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Socio-Economic Baseline Study for Rössing Uranium’s Mine Expansion Project. 2007 Socio-Economic Component of the Social and Environmental Impact Assessment Report for the RÖSSING URANIUM MINE EXPANSION PROJECT Socio-Economic Baseline Study Marie Hoadley Social Impact Assessment +27 (0) 83 6579375 +264 (0) 81 3280409 [email protected] 1 Socio-Economic Baseline Study for Rössing Uranium’s Mine Expansion Project. 2007 EXECUTIVE SUMMARY Rössing Uranium (RU) commissioned a Socio-Economic Baseline Study as part of the socio- economic component of the integrated Social and Environmental Impact Assessment for the Company’s Mine Expansion Project. RU indicated that the Study should not focus solely on Arandis, but should also incorporate other communities of interest. This guidance, and a preliminary assessment, led to the identification of five communities: Arandis, Swakopmund and Walvis Bay, which already have strong economic ties with RU, and where the RU workforce resides; Usakos, which is to be considered in terms of its suitability for accommodating the workforce, and the Spitzkoppe/small-scale mining community. The latter was included because of its marginalised status in the centre of uranium mining activities, and because of the links it has with RU through the work of the Rössing Foundation. The two chapters dealing with the developmental context of RU from a national and regional perspective show that the mineral sector, especially in view of the increase in uranium mining, will be a major contributor to economic growth in the country and in the Erongo Region. Unemployment in Namibia is high, as are poverty levels in parts of the country, particularly in the rural and labour-sending areas. Mining has been a major employer in the Erongo Region, and is set to become even more significant in terms of development by the provision of livelihoods, training and support for local economies. Specific ministries have their own developmental mandates, and those that are relevant to this Study have been identified. These mandates indicate that there is a need for close co- operation between the minerals sector and its stakeholders in government to ensure that development agendas are aligned for maximum benefit to those sectors in the country and the region which need to be addressed if Namibia is to achieve its objectives as stated in Vision 2030 and to reach its Millennium Development Goals. In terms of education, social welfare and health services the region is regarded as being in a relatively favourable position. Erongo schools are regarded as of the best in the country, health services have been brought closer to the communities and the dependency ratio compares favourably with the rest of the country. However, the relative affluence of areas such as Swakopmund, Walvis Bay and Henties Bay masks the poverty and underdevelopment of rural areas and the fact that access to social services and resources are skewed in favour of urban areas. The Study foregrounds a number of concerns with regard to development in the Erongo Region. HIV/AIDS and TB are health aspects that pose a threat to community and regional well-being and development. The conditions that encourage the spread of these two diseases are poverty, poor living conditions and unemployment. To a significant extent these conditions are caused by the inflow of unemployed work seekers, lured by the possibility of employment in the fishing and mining sectors. Most of them find accommodation in informal settlements or backyard shacks. The key economic sectors in Erongo are the mining and fishing industries, and these two sectors are also the major employers. Industrial activity is limited and based on the fishing industry. The SME sector concentrates mainly on trade and services, and the manufacturing 2 Socio-Economic Baseline Study for Rössing Uranium’s Mine Expansion Project. 2007 sector is constrained by the unavailability of inputs, which cannot be sourced locally, and by the lack of a supporting service industry. As in the case of access to social services, there are communities in Erongo which, because of their isolation and underdevelopment, do not have access to the mainstream economy or to alternative livelihood opportunities. A number of these communities pursue agriculture and small-scale mining activities, but these are usually at subsistence level. Significant agricultural activity is not possible, due to the aridity and salinity of the soil and groundwater, and also to the shortage of the latter. Potential for agricultural development is believed to lie in the commercial exploitation of non-traditional, high value agricultural products. Tourism is an important component of the region’s economy, and is the basis of the prosperity of Swakopmund. Erongo hosts extensive protected areas and is rich in biodiversity of global significance. The expansion of uranium mining in the region has implications for the region’s water resources. Mines are huge consumers of water and this is one of the major concerns of stakeholders in mining projects. UraMin Namibia is constructing a desalination plant to the north of Wlotzkasbaken, but at the time of this Study it was not known what the benefits of this to private consumers and other economic sectors will be. Mining also poses a threat to the tourist industry, which contributes significantly to GDP and is regarded as a growth sector, both for the national economy and for the empowerment of rural communities. The effects of mining are already evident in a number of protected areas that give the region its unique attraction for tourists. Ecological systems and valuable biodiversity have already sustained significant and, in some cases, irreversible impacts. In the context of this study, the major role players in the region have been identified as the Erongo Regional Council, the Rössing Foundation, Rössing Uranium, the Chamber of Mines of Namibia and the group of other mining companies active or becoming active in Erongo. Each of these plays a major role in contributing to the developmental needs of the region. The section shows that mining companies such as Rössing Uranium have been major contributors to socio-economic development in the region. With the increase in the number of operating mining companies, the establishment of a Swakopmund office by the Chamber of Mines of Namibia will facilitate the aligned and co-ordinated development activities of its members. Five communities/groups have been identified as communities of interest for the purposes of this Study. Identification has been made on the basis of historical socio-economic links and the potential future interaction between Rössing Uranium and the communities. The Spitzkoppe/small-scale mining group has been included in this Study because of its significant underdevelopment and marginalisation in a region which has the potential for major developmental advances. This community exemplifies the extreme disparity between such remote rural communities and urban centres, which have better access to services and usually benefit directly from mining activities. Of the four towns, Swakopmund and Walvis Bay have the most diversified and established economies. Arandis’ economy is dependent on the mining sector, and Usakos has a small commercial economic base. All towns have, in common, a lack of accommodation, houses 3 Socio-Economic Baseline Study for Rössing Uranium’s Mine Expansion Project. 2007 and developed erven. Equally, they all have good access to major transport routes, energy and water. Arandis’ infrastructure problems are currently being addressed. The main centres of Swakopmund and Walvis have a critical lack of capacity in the number of new learners their schools can accommodate. Usakos schools have capacity, but its health facilities and town infrastructure would need considerable upgrading if expansion of the town occurs. Arandis, too, has classroom space, but inadequate state health services and support infrastructure for commercial development. The four towns experience similar social problems: poverty, unemployment and alcohol abuse. While specific significant health problems are not indicated for Arandis and Usakos, both Walvis Bay and Swakopmund have to deal with a high TB infection rate. Arandis does not have informal settlements or backyard shack dwellers, whereas these are major concerns in both Walvis Bay and Swakopmund. The community at Spitzkoppe, where the livelihood activities centre largely on small-scale mining, manifests all the negative aspects of the four towns, and few of the necessities which could serve as a base for socio-economic development. 4 Socio-Economic Baseline Study for Rössing Uranium’s Mine Expansion Project. 2007 Table of Contents EXECUTIVE SUMMARY..................................................................................................................................2 LIST OF FIGURES..............................................................................................................................................6 LIST OF TABLES................................................................................................................................................6 ABBREVIATIONS...............................................................................................................................................7 1 INTRODUCTION .......................................................................................................................................7 1.1 TERMS OF REFERENCE ...........................................................................................................................7

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