPK in development the IBA and monitoring plan added 6.1.3 17.9 Table 6-10 changed 6.2 23.3 Education for safety representatives on safety training added 6.3 33.10 Paragraphs on pressure on public services amended 6.3.1 33.12 Paragraph on authorities rescue ability added 6.5.2.7 20.13 Section on impact on health management updated 6.5.3 20.22 Sub-section on pressure on public health added 6.4.6 33.11 Section on potential crime at the site added 6.5 23.5 Requirements of employees clarified 6.5 23.4 Employers manual on hazardous materials 7. 23.6 Risk of accident due to lack of instruction added Clarification of term ‘no actions required’ has been changed to no mitigations 4.3 24.10 required and explained 6.7 20.20 Recommendation of monitoring of lifestyle added London Mining ISUA SIA Page ii of 233 SIA Report Public hearing 2 nd meeting 7 September 2012 on SIA SIA section (Question number from minutes Key words /subject description of meeting) 6.1.1 7, 17, 25, 29, 56, 64, 65 Description on the taxes issues added and clarified 2.3; 6.1.2.1; 11, 38 Large Scale Project Act added 6.4.1; 6.4.7 6.1.3.1 46, 61 Local and International tenders clarified (table 6-10 changed) 3.5; 6.4.1 54 Access to the mine clarified 5.8.6; Related to EIA – 11.2 Sites of historical and cultural important SIA section Reason for change Key words /subject description 6.1.1 Mistake in headlines Table 6-3.
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