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Teranga Development Strategy

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Teranga Development Strategy TERANGA DEVELOPMENT STRATEGY FEBRUARY 2014 PREPARED BY TABLE OF CONTENTS 1.0 INTRODUCTION 4 1.1 PURPOSE OF THE TDS 5 1.2 OUR PRIORITY OUTCOMES 7 1.3 OUR FOCUS AREA 8 1.4 MYTHODOLOGY 10 1.5 DOCUMENT STRUCTURE 14 2.0 OUR MINE OPERATION 15 2.1 THE SABODALA GOLD OPERATION 16 2.2 OUR FUTURE GROWTH 18 3.0 UNDERSTANDING OUR REGION 20 3.1 INTRODUCTION 21 3.2 GOVERNANCE 22 3.3 DEVELOPMENT PLANNING 27 3.4 AGRICULTURE AND LIVELIHOOD 31 3.5 EDUCATION 38 3.6 ENERGY AND INFRASTRUCTURE 46 3.7 TRANSPORTATION INFRASTRUCTURE 50 3.8 HEALTH, SAFETY AND SECURITY 53 3.9 WATER INFRASTRUCTURE 66 3.10 SANITATION INFRASTRUCTURE 70 3.11 HOUSING 72 3.12 ENVIRONMENT AND CONSERVATION 74 4.0 OUR VISION FOR OUR ROLE IN THE REGION 79 5.0 A SPATIAL STRUCTURE TO SUPPORT REGIONAL DEVELOPMENT 81 5.1 INTRODUCTION 82 5.2 THE GOLD DISTRICT CONCEPTUAL SPATIAL PLAN 87 2 6.0 OUR ACTIONS 92 6.1 INTRODUCTION 93 6.2 JOBS AND PEOPLE DEVELOPMENT 94 6.3 LAND ACQUISITION 102 6.4 PROCUREMENT 106 6.5 HEALTH, SAFETY AND SECURITY 110 6.6 MINE-RELATED INFRASTRUCTURE 116 6.7 WORKER HOUSING 119 6.8 COMMUNITY RELATIONS 121 6.9 MINE CLOSURE AND REHABILITATION 125 6.10 FINANCIAL PAYMENTS AND INVESTMENTS 129 LIST OF ACRONYMS 143 TERANGA DEVELOPMENT STRATEGY 3 SECTION 1 INTRODUCTION 4 1.1 PURPOSE OF THE TDS As the first gold mine in Senegal, Teranga has a unique opportunity to set the industry standard for socially responsible mining in the country. We believe that socially responsible mining means maximizing the economic and social development outcomes for the communities around our mine, as well as across Senegal. Mining responsibly and maximizing community development benefits do not happen by chance. They require a well-articulated, shared vision of the future that the company, communities and government want to achieve. They require extensive consultation between all three parties to ensure that each is informed about the other’s long-term plans and aspirations. They require a clear definition of everyone’s shared goals and the actions required to achieve those goals. Finally, they demand strong, long-term relationships based on clearly defined roles and responsibilities. This is what the Teranga Development Strategy (TDS) is seeking to achieve. Teranga embarked on the process of developing the TDS to achieve the following: ӹ understand the priorities and aspirations of the people, stakeholders and governments in our region, and what Teranga can do to help realize these; ӹ enshrine a culture of social responsibility across all of our departments, and ensure that our commitment to social responsibility informs all of our decision-making about how we operate our business; ӹ begin a dialogue and establish relationships and partnerships that will form the long-term basis for our involvement in supporting community development; and, ӹ ultimately, to position Teranga as a model of corporate social responsibility. The TDS is the culmination of an 18-month process of collaborative planning between Teranga and the communities, governments and stakeholders in the Regions of Kedougou and Tambacounda. The TDS sets out our long-term vision for our operations in Senegal and how we will orient our operations to maximize the benefits for the communities in our area of influence. It describes the role that we expect to play in regional development, and outlines the strategic actions that we think we need to take to achieve the development goals that have been expressed to us by the communities in which we operate. Our strategy is being shared publicly in order to communicate to all our current and potential future development partners Teranga’s The TDS sets out our development related plans and commitments. It is important to note, long-term vision for our however, that the TDS is not intended to replace Government’s own responsibilities for leading and steering development. For operations in Senegal, example, the TDS does not replace the need for Regional and how we will orient Development Plans (PRD) or Local Development Plans (PLD). our operations to Consequently, it has not been adopted by any Local or Regional maximize the benefits Council. PRDs and PLDs are the responsibility of their respective for the communities in governments, and they are the plans that will determine how growth our area of influence. and development will unfold in the region. The TDS is intended to TERANGA DEVELOPMENT STRATEGY 5 support those government-led plans by clearly articulating Teranga’s complementary development plans for our mining operations and how these can reinforce and enhance broader, government-led regional development. We are also sharing our strategy with potential implementing partners, including the Canadian International Development Agency and various non-governmental organizations, who we believe can help make our strategy a reality. 6 1.2 OUR PRIORITY OUTCOMES The TDS is focussed on delivering positive outcomes with respect to the following three priority areas. Priority #1: Sustainable Economic Growth There is a growing consensus that development efforts should focus on stimulating sustainable long- term economic growth at the national, regional and local levels. This, in turn, can generate the financial resources governments need to invest in their countries and communities. The actions in the TDS are intended to help deliver on the essential elements needed to achieve high rates of sustainable economic growth: ӹ infrastructure; ӹ human capital; ӹ equality of opportunity; ӹ sound environmental management; and ӹ accountable governments. Priority #2: Agriculture and Food Security Achieving food security is a significant and growing challenge in the developing world. People’s health and education and their ability to learn, work and thrive are seriously compromised if they do not have food security. Agriculture is also the largest economic sector in many developing countries. It is a significant generator of employment and can drive economic growth. Through the TDS, Teranga is helping to support the agricultural economy and build food security through sustainable agricultural development, capacity building, and contribution to publicly accessible research and knowledge related to agricultural practices. Priority #3: Youth Education and Training As a long term development partner in the region, Teranga sees its investments in the training and education of youth as one of its most important investments. The TDS will help achieve this goal through actions related to support for educational infrastructure, training and development as well as measures to improve health outcomes of youth, children and mothers. TERANGA DEVELOPMENT STRATEGY 7 1.3 OUR FOCUS AREA Teranga’s current and potential future operations and explorations extend across a portion of two administrative regions – Kedougou and Tambacounda. What we refer to as the “near-mine area” is the area of our day-to-day operations and the area of our greatest current impact. It comprises the communities that were identified as impacted or potentially impacted by mine construction or operations through the Environmental and Social Impact Assessment process. These communities warrant special attention. They are, and must remain, the primary focus of our efforts under the TDS. The near-mine area is not static. It can be expected to change as the contours of our operations shift over time. While our primary focus is on the near-mine area, the scope of the TDS is greater than that. Exploration permits – covering the area shown in purple on Figure 1 - give a rough idea of the full scope of our current exploration activities, and therefore our potential future mining activities. While exploration - and the discoveries it generates - are dynamic and difficult to predict, this zone of exploration provides a reasonable estimate of what the spatial extent of our activities will be 10, 15 and 25 years into the future. This zone, centred on the four Rural Communities of Sadatou (in Tambacounda Region), Sabodala, Khossanto and Missirah Sirimana (in Kedougou Region), and anchored by the Town of Kedougou, is what we term our “Focus Area” (represented as the shaded area on Figure 1). The TDS also draws on a wider understanding of the social, political and economic realities of the Regions of Kedougou and Tambacounda. Although the goals and actions set out in the TDS are based on detailed study and dialogue in our Focus Area, they are designed to be equally applicable to other Rural Communities in the Regions of Tambacounda and Kedougou into which our exploration and development activities may take us in the future. 8 FigureO 1:U FocusR FO AreaCU forS AtheR TerangaEA - ADevelopmentREA OF Strategy STUDY MALI Moussala Sadatou Sadatou Diabougou Sounkounkou Saiensoutou Galo Bransan Diakhling Sabodala Dalato Sabodala Khossanto Missirah Missirah Sirimana Simana Khossanto 0 6.5 13 19.5 26 km Saraya Bambadji Bemboue National Boundary Tomboronkoto MALI Our Mining License Area Our Exploration Permit Area Rural Communities Our Focus Area Sabodala Villages Sabodala Mine Site Saraya Bembou Kedougou GUINEA TERANGA DEVELOPMENT STRATEGY 9 1.4 METHODOLOGY To create the Teranga Development Strategy we engaged rePlan Inc., a Canadian consulting firm that specialises in the management of social risks, impacts and opportunities related to resource and infrastructure development projects. rePlan designed and led an 18-month planning process to: ӹ Understand the strengths, needs and opportunities of our Focus Area, including: • communities, residents and their economies and livelihoods
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