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i ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED DEVELOPMENT OF THE OKANJANDE GRAPHITE MINE AND EXPLORATION ACTIVITIES SPECIALIST STUDY: Socio-Economic Specialist Report PREPARED BY: Carla Saayman (Enviro Dynamics) DATE: August 2014 June 2014 ii COPYRIGHT: Environmental Impact Assessment for the proposed Okanjande PROJECT NAME graphite mine and exploration activities: Socio-Economic Specialist Report STAGE OF REPORT Draft Report for Client Review Gecko Graphite CLIENT P O Box 81307 Windhoek Namibia SPECIALIST CONSULTANT Carla Saayman DATE OF RELEASE Auguast 2014 Carla Saayman Eloise Carstens CONTRIBUTORS TO THE REPORT Eddy Kuliwoye (GIS Technician) Norman van Zyl (Quality Control) Quzette Bosman Tel: 061-223-336 CONTACT Fax: 061-307-437 [email protected] EIA for the Proposed Okanjande Graphite mine and exploration activities Socio-Economic Specialist Report August 2014 iii DECLARATION I hereby declare that I do: (a) have knowledge of and experience in conducting specialist assessments, including knowledge of the Environmental Management Act (Act 7 of 2007)and the Regulations and Guidelines that have relevance to the proposed activity; (b) perform the work relating to the application in an objective manner, even if this results in views and findings that are not favourable to the applicant; (c) comply with the abovementioned Act, its Regulations, Guidelines and other applicable laws. I also declare that there is, to my knowledge, no information in my possession that reasonably has or may have the potential of influencing – (i) any decision to be taken with respect to the application in terms of the Act and its Regulations; or (ii) the objectivity of this report, plan or document prepared in terms of the Act and its Regulations. Insert signature Carla Saayman Socio-Economic Practitioner EIA for the Proposed Okanjande Graphite mine and exploration activities Socio-Economic Specialist Report August 2014 iv Executiive Summary INTRODUCTION Gecko Graphite has recognised the high demand for quality graphite worldwide and has obtained the mineral rights over the Okanjande deposit. The promulgation of the Namibian Environmental Management Act (No. 7 of 2007) and its Regulations (2012) requires the updating of the environmental and feasibility studies conducted in 1991 by the previous licence holder. Consequently, Enviro Dynamics and a team of specialists have been appointed to update and expand on the previous environmental studies. This socio- economic specialist study forms part of the Environmental Impact Assessment (EIA) and contains the findings of the assessment of the potential impacts on the national, regional and local socio-economic environments. This report contains a description of the receiving socio-economic environments in which the proposed project takes place which includes an overview of the Namibian economy, the Otjozondjupa Region as well as the town of Otjiwarongo. Only aspects relevant to this project are provided which in turn assist in contextualizing the proposed development within the local area, the broader region and national economy. This forms the baseline against which key sensitivities and associated impacts have been identified and assessed. IMPACT ASSESSMENT A number of key positive impacts will result from this proposed project. These can be summarised as follow: Contribution to the national economy: the project will directly contribute to the national economy through taxes and royalties. The significance of this impact will be low. Contribution to the regional and local economies Foreign contractors will be required to employ Namibian labour for unskilled and semi-skilled work. In addition local services and goods are to be used for general provisions. However, the bulk of the equipment will be sourced elsewhere during the construction phase. During the operational phase, a large portion of the operational costs will be spent on employment. Secondary industries in Otjiwarongo and elsewhere in Namibia will benefit from sub-contracting, outsourcing, etc. Should the proposed measures be adhered to, its impact significance will increase from low to a medium. Job Creation: An estimated 400 jobs will be created during the construction phase. Should foreign construction workers be used, the impact significance will be low. This EIA for the Proposed Okanjande Graphite mine and exploration activities Socio-Economic Specialist Report August 2014 v can increase to a medium significance should locals be employed. About 73 workers will be employed the operational phase. Should qualified Namibians and local contractors be sourced as proposed, the impact significance will be medium, compared to a low significance should foreigners enjoy preference. With respect to negative impacts, the following have been identified: Influx to the town: As news spread of the development of this new mine, job seekers will be attracted to the town. Those from outside the town who have procured employment at the mine will also move to Otjiwarongo. This will result in increased pressure on especially housing, the education sector and infrastructure such as the sewerage system. The significance of this impact with mitigation measures will be low. Increased traffic: During the construction phase, the traffic between South Africa and Namibia, as well as Walvis Bay and Otjiwarongo will increase, having a low impact significance. Transportation of construction workers during this phase has been assessed to also have a low significance rating. Traffic volumes expected during the operational and decommissioning phase are not expected to contribute significantly to either traffic congestion or road surface degradation. Impacts on Surrounding Land Users: The neighboring farming and tourism activities are sensitive to changes in water and air quality, as well as poaching. Issues such as dust and the noise associated with blasting may impact on them. The conservation and preservation of groundwater resources is vital. This impact can be mitigated from a medium to a low significance. Contribution to the spreading of disease: The mobility of construction workers, the transport contractors as well as the shift workers can contribute to the spreading of disease such as HIV/AIDS. The significance of the impact can be mitigated from a medium to a medium low. CONCLUSIONS AND RECOMMENDATIONS It can be concluded that the positive impacts resulting from this proposed project will be greater than the negative ones, given that the proposed mitigation measures are adhered to. The following general recommendations for safeguarding the socio-economic environment are made: EIA for the Proposed Okanjande Graphite mine and exploration activities Socio-Economic Specialist Report August 2014 vi Adopt a ‘Locals First’ Policy. Foreign contractors should be required to employ Namibian labour for unskilled and semi-skilled work while direct employment, by the Mine, during the operational phase will source mainly Namibian Labour. The hierarchy of this employment to be followed required sourcing of labour primary from Otjiwarongo, then the region and then candidates at a national level. Skills transfer to Namibian Labour should be conducted and associated training accredited during the operational phase. Consider and implement the guidelines provided in the HIV Action Plan, Equal Opportunity Plan and Stakeholder Engagement Plan. Collaborate with regional and local authorities on issues such as influx of job seekers, HIV/AIDS, the need for housing and associated infrastructure and services prior to project implementation. A Corporate Social Responsibility project should be identified and supported. Location of the construction camp is to be negotiated with the Local Municipality to be established within townland and on previously disturbed land. Should no such area be available, additional negotiations of a suitable location with the Local Municipality is to consider adjacent land users and land owners. The provision of services are to be included as considerations in the above mentioned negations. Housing should be secured prior to operations. This can be done in consultation with local authorities and property agents in Otjiwarongo. Collaboration between the mine and the municipality regarding the existing sewerage system is recommended. Communication with the surrounding land users is of great importance, whether pertaining to blasting, security, changes in water quality or quantity, increased traffic or compensation. In general, the project will contribute to the Namibian economy and cumulatively, it will contribute to Namibia reaching its Vision 2030 goals. EIA for the Proposed Okanjande Graphite mine and exploration activities Socio-Economic Specialist Report August 2014 vii Tablle of Contents EXECUTIVE SUMMARY .................................................................................................................. IV TABLE OF CONTENTS .................................................................................................................. VII TABLES AND FIGURES ................................................................................................................... XI APPENDICES .................................................................................................................................. XIII GLOSSARY ...................................................................................................................................... XIV ABBREVIATIONS AND ACRONYMS ..........................................................................................XV

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