PROGRAMMATIC ENVIRONMENTAL ASSESSMENT FOR USAID SUPPORT TO SMALL-SCALE ARTISANAL MINING ACTIVITIES IN SIERRA LEONE PROGRAMMATIC ENVIRONMENTAL ASSESSMENT FOR USAID SUPPORT TO SMALL-SCALE ARTISANAL MINING ACTIVITIES IN SIERRA LEONE February 2005 International Resources Group 1211 Connecticut Avenue, NW, Suite 700 Washington, DC 20036 202-289-0100 Fax 202-289-7601 www.irgltd.com DISCLAIMER This publication was produced for review by the United States Agency for International Development Mission to Sierra Leone. It was prepared by Marshall Fischer of International Resources Group in collaboration with Andrew Keili of Cemmats Group Ltd. CONTENTS Summary of Findings ............................................................................................. 1 USAID Environmental Review Procedures ......................................................... 5 Overview ............................................................................................................................................... 5 Purpose and approach of the PEA................................................................................................... 5 Peace Diamond Alliance..................................................................................................................... 6 Consultation with Stakeholders ....................................................................................................... 7 Sierra Leone Background ...................................................................................... 9 Brief History.......................................................................................................................................... 9 Geology and Environment Setting .................................................................................................10 Major Environmental Concerns of Sierra Leone and the Study Area ..................................11 Other Health and Social Factors....................................................................................................14 Diamonds............................................................................................................... 17 Diamond Overview...........................................................................................................................17 Artisanal Mining in Sierra Leone ....................................................................................................20 Artisanal Mining Licensing and Regulation ...................................................................................22 The Three Scenarios of Artisanal Mining in Sierra Leone .......................................................32 Artisanal Mining Reclamation Fund ...............................................................................................34 Diamond Area Community Development Fund ........................................................................35 Specific Environmental Concerns about Artisanal Mining .......................................................36 Sierra Leone Experience with Environmental Remediation ....................................................39 Project and Alternative Assessment .................................................................. 41 Proposed Activity for which the Programmatic Evaluation was Commissioned ...............41 The term ‘winnings’ at the root of the problem........................................................................46 Assessment of Project Alternatives ..............................................................................................47 Similarities and Dissimilarities to Artisanal Gold Mining and Placer ............. 52 Summary and Conclusions .................................................................................. 53 Annex 1: Scoping Statement for Sierra Leone Small Scale Artisanal Mining PEA......................................................................................................................... 55 Annex 2: Map of Sierra Leone Mineral Resources ........................................... 65 Annex 3: Initial Environmental Examination or Categorical Exclusion ......... 66 Programmatic Environmental Assessment: Artisanal Diamond Mining in Sierra Leone i Annex 4: Excerpts from the ‘Poverty Reduction Strategy Paper for the Mineral Resources Sector’ prepared by the Ministry of Mineral Resources, March, 2004 ........................................................................................................... 72 Annex 5: Typical Environmental Impacts of Mineral Extraction Activities.. 81 Annex 6: Sierra Leone Diamond Export Data .................................................. 84 Annex 7: List of Key Contacts............................................................................. 85 Annex 8: References............................................................................................. 87 Annex 9: Meeting Diary and Workshop Attendance ...................................... 90 Annex 10: Mining Cadastre System................................................................... 94 Annex 11: Full Cooperative Proposal Received 2-1-05 .................................... 95 Annex 12: Typical Fiancial Assurance Requirements for the Mining Industry.................................................................................................................. 98 Annex 13: Malaria and Infrastructure Development....................................... 99 Annex 14: Corrupt Behavior in the Mining Industry ..................................... 103 Annex 15: Crop Production in Sierra Leone................................................... 104 ii Programmatic Environmental Assessment: Artisanal Diamond Mining in Sierra Leone ACRONYMS ADB African Development Bank APC All Peoples’ Congress BEO Bureau Environmental Officer CARE Cooperative for American Relief to Everywhere CESP Country Environmental Strategy Paper CFR U.S. Code of Federal Regulations CHECSIL Commonwealth Human Ecology Council of Sierra Leone CMP Core Mineral Policy CSSL Conservation Society of Sierra Leone DACDF Diamond Area Community Development Fund DFID Department for International Development EA Environmental Assessment FADE Focus, Analyze, Develop, Execute FAO Food and Agriculture Organization of the United Nations GDP Gross Domestic Product GGDO Government Gold and Diamond Office GEF Global Environmental Facility GOSL Government of Sierra Leone GTZ German Technical Cooperation Agency IUCN International Union for the Conservation of Nature IEC Information, education and communication IEE Initial Environmental Examination IVC Integrated vector control IVM Integrated vector management KP Kimberley Process MEO Mission Environmental Officer MAFFS Ministry of Agriculture, Forestry and Food Security MMR Ministry of Mineral Resources MMO Mines Monitoring Officer Programmatic Environmental Assessment: Artisanal Diamond Mining in Sierra Leone iii MSI Management Systems International MANRF Ministry of Agriculture, Natural Resources and Fisheries MLHE Ministry of Lands, Housing and the Environment MOCKY Movement of Concern of Kono Youth MW Mines Warden – Ministry of Mineral Resources NDMC National Diamond Mining Company PDA Peace Diamond Alliance PEA Programmatic Environmental Assessment PRSP Poverty Reduction Strategy Paper RUF Revolutionary United Front SLP Sierra Leone Police UMU United Mineworkers Union UNCED United Nations Conference on Environment and Development UNDP United Nations Development Program UNICEF United Nations Children’s Fund USAID United States Agency for International Development UNAMSIL United Nations Mission in Sierra Leone USEPA U.S. Environmental Protection Agency WB World Bank WHO World Health Organization iv Programmatic Environmental Assessment: Artisanal Diamond Mining in Sierra Leone ACKNOWLEDGEMENTS The team would like to express its gratitude to Paul Temple and the MSI Peace Diamond Alliance team in Freetown, Kono, and Tongo for the substantial assistance provided us, both with regard to information that was shared as well as logistical support in the field. We would also like to thank the many people with whom we visited that shared openly and candidly their thoughts about the direction and future of the artisanal diamond-mining sector. We believe that the process of conducting interviews provided many of them with their first real thoughts about how the problem might be managed and why it may be beyond just the responsibility of the government to deal with. Hopefully, this review will provide a firmer foundation for this thinking to grow and for more responsible environmental management notwithstanding donor programs requiring such. This report was prepared as a task under USAID contract EPP-I-00-03-000 13-00 that included specific terms of reference regarding areas to be included in the assessment. The assessment team consisted of Marshall Fischer, Team Leader, Dr. Bernadette Lahai, Social Scientist, and Henry Kangbai, Mining Engineer. Tamba Kpakama and Andrew Keili provided additional support. Mr. Keili, Executive Director of CEMMATS, supervised the local consultant team members. Work was conducted between December 2004 and February 2005, including in-country activities over the period January 3 – February 7, 2005. Front cover photo was taken by Environmental Foundation for Africa (www.efasl.org.uk) and is used with their permission. Programmatic Environmental Assessment: Artisanal Diamond Mining in Sierra Leone v SUMMARY OF FINDINGS The artisanal mining sector of Sierra Leone