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Greenland Minerals A/S Kvanefjeld Project Social Impact Assessment Version 1

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Greenland Minerals A/S Kvanefjeld Project Social Impact Assessment Version 1 Greenland Minerals A/S Kvanefjeld Project Social Impact Assessment Version 1 December 2020 Shared Resources Pty Ltd TABLE OF CONTENTS 0 1. INTRODUCTION ................................................................................................... 16 1.1 Overview of the Project 16 1.2 Background 16 1.3 Objective of the SIA 17 1.4 General Approach 18 1.5 Study Areas and Temporal Boundaries 19 1.6 Structure of the Report 19 2. NON-TECHNICAL SUMMARY ................................................................................ 21 2.1 Introduction 21 2.1.1 Purpose and scope of document 21 2.1.2 Project description 21 2.1.3 Social Impact Assessment process 23 2.1.4 Study Areas and Temporal Boundaries 26 2.1.5 Structure of the Impact Assessment 26 2.2 Assessment of Alternatives 27 2.3 Baseline 28 2.4 Assessment of Impacts 30 2.4.1 National and local economy 30 2.4.2 Employment and Labour Conditions 31 2.4.3 Land use and land-based livelihoods 33 2.4.4 Ocean resources and ocean-based livelihoods 33 2.4.5 Occupational health and safety 33 2.4.6 Community Health and Safety and Security 35 2.4.7 Social structures and community life 38 2.4.8 Cumulative impacts 40 2.5 Benefit and Impact Plan 41 3. PROJECT DESCRIPTION ......................................................................................... 58 3.1 Project Setting 58 3.1.1 History of mineral exploration 58 3.1.2 What is being mined and why 58 3.1.3 Local community 59 3.2 Overview of operations 60 3.3 Project phases 62 3.3.1 The Mine 62 3.3.2 Waste Rock Stockpile 64 3.3.3 Concentrator and refinery 64 3.4 The Port 65 1 3.5 Handling of Radioactive Material 66 3.5.1 Overall management 66 3.5.2 Health and safety of employees 67 3.5.3 Security of nuclear products 67 3.6 Support Infrastructure 68 3.6.1 Administration and accommodation 68 3.6.2 Airports 69 3.6.3 Transport Facilities 69 3.6.4 Electricity and Gas Supply 70 3.6.5 Domestic and industrial waste handling 70 3.6.6 Hazardous material handling (hydrocarbons, explosives) 70 3.6.7 Fencing 70 3.6.8 Dangerous Goods Storage and Handling 71 3.6.9 Pipelines 71 3.7 Labour and services 71 3.8 Project footprint 72 3.9 Decommissioning, Closure and Rehabilitation 72 3.10 Project Investment 73 3.10.1 Capital Cost 73 3.10.2 Operating Cost 75 4. REGULATORY FRAMEWORK ................................................................................. 76 4.1 Legislation and Regulation Applicable in Greenland 76 4.1.1 Mineral Resource Act 78 4.1.2 Large Scale Act 79 4.1.3 Greenland Working Environment Act 80 4.1.4 Application of the Aliens Act in Greenland 80 4.2 National Guidelines 80 4.3 International Standards and Guidelines 81 4.4 International Security Obligations 81 5. ALTERNATIVES ASSESSMENT ............................................................................... 83 5.1 Not proceeding with the Project 83 5.2 Level of Processing 83 5.2.1 Scenario 1: Concentrator-only 84 5.2.2 Scenario 2: Mechanical (concentrator) and chemical processing (refinery) 84 5.2.3 Scenario 3: Greenland Separation Plant 84 5.3 Alternative Facility Locations 85 5.4 Port Location 86 5.5 Accommodation Facilities 87 5.6 Energy alternatives 88 6. BASELINE DESCRIPTION ....................................................................................... 89 2 6.1 Social and Cultural Setting 89 6.1.1 Civil Society 90 6.2 Demographics 92 6.2.1 Age and Gender Distribution 96 6.2.2 Migration and Mobility in the Population 98 6.3 Economy 100 6.3.1 National economy 100 6.3.1.1 Description of business activity 103 6.3.1.2 Challenges to the public budget 104 6.3.2 Regional and Local Economy 105 6.4 Education 106 6.4.1 Professional Education and Training 109 6.5 Community Health 112 6.5.1 Health Infrastructure 113 6.5.2 Health Services 113 6.5.3 Health Status 115 6.5.3.1 Communicable Diseases 115 6.5.3.2 Non-Communicable Diseases 118 6.5.3.3 Social and Emotional Wellbeing 119 6.6 Land Use, Ecosystem Services and Socio-Cultural Values 122 6.6.1 Land Use and Tenure 122 6.6.2 Ecosystem Services 123 6.6.3 Socio-Cultural Values and Cultural Heritage Sites 130 6.7 Livelihood Activities and Employment 132 6.7.1 Employment 132 6.7.1.1 Unemployment 138 6.7.1.2 Challenges facing the labour market 140 6.7.1.3 Vocational Training and Job Readiness Initiatives 141 6.7.2 Land-based livelihood activities 142 6.7.3 Ocean-based livelihood activities 142 6.8 Community Infrastructure 143 6.8.1 Housing 143 6.8.2 Information and Communication Technology 143 6.8.3 Water Supply 144 6.8.4 Power Supply and Heating 146 6.8.5 Waste Management 146 6.8.6 Transport networks 147 6.8.6.1 Air Transport 147 6.8.6.2 Sea Transport 148 6.8.6.3 Qaqortoq Airport 150 6.8.7 Social Services and Facilities 150 6.9 Vulnerable People 151 7. IMPACT ASSESSMENT .........................................................................................152 7.1 Social Impact Assessment Methodology 152 3 7.2 National and Local Economy 154 7.2.1 Greenlandic Employment and Procurement 154 7.2.1.1 Project Activities Affecting Greenlandic Employment and Procurement 154 7.2.1.2 Potential Greenlandic Employment and Procurement Impacts 154 7.2.1.3 Mitigation / Enhancement Measures for Greenlandic Employment and Procurement 156 7.2.1.4 Residual Greenlandic Employment and Procurement Impacts 156 7.2.2 Greenlandic Processing 156 7.2.2.1 Project Activities Affecting Greenlandic Processing 156 7.2.2.2 Potential Greenlandic Processing Impacts 158 7.2.2.3 Mitigation / Enhancement Measures Affecting Greenlandic Processing 158 7.2.2.4 Residual Greenlandic Processing Impacts 159 7.2.3 Government Revenue 159 7.2.3.1 Project Activities Affecting Government Revenue 159 7.2.3.2 Potential Government Revenue Impacts 159 7.2.3.3 Mitigation / Enhancement Measures Related to Government Revenue 161 7.2.3.4 Residual Government Revenue Impacts 161 7.2.4 Inequitable Distribution of Benefits 161 7.2.4.1 Project Activities Affecting the Distribution of Benefits 161 7.2.4.2 Potential Distribution of Benefits Impacts 161 7.2.4.3 Mitigation / Enhancement Measures Related to Distribution of Benefits 162 7.2.4.4 Residual Distribution of Benefits Impact 162 7.3 Employment and Labour Conditions 163 7.3.1 Greenlandic Employment Levels 163 7.3.1.1 Project Activities Affecting Greenlandic Employment Levels 163 7.3.1.2 Potential Greenlandic Employment Level Impacts 167 7.3.1.3 Mitigation / Enhancement of Greenland Employment Level Impacts 167 7.3.1.4 Residual Impacts of Greenlandic Employment Levels 168 7.3.2 Training and Work Skills Capacity Building 168 7.3.2.1 Project Activities Affecting Training and Work Skills Capacity Building 168 7.3.2.2 Potential Training and Work Skills Capacity Building Impacts 168 7.3.2.3 Mitigation/ Enhancement of Training and Work Skills Capacity Building 169 7.3.2.4 Residual Impacts Regarding Training and Work Skills Capacity Building 170 7.3.3 Indirect Employment and Local Procurement 170 7.3.3.1 Project Activities Affecting Indirect Employment and Local Procurement 170 7.3.3.2 Potential Indirect Employment and Local Procurement 171 7.3.3.3 Mitigation / Enhancement Measures for Indirect Employment and Local Procurement 171 7.3.3.4 Residual Indirect Employment and Local Procurement Impacts 171 7.3.4 Labour Conditions 171 7.3.4.1 Project Activities Affecting Labour Conditions 171 7.3.4.2 Potential Labour Conditions Impacts 172 7.3.4.3 Mitigation / Enhancement affecting Labour Conditions 172 7.3.4.4 Residual Labour Conditions Impacts 172 7.3.5 Workforce Accommodation 172 7.3.5.1 Project Activities Affecting Workforce Accommodation 172 7.3.5.2 Potential Workforce Accommodation Impacts 174 7.3.5.3 Mitigation / Enhancement Measures for Workplace Accommodation Impacts 175 7.3.5.4 Residual Workplace Accommodation Impacts 176 7.4 Land-Use and Land Based Livelihoods 178 7.4.1 Economic Displacement Due to Land Occupation and Land Access Restrictions 178 4 7.4.1.1 Project Activities Affecting Land-Based Economic Displacement 178 7.4.1.2 Potential Land-Based Economic Displacement Impacts 178 7.4.1.3 Mitigation / Enhance Measures for Land-Based Economic Displacement Impacts 179 7.4.1.4 Residual Land-Based Economic Displacement Measures 180 7.4.2 Ecosystem services 181 7.4.2.1 Project Activities Affecting Ecosystem Services 181 7.4.2.2 Potential Ecosystem Services Impacts 181 7.4.2.3 Mitigation / Enhancement Measures Related to Ecosystem Services 182 7.4.2.4 Residual Ecosystem Services Impacts 182 7.4.3 Tourism 183 7.4.3.1 Project Activities Affecting Tourism 183 7.4.3.2 Potential Tourism Impacts 183 7.4.3.3 Mitigations / Enhancement Related to Tourism 183 7.4.3.4 Residual Tourism Impacts 183 7.5 Ocean Resources and Ocean-Based Livelihoods 185 7.5.1 Economic Displacement Due to Access Restrictions and Impacts to Ocean Resources 185 7.5.1.1 Project Activities Affecting Ocean-Based Economic Displacement 185 7.5.1.2 Potential Ocean-based Economic Displacement Impacts 185 7.5.1.3 Mitigation / Enhancement Measures Related to Ocean-Based Economic Displacement 185 7.5.1.4 Residual Ocean-Based Economic Displacement Impacts 185 7.6 Occupational Health and Safety 186 7.6.1 Risk of accidents 186 7.6.1.1 Project Activities Affecting the Risk of Accidents 186 7.6.1.2 Potential Risk of Accident Impacts 187 7.6.1.3 Mitigation / Enhancement Measures Related to Risk of Accidents 187 7.6.1.4 Residual Risk of Accidents Impact 188 7.6.2 Radiation Exposure (occupational health impact) 188 7.6.2.1 Project Activities Affecting Radiation Exposure 188 7.6.2.2 Potential Radiation Exposure Impacts 190 7.6.2.3 Mitigation / Enhancement Measures Related to Radiation
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