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Socio-Economic Impact Assessment - Final Vygenhoek Platinum Project, Mpumalanaga

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Socio-Economic Impact Assessment - Final Vygenhoek Platinum Project, Mpumalanaga SOCIO-ECONOMIC IMPACT ASSESSMENT - FINAL VYGENHOEK PLATINUM PROJECT, MPUMALANAGA February 2021 Prepared for: Environmental Management Assistance (Pty) Ltd P.O. Box 386 Sundra 2000 South Africa Envital Social and Environmental Consulting P.O. Box 2159, Westville, 3630 Tel: +27 72 259 8319 [email protected] www.envital.co.za EN2020009: Socio-Economic Impact Assessment: Vygenhoek Mine, Mpumalanga i This document should be cited as follows: Sanderson, D. (2020) Socio-economic Impact Assessment: Vygenhoek Mine, Mpumalanga. Envital Consulting, February 2021 __________________________ EN2020009: Socio-Economic Impact Assessment: Vygenhoek Mine, Mpumalanga ii EXECUTIVE SUMMARY Envital Consulting was appointed to undertake a Socio-Economic Impact Assessment (SIA) in support of the Environmental Impact Assessment (EIA) process for the development and operation of the Vygenhoek Platinum Mine in Mpumalanga (Proposed Project) by Nomamix (Pty) Ltd. The scope of the SIA was to determine the potential positive and negative impacts of the Proposed Project and alternatives on the local and regional socio-economic landscape. The study assessed the potential direct, indirect, and cumulative impacts (in relation to other activities), and how this may affect the current and future socio-economic environment. The approach to the study included the collection of primary data in the form of focus groups and observational data from within the study area, and a review of secondary information sources, including other specialist studies, previous reports, and socio-economic statistics and research. The study was undertaken over a two-month period and included all comments for scoping phase public participation. The aim of the Proposed Project is to develop a greenfield platinum group metals ore extraction operation on the outskirts of the Eastern Limb of the Bushveld Complex. The site is located in a remote farming area of north-western Mpumalanga, in the Thaba Chweu Local Municipality, on the border of Limpopo. The local landscape is dominated by agriculture and mining activities, with tourism and conservation activities in the broader area. Mining is a key economic activity for the local municipality, and provides substantial employment and revenue streams for government, businesses, and local communities. The anticipated socio-economic impacts are likely to vary from local to the regional level, as the macro- economic benefits are likely to be realised on a regional level, while most of the negative impacts are anticipated to be localised. The area of direct impact of the Proposed Project is anticipated to be primarily within the Farm Vygenhoek, with immediately surrounding farms receiving indirect impacts. The communities within the study area (local) comprise primarily low-income households, with marginal (subsistence) livelihoods. Low levels of skills and education, as well as limited access to urban centres, means that high unemployment is a key characteristic. These communities are dependent on natural resources for their livelihoods, including open veld for grazing and collection of firewood and medicinal plants, as well as local surface water resources. While the Vygenhoek Farm is currently under state ownership and the subject of land claims, the resident community established in the 1960s, possibly as farm tenants, and so is considered established, with informal rights to land ownership under the Interim Protection of Informal Land Rights Act. The key negative impacts, that are likely to affect the Vygenhoek Community and to a certain extend other neighbouring communities, include: Reduced access to livelihood resources – grazing land, firewood, medicinal herbs; Increased pressure on resources – influx of jobseekers and informal settlements; Increased community conflict – over employment and resources; Increased social pathologies – due to an influx of jobseekers and labour; Increased nuisance and disruption – from dust, noise, traffic and increased people and activities; and Indirect damage to/loss of assets – structural damage to houses, theft, conflict, and damage to crops. The trade-off for local communities is therefore the potential for positive economic impacts, which will assist with offsetting any losses and disruption, which also apply on a regional level, namely: Increased employment opportunities – directly and indirectly through the mine, contractors, and suppliers; and Increased local economic development opportunities – through local procurement and direct investment in community projects (rural agricultural hub project). EN2020009: Socio-Economic Impact Assessment: Vygenhoek Mine, Mpumalanga iii The Proposed Project is unlikely to improve the overall economic characteristics of the local communities, however, will have the potential to provide individuals and households with an increase in employment, income and improved socio-economic conditions. The No-Go Alternative is likely to maintain the status quo, which is currently low-income with no formal basic services and marginal subsistence livelihoods. No opportunities or investment would occur in the area, and these communities would not benefit from income and economic development in the local area. The key mitigation measures required include the following: Implementation of the Social Management Plan (provided in this study); Development of Community Plans (communications, complaints, health and safety); Maximising benefits, including the prioritisation of local employment and appointment of local service providers, and community development initiatives; Ensuring transparent, equitable and comprehensive engagement with local communities and other stakeholders throughout the Proposed Project life cycle. It is important to note that social impacts can be felt on an actual or perceptual level, and therefore it is not always possible, or at least straightforward, to measure the impacts in a quantitative manner. It should therefore not be assumed that indirect opportunities for business and employment are sufficient to acquire social license to operate in the host community. The structure and history of the local communities is such that unrest is likely to be an ongoing issue for the operations if stakeholders and communities are not properly engaged. The study determined that there are likely to be negative social and physical environmental impacts on the Vygenhoek Community (host community); however these can largely be mitigated or tolerated, and as a result are likely to be considered acceptable by the local communities as a trade-off for economic development and opportunities. It is the opinion of the specialist that the Proposed Project should be authorised within the context of the socio-economic assessment, as the Proposed Project is anticipated to be of economic benefit for the local area, as well as contributing to regional mining and economic development opportunities. Although the Proposed Project is not considered a major mining development (medium scale and extraction only), employment opportunities and the multiplier effect could improve the opportunities for currently unemployed individuals and low-income households within the local area. However, the manner in which the operations are carried out, must be done in line with best practice, including the Social and Labour Plan and the Social Management Plan. It is possible that not every eventuality of the potential socio-economic impacts have been detailed by this study, due to the complexity of socio- economic environment. It is, therefore, crucial that ongoing and transparent engagement and management of issues as they arise through the recommendations of the Social Management Plan is carried out. This is likely to ensure that the host community and other stakeholders remain in support of the Proposed Project, and that negative impacts on the host community are minimised and benefits are maximised. EN2020009: Socio-Economic Impact Assessment: Vygenhoek Mine, Mpumalanga iv CONTENTS SPECIALIST REPORT REQUIREMENTS ............................................................................ 1 1 INTRODUCTION ........................................................................................................... 2 1.1 Project Location ...................................................................................................... 2 1.2 Project Overview ..................................................................................................... 3 1.3 Project Alternatives ................................................................................................. 8 1.4 Terms of Reference ................................................................................................ 9 1.5 Specialist Details .................................................................................................... 9 2 METHODOLOGY ......................................................................................................... 14 2.1 Approach .............................................................................................................. 14 2.2 Data Collection ..................................................................................................... 14 2.3 Impact Assessment ............................................................................................... 15 2.4 Study Area ............................................................................................................ 19 2.5 Gaps, Limitations and Assumptions .....................................................................
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