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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
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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
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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
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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:
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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.
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Tablle of Contents
EXECUTIVE SUMMARY ...... IV
TABLE OF CONTENTS ...... VII
TABLES AND FIGURES ...... XI
APPENDICES ...... XIII
GLOSSARY ...... XIV
ABBREVIATIONS AND ACRONYMS ...... XV
1 INTRODUCTION ...... 17
1.1 Background ...... 17
1.2 Specialist study leader ...... 17
1.3 Terms of Reference ...... 18
1.4 Methodology ...... 19
1.5 Assumptions and Limitations ...... 21
2 PROJECT DESCRIPTION ...... 22
2.1 Introduction ...... 22
2.2 Rationale ...... 22
2.3 Project Scope ...... 22
2.4 Project Locality ...... 22
2.5 Process Description ...... 24
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2.6 Workforce ...... 24
2.7 Operating hours ...... 25
2.8 Accommodation ...... 26
2.9 Transportation ...... 26
2.10 Security ...... 28
2.11 Economics ...... 28
3 LEGAL AND REGULATORY REQUIREMENTS ...... 30
3.1 Acts and Ordinances ...... 30
3.2 Namibian Commitment to International Standards and/or Guidelines ...... 32
3.3 Local, National and international Policies and Guidelines ...... 33
4 THE RECEIVING ENVIRONMENT ...... 34
4.1 Introduction ...... 34
4.2 Overview of Namibian Economy ...... 34 4.2.1 The Domestic Economy and Effect on the mining sector ...... 35
4.3 Overview of the Otjozondjupa Region ...... 36 4.3.1 Population, Growth and Settlement Patterns ...... 36 4.3.2 Livelihood Strategies and Unemployment...... 36 4.3.3 Economic environment and Land Use ...... 37
4.4 Overview of Otjiwarongo ...... 39 4.4.1 Population and Growth ...... 39 4.4.2 Housing and Development ...... 39 4.4.3 Infrastructure and Services ...... 41 4.4.4 Health Sector and Services ...... 42 4.4.5 Education Sector ...... 42 4.4.6 Economics and Unemployment ...... 42 4.4.7 Crime and Social Ills ...... 43 4.4.8 Community Projects ...... 43 4.4.9 Traffic ...... 44
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4.4.10 Surrounding Land Uses to the Okanjande Mine Project ...... 44
4.5 Summary of Key Sensitivities ...... 48
5 IMPACT ASSESSMENT ...... 52
5.1 Introduction ...... 52
5.2 Identification of Key Impacts ...... 52
5.3 Methodology Employed for the Impact Assessment ...... 55
5.4 Contribution to the Namibian Economy ...... 58 5.4.1 Discussion ...... 58 5.4.2 Enhancement ...... 59 5.4.3 Monitoring ...... 59 5.4.4 Summary ...... 60
5.5 Contribution to the Regional and Local Economy ...... 62 5.5.1 Discussion ...... 62 5.5.2 Enhancement ...... 63 5.5.3 Monitoring ...... 63 5.5.4 Summary ...... 64
5.6 Job Creation ...... 65 5.6.1 Discussion ...... 65 5.6.2 Enhancement ...... 66 5.6.3 Monitoring ...... 66 5.6.4 Summary ...... 68
5.7 Influx to the Town and Pressure on Services ...... 70 5.7.1 Discussion ...... 70 5.7.2 Mitigation ...... 72 5.7.3 Monitoring ...... 72 5.7.4 Summary ...... 74
5.8 Increased Traffic ...... 76 5.8.1 Discussion ...... 76 5.8.2 Mitigation ...... 77 5.8.3 Monitoring ...... 77 5.8.4 Summary ...... 78
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5.9 Impacts on Surrounding Land Uses...... 80 5.9.1 Discussion ...... 80 5.9.2 Mitigation ...... 80 5.9.3 Monitoring ...... 81 5.9.4 Summary ...... 82
5.10 Contribution to the spreading of Disease ...... 84 5.10.1 Discussion ...... 84 5.10.2 Mitigation ...... 84 5.10.3 Monitoring ...... 84 5.10.4 Summary ...... 85
6 IDENTIFICATION OF KEY IMPACTS ...... 87
7 CONCLUSIONS AND RECOMMENDATIONS ...... 89
8 REFERENCES ...... 90
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Tablles and Fiigures
TABLES
Table 1: Key Informant Interviews ...... 20
Table 2: Expected distribution of skills for employment during operations of the mine...... 25
Table 3: Operating hours of the mine and processing plant, and the associated shifts required. 25
Table 4: Number of Vehicles to be used during the construction period ...... 27
Table 5: Number of Vehicles to be used during the operational phase ...... 28
Table 6: Estimated corporate tax and royalties per annu, ...... 28
Table 7: Namibian Legislation ...... 30
Table 8: SADC protocols ...... 33
Table 9: Mining Sector contribution to Government Revenues (Chamber of Mines, 2012) .. 35
Table 10: Summary of the Main Sources of Income (NPC, 2012) ...... 37
Table 11: Existing and Required number of erven ...... 40
Table 12: Annual median house prices for the period 2008-2013 (Kalili, N, 2013) ...... 41
Table 13: Vulnerability Ratings ...... 48
Table 14: Summary of Key Socio-Economic Sensitivities ...... 48
Table 15: Summary of Key Socio-Economic Sensitivities to be investigated ...... 52
Table 16: Definitions of each of the criteria used to determine the significance of impacts 55
Table 17: Definitions of the various significance ratings ...... 57
Table 18: Contribution through corporate tax and royalties ...... 58
Table 19: Taxes and Royalties paid by other mines in Namibia during 2012 (Chamber of Mines, 2012) 59
Table 20: Impact Assessment of the Contribution to the Namibian Economy ...... 60
Table 21: Impact Assessment of the Contribution to the Regional and Local Economy ..... 64
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Table 22: Expected Skills Distribution during the operational phase...... 65
Table 23: Impact Assessment of Job Creation ...... 68
Table 24: Comparison of Off-site and on-site accommodation options for the construction phase 71
Table 25: Impact Assessment of Influx to the town ...... 74
Table 26: Impact Assessment of Increased Traffic ...... 78
Table 27: Impact Assessment of impacts on surrounding farming and tourism activities .... 82
Table 28: Impact Assessment for the contribution to the spreading of HIV/AIDS ...... 85
FIGURES
Figure 1: Project Locality ...... 23
Figure 2: Road access between Otjiwarongo and the mine site, including alternative routes to the railway station...... 27
Figure 3: Proximity of farms and homesteads to various the project components ...... 46
Figure 4: Surrounding land uses and proximity of schools to the project components ...... 47
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A ppendiices
APPENDIX DESCRIPTION
APPENDIX A Equal Opportunities Plan
APPENDIX B HIV Action Plan
APPENDIX C Stakeholder Engagement Plan
APPENDIX D Local, National and International Policies and Guidelines
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Gllossary
ASPECT DESCRIPTION
Drug provided to those infected with HIV to maximally suppress the HIV virus and Antiretroviral stop the progression of HIV disease.
It is a commonly used indicator of the economic health as it provides a Gross Domestic monetary value of all the finished goods and services produced within a Product country's borders in a specific time period. It includes all of private and public consumption, government outlays, investments and exports less imports.
Labour Force All persons of working age (15-60 years) who are employed or unemployed.
The number of years that an operation is planning to mine and treat ore, taken Life of Mine from the current mine plan.
Decommissioning This is the phase after operations have ceased, but prior to mine closure.
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A bbreviiatiions and A cronyms
DESCRIPTION
AIDS Acquired Immunodeficiency Syndrome
ARV Antiretroviral
ATM Automatic Teller Machines
CENORED Central North Regional Electricity Distributor cm³ Cubic centimetre
CBD Central Business Area
DOTS Directly Observed Treatment
EBIT Earnings before Interest and Tax
EPL Exclusive Prospecting Licence
ESIA Environmental and Social Impact Assessment
ESMS Environmental and Social Management System
FNB First National Bank
GDP Gross Domestic Product
GIS Geographic Information System
HIV Human Immunodeficiency Virus
ICU Intensive Care Unit
IFC International Finance Corporation
Km Kilometre kV Kilo Volt m³ Cubic metres
Ml Million litre
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MOHSS Ministry of Health and Social Services
MTC Mobile Telecommunications Limited
MW/H Mega Watts per hour
NGO Non Governmental Organisation
NIMT Namibian Institute for Mining and Technology
NPC National Planning Commission
TB Tuberculosis
TPA Tons per annum
TSF Tailings Storage Facilities
VCT Voluntary Testing and Counselling
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1 IIntroductiion
1 .1 B a c kg r o u nd
A feasibility study along with a number of environmental studies was undertaken in 1991 by Rössing Uranium Limited in order to assess the economic viability of a graphite mine near Otjiwarongo in the Okanjande area. The project was however suspended in 1993 and the area rehabilitated following the collapse of the graphite price on the world market. In recent years Gecko Graphite has however recognised the new high demand for quality graphite worldwide and has obtained the mineral rights over the Okanjande deposit.
Before production of graphite and any by-products may be undertaken, all environmental studies, as completed in 1993 are required to be upgraded as per the Namibian Environmental Management Act (No 7 of 2007) and its Regulations (2012) requires. 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 reports on the assessment of potential impacts on the national, regional and local socio-economic environments.
Hence, this report contains a description of the receiving socio-economic environments in which the proposed project will take place and 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 that 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 are identified and assessed.
1 .2 S p e c iia lliis t s tu d y lle a d e r
Carla Saayman has conducted a number of Socio-Economic Impact Assessments since the completion of her Master’s degree in Community Development (Department Sociology and Social Anthropology) at Stellenbosch University. These studies range from impact assessments at grass root level to high profile development projects, a number of which relates to the mining industry. Some of these have been done under the broad supervision of Norman van Zyl, who has experience in Project Management as well as Environmental and Social Impact Assessments. Mr. Van Zyl is also responsible for the quality control of this document.
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1 .3 T e r ms of R e f e r e nc e
The following terms of reference was provided to the consultant:
A comprehensive Socio-Economic Assessment should be conducted. Consultation with the Otjiwarongo authorities should be undertaken in order to establish availability of houses, community facilities and services. Socio-economic issues needing investigation in relation to a possible permanent workforce include:
Influx of job seekers during construction and the impact on demographics and social structures;
Employment and skills availability;
Availability of housing, schools and health care facilities;
Contribution to Gross Domestic Product (GDP);
Export earnings;
Contribution to local and national taxes;
Contribution to local, regional and national economy through forward and backward linkages;
Potential land use conflicts with local farmers;
Opportunity costs for other land users;
Traffic and related safety hazards; and
Communication infrastructure.
The terms of reference was augmented by adding the following issues which were identified during the public consultation phase of the EIA:
Potential reduction in property values of neighboring farms; and
Security issues associated with the accommodation of workers on site and general activities of the mine, including the effects of poaching.
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1 .4 M e t ho d ollog y
The purpose of a Socio-Economic Impact Assessment is to identify and assess potential impacts on the socio-economic environment. Measures are then identified which can enhance positive impacts and limit negative ones. This is congruent with the requirements of the International Finance Corporation (IFC) as set out in their Performance Standards and Guidance notes.
IFC Performance Standard 1 calls for an integrated assessment whereby social impacts, risks and opportunities related to a specific project are identified, followed by a management plan for these impacts during the project lifecycle. Performance Standards 2 to 8 makes provisions for the management of impacts. Impacts should be avoided, minimized and where necessary, compensated for or offset against risks and impacts on the affected workforce, communities and environment. The Equator Principles ask for such an impact assessment to be accurate, adequate and objective (Equator Principles, 2013). It should also comply with the legislation of the host country.
The Performance Standards and Equator Principles stipulate that all impacts should be managed through an Environmental and Social Management System (ESMS). The roles and responsibilities for the implementing of the ESMS should also be identified.
Taking the above into consideration, the following tools were employed in order to determine the potential risks and impacts, and mitigation or enhancement measures:
Mapping: A Geographic Information System (GIS) technician provided maps which assisted the consultant in visually identifying the surrounding land uses, as well as the proximity of the various affected parties to the various components of the proposed project.
Baseline Information: In order to assess potential risks and impacts, both quantitative and qualitative baseline data was obtained on Otjiwarongo, the Otjizondjupa Region and Namibian economy. This was done as follows:
o Literature review: Available literature was reviewed which included information on the Namibian economy and mining sector, the Preliminary Namibian Housing and Population Census of 2011 and historical data on Otjiwarongo. Environmental and Feasibility Reports conducted previously on the proposed project were also consulted. The applicable Namibian legislation, along with IFC guidelines was reviewed.
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o Key Informant Interviews: Interviews were conducted with some of the authorities in Otjiwarongo in order to establish relevant baseline data on the existing socio-economic conditions, while also identifying some concerns they have or challenges faced. Table 1 below lists the various people that were interviewed, whether in person or telephonically, the organizations they work for and their portfolios.
o Electronic and telephonic communication: Where additional information was needed, e-mails were sent to some of the interviewees who in some cases supplied the consultant with quantitative data. Additional information was also solicited through telephone conversations.
Table 1: Key Informant Interviews
INTERVIEWEE ORGANISATION PORTFOLIO DATE OF INTERVIEW
Town Engineer: Head 12 November 2013 Mr. Naude Slabbert Otjiwarongo Municipality of Department: 04 March 2014 Sewerage & Water
Senior Economic and Mr. John Hinda Otjiwarongo Municipality Community 13 November 2013 Development Officer
Owner of project Mr. Landsrath Farm Highlands 27 February 2013 property / farm land
Ms. Tanya Praetorius Portion of Farm Okanjande Owner/neighbour 27 February 2013
Ms. Rennie vd Merwe Portion of Farm Okanjande Owner 27 February 2013
Owner/of project Mr. Francois Praetorius Farm Osdam 27 February 2013 property/farm land
Risk identification: Socio-economic opportunities and risks identified in this report are based on the dialogue with stakeholders during the Public Participation Process of this EIA, and expert judgment.
Impact Assessment: The methodology for carrying out the impact assessment was provided by Enviro Dynamics as summarized in Section 5.3.
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Integrated Assessment: Some of the findings of the other specialist studies were incorporated into this report. This ensures an integration of impact assessments that will influence the socio-economic environment.
Mitigation and Enhancement Measures: Such measures were identified based lessons learned and professional experience. Monitoring measures and roles were also provided.
1 .5 As s u mp tiio ns a nd L iimiita tiions
A number of assumptions are made for this study which includes the following:
It is assumed that the project description provided is correct and sufficient at the time of writing this report.
All information received from the proponent is technically sound and implementable.
The workforce will be accommodated in Otjiwarongo during the operational phase. Both on-site and off-site (Otjiwarongo) accommodation options for the accommodation of the construction workers are considered in this report.
With respect to limitations, the following aspects are highlighted:
The latest socio-economic statistics come from the 2011 Population and Housing Census. However, the information released only contains the findings at a national and regional level, thus specifics for towns are not yet available. Where smaller studies were done covering the project area, the applicable data is used, although such data is sparse. Key Informant interviews were also used as a tool to augment the available information, but in many cases were qualitative. Nonetheless, this was deemed sufficient to establish a baseline against which potential impacts could be assessed.
Where updated information on the project description was not available, data from the previous environmental and feasibility studies on this specific project were used. This thus acts as an estimate only, since some of it may be outdated.
The financial feasibility study will only be completed at a later stage. Hence, the figures used in the this study are estimates only.
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2 Projject Descriiptiion
2 .1 I ntr od u c t iio n
This section of the report contains a description of the project components that relates to the socio-economic environment. A full project description can be viewed in the main EIA report.
2 .2 R a tiio na lle
Graphite is regarded as an essential commodity used in refractories, brake linings, foundry operations, lubricants, batteries, pencils, etc. The target markets for the products are South Africa, America and Europe.
During the second phase of the project it is envisaged to add value by upgrading a portion of the graphite concentrate to a high-purity product through a process of leaching. Other value adding possibilities include the manufacturing of semi-finished products like sheet and exfoliated graphite, expandable graphite, the production of specialized graphite size fractions etc.
2 .3 P r ojje c t S c op e
The scope of the proposed project includes the following:
The establishment of an open cast mine to a depth of 80 m.
The construction of a plant with an initial production rate of 10,000 tons graphite concentrate per annum which will be expanded to 20,000 as the project develops.
The establishment of a tailings facility for the disposal of wet or dry tailings.
The establishment of an infrastructure servitude for the construction of a road, pipeline and power line to the site.
Ancillary small-scale mining of calcrete and marble rock
2 .4 P r ojje c t L o c a lliit y
The Okanjande deposit is located 14 km south of Otjiwarongo in the Otjozondjupa Region. The deposit straddles the boundary of two privately owned farms – Highlands and Osdam (see Figure 1).
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Figure 1: Project Locality
Gecko has obtained the rights through Mining Claim (MC) 66249 and the mineral exploration rights through EPL 3037 and has recently also applied for the surrounding area with EPL 4717. Although the current project is located only on MC 66249 and EPL 3037, prospecting operations may be extended to the wider area as delineated by EPL4717 subject to approval by the Ministry of Mines of Energy.
Access to the mine site is provided from the B1 main road (Figure 2). Approximately 5 km south-east of Otjiwarongo, the former district road D2515 turns westward from the B1. As this is now a de-proclaimed private road, maintained by the local farming community, a guard stationed at its entrance controls access and utilization. Negotiations between the owners of the road and Gecko Graphite are currently underway to try and establish the modus operandi for the future mine to fit into the current system.
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From the old D2515, the access road and infrastructure corridor turns onto the Farm Osdam. It follows the boundary fence line with Okanjande for approximately 3 km before it cuts across the farm towards the mine site.
2 .5 P r oc e s s De s c r iip tiion
The Okanjande graphite reserve has been determined as 34 million tons at 5.14 % carbon as graphite. The projected life of mine is a minimum of 70 years. Gecko Graphite intends to extract the resource on the same or similar design basis as was proposed during the feasibility study of 1991.
The key components of the mining operation will be:
1. Extraction of ore from the mine pit;
2. Crushing and transfer of ore to the processing area;
3. Processing – milling, gravimetric separation and floatation;
4. Disposal of mine waste (tailings); and
5. Transfer of product to port.
Each of these components will require specific resources such as water, electricity and human resources. Differing outputs or risks will also be exerted such as dust, noise and acid mine draining.
2 .6 Wo r kf o r c e
During the construction phase of 14 to 18 months, 300 to 400 people will be employed during the peak period. Skilled contractors such as boilermakers and fitters will be procured. Mechanical, electrical, civil, process and control-and-instrumentation engineers will also be required. An estimated 10-25 % of the construction workforce will consist of locals from Otjiwarongo who will be employed for bricklaying, welding and fitting. At this stage, the client considers appointing a foreign construction team who specialises in the construction of mines over the shortest period possible. Should this option be implemented, local employment will only result from subcontracting of services such as transport, road maintenance, cleaning services, diesel supply, transportation etc.
An estimated 73 people will be required to manage and operate the mine during the operational phase. This excludes the mining personnel as this it anticipated to be contracted out (see Table 2).
The unskilled and semi-skilled workers will be sourced locally, which amounts to approximately 48 % of the operational workforce. Also, as many skilled personnel as possible
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will be sourced locally; the remainder will be recruited from elsewhere. It has been indicated that approximately N$ 17,252,285 will be spent on salaries annually.
Table 2: Expected distribution of skills for employment during operations of the mine.
OVERHEADS PROCESSING TOTAL
SEMI-SKILLED 11 24 35
SKILLED 7 24 31
MANAGEMENT 6 1 7
TOTAL 24 49 73
A number of services will be subcontracted such as employee transportation and mine & access road maintenance services. This however still has to be finalised.
2 .7 O p e r a tiin g ho u r s
The operating hours at the mine and processing plant are indicated below (Table 3). Shifts will start on a Monday morning at 06h00 and end on a Saturday morning at 06h00.
Table 3: Operating hours of the mine and processing plant, and the associated shifts required.
OPERATING HOURS SHIFTS
12 hour shifts, 6 days per CONSTRUCTION 14-18 months week
24 hours/day 3 x 8 hour shift, MINING 7 days/week 7 days per week
PROCESSING
Crushing, Milling, flotation, 24 hours/day 3 x 8 hour shifts, 5 days per Concentrate 5 days/week week dewatering, Tailings Disposal, Utilities
Weighing, bagging, 1 x 8 hour shift (daytime), 5 8 hours/day, 5 days/week Product Despatch days per week
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2 .8 Ac c o mm o d a tiio n
During normal operations at the mine the workers will be accommodated in Otjiwarongo and will be bussed to and from site. Senior personnel will travel by bakkies and/or double cabs. Each employee will get a housing allowance as part of their salary.
During the construction phase of the project two alternatives are considered regarding accommodation:
Option 1 is to accommodate workers in Otjiwarongo during the construction phase. This option depends on the availability of erven and the ability of services to accommodate the additional pressure.
Option 2 is to accommodate workers during the construction phase in a camp site at the mine. This option reduces the pressure put on the services in Otjiwarongo as well as the pressure on the private road but requires the installation of services on site. In addition it poses social concerns to the neighboring farmers.
The two alternatives are further investigated in this report.
2 .9 T r a ns p or t a tiion
Equipment and materials used during the construction phase will arrive per road on 10 to 40 ton superlinks (as well as bakkies and busses for small loads and labour). During peak construction over a six month period it is estimated that: 120 trucks will be used of which 96 will come from South Africa via Windhoek, and the remainder of 24 trucks will come from Walvis Bay. During operations, two trucks per day will dispatch the product from the site to TransNamib. Two options for road access through Otjiwarongo to the railway station are investigated.
During the construction phase most of the imported equipment will be shipped from international vendors via Durban to Johannesburg (South Africa) to Namibia. It is likely that very little equipment will be shipped directly to Walvis Bay. In contrast to this, most of the materials required for civil works, will be transported from Walvis Bay. It is expected that approximately 20 % of all traffic will come from Walvis Bay whereas 80 % will come via Windhoek during the construction phase. A breakdown of the number of vehicles that will be used during the construction period is provided in Table 4 below. While the trucks will come from South Africa and Walvis Bay, busses and bakkies will be used for transport between the site and Otjiwarongo.
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Figure 2: Road access between Otjiwarongo and the mine site, including alternative routes to the railway station.
Table 4: Number of Vehicles to be used during the construction period
CONSTRUCTION PERIOD:
FIRST 4 MONTHS SECOND 6 MONTHS THIRD 6 MONTHS LAST 2 MONTHS
TRUCKS 30 120 20 2
BUS 1 3 1 1
BAKKIES 2 10 10 10
BAKKIE 2 5 5 5 (MANAGEMENT)
During the operational phase workers will be housed in Otjiwarongo. Table 5 below gives an indication of the number of vehicles commuting per day/week between the town and back.
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Table 5: Number of Vehicles to be used during the operational phase
TRANSPORTED OPERATION VEHICLES TRANSPORTATION FREQUENCY COMMODITIES/MATERIALS
Trucks (25 ton) Reagents and consumables 3 trips per month
Tanker (32 ton) Reagents and consumables 2 tankers per month
Trucks (30 ton) Product dispatch 2 trips per day (4 trips both ways)
Busses Workers 3 trips per day
Bakkies Miscellaneous 11 trips per day
Tankers (30 ton) Diesel delivery for mobile fleet 2 trips per month
The workforce for the operations will be accommodated in Otjiwarongo. Some will be transported to and from the mine site with busses while other will commute with company vehicles such as bakkies. This is in line with requests from the neighbouring farm owners which call for utilizing of the D2515 road to exclude private vehicles transporting workers to the mine site. Workers will also be transported back to their towns of origin during their off-cycles. The transports services are likely to be subcontracted.
2 .1 0 S e c u r iity
A standard 2.4 m weld mesh security fence will be erected around the plant and entire mining area, including all the operational and waste facilities.
2 .1 1 Ec on omiic s
The proposed project will contribute to the Namibian economy through taxes and royalties paid. The table below provides an overview of the mine’s contribution for both the 10,000 tons per annum (tpa) and 20,000 tpa scenarios (Table 6). These figures are based on the latest average unit price for graphite of US$1,006.00 per ton. At an exchange rate of N$10 per US dollar, the average unit price translates to N$10,060.
The royalties will amount to 2 % of the product value, this is estimated to be N$202 per ton. The corporate tax is 37,5 % of the EBIT (Earnings Before Interest and Tax). The income, to be paid on N$125,792,430 i.e. N$47,172,161 pa or N$2,359/ton at 20 000 tpa.
Table 6: Estimated corporate tax and royalties per annu,
CONTRIBUTION 10,000 TPA 20,000TPA
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CORPORATE TAX N$20,238,390 N$47,172,161
ROYALTIES N$2,022,903 N$4.046,319
TOTAL N$22,261,293 N$51,218,480
Capital expenditure costs are dependent on detailed engineering which had not been compiled at the time of this assessment. As for operational expenditure, the price per ton is estimated at N$5,715 per ton for the 10,000 tpa scenario. As the tonnage increases, the operational costs decreases. Hence, the operational the costs are estimated N$4,822 per ton of product, excluding taxes, but including royalties for the 20,000 tpa scenario.
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3 Legall and Regullatory Requiirements
3 .1 Ac t s a nd O r d iina nc e s
The Namibian Environmental Management Act of 2007 recognises that an external specialist may be consulted or subcontracted during the Environmental Impact Assessment Process for the Assessment of soco economic impacts. In addition, he Constitution of Namibia provides for the Promotion of Welfare of the People, a stipulation that will also guide this specialist study. The table below provides a list of various additional acts and policies which have bearing on this project Table 7.
Table 7: Namibian Legislation
LEGISLATION/ GUIDELINE/ APPLICABLE CLAUSE/ POLICY COMMENTS POLICY
The State shall actively promote and maintain the welfare of the people by adopting policies that are aimed at maintaining ecosystems, essential The Constitution of Chapter 11 Article 95: Promotion of the ecological processes and the the Republic of Welfare of the People.\ biological diversity of Namibia. It Namibia further promotes the sustainable utilization of living natural resources basis for the benefit of all Namibians, both present and future.
It promotes labour relations conducive to economic growth,
Chapter 2: Fundamental Rights and stability and productivity by Protections promoting improved wages and conditions of employment, Labour Act, 11 of Chapter 3: Basic Conditions of advancing individuals who have 2007 Employment been disadvantaged in the past, Chapter 4: Health, Safety and Welfare of and regulating the conditions of Employees employment of all employees. It aims to ensure the health, safety and welfare of all employees at work.
Immigration Section 27(2)(b) provides that a the Foreigners may only be recruited for Control Act 7 of Immigration Selection Board may only jobs/positions created by this project
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LEGISLATION/ GUIDELINE/ APPLICABLE CLAUSE/ POLICY COMMENTS POLICY
1993 issue an Employment Permit if it is satisfied if such jobs/positions are exclusively that the occupation “is not or is not likely unique to the project, or are unlikely to be any… occupation in which a to be filled by Namibian citizens. sufficient number of persons are already engaged in Namibia”.
This policy addresses the issue of gender equality and promotes the National Gender Section 4.5 Gender, Trade and Economic empowerment of women. Policy Empowerment Institutions should strive for gender equality in their workforce.
This framework provides strategic Section 5: National Strategic policy, planning and implementation Framework for HIV 5.1 NSF Strategic Interventions guidance and leadership for the and AIDS Response 5.2 Treatment, Care and Support national HIV and AIDS multi-sectoral in Namibia 5.3 HIV Impact Mitigation response. This project should align 2010/11-2015/16 itself with this document and its 5.4 Response Management guidelines.
The client should ensure non- Namibian HIV/AIDS Section 16: Non-discrimination of those discrimination during the recruitment Charter of Rights living with HIV/AIDS and operational phases of the project of those living with HIV/AIDS.
It provides for the establishment of the Employment Equity Commission to redress, through appropriate affirmative action plans, the This act applies to every employer who employment conditions of previously Affirmative Action has under section 20 been identified as a disadvantage groups. Such a plan Act (Employment), relevant employer. includes the (a) identification and 29 of 1998 elimination of employment barriers (b) making reasonable efforts in the workplace to accommodate, people with disabilities, and (c) instituting positive measures to further
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LEGISLATION/ GUIDELINE/ APPLICABLE CLAUSE/ POLICY COMMENTS POLICY
the employment opportunities for persons in designated groups, i.e. previously disadvantaged, women and those with a disability.
3. (1) Subject to section 16, the functions of a traditional authority, in relation to the traditional community which it leads, shall be to promote peace and welfare amongst the member of that community, supervise and ensure the observance of The potential impact of the project the customary law of that community, on traditional communities in the supervise and ensure the observance of Traditional area needs to be investigated. the customary law of that community by Authorities Act, 25 its members, and in particular to – No traditional communities living in of 2000 the proposed project area have (a) uphold, promote, protect and been identified preserve the culture, language, tradition and traditional values of that traditional community;
(b) preserve and maintain the cultural sites, works of art and literary works of that traditional community.
3 .2 Na miib iia n C o mmiit me nt t o I nte r na tiion a ll S ta nd a r d s a n d /or G u iid e lliine s
Even though Namibian legislation does not make special reference to Socio-Economic Impact Assessments, guidelines are provided for some aspects of the socio-economic environment to which companies should also adhere. Namibia prescribes to certain SADC guidelines, which are summarised in the table below.
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Table 8: SADC protocols
LEGISLATION/ GUIDELINE/ APPLICABLE CLAUSE/ POLICY COMMENTS POLICY
The main goals are to stop the progress SADC HIV and AIDS The potential impact of the project of and begin to reverse the spread of HIV Strategic on both the spreading and limiting of and AIDS by 2015 as well as provide Framework 2010- HIV infections should be universal access to HIV and AIDS 2015 investigated. treatment for all those who need it.
The Protocol aims to provide for the empowerment of women, to eliminate SADC Protocol on discrimination and achieve gender Guidelines should be provided for Gender and equality by encouraging and the workplace in terms of gender Development harmonising the development and equality. (2008): implementation of gender responsive legislation, policies and programmes and projects.
3 .3 L oc a ll, Na tiio na ll a n d iint e r n a tiion a ll Polliic iie s a n d Gu iid e lliine s
This Socio-Economic Impact Assessment is guided by the Namibia Vision 2030 and National Development Plans, which gives effect to this vision. In addition, the study is also undertaken in line with best practice principles, guidelines and performance standards as outlined by the International Finance Corporation (IFC) for those wanting to qualify for financial assistance. These are presented in Appendix D.
These legislation pieces guide the Socio-Economic Impact Assessment. Recommendations are made to further ensure this project alignment with the requirements of the Constitution of Namibia and other local, as well as international legislation, specifically the IFC Performance Standards.
The next section outlines the key characteristics of the receiving socio-economic environment. This will be used to identify potential sensitivities.
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4 The Receiiviing Enviironment
4 .1 I ntr od u c t iio n
Since the proposed project is located within the Otjozondjupa Region, this section of the report provides an overview of the social and economic environment of this region, as well as that of Otjwarongo. In addition, key land use activities surrounding the proposed project locality are emphasised. All of this follows an overview of the Namibian economy.
4 .2 O v e r v iie w of N a miib iia n Ec o no my
The Namibian economy is one of moderate performance and growth, which has kept pace with regional trends. In 2013, the country’s Gross Domestic Product (GDP) amounted to approximately N$48.19 billion having grown at a rate of 4.1 % for that year (International Monetary Fund, 2014). This GDP growth rate is, however, lower than for 2012 during which it grew at an estimated rate of 4.6 % (Bank of Namibia, 2012). This decrease in growth can be attributed to a weaker global demand for exports and a global economic slowdown (International Monetary Fund, 2014).
Mining dominates Namibia's heavy industry, which is also the major export earning sector. In general, the mining sector saw a surge in mining productions in 2012 resulting from technical expansions and fewer disruptions during operations (Bank of Namibia, 2012). In 2012, the mining sector accounted for approximately 11.5 % of the GDP which is the highest since 2007 (Chamber of Mines, 2012). Also, this industry provides up to 50 % in export earnings (International Monetary Fund, 2014).
Namibia’s mining industry contributes “In 2012, the mining industry accounted for significantly to infrastructure and community 7,898 permanent employees, 474 development. Sustainable resource temporary employees and 5,176 exploitation and increased local down contractors” (Chamber of Mines, 2012) streaming to the benefit of the Namibian population generally are amongst Namibia’s objectives within the sector. Most of the large mines have been developed by large multi- national companies. This puts Namibia at risk of a “love-and-leave” attitude from concession holders if the Government does not implement and enforce strict compliance with environmental standards supporting sustainable development.
The lack of development of local downstream industries for mining to increase value addition, create employment and related ripple effects in the economy have been emphasised. Downstream industries presently comprise diamond cutting, copper smelting and zinc refining.
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Government earns an income from the mining sector by means of taxes, royalties and dividends. Contributions by the mining sector for the period 2008/2009 to 2011/2012 (Chamber of Mines, 2009 & 2012) are illustrated in Table 9.
Table 9: Mining Sector contribution to Government Revenues in N$ million (Chamber of Mines, 2012)
2008/09 2009/10 2010/11 2011/12 N$ MILLION ACTUAL ACTUAL ACTUAL ACTUAL
COMPANY TAXES
Mining companies 1,229.7 572.4 585.2 850.9
ROYALTIES
Mineral royalties 544.6 491.8 401.0 937.0
DIVIDENDS
All mining companies 33.6 108.5 67.6 615.2
Total revenue from mining 1,807.9 1,172.7 1,053.8 2,653.1
The inequality in income distribution in Namibia is large and unemployment is very high (estimated at 37 % in 2011) because of a dearth of skilled labour (NPC, 2012). More than half of the labour force is unskilled or semi skilled.
4.2.1 The Domestic Economy and Effect on the mining sector
Influenced by the global economic downturn, the Namibian economy is estimated to have contracted by approximately 1 %, brought about by a reduction in exports from the mining industry and fewer overseas tourists visiting the country. The average consumer price inflation rate increased from 5 % in 2011 to 6.5 % in 2012. This is mainly due to the rising price increases for food and transport (Bank of Namibia, 2012).
The effects of the world economic slowdown were transmitted to Namibia’s mining industry, which mostly exports to many of the world’s major economies. Unit prices of various minerals had fallen in comparison with previous years. This has resulted in severe cost cutting measures being introduced at many of the mines, especially in the uranium industry.
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4 .3 O v e r v iie w of the O tjjo zo nd jju p a R e g iio n
4.3.1 Population, Growth and Settlement Patterns
The population size of the Otjozondjupa Region has grown by 6.8 % over the last decade, increasing from 135,384 people in 2001, to 143,903 people in 2011 (National Planning Commision, 2012). There are slightly more males than females in this region with an estimated 51 % being male (National Planning Commision, 2012). The majority of the households, i.e. 63 %, are headed by males with an average size of 4.2 people per household.
The population density is estimated at 1.4 people per square kilometre, which is lower than the national average of 2.6 (National Planning Commision, 2012). This can be attributed to the number of large scale freehold land in the area.
Approximately 54 % of the population live in urban areas, whereas the remaining 46 % live in rural areas (National Planning Commision, 2012). A large portion of the Otjozondjupa constitutes communal land where communal farming activities take place. This includes the area formerly known as ‘Bushmanland’, where the San community resides. There are also a number of settlement farms in the area.
The region comprises of seven constituencies. The main urban centres include Grootfontein, Otavi and the town of Otjiwarongo. The latter is also the administrative capital of the region.
4.3.2 Livelihood Strategies and Unemployment
Of the labour force, i.e. those between the ages of 15 and 60 years, an estimated 37 % are unemployed, which is the same as the national average (National Planning Commision, 2012).
With regards to livelihood strategies, the majority of the households are dependent on wages and salaries as a form of income, while only 10 % have listed farming as their main income source. It should be noted that while the majority of the population reside in urban areas, many of the people also work on commercial farms in the region. Thus, some of the wages and salaries received are still related to the farming sector. Table 10 provides an overview of the main sources of income.
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Table 10: Summary of the Main Sources of Regional Income (NPC, 2012)
MAIN SOURCE OF INCOME PERCENTAGE
FARMING 10
WAGES AND SALARIES 60
CASH REMITTANCES 6
BUSINESS (NON-FARMING) 10
PENSION 1-
4.3.3 Economic environment and Land Use
The economic activities of the Otjozodjupa Region are dominated by agriculture, tourism and mining. Not only do these activities contribute to the job creation and the regional economy, but also to the Namibian economy at large. Farming occurs on both freehold and communal land.
4.3.3.1 Agriculture on Freehold Land
Agriculture on freehold land is dominated by livestock farming, mainly sheep and cattle for the Namibian meat market as well as for export. In addition, commercial rain-fed crop cultivation takes place at the Tsumeb-Otavi-Grootfontein triangle where maize is grown predominantly (Mendelsohn, et al., 2013). Few commercial farmers also produce a number of crops under irrigation.
4.3.3.2 Large and Small Scale Agriculture on Communal Land
According to Mendelsohn, et al (2013) an estimated 71% of Namibians live in rural areas and are likely to practice subsistence farming. As for the Otjozondjupa region, almost 40 % of the land use of this region constitutes communal land. Crops are cultivated while cattle and goats are also herded on these farms. The produce from communal farms are either used for personal consumption or sold at local markets, while livestock is seen as a form of capital investment, used for draught power, meat and milk production or to sell commercially.
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4.3.3.3 Tourism and Conservation
The Waterberg Plateau Park is the main tourist attraction and conservation area in the Otjozondjupa Region. This conservation area is approximately 405 km² in size, and protects a diverse group of flora and fauna.
The main road linking central Namibia to its northern regions runs through the Otjozondjupa region. Consequently, many tourists pass through this region en-route to destination such as the Epupa Falls in the Kunene Region, the Etosha National Park and Caprivi Region. A number of lodges, hunting farms and private conservation areas are found along this route in the Otjozondjupa Region.
4.3.3.4 Mining Activities
Apart from having the wealth of fauna and flora, the region also holds valuable minerals. This gave rise to a number of mines being established in the area, along with a continuous exploration for minerals. Mining activities in the region include:
Okarusu Fluorspar Mine: This open cast fluorspar mine is located approximately 48 km north of Otjiwarongo. This area has been mined since 1920 with an estimated life of mine until 2025 (Chamber of Mines, 2012). By the end of 2012, the mine employed 349 permanent employees, 28 temporary employees, 124 contractors and 5 expatriates. Some of the employees are accommodated on-site, while others reside in Otjiwarongo (Van Listen, 2014. Pers. Comm.). During the last two years, this mine encouraged its employees residing in the on-site hostels to move to Otjiwarongo by giving them housing allowances. While this mine did not pay any corporate tax during 2012, it paid N$3.8 million in royalties (Chamber of Mines, 2012). Ohorongo Cement (Pty) Ltd: This plant is located close to Otavi and commenced production in December 2010. In 2012, it employed 304 permanent employees, 7 temporary employees, but no contractors. Due to its proximity to the town of Otavi, the employees are housed in town. The company is also involved in community upliftment through their Ohorongo Otavi Community Trust. It indicated a loss of N$218.6million by the end of 2012, hence it did not pay any taxes or royalties (Chamber of Mines, 2012).
Another mine is currently being established in the region by the company B2Gold. It is located approximately 70 km north of Otjiwarongo en-route to Otavi. A mining licence was obtained in December 2012. Hence, the construction of the Otjikoto Gold Mine commenced in 2013 with a construction and development budget US$134.4 million for that year. It is anticipated that construction will be completed towards the fourth quarter of 2014, after which production will commence. This production will see a ramp up to full production in early 2015.
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During the peak construction phase, an estimated 600 people are employed. The majority of these people are accommodated at an on-site construction camp, northeast of the pit area. This area was chosen as it has developed water wells, access to electricity and sufficient space for the required camp facilities (B2Gold, 2013). The majority of the management will reside in Otjiwarongo during the operational phase, while the rest will be housed in Otavi (B2Gold, 2014).
As for traffic, the construction phase constitutes an increase in traffic by 10-20 heavy vehicles hauling materials on a daily basis between the site and Otjiwarongo. In addition, 4 bus roundtrips are made daily from Otavi and Otjiwarongo to the site (B2Gold, 2013).
Although only in the construction phase, this new mine has already started implementing some of its corporate social responsibility initiatives. For example, they have paid the tuition fees of pre-primary teachers receiving training and are sponsoring teachers for training in Mathematics, English and Science, as well as donating equipment for mining education and bursaries at the Namibian Institute of Mining Technology (NIMT) (The Namibian, 2013).
4 .4 O v e r v iie w of O tjjiiwa r ong o
4.4.1 Population and Growth
Otjiwarongo was established in 1892 and is considered one of the oldest towns in Otjiwarongo is an Otjiherero word Namibia (Otjiwarongo Municipality, 2013). meaning ‘pleasant place, or place Today, it has an estimated population of where fat cattle graze’ about 40,000 people. Excluding the effect of the new B2Gold mine and associated influx, the town has grown at a rate of 2.5 % per year (Slabbert, 2013. Pers. Comm.).
Over the last few years, the town has been faced with an influx of both job seekers and those who have procured employment opportunities in or near this town. This can be attributed to large developments in the area which includes the new N$49 million town centre development, the proposed brick-making factory as well as the B2Gold Otjikoto Gold Mine (Smit, 2012).
4.4.2 Housing and Development
Otjiwarongo has approximately 6,000 formal and 9,000 informal erven (Slabbert, 2013. Pers. Comm.). However, the Municipality of Otjiwarongo is currently faced with a large shortcoming, especially with residential erven for the low and middle income residents (see Table 11). Within the next two years, an additional 1,000 erven is required in the latter income areas in order to meet the increased demand. The approval for these erven has been lodged with the Surveyor General, but there are delays in approval due to a backlog at this
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office (Slabbert, 2013. Pers. Comm.). Of the eleven extensions submitted to the Surveyor General, approval for four of these extensions have now been granted. Each extension has on average between 150 and 300 erven. These extensions require further legal work, before those can be serviced and made available to the public.
Additional erven are also needed in the informal settlement areas. Between 30 to 40 requests have also been lodged with the municipality for the approval of industrial or business erven, the number available not being sufficient. However, 72 erven are now ready to be serviced by the municipality (Slabbert, 2014. Pers. Comm.).
Table 11: Existing and Required number of erven
NR OF ERVEN
EXISTING
FORMAL 6,000
INFORMAL 9,000 REQUIRED
MIDDLE AND LOW INCOME AREAS (NEEDED BY 2016) 1,000
INFORMAL AREAS 2,000
INDUSTRIAL AND BUSINESS 30-40 (72 erven ready to be serviced)
B2GOLD 120
In some areas within the town boundaries, erven cannot be made available due to the fact that the ground is low-lying and prone to flooding. In other cases, rivers incert the landscape. Other challenges faced by the municipality with regards to meeting the increased demand for erven and housing is the costs associated with the servicing of erven. Since such operations are expensive, funding has to be obtained to offset the expenses in order to sell the erven at market related prices, especially in the lower income areas (Slabbert, 2013. Pers. Comm.).
The planned future expansion of the town will be towards the east. Approximately 11,000 plots have been released by the municipality for development. However, this first needs to be approved by the Surveyor General before those can be serviced and sold. Future plans
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include the expansion of the southern town boundary to accommodate for an expected population growth.
As the town has grown over the last few years and has seen an increase in local development the demand for erven and properties has also increased. This increased demand in turn gave rise to a spike in housing prices. Since 2008, the average housing price in Otjiwarongo has increased from N$308,000 to N$585,000 in 2013 (Kalili, N, 2013). This reflects a price change of almost 90 % (Kalili, N, 2013). (See Table 12).
Table 12: Annual median house prices for the period 2008-2013 (Kalili, N, 2013)
2008 2009 2010 2011 2012 2013
OTJIWARONGO 308,000 300,000 352,800 398,000 544,00 585,000
Even though limited, the number of housing units available for rent exceed those available for sale. As the demand for rental units have increased over the last few years, so have the renting prices. Hence, affordability becomes an issue.
As of late the Municipality of Otjiwarongo has launched the Clay House Project aimed at providing low cost housing and sanitation needs. It hopes to construct 100 houses in formal areas and meet the need for lower income housing (Otjiwarongo Municipality, 2013).
4.4.3 Infrastructure and Services
The Municipality of Otjiwarongo is responsible for the provision of services such as water, sanitation and waste removal. Water is supplied by the Namibian water utility, NamWater, to the municipality who is then responsible for distribution to the town. The average monthly water consumption of the town amounts to 110-120 m³ (Slabbert, 2013. Pers. Comm.). Water prices have seen an increase in order to compensate for the spike in electricity costs since the distribution service was ceded to CENORED. Water is purchased for N$9.65 from NamWater and sold for N$20.00 per m³ to the community (Slabbert, 2013. Pers. Comm.). As the price for water increased, the demand decreased. Thus, there is currently no growth in monthly water consumption volumes, which is also a historical trend. Since 1998, the municipality has seen a decrease in water consumption. There are currently 21 boreholes from where water for the towns is sourced, with an additional five boreholes on standby. No pressures are currently experienced in terms of the available volumes of both water and electricity.
With regards to water provision services, the municipality has embarked on a process to upgrade water infrastructure in the informal settlement as well as formal areas. This is being
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done by increasing the number of water connections and installation of pre-paid water meters (Otjiwarongo Municipality, 2013).
The sewerage system infrastructure was upgraded and expanded in 2011, prior to this it functioned at 130 % of its capacity (Slabbert, 2013. Pers. Comm.). The system is currently running at 100 % capacity treating about 1,200-1,500 m³ of sewer daily (Slabbert, 2013. Pers. Comm.). Any increase in population will place the system under further pressure. Sewerage facilities are not provided to the informal settlement areas. Currently, a second treatment plant is being planned towards the south of the town to be implemented within the next 5-10 years (Slabbert, 2013. Pers. Comm.).
In terms of telecommunication, the main service providers are Telecom and MTC.
4.4.4 Health Sector and Services
A number of medical services are provided in Otjiwarongo. Amongst these are five general private practitioners, three pharmacies, a biokineticist and a State and Private hospital. This private hospital, Medicity, is equipped to handle the majority of the emergency and critical cases, and has an Intensive Care Unit (ICU) (Hinda, 2013. Pers. Comm.). Other medical services in town include four private dentist practices and two state dentists.
Since there are no clinics or health care centres in the informal area, the Multi-Purpose Centre provides treatment for HIV/AIDS. A good relationship has further been established with the Wellness Champions of the Chamber of Mines and Peer Educators from mining companies in the area with regards to the combating of HIV/AIDS (Hinda, 2013. Pers. Comm.).
4.4.5 Education Sector
Otjiwarongo currently has 5 primary schools, 6 secondary schools and 2 combined schools. In addition to these state schools, the town also has two private schools. This sector is faced with a number of challenges which include a shortage of qualified teachers as well as classrooms. There is also a shortage of schools in the informal settlement area. An influx of people to this area, bringing with their families, further adds to this problem.
4.4.6 Economics and Unemployment
As previously mentioned, agriculture is a key land-use activity in the region consisting of both commercial and communal farming. Consequently, the economics of the town, which is the capital of the Otjozondjupa Region, mainly revolves around agriculture as the majority of the businesses are related to this sector (Hinda, 2013. Pers. Comm.). Other key economic activities include the Pharmacy factor, the global polyemer and toilet factory as well as retail and petroleum (Hinda, 2013. Pers. Comm.).
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The new B2Gold Otjikoto Gold Mine is also expected to contribute to job creation. Apart from this, many of the executives from the mine will reside in Otjiwarongo, stimulating the local economy and down-stream industries (Smit, 2012).
The town has a relatively high unemployment rate estimated at 40 % (Nakale, 2012) (which is higher than the region which has a rate of 30%). A number of the unemployed people volunteer for community policing.
4.4.7 Crime and Social Ills
Otjiwarongo had been plagued by crime, especially burglaries in the residential areas. This gave rise to the establishment of a neighbourhood watch where local communities assisted the police in patrolling the area and reporting crimes resulting in a reduction of the crime level (Nakale, 2012). Other violations faced by the police are the organised crime on automatic teller machines (ATMs) and the theft of car contents particularly on the main street (Hinda, 2013. Pers. Comm.).
With respect to social ills, drug use has become a problem in the schools. Consequently, the police have done drug raids at the schools (Hinda, 2013. Pers. Comm.). Other substance abuse includes alcohol misuse, which is the primary cause of abuse, assault and rape cases (Hinda, 2013. Pers. Comm.).
4.4.8 Community Projects
In terms of sport and recreation, there are two sport fields: Paresis Sport Grounds located in the higher income area which also hosts the community town hall and Mukati Stadium located in the lower income areas which also has a community hall (Hinda, 2013. Pers. Comm.).
A number of non-profit non-governmental organisations (NGOs), are operational within the local community. This includes the following:
Kinder Sorg is assisting with the education of people in the lower income areas on topics such as substance abuse and other social ills.
Otjiwarongo Youth and Community Centre: the provision of social, educational and recreational services to the marginalized community is their objective. It focuses especially on youth activities and community development.
Otjiwarongo Community Development Project: This organization provides HIV/AIDS orphans in Otjiwarongo with meals, assists with homework and studies as well as recreational activities.
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4.4.9 Traffic
As previously mentioned, Otjiwarongo is located on a main transport route between Windhoek, the coast and northern towns. All traffic commuting through the town, mainly along Main Street in the Central-Business Area (CBD). Consequently, a high number of trucks pass through this area. However, there are no truck ports or parking areas (truck stops) along this route. Traffic circles have been introduced at the southern and northern entrances of the town. This poses yet another problem for heavy motor vehicles which sometimes cannot turn wide enough and thus go over the circle instead of around it.
Although The municipality is currently not equipped to construct modern roads to accommodate the high traffic volume they are considering the upgrade of Longs treet, to alleviate traffic congestions in the town. Residents along this route have, however, in the past complained about the noise resulting from heavy vehicle movement along this road. In order to limit this, the municipality removed some of the speed humps as this tends to add to noise pollution from vehicles.
4.4.10 Surrounding Land Uses to the Okanjande Mine Project
There are differing land uses surrounding the various components of the project. This section provides a short overview of these land uses around the main operations area as well as along the main routes to town.
As for farming, Figure 3 shows the surrounding farms and the proximity of the homesteads to the various project components. Various tourism establishments are also indicated.
Project Mining and Processing Facilities:
o Farms Osdam and Highlands: The proposed project is located on a portion of these two farms, with the greater portion falling on farm Osdam. The land has in the past been used for grazing and hunting. The both owners are receiving compensation for the portion of land for the project development needed by the client.
Activities on these two farms include farming (250 cattle on Highlands and 400 cattle, 200 sheep and 200 goats on Osdam), and hunting. The latter constitutes the main source of income for the farmers. Local and international hunters pay the farmers large sums to hunt kudu, oryx, hartebeest and warthogs (Praetorius, 2014. Pers. Comm.) (Landsrath, 2014. Pers. Comm.).
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o Other farms in the area include Okanjande, Okatjemunde, Goodhope, Pinnacles and Tweekoppies. Some of the farmers derive their income from hunting tourism and farming, whereas others, such as Okanjande, has a horses stud. There are about 30 horses on farm Okanjande which roams in camps, the size of which ranges between 300 and 500 hectares (Praetorius, 2014. Pers. Comm.). The two families farming on this farm have a cattle herd of approximately 200.
B1 Road into town to TransNamib:
o Through town along Main Street: This route runs through the CBD area and is surrounded by businesses, shops, residential erven, fuelling stations, restaurants and coffee shops, as well as medical facilities. Being the main road, it is a busy area used by the local community, tourist or visitors to the area or those passing through en-route to northern regions, including trucks.
o At the Southern entrance turn left at traffic circle and continue along Langstreet: this area is surrounded by residential erven as well as a school and its sport grounds.
The various components of the project are thus surrounded by land use activities such as farming and tourism, erven for residential and business purposes as well as schools. See Figure 4.
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Figure 3: Proximity of farms and homesteads to various the project components
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Figure 4: Surrounding land uses and proximity of schools to the project components
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4 .5 S u mma r y of K e y S e n s iitiiv iitiie s
Based on the baseline information provided above, a number of sensitive socio-economic features have been identified. Each were given a vulnerability rating based on the guidelines provided in Table 13. The vulnerability refers to the “susceptibility of an environmental feature to suffer harm or its inability to withstand the effects of a hostile environment before potential impacts are taken into account”.
Table 13: Vulnerability Ratings
VULNERABILITY CRITERIA RATING
The socio-economic feature will be negligibly affected by the potential impact LOW and has the ability to withstand negative effects without being adversely affected.
The socio-economic feature will be moderately susceptible to potential MEDIUM negative or positive impacts.
The socio-economic feature will be severely affected by the potential impact, HIGH whether positive or negative.
The key sensitivities are summarised in Table 14 below.
Table 14: Summary of Key Socio-Economic Sensitivities
COMPONENT SENSITIVITY VULNERABILITY POTENTIAL IMPACT
The proposed project will Payment of taxes and NAMIBIAN contribute to the Namibian royalties contributes to the Low ECONOMY economy through taxes GDP. and royalties paid.
The proposed project will Regional and local businesses contribute to the local and REGIONAL AND that deliver goods and regional economies Medium LOCAL ECONOMY services can be affected by through job creation and an increase in spending. spending on goods and services.
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COMPONENT SENSITIVITY VULNERABILITY POTENTIAL IMPACT
If employees are housed in Otjiwarongo during the There is currently a shortage of construction and erven and available housing. operational phases, it will HOUSING This matter is worsened by the High further add to the existing backlog experienced at the pressure on a lack of erven office of the Surveyor General. and housing. An influx of job seekers will also contribute to this pressure.
An influx of job seekers as Available services such as well as new construction sewerage and road and operational employees infrastructure, have reached will add to existing pressures EXISTING SERVICES full capacity. The schools on available services. The AND have already exceeded their Medium transport of employees and INFRASTRUCTURE capacity. Water infrastructure the product and materials in the informal areas are needed, will add to the insufficient in meeting the pressure on existing road existing demand. infrastructure.
The main road in town is An increase in traffic faced with traffic congestion. brought about by this The road to the mine site is a project can add to the TRAFFIC Low proclaimed private road and existing pressure on road is maintained by the farmers infrastructure or result in themselves. conflict.
The Otjozondjupa Region has A number of people can an unemployment rate of benefit from job creation in 37 % and Otjiwarongo 40 %. UNEMPLOYMENT Low both the construction and New job opportunities are operational phases of this needed to alleviate this project. problem.
The news of the INFLUX OF JOB Recent developments in the Medium SEEKERS development of a new area have contributed to an mine can contribute to the
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COMPONENT SENSITIVITY VULNERABILITY POTENTIAL IMPACT
influx of job seekers. existing trend of influx of job seekers to Otjiwarongo. This might be an issue especially during the implementation phase as the local infrastructure will not be able to handle the increased pressures. The informal settlement area is likely to expand.
A change in surrounding SURROUNDING LAND land uses and depreciation Change to existing land uses. Low USES of the value of property can result in conflict.
Construction and operational workers can Since cattle and wildlife are engage in illegal poaching important in sustaining the activities of cattle and CATTLE AND WILDLIFE economic activities of the Low to Medium wildlife. Nuisances such as farmers, it is sensitive to noise or dust can also change. impact on farming or hunting tourism activities.
An influx of job seekers and a mobile workforce of 300- Since Otjiwarongo has an 400 people during the HIV/AIDS prevalence rate of construction phase can HEALTH 25 % and is located on a key Medium contribute to the spreading transport node, it is sensitive to of disease. This will add to the spreading of disease. the pressures on health care facilities.
There is an existing problem of An influx of job seekers and drug and alcohol abuse, even an increased SOCIAL ILLS Low in some schools. Crime and unemployment can result in burglaries are also a problem. further aggravation of this
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COMPONENT SENSITIVITY VULNERABILITY POTENTIAL IMPACT
existing trend.
The key sensitivities identified will be assessed in the next section of this report. The baseline data provided will be used as a backdrop against which these impacts will be assessed.
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5 IImpact A ssessment
5 .1 I ntr od u c tiio n
This section of the report contains a list of the impacts to be assessed, the methodology used as well as the outcomes of the impact assessment. Enhancement and mitigation measures are identified along with monitoring actions.
5 .2 I d e ntiif iic a tiio n o f Ke y I mp a c ts
A number of key socio-economic sensitivities associated with this project were identified based on the terms of reference provided, the baseline information as well as concerns raised by the interested and affected parties. These are summarised in Table 15.
Table 15: Summary of Key Socio-Economic Sensitivities to be investigated
DOES IT NEED FURTHER ASSESSMENT OR CAN COMPONENT SENSITIVITY POTENTIAL IMPACT IT BE ADDRESED IN THE EMP?
Payment of taxes and The proposed project royalties contributes to the will contribute to the NAMIBIAN GDP. Namibian economy Impact Assessment ECONOMY through taxes and royalties paid.
The proposed project Regional and local will contribute to the businesses that deliver REGIONAL AND local and regional goods and services can Impact Assessment LOCAL ECONOMY economies through job be affected by an creation and spending increase in spending. on goods and services.
If employees are There is currently a housed in Otjiwarongo shortage of erven and during the construction available housing. This HOUSING and operational Impact Assessment matter is worsened by the phases, it will further backlog experienced at add to the existing the office of the Surveyor pressure on a lack of
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DOES IT NEED FURTHER ASSESSMENT OR CAN COMPONENT SENSITIVITY POTENTIAL IMPACT IT BE ADDRESED IN THE EMP?
General. erven and housing. An influx of job seekers will also contribute to this pressure.
An influx of job seekers and construction and Available services such as operational employees sewerage and road can add to existing infrastructure, have pressures on available reached full capacity. services, including EXISTING SERVICES The schools have already communication AND Impact Assessment exceeded their capacity. infrastructure. The INFRASTRUCTURE Water infrastructure in the transport of employees informal areas are and the product and insufficient in meeting the materials needed will existing demand. add to the pressure on existing road infrastructure.
The main road in town is An increase in traffic faced with traffic brought about by this congestion. The road to project can add to the TRAFFIC the mine site is a Impact Assessment existing pressure on proclaimed private road road infrastructure or and is maintained by the result in conflict. farmers themselves.
The Otjozondjupa Region A number of people has an unemployment can benefit from job rate of creation in both the UNEMPLOYMENT 37 % and Otjiwarongo 40 construction and Impact Assessment %. New job opportunities operational phases of are needed to alleviate this project, especially this problem. the unskilled or semi-
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DOES IT NEED FURTHER ASSESSMENT OR CAN COMPONENT SENSITIVITY POTENTIAL IMPACT IT BE ADDRESED IN THE EMP?
skilled.
The news of the development of a new mine can contribute to the existing trend of influx of job seekers to Otjiwarongo. This might Recent developments in be an issue especially INFLUX OF JOB the area have contributed during the Impact Assessment SEEKERS to an influx of job seekers. implementation phase as the local infrastructure will not be able to handle the increased pressures. The informal settlement area is likely to expand.
A change in surrounding land uses SURROUNDING LAND Change to existing land and depreciation of the Impact Assessment USES uses. value of property can result in conflict.
Construction and operational workers can Since cattle and wildlife engage in illegal are important in sustaining poaching activities of CATTLE AND WILDLIFE the economic activities of cattle and wildlife. Impact Assessment the farmers, it is sensitive to Nuisances such as noise change. or dust can also impact on farming or hunting tourism activities.
Since Otjiwarongo has an An influx of job seekers HEALTH Impact Assessment HIV/AIDS prevalence rate and a mobile workforce
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DOES IT NEED FURTHER ASSESSMENT OR CAN COMPONENT SENSITIVITY POTENTIAL IMPACT IT BE ADDRESED IN THE EMP?
of 25 % and is located on of 300-400 people a key transport node, it is during the construction sensitive to the spreading phase can contribute to of disease. the spreading of disease. This will add to the pressures on health care facilities.
There is an existing An influx of job seekers problem of drug and and an increased alcohol abuse, even in unemployment can SOCIAL ILLS Impact Assessment some schools. Crime and result in further burglaries are also a aggravation of this problem. existing trend.
5 .3 M e t ho d ollog y Emp llo ye d f or the I mp a c t As s e s s me n t
The following methods were used by this specialists to determine the significance rating of impacts identified:
Table 16: Definitions of each of the criteria used to determine the significance of impacts
DESCRIPTION
Reviews the type of effect the proposed activity will have on the relevant NATURE component of the environment and includes “what will be affected and how?”
Geographic area. Indicates whether the impact will be within a limited area (on site where construction is to take place); local (limited to within EXTENT 25km of the area); regional (limited to ~200km radius); national (limited to the borders of Namibia); or international (extending beyond Namibia’s borders).
DURATION Whether the impact will be temporary (during construction only), short term
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DESCRIPTION
(1-5 years), medium term (5-10 years), long term (longer than 10 years, but will cease after operation) or permanent.
Refers to the magnitude of the impact described as either: none (no impact); low (where natural/ social environmental functions and processes are negligibly affected); medium (where the environment continues to function but in a noticeably modified manner); or high (where INTENSITY environmental functions and processes are altered such that they temporarily or permanently cease and/or exceed legal standards/requirements,. In the event of a positive impact, significant value to the socio-economic environment is provided..
Considers the likelihood of the impact occurring and is described as uncertain, improbable (low likelihood), probable (distinct possibility), highly PROBABILITY probable (most likely) or definite (impact will occur regardless of prevention measures).
Significance is given before and after enhancement or mitigation. Low, if the impact will not have an influence on the decision or require to be significantly accommodated in the project design, Medium, if the impact could have an influence on the environment which will require SIGNIFICANCE modification of the project design or alternative enhancement or mitigation. High, where it could have a “no-go” implication regardless of any possible mitigation, or when it will significantly add or result in a positive impact.
A statement of whether the impact is positive (a benefit), negative (a cost), STATUS OF THE IMPACT or neutral. Indicate in each case who is likely to benefit and who is likely to bear the costs of each impact.
DEGREE OF CONFIDENCE IN Is based on the availability of specialist knowledge and other information. PREDICTIONS
The application of the above criteria to determine the significance of potential impacts uses a balanced combination of duration, extent, and intensity, modified by probability, cumulative effects, and confidence. Significance is described in the table below:
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Table 17: Definitions of the various significance ratings
SIGNIFICANCE RATING CRITERIA
Where the impact will have a negligible influence on the environment and no modifications or mitigations are necessary for the given development description. In the event of a positive impact, enhancement measures LOW can be identified to increase the significance. ‘Low’ would be allocated to impacts of any severity/ magnitude, if at a local scale/ extent and of temporary duration/time.
Where the impact could have an influence on the environment, which will require modification of the development design and/or alternative MEDIUM mitigation. Enhancement measures can be identified for positive impacts. This would be allocated to impacts of moderate severity/magnitude, locally to regionally, and in the short term.
Where the impact could have a significant influence on the environment and, in the event of a negative impact the activity(ies) causing it, should not be permitted (i.e. there could be a ‘no-go’ implication for the HIGH development, regardless of any possible mitigation). This would be allocated to impacts of high magnitude, locally for longer than a month, and/or of high magnitude regionally and beyond.
Furthermore,
Impacts are described both before and after the proposed mitigation and management measures have been implemented;
Where possible the impact evaluation takes into consideration the cumulative effects associated with this project. Cumulative impacts can occur from the collective impacts of individual minor actions over a period of time and can include both direct and indirect impacts;
Mitigation / management actions: Where negative impacts were identified, the specialists specifies practical mitigation measures (i.e. ways of avoiding or reducing negative impacts);
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Monitoring (forms part of mitigation): Specialists recommend monitoring requirements to assess the effectiveness of mitigation actions, indicating what actions are required, the timing and frequency thereof; and
Reference should be made to the IFC Performance Standards and Guidelines throughout the assessment ensuring that the study complies with the set requirements.
5 .4 C on tr iib u t iion to the Na miib iia n Ec ono m y
5.4.1 Discussion
The proposed project will contribute to the Namibian economy through taxes and royalties paid. The table below provides an overview of the mine’s contribution for both the 10,000 tons per annum (tpa) and 20,000 tpa scenarios (Table 18). These figures are based on the latest average unit price for graphite of US$1,078 per ton. At an exchange rate of N$10 per US dollar, the average unit price translates to approximately N$11,322.
The royalties will amount 2 % of the product value, this is estimated to be N$202 per ton. The corporate tax is 37,5 % of the EBIT . For this project, the EBIT is calculated as follows: If the cost of production (N$96,440,070 pa) is subtracted from the income, tax needs to be paid on N$125,792,430 i.e. N$47,172,161 pa or N$2,359/ton at 20 000 tpa.
Table 18: Contribution through corporate tax and royalties
CORPORATE TAX ROYALTIES TOTAL
10,000 TPA N$20,238,390 N$2,022,903 N$22,261,293
20,000 TPA N$47,172,161 N$4,046,319 N$51,218,480
Taking into consideration the contribution of other mines in Namibia, the taxes and royalties paid by Okanjande mine during the operational phases will be of low significance, maximising at a 20,000 tpa production rate (Table 19). The mine will further contribute through its capital expenditure, especially during the construction phase, as well as through its operational expenditure costs. Since the majority of the equipment for this project will be sourced from beyond the Namibian borders, only about 5 -10% of the capital expenditure estimated at N$75,000,000 will be spend in the Namibian economy. This will be on goods and services including transport. Should a foreign contractor be used during the construction
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This will not only contribute to the national economy, but also to the regional and local economies.
Table 19: Taxes and Royalties paid by other mines in Namibia during 2012 (Chamber of Mines, 2012)
MINE CORPORATE TAX (N$) ROYALTIES TOTAL
OKARUSO FLUORSPAR nil 3.8 million 3.8 million MINE
NAVACHAB 99.5 million 29.4 million 128.9 million GOLD MINE
WEATHERLY nil 10.7 million 10.7 million MINING
RÖSSING Nil 110 million 110 million URANIUM
RPZC 99.6million 20 million 119.6 million
5.4.2 Enhancement
All phases: Draft tenders and Contractors Agreements to ensure that contractors employ Namibian nationals as part of the unskilled and semi-skilled workforce; and
All Phases – Source goods and services locally.
5.4.3 Monitoring
The contribution of the Okanjande mine to the Namibian economy should be monitored and reported on through annual reviews. Such reports should be produced by the mine as part of its management, as well as the Chamber of Mines. The contribution to the country’s GDP through taxes and royalties paid will thus be an indicator by which this impact can be measured.
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5.4.4 Summary
Table 20: Impact Assessment of the Contribution to the Namibian Economy
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
CONTRIBUTION TO THE NAMIBIAN Highly Employ local ECONOMY Positive National Temporary Medium High Low Medium Probable labour. THROUGH CAPITAL EXPENDITURE
OPERATIONAL PHASE
CONTRIBUTION TO THE NAMIBIAN Highly ECONOMY Positive National Long Term Medium High Low None N/A Probable THROUGH TAXES AND ROYALTIES
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SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
DECOMMISSIONING PHASE
LOSS OF TAXES Negative National Permanent Medium Definite High Low None N/A AND ROYALTIES
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5 .5 C on tr iib u t iion to the R e g iiona ll a nd L oc a ll Ec o no my
5.5.1 Discussion
Apart from contributing to the national economy through taxes and royalties, as well as the direct job creation that will result from the proposed project, a number of spin-off effects are likely to be generated. As often noted in economic circles, “One person’s spending is another’s income”.
The regional and local economy is likely to get a secondary economic boost through:
Meeting the demands of the project in terms of products and services needed. At the time of writing this report, detailed figures for capital expenditure was not yet available. Due to the specialized nature of the project the majority of the equipment needed will be sourced from outside the country. The client anticipates to recruit a foreign construction team who specializes in constructing a mine and processing facility during the minimum time period. Thus, the benefits for the regional and local economy is likely to be limited with regards to spending on products and services. The capital expenditure for the new B2Gold Otjikoto Mine is estimated at US$450 during 2013. Compared to this, the Okanjande Mine capital expenditure is likely to be far less.
As for the operational expenditure, this will amount to N$4,822 per ton of product produced at full capacity of 20,000 tpa. Sustainable income for all employed at the mine and residing in the area, will increase their economic prosperity and resilience and sustainable spending . In turn their spending will add to the income of others bringing with it the potential for job creation. This is known as the multiplier effect.
The operational employees of are likely to spend a large portion of their salaries on rent and goods and services in town. During the operational phase, the salaries and wages paid to the approximately 73 staff members will amount to N$17,252,285 per annum. As household income changes, so does spending, which is an induced effect. Employees are likely to spend on housing and accommodation, fuel, clothes and food. If each spends half of their salary on such items, the regional and local economy can benefit from at least N$8 to 9 million on average per annum. Should construction workers be housed on-site, their local spending will be more limited, compared to if they are accommodated in town.
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The local housing industry is likely to benefit from an increased demand for housing or erven. Of late, the housing price index in Otjiwarongo has seen a growth of almost 90 % over the last six years. This trend is likely to continue as the demand for housing increases. Those who have already invested in the market place are likely to benefit by either selling or renting their units. This, however, can make it difficult for new entrants into the market to procure a house as availability is limited, or prices too high. It is also expected that the land prices of surrounding farms can increase resulting from the potential presence of minerals on the farms.
5.5.2 Enhancement
Adopt a ‘Locals First’ policy. Local companies in Otjwarongo and immediate surrounds who qualify to provide the needed goods and services for all phases should receive preference. Should Otjiwarongo businesses not be able to accommodate a certain requirement the Okanjande mine then ought to consider alternatives within the Otjozondjupa region before contemplating other Namibian sources. Only if needed products and services are not readily available in Namibia, should international sources be considered.
5.5.3 Monitoring
During the construction phase, the project team should compile an annual report indicating the number of contractors used, the amounts paid to them, as well as their country of origin. Each contractor should supply information on the number of Namibians they employ. Such reports will provide an indication of the number of Namibian contractors and employees used during the construction phase. The same should be true for products procured.
During the operational phase, the Human Resources Department will keep record on the number of employees, as well as their salary scales. The amount spent on salaries will be an indication of the amount of money that will be spent in the local, regional and national economy by the employees. Reports should also be compiled on how and where operational costs were spent indicating the local, regional and national goods and services used.
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5.5.4 Summary
Table 21: Impact Assessment of the Contribution to the Regional and Local Economy
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
Locals First Policy, employ local SECONDARY Regional Highly labour and not ECONOMIC Positive Temporary Medium High Low Low to Medium and Local Probable foreigners. BOOST Encourage local spending.
OPERATIONAL PHASE
SECONDARY Locals First Policy. Regional Highly ECONOMIC Positive Long Term Medium High Low Encourage local Low to Medium and Local Probable BOOST spending.
DECOMMISSIONING PHASE
SECONDARY Regional ECONOMIC Positive Permanent Medium Definite High Low Locals First Policy. Medium and Local BOOST
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5 .6 J ob C r e a t iio n
5.6.1 Discussion
The Otjozonjupa Region has an unemployment rate of 37 %. As for Otjiwarongo, an estimated 40 % of the economically active group are unemployed.
The proposed project will contribute to job creation both during all phases. During the construction phase of 14 to 18 months, 300 to 400 people will be employed during the peak period. However, skilled contractors such as boilermakers and fitters will be required. The services of mechanical, electrical, civil, process as well as control and instrumentation engineers will be required. As previously mentioned, the client considers recruiting a foreign construction team. Thus, few Namibians will benefit from job creation during the construction phase. This is a concern as it will limit the benefit of job creation to local Namibians. It should be noted that according to the Immigration Control Act 7 of 1993 the Immigration Selection Board may only issue an Employment Permit if it is satisfied that the occupation “is not or is not likely to be any… occupation in which a sufficient number of persons are already engaged in Namibia”. Thus, the proponent will have to prove that no Namibians are available to do the required work. Provisions will therefore be made in all tender documentation and contractors agreements which will require contractors to prove the consideration of local labour as per the above referenced legislation.
With respect to the operational phase, approximately 73 people will be required to manage and operate the mine. A breakdown of the skills needed are presented in the table below (Table 22). All unskilled (should there be) and semi-skilled employees will be sourced locally from Otjiwarongo, the remainder will be recruited from elsewhere.
Table 22: Expected Skills Distribution during the operational phase
OVERHEADS STAFF PROCESSING STAFF TOTAL
SEMI-SKILLED 11 24 35
SKILLED 7 24 31
MANAGEMENT 6 1 7
TOTAL 24 49 73
Employment of Namibians by the foreign construction company, will increase the significance of job creation during construction and decommissioning phase. Job creation
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Furthermore, a number of services will be subcontracted to local enterprises these include: the daily employee transport to and from the mine; maintenance needed on the mining and access roads; and cleaning services. Together with other down-stream contracts these services will create additional employment opportunities.
5.6.2 Enhancement
A clause stipulating the use of local qualified people and sub-contractors during the construction phase should be included in the agreement between Okanjande Mine and all main contractors. Furthermore, local labour should be used as far as possible, especially where unskilled and semi-skilled labour is concerned. The clause should further stipulate that preference should be given to qualified locals, and especially people already residing in Otjiwarongo. For a period of time This might deter the migration to the town.
A ‘Locals First’ policy should be adopted for both the construction and operational phases where qualified locals and Namibians are given preference as per Namibian legislation.
The recruitment process should be gender inclusive, i.e. qualified women should be given an equal opportunity where possible. See Appendix A for the Equal Opportunities Plan. Remuneration should also meet Namibian set standards.
Where possible, the skills needed for operating the equipment should be transferred to Namibians rather than recruiting expatriates for the job. This will contribute to the broadening of the skills base in Namibia, and especially at Otjiwarongo.
Secure accreditation for in-house skills transfer which recognizes and certifies any training courses.
5.6.3 Monitoring
The written agreement between Okanjande Mine and the main contractor should contain the ‘Locals First’ clause stipulating the commitment to employ local
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Namibians where possible. The project team and its tender board will be responsible to see to this.
Annual workforce profiles and reports should be compiled for both the construction and operational activities by the contractor and the Human Resources Department. Socio-Economic indicators will include citizenship, region or town of origin and gender.
The Human Resources department of Okanjande Mine will be responsible for the coordination of effective training programs as well as employee development and growth. The number of employees who have received training will be an indicator of the positive impact of skills transfer. The budget should allow for such training.
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5.6.4 Summary
Table 23: Impact Assessment of Job Creation
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
Negative, if JOB CREATION Local to Highly foreigners Temporary High High Medium Locals First Policy Low (IF FOREIGN) National Probable are used
Positive, of locals and Local to JOB CREATION Temporary High Improbable High Low Locals First Policy Medium Namibian National are used.
OPERATIONAL PHASE
Local to Highly JOB CREATION Positive Long Term Medium High Low Locals First Policy Low to Medium National Probable
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SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
DECOMMISSIONING PHASE
RETRENCHMENT Provide OF Local to accreditation for Negative Permanent Medium Definite High Medium to Low Low OPERATIONAL National in-house skills EMPLOYEES. training.
CONTINUATION Local to Positive Permanent Medium Definite High Low Locals First Policy Low to Medium OF EMPLOYMENT National
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5 .7 I nf llu x to t he To wn a n d Pr e s s u r e o n S e r v iic e s
5.7.1 Discussion
Otjiwarongo currently faces an influx to the town which can be ascribed to the number of new developments in the area. Influx takes the form of (a) job seekers and (b) those who have already procured an employment opportunity at a new development.
It is expected that as the news of the mine’s development is spread, an influx of job seekers will descend on the town. Even though some view this as a positive trend seeing that it forces service delivery to expand, it does place pressure on such services initially, at least during the implementation phase of a project. Furthermore, an influx of job seekers adds to the unemployment rate and can further contribute to existing social ills. Otjiwarongo currently faces problems with drug abuse, especially in the schools, as well as substance abuse and high crimes rates in town.
As for an influx of employed people to the town, it will add to the existing pressures on service delivery. The municipality already faces a shortage of more than 3,000 available residential erven. The B2Gold Otjikoto Gold Mine employees, estimate at 120 during the operation phase, will also require erven or housing most of them in Otavi. This project is currently in the construction phase and operations will begin towards the end of 2014. Cumulatively, the construction phase of the Okanjande Mine and operational phase of the B2Gold mine, will exert great pressure on the lack of housing in the event that construction workers be accommodated in town. Should about 6 people share a house, the construction team for this project will require approximately 66 houses or erven for accommodation. It is also possible that should local contractors be used, they will want to bring with their families, therefore further adding to the pressures. As for operational workers, should the staff be recruited from outside of Otjiwarongo, about 73 houses will be needed, also adding to the pressure on the lack of erven. Renting units in town is already very limited due to the implementation of various developments in the area.
The sewerage system and road infrastructure are operating at full capacity. New people to the area, whether employed or job seekers, will add to these pressures since all of them will require housing and associated services. Since the job seekers will mostly reside in the informal areas where water provision infrastructure needs upgrading, this service will face increased pressure as well.
Educational facilities, especially schools, are already under pressure as the demand for schooling is higher than the availability thereof. As some of the in-migrants will bring their families with them, it will further add to the shortage of classrooms and teachers which is already faced by the education sector.
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The construction phase will see an estimated 400 employees during the peak period. This will put the available communication infrastructure under pressure. This impact is expected to be much less during the operational phase.
An increase to the existing phenomenon of influx of job seekers, the available resources such as housing, waste and sewerage treatment will experience increased pressure. Even though new erven are being planned, it is not foreseen that these will be built up and services by the time the construction phase is planned for this mining operation.
Taking all of the above into consideration, the impacts on existing services related to the off- site (accommodation in town) and on-site accommodation options of the construction workers, are compared in Table 24. Accommodating the construction team in Otjwarongo, available services will face increased pressure. Yet, no services are available on site and therefore will require the installation of such an infrastructure (including water provision, sewerage treatmenrt and electricity). The provision of such services will not only possible require various permit applications during the planning phase, but will further have various impacts on the environment which need to be investigated, should the design of such services fall outside the original scope of the EIA as it is foreseen that such services (which is also required for the proposed mine) will be installed in the initial phases of the construction phase and will therefore be able to serve the construction workers shortly afterward. Temporary services will be made available during the construction of such services. These temporary services will again tie into the town services on several accounts such as sewerage treatment and waste management. . In addition to the above, surrounding land users have voiced their concern and objection towards uncontrolled movement (which is associated with on-site accommodation) of people on the farm and on the access road. It is therefore suggested that no construction workers be housed on site and that the proponent come into agreement with the local municipal authority on a suitable townlands area preferably already disturbed. Should no such area be available, a suitable area is to be negotiated with the municipality and which will consider neighbouring land users and land owners.
Table 24: Comparison of off-site and on-site accommodation options for the construction phase
OFF SITE ACCOMMODATION (I.E. RISK FACTOR ON SITE ACCOMMODATION IN OTJIWARONGO)
Water infrastructure will have to be WATER Increased pressure on available established and provided by the client. CONSUMPTION services and infrastructure in town. Temporary services at first to be followed with permanent fixtures.
No available services on-site. WASTE DISPOSAL Services and infrastructure available Infrastructure and related services to
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in town. be established or waste to be trucked to the municipal dump site.
No available services on-site. The available infrastructure and Infrastructure and related service of SANITATION services are already operating at full the infrastructure to be established by capacity. project developer.
The availability of housing is a big Temporary housing will have to be challenge to the Otjiwarongo constructed and possibly removed Municipality. The provision of again once the construction phase is housing and related services will HOUSING finalised. The client will have to identify have a big impact, especially since an area with the least environmental housing is limited in town and new impact and provide necessary erven might not be available by the services. time construction commences.
5.7.2 Mitigation
Okanjande Mine should communicate their accommodation, waste management, and sewerage disposal needs to the Municipality of Otjiwarongo to identify a mutually acceptable accommodation site, which should be within townland and preferably already disturbed. Should such a site not be available, negotians on alternative sites with the municipality should include concerns and considerations of adjacent land users and land owners. Such negotiations are to be conducted prior to the construction phase. Where possible, the Okanjande Mine should work with the municipality in efforts to alleviate pressure on the services infrastructure of the town.
Okanjande Mine should consider assisting the municipal initiatives in terms of health, education etc. as part of the mine’s Corporate Social Responsibility plans.
5.7.3 Monitoring
Ongoing communication with the local municipality with regarding to the positioning of the contractors camp. Minutes of meetings held and any agreements are to be kept by the Mine.
The Human Resources Department should report on the recruitment process as well as the construction and operational employees as stipulated in Section 5.5.2.
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The Public Relations department should report to the Executive Management on the communication strategies pursued in collaboration with the regional council and local authorities in order to try and limit an influx of job seekers. Minutes of meetings should be kept, which should indicate the number of erven or houses needed during both the construction and operational phases.
The Human Resources Department should report to the Executive Management
on Corporate Social Responsibility initiatives. They should indicate their aim of serving the community and meeting development needs for example, the health or education sector.
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5.7.4 Summary
Table 25: Impact Assessment of Influx to the town
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
PRESSURES ON AVAIABLE Provide housing Highly SERVICES AND Negative Local Temporary High High High on a negotiated Medium to Low Probable HOUSING FOR site, ON-SITE HOUSING
PRESSURES ON AVAIABLE SERVICES AND Provide housing HOUSING FOR Negative Local Temporary Medium Definite High Medium on a negotiated Medium to Low OFF-SITE site, HOUSING (OTJIWARONGO)
OPERATIONAL PHASE
INFLUX OF JOB Locals First Policy, SEEKERS AND Negative Local Long Term Medium Probable Medium Low communication Low EMPLOYED with local
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SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
ADDING TO authorities, EXISTING Corporate Social PRESSURES Responsibility
Locals First Policy, communication INCREASED with local PRESSURE ON Negative Local Long Term Low Probable High Medium Low authorities, HOUSING Corporate Social Responsibility
DECOMMISSIONING PHASE
It is not foreseen that there will be an influx of people into town during the decommissioning phase.
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5 .8 I nc r e a s e d Tr a f f iic
5.8.1 Discussion
Otjiwarongo is located on a key transport node linking the rest of Namibia to its northern regions and neighbouring countries. Thus, this town sees a high volume of traffic passing through the Main Street.
During the construction period, the traffic along the national roads between South Africa and Namibia, as well as Walvis Bay and Otjiwarongo, will increase insignificantly. The number of trucks will peak during the second six months of construction at 120 trucks. It is estimated that 80 % will come from South Africa and 20 % from Walvis Bay.
The transporting of material via railway is currently being investigated for the operational phase, the reliability thereof being a major limitation. Nonetheless, should railway be considered as a form of transport, products will have to be moved to and from TransNamib in town to the site. As the municipality has indicated future upgrading of Langstraat, it is recommended that the route along Langstraat be followed once the upgrade has been made, and not the main road through town in order to avoid adding additional pressures on the Main Street infrastructure and traffic volumes. This recommendation is made on the condition that the road infrastructure will be upgraded to accommodate the additional traffic volume and that all planning and mitigation measures by the municipality be adhered to. Langstraat runs along a number of residential erven, sport grounds and a school. Should safety measures be adhered to, the impact is considered to be low considering the low volume of trucks that will make use of this road. During phase one (10,000 tpa), reagents and consumables will be transported with a 25 ton truck making 2 trips a month, a 32 ton tanker once per month plus a 30,000 litre diesel tanker once per month,. The product will be dispatched with 30 ton trucks making 30 trips per month or 7-8 trips per week.
Should the construction workers be accommodated in Otjiwarongo, the 300 - 400 workers (only during the peak time of construction) will have to be transported to and from the site. The plant personnel will work a 5 day week starting at 6h00 on Monday morning and finishing on 6:00 on Saturday morning. At its peak, the increase in traffic will amount to a mere 3 buses, which is not significant in terms of increased traffic, however it can to some extent contribute to degradation of the road and increased traffic.
During the operation phase, the workers will be transported to and from the site. Since they will be working shifts which starts at 06h00 -14h00, 14h00- 22h00 and 22h00-08h00, this transport will take place during low peak traffic periods in town. Mining will be done on a 24/7 basis for one month at a time, two (10,000tpa) to four (20,000tpa) times a year. During this time the
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5.8.2 Mitigation
In the event of abnormal loads being transported from either South Africa or Walvis Bay to the site, the national, regional and local traffic departments should be informed and involved.
Operational Phase: The Langstreet route to TransNamib should be followed and not the one along Main Road (on the basis that the road has been designed and upgraded to accommodate the additional traffic – including heavy motor vehicles – as well as meet all safety and community planning needs). Transport of shift workers should take place outside of peak traffic hours such as 07h00-08h30 and 16h00-17h30. The proposed shift hours currently will not cause an overlap with peak hours, hence it is advised that the hours be implemented and not altered.
The mine should enter into an agreement with the farmers regarding the use of the private road to the site.
Consult with TransNamib on services needed from them during the operational phase.
Should the product be transported via railway, the traffic department in town should be informed of the intended road use to TransNamib,
5.8.3 Monitoring
A logbook should be kept at the gate of the access road indicating the time of entrance or exit, the type of vehicle, and its destination. By doing so, traffic to and from the town during peak hours can be monitored. It will also indicate whether traffic predictions were accurate or not, and whether traffic forecasts should be revisited.
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5.8.4 Summary
Table 26: Impact Assessment of Increased Traffic
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
Good traffic control INCREASED TRAFFIC ALONG measures, ROUTES communication BETWEEN SA with the local Negative International Temporary Low Definite High Low Very Low AND NAMIBIA, and national AND WALVIS traffic BAY AND THE departments SITE when abnormal loads come in.
TRANSPORT OF CONSTRUCTION Adhere to traffic Negative Local Temporary Low Definite High Low Low WORKERS IF control measures HOUSED OFF-
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SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
SITE
OPERATIONAL PHASE
Adhere to agreement with farmers, avoid peak traffic hours INCREASED in town and use TRAFFIC TO of Main Road. TOWN AND Negative Local Long Term Low Definite High Low Low Heavy vehicles ALONG PRIVATE ROAD TO SITE should avoid using the main street, rather use Langstreet to TransNamib.
DECOMMISSIONING PHASE
INCREASED It is foreseen that there will be no increase of traffic during the decommissioning phase and therefore no assessment required. TRAFFIC TO SITE
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5 .9 I mp a c ts o n S u r r ou n d iing L a n d Us e s
5.9.1 Discussion
The various components of the project are surrounded by differing land uses. Changes to these land uses, or impacts thereon, as a result of mining and associated activities are expected to result in disagreements between surrounding landowners and the mine.
These surrounding land uses mainly include farming of cattle and game for agriculture and tourism (hunting) purposes. Both these activities are sensitive in terms of the bio-physical and social environment. As such, impacts on various aspects of the environment may result in a impact on the land use, which is could result in a change of land use.
A bio-physical element of the environment which is especially sensitive to the proposed mining activity (in terms of land use), is groundwater. The current surrounding land uses are solely reliant on groundwater resources; therefore, extreme care should be taken in the avoidance and possible contamination of this resource.
Other aspects of the environment which have been considered during this EIA include the ambient air and noise qualities and the dependence upon these by the existing surrounding land uses. Blasting activities which result in noise, tremors and dust clouds are likely to affect possible hunting activities on the game farming areas. It is however not foreseen that these activities will cause such an impact that current land uses will be adversely affected to the point of change of land use as the frequency of these event will be very low (limited to approximately one blast per quarter).
Ancillary impact to the physical mining activity includes the possibility of poaching. Concerns raised by neighbouring land users stipulate the possible loss of income for the tourism and agricultural industry (cattle and game) should any poaching occur as an ancillary “knock- on” affect of mining activates in the area. If left uncontrolled, poaching may result in economical losses which can seriously encumber current land uses.
5.9.2 Mitigation
See recommendations of geo-hydrology and health specialist studies.
The farmers of Osdam and Highlands, will receive compensation in the form of occupations rights fees or purchasing of the land. Procurement of a portion on farm Osdam has already been agreed upon. An agreement should be reached with the owner of farm Highlands with regards to purchasing of a portion of his land, prior to the construction phase. The agreed compensation should also be
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paid prior to the construction phase, and should be in line with national purchasing regulations and values.
Adhere to the mitigation measures as outlined in the Environmental Management Plan with regards to blasting and safety. All the neighbouring land users should be informed regarding the dates and times for blasting.
A go-to-person should be identified by the Okanjande Mine, and his/her details provided to the surrounding land users. A platform has to be created for them to submit any complaints and also receive feedback on how issues was addressed. This can be done by electing a community representative committee who can communicate issues to the go-to-person.
The possibility of poaching occurring is more likely in the event of construction workers being housed on-site versus offsite. Poaching should be strictly prohibited and all employees be informed of penalties involved with such misconduct. In the event of poaching by any employee, the mine and the contractor will be responsible for compensation in cash or kind.
The location of the construction camp is to be discussed with the local municipality and with consideration to adjacent land users and adjacent land owners.
5.9.3 Monitoring
Records of communication with the surrounding land users regarding blasting activities, should be communicated by the Public Relations department to the Executive Management.
Record of complaints received from the surrounding land users, as well as feedback on how it was addressed. This will be the responsibility of the identified go-to-person, possibly the environmental coordinator responsible for monitoring the implementation of the EMP.
Records of compensation paid in the event of poaching should be provided to the Executive Management, as well as disciplinary actions taken by the Human Resources Department or contractor.
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5.9.4 Summary
Table 27: Impact Assessment of impacts on surrounding farming and tourism activities
SIGNIFICANCE POTENTIAL STATUS/ DEGREE OF EXTENT DURATION INTENSITY PROBABILITY IMPACT NATURE CONFIDENCE PRE- MITIGATION/ POST- MITIGATION ENHANCEMENT MITIGATION
CONSTRUCTION PHASE
Implement EMP,
CHANGE TO LAND Community USE ACTIVITIES OF Representative Highly SURROUNDING Negative Local Temporary Medium High Medium committee. Low Probable FARMERS AND Compensation for HUNTING TOURISM land as well as poaching.
OPERATIONAL PHASE
Implement EMP,
CHANGE TO LAND Community USE ACTIVITIES OF Representative Highly SURROUNDING Negative Local Long Term Medium High Medium committee. Low Probable FARMERS AND Compensation for HUNTING TOURISM land as well as poaching.
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SIGNIFICANCE POTENTIAL STATUS/ DEGREE OF EXTENT DURATION INTENSITY PROBABILITY IMPACT NATURE CONFIDENCE PRE- MITIGATION/ POST- MITIGATION ENHANCEMENT MITIGATION
DECOMMISSIONING PHASE
CHANGE TO LAND Positive, if USE ACTIVITIES BY landscape Implement SURROUDNING Local Permanent High Definite High Low Medium rehabilitation rehabilitation plan FARMERSAND TOURISM takes place
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5 .1 0 C on tr iib u t iion to the s p r e a d iing of Diis e a s e
5.10.1 Discussion
An influx of job seekers resulting from the proposed project can contribute to the spreading of various diseases including HIV/AIDS. The mobility of some of the employees such as the construction workers coming in and leaving once their task is complete, as well as shift workers during the operational phase, can also contribute to the spreading of diseases, not only to the town, but also to other areas in the country. The same is true for the transport sector used for this project. New infections will add to the pressures on health care facilities.
5.10.2 Mitigation
An HIV/AIDS policy should be adopted by the contractors and the Okanjande mine for both the construction and operational phases. Initiatives should be implemented with regards to raising awareness on HIV/AIDS. This can, for example form part of wellness week themes. Where transport services are subcontracted, the contractors should be encouraged to get involved with HIV/AIDS programmes for the transport sector.
As part of its Corporate Social Responsibility actions, local initiatives can be supported.
See Appendix B for the HIV Action Plan.
5.10.3 Monitoring
The Health and Wellness Coordinators should compile health overview reports of the workforce. The number of HIV/AIDS infections will be an indicator of the impact of HIV/AIDS on the workforce, as well as the town. An annual overview of HIV/AIDS infections in Otjiwarongo can also be indicative of project’s contribution to the spreading of this disease since the time of project implementation.
Awareness raising campaign initiatives and material should be provided to the work force.
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5.10.4 Summary
Table 28: Impact Assessment for the contribution to the spreading of HIV/AIDS
SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
CONSTRUCTION PHASE
INFLUX AND MOBILE Awareness Raising WORKFORCE Local to Highly Campaigns, Negative Permanent High High Medium Medium-Low CONTRIBUTING National Probable Corporate Social TO SPREADING Responsibility, OF HIV/AIDS
OPERATIONAL PHASE
INFLUX AND MOBILE Awareness Raising WORKFORCE Medium Campaigns, Negative Local Permanent High High Medium Medium-Low CONTRIBUTING Probable Corporate Social TO SPREADING Responsibility OF HIV/AIDS
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SIGNIFICANCE
POTENTIAL STATUS/ DEGREE OF PRE- POST- EXTENT DURATION INTENSITY PROBABILITY MITIGATION/ IMPACT NATURE CONFIDENCE MITIGATION/ MITIGATION/ ENHANCEMENT ENHANCEMENT ENHANCEMENT
DECOMMISSIONING PHASE
SPREADING OF Highly HIV/AIDS AS Negative National Permanent High High Medium None N/A Probable MINE CLOSES
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6 IIDENTIIFIICA TIION OF KEY IIMPA CTS
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 paid, amounting to N$51,218,480 per annum for the 20,000tpa scenario.. The significance of this impact will be medium.
Contribution to the regional and local economies, and secondary economic boost: Should foreign contractors be used, the significance of these benefits will be low since the majority of the equipment will also be sourced elsewhere during the construction phase. As for the operational phase, the annual spending of operational costs will amount to N$96.44 million, while N$17.25million will be spent on salaries and wages. Secondary industries in Otjiwarongo and elsewhere in Namibia will also benefit from sub-contracting, outsourcing, etc. Should the mitigation measures be adhered to, its impact significance will increase from low to a medium.
Job Creation: An estimated 300 - 400 jobs will be created during the construction phase. Should foreign construction workers be used, the impact significance will be low. This can increase to a medium significance should locals be employed. About 73 operational workers will be employed. Should qualified Namibians and local contractors be sourced, the impact significance will be medium, compared to a low significance should people from elsewhere 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 can be mitigated from a medium to a 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.
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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 can also impact on them. The probability is low 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.
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7 Concllusiions and Recommendatiions
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:
Adopt a ‘Locals First’ Policy during direct employment of all phases. Require construction companies to employ Namibian labour for unskilled and semi-skilled labour during the construction phase. 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 is to be included as considerations in the above mentioned negations. Should the location of the construction camp fall outside a townland area or should the establishment thereof require additional service infrastructure (which has not been included in the original Mine planning) design and management measures of the additional area and infrastructure are to be included in an addendum to the EIA/EMP Communication with the surrounding land users is of 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, even though it will be less than other mines in the area. Cumulatively, it will contribute to Namibia reaching its Vision 2030 goals.
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