SCOPING REPORT AND TERMS OF REFERENCE: Environmental and Social Impact Assessment Study of Surgold’s Merian Project in Suriname September 2011 Environmental Resources Management 1001 Connecticut Ave. N.W. Suite 1115 Washington, DC 20036 www.erm.com TABLE OF CONTENTS TABLE OF CONTENTS I LIST OF TABLES III LIST OF FIGURES III LIST OF APPENDICES III LIST OF ACRONYMS AND ABBREVIATIONS IV 1.0 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 PURPOSE 2 1.3 ESIA STUDY TEAM 2 2.0 PROJECT DESCRIPTION 6 2.1 PROJECT LOCATION 6 2.2 PORT AND TRANSPORTATION CORRIDOR 6 2.3 SITE GEOLOGY AND MINERALOGY 7 2.4 MINE SITE 8 3.0 LEGAL AND REGULATORY FRAMEWORK AND CORPORATE STANDARDS12 3.1 INTRODUCTION 12 3.2 LEGAL FRAMEWORK 12 3.3 REGULATORY FRAMEWORK IN SURINAME 24 3.4 INTERNATIONAL STANDARDS AND GUIDELINES 26 3.5 CORPORATE REQUIREMENTS AND GUIDELINES 29 4.0 THE ESIA PROCESS 31 4.1 SCREENING PHASE 33 ERM i SEPTEMBER 2011 4.2 SCOPING PHASE 33 4.3 IMPACT ASSESSMENT PHASE 34 4.4 THE DISCLOSURE PHASE 35 4.5 THE INTEGRATED ESIA APPROACH FOR THE MERIAN PROEJCT 35 5.0 PUBLIC CONSULTATION 38 5.1 AIMS AND OBJECTIVES OF THE PUBLIC CONSULTATION 39 5.2 DRAFT CONSULTATION PLAN 39 6.0 PRELIMINARY LIST OF ISSUES 42 7.0 ESIA SCOPE OF WORK 44 7.1 PROPOSED STUDIES 47 7.1.1 Environmental Specialist Studies 47 7.1.2 Socio-Economic and Human Health Specialist Studies 56 7.1.3 Other Desktop Studies to inform the ESIA 59 7.2 IMPACT ASSESSMENT METHODOLOGY 61 7.2.1 Steps of Impact Assessment 62 7.2.2 Why a System for Rating Impacts? 62 7.2.3 Criteria for Rating Impacts 63 7.2.4 Determining the Rating 66 7.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 67 8.0 PROJECT SCHEDULE 69 9.0 REFERENCES 70 ERM ii SEPTEMBER 2011 LIST OF TABLES Table 1-1 ESIA Core Team ............................................................... 2 Table 3-1. Legal Framework for National Environmental Management in Suriname ............................................................................................................. 16 Table 3-2. Environmental Management Responsibilities of Key Institutions in Suriname.................................................................................... 25 Table 3-3. International Agreements Relevant to Environmental and Social Issues in Suriname.......................................................................... 26 Table 5-1. Draft Consultation Plan - Merian Project ................... 40 Table 7-1. Severity Criteria (Negative Environmental Impacts)63 Table 7-2. Severity Criteria (Negative Social or Health Impacts) 64 Table 7-3. Enhancement Criteria (Positive Environnemental Effects) 65 Table 7-4. Enhancement Criteria (Positive Social and Health Impacts) 66 Table 7-5. Rating Matrix.................................................................. 67 Table 8-1. Merian Project ESIA Implementation Schedule ........ 69 LIST OF FIGURES Figure 1-1. Merian ESIA Project Team.............................................. 5 Figure 2-1. Merian Project Location and Transportation Corridor 7 Figure 2-2. Mine Site Major Components......................................... 9 Figure 2-3. Conceptual Process Flow Diagram – Merian Gold Project 10 Figure 4-1. The Suriname ESIA Process and the Merian Project 32 Figure 4-2. Impact Assessment Cycle ............................................. 37 Figure 7-1. Environmental Study Area........................................... 45 Figure 7-2. Social Study Area ........................................................... 46 LIST OF APPENDICES Appendix A ESIA Team Curriculum Vitas Appendix B Public Meeting Record Appendix C Notifications of Public Meetings Appendix D Public Meeting Materials ERM iii SEPTEMBER 2011 LIST OF ACRONYMS AND ABBREVIATIONS ARD Acid Rock Drainage ATM Ministry of Labor, Technological Development and Environment BBS National Herbarium of Suriname CCD Counter Current Decantation CITES Convention on the International Trade of Endangered Species of Wild Fauna and Flora CIL Carbon-in-Leach CSNR Central Suriname Nature Reserve DS Desktop Study EA Environmental Assessment EC Electric conductivity EHS Environmental Health Statement ERM Environmental Resources Management, Inc. ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan ESS Environmental Specialist Study FIV Family Importance Value GoS Government of Suriname ha hectares HIA Human Health Impact Assessment IFC International Finance Corporation IUCN International Union for Conservation of Nature and Natural Resources JV Joint Venture km Kilometers km2 Square kilometers LBB Dienst‘s LandsBosbeheer (Forest Service) LVV Ministerie van Landbouw, Veeteelt en Visserij (Ministry of Agriculture, Animal Husbandry and Fisheries) m Meters masl Meters above sea level MNH Ministerie van Natuurlijke Hulpbronne (Ministry of Natural Resources) Moz Million ounces Mtpa Million tonnes per annum MRD Ministry of Regional Development MW Megawatts ERM iv SEPTEMBER 2011 NAAQS National Ambient Air Quality Standard NCD Nature Conservation Division NEAP National Environmental Action Plan NGO Non-Governmental Organization NIMOS National Institute for Environment and Development in Suriname NMR National Council for the Environment NTFPs Non-Timber Forest Products PA Participatory Appraisal PRA Participatory Rural Appraisal PCDP Public Consultation and Disclosure Plan RAP Rapid Assessment Program RGB Ministry of Spatial Planning, Land and Forestry Management PRA Participatory Rural Appraisal RBA Rapid Biological Assessment RRE Restricted Range Endemic SBB Suriname Forest Control Foundation SCF Suriname Conservation Foundation SES Socio-economic Specialist Study SIA Social Impact Assessment STIs Sexually Transmitted Infections STINASU Stichting Natuurbehoud Suriname (Foundation for Nature Conservation in Suriname) ToR Scoping and Terms of Reference UNESCO United Nations Educational, Scientific and Cultural Organization UNFCC United Nations Framework Convention on Climate Change WAD Weak Acid Dissociation ERM v SEPTEMBER 2011 1.0 INTRODUCTION 1.1 BACKGROUND Suriname Gold Company, LLC (Surgold) is a limited liability company held by Newmont Overseas Exploration Limited and Alcoa World Alumina, LLC. Newmont is the manager of Surgold and Surgold holds the Merian Right of Exploration where the Project is located. Surgold began exploration at Merian in 2004 and in 2007 applied for a right of exploitation. The company is about to start negotiations with the State to complete the Mineral Agreement that will set the conditions for the granting of the right of exploitation. In accordance with the directives of the National Institute of Environment and Development (NIMOS) Surgold is required to prepare an Environmental and Social Impact Assessment (ESIA)i for which Surgold has commissioned Environmental Resources Management (ERM), an independent international environmental consultancy. This study will seek to identify, reduce or avoid negative impacts and promote positive impacts to the local communities and environment. The Merian Gold Project is located in the northeastern part of Suriname, approximately 66km south of Moengo. The proposed mine site will comprise three, possibly four, open pits, a processing plant, waste rock management facility and tailings management facility, fuel tank farm, power generation, water treatment facilities, maintenance facilities and offices and worker accommodations. Total yield of the project is estimated at 3.5 million ounces (Moz) of gold. Most construction materials and operational supplies (e.g., construction vehicles and reagents) will be imported via the Nieuwe Haven port in Paramaribo. Detailed Project description including the mine site, processing plant, port and transport corridor, as well as site mineralogy and geology are provided in Section 2.0. i The “social” component of the ESIA addresses both social and health impacts of the Project ERM 1 SEPTEMBER 2011 1.2 PURPOSE The purpose of this Scoping Report and Terms of Reference (ToR) is to set the objectives, define the scope, and establish the strategy and schedule to develop, review, and approve an ESIA for the construction and operation of Merian Project, as described above, at the Merian gold deposit in eastern Suriname. Surgold, as the proponent, is responsible for the preparation of the ESIA. The ESIA is needed to evaluate the environmental and socioeconomic impacts of project-related activities during the construction and operation of the Merian Project. Surgold, using the consulting firm ERM, will prepare the ESIA to assess the environmental and socioeconomic impacts of the projects. The following are the main objectives of the ToR document: • To identify key issues and concerns raised by stakeholders for consideration in the development of the ESIA study; and • To identify resource areas that have the potential to be impacted and environmental issues that may require further studies in the ESIA. More detailed technical descriptions of the specific baseline studies are included in a separate document. 1.3 ESIA STUDY TEAM The ESIA team is composed of a staff with extensive mining, natural resources assessment, and international ESIA experience combined with several well- qualified international and local experts in terrestrial and aquatic ecology, social issues, and geotechnical engineering. Table 1-1 identifies the key team members as well as the local environmental, social, and engineering experts. Curriculum vitas for these staff are attached in Appendix A. Table 1-1 ESIA Core Team Name Company Role and Specialty Years of Experience Education Study PROJECT MANAGEMENT