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4.2. Adola Gold Mine Enterprise

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4.2. Adola Gold Mine Enterprise Acronyms 1 Executive Summary selected for this study. Pre- General information liminary data were collect- ed from relevant entities of Voluntary contributions of extractive companies to social devel- each company and each of opment and environmental protection play pivotal roles for fos- these was verified at sites tering company – community relationships, transparency and dis- by using physical observa- charging corporate responsibility of companies. These efforts of tion, interviewing members companies also ensure sustainability in their business and healthy of the local communities, perceptions of the local communities with regard to their mining Kebele and Woreda Admin- activities. Ethiopia has established EEITI in the Ministry of Mines, istrations, school Directors, Petroleum and Natural Gas with an overarching objective of pro- Dean of TVET, youth, Nech moting transparency in the mining sector of the country. In fact, Sar National Park Adminis- a pertinent issue in this regard is a full understanding of the so- tration, students using the cial expenditure of companies to promote local community devel- facilities built by companies opment and environmental sustainability. It is at the backdrop of and librarians. The contents this development that the MoMPNG has commissioned a study of the documentary film to document the financial and in-kind contributions of extractive were shot at each site and companies to local community development and environmental interviews were conducted protection. with the above mentioned stakeholders to verify and A total of 16 extractive companies (13 from the mineral and 3 from witness the contributions of oil & gas sectors) were selected for the current assignment. These the companies at each op- are given below. erational site. Photographs of these contributions were Abijata – Shalla Messebo Yara Dallol B.V. East African taken as evidences and Soda Ash S.C. Cement Coal PLC Factory PLC some of these are included Ethiopian Muger Cement Africa Oil Derba in this report. Minerals, Enterprise Ethiopia B.V. MIDROC Petroleum& Bio Cement PLC fuel Corporation Key findings Key findings of the study MIDROC Gold National GPB Ethiopia Circum Mine PLC Mining Resources B.V. Minerals are grouped under major Corporation Potash Ltd. sectors and summarized Adola Gold Mine Sammakka Poly-GCL Dangote below to provide a holistic Enterprise Stones Petroleum Cement Investment Ltd. Ethiopia PLC view of the contributions of extractive companies to lo- This study has two major components. The first component focus- cal community development es on the preparation of a written report about the contributions of and environmental protec- companies to local community development and environmental tion. Annex 1 gives the de- protection. The second component deals with the preparation of tails of the contributions of a documentary Film based on the findings of this written report. each of the 16 companies This documentary film has English sub-titles but the stories are whileAnnex 2 provides a narrated in Amharic. summary of the contribu- tions of each of the 16 ex- Data collection approaches tractive companies across The team has travelled to all operation sites of the companies different sectors. The total voluntary contributions of 2 the 16 companies selected for this assignment pioneered the training of emergency and criti- to local community development and environ- cal care Nursing (Africa Oil) and provisions of mental protection is 1,575,850,988.22 ETB. drugs (e.g. Yara Dallol and Circum Minerals). Furthermore, companies have also provided Education sector free ambulance services for the local commu- Education is one of the major sector that com- nities within the radius of 30 km of its operation panies have made significant contributions. areas&free maternal and child care (e.g. Muger These contributions are direct financial provi- Cement) and provided treatment for snake bites sions and in-kind such as buying chairs, school (e.g. Yara Dallol), which requires special spe- bags for students, reference books, comput- cialists and medicine. The total financial contri- ers and blackboards. In this sector, companies butions of the companies to health sector as a also built schools which range from Primary to whole amount to 39,050,257.44 ETB. TVET. The total financial contributions of com- panies to the education sectors amounts to Water sector 194,454,654.34 ETB. As there is less developed basic public infra- structure in the operation areas of these com- Road sector panies, access to clean drinking water is one of The companies selected for this assignment the major social challenges of the local commu- are operating in relatively remote parts of Ethi- nities. In some of the arid areas, namely, areas opia where basic public infrastructure services where pastoral communities live, the recurrent are not well-developed. Companies have usu- occurrence of drought exposes their livestock ally constructed roads to access their con- to a shortage of water. Companies have made cession areas but they have also significantly significant contributions to ensure access of the contributed to the construction of a network of local communities and their livestock to water. rural roads to link Kebeles and Kebeles with These contributions have included the develop- Woreda administrations. In some places, local ment of water boreholes, artificial ponds and in- communities living on both sides of big rivers stallation of water tank and construction of wa- such as communities on both sides of Fan Fan ter points at optimal sites for the communities to River in Ogaden and those from Ada’a Berga access drinking water. For example, GPB has & Meta Wolkite Woredas are usually separat- distributed Q-drum (50 L capacity special, rolling ed for at least 3 months during the major rainy jerry can) water containerat a household level season from attending social events, e.g., fu- to reduce the effort needed to carry water by fe- nerals. Extractive companies such as Poly-GCL males. Furthermore, companies have provided and Derba Cement have constructed bridges to generators and fuel to pump water to the drink- ensure all year round communications of these ing points for livestock. In some cases, artificial local communities. The total contributions of the ponds were developed by some companies companies for the construction of rural roads (MIDROC Gold and Muger Cement) to solve and bridges amounts to 241,648,535.90 ETB. the shortage of water for the livestock of the local communities.The total contribution of the Health sector companies for the development of water sector Health is one of the major sector where com- for the local communities is 26,134,789.05ETB. panies have made significant contributions both financially and in-kind. Companies have Agricultural development constructed health centers (Derba Cement), This sector is the primary sources of the liveli- donated medical equipment (e.g. GPB), es- hood income of the local communities. Three tablished the first ICU in Ethiopia (Africa oil), companies, i.e., Muger Cement, Yara Dallo and 3 Circum Minerals have made contributions to have embarked on different environmental pro- enhance the household economy of the local tection activities. The latter include rehabilitation communities with regard to agriculture. Muger of degraded areas, quarry sites, construction of Cement has established nursery facilities for gabion to protect soil erosion, distributions of germination of coffee and distribution of its seedlings of trees and establishment of exclo- seedlings to the local farmers. This company sure of a remnant Acacia woodland. The ulti- has introduced a homegarden level production mate outcome of this effort of the companies of coffee in the local community. On the other is to ensure environmental protection, the con- hand, some companies, e.g. Yara Dallol and servation of biodiversity and the maintenance Circum Minerals have diverted Rigale River to of healthy ecosystem functions. The total contri- the Ethiopian side of Afar in Dallol to enable butions of companies to environmental protec- the local communities to grow sorghum during tion is 76,747,584.87 ETB. the rainy season. GPB has also constructed and handed over a water pumping station on Sport Awash River to enable farmers to grow differ- A total of 88,162,477.68 ETB was contributed ent types of crops by irrigation. The total con- by different companies to support sport activi- tribution of companies to agriculture sector is ties. 21,395,149.36 ETB. Recommendations Eco-tourism Re-engineering the CDF to find ways to strike a Africa oil has embarked on the development balance between community expectations and of modern tourist facilities on Lake Chamo. To companies’ roles this end, the company has constructed a jetty, The local communities usually expect a lot from 1.5 km long all weather road to the Jetty and a companies to fill their development needs/gaps. tourist reception office. It has also constructed Companies, on the other hand, contribute to souvenir shops for unemployed youth to pro- the CDF via the legal framework and undertake mote local culture and had donated 2 boats for philanthropy on a voluntary basis. The Gov- the local association of tour guides. The total ernment is also trying to address development contribution of this company to the eco-tourism priorities of the local communities with its limit- sector is 6,263,982.29 ETB. ed finance. The amount of the CDF itself is an addition to this complexity, i.e., certain compa- Support for Government nies contribute as part of their legal requirement institutions and social events determined by the scope of their activities and In addition to their contributions to local com- may turn out to be small to design a major prior- munity development, companies have also ity project for the communities. In fact, the cur- made significant financial support for Govern- rent Regulation No. 423/2018 clearly stipulates ment institutions and social events.
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