Multi-Stakeholder Dialogues Matter: A New Paradigm Towards Responsible Investment

Transcription

1

2 Multi-Stakeholder Dialogues Matter: A New Paradigm Towards Responsible Investment A Case Study On An Extractive Gold Mining Site In Ratanakiri Province, Cambodia Copyright 2016 Mekong Partnership for the Environment Mekong Partnership for the Environment: infompe@pactworld.org Development and Partnership in Action (DPA): Multi-Stakeholder Dialogues Matter: A New Paradigm Towards Responsible Investment A Case Study On An Extractive Gold Mining Site In Ratanakiri Province, Cambodia This case study is made possible by the generous support of the American people through the United States Agency for International Development (USAID) - funded Mekong Partnership for the Environment program, implemented by Pact. The contents are the responsibility of Pact and do not necessarily reflect the view of USAID or the United States Government.

3 1 2 Extractives Industry (EI) activities in the Mekong Region have been controversial, causing environmental impacts and conflicts between the private sector and affected communities. Although the mining and extractives sector in Cambodia is still relatively small, in recent years there have been a large number of exploration licenses granted to both local and international companies. Cambodia is on the verge of a major expansion of its EI. However, the legal framework governing mining in Cambodia is still undeveloped and concerns have been raised by communities that there is a lack of transparency in the licensing and Environmental Impact Assessment (EIA) processes. Mekong Partnership for the Environment (MPE) partner Development and Partnership in Action (DPA) improves the ability of their network of NGOs and the public to constructively engage in the development of related EI laws and work toward effective and responsible investment. DPA s work with MPE strengthens the capacity of their network members in corporate social responsibility, Free Prior Informed Consent, and business and human rights to engage with other stakeholders to ensure more effective and responsible investment. DPA pursues dialogues to strengthen multi-stakeholder participation in development decision-making and regional platforms and empowers the public to monitor government and company compliance with EIA laws and guidelines. DPA, a Cambodian NGO, has tackled issues such as building capacity for community leaders, gender equality, natural resource management, Water, Sanitation and Hygiene (WASH), community resilience, food security and social enterprise. and adapted to address emerging issues as they become relevant to the Cambodian context. USAID-supported Mekong Partnership for the Environment is a four-year project led by Pact, an international non-governmental organization, along with consortium of partners, including Internews, Stockholm Environment Institute, Wildlife Conservation Society, East West Management Institute, and others. MPE supports practices that facilitate socially and environmentally responsible development decision-making processes in the Mekong region. We work with partners in Cambodia, China, Laos, Myanmar, Thailand and Vietnam.

4 3 4 Executive Summary Introduction Over the past year and a half, Mekong Partnership for the Environment (MPE) partner Development and Partnership in Action (DPA) has worked to build a platform for effective multi-stakeholder engagement on the impacts of mining activities in Cambodia s Ratanakiri Province. DPA has worked to educate and empower community members to voice their concerns and provide input on mining activities, and has also facilitated productive and collaborative meetings between mining companies, community members and local government. With DPA s support, these stakeholders have established an increasingly trusting and transparent working relationship. The communities, mining companies and local government have all acknowledged the value of DPA s efforts and have recognized that without DPA s efforts, they would not have reached the point where they could constructively work together to make mutually-agreeable progress. DPA s work in the province to establish multi-stakeholder dialogues has influenced decisions made by the mining companies to hold regularly scheduled consultations with the community, open up their facilities to community monitoring, resolve conflicts cooperatively, and delay activities until mutual solutions can be reached. In recent years, Cambodia has witnessed rapid economic expansion through industrialization. Cambodia s Extractive Industry (EI) 1 sector is a relatively new, but a rapidly expanding and prominent industry that has attracted foreign investment from international and regional companies from countries such as Australia, Canada, China, India, South Korea, and Vietnam. 2 As Cambodia is beginning to make investments and extraction, the EI has become a major source of income for the country. Based on the shares of economy as percentage of GDP in 2015, the Extractive Industry comprised 26 percent of the total economy, with 29 percent from agriculture, and almost 40 percent from the service sector. 3 Under the Extractive Industry, mining has been forecasted to have the highest levels of real GDP growth since In contrast, ten years prior, in 2005, the mining and quarry sector only contributed 0.39 percent of the country s GDP. 5 The EI sector has seen a rapid increase in the number of companies in recent years. From 2006 to 2010, 104 licenses were issued to 20 local and international companies. 6 However, the number has sharply increased to 91 companies in 2013, with 139 exploration projects authorized. 7 Inevitably, this growth in the mining sector has and will affect social and environmental conditions in the mining areas as well as the livelihoods of local people. To date, challenges with mining activities have been reported, such as mining companies failing to comply with and respect the rights of affected and indigenous people, a lack of transparency, and inadequate compensation to local people, including having to sell their land at low prices Extractive industries include the mining and mineral sectors, and also exploration of natural gas and oil, petroleum refineries and quarrying for construction resources such as sand, stone and gravel (from 2. DPA s proposal to MPE, and USGS 2006 Minerals Yearbook, Cambodia Cambodian law allows mining companies to be wholly foreign-owned but there are also some companies that are in partnership with local Cambodian companies (ODC website, 2016) briefing/mining-licenses/, Cambodia s Mining Licensing Process Under an exploration license, the company can take samples from within the licensed area but cannot exploit commercially. If the exploration activities show enough quantities to be profitable, then that company can apply for an industry mining exploitation license for the area explored, approved by the Council for the Development of Cambodia (CDC) and issued by the Ministry of Mines and Energy (MME). The application for the exploitation license requires the submission of technical, financial, environmental, social and economic analyses to determine socio-economic feasibility licenses issued to 20 companies licenses issued to 91 companies of proceeding with mining to the Ministry. An Environmental Impact Assessment (EIA) must also be conducted before the mining license is granted, which includes a management plan for minimizing negative environmental and social impacts. The license applicant must also provide financial guarantees and prepare a plan for restoration after the project is over. If legal landholders are displaced or affected by a mining operation, the company must develop plans to adequately compensate them. Law on Mineral Resource Management and Exploitation Enacted July 13, 2001 According to the Strategic Framework ( ) for mining, petroleum and gas, the Royal Government of Cambodia is promoting the Extractive Industry as part of socio-economic development of Cambodia. The Framework aims to regulate and monitor the EI sector in Cambodia. Thus, it creates a space for participation and meaningful discussion with affected communities. Additionally, the Government also encourages the companies to contribute in development of communities where their project site is located. However, access to information and intervention on the issues of affected communities on the ground is limited. 9 A lack of transparency in the issuing of licenses has also been a major issue. Many communities and civil society observers are concerned that mining deals are being agreed upon secretly, and local people are unaware that licenses have been granted in their area until company staff arrive to conduct field tests or set up offices. In addition, the government and mining companies rarely openly and properly share information on mining operations. As one villager in Ratanakiri province stated, They never give us any advance notice or clearly identified us the exact places of their mining activities. They just do their work in hidden way. 10 These challenges often result from limited participation and improper consultation during the Environmental Impact Assessment (EIA) process. 9. Official Statement of DPA submitted to the Government during the 9 th National Advocacy Conference 2015 under the theme Working together to promote social accountability on Land and Natural Resources Governance in Cambodia ; November 3rd, Phnom Penh, Cambodia 10. Interview with the local resident, Mrs. Bopha, during site visit (March 16, 2016)

5 5 6 In addition, gender discrimination has been an obstacle to sustainable development, especially in the developing and under-developed countries, including Cambodia. An MPE-supported study11 shows that women and other marginalized people are often not engaged effectively in the EIA process, but that, if adequately involved, the potential benefits of their participation in EIA are great. Women bring important knowledge of environment and livelihood resources, and details on how these are being affected by infrastructure development. This applies to the EI sector in Cambodia as well. Concessions for Mining in Cambodia Map Data Sources: - Topographical Map 1:100,000 - Base Map 2011 Since 2008, DPA has taken a leading role in facilitating Cambodia s Extractive Industry Social and Environmental Impact (EISEI) network, serving as the secretariat of this national network.14 The EISEI network serves as a knowledge-sharing platform for members to share information related to the environmental impacts of Cambodia s Extractive Industry. The network is comprised of 56 civil society organizations (CSOs), with nine serving as a steering committee. They determine strategic issues, interventions, and develop a plan that is used as a guiding document for the EISEI network. The members of the EISEI network meet every three months. As of June 2016, there are four EISEI network members15 in Ratanakiri province. There is one group of Community Mining Focal Mining Data Sources: - MIME - Companies Website - Other Contract Points (CMFPs) in each of the three provinces.16 To date, there are 40 CMFPs in these three provinces (14 CMFPs each for Preah Vihear and Mondulkiri; and 12 CMFPs for Ratanakiri). There are no specific criteria to become a CMFP except living close to the mining area. DPA s staff stated that many community members were interested in becoming CMFPs so they can learn about the EI, and to help other people in their village. The CMFPs do not receive any monetary benefit but can request support from the EISEI Secretariat when they would like to implement activities such as monitoring the mining companies, receiving training from the EISEI Secretariat, and providing their own echo-training for their own villages. In Cambodia s Ratanakiri province, data from DPA s fieldwork shows a clear need for continued capacity strengthening of CMFPs and local people, trust building and networking among key stakeholders, and a platform for multi-stakeholder dialogues. Additionally, it shows that village women, in particular, have been unable to participate in any processes related to mining for a number of reasons, such as lack of knowledge about the project, language barriers, and duties at home. These obstacles seem to have prevented them from improving their knowledge of the industry and contributing their perspective on its potential impacts. Paper Size: A4 Land Scape Projection UTM Datum WGS 1984 Zone 4BN Scale 1:2,700,000 Legend Government Complete Data (24) Government Data Partial (73) Secondary Source Data (115) Other Data (55) Provinces Updated: 01 December 2014 This case study focuses on Ratanakiri province in northeast Cambodia, home to much of Cambodia s resource wealth, but also one of its poorest provinces. Ratanakiri houses much of Cambodia s biodiversity and protected ecosystems as well as indigenous communities. Two mining companies, Angkor Gold and Mesco Gold, are active in the area; Mesco Gold is one of the five companies that has obtained an exploitation license from MME, and is in the process of starting exploitation in the area of Ratanakiri province s Peak village. Peak is home to one of the unique indigenous groups in Cambodia called Jarai, who are a matrilineal group.12 Even though women nowadays are entitled to participate in decision making and training, cultural pressure on them still exists where some are not allowed by their husbands to participate in meetings.13 This is an important reason for MPE and DPA to be working with the women in the community to mitigate gender-specific impacts of mining (see annex). Ly, N. et at (2015), Assessing Women s Engagement in Environmental Impact Assessments on Infrastructure Projects in Vietnam: Recommendations for Policy and Public Participation in EIA, an Action Research awarded by MPE to Center for Environment and Community Research (CECR), Hanoi, Vietnam ( 12. Schliesinger, J. (2014) Jarai, Ethnic Groups of Cambodia 3 - Profile of Austro-Thai and Sinitic-Speaking Peoples, pp , BooksMango, ebook, CA, USA; and Blair, A. (2015) Indigenous people fighting for their culture in Cambodia: Gold mining threatens rights and livelihoods of local communities, Figure 1: A CMFP provides EIA training at Peak Village in Ratanakiri province, Cambodia The DPA-EISEI Network is hosted and facilitated by Development and Partnership in Action (DPA). DPA-EISEI Network is governed by a nine member steering committee, elected by the network members. The current EISEI Steering Committee includes representatives of Cambodian Human Rights and Development Association (ADHOC), Building Community Voice (BCV), Community Legal Education Center (CLEC), Development and Partnership in Action (DPA), Non-Timber Forest Product (NTFP), Rural Development Association (RDA), Community Peace Network (CPN), Ponlork Khmer and Village Support Group (VSG). The steering committee works together with the DPA-EISEI Secretariat to implement activities in conjunction with the EISEI Network Strategic Plan. EISEI s long term goal is to foster a cooperative and productive relationship between communities, government ministries and the private sector entities involved in and affected by the extractive industry in Cambodia. This relationship is intended to provide a voice for underrepresented communities and to facilitate greater access to information concerning EI operations and related developments with the aim of addressing issues arising from the exploration and exploitation of mineral resources in Cambodia. The EISEI network will provide an arena and framework for this relationship to develop and flourish ( dpacam.org/eisei-background.html) 15. Community Legal Education Center (CLEC) focuses on Legal; Highlanders Association (HA) focuses on Indigenous People Rights, and FPIC; Indigenous Community Support Organization (ICSO)- focuses on Land Titling; and Non-Timber Forest Product (NTFP) focuses on Livelihoods 16. Mondulkiri (East), Preah Vihear (Northwest), and Ratanakiri (Northeast) 14.

6 7 8 Results Primary and secondary data show that several development decisions in the mining sector in Cambodia s Ratanakiri province have been influenced by multi-stakeholder dialogues and civil society input as a result of MPE support to DPA. Mining Companies in Ratanakiri Province Have Agreed to: Purchase land at market price Establish a community monitoring committee Allow for monitoring by community members Establish a grievance system for community complaints Conduct community consultation meetings every 3 months Share more information with village heads and communities Display licenses publicly Specifically, Mesco Gold and Angkor Gold, two mining companies active in the province, have altered their activities and way of doing business to be more transparent and cooperative due to DPA s efforts. DPA s work to establish multi-stakeholder dialogues in the province has influenced decisions made by the mining companies to hold regularly scheduled consultations with the community, open up their facilities to community monitoring, resolve conflicts cooperatively, and delay activities until mutual solutions can be reached. dialogues refer to consultations supported by MPE that include representation from at least two of the following: civil society, private sector, government, and/or media. To determine the extent to which DPA s activities influenced development decisions at the Ratanakiri project site, MPE asked a series of subsidiary questions: a) Have there been any changes in the development decisions?; b) If so, what are the changes and how did they happen?; c) Did the changes happen as a result of multi-stakeholder dialogues and/or civil society input?; and d) Have the changes led to better results or reduced or minimized social and environmental impacts? MPE assessed the impacts of the project by adapting two qualitative research techniques: Process Tracing and Most Significant Change (MSC). Using both techniques, the assessment ran between February to July 2016, using the steps in Table 1 below. Table 1: Assessment Process Methodology 1. Re-visited the project s logic model to confirm objectives and outcomes In March 2015, DPA received a grant from MPE to support a project aimed at mitigating the social and environmental impacts of mining on indigenous people, men and women, in Cambodia. DPA has three objectives: 1. Strengthen capacity of network members and individual NGOs in the area of Corporate Social Responsibility (CSR), Free Prior Informed Consent (FPIC), and business and human rights to engage multi-stakeholders towards more effective and responsible investment; 2. Build trust and seek dialogues between EI focus groups, the selected mining, oil and gas companies, Ministry of Mines and Energy (MME), Ministry of Environment (MoE), and the relevant committees of the national parliamentarians to strengthen multistakeholder participation in decision-making development and regional platforms; and 3. Support and empower the public and active citizens to be able to ensure government and companies comply with EIA law and EIA guidelines. This case study focuses primarily on DPA s third objective and its associated project activities. Under this objective, the expected result, per DPA s proposal is: At least one regional development (mining) project improves its practice in relation to CSR and business and human right to mitigate the social and environmental impacts. These activities contribute directly to MPE s indicator, number of development decisions influenced by multistakeholder dialogues and/or civil society input as a result of USG assistance. This indicator reports on the number of development decisions made at the local, national, or regional level that were influenced through multi-stakeholder dialogues and/or civil society input. Development decisions are defined as decisions that can be made at each stage of development projects, that is, planning and design, implementation, and/or monitoring and compliance. Influence refers to being able to make any change that will lead to better results or reduce or minimize social and environmental impacts. Multi-stakeholder 2. Determined outcome 3 of the project (number of development decisions influenced by multistakeholder dialogues and/or civil society input) is the most significant for assessment 3. Conducted desk review by assessing and documenting actions taken to achieve the selected outcome and developed a timeline of the project since DPA received funding from MPE 4. Identified all outcomes (intended and unintended) resulting from DPA s intervention 5. Conducted MSC to triangulate the data and to assess results by looking at a range of possible explanations for a particular impact, including activities by DPA, MPE and Oxfam and external influences, and drawing conclusions as to how important, if at all, DPA s contribution to this impact have been.

7 9 10 Discussion DPA developed the capacity and increased the knowledge of the community mining focal persons (CMFPs) and villagers on issues such as Free Prior Informed Consent (FPIC), EIA processes, Corporate Social Responsibility (CSR), business and human rights, and EI-related law & policies. DPA supported and empowered CMFPs to become active participants in dialogues and meetings with local authorities and mining, oil and gas companies. DPA-EISEI conducted four trainings for 81 CMFPs since March 2015, as well as two trainings specifically aimed at the women in Peak village. Upon completion of these trainings, all CMFPs were encouraged to use the knowledge and capacity they gained to facilitate echo-training for their own communities, sharing the knowledge and skills they learned at their training, whether formally or informally. The echo-training helped expand understanding of villagers and local authorities on the above subjects while reinforcing the concepts for the CMFPs. According to DPA, 24 participants (from three provinces, Preah Vihear, Mondulkiri and Ratanakiri) used their increased capacity and knowledge gained to advocate for positive changes and influence development decisions in the mining sector. Mr. Sou Sophat, a CMFP from Malich Village, commented on what he learned through DPA trainings: In the past, I did not know anything at all. Even though my personal rights, I don t know what rights I have. But later on I have met with DPA as well as several non-governmental organizations that focused their attention on indigenous people I found that I learned a lot from them, they have trained me and taught me to know a lot such as knowing how to make advocacy, how to demand things from the local authorities, from the government on what we want to have, especially we do know that we are the citizen, we are the power owners, we are the owners of the country. He further described his role as a CMFP as an emissary of his village: We have to apply this knowledge to teach and to disseminate to our community who have not yet understand about rights and laws at all. 17 Ms. Sok Srey Mom, a CMFP from Okan Village 18, also acknowledged that prior to DPA s training she knew nothing about the mining industry how it operates, [its] impacts. But after she participated in many of DPA s trainings as well as meetings it organized, she is now aware of mining law, mining operations, impacts of mining on social and environmental [issues], rights of indigenous people, environmental impact assessment process, how to report, how to monitor mining companies. 19 With MPE funding, DPA-EISEI has built momentum and opportunity for the CMFPs to meet and begin constructive dialogues with two mining companies in Ratanakiri province, Mesco Gold and Angkor Gold. Through these multi-stakeholder dialogue meetings, detailed in Table 2 below, the CMFPs and mining companies discussed the community s concerns about the mining operations and their potential impact as well as the companies standards and practices. The CMFPs put the knowledge and skills they gained through DPA s trainings to use during these meetings to advocate for positive changes to the mining companies development plans. At these meetings, DPA observed that CMFPs were confident to raise their concerns directly and face to face to the mining company, showing positive change in their capacity and knowledge. Moreover, these dialogues allowed the CMFPs to influence the companies policies on community engagement, monitoring and grievance processes, resulting in more inclusive and transparent policies. One CMFP, Ms. Sok Srey Mom, commented that she believes Angkor Gold and Mesco Gold have become more open, allowing CMFPs and villagers to visit their operation sites, because the CMFPs are more knowledgeable, confident to raise questions and concerns, continually following up on their requests so that the mining companies carefully consider them. 20 DPA strengthened the network of CMFPs at the provincial level by organizing meetings among the CMFPs from the three target provinces. 21 In the meetings, the CMFPs discussed mining impact issues, shared experiences and concerns, and developed advocacy strategies and an annual plan. The DPA team stated that they believe that private sector has begun to work more cooperatively with and be more open to the community and CSOs, rather than just working with government officials. When the project started, DPA noticed that there was little information available about the mining companies or their operations. Through the multi-stakeholder dialogues (see Table 2), DPA and the EISEI network have gained the trust and cooperation of the mining companies. 22 Mesco Gold confirmed in an interview that they coordinate with NGOs, including DPA, in order to ensure that their practices are accountable to the communities in which they work, explaining We work with the [local] media over there [in Ratanakiri] and Radio Free Asia, [as well as the NGOs] Ad Hoc and DPA to advertise to everybody involved that they should please feel free to criticize us so that we can improve our practice 23 Similarly, the CMFPs reflected that the Mesco Gold has been responsive to their efforts and those of DPA to create a productive dialogue, postponing planned exploration activity as a result of one of the dialogues until a mutual solution was negotiated (see Annex I) Interview during site visit (March 15, 2016) 18. Okan village is situated in Chey Odom commune, Lom Phat District, Ratanakiri province 19. Sreymom, S. (2016) Telephone interviews on August 26 and August Sreymom, S. (2016) Telephone interviews on August 26 and August Mondulkiri (East), Preah Vihear (Northwest), and Ratanakiri (Northeast) 22. MPE (2016) Interviewed with DPA-EISEI staff using Most Significant Change technique, June Parsons, L. and Lawreniuk, S. (In Press) Corporate Social Responsibility in Cambodia: An Overview of the Company Perspective, Focusing on Agribusiness, and the Mining and Extractive Sector; a report prepared for Development and Partnership in Action (DPA), Phnom Penh, Cambodia 24. MPE (2016) Interviews with Mesco Gold and with the local people, Trip Report, March 13-25

8 11 12 Table 2: Multi-stakeholder Dialogues on Mining in Ratanakiri, Cambodia Date Meeting Objective Results Date March 2015 May 2015 Meeting Angkor Gold, Department of Mines and Energy, District Governor of Ratanakiri, local NGOs, CMFPs DPA, EISEI, Ratanakiri Province CSOs, Angkor Gold Objective To resolve land conflict issues in transparent and participatory way To discuss community engagement and Free Prior Informed Consent Results Affected villagers and Angkor Gold mutually agreed that Angkor Gold would purchase the land from the community at market price 25 CSOs suggested the company develop a clear community engagement plan and consider meaningful public participation from the community to minimize risk and conflict November 2015 DPA, EISEI, Government 28, CMFPs, Angkor Gold To build capacity of participants; to promote and encourage the private sector to use and to integrate concept of CSR; and to strengthen cooperation between CSOs and the private sector Community and Angkor Gold shared experiences and lessons learned relevant development issues; and sought to work together to articulate methods to maximize respect for human rights One CMFP stated that his community has not had any conflict with Angkor Gold or suffered any negative impact of their work since the company always consulted with community members prior to and during their operations in his community October 2015 DPA, EISEI, CMFPs, Angkor Gold To make the voice of the communities heard and to promote positive dialogue for solving potential conflicts Angkor Gold agreed to establish a community monitoring committee to monitor and discuss the issues with the community 26 Angkor Gold agreed to collaborate with the CMFPs to establish a grievance system that allows the affected communities to file any complaints about unusual mining operations or staff activities directly with the company Angkor Gold also agreed to allow the affected communities to visit the mining operation site at any time by contacting the Operational Manager of the company prior to their visit 27 January 2016 DPA, EISEI, Ratanakiri Province CSOs, Angkor Gold, Mesco Gold, CMFPs, Ratanakiri province community members To learn about and address community concerns about communication and community engagement An Angkor Gold representative stated that the company provided water wells with pumps in target communities; it supports health centers, provides an ambulance for Ratanakiri hospital, and supports communities in agriculture production and health care. The company hopes that other companies will follow suit by similarly engaging with communities 29 Angkor Gold and Mesco Gold agreed to provide more information to local authorities (village head) and the affected communities Angkor Gold agreed to display their exploration license to the affected communities for transparency purposes Angkor Gold and Mesco Gold agreed to conduct consultation meetings every three months with affected communities and the local authorities to collect comments and suggestions for the purpose of meaningful public participation DPA (2015) Quarterly Report Q3 FY15 (March June 2015), a quarterly report submitted to MPE, Phnom Penh, Cambodia; Phak Seangly (2015) Villagers, mining firm settle land dispute, The Phnom Penh Post, March 23, 2015 ( 26. DPA (2015) Quarterly Report Q3 FY15 (March June 2015), a quarterly report submitted to MPE, Phnom Penh, Cambodia; 27. DPA (2016) Meeting Minute: Meeting between CMFPs and Mining Company (Angkor Gold), Quarterly Report Q1 FY16 (October December 2015), a quarterly report submitted to MPE, Phnom Penh, Cambodia 28. The event was moderated by Deputy Governor of Ratanakiri province; and participated by provincial Department for Mines and Energy; and provincial Department for Agriculture 29. DPA (2015) Public Forum on Best Practices of Corporate Social Responsibility of Agro-Industry and Mining Companies, DPA Newsletter, Issue 17: October December 2015, p DPA (2016) Meeting Minute: Private Sector Dialogue Meeting on Community Engagement, Quarterly Report Q2 FY16 (January March 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia

9 13 14 Date Meeting Objective Results January 2016 January 2016 DPA, EISEI, Angkor Gold DPA, EISEI, CMFPs, CSOs, Angkor Gold, community members To discuss challenges with the mining sector and their approach to community engagement To discuss community engagement, trust and communication issues, concerns about land security Angkor Gold s Vice President on Social Responsibility stated the company takes human rights seriously 31 Angkor Gold confirmed that it shared the community s concerns about community engagement and acknowledged that trust and communication is a challenging issue Angkor Gold stated that they want to help the communities to get their land rights as it will lead to better development project with minimal impact Angkor Gold agreed to have more open stakeholder dialogue meetings with the affected communities, CSOs and local authorities in order to promote better community engagement at the operation site 32 DPA empowered CMFPs to develop key benchmarks and demand enforcement of EIrelated laws and standards. By providing support and empowering the CMFPs to voice their concerns and perspectives, DPA- EISEI (Secretariat) helps them effectively influence mining and EIA policy and enforcement of related laws and standards by developing benchmarks. At each meeting with the CMFPs, DPA collected inputs from them and collaborated with the EISEI network to present that information from the benchmarks to the government and mining companies in order to push for responsible investment. To date, two benchmarks (see annex) on enforcement of existing laws were created by the DPA-EISEI Secretariat with inputs from the CMFPs. One of them, which was developed in Ratanakiri province 34, has been proposed to the Department of Environmental Impact Assessment (DEIA), under Cambodia s Ministry of Environment (MOE) when the DEIA was considering the EIA report of Mesco Gold. This EIA report, with comments of DPA based on key points from the Ratanakiri benchmark, has been approved in August On March 29, 2016, DPA-EISEI also collaborated with DEIA to review the Guangxi company s Environmental Management Plan (EMP). Although Guangxi s mining site is in Preah Vihear province, it is one of the five exploitation sites in Cambodia. DPA proposed that key benchmarks collected from the CMFPs of the two provinces (Mondulkiri and Ratanakiri, see annex) to be included in the EMP. The benchmarks were intended to help Guangxi improve communication with community members and have a proper EMP to respond to the community s needs. During a field visit to Guangxi, a company representative stated that the company always coordinates with local authority to disseminate information concerning its operations to community members. However, Guangxi has not started the exploitation process, so the final EMP has not yet been shared. DPA believes that if the CMFP s benchmarks are ultimately included in the Guangxi EMP, it will be another example of how DPA s work to establish multi-stakeholder dialogues and increase civil society participation in the EI sector has had a positive influence on development decisions. March 2016 DPA, Mesco Gold, Village and Commune Heads To discuss progress on establishing a working relationship K. Ganga Raju, the Country Head of Mesco Gold stated that DPA helped in facilitating mutually agreed upon compensation between Mesco Gold and the communities DPA has encouraged and supported women s active participation in the EIA process. Village and commune heads agree that their relationship with DPA and other NGOs help influence the government at higher levels 33 To date, with MPE funding, DPA-EISEI has conducted two trainings on EIA processes for 54 indigenous Jarai women from Peak village in Ratanakiri province. Furthermore, DPA has encouraged and provided support for these women to take part in the EIA processes so that they can exercise their rights and make their voices heard. As mentioned, Peak village is home of the indigenous group called Jarai who are a matrilineal group. Therefore, DPA s work with the women in the community is significant. In addition to the trainings, DPA-EISEI organized meetings among affected women and other key stakeholders such as local authorities and the EIA review committee. As well as gaining knowledge on EIA processes through the trainings, these women also had opportunities to network with other stakeholders, such as the CMFPs, and to provide input, which was included into the CMFP s benchmarks and action plan. Women who attended DPA s trainings are more confident in discussing EIA processes as well as their rights and interests. Ms. Sok Sreymom, a CMFP from Okan village, noted that because of DPA she and women in Peak village have better knowledge, skills to discuss with the company Weeks, D. (2016) RE: Invitation for Dialogue Meeting with Communities in Ratanakiri, Message to Angkor Gold Team and DPA, January 23, DPA (2016) Meeting Minute: Meeting with Angkor Gold, Quarterly Report Q2 FY16 (January March 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia 33. MPE (2016) Interviews with Mesco Gold and with the local people, Trip Report, March Developed January JMN (2016) Angkor Gold Receives Environmental Approval for Phum Syarung Mine in Cambodia, Junior Mining Network (JMN), August 8, ( McGrath, C. (2016) Mesco closes on Gold License, Phnom Post, August 9, ( 36. Sreymom, S. (2016) Telephone interviews on August 26 and 29

10 15 16 One woman stated, Today s training is useful; it can help us to protect our land. I have been involved in and attended many meetings and discussions with private companies. 37 Some of the women welcomed more workshops as these are opportunities for them to learn about developments in their community which they are usually unaware of. One women also suggested that the group hold meetings on their own even without NGO assistance. 38 society, DPA-EISEI will continue to encourage and provide support for them to participate in the EIA process when possible in order to protect their rights and interests. While these women have not had any opportunities to participate in the multi-stakeholder dialogues yet, they were able to raise their concerns to the CMFPs at the trainings. The CMFPs, in turn, represent the women at multi-stakeholder dialogues, raising their concerns and offering their valuable inputs whenever opportunities allow. Table 3: DPA-EISEI Recommendations for a Better-Informed EIA Process DPA-EISEI Recommendations Identify and involve key groups of potential affected communities into the process Outcomes Company has agreed to provide more information to local authorities (village head) and the affected communities 42 Although the women who attended both trainings have not had many opportunities to put their newly gained knowledge and skills in action due to language barriers and their roles in their family and Organize separate consultation process with women and children Company has been coordinating with the CMFPs and local NGOs/CSOs who are familiar with the indigenous groups in the area such as the Highlander Associations (HA) to take part in any events that local communities will attend, 43 and HA also focuses their work on impact of mining on gender DPA facilitates CMFPs and affected communities in monitoring mining operation activities and EMP. Have local translator (IP language) to help during the public participation As above DPA supported the CMFPs to develop a monitoring plan and conduct field trips to monitor operational activities, both exploration and exploitation, for both mining companies. To ensure the CMFPs were able to conduct effective field monitoring visits to the mining sites, DPA also provided them with an introduction to the EMP so that they had a thorough understanding prior to the trip. DPA-EISEI also coordinated with DEIA to have the local authority, the Provincial Department of Environment, join the monitoring visit. By joining the site visit, local authorities were made aware of any potential issues raised by the CMFPs and could help ensure that the mining company had a proper mitigation plan in place to address social and environmental impacts. In October 2015, DPA organized a site visit to the Mesco Gold site at Peak village for five CMFPs, along with several NGOs. 39 This visit allowed the CMFPs to learn about gold ore mining operations, and how they can monitor the social and environmental impact of those operations. During the visit, DPA-EISEI observed that CMFPs gained a better understanding of the importance of the EMP. They also witnessed a deepened commitment from the CMFPs to collaborate among themselves to effectively monitor the mining operation in their area; and a willingness to visit the companies at least once a month in order to monitor their activities regularly. Ms. Sok Sreymom observed that Angkor Gold and Mesco Gold have both become more open to allowing CMFPs and villagers to monitor activities at their mining sites now that the CMFPs are more knowledgeable. 40 Additional monitoring visits to the site are planned. DPA has advised independent EIA consulting firms- those actually conducting EIAs on behalf of industry- on participatory methods to ensure proper community engagement. For example, in June 2015, DPA and the EISEI provided key inputs to EIA consulting firm CES Co., Ltd, which was conducting the EIA for Mesco Gold s mining project (see Table 3). DPA s recommendations aimed to ensure a better informed EIA process through meaningful public participation. DPA-EISEI Secretariat recommended that CES Co., Ltd consider undertaking several steps for effective community engagement in Ratanakiri province. 41 Have repetitive process for public participation to ensure all the concerns and risks are included into the EIA report Explain to the affected communities the project information including scope, social and environmental impacts (either use simple tool), so that the communities have enough time to understand the project and its impacts Involve the affected communities to reach mutual agreement and decision made regarding mitigation measures, land use, compensation, social and cultural values. Company has agreed to conduct consultation meetings every three months with affected communities and the local authorities to collect comments and suggestions for the purpose of meaningful public participation 44 Company has agreed to display their exploration license to the affected communities for transparency purposes; 45 Company has agreed for local community to visit the site that have already been explored except the areas that have already been compensated 46 Company has agreed for local community to visit the site aiming for the affected community to learn about their activities; and to work together with the community to develop strategies to support those, including indigenous communities, that are being affected by the mining activities Interview the local women during Gender and EIA Workshop for women at Peak Village, March 17, MPE (2016) Interviewed with the local woman during Gender and EIA Workshop for women at Peak Village, March 17, 2016, Trip Report, March Highlanders Association (HA), Indigenous Community Support Organization (ICSO), Southeast Asia Development Program (SADP), Oxfam America, Asia Indigenous People s Pact (AIPP), and Equitable Cambodia 40. Sreymom, S. (2016) Telephone interviews on August 26 and DPA (2015) Quarterly Report Q3 FY15 (March June 2015), a quarterly report submitted to MPE, Phnom Penh, Cambodia; 42. DPA (2016) Meeting Minute: Private Sector Dialogue Meeting on Community Engagement, Quarterly Report Q2 FY16 (January March 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia 43. DPA (2015) Quarterly Reports Q3 and Q4 FY15; and Q1 and Q2 FY16, quarterly reports submitted to MPE, Phnom Penh, Cambodia; 44. DPA (2016) Meeting Minute: Private Sector Dialogue Meeting on Community Engagement, Quarterly Report Q2 FY16 (January March 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia 45. DPA (2016) Meeting Minute: Private Sector Dialogue Meeting on Community Engagement, Quarterly Report Q2 FY16 (January March 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia 46. DPA (2015) Meeting Minute: Public Forum on EIA Consultation between Peak community, Mesco Goal and Angkor Gold, Quarterly Report Q4 FY16 (July September 2015), a quarterly report submitted to MPE, Phnom Penh, Cambodia 47. DPA (2016) Trip Report: Exposure visit the mining site of Mesco Gold on October 26-28, 2015, Quarterly Report Q1 FY16 (October - December 2016), a quarterly report submitted to MPE, Phnom Penh, Cambodia

11 17 18 After lengthy review, the Ministry of Environment has approved Mesco Gold s Environmental and Social Impact study, clearing the last major hurdle for the company to receive a license to operate the Kingdom s first royalty-generating mine months Conclusion DPA has positively influenced development decisions in Cambodia by strengthening community and CSO engagement in multi-stakeholder platforms and capacity to reduce future social and environmental impacts of the extractives industry. With MPE support, DPA has engaged key stakeholders including: government on EI and EIA policies, private sector on responsible investment in the EI sector, and affected communities on building their capacity to fully participate in the EIA process. In Ratanakiri province, DPA s work to establish multi-stakeholder dialogues has influenced decisions made by the mining companies, Mesco Gold and Angkor Gold, to hold regularly scheduled consultations with the community, open up their facilities to community monitoring, resolve conflicts cooperatively, and delay activities until mutual solutions can be reached. While this case study focuses on DPA s work in one sector in one province, the methodology could be utilized to influence other development projects in Cambodia s EI sector and beyond. 18 months of activities being implemented (Mar 15 - Sept 16) grant received from MPE (Mar 15) DPA has a team of 4 people Government Policies on EI and EIA Communities Capacity to participate in EIA process DPA Organized multi-stakeholder platform Private sector Responsible investment Improved application of social and environmental safeguards in development project Increased social and environmental soundness of development project 2 benchmarks with local community inputs developed 2 trainings to 54 indigenous women on gender and EIA 4 trainings to 81 CMFPs on FPIC and CSR 48. JMN (2016) Angkor Gold Receives Environmental Approval for Phum Syarung Mine in Cambodia, Junior Mining Network (JMN), August 8, ( McGrath, C. (2016) Mesco closes on Gold License, Phnom Post, August 9, ( held platforms for multi-stakeholder dialogue approved EIA report with inputs from communities responsible investment project

12 19 20 Annex 1: Annex 2: Livelihoods of the Jarai Issues and concerns raised by the villagers to MESCO in On 28 December 2014, the company together with the district governor invited 21 villagers to visit the company operation sites and discuss with the company about their concerns and issues related to Mesco Gold. During the meeting, villagers have raised 11 points to the company with the response from the company as below: 1. Ask company to leave the areas (No, the company cannot leave the areas as they already invested a lot of money) 2. Ask company to minimize their operation site areas (Yes, the company will consider to find way in order to narrow down their operation sites) 3. No more pollution on villager s water system (Yes, the company will build a pond to store the water and not to release it to village s stream anymore) 4. No forest clearance and cut the trees (Yes, the company will not cut any trees. In case the company needs wood, we will buy from community) 5. No clear any farm land (Yes, the company will not clear any farm land, but if it has to be then company will discuss and compensate to the owner at market price) 6. Are there any benefits such money for community? (No, there will not be any money share with community, but company will support community development as needed and requested by community) 7. If there any workers from company stole things from community, what will the company do? (The company will responsible for that and fire the workers) 8. Artisanal miners cannot access to mining areas, what will the company do? (The company will allow the artisanal miners to do mine as before outside their operation sites, but the company requires miners to notify them first.) 9. Will there any compensation for community? (No, company will not compensate anything, but to support community development) 10. If there any pollution happened, will the companies responsible or not? (Yes, the company will.) 11. Community would like to have company s license (Yes, the company will copy the licenses and hand it to community, and village chief) The Jarai are a matrilineal group. The basic social unit is an extended family where all females descended from one particular mother, plus their husbands and children. The clan name is transmitted through the female line and the authority within the family rests more with the mother than father. In Jarai society, the girl normally takes initiative in arranging the marriage. They follow the practice of matrilocal residence after marriage so the husband moves into the house of his wife s parents. Jarai agriculture is based on cultivating burnt-over-land and paddies where several varieties of rice are planted. They also grow corn, beans, bananas, papaya, herbs and tobacco. The Jarai have buffaloes, oxen, pigs, chicken and ducks. The meat of the animals is mainly used in religious ceremonies, and occasionally supplementing their diet. Hunting and gathering forest products still adds some food to their daily diet. Deforestation from logging and mining has made it more and more difficult for the Jarai to gather forest products. The Jarai follows animistic folk beliefs. They believe that supernatural powers govern everything in their natural surroundings. Objects in the natural world such as trees, mountains, rivers, are believed to be inhabited by spirits. The Jarai bury their deceased in a graveyard in a forest some distance around the village. 49. MPE (2016) Interviews with Mesco Gold and with the local people, Trip Report, March 13-25

13 21 22 Annex 3: Mondulkiri Benchmark Joint Declaration Issues and concerns The impact of mining exploration and exploitation We represent the community in Mondulkiri, and DPA-EISEI networks, have developed this joint statement that focus on of issues and concerns about the impact of exploration and exploitation of minerals. We, a community and DPA, appreciate the efforts by the government to aim for a regulation to protect the rights and interests of the community as well as the indigenous people need to get and should get to make equality of survival. However, through observation, inspection and information from local communities and DPA still have concerns and challenges as follows: Challenges Challenges from the extractive industries in Mondulkiri province have caused many side effects. Major problem that is being feared by the community include loss of wildlife and forest areas. Indigenous people s lives depend on natural resources. They are important to their livelihoods because they are food sources (vegetables, wild mushrooms, etc.) without having to spend more on living. Besides, the timber provides more income, which can be used to improve their living standards. If the mining companies are to do business in the forest areas that are being used by the community, cutting the trees will be unavoidable. Apart from affecting the forest, another concern is that the forest is the place for worship and also the cemetery of their ancestors. Most communities in the province earn their living through farming, and it is also the source of income for their children s education and for other uses. There are many communities that are losing their land to companies through concessions as well as the extractive industries. This is also a major challenge because land and forests are the most important resources for local people. They are the means of survival and also the legacy for the next generation. The final challenge is related to the consequences of the EI. To retrieve the minerals, the companies need to dig down into the ground, which leaves big and deep holes. If the company fills the pit, then there is no problem. But if the local people have not been warned in advance, it can lead to serious injury or harm to their lives and to their livestock. Challenges outlined above have occurred, and the communities are concerned that they will continue to face these issues in the future to come. Recommendations for Government 1. To monitor the activities of the company and to make sure that they will act according to the set rules 2. Request to the government to conduct field assessment before issuing a license 3. To request the companies to disclose information to the people about activities being plan at the project site 4. The government should not ban the NGOs that trains communities about legal aspect 5. To request the companies to reveal cost and benefit of company s investment (eg how much benefit the government will get?; how much benefit will go to the company?). 6. Before issue a license to private company, the government has to require the company to conduct EIA 7. The government should not issue such a long-term license for land concession, 30 years would be okay Recommendations for private sector 1. Before company conduct any activities in the community, they should consider the local traditions 2. Before conducting any exploration or feasibility study, the company should inform local communities in advance 3. If the company exploits mine, the company please helps to provide school, hospital and road for community there 4. Ask the company to have relationships with the community as much as possible 5. If business are profitable, company should deposit funds in the community to help the elderly, pregnant women, orphaned children 6. To teach vocational skills training to community to create employment to the community 7. To provide latrines, wells and irrigation systems 8. Avoid doing any business that will lead to negative impact to communities 9. Compensation of impact should be based on fair market value (10 September 2015, at Mondulkiri province)

14 23 24 Annex 4: Ratanakiri Benchmark Joint Declaration Issues and concerns The impact of mining exploration and exploitation in Ratanakiri Province We represent a community network in the Ratanakiri province and DPA-EISEI networks. We have developed this joint statement that focus on of issues and concerns about the impact of exploration and exploitation of minerals We, a community and DPA, appreciate the efforts by the government to aim for a regulation to protect the rights and interests of the community as well as the indigenous people, and for them to have equal opportunities. However, through observation, monitoring visits and from information provided by local community, DPA still have concerns on the challenges as follows: Challenges According to the actual number of legally licensed, it is evidenced that extractive industries in the province are active. However, there are also private companies or individuals who do not hold any license and have been implementing illegal mining in the area. Both legal and illegal activities from mining have affected human, animals, natural resources, and many other things. Problem of water quality is the main issue raised by local community because they need water to drink, cook, clean, and so on. When the private sector uses chemicals and its waste is drained into the community s water source, it causes serious impact to natural resources, which are significant to local people. Also, it is known that both mining exploration and exploitation require large size of land in order to get more minerals as well as profits. The need of large size of land leads to deforestation, loss of wildlife habitat, fisheries, foods, and so on. Thus, communities do not have sufficient food for daily consumption due to these losses. On many occasions, the EI also leads to loss of employment and income for the family as they rely on land and natural resources to make the living. Customs and traditions of the community, especially the indigenous communities, have also been violated through illegal actions by the private sector. Influx of migrant workers to become workers in the mining sector has brought insecurity to the local community and the affected area near the mining sites. Recommendations for private sector 1. Project developers must abide by the principles of existing national and international laws 2. Disclosure of information to the community, and do not forbid local community business 3. Build good working relationships with local authorities and communities to improve the participation and decision in the process of discussions on development projects 4. Must recognize values the lives of indigenous communities, particularly the value of forest land, wildlife 5. To provide appropriate compensation to the community when communal land affects land or other land owners 6. Provide opportunities for the community to go to work in the company and supported equally as other workers by each function 7. Develop community dug, build water reservoirs, digging ponds, toilets etc. 8. Construction of water reservoirs and treatment of chemical waste from the mining and exploration activit (land) 9. Should have mitigation plan for any activities that will affect the loss of natural resources (in the river) and water reservoirs, and to have the plan for chemical waste treatment Developed on 19 Jan 2016 in Ratanakiri This one of Ratanakiri was also partially integrated as comments for EIA report for Mesco Gold. Recommendations for Government 1. Reduce concessions for exploration and exploitation of minerals 2. Stop giving exploration licences in the indigenous areas 3. Continue to monitor the company license to make sure that they follow the rules 4. Put pressure on the company to respect the principles and rules 5. Intervention measures to regulate sub-national authorities to respect the role of the indigenous communities, and to avoid threatening them when they express the interest to have access to information on the rights to use their land 6. Establish the legal principle of free prior inform and consent and apply it to local mining projects, and economic land concessions projects

15 25