SA0R0DICH MC DOOEL import export – Skopje, Todor Aleksandrov no. 11А, 1000 Skopje / Tel.: 02 3066002 Giro Account: 210069235420123 Tax payer number / MK: 4080014541428 Deponent: NLB Tutunska Banka AD Skopje SOCIAL IMPACT ASSESSMENT MINE COMPLEX FOR PRODUCTION OF CATHODE COPPER – “KAZANDOL”, VALANDOVO, MACEDONIA Prepared by: EMPIRIA EMS, Skopje and BIOS PRO, Skopje Skopje, December 2015 Investor: Sardich MC DOOEL import export Skopje, Social Impact Assessment - Mine Complex Kazandol, Valandovo Content Status of Document and Team of Experts ....................................................................................... 5 List of Abbreviations ...................................................................................................................... 6 Executive Summary ....................................................................................................................... 7 1 Introduction ....................................................................................................................... 8 2 Description of the Project ................................................................................................... 8 3 Analysis of Alternatives ......................................................................................................11 4 Stakeholder Engagement ...................................................................................................11 5 Legal and Policy Framework ..............................................................................................12 5.1 Overview of Applicable National Legislation.......................................................................12 5.2 Macedonian Legal Framework for Stakeholder Engagement ...............................................12 5.3 Macedonian Legal Framework for Social Issues .................................................................13 5.4 Macedonian Legal Framework for Labor and Working Conditions .......................................14 5.5 Macedonian Legal Framework for Protection of Cultural Heritage .......................................15 5.6 Macedonian Legal Framework for Expropriation and Land Acquisition .................................16 5.7 IFI’s Policies ...................................................................................................................16 6 Methodology .....................................................................................................................19 6.1 Social Baseline Methodology ............................................................................................19 6.2 Impact Assessment Methodology .....................................................................................20 7 Social Baseline ..................................................................................................................22 7.1 Project Area ....................................................................................................................22 7.2 Land use and Land take ..................................................................................................24 7.3 Demography ...................................................................................................................25 7.4 Economy and Livelihood ..................................................................................................27 7.5 Agriculture ......................................................................................................................29 7.6 Housing, Communication and Community Services ............................................................31 7.7 Health and Social Welfare ................................................................................................32 7.8 Education, Childcare and Gender Issues ...........................................................................34 7.9 Cultural Heritage, Religion, Values and Habits ...................................................................35 8 Impact Assessment ...........................................................................................................36 8.1 Social Management System .............................................................................................36 8.1.1 Construction and Operation phase ..........................................................................36 8.2 Stakeholder Engagement .................................................................................................37 8.2.1 Pre-construction and Construction phase .................................................................37 8.2.2 Operation phase ....................................................................................................37 8.2.3 Decommissioning phase .........................................................................................38 8.3 Economy and Livelihood ..................................................................................................39 8.3.1 Pre-Construction phase ..........................................................................................39 8.3.2 Construction phase ................................................................................................42 8.3.3 Operation Phase ....................................................................................................44 8.3.4 Decommission Phase .............................................................................................48 8.4 Community Health, Safety, and Security ...........................................................................49 8.4.1 Construction phase ................................................................................................49 8.4.2 Operation Phase ....................................................................................................50 8.5 Housing, Communication and Community Services ............................................................52 8.5.1 Construction Phase ................................................................................................52 8.5.2 Operation Phase ....................................................................................................53 8.6 Cultural Heritage, Religion, Values and Habits ...................................................................54 8.6.1 Operation Phase ....................................................................................................54 8.7 Labor and Working Conditions .........................................................................................56 8.7.1 Pre-Construction Phase ..........................................................................................56 Authors: EMPIRIA EMS, Skopje & BIOS PRO, Skopje 2 Investor: Sardich MC DOOEL import export Skopje, Social Impact Assessment - Mine Complex Kazandol, Valandovo 8.7.2 Construction and Operation Phase ..........................................................................57 8.7.3 Decommission Phase .............................................................................................58 8.8 Cumulative Impact Assessment ........................................................................................59 9 Summary of Mitigation Measures .......................................................................................60 10 Social Management Plan ....................................................................................................68 11 Social Monitoring Plan .......................................................................................................72 12 Conclusions ......................................................................................................................75 Appendices ..................................................................................................................................77 Appendix 1 – Significance of Social Impacts ............................................................................78 Appendix 2 – Land use in the local area around the mine complex ............................................80 List of tables: Table 1 – Impact Assessment Criteria ............................................................................................21 Table 2 – Significance Rating Matrix ..............................................................................................22 Table 3 – Significance Color Coding ...............................................................................................22 Table 4 – Demographic image in the municipality of Valandovo .......................................................25 Table 5 – Migrations in municipality of Valandovo, 2014 .................................................................26 Table 6 – Active business entities by sections of activities ...............................................................28 Table 7 – Active business entities by size (state as of 31 st December) ..............................................29 Table 8 – Unemployment figures ...................................................................................................29 Table 9 – Agricultural area by category of use, by municipality........................................................30 Table 10 – Number of individual agricultural households with livestock, poultry, hares and beehives and Number of units, Census of Agriculture 2007 ........................................................31 Table 11 – Irrigated area, Census of Agriculture 2007 ....................................................................31