Western Range DSO Iron Ore Project Volume 5, Part 2.2: Social Impact Assessment / Social Management Plan

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1 Volume 5, Part 2.2: Social Impact Assessment / Social Management Plan Final Report September 2010 Prepared for ArcelorMittal Liberia Limited

2 Revision Schedule Volume 5, Part 1.2: Social Impact Assessment / Social Management Plan September 2010 Rev Date Details Prepared by Reviewed by Approved by July 2010 Draft K Blacklock Social Development Specialist Rachel Flanary IDLG Project Manager T Romanenko Project Coordinator G Hearn Technical Director Sept 2010 Final K Blacklock Social Development Specialist T Romanenko Project Coordinator G Hearn Technical Director This Report has been prepared by URS/ Scott Wilson in association with its sub consultants, theidlgroup Ltd This document has been prepared in accordance with the scope of Scott Wilson's appointment with its client and is subject to the terms of that appointment. It is addressed to and for the sole and confidential use and reliance of Scott Wilson's client. Scott Wilson accepts no liability for any use of this document other than by its client and only for the purposes for which it was prepared and provided. No person other than the client may copy (in whole or in part) use or rely on the contents of this document, without the prior written permission of the Company Secretary of Scott Wilson Ltd. Any advice, opinions, or recommendations within this document should be read and relied upon only in the context of the document as a whole. The contents of this document do not provide legal or tax advice or opinion. Scott Wilson Ltd 2009 URS/Scott Wilson Scott House Alencon Link Basingstoke Hampshire RG21 7PP Tel +44 (0) Fax +44 (0)

3 Report Structure of (ESIA) / Environmental and Social Management Plan (ESMP) Section Report Title Volume 1 Main (ESIA) / Environmental and Social Management Plan (ESMP) Report Volume 2 Volume 3 Volume 3, Part 1.1 Volume 3, Part 1.2 Volume 3, Part 2.1 Volume 3, Part 2.2 Volume 3, Part 3.1 Volume 3, Part 3.2 Volume 3, Part 4 Volume 3, Part 5 Volume 3, Part 6 Volume 4 Volume 4, Part 1 Volume 4, Part 2 Volume 5 Volume 5, Part 1.1 Volume 5, Part 1.2 Volume 6 Volume 7 Legal and Administrative Framework Physical Environment: Baseline Conditions and Impact Assessments and Mitigation Terrain and Soils Baseline Engineering Geological Site Specific Observations in Mine and Infrastructure Areas in Relation to Phase I DSO Hydrology Baseline Surface Water Impacts and Mitigation Hydrogeological and Groundwater Baseline Conditions in Relation to Phase I DSO Groundwater Impacts and Mitigation Air Quality Impact Assessment Noise Impact Assessment Landscape Character and Visual Amenity Assessment Biological Environment: Baseline Conditions and Ecological Impact Assessment and Mitigation Zoological Assessment and Mitigation Botanical Assessment and Mitigation Socio-economic Environment Baseline Conditions and Social Impact Assessment and Mitigation Socio-economic Baseline Social Impact Assessment / Social Management Plan Standards for Implementation of the Environmental and Social Management Plan (ESMP) Mine Closure Plan Page 3 of 100

4 Table of Contents List of Abbreviations Executive Summary of Key Impacts and Related Mitigation measures Key Impacts Key Mitigation Measures Introduction Impact Assessment Approach and Methodology Introduction Methodology Data considerations National Legislation, Standards and Guidelines International Best Practice Assessment of Impacts on the Socio-Economic Environment Introduction Overview Socio Economic Impacts Yekepa Township Yekepa Road Access to Remote Communities Borrow Pits and Quarries Land Take for Mine / Stock Piles and Waste Dumps Mine Operations Plant and Traffic Movements Screening and crushing Mine Boundary Fence Railway Operations Railway Service Road Buchanan Township Buchanan Airstrip Greenhill Quarry Camp All areas influence Cumulative Impacts Trans-boundary Impacts Proposed Mitigations Overview Resettlement Cultural Heritage Consultations and Disclosure Grievance mechanism Access to key resources/physical infrastructure Residual Impacts...56 Page 4 of 100

5 11 Stakeholder Consultation and Disclosure Monitoring Social Management Social Management Reporting Structure Management Structure Appendix 1: References...63 Appendix 2: References (ArcelorMittal Project Documents)...64 Appendix 3: Stakeholder Register...65 Appendix 4: Consultation Register...66 Appendix 5: Consents and Notification Register...68 Appendix 6: Phase I DSO SIA/ SMP Stakeholder Consultations...69 Appendix 7: Human Rights Treaties Ratified by Government of Liberia...97 Appendix 8 Yekepa Estate Management Analysis of Community Infrastructure March Page 5 of 100

6 List of Abbreviations Abbreviation CBO CFSNS CI CLA CLO CFSNS ECOWAS EPA EMPL ESIA FFI FDA GoL IFC MDA MoI NGO NTFP SIA SMP UNMIL WFP Term Community Based Organisation Comprehensive Food Security and Nutrition Survey Conservation International Community Liaison Assistant Community Liaison Officer Comprehensive Food Security and Nutrition Survey (CFSNS) Economic Community of West African States Environmental Protection Agency Environmental Protection and Management Law of the Republic of Liberia Flora and Fauna International Forestry Development Authority Government of Liberia International Finance Corporation Mining Development Agreement Ministry of Interior Non Governmental Organisation Non Timber Forest Products Social Impact Assessment Social Mitigation Plan United Nations Mission in Liberia World Food Programme Page 6 of 100

7 1 Executive Summary of Key Impacts and Related Mitigation measures This Report presents the Social Impact Assessment that forms part of an Environmental and Social Impact Assessment (ESIA) 1 for Phase 1 DSO iron ore mining by ArcelorMittal Liberia Limited at Tokadeh, Gangra and Yuelliton Mountains in Nimba County, Liberia and transportation of such ore for export via Buchanan Port using an existing railway. A detailed description of the project can be found in Volume 1 Environmental and Social Impact Assessment and Environmental and Social Management Plan Main Report. The report describes the methodology adopted and the policies and standards applied to the assessment. Impacts are identified and assessed and mitigation measures proposed. This report should be read in conjunction with the impact register in Volume 1: Main Report and the socio-economic baseline report in Volume 5, Part 1.1. This impact assessment was conducted from the baseline data collected by or on behalf of ArcelorMittal between 2005 and The baseline data has been supplemented with some additional data collected through the Phase 1 DSO ESIA Consultant s field studies during Finally the document includes Stakeholders Register, Consultations Register and the notes of the consultations meetings. 1.1 Key Impacts The following is a summary of the key impacts: The irreversible direct socio-economic impact of the project operations is the involuntary resettlement 2 of farmers from Mounts Tokadeh, Yuelliton and Gangra. It is estimated that farms 4 will be impacted, affecting a number of households that is as yet unknown (since some households have two or three farms at any one time and the final survey is not yet complete 5 ). According to baseline data the average household size of mine affected communities is 5.4, therefore the loss of farms could affect up to perhaps 780 people at one farm per household. The farmers are indigenous Mano and Gio people of Nimba County who have customary use of what are considered ancestral lands, and some also hold title deeds. Although some farms are shifting in nature, the land-take will also affect future, uncleared farms in the households customary areas. This means that the loss of land concerns the whole area, not just plots under cultivation at any one moment. The economic displacement of farmers with few immediate livelihood alternatives, and little or no education, could lead to further deprivation, and long-term hardship and impoverishment, if not adequately mitigated with alternative livelihood provision. The involuntary resettlement of people living in the areas of Yekepa assigned for refurbishment for company usage is expected to affect approximately 92 6 households 1 An Environmental Impact Assessment is defined in the EPML as the systematic examination of a project or activity that may have adverse impact on the environment (GoL, 2003b). 2 Involuntary resettlement in this case refers to economic displacement - loss of access to assets that leads to loss of income sources or means of livelihood as a result of project related land acquisition. Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition that result in displacement (IFC Performance Standards). 3 According to farm listings carried out by ArcelorMittal, noting that no data was collected for farms on Gangra. ESIA/ESMP sampled farms (total 55) indicated an incr`ease of 10, illustrating a possible increase of 22% between 2009 when initial farm listing took place by ArcelorMittal and July 2010 when ESIA/ESMP sampling took place. Incorporating this increase a total of 176 farms possibly will be affected on Mounts Tokadeh and Yuelliton. 4 Farm is defined as a piece of land used for cultivation for either cash or subsistence crops. Permanent dwellings are not situated on the farms. Where there are no tree crops, farms are utilised for only one or two years. 5 Because of the transitory nature of the agricultural system, the final listing of losses has to be done immediately before compensation is paid and resettlement takes place. 6 According to data collected in March 2010 by Yekepa Estate Management (refer Appendix 2). Page 7 of 100

8 (according to baseline data the average household size in Yekepa is 5.6 therefore affecting about 515 people). The displacement of households living in structures for a long period of time, may affect the social structure and continuity of the community in Yekepa, thereby causing social tension, which could influence the wider community. Some of the affected household heads in both resettlement areas are considered vulnerable, and therefore more prone to adverse impacts. The land take is expected to cause permanent removal of 4 indigenous cultural heritage sites, potential disturbance to a further 3 sites through possible pollution of water courses and loss of access to the areas that are used as places of worship on Mounts Tokadeh and Yuelliton. These are considered important for the Animist spiritual group and to a lesser extent the Poro and Sande secret societies. This is likely to have a direct and irreversible impact on those who practice traditional beliefs in these areas. Restricting access to forest areas and subsequently to non timber forest products (NTFP) is expected to have a significant effect on the livelihoods of the communities that are dependent on the forest, collecting NTFP for medicinal usage, food, firewood and for household handicraft materials. The cumulative effect could negatively affect health, further intensify high poverty and low food security levels, cause uncontrolled urban migration, prevent engagement in income generating activities and expose vulnerable groups to additional hardships, all of which collectively could cause social tension, which could be channelled against project activities. Pressure on land resources available for farming and access to forest products are already problematic. Land conflicts are widely reported by communities and the situation may be further exacerbated by the allocation of land to the proposed West Nimba Protected Area. Having little alternative lands may accentuate existing land conflicts. Mine-affected communities around Tokadeh, Gangra and Yuelliton could become impacted by the pollution of watercourses, for which they are dependent for worshipping, fishing, washing and to an extent drinking. Furthermore agricultural lands below the mine boundaries are fed from runoff and groundwater which, if it becomes polluted, may negatively affect crop yields. Water abstraction for project activities in Buchanan and Yekepa Townships, could lead to over exploitation or cause deterioration in the quality of ground water, which also supplies local populations. Inadvertent contamination of water supplies may also take place if sewerage systems and water treatment systems are not monitored. Increased road traffic will potentially pose safety hazards to the local communities. In relation to the railway, the potential safety hazard posed by the movement of trains is considered the prime impact for communities. Noise, vibration and dust blown from uncovered rail cars are other sources of disturbance, though relatively minor. Sanniquellie Hospital is predicted to experience above-acceptable noise levels, but this can be mitigated by a noise barrier. The health of affected communities is considered likely to be impacted negatively through influxes of job seekers to Yekepa and Buchanan. Living in cramped conditions may cause deterioration in public health with communicable diseases proliferating due to poor provision of water and sanitation facilities in the town areas. Furthermore, owing to the nature of mine and port employment requirements migrant workers will predominantly be male. A concentrated male population will probably result in increased sexual activity, leading to possible sexual abuse, exploitation and gender-based violence, exacerbating the high prevalence of such in society already. High risk sexual behaviour, with little or no public health education, could lead to an increase in Sexually Transmitted Diseases (STDs) and Human Immunodeficiency Virus (HIV) with long lasting irreversible implications. Page 8 of 100

9 Expectations of employment and socio-economic gain from the operations were found to be high in all communities. If expectations are not met, disaffection and tension, and possible reprisals against ArcelorMittal, may take place. This would be further aggravated without accurate and timely information dissemination with the affected communities. Economic opportunities will arise from project operations through direct and indirect employment of skilled and unskilled workers. This in turn will generate a climate for petty trading and service provision, within local communities where the operations are taking place. With more people in a better financial position, earnings may be spent on schooling and health for families. Improving infrastructure of haul roads and service roads to provide access to previously remote communities is likely to stimulate market trading and income-generating opportunities, and enable communities to access health and high school education facilities which are generally not available in rural areas, thus impacting positively on human and personal capital. Under the MDA obligations, improving the hospital/clinics in Yekepa and Buchanan will have a positive impact on the availability of health facilities for communities. Likewise provision of schools for ArcelorMittal dependants and the wider community, as well as the provision of vocational training will contribute positively to improving literacy rates and the skill capacity. 1.2 Key Mitigation Measures The following is a summary of the key mitigation proposals: It is established that as a result of landtake for mining the project will involve involuntary resettlement of the project-affected farms and the relocation of the cultural sites. The preparation and implementation of the Resettlement Action Plan and Cultural Heritage Management Plan and the associated activities are currently being implemented by ArcelorMittal separately, and therefore are not part of this study. To ensure that the incomes and living standards of those affected by resettlement are restored it is recommended that the Community Development Programme is implemented in parallel to resettlement activities. A framework of the Community Development Programme encompassing agriculture intensifications and small and medium enterprises development initiatives has been devised by the Phase I DSO Consultant and it is provided in Volume 1, Appendix 5. All resettled households should be considered eligible for inclusion into the Community Development Programme. It is important that the affected are provided with the alternative land to allow them to continue agricultural activities that are consistent with previous land use activities. Grievances redress mechanisms in relation to the resettlement activities have been established by ArcelorMittal as part of Resettlement Action Plan and communicated to the affected households and the relevant authorities. In order to mitigate for any possible disputes and conflicts during the Resettlement Action Plan implementation process, different grievance redress levels are as follows: (i) ArcelorMittal Community Liaison Office; (ii) Local Chief and District Authorities; (ii) Superintendent s office. Other project-related grievances among the local population will be addressed in the same way. A robust monitoring framework is required to ensure the monitoring of the Resettlement Action Plan implementation. The overall internal monitoring procedures should include (i) internal performance monitoring, and (ii) impact monitoring used to assess the effectiveness of the Page 9 of 100

10 plan supported by the Community Development Programme in meeting the needs of the project affected households. The former will check that physical progress has been made in execution of required actions. Narrative reports on progress should be produced on a monthly basis. The latter will be used to assess the effectiveness of the RAP and Community Development Programme in meeting the needs of the project-affected households. The baseline socio-economic data and census information gathered at the beginning of the project will be used to monitor the changes. Reporting should be conducted on an annual basis. All records from these activities should be kept on site and made available to external monitoring parties and relevant regulatory bodies on request. A robust evaluation framework is crucial to assess whether compensation and other measures to restore the living standards of project-affected households have been properly designed and carried out. This should be completed by an external independent third party. The mitigation for the other identified impacts should include - Supervised access rights should be agreed between ArcelorMittal and communities to forest areas within the safety boundaries on certain days of a given month to allow communities to harvest medicinal plants, firewood and forest products for other usage. Road infrastructure improvements and building of markets deemed important in the mitigation of impacts. These measures will stimulate market trading and income-generating activities of project affected communities in the mine area and in Buchanan. Improved communication will contribute to offsetting the loss of access to forest products enabling communities to access products elsewhere or provide an opportunity to use alternative means. Public health awareness campaigns in relation to hygiene and the spread of communicable diseases should be planned and carried out on an on-going basis for all the households in Yekepa and Camp 4 and project affected communities identified in Buchanan [including ArcelorMittal households in Buchanan and Yekepa]. It is recommended that the programme should build on existing public health campaigns performed presently by the company in relation to malaria prevention and control. Access to health facilities for mine and port-affected communities should be supported by a weekly/two-weekly bus from the communities to the hospital facilities. Awareness programmes for ArcelorMittal staff and communities within the concession area should be conducted for relevant issues such as nature conservation, health and hygiene, using local Non Governmental Organisations, Community Based Organisations, churches, schools, youth clubs which are long standing in the community It is recommended that a railway and service road safety campaign takes place. Schools should be given special consideration. Safety awareness should be carried out using a local Non Governmental Organisation (NGO) building on previous awareness exercises carried out during the railway rehabilitation phase. An awareness campaign plan should be derived. It should identify target audiences and suitable means such as radio, songs, role-plays and street theatre, all of which are context sensitive (appropriate to the rural environment and undertaken separately in built up areas along the railway line including Buchanan) in order to transfer the safety messages successfully. Once the campaign is formulated an implementation schedule should be detailed and rigorous monitoring and evaluation take place of implementation to ensure that the campaign is appropriate, on schedule and achieving the required needs. Page 10 of 100

11 For the potential pollution of surface water resources and in view of the existing uncertainties about availability of water resources it is recommended that an assessment should take place, identifying existing water hand pumps and the condition of the water in the wells, streams and creeks in each mine and port-affected community. Based on the results provision for additional hand pumps should be made, taking into consideration the population size of each community and the amount of water needed. Routine monitoring of drinking water quality should take place and the results shared with communities in a transparent way. ArcelorMittal should use media such as radio and the ArcelorMittal information boards [previously erected during Phase 0 rehabilitation] to broadcast and to keep the public informed on a regular basis. Frequent consultations should take place between an augmented team of Community Liaison Officer/Assistants and communities to disseminate accurate and timely information and to keep the communities abreast of developments. Added to this, community groups such as youth groups and religious leaders should be used so as to forge robust relationships within the communities. ArcelorMittal should expand its Community Grievance Procedure and a Community Liaison Plan put in place to include individual and community grievances for all project-related aspects. Central to all these issues is the need to maximise the acceptance of the project by local communities who may be directly and/or indirectly affected. It is crucial that a wellorganised public relations programme is set up during the pre-operation stage and that reliable, easily accessible public information is provided throughout the project. The community liaison officers should keep in daily contact with the project-affected communities. Any concerns that may arise during construction should be brought to the CLO s notice and the appropriate actions instigated by the relevant Project Manager. As an additional livelihood restoration strategy for the mine-affected communities it is proposed to establish a rural handicraft development initiative, as part of the Community Development Programme specifically targeting vulnerable groups, such as women and elderly people. Based on observations of artisanal handicraft work in the area, the handicraft spectrum could encompass cloth weaving, grass/basket weaving, carpentry/wood work, tiedying, sewing, catering and baking etc. However, a comprehensive review of materials available, existing craft work and possible markets is required. The social development staff will be required to oversee the implementation of the Social Management Plan. It is important that social development staff of the relevant community liaison offices include representatives of the indigenous groups. Mano speaking capacity is important for the office in charge of mining activities (Yekepa). Page 11 of 100

12 2 Introduction This Report presents the Social Impact Assessment that forms part of an Environmental and Social Impact Assessment (ESIA) 7 for Phase 1 DSO iron ore mining by ArcelorMittal Liberia Limited at Tokadeh, Gangra and Yuelliton Mountains in Nimba County, Liberia and transportation of such ore for export via Buchanan Port via an existing railway. A detailed description of the project can be found in Volume 1 Environmental and Social Impact Assessment and Environmental and Social Management Plan Main Report The report describes the methodology adopted and the policies and standards applied to the assessment. Impacts are identified and assessed and mitigation measures proposed. This report should be read in conjunction with the impact register in Volume 1: Main Report and the socio-economic baseline report (Volume 5, Part 1.1). This impact assessment was conducted from the baseline data collected by or on behalf of ArcelorMittal between 2005 and The baseline data has been supplemented with some additional data collected through the Phase 1 DSO ESIA Consultant s field studies during Finally the document includes Stakeholders Register, Consultations Register and the notes of the consultations meetings. 7 An Environmental Impact Assessment is defined in the EPML as the systematic examination of a project or activity that may have adverse impact on the environment (GoL, 2003b). Page 12 of 100

13 3 Impact Assessment Approach and Methodology 3.1 Introduction A social impact assessment has been undertaken to identify the specific characteristics of the project and of the social features likely to be affected by it. The fieldwork in relation to the development of the work was carried out between May and July The fieldwork encompassed a review of baseline data and pertinent documents to define the socioeconomic profile of the project affected area, identification of the project-affected communities and key stakeholders, and carrying out of consultations and interviews. Where possible data verification through small scale sampling of agricultural land use, residential patterns and population density was also performed, however the Phase 1 DSO ESIA Consultant cannot take responsibility for any inaccuracies or omissions in the baseline data. 3.2 Methodology The methodology adopted for the assessment of impacts includes: a review of existing baseline conditions taking into account existing operations and their corresponding impacts; consultations with local and national stakeholders to identify significant impacts; an assessment of the nature and scale of impacts that may be caused by the construction and operation activities of the proposed project; a description of mitigation measures to be adopted to avoid, reduce or compensate for adverse and significant impacts; An assessment of the residual impacts after mitigation measures have been implemented. The methodology is described in more detail below: The baseline data was analysed to establish the socio-economic context of the project affected area. The consultations with the key project stakeholders (Appendices 3, 4 and 6) were conducted to ascertain an in-depth knowledge of impact potential. The negative impacts were individually assessed for their severity using the qualifier of high, moderate and low impact (see Volume 1, Table 6 and the Impact Register Table 7 of that document). Once the severity of the impacts was established, mitigation measures were identified to avoid, minimise or offset the impact. Knowledge gaps were identified and some suggestions were made as to how these might be filled. Stakeholders were identified by the Phase 1 DSO ESIA consultant based on whether they were recognised as being project-affected (directly or indirectly), those who had an interest in the project; those who may affect the project negatively and those who were involved in the project as direct or indirect employees. Qualitative research methodology was used to enhance and verify the quantitative data in the baseline document, so as to clarify potential impacts, to fill information gaps in the baseline and to define possible mitigation measures, as perceived by affected communities. Qualitative techniques such as interviews and observations were used. Page 13 of 100

14 Interviews with groups and one-to-one consultations with key informants were carried out using a semi-structured interview technique. A translator assisted when required and a Community Liaison Assistant from ArcelorMittal facilitated most of the consultations. Interview notes were taken as near verbatim as possible and salient points were extracted and analysed in relation to other consultations and studies (Appendix 6). Observations were made of the physical environments in which communities were located, for example community dynamics, topography, infrastructure, and livelihood activities. Observations were also made of the Phase 0 rehabilitation activities currently taking place to determine how these are impacting communities presently. Collectively, the findings formed a basis for the impact analysis and identification of potential mitigation measures. The following sampling was performed to fill some of the identified gaps: Farms on Mounts Tokadeh and Yuelliton A rapid assessment of the farms within the mine boundary of Mounts Tokadeh and Yuelliton was conducted, in order to ascertain land use intensity and to observe if any significant changes had taken place since the baseline survey (see Volume 5, part 1.1, Appendix 6). The rapid assessment chose three areas to conduct the surveys, two of which were on Mount Tokadeh, where there are most farms, and the third was on Mount Yuelliton. Township of Yekepa Twenty percent of the total number of households in area EU and EB8 in Yekepa were surveyed using the ArcelorMittal socio-economic survey proforma (Volume 5, part 1.1, Appendix 1). From this a profile of the residents was established. A survey of Area P in Yekepa took place to determine the population density and the main characteristics of households, using the ArcelorMittal socio-economic survey proforma for affected households (see Volume 5, part 1.1, Appendix 1). Area P was selected as it was reported to be the most dynamic area of Yekepa in terms of experiencing influxes of population. The survey results were compared against the same house numbers interviewed in the November 2008 survey (Volume 5, part 1.1, Appendix 4). 3.3 Data considerations Translators used in the consultations were usually community members and may not have always translated messages clearly. When possible the Community Liaison Assistant or other community members corrected the translator. It was clear from discussions that sometimes communities found it difficult to conceptualise project outcomes that would happen in a year or more, as the immediate future was more relevant to them. This was particularly the case where Phase 0 rehabilitation activities were currently taking place, which were more of a concern to them. When discussing impacts with stakeholders it was found that communities often tended to focus on expected negative impacts and overlooked potential positive ones. It was found that some communities were not prepared to discuss matters related to cultural heritage. 8 Areas EU and EB had not been surveyed by ArcelorMittal because the areas were in the process of being refurbished and were partially occupied by ArcelorMittal directly-employed staff who, as comparatively high income earners, it was felt, would distort socioeconomic baseline results making them not give a fair representation of the context. Page 14 of 100

15 Consultations endeavoured to include women as much as possible; however it was found that few women attended consultations and those who did attend often did not voice opinions as much as male counterparts. In order to offset this, a separate forum was given for women to discuss potential impacts, but women were still more reluctant than men to participate in interviews or consultations. The interviewer that performed the household interviews had collected survey data previously (2008/2009) and had undergone training and orientation with ArcelorMittal. Data collected was quality-assured by the Consultant and a separate ArcelorMittal Community Liaison Assistant, using a 20% re-survey. Results found that there were interviewee biases and errors that were generally related to interviewees inability to recall ages of their family members. Other errors were related to interviewer misinterpretation. As a result of this, findings were modified and despite these weaknesses, the information collected from interviews and consultations in this process is consistent with other data gathered from the area, and is considered sufficiently robust for an impact assessment to be made. The survey of Area P of Yekepa was intended to be a one hundred percent survey; however, as it was conducted in the daytime, not all the residents were at home. During the data analysis some errors were found in the survey sheets meaning that data from these particular households were excluded, thus rendering 71% coverage of the area. Nevertheless a profile was determined from the findings. Page 15 of 100

16 4 National Legislation, Standards and Guidelines The project will have a range of potential socio-economic impacts. Therefore, a review of the pertinent national legislation has been conducted in order that the mitigation recommendations are in accordance with the national legal requirements. In the course of project implementation ArcelorMittal Liberia will be responsible for ensuring that project meets national environmental requirements as well as international best practice The following pertinent national legislation has been reviewed in relation to the following social impact assessment issues: Social Impact Assessment: A Social Impact Assessment is requisite under the Minerals and Mining Law, Part 1, Title 23, Liberian code of Laws revised (April 3, 2000) and stipulates that an Environmental Impact Assessment study is necessary. Section 8.4 states special attention shall be paid to any adverse effects on nearby communities. Land Tenure. The legislation surrounding land tenure remains undecided as the Government of Liberia recently established the Land Reform Commission and outcomes of such are being awaited. The most significant being Community Rights law under which the status of Customary Land Tenure will be clarified, at present there is significant legal confusion over customary rights with various contradictory laws. Land rights: The majority of affected people impacted by the land take have customary use of the land. Under national legislation customary users do not hold legal title to the land, therefore have no rights under the law and occupy the lands at their own risk, unless arrangements for such are detailed in the concession agreement. Nevertheless, prior to granting the concession agreement it is expected of the concession holder (Government of Liberia) to negotiate with the respective legal representatives of the communities. The consultant is unaware if discussions took place, however lack of such could have implications for resettlement activities. This stated property law recognizes tenancy by suffrage by which a squatter may have the permission of the owner without a lease. All squatters who had sought permission from their respective city, district, and township authorities have a right to notification before they are removed and Common law squatters are usually given 30 day before eviction. Due consideration of these laws will be required when people are requested to move off lands that fall within the mine boundary, remembering that forced removal of people contravenes fundamental human rights. This highlights the requirement that resettlement activities should be implemented with appropriate disclosure of information, consultation and with the informed and meaningful participation of those affected. Baseline data indicate that some farmers on Mount Tokadeh hold title deeds to their land. Legislation requires that compensation for the lands must be paid under Article 24(a) to the title deed holder and these farmers are protected by Article 24 of the Constitution. This may have implications for compensation for the land take and carefully managed land acquisition is required and necessary legal representation of the affected people provided. Some heads of household who will be affected by the land take are female. The descendent Estate Laws of Liberia (The Inheritance Law of 2003) grants to both widows of customary and statutory marriages one third inheritance rights of the estate of her deceased husband regardless of whether or not she helped him to acquire property. Resettlement activities should acknowledge and give due consideration to female ownership. Page 16 of 100

17 It is recommended that the International Finance Corporation (IFC) World Bank Group Performance Standards (detailed in the following chapter) are followed for all resettlement activities for best practice. Compensation: According to the Forestry Development Authority (FDA) and the Ministry of Agriculture compensation requires payment for live tree crops to affected farmers. It is recommended that the International Finance Corporation (IFC) Performance Standards (detailed in the following chapter) are followed for compensation activities for best practice. If there is significant difference between Government regulations and IFC requirements, the highest standard should prevail. In every case, total compensation packages must be equivalent to the replacement value of assets lost or affected as part of the project. Cultural Heritage and Cultural Societies: Liberia is Party to Convention on Biological Diversity (CBD). Article 8(j) states that each contracting Party shall, as far as possible and as appropriate: Subject to national legislation, respect, preserve and maintain knowledge, innovations and practices of indigenous and local communities embodying traditional lifestyles relevant for the conservation and sustainable use of biological diversity and promote their wider application with the approval and involvement of the holders of such knowledge, innovations and practices and encourage the equitable sharing of the benefits arising from the utilization of such knowledge innovations and practices. Legislation referring to Cultural Societies under Liberian Code of Law, 1956 Vol I Aborigines law Chapter 23 Regulation of conduct of Aborigines (article 68 and 69 Revised Rules and Regulations Governing the Hinterland of Liberia, 7 January 2001 for Ministry of Internal Affairs; [420] state that cultural societies such as porror or sandae are permitted but no session of these societies shall extend beyond a period of three years. Prior to establishment of any primitive cultural society a permit shall be obtained from Department of Interior if it is established in County area and from the District Commissioner, if it is to be established in a district Hinterland. [421] Unlawful societies The Human Leopard Society is declared an illegal organisation, and membership therein is punishable by imprisonment of not exceeding twenty years. Homicide committed in accordance with beliefs or in the course of the rites of the society shall be punishable in accordance with the provisions of the penal law. The Neegee Society, Susha, Toya, Kela, Yama- Yama, and all secret societies the purpose of which is to commit criminal acts are declared illegal. Section 88 of the Environment Protection and Management Law 2002, mandates the Environment Protection Agency (EPA) to protect natural heritage sites in the natural environment, which are of national importance to the people of Liberia; economically, culturally and environmentally. The agency is to issue guidelines and prescribe measures for the management and protection of cultural elements, objects and sites. Draft Conservation and Wildlife Management Law, (in the process of being made legislation) mandated in Section 5.7 the Forestry Development Authority (FDA) shall incorporate Traditional Protected Areas such as bush schools/sacred society bush, ancestor homes, and areas left for windbreaks and watershed protection on community forest lands as components of the protected forest areas network, by legislation or regulation, except that these areas are to be managed by the communities according to a collaborative management approach. The Constitution of the Republic of Liberia (1986) Section 3 of Article I provides for religious freedom stating: Page 17 of 100

18 All men have a natural and inalienable right to worship God according to the dictates of their own consciences, without obstruction or molestation from others; all persons demeaning themselves peaceably, and not obstructing others in their religious worship, are entitled to the protection of the law, and the free exercise of their own religion; and no sect of Christians shall have exclusive privileges or preference, over any other sect; but all shall be alike tolerated; and no religious test whatever shall be required as a qualification for civil office, or the exercise of any civil right. In formulating the Local Government laws positive elements of tribal customary law and procedure have been retained and most of these laws respect the traditional cultural patterns of tribal society. The necessity of retaining these tribal customary laws lies in the fact that perhaps half of the Liberian people still live in rural areas. Cultural practices and traditions remain essentially the same as those of their ancestors. The Poro and Sande Societies are two of the most important traditional institutions to which government accords full recognition and protection. The political, social and spiritual significance of these institutions transcends tribal boundaries. The government has reduced the length of time for sessions of these societies to prevent conflict with regular national school system, to allow members to attend regular school. Whilst the cultural societies are permitted under legislation, lack of registration of societies with the necessary authorities may have implications for the negotiations for movement of designated cultural sites and the proposed financial compensations associated with this. Secret Societies that commit criminal acts, or work as agents for other secret societies to commit them, are outlawed. The 1956 Aborigines Law quoted above makes reference to ritual killings that were thought still to occur at that time, but modern day reports suggest that some secret societies are still used for settling debts, though not of course involving homicide. Animism is a philosophical, religious or spiritual belief that souls or spirits exist not only in humans but also in animals, plants, rocks and natural phenomena. The concept that spirits exists in nature forms an integral part of Liberian traditional indigenous religious beliefs and therefore has the right to protection under the constitution which supports freedom to worship. Tribal Indigenous Groups: National legislation does not officially recognise any minority ethnic group. Human Rights: Human Rights inherent to all humans and protected under international law are a series of safeguards to protect individuals and communities from state sponsored abuse. Founded upon the (non-binding) universal declaration of human rights (1948) international human rights law is comprised of a series of individual treaties, conventions, declarations and guidelines that direct the extent of the state s responsibility to protect and promote human rights. States must agree to be bound by these treaties through a process of first signing and then ratifying in order for the prescriptions of the treaty to become legally binding. International law is complementary to domestic legislation. On agreeing to be bound by international law a state is obliged to absorb its prescriptions into domestic legislation. The core Human Rights treaties that Liberia has ratified are referenced in Appendix 7. Furthermore, the Constitution of Liberia (Chapter III) recognises the Fundamental Rights of the Individual. Further, a Human Rights Commission is being established through the Independent National Human Rights Commission Act of 2005 in Liberia. Trans Border In-Migration: The Bureau of Immigration and Naturalization (BIN) stipulates that there are no visa requirements for Economic Community of West African States (ECOWAS) citizens visiting Liberia for a period of 90 days. Work permits for ECOWAS citizens Page 18 of 100

19 are however required for working visits and they are granted by the Ministry of Labour for a period of 3 months. Baseline data indicate that trans-border in-migration of job seekers is already taking place and some non-liberians are already engaged in contract work. When Phase 1 operations start up trans-border migration may increase. Borders are considered fairly permeable and will not serve as a deterrent to opportunistic job seekers however enforcement of work permit requirements may prevent an influx. Page 19 of 100

20 5 International Best Practice The international best practice that has been referred to in the SIA preparation includes the World Bank Safeguard Policies, the IFC Performance Standards and Industry-Specific Guidelines as follows: World Bank Safeguard Policies The World Bank s environmental and social safeguard policies are regarded as a cornerstone of support to sustainable poverty reduction. Environmental Impact Assessment - Operational Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment - is one of 10 environmental, social and legal safeguard policies of the World Bank. The purpose of EIA is recognised to improve decision making, to ensure that project options under consideration are sound and sustainable, and that potentially affected people have been adequately consulted. This policy is considered to be the umbrella policy for the World Bank s environmental safeguard policies. Given the Liberian context and the project context, the following safeguard policies have been referred to: Involuntary Resettlement (World Bank OP/BP 4.12); Management of Cultural Property (World Bank OP 11.03). The World Bank s requirements on Information Disclosure are detailed in The Disclosure Handbook The World Bank OB/BP on Involuntary Resettlement requires projects to avoid or minimize involuntary land taking. If such cannot be avoided, displaced persons need to be meaningfully consulted, compensated for lost/damaged assets and assisted in restoring or improving their living standards and livelihood. The policy requires that if involuntary land taking and resettlement become necessary, a clear plan for compensating and assisting displaced persons be prepared and substantially completed prior to the commencement of civil works. The World Bank OP on Cultural Property is based on the acknowledgement of cultural resources as sources of valuable historical and scientific information, as assets for economic and social development, and as integral parts of a people s cultural identity and practices. The World Bank policy as stated in Operational Directive (OD) 4.50 is to: (a) assist in protecting and enhancing cultural property through specific project components and (b) decline to finance projects which significantly damage cultural property, and assist only those that are designed to prevent or minimise such damage. World Bank OP promotes their preservation and seeks to avoid their elimination. The World Bank policy on Public Consultation and Disclosure follows specific procedures: EIA reports will be presented to the Government of Republic of Liberia and serve as a background document for approval by the Environmental Protection Agency (EPA). In accordance with OP/BP 4.01, the draft EIA Report and Land Acquisition Plan (LAP) needs to be made available in Liberia at a public place accessible to project-affected groups and local NGOs. International Finance Corporation (IFC) Performance Standards (PS) The following IFC PS and Guidance Notes on Social and Environmental Sustainability have been referred to: Page 20 of 100

21 Performance Standard 1: Social & Environmental Assessment & Management System Performance Standard 2: Labour and Working Conditions Performance Standard 3: Pollution Prevention and Abatement Performance Standard 4: Community Health, Safety and Security Performance Standard 5: Land Acquisition and Involuntary Resettlement Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management Performance Standard 7: Indigenous Peoples Performance Standard 8: Cultural Heritage Equator Principles Equator Principles (2003) have been referred to as ArcelorMittal had announced that the Company would use the Equator Principles as Guidelines. Under Equator Principles an environmental assessment must address: Protection of human health and cultural properties Socio-economic impacts Land acquisition and land use Involuntary resettlement Impacts on indigenous peoples Cumulative effects and Community participation in project design and management International Association for Impact Assessment International Association for Impact Assessment (2003) produced Social Impact Assessment guidance documents; Social Impact Assessment International Guidelines and Principles. Guidelines are integrated within six principles focused on: understanding local and regional settings; dealing with key elements of the human environment; using appropriate methods and assumptions; providing quality information for decision making; ensuring that environmental justice issues are addressed; and establishing mechanisms for evaluation / monitoring and mitigation. Page 21 of 100

22 6 Assessment of Impacts on the Socio-Economic Environment 6.1 Introduction A Social Impact Assessment (SIA) has been undertaken to identify the specific characteristics of the project and of the socio-economic issues likely to be affected by the project. It is based on the baseline data collected between 2005 and 2009, public consultation conducted in May July 2010 and visual assessment of the affected sites conducted in An Impact Register, provided in Volume 1, ESIA/ ESMP Main Report (Table 7) is to be read in conjunction with this Section. This register is used to summarise perceived potential impacts and define anticipated residual impact after mitigation. The three levels if impact, as shown below, are derived from two main parameters of severity and probability. The derivation of the anticipated impact level remains qualitative. However, the majority of the ESIA team members and an independent observer have contributed to, reviewed and commented on the development of the final assessments of impact level. 6.2 Overview Sections 6 8 and 10 discuss the potential social impacts of Phase I DSO mining operations. Both positive and negative impacts are considered. Mitigation measures are discussed in Section 9. The Section should be read in conjunction with the Socio-Economic Baseline document, Volume 5, Part 1.1 and Volume 1 ESIA/ ESMP Main Text. The impacts are grouped according to the Phase 1 DSO project elements and activities. Impacts are identified Page 22 of 100

23 using the methodological framework applied to the baseline data (Volume 5, Part 1.1) as follows: Demography including Ethnic Composition and Disadvantaged Groups; Health; Education; Access to key resources/physical infrastructure; Social capital; Land Tenure and Agriculture; Economic Activities and Income sources; and Cultural heritage. The preparation and implementation of the Cultural Heritage Management Plan and associated activities are currently being implemented by ArcelorMittal as a separate exercise, and therefore are not part of this study. For the purpose of this report, project-affected communities are defined as those communities who will be affected either directly or indirectly by project activities. They are listed below according to project element. Mine affected communities 9 Sehyigeh (and Vavampa), Makinto (Tokadeh hamlets), Zolowee, Gbapa, Bonlah, Lugbeyee, Kanlah, Yuelliton Hamlets, Bolo, Camp 4 and Yekepa Township 10. In the absence of definitions for mine-affected communities at the port of Buchanan in the Baseline, the Phase I DSO ESIA Consultant defined these as follows: Port affected communities Motown, Bakonbli, Giah Town, Weagabli, Sakpawea Town, Sayo Town, Giabli and Balcony. 11 Railway Corridor Settlements of varying sizes are located within the right of way of the 255 kilometre railway. ArcelorMittal Social Action Plan of the Railway Right of Way Clearance and Rehabilitation Buchanan to Yekepa (September 2008-June 2009) states that settlements within a 28 metre band (14 metres from the centre of the railway line on either side) are considered project-affected. The main towns along the railway corridor beyond Buchanan are Grebo, Zowienta, Kitoma and Sanniquellie and are considered project-affected. Added to this, a large number of settlements are also in the railway corridor and are considered affected communities. The include: Kilometre 6 settlement; Kilometre 12 settlement; Compound 3; Gaye Morebli; Goffa, Boa-Glay; Jessie Moses; Neeblohnta; Mission; Gatagair s Town and Greenhill Quarry hamlet; Karmie; Gbedin Station; 9 Defined by ArcelorMittal s community liaison team during the baseline surveys. 10 Exact names or spelling of names may vary as they differ according to the source. 11 Exact names or spelling of names may vary as they differ according to the source. Page 23 of 100

24 Tonwee and Gbapa. 12 There are other smaller communities in the railway corridor that are project-affected, and the above mentioned is not a definitive list. Greenhill Quarry affected communities (Greenhill Quarry as a semi permanent railway maintenance camp) Greenhill Quarry Hamlet and Zowienta 6.3 Socio Economic Impacts Potential Impacts are discussed in relation to each project element and activity Yekepa Township Involuntary Resettlement in relation to house refurbishment to accommodate ArcelorMittal employees Refurbishment of designated areas EB, EU, C and D of Yekepa to accommodate ArcelorMittal Liberia staff will require non ArcelorMittal staff, who are currently living in some of the houses to be evicted 13. A rapid survey of areas EU and EB found that although refurbishment had started in 2009, not all the houses had been vacated and the residents were either direct employees, non direct employees, Government officials or other non ArcelorMittal staff. Of the 10 houses sampled in EB and EU, 7 were occupied by non ArcelorMittal staff. A survey carried out in March 2010 by ArcelorMittal Estate Management found that a total of 92 households will require resettlement in areas EB, EU, C and D. The consultations conducted by the Phase I DSO ESIA Consultant revealed that during the time of LAMCO operations, Government employees lived in areas EU and EB. Furthermore, it was evident from consultations with Government employees that ArcelorMittal was expected to provide housing for them, reasoning that as they were working on the concession area, they were therefore entitled. It was noted that some of the ArcelorMittal staff living in EU and EB are drivers although it was understood this area had been designated to managers. The former may need to be relocated to another area. Consequentially, this may cause dissatisfaction amongst direct employees. As resettlement of EA took place in 2008, the community is aware of the provision of compensation and there was a feeling that the compensation paid would not adequately restore livelihoods. There is a high risk that residents will not be willing to move as they want to stay in Yekepa to be better positioned for possible economic benefits. 12 Exact names or spelling of names may vary as they differ according to the source. 13 Although some of the non-company staff occupying some houses in Yekepa have no legal right to do so, IFC Guidelines and other international norms do not distinguish on this basis Page 24 of 100

25 Some of the residents needing to be resettled are indigenous Mano and Gio people. Consultations indicated that since the civil war and the end of LAMCO operations, the community of Yekepa has changed from a purpose-built mining community into a community of its own. Whilst baseline data show that the town is ethnically diverse, Nimba indigenous people sometimes suggest that they have more entitlement to the area, and underlying tensions appear to be present. Involuntary resettlement of residents is considered an irreversible direct impact and of high significance if unmitigated. The consequences of such may generate mistrust and tension. Some of the affected household heads in both resettlement activities are considered vulnerable and therefore prone to adverse impacts. If resettlement mitigation does not consider international guidelines, impact on the affected parties could be significant and have long term implications. Access to key resources/physical Infrastructure Power Generation: ArcelorMittal staff will be provided with power, running water and sewerage, i.e. those residing in areas EA, EB, EU, C and D. This will improve the standard of living. However, this provision of service will be confined to a designated area only and nearby communities will remain without provision as discussed in earlier paragraphs. The risk of conflict and tension may arise because of the dissatisfaction between those who do not have access to physical infrastructure and those who do. Community consultations disclosed that there was a fear that Yekepa would become like South Africa with a divide between privileged and unprivileged communities. It is understood that provision of electricity for a larger area of Yekepa is planned to take place during Phase 2 operations. Provision for street lighting throughout the town may have the positive impact of reducing crime rates. Water Abstraction/Sewerage Treatment/Waster Water Treatment Refurbishment and Operation: Increased water abstraction could over exploit or cause deterioration to ground water, which is also used by the local population. Deterioration in quality could result in waterborne communicable diseases. EA, EU, EB, C, D and the semi permanent camp will be provided with the refurbished sewage collection network and wastewater treatment infrastructure. Other areas of Yekepa will continue to use the LAMCO system, which is functioning at a minimum level. As the present system discharge is uncontrolled and the networks are decaying, the risk of contamination of groundwater and surface water is high, especially as the population increases. Waste Generation and Management /Waste Disposal Demography: An increase in population and activity in the area will add to the type and quantity of waste products which, if not collected and adequately disposed of, runs the risk of environmental degradation and contamination. This could cause deterioration in the health of the community. In addition, an increase in disposable income and therefore the means to purchase more items could result in the creation of more waste. Unsecured waste dumps could attract human scavenging if not fenced off, which could lead to possible injury and the spread of diseases. The odour and visual impacts of a waste dump may affect the communities living nearby if a suitable site is not chosen and operated properly. Page 25 of 100

26 Health: Lack of adequate waste disposal facilities may lead to uncontrolled and unsuitable waste management practices, polluting water courses and contaminating drinking water supplies. Traffic in Yekepa Demography: As mining operations start and the population grows, road traffic (ArcelorMittal and public) will increase in Yekepa. Increased trans-border trading and mine related supply chains will also contribute to the traffic in and around the town. Furthermore, the mine will be operating 24 hours throughout the week with workers commuting from Yekepa to the mine site. Increased traffic may become hazardous to pedestrians, residents of Yekepa, Camp 4 and other dwellings along the road. The communities raised their concerns that the speed of company vehicles was already a hazard to residents. Health: The health facilities in Yekepa may experience an increase in accidents referred for medical treatment in relation to road traffic accidents, especially as it is more likely that the number of motorcycle taxis, which are a cheaper transportation option, will increase. Although anticipated to be of low impact, the amount of noise and dust created by traffic, particularly during the dry season, may also be detrimental to the health and well being of residents living along the road. Economic Activities and Income Sources: Opportunities will arise for entrepreneurial activities to set up car/motorbike taxi services as the demand for transport grows with the increase in population and particularly from those with a disposable income. Baseline data indicate that motorcycle taxi services have increased considerably in recent years. With increased taxi services there is likely to be improved communication benefits for people using local markets to trade in. Opportunities will also increase for roadside enterprises and petty trading selling refreshments and produce. Yekepa Project Start Up Demography: As mining activities start up, ArcelorMittal will require a workforce of direct and indirect employees. Opportunistic job seekers from outside the area, including across the border in Guinea and Ivory Coast, will come to Yekepa in the hope of finding work. Baseline data indicate that the population of Yekepa has not yet experienced any significant increase. However it is envisaged that when DSO operations begin Yekepa will experience an influx of people. They will either live with friends or relatives or set up their accommodation in or around the outskirts of the town and most probably, as predicted by the community, in Camp 4. An interview with approximately 40 job seekers waiting outside ArcelorMittal office confirmed that men were already coming from as far as Ganta, Buchanan, Saclapea, Monrovia, Kakata and other towns and were residing with either family or friends. Based on lessons learnt from mining operations elsewhere, this impact is considered probable with the possibility of having long term effects, such as compounding already poor sanitary conditions and limited water resources, and other socio-demographic impacts discussed under the following paragraphs. Urban migration is likely to take place with job seekers travelling to Yekepa from rural areas. This is likely to include former farmers from the Mount Tokadeh, Gangra and Yuelliton communities whose land has been taken for the mining operations. This will likely have the cumulative impact of a decrease in agricultural activities, which could lead to food shortages, further exacerbating an already vulnerable food security profile in the county according to baseline data. Urban migration will result in elderly family members, who are considered Page 26 of 100

27 vulnerable, being left in rural communities to look after themselves, exposing them to food insecurity. Furthermore, an influx of people may further change the ethnographic characteristics of the community of Yekepa and Camp 4. Baseline data indicate that Yekepa and Camp 4 are ethnically plural, and consultations demonstrated strong ethnic tolerance. However a change in ethnic composition within a fragile post conflict environment cannot rule out possible ethnic tensions arising, which could impact negatively on the social structure of the community. This may be accentuated if the newcomers successfully gain employment or are seen to be getting preference for employment over local community members. Anecdotal evidence indicated that some people in Yekepa were already not content with the number of people employed as the core start up staff by ArcelorMittal were from counties other than Nimba. Furthermore it was found that some people from Guinea were working as contractors in Yekepa, commuting each day across the border, with no official permissions or restrictions. Health: As discussed under demography an increase in population residing in cramped conditions and the likely impact on the provision of water and sanitation could lead to deterioration in community health. Access to clean water is considered a fundamental human right and a change in access, within a built up area with high population density may become a source of conflict. Furthermore, as the population will be predominantly male, living away from family homes, there could be an increase in Sexually Transmitted Diseases (STDs) and Human Immunodeficiency Virus (HIV) as prostitution and extra marital relationships take place. Consultations with ArcelorMittal employees revealed that as their living accommodation only had one bedroom the housing was not considered conducive to family life, therefore encouraging employees to live away from their families. This impact is considered indirect but it could be severe with long-term negative effects. Risks of trans-boundary epidemic disease transmission such as influenza and meningitis are possible with the proximity of the Guinea and Ivory Coast border. Similarly as the project will employ expatriates the disease spectrum of the workers may be different to the Liberian context. The ArcelorMittal hospital is in the process of being rehabilitated under the MDA obligations. Therefore the provision of health facilities will be comparatively good for employees (whose benefits include medical health support for themselves and dependants) and for those non- ArcelorMittal staff willing to pay for conventional medical treatment. Baseline data demonstrate that a large number of non-arcelormittal staff are using the facilities and are coming from as far as Guinea for treatment. It is therefore evident that the hospital is contributing to the improvement of the medical health of the community, which could have long-term positive impacts on the infant mortality rate, death rate and general well being of the local population. Conversely, increased demand for medical services may put pressure on the facilities to meet the demand to an acceptable standard. Noise and dust pollution may increase in the town as a result of expansion, but this is not considered to be significant if suitable controls are in place. Education: ArcelorMittal direct employees are entitled to benefits such as payment of school fees of dependants. This will expose more children to education and potentially improve literacy levels and educational attainment provided that the quality of provision is maintained to an acceptable standard (and in conformity with provisions of the education laws of Liberia to applicable standards on education in Liberia as per the MDA agreement). In addition, other Page 27 of 100

28 people financially benefiting from operations may be in a better position to afford school fees and other costs associated with schooling. Collectively this may impact positively on levels of education generally but specifically for girls, who are usually overlooked when there are insufficient funds for the education of all the children of a household. Educating girls can in turn have positive effects on the health and education of the girl s family when she grows up and has her own family. The training of workers in areas of skilled, technical, administrative and managerial positions as per the MDA agreement will be a positive long-term investment in the human capital of Liberia. Establishing and operating vocational and advanced training programmes possibly through the vocational training centre in Yekepa, which is currently operating at a low standard will contribute to long-term investment in the human capital of Liberia. Perception of employment opportunities may deter students from pursuing schooling or they may cut short their education, thus adversely affecting levels of attainment of education. Conversely, employment opportunities may encourage some students to continue their education therefore achieving higher skill level for the possibility of gaining a better job. It is difficult to predict the most probable outcome but it is possible that both scenarios may take place. Access to Key Resources/Physical Infrastructure: As some areas of forest will no longer be accessible, access to wood/charcoal for cooking may become scarce and could force the cost of fuel to rise. ArcelorMittal will continue to maintain the main road between Yekepa and Sanniquellie. This infrastructure maintenance will have the positive impact of providing better access between business centres allowing more people to trade goods in markets. This will also encourage trans-border trading which, according to baseline data, already takes place on a small scale with free access (unofficially) across the border on market days. Social Capital: Consultations revealed that Yekepa is described by its residents as being peaceful with a mixed ethnic population. The crime rate, according to baseline data, is low. As the mining operations start up the social fabric of Yekepa will evolve with possible beneficial and negative aspects. As discussed earlier, it is recognised that there will be in-migration to Yekepa from within and beyond the county boundaries. Consultations with border immigration officials revealed that people from Guinea [ethnic Mano and Gio] are already working as contractors in Yekepa and they cross the border daily for work commitments. According to the Bureau of Immigration and Naturalisation there is no visa requirement for ECOWAS 14 citizens, however if an ECOWAS citizen is engaged in work in the formal or non-formal sectors a work permit is required. This legislation exists and may deter some people from crossing the border to work however consultations indicated that enforcement was not taking place. Disaffection may arise between Liberian indigenous Manos and Gios and non Liberian Manos and Gios, if employment is given disproportionately to non Liberians. There are high expectations of employment and economic gains consequent to ArcelorMittal operations. Consultations revealed that the local community is aware that the level of skills locally are comparatively low and may minimise their chances of employment for technical components of the operations. Although there is a certain level of understanding of the 14 The Economic Community of West African States (ECOWAS) is a regional group of fifteen West African countries, founded on May 28, 1975, with the signing of the Treaty of Lagos. Guinea, Ivory Coast and Liberia are part of ECOWAS. Page 28 of 100

29 limitations, there is a risk if expectations are not met, disaffection amongst the community may arise leading to crime, antisocial behaviour, increased gender-based violence within households, and security issues especially within a fragile post conflict context. Baseline data indicate that the patterns and frequency of crime show close correlations of employment and non-employment. Economic Activities and Income Sources: Employment opportunities will be created by the mine operations for skilled and unskilled labour. This will also open up opportunities for selling agricultural produce, petty trading and service provision in Yekepa and other mine communities along the Sanniquellie - Yekepa road. This has been recognised as being a positive impact in all community consultations. Increased income will contribute to a better standard of living, increased wealth and the means to afford education and medical treatment. Conversely increased income can be mismanaged and mis-spent on items such as alcohol and drugs. Evidence shows, that it is common for households in subsistence-based economies to divert cash from longer-term investment to short term consumption. Furthermore large commercial operations e.g. mining often exacerbate income disparities of the local population. This could have the consequent effect of tension between those who are not employed and employees both direct and indirect. Although Yekepa and the mine-affected communities have been predominantly dependent on agricultural activities with few other alternative livelihoods, the introduction of mining will change the economic environment over time having the cumulative impact of making the area mono industrial. Income generating activities may become dependent on the mining operation. Economic contributions to the local, regional and national tax revenue, through Personal Income Tax (PIT), taxation charges applied to ArcelorMittal operations as well as income tax generated from commercial enterprises trading in the area will collectively provide revenue to the Government of Liberia and if invested appropriately contribute to the development of the country. The indirect impact of economic improvements surrounding a commercial operation can cause inflation in the cost of food, rent and transportation. Yekepa has already experienced a gradual increase in prices of some items, which may be attributable to external factors of food and fuel prices rising globally. However it is likely that certain price increases will take place as a consequence of the mining operations. Those with sufficient incomes will be able to afford the price increases whilst others will not. Thus the benefits and costs are unevenly shared which could lead to discontent amongst the local population Yekepa Road Access to Remote Communities Access to Key Resources/Physical Infrastructure: Baseline data indicate that the road which extends from Yekepa and accesses Kanlah, Lugbeyee and Bonlah is in a poor state of repair and lacks bridge infrastructure. ArcelorMittal uses this road when working with project-affected communities and to access specific parts of Mount Yuelliton and Gangra. The road will not be used as a haul road to access the mine sites during Phase 1 DSO operations, however as these communities are identified as affected communities and will suffer from the land take, it is essential that they have road access to markets as well as opportunities to find alternative livelihoods if some of their productive capital is to be taken from them. Page 29 of 100

30 Improved road infrastructure access is likely to have long term positive socio-economic impacts on these communities. Market trading and income generating opportunities will improve. Better infrastructure will enable communities to access health and High School education facilities which, according to baseline data, are not locally available. Health: Increased noise and dust (in the dry season) on the road may occur with increased traffic which may be detrimental to health and well being of households whose dwellings are close to the road Borrow Pits and Quarries With the exception of the Gangra/Yuelliton to Tokadeh haul road construction (not assessed here) during the Phase 1 DSO operations it is understood from ArcelorMittal that quarrying will be minimal and only used for maintenance of the railway line and local roads and for pavement and aggregate for concrete works. Health: Although during Phase 1 activities quarries will be used minimally, the noise and dust from blasting activities may be detrimental to the health and well being of household members whose dwellings are close by. The process of mining creates new bodies of standing and stagnant water, which will encourage the mosquito population to grow, potentially increasing the proliferation of malaria. Access to Key Resources/Physical Infrastructure: Nearby dwellings may be structurally affected by the vibration and any flyrock from blasting operations for crushed aggregate Land Take for Mine / Stock Piles and Waste Dumps Land Tenure and Agriculture: According to baseline data, agricultural land (farm locations are shown in Figures 1 and 2 for the two DSO mining areas) will be permanently taken from an estimated 144 farmers who have had customary use of the land for an extended period and some affected people in Zolowee and Gbapa hold title deeds Indicated in the data collected by Atkins , however it is quoted that title deed ownership is ambiguous. Page 30 of 100

31 ArcelorMittal Liberia Limited Figure 1: Location of farms on Mount Tokadeh in relation to the mine boundary set June 2010, based on data of farm listings conducted by ArcelorMittal 2008/2009 Figure 2: Location of farms on Mount Yuelliton in relation to the mine boundary set June 2010, based on data of farm listings conducted by ArcelorMittal 2008/2009. (Farm listings on Gangra were not obtained by ArcelorMittal during the farm listing process ) Volume 5, Part 1.2: Social Impact Assessment / Social Management Plan Page 31 of 100 September 2010

32 Without full and proper mitigation through a comprehensive Resettlement Action Plan, supported by a fully resourced Community Development Programme, the landtake/involuntary resettlement will have a permanent and irreversible impact, considered High, on farmers whose sole livelihood, according to baseline data and consultations, is based on farming activities and land based subsistence livelihood. It will result in a reduction in access to productive assets that will be serious for some households. Furthermore as traditionally quarters of land are allocated to a male head of family and from which the quarter is then subdivided to family members as necessary, the result of the landtake could potentially eliminate an entire (extended) family s productive capital. Consultations in Sehyigeh and Lugbeyee revealed that those affected by the landtake wanted land allocated to them elsewhere to farm in order to maintain a land based livelihood rather than receiving compensation. Concerns were raised as to how households would be able to sustain themselves in the future with a one off payment and left with no livelihood and income security. Landtake from the mining activities as well as the land allocated to the East Nimba Nature Reserve and the proposed West Nimba Protected Area will put pressure on land available for farming elsewhere. This may cause land conflicts within communities. The risk of this happening is considered relatively high as concerns over land conflict were being reported in consultations in Bonlah and Kanlah. Without the mitigation effects of a fully resourced and sustainable Resettlement Action Plan, removal from lands contravenes basic human rights and the risk of tensions created from removal could be detrimental, and could create long term tensions between the community and ArcelorMittal. Future consultations with affected communities need to be mandating free, prior and informed consent for all operations that may impact on communities. Recent consultations demonstrated that communities were aware of the landtake on Mount Tokadeh, Yuelliton and Gangra. However there was a strong sense of dissatisfaction because some farmers (Zolowee, Lugbeyee) had stopped farming as they had been asked to by ArcelorMittal but no further action had taken place [owing to the economic slowdown]. Risk of tension in the communities could further arise from lack of information/communication and misinformation. Demography: The landtake from farming communities will cause some urban migration as people s traditional livelihood is taken away with few alternative income generating opportunities available to them. This impact is considered long term and cumulative as it has the potential of permanently changing indigenous people s traditional way of life and breaking their traditional affiliation to the land. According to baseline data the landtake is predominantly from Mano and to a lesser extent Gio people both of whom are the two indigenous ethnic groups of Nimba County. The impact of changing access to land and resources of indigenous people may cause conflict and affect the social fabric of the communities, particularly since people have been living in the area for a long period and, according to consultations, consider the lands ancestral. As these groups are indigenous to Nimba, they may feel that they have equal right to the lands and the resources as the Company, having traditionally owned and occupied them. Within this group of directly affected people, there are those who are considered vulnerable, such as women heads of households and elderly people. These groups of people raised particular concerns during consultations as they said they had no other means of generating an income to feed themselves as family members had moved away, and who would have usually provided a support mechanism to them. If particular attention is not given to vulnerable groups the impact on individuals could be severe. Health: Considerable reliance on medicinal plants from forest areas was found in baseline data surveys and consultations. Initial ethno botanical studies found that most medicinal plant Page 32 of 100

33 species were found to be reasonably evenly distributed inside and outside of the footprint areas. However 11 species (of a sample of 52) will be negatively impacted from the mining operations. Five of these occur infrequently in the concession area and are vulnerable to habitat loss and do not tolerate disturbance well, and the remaining 6 although they have larger populations in the concession area they are intolerant of increased disturbance regimes and are slow-growing. The studies found that the plants were used for a variety of ailments and were chosen over western medicine generally because it was cheaper or more effective (see Volume 5, Part 1.1, Appendix 5). Prevention of access to forest areas will have High impacts on those who use medicinal plants for traditional health remedies and for those who cannot afford conventional medicine and live at a distance from medical facilities and other sources of medicinal plants. According to baseline data food security is considered very low with a high percentage of people classified as highly vulnerable. With the landtake from the farming and the proximity of East and West Nimba conservation areas, the risk of further exacerbating the already volatile food security situation in the area is high with possible irreversible impacts on the health of the farming communities and potentially those in urban areas, who rely on local produce. This is of particular concern as Nimba has been cited as having one of the highest chronic malnutrition rates in the country, (CFSNS, 2006). The impact of mining related pollution and sedimentation of watercourses downstream may have public health implications on mine-affected communities. These watercourses may also pollute the agricultural lands being farmed, which are not directly affected by the mining land take. Monitoring is essential, and the results should be disclosed appropriately. The risk of dissatisfaction in relation to water quality is high, and as consultations revealed many water sources in the mine-affected villages are presently described as being spoiled. Access to key resources: Preventing access to forest areas will stop people who are forest dependent from being able to collect wood, which in baseline studies is regarded as a key resource and the predominant fuel used for cooking. It is considered a severe impact, as people will either have to buy fuel for cooking, which is likely to be beyond their means, or walk further to a different place to access wood. Experience has shown that the latter may have secondary impacts on hindering or preventing children, especially the girls, from attending school because of the additional time required to perform household responsibilities. Likewise communities will have limited access to clean water from the streams that are used for drinking and washing. It was reported in community consultations that water pumps in villages produced insufficient amounts of water for the population of the community or the well water was spoilt thus forcing them to take water from the streams running from the designated mine areas. Watercourses may become polluted as a result of mining activities affecting communities downstream. These impacts are considered permanent and will be discussed in the following paragraphs. Economic Activities and Income Sources: Baseline research demonstrates that hunting for bush meat continues to take place and is cited as a means of livelihood. The loss of access to the areas where hunting is taking place in the mine exclusion zone will prevent people from hunting. Whilst this is considered good for conservation purposes, for hunters who depend on it as a livelihood and households who depend on bush meat as a source of protein there will be a negative impact. Limited access to streams where people fish will also negatively impact on food security and livelihoods. There will be loss of access to NTFP such as rattan which communities extensively use for furniture, and other forest products used for household use and fishing. Page 33 of 100

34 Cultural Heritage: A direct impact of the landtake will result in permanent removal and or disturbance to culturally significant sites. Removal of access or damage to cultural sites will have an impact on indigenous people s ability to practice their traditional beliefs, which are deeply embedded in the local heritage. This risks contravening the fundamental human right to worship 16 and risks infringement of national legislation. According to baseline data the cultural sites which will be affected, can be classified into three groups: areal 17 (animist belief in relation to mountains and to a lesser extent Poro and Sande); linear (creeks/streams) and site specific nature (e.g. Poro and Sande sacred bushes, sacred rocks). Although site-specific locations may fall within the boundary line and will suffer permanent removal, sacred creeks which are linear in nature and flow beyond the boundary may become polluted as a consequence of the mining activities thereby negatively impacting on the ritual site lower down the mountain. Spiritual beliefs that require access to spatial areas on Mounts Tokadeh, Gangra and Yuelliton for practice will be impacted because they will no longer have freedom of movement on the mountain sides. According to baseline data, the site-specific cultural locations that fall inside the mine boundary and will therefore be directly impacted are: Site Specific Cultural Locations These sites are not deemed moveable therefore the magnitude of the impact is irreversible. Gbapa o o Sacred Waterfall (Gebay Stream water fall) Sacred Waterfall Yiti (Stream waterfall) Zolowee o o Leopard Paw Rock Ancestor gravesite Cultural Sites of Linear Nature Other sites beyond the boundary may be impacted if there is pollution of water courses. If the creeks become polluted the impact is irreversible for continuation of spiritual worshipping. Makinto / Sehyigeh o Sacred Bee Creek Lugbeyee o Sacred Creek name unknown Bolo o Sacred Creek (Nyagbayea) 16 Article 18 of the International Covenant on Civil and Political Rights right to freedom of thought, conscience and religion, this include the right to manifest his religion or belief in worship, observance, practice and teaching. Article 15 of the International Covenant on Economic, Social and Cultural rights states the right to engage in a cultural life 17 Areal is defined as an unenclosed space used for worshipping and is not site specific. Page 34 of 100

35 Cultural Sites of Areal Nature Animist members from the communities Sehyigeh, Makinto, Zolowee, Gbapa, Bonlah, and Lugbeyee whose place of spiritual practice is areal on Mount Tokadeh, Yuelliton and Gangra, will be affected by the landtake. According to baseline data, Animists are prepared to move from the area in which they have been practicing their spiritual belief, as long as another area is secured for them and a ritual led by the Zoe, who is the recognised spiritual leader of a community, takes place to grant safe passage. Taking away an area in which the spiritual group has been worshipping since birth is considered severe. However as the group deems their place of spiritual practice moveable the impact is minimised as long as an appropriate ritual takes place. According to baseline data the extent of the Poro and Sande groups cultural practices in the forest areas remains unknown. However consultations revealed that the groups identify with the areas of Mounts Tokadeh, Yuelliton and Gangra, despite having sacred bushes close to communities. Understanding that the mountain sides are used for practicing cultural beliefs, these groups will be impacted in a similar way to the Animist group, as the area of movement will be restricted. The Poro and Sande groups in the communities of Sehyigeh, Makinto, Zolowee, Gbapa, Bonlah, and Lugbeyee will be affected. However baseline data indicate that the groups deem their place of spiritual practice moveable, and therefore the impact can be minimised as long as an appropriate relocation ritual takes place. Individuals who believe in the spirituality of natural features such a creeks and rocks will be impacted by permanent removal of the sites. The communities whose ritual sites are affected are Gbapa or Bolo, and Zolowee. Sites which may become impacted at a later date because of pollution are Makinto, Lugbeyee, and Bolo. Unless there are chance finds, no other sites identified in baseline data will be impacted because they are beyond the area of direct influence of the operations. However baseline data reveal that there are uncertainties and spatial inaccuracies in identified locations. It is recommended that further research is carried out to consolidate and add to previous findings so as to avoid any unmitigated disturbances. There is no baseline data on cultural heritage sites in the railway corridor or at the port of Buchanan. The sacred creek shown to the Phase 1 DSO ESIA consultant during the fieldwork in the Port of Buchanan concession area will not be affected by the Phase 1 DSO activities Mine Operations Economic Activities and Income Sources Community expectations of the potential for employment in ArcelorMittal mining operations are high. Part of the mining work force will comprise unskilled labour. However the high technical component of modern day mining will necessitate a specific skill set, which is likely to be beyond the capacity of the local community. Furthermore the work force complement will be far smaller than that of LAMCO days. The repercussions of unmet expectations could generate mistrust and tension in the communities. Demography: Mining operations create fewer employment opportunities for women than for men. Given that the land take for the mining operations will disrupt and displace agricultural activities, in which women are engaged, the income generation by women will be severely disrupted. These changes have a tendency to concentrate the economic power of households in the hands of men and increase women s dependence on their husbands or male relatives. The loss of female income in a household can exacerbate social problems common to the Page 35 of 100

36 context such as gender based violence, lack of public health and education which consequently impacts negatively on family life. Baseline data indicate that gender equality in Liberia is lacking. It is therefore considered likely that women will have fewer opportunities to take up employment and those employed within the mine operation could face discrimination and sexual harassment. Health: Mining operations can be hazardous, and can generate a high rate of accidents. This could have negative impact on labour relations within the Company and have consequential negative repercussions in the labour trade union ArcelorMittal workers Union and amongst communities Plant and Traffic Movements Health: The noise and vibrations of plant and traffic movements in the mine site could impact negatively on the well being of nearby communities and or dwellings. If health and safety regulations are not adhered to they may cause traffic accidents with pedestrians in the mine area. Movement of trucks carrying ore may accidentally spill their loads into nearby streams causing pollution to watercourses from which communities take their water Screening and crushing Screening and crushing operations will generate noise, vibration and dust affecting ambient air quality and possibly affecting the well being of local communities Mine Boundary Fence A fence marking the mine boundary periphery will prevent local populations entering mining areas. Erection of a fence may cause disaffection in the community unless the community is previously consulted. Communities who would have previously been free to roam the area may feel this to be a violation of their rights. Furthermore unless patrolled, the fence may be cut and broken in to, which may incite tension between the company and the local residents, which could result in consequent repercussions. A fence will restrict access to areas where certain medicinal plants can be found. This is considered all the more important in view of the poverty levels of the households and their inability to meet medical health costs of conventional medicine as well as the transportation costs to hospitals. Further it was noted by one of the communities that although they had endeavoured to grow some of the medicinal plants in the valley, they had failed to survive because of the difference in soil. With the loss of access to some forest areas availability of firewood will be restricted Railway Operations Health and Safety: People who have been used to crossing and walking on and alongside the railway line prior to railway operations may be at risk, when the operations start. Regardless of the awareness programmes carried out during Phase 0, people may remain unaware of the dangers of a moving train. Unmitigated this could result in injuries or fatalities. This hazard is of particular danger to vulnerable people such as children, elderly people and people with disabilities, and concern was raised of such in consultations. There are locations along the Benson Creek at Kilometre 12 where children walk along the line to the Fred Mc lain School because there is not an easily accessible access road from the community to the school. There is also a school at Tukpahblee at Kilometre 109 within 30 metres of the railway line. Children will be particularly vulnerable to the dangers of train movements when going to Page 36 of 100

37 school and during the recreational break times because there is no security fence between the school and the railway line. The impact of the vibration and noise of the train movements may cause disturbance to residents whose dwellings are close to the exclusion zone, therefore impacting negatively on their quality of life. For further review of this potential impact see Volume 3, Part 5. Although the probability is considered minimal, pieces of ore being hauled by train may fall off and cause injuries to passers-by. There is a risk of injuries and accidents [such as derailment] during railway operations. This could also have negative impact on labour relations within the Company and have repercussions in the community. Livestock may be killed by train movements and concern for such was raised in consultations Railway Service Road Health and Safety: The service road running parallel to the railway corridor will be used to provide maintenance of the railway line. Also, it is one of the routes used to travel between Yekepa and Buchanan. In addition to ArcelorMittal and the general public it will be used by contractors who have service contracts with the Company and are supporting Greenhill Quarry. The road is particularly narrow at the northern end. The speed and frequency of traffic travelling will potentially be a hazard to the safety of pedestrians walking on the road and other road users such as motor-cycle taxis. Fatalities or injuries could also result in poor community relations and/or expose the Company to external liabilities as well as other repercussions in the community Buchanan Township Many of the impacts which have been identified under the components of Buchanan Township are the same as those impacts identified for the components of Yekepa Township.. However they are repeated in the following paragraphs for emphasis and they are set within the context of Buchanan. Access to Key Resources/Physical Infrastructure Sewerage system refurbishment /sewerage system operation: There is a risk of contamination to groundwater and surface water. This could potentially become a health hazard for the community with the spread of waterborne communicable diseases further exacerbated by a population increase in the town. The consequences of this could also impact on ArcelorMittal direct employees. Water abstraction: Increasing the supply of water to ArcelorMittal direct employees could over exploit or cause deterioration to ground water and aquifers. Changes in access to resources such as water is considered a long term impact for communities. Furthermore, deterioration in quality through inadvertent contamination could result in waterborne communicable diseases such as cholera proliferating in the community. Health: Any waterborne communicable disease such as hepatitis, typhoid and cholera etc which may be proliferating in non ArcelorMittal dedicated areas could be transferred to direct employees through indirect employees working in positions such as catering. Waste Generation and Management Page 37 of 100

38 Demography: An increase in population and activity in the area will augment the type and quantity of waste products which, if not collected and adequately disposed of, run the risk of environmental degradation and contamination. This could cause deterioration in the community health. In addition an increase in disposable income and the means to purchase more items has the potential of creating more waste. Unsecured waste dumps could, if not fenced off, attract human scavenging, which could lead to possible injury and the spread of diseases. The odour and visual impacts of a waste dump may affect the communities living nearby if a suitable site is not chosen and operated properly. Buchanan Project Start Up Demography: As operations start up ArcelorMittal will require a workforce of direct employees and of contractors. Expectations of employment opportunities are high amongst local communities. There is also likely to be opportunistic job seekers coming in from outside the area, and according to consultations are in the process of arriving. An influx of people to the town may result in unplanned expansion in or around the outskirts of Buchanan town. This will compound already poor sanitary conditions and limited water sources, and it could have public health implications as well as other medium and long-term socio-demographic impacts discussed under the following paragraphs. An influx of people may change the ethnographic characteristics of Buchanan town despite it being a long-standing commercial centre with an ethnically diverse population. A further change in ethnic composition may cause social unrest and ethnic tensions. This may be the case if those from outside Buchanan /Grand Bassa successfully gain employment or are seen to be getting preference for employment over local community members. This is considered a high risk especially with communities where the social fabric is considered fragile, such as Motown. Job seekers are likely to come from surrounding rural areas, which may cause abandonment of agricultural activities. This will have the cumulative impact of a decrease in agricultural activities and could lead to food shortages in Grand Bassa, where food security of the population is already considered moderately vulnerable (CFSNS, 2006). Urban migration will result in elderly family members, who are considered vulnerable, being left in rural communities to look after themselves, exposing them to food insecurity. Migrant workers will be predominantly male owing to the nature of the work possibilities in the port and on the railway implications of such are discussed in the following paragraph. Health: An increase in population residing in cramped conditions in the town could lead to a deterioration of community health, with communicable diseases such as cholera and typhoid proliferating owing to poor provision of water, sanitation and other basic infrastructure facilities in the town area. Access to clean water is considered a fundamental human right and a change in access, within a built up area with high population density, may become a source of conflict. With a concentrated male population, many of whom will be living away from family homes, there could be an increase in Sexually Transmitted Diseases and Human Immunodeficiency Virus (HIV) as prostitution and extra marital relationships take place and with poor public health education available. This impact is considered indirect but it could be severe with long term negative effects. Furthermore, increased sexual abuse and exploitation and gender- Page 38 of 100

39 based violence could result. This could be further exacerbated by increased alcohol and drug intake because there are more people with a disposable income. The ArcelorMittal Clinic in Buchanan is in the process of being further rehabilitated to obtain Hospital status under the MDA obligations. This will contribute to improving the provision of health facilities to employees (whose benefits include medical health support for themselves and dependants) and for those non-arcelormittal staff who are willing to pay for western medical treatment. It is therefore evident that the hospital is contributing to the improvement of the medical health of ArcelorMittal workers, the community, which could have long-term positive impacts on the infant mortality rate and death rate, and the general well being of the local population. Conversely, increased demand for medical services may put pressure on the facilities in their ability to respond efficiently and professionally to the demand. The noise and dust pollution that is likely to be created by the operations may impact negatively on the health and well being of the nearby communities in Buchanan. This is particularly pertinent to Motown, which is a community that is immediately next to the concession in the northeast and extends to the sea front. The community has a very fragile social fabric because of its poor socio economic state. Consultations revealed that in the past the area had experienced a high crime rate some of which had targeted the Company. Consultations revealed that the community is volatile, includes a number of youths who are ex combatants with few job opportunities available to them now. Consultations raised concerns that the community were not being considered for employment because of the past criminal activities against ArcelorMittal and there was a feeling of mistrust and tension. If this community is impacted on adversely through noise and dust pollution, without transparently getting any benefits through consideration for employment for example for contract work, there is a severe risk of social unrest and consequential repercussions. The port and railway operations may cause accidents owing to the nature of the work. This could have a negative impact on labour relations within the Company and have repercussions in the community. The risk of consequential repercussions is considered relatively high in view of the right to health and safety in the work place being a recognised fundamental human right. Education: ArcelorMittal direct employees are entitled to benefits such as payment of school fees of dependants. This will expose more children to education and potentially improve literacy levels and educational attainment provided that the quality of provision is of an acceptable standard taking due consideration of class size, teaching methodologies and level of experience of the teachers (and in conformity with provisions of the education laws of Liberia to applicable standards on education in Liberia as per the MDA agreement). In addition, other people successfully gaining employment indirectly through a contractor or in a support service benefiting from operations may be in a better financial position to afford school fees and other costs associated with schooling. Collectively this may impact positively on levels of education generally but specifically on the education of girls, which is usually overlooked when there are not sufficient funds for the education of all the children of a household. This in turn has positive effect on the health and education of the girl s family when she grows up and has her own family. As the population of Buchanan increases, pressure on educational facilities may further compound the already poor state of schools in the town. The training of workers in areas of skilled, technical, administrative and managerial positions as per the MDA agreement will be a positive long-term investment in the human capital of Liberia. Page 39 of 100

40 Perception of employment opportunities may deter students from pursuing schooling or they may cut short their education, thus adversely affecting levels of attainment of education. Conversely employment opportunities may also encourage some students to continue their education motivated by achieving a higher skill level and the possibility of gaining a better job with the Company. It is difficult to predict the most probable outcome but it is possible that both scenarios may take place. Access to Key Resources/Physical Infrastructure Direct employees of ArcelorMittal will be living in the loop areas, which will have access to power, running water and sanitary infrastructure. The provision of these services will be confined to the designated area only. Whilst this will contribute to good living standards of employees, water and sewerage networks for the communities nearby will remain untouched. This could lead to increased waste (liquid and rubbish) and possible contamination of the ground and surface water. The risk of conflict may arise because of dissatisfaction among those who do not have access to physical infrastructure. The road infrastructure of Buchanan is in a relatively good condition. However in communities to the south east of the concession - Loop 5 Village, Loop 6 Village, Balcony, Nyamgbah, Sayo town and Giabli - the road infrastructure is very poor. Since ArcelorMittal operations have started up, the railhead and port concession area have been fenced for security and health and safety measures. Residents now have to take a longer route around the concession area to access Buchanan town. Consequently this has impacted negatively on the communities, generating a feeling of resentment towards ArcelorMittal. Access to services is considered a basic human right, and although access is still available it takes a longer distance to travel. Communities using this road have little disposable income for motorbike and vehicle taxis that charge a premium to travel to the communities because of the poor road and bridge conditions. Whilst the impact is not considered severe and can be mitigated, there is a risk of further social discontent. Social Capital: As discussed earlier it is recognised that there will be an influx of people from outside Buchanan and beyond the county boundaries as a result of ArcelorMittal operations. The social fabric of Buchanan may be negatively affected if local people are not considered for employment opportunities in a transparent way. Community consultations revealed that there are high expectations of gaining employment. Residents are aware that the level of skills locally are comparatively low and may limit their chances of employment for technical components of the operations. However unmet expectations could be detrimental and lead to crime, antisocial behaviour, increased gender based violence within households, and security issues especially within a post conflict context. Economic Activities and Income Sources: Employment opportunities will be created by the port and railway operations for skilled and unskilled labour. This will also open up opportunities for petty trading and service provision in Buchanan town. This has been recognised as being a positive impact in all community consultations. Increased income will contribute to a better standard of living, increased wealth and the means to afford education and medical treatment. Conversely increased income can be mismanaged and mis-spent on items such as prostitution, alcohol and drugs. Evidence shows that it is common for households in subsistence-based economies to divert cash from longer-term investment to short term consumption. Furthermore, large commercial operations such as mining often exacerbate income disparities of the population. This could have the consequent effect of tension between those who are not employed and those who are employed. Base line data indicate that there is an increase in crime rates when there is low employment. During the economic slowdown, Page 40 of 100

41 April September 2009, the crime rates [against the Company] increased. Consultations with Police Officials in Buchanan reaffirmed that in the community at large, incidents of crime happen more frequently when there are few employment opportunities available. Economic contributions to the local, regional and national tax revenue, through Personal Income Tax (PIT), taxation charges applied to ArcelorMittal operations as well as income tax generated from commercial enterprises trading in the area will collectively provide revenue to the Government of Liberia and contribute to the development of the country. The indirect impact of economic improvements surrounding a commercial operation can cause inflation in the cost of food, rent and transportation. Those who are employed are able to afford the increase in costs thus the benefits and costs are unevenly shared across the local population, which could lead to discontent amongst the local population Buchanan Airstrip Residents living in Sayo Town and Giabli, [exact names are unclear as the names of towns differ according to various maps], walk across the airstrip to access the road to Buchanan town. If the airstrip is fenced off the residents will be impacted because their access route will be diverted around the airport, making the distance walked longer Greenhill Quarry Camp Demography: The local town of Zowienta, may experience a population increase owing to job seekers moving to the area, however consultations revealed that this had not yet happened and the likelihood of it taking place on a large scale is considered minimal. Health: The semi permanent camp is self-contained with a sewerage system and a water bore hole. Therefore pressure on local resources is considered minimal. There is however a risk that the sewerage system could leak and contaminate local watercourses, however the likelihood of this is considered low. The population of the camp will be predominantly male moving in transit between Buchanan and Yekepa and/or along the railway corridor. As a result, there could be an increase in Sexually Transmitted Diseases and HIV/AIDS as prostitution and extra marital relationships take place. As the local communities have limited or no public health education available, this impact is considered indirect but it could be severe with long term negative effects. The quarry will continue to be used, on a lesser scale, for maintenance of the road and railway. Noise, vibration and dust generated from these activities may cause disturbance to the local residents in the community nearby. Economic Activities and Income Sources: The semi permanent camp operations may provide some employment opportunities for labour, predominantly unskilled, for the local population. This will also open up opportunities for selling agricultural produce, petty trading and service provision in Zowienta and along the railway corridor. Increased income will contribute to a better standard of living and the means to afford education and medical treatment. Conversely, increased income can be mismanaged and mis-spent on items such as alcohol and drugs. Evidence shows, that it is common for households in subsistence-based economies and with poorer households in cash-based economies to divert cash from longerterm investment to short term consumption. Page 41 of 100

42 All areas influence Fuel and Oil Storage /Refuelling Social Capital: Theft by fuel pilferage could take place if there are not sufficient controls. Transportation of Hazardous Materials (including Herbicides) and Explosives and Handling, Storage and Usage of Hazardous Material and Explosives Demography: The local population could be at risk from explosions or spillage of hazardous materials during transportation, handling and usage.. This could lead to injuries or fatalities among the local population and employees. This could also have a negative impact on labour relations within the company and expose the company to external liabilities with repercussions in the community. The risk of consequential repercussions is considered relatively high. This could lead to pollution of ground and surface water, and potentially become a health hazard to the local communities. Page 42 of 100

43 7 Cumulative Impacts The cumulative impacts caused by the landtake, and discussed within the previous Sections, relate to economic displacement, mono industrialisation of Yekepa, deterioration of health, displacement of cultural heritage sites, land pressure and the status of women in society. The positive cumulative impacts relate to the long-term improvement of the social, human and personal capital of the country. The involuntary resettlement and economic displacement of farmers on Mounts Tokadeh, Yuelliton and Gangra may have the cumulative impact of causing impoverishment and longterm hardship to affected households. Losing the only productive capital as well as access to forest products, which are integral to livelihood and survival strategies, may over time cause community health problems, accentuate already vulnerable food security and heighten levels of poverty which will have ramifications on household s ability to pay for schooling. This in turn will cause urban migration and seeking wage based employment, permanently changing indigenous people s traditional way of life. In addition, the act of migrating to another location will in itself have the cumulative effect of impacting on the community where they have moved to and it could cause overcrowding in the built up areas, which, unmanaged could lead to a deterioration of community health and communicable diseases proliferating and possibly social tension leading to crime. This unmonitored and unmanaged is a worst case scenario. Over time Yekepa will become mono industrial, with the majority of people being employed directly by ArcelorMittal or a contractor and service industries being set up to support the activities or engaging in activities dependent on the mine, thus making the community vulnerable to the boom and bust cycle typically experienced in commodity extractive industries. As with LAMCO, when operations stopped the entire town was impacted because it was solely dependent on the mining operations to support the residents. In comparison, activities at the Port of Buchanan will not be so negatively impacted in this way because there exist other industries operating within the area. Polluted water courses, restricted access to medicinal plants and loss of productive capital cumulatively could contribute to the deterioration of the health of mine affected communities. In addition in the built up areas, an increase in population, which will be predominantly male, could also lead to detrimental and long lasting severe health impacts. The permanent removal and disturbance of cultural heritage sites and areas may, along with economic pressures, contribute to indigenous people abandoning cultural practices. This ultimately may result in traditional belief systems, which have been handed down over generations, being lost. Finding alternative land available for farming is already reported as a source of conflict, as the indigenous people have a traditional affiliation with land, more conflicts are envisaged to arise with the mounting pressure on land and the increase in population. This could damage the social fabric of farming communities who have previously peacefully coexisted, working in an organised manner of allocating land to community members. With few employment opportunities for women in the port and mine operations and as the land take disrupts agricultural activities, the income generating activities in which women are predominantly engaged will also be affected. These changes will concentrate the economic power of households in the hands of men and exacerbate women s dependence on husbands or male relatives. The loss or reduction of the female income in a household may cumulatively Page 43 of 100

44 exacerbate social problems such as gender based violence, lack of public health and education, which consequently impacts negatively on family life. Providing employment, either directly or indirectly, is likely, in time, to place people in a better financial position to fund education, health of families and should generally promote the well being of families. Furthermore the provision of health and education for direct employee s dependents will also contribute greatly to improved human and personal capital of the county. This in turn should contribute to the long-term stability of the country. Page 44 of 100

45 8 Trans-boundary Impacts The proximity of Yekepa to the Guinean and Ivory Coast border may have trans-border implications associated with in-migration, economic trading and health, which have been discussed previously. It is recognised that there will be in-migration of job seekers to Yekepa. Consultations with the Liberian immigration officials confirmed that in-migration was already taking place with Guineans crossing the border daily and working as contractors for ArcelorMittal with legislative formalities of work permit requirements on the whole being overlooked. As Guinea and Ivory Coast have indigenous Mano and Gio populations who are of the same ethnic group as the indigenous Nimbans, it may be difficult to distinguish whether prospective workers are Liberian or not unless identification papers are produced, which in a post conflict context may be problematic. Disaffection may arise between Liberian indigenous Manos and Gios and non Liberian Manos and Gios, if employment is given disproportionately to non Liberians. As the road networks between Yekepa and Sanniquellie improve and other roads are opened up, it is envisaged that more cross border trading will take place between Guinea, Ivory Coast and Liberia. Levies on goods being imported will provide economic contributions to the national tax revenue of Liberia and increased trading between the countries may provide income generating opportunities for residents along the Yekepa Sanniquellie road and possible trading opportunities for people living in mine affected communities and Yekepa. Baseline data indicate that the hospital facilities in Yekepa are being used by non-liberians in addition to Liberians. Border officials said that they allowed Guineans to cross the border without identification papers, a requisite for entering the country despite being ECOWAS citizen, if they were going to the hospital as there are no Guinean medical facilities in close proximity to the communities near the border. The hospital facilities may become overburdened with people seeking medical treatment as improvements to the hospital are made under the MDA obligations. However baseline data indicate that the annual numbers of non-liberians using the medical facilities are 4% of the total number of Liberians using them. Therefore the impact of the non-liberians using the medical facilities is considered minimal. Risks of trans-boundary epidemic disease transmission such as influenza and meningitis are possible with the proximity of the borders and the amount of people travelling across it. Added to the local disease spectrum other diseases passed by expatriates working for ArcelorMittal could be carried across the border such as multi drug resistant tuberculosis with a consequential negative effect. Page 45 of 100

46 9 Proposed Mitigations 9.1 Overview Mitigations for the impacts identified in the previous chapters are discussed in the following paragraphs. Mitigations are discussed under broad categories such as resettlement, cultural heritage, consultation and public information disclosure, health, education, access to key resources, sewerage systems, waste generation, traffic control, health and safety etc. The location of each impact and the project component is also described, as appropriate. In developing appropriate mitigation the following sequencing strategy is used to manage the impacts: Avoidance modification of design/plan, operation procedures; personnel awareness training; Minimisation/ reduction by implementing decisions or activities that are designed to reduce the impacts; Compensation / offset impacts are unavoidable and require compensation and livelihood restoration. Offset mitigations for impacts identified as unavoidable are proposed under the following categories; Health Water Economic activities and income sources Road infrastructure 9.2 Resettlement The preparation and implementation of the Resettlement Plan and the associated activities are currently being implemented by the ArcelorMittal separately, and therefore are not part of this study. 9.3 Cultural Heritage The preparation and implementation of the Cultural Heritage Management Plan and the associated activities are currently being implemented by ArcelorMittal separately as part of the Social Action Plan/Resettlement Action Plan, and therefore are not part of this study. 9.4 Consultations and Disclosure Good public consultation costs money, but poor public consultation can cost considerably more, Strong stakeholder relations are a prerequisite for good risk management. The communities expectations were found to be raised and speculation about the project activities and how they would affect communities revealed misinformation and inadequate information Page 46 of 100

47 throughout the project affected area. The consultations with affected communities should be aimed at building constructive working dialogue, trust and understanding with all project affected communities. Affected groups will be more likely to accept project outcomes once they trust the project s commitment to them, however this relies on consistent and reliable engagement of the communities. It is recommended that community liaison offices be strengthened to include staff indigenous to the project areas. A Mano speaking capacity should be added to the office in Yekepa. An understanding of the local language and the community dynamics is essential for building relationships and as baseline data reveal tribal ethnicity and allegiance is strong. Gender equity of project staff should be achieved as far as possible. CLOs/CLAs should be provided with a programme of continuous professional development and undergo training in consultative/mediation/public information/participatory rural appraisal techniques to enable them to facilitate effective and objective consultations. Mediation skills may be required as increased land disputes were reported and CLOs/CLAs may have to act as an arbitrator between parties as pressure on available land within the concession area for customary usage becomes greater. Training in project monitoring and evaluation is also recommended and the additional resources should be engaged with responsibilities of social development activities monitoring and evaluation. Public consultation process should be strengthened and planned in advance. The list of key stakeholders, including those who are potentially positively and negatively affected by the project should be maintained and updated on a regular basis. Regular consultations should be conducted with these parties. This was found to be taking place to an extent. This good practice should be expanded upon based on the upcoming resettlement activities. Women should be given a separate forum and provided an equal opportunity to voice their opinions. Minutes from consultations should be taken, as well as agreed action and attendees. All documents should be filed according to the Company s established documentation controls/procedures and made available as needed for audit purposes and/or external parties as necessary. The company should ensure accessibility of information and use means such as radio and the ArcelorMittal sign boards [previously erected during Phase 0] to disclose information on a regular basis. This is also recommended in the context of managing raised expectations for employment with ArcelorMittal and relates to public information disclosure. NGOs and CBOs (as identified in the baseline data) should be identified in the project area, particularly those that represent the project affected people and the Social Department should work together with them. 9.5 Grievance mechanism ArcelorMittal should re-institute the grievance mechanism set up for previous operations in Phase 0. The Company grievance mechanism should employ an understandable and transparent process that is culturally appropriate and readily accessible to all segments of the affected communities at no cost and without retribution. Communities were found to be unaware of this mechanism throughout the project-affected area, therefore it is strongly recommended that all project-affected communities are informed about the mechanism. The grievance mechanism should incorporate resettlement; stakeholder and employee work place grievances and procedures for such should be established as a company policy and Page 47 of 100

48 procedure. All grievances should be taken seriously and dealt with in a reliable and timely manner. Documentation of all the grievances logged should take place as well as the measures put in place to address each grievance. This document should be kept updated and be available for audit purposes and external parties monitoring company activities. 9.6 Access to key resources/physical infrastructure Provision of power and water to all ArcelorMittal employees Energy and water saving awareness campaigns should be carried out in all households that are provided with electricity and in the company offices. Awareness programmes should be appropriately tailored to the context taking due consideration of literacy levels, culture, language and behaviour patterns. Objectives of the programmes should be realistic, achievable and behaviour based and performed on an ongoing basis. Power generation in relation to Yekepa: Provision of electricity for a larger area of Yekepa Township is planned to take place during Phase 2 operations, these plans should be communicated to residents in a timely and participatory manner and should mitigate against social tensions arising from dissatisfaction. Electricity should be provided to those Yekepa residents who are willing and can afford to pay for it. Water abstraction /operation in relation to mine affected communities: Yekepa township; Greenhill Quarry hamlet; port affected communities. Mitigation measures should take into consideration that access to clean water is recognised as an essential human need and a fundamental human right. ArcelorMittal should carry out regular water quality monitoring of all water sources in project affected communities particularly mine affected communities and Yekepa, and incorporate contingency measures in the event of non-compliance with adopted standards. The communities should be informed of test results as failure to do so may cause tension and mistrust. Aquifer investigation, testing and water abstraction monitoring and control should take place so that maximum effective recharge is not compromised and that communities are not disadvantaged. Hydrogeology is discussed in detail in Volume 3, part 3.2. It is recommended that an assessment should take place of existing water hand pumps and the condition of the water in the wells, streams and creeks. Based on the results, and as an offset proposal, provision for additional hand pumps should be made taking into consideration the population size of each community and the amount of water required. To ensure long term sustainability of water sources in project-affected communities, water development facilitators should be identified and trained and water committees established in each community. The purpose of such would be to assist the company in water testing, ensuring pumps are functioning and parts are not stolen which should in the long term minimise the operational costs of each pump and promote responsible management. Sewerage System:.ArcelorMittal should develop a townships plan and design and build systems that are fit for purpose for the Yekepa and Buchanan townships and Greenhill Quarry camp. Waste Management and Waste Disposal: A waste management policy within site management and townships plans should be developed with the guiding principle of waste Page 48 of 100

49 minimisation. Recycling opportunities should be explored for the rural handicraft development initiative, as part of the proposed Community Development Programme (Volume 1, Appendix 5). The following is recommended for the project components: Yekepa and Buchanan township estate management and Greenhill Quarry camp. Waste dumps should be appropriately secured or designed and constructed throughout the project affected area. Owing to the proximity of company residential areas and Yekepa residents, waste should continue to be collected from all the residents of Yekepa (ArcelorMittal employees and non employees). This should also be considered for Greenhill quarry hamlet. Traffic Control: The following is recommended for all project affected areas. ArcelorMittal should develop and implement a Traffic Management Plan, which will include speed control measures, appropriate signs and ongoing training for drivers. Monitoring of driver s performance should take place with the overarching objective to reduce road traffic accidents. Major roads passing through urban areas should be sealed to prevent dust generation. Road maintenance should take place regularly ensuring that the road networks in the concession area are in good condition and conducive to safe driving. The following is recommended for Yekepa township under the project component: mine operations. To minimise traffic moving to the mine site from Yekepa, shift work should be supported by a bus system transporting employees to and from site. Health Interventions: A baseline health risk assessment should take place. In so doing a clear understanding of epidemiology of the project affected area will be established. The findings will protect the company from possible exaggerated claims in the future and form a basis for the proposed offset community health programme. A public health awareness campaign covering hygiene and spread of water borne diseases, women s health and HIV/AIDS awareness should be planned and carried out on an ongoing basis for the identified project affected communities including ArcelorMittal employee households. The programme, proposed as an offset should build on existing public health campaigns being performed presently by the Company in relation to malaria prevention and control. Formulation and delivery of such a public health programme should consider employing the services of a Non Governmental Organisation, which specialises in public health, for example Africare. This campaign has the potential to reduce the spread of disease, cut medical costs incurred by the Company and reduce time off for sick leave. It may also positively contribute towards improving the mortality and morbidity rates in the project affected areas. A company medical standard operating procedure should be drafted, the Phase 1 DSO Consultant was not provided with such a document. Based on possible impacts identified, incorporated into this document, procedures should be developed for the eventuality of a potential disease epidemic transmission. The following is recommended for the project components: traffic in Yekepa; mine and port project start-up; mine and port operations, Greenhill Quarry operations. Page 49 of 100

50 Liaison with potential noise and dust-affected communities should take place on a regular basis. The following is recommended for the mine and port affected communities. Hospital facilities in Yekepa and Buchanan are in the process of being rehabilitated under the MDA. Non ArcelorMittal staff should continue to be allowed access and charged a nominal fee. Access to health facilities for mine and port affected communities should be supported by a biweekly bus service provided by ArcelorMittal from the communities to the hospital facilities. The following is recommended for mine site operations and port activities. The Health and Safety department of ArcelorMittal should identify and drain potential areas where water could collect and become stagnant to mitigate against malaria parasites breeding. Conduct of Employees: The following is recommended for all project areas under all project components. A policy of zero tolerance on drink, drugs and violence for all direct and indirect employees should be established. A policy of zero tolerance on hunting/bush meat should be developed and disclosed, [thus supporting the recent ban on exportation of bush meat by the Liberian Government] or acquiring bush meat for all direct and indirect employees. Awareness campaigns should support this initiative. In-migration: It is recognised that in-migration of job seekers to the project areas cannot be controlled by the Company. However monitoring of the negative impact of increased population and the consequent risks to the Company should take place, ensuring that sewerage system operations are functioning, waste management is taking place, risk of health epidemics are controlled through public health campaigns and security of employees is ensured. If not already incorporated into the human resource policy document of the Company and that of its contractors, that employment of local residents and/or indigenous people to the area of operations (including those who have been directly affected by the land take and the involuntary resettlement in Yekepa township) should be stipulated as a priority. Acknowledging that skill levels of these people may not be at a comparable level to those beyond the region, some skilled positions should be made available for this category of job seekers and on-thejob training provided as a form of apprenticeship. These considerations may contribute towards mitigating possible ethnic tensions arising. The Company s and its contractors human resource policy document should also include procedural guidance for employing non Liberian employees and/or ECOWAS citizens. Education and awareness campaigns: To build the local institutional capacity within the realm of vocational training and to maximise local employment, ArcelorMittal should fund the rehabilitation of the Vocational Training Centre in Yekepa and provide a similar resource in Buchanan. This is of particular relevance to those who have suffered losses through involuntary resettlement, the training opportunity would provide the means for a long term Page 50 of 100

51 sustainable livelihood alternative. The company should consider prioritising eligibility of enrolment for these people. Appropriate equipment for the vocational training centres should be provided and scholarships given to local students, including girls. There are LAMCO trained personnel who live in Yekepa whose skills could be used as potential instructors, mentors or governors within the institution. ArcelorMittal should provide school scholarships for deserving community youth and should ensure that scholarships are not provided disproportionately to male students in view of the disadvantages females face in achieving education attainment. ArcelorMittal should develop and implement awareness programmes for relevant issues such as nature conservation, health and hygiene including HIV/AIDS and gender based violence using local NGOs, Community Based Organisations, churches, schools, youth clubs which are long standing in the community. Awareness Campaigns should be carried out in schools in the affected communities, to promote the importance of educational attainment. Campaigns should be appropriately tailored to the context taking due consideration of literacy levels, culture and language of the audience. Mediums of role plays, dance, and songs should be considered so as to appeal to the young. Erection of fences: A security risk assessment should be carried out to assess if it is necessary to erect a fence to protect the ArcelorMittal properties in Yekepa designated to directly employed staff. If a fence or a method of demarcation is deemed necessary, community consultations should take place using techniques that will enable the community to put forward preferences and suggestions for mitigation rather than delivering a fait accompli, as this could result in mistrust and reprisal as has been evidenced with the erection of the fence in the port of Buchanan, without consultations, which now prohibits people taking a shorter route across the concession area, as was permitted during LAMCO operations. Community consultations should take place prior to the erection of a fence, so that communities are aware of developments. Once the mine boundary fence is erected, agreed access to forest areas on certain days to allow affected community households to either collect NTFP such as wood or medicinal herbs should be negotiated. If a fence is erected around Buchanan airstrip, a road should be created from the access way to Buchanan around the periphery of the fence to connect to Sayo town and Giabli [exact names are unclear as the names of towns differ according to various maps] on the eastern side of the airstrip. Social capital and social cohesion: ArcelorMittal should continue to support financially and to develop community based sport and leisure activities throughout the project area. Working together with the Liberian Police force, and UNMIL Police, ArcelorMittal should continue to monitor crime levels and crime prevention in the community. Recognised as a fragile post conflict environment and to mitigate possible ethnic tensions arising in project affected areas, ArcelorMittal should consider engaging an NGO that has experience of peace building in West Africa, to carry out a peace building/promotion and conflict resolution programme. The programme should incorporate conflict prevention and Page 51 of 100

52 management. This initiative will not only invest in the social fabric of local communities it also has the potential to minimise reprisals against the company. Economic activities and income sources: A poverty assessment using a recommended field tested poverty assessment tool should take place of a sample of households in each project affected community particularly in mine affected communities. The assessment, which should be repeated intermittently, will enable ArcelorMittal to monitor poverty levels of communities and evaluate how the project activities are impacting on the communities livelihoods, economic activities and income sources. It is recommended that ArcelorMittal provide business development training on bid and tender preparation, financial management, and on how to do business with the Company. As a company with long term intentions to remain in Liberia, this initiative has the potential to maximise the economic benefit of the project to the local population. This will be carried out by proactively training local suppliers and potential entrepreneurs to take advantage of the opportunities that will be available during the project start up stage and as the project transitions into Phase 2. Those affected by the involuntary resettlement should be considered eligible for inclusion into the Community Development Programme as proposed to offset landtake from agricultural activities. Furthermore if possible, it is recommended that alternative agricultural land is found by the company within the concession area and provided to those affected by the land take to allow them the choice of continuing with agricultural activities that are consistent with previous land-based activities. This is particularly relevant for identified vulnerable individuals. These two measures will ensure that affected people are not disadvantaged by the resettlement process. The Cumulative impact of Yekepa experiencing a change in demographic and economic characteristics and becoming a mono industrial town should be minimised if this initiative is successfully implemented. Also if managed correctly it will in the long term contribute to improving the food security of the area as the programme develops. It is recommended to establish a rural handicraft development initiative, as part of the Community Development Programme offset proposal specifically targeting vulnerable groups, such as women and elderly people. This is particularly pertinent for the affected women in the land take who have large degree of economic dependency on the land as discussed under the impacts and it is critical that they are empowered to transform their skills and capabilities into well being. Based on observations of artisanal handicraft work in the area, the handicraft spectrum could encompass cloth weaving, grass/basket weaving, carpentry/wood work, tiedying, sewing, catering and baking etc. A comprehensive review of materials available, existing craft work and possible markets would be required. To stimulate market trading, ArcelorMittal should construct market places. This will provide an important offset for the landtake, encourage continuation of land based agricultural activities which is essential for the success of the Community Development Programme. It will assist in food security of communities and markets could promote alternative income generating activities particularly for women. It is essential that income restoration opportunities are provided to the affected communities, so as to assist in their socio-economic well being. Inflation: Inflation should be closely monitored and as necessary increase employee wages in line with inflation. The Company is unable to control inflation in project affected areas however carrying out mitigation such as road infrastructure improvements will enable people to travel to other towns to seek goods and services that may be more affordable. Page 52 of 100

53 Food security: A food security assessment should take place to establish baseline data. A tool such as World Food Programme (WFP) Comprehensive Food Security and Vulnerability Assessment tool could be applied. Having a clear understanding of the food security and vulnerability will inform the Company of the impacts of the land take and assist in the monitoring of progress of the Community Development Programme. Road Infrastructure: The following is recommended for mine affected communities specifically: the Bonlah, Lugbeyee Kanlah road from Yekepa (also known as the Lugbeyee Highway ); the road leading to Makinto and Sehyigeh. Port affected communities specifically; the road to Balcony from Buchanan. It is recognised that road infrastructure construction and maintenance is the responsibility of the Government however road rehabilitation would serve as an important offset for the impacts caused by the landtake for mine affected communities in particular and should be incorporated into the Resettlement Action Plan. Improvements to the road infrastructure have the potential to stimulate market trading, income-generating activities and enable affected people to explore other livelihood opportunities. Improved infrastructure and accessibility to transport may also deter mine affected households leaving their rural communities to live in Yekepa to be better positioned for employment opportunities. Also sources of fire wood and charcoal may be more accessible with a better road. ArcelorMittal should carry out an assessment of the condition of the roads detailed above. Based on this a programme of road construction and maintenance should be developed and implemented in consultation with the communities. The road design should include hydrological assessment and the building of effective road drainage and culverts (Volume 3, Part 2.2). The placement of drainage structures should be performed in consultation with the adjacent landowners to ensure that their land and households are not unduly affected by drainage water. Road infrastructure sustainability should be discussed at District Government level. To address access issues between the town of Buchanan and the affected community of Balcony, ArcelorMittal should hold community consultations to assess the best possible mitigation strategy. The consultations should ensure that the community understands the health and safety requirements of the Company, which have led to the closure of the public access road through the concession and in lieu it is recommended that the Company should consider improving the access road infrastructure to Balcony. Gender: The 2008 ArcelorMittal gender action plan should be updated to incorporate additional information pertinent to Phase 1 DSO activities and circulated to all Community Liaison Officers/Assistants for reference and implementation. It is critical that women in the project affected areas are given the opportunity to be empowered to transform their skills and capabilities into well being as baseline data shows women are subjected to cultural norms that systematically discriminate against them. Gender specific livelihood restoration activities, such as the proposed rural handicraft development project as part of the Community Development Programme should be tailored specifically for women. Page 53 of 100

54 ArcelorMittal s and its contractors human resource policies should incorporate gender sensitive policies to encourage females to apply for positions and gender sensitive on-the-job training assistance should be set up as a capacity building initiative. Consideration of gender in the development of other regulations and policies by the Company should take place. Sexual harassment grievance procedures should be included in the human resource manual, if not already incorporated, and employees made aware of the policy. Health and Safety: ArcelorMittal Health and Safety procedures should be strictly adhered to and a full appreciation of works and all associated risks should be identified. The health and safety procedure should incorporate an Emergency Response Plan in the event of a major accident such as train derailment. All employees should be made aware of the procedures. Capacity building support should be provided to the Company labour trade union ArcelorMittal Workers Union to enable the entity to represent the workers and liaise with the Company. Safety awareness campaigns should be carried out on a regular basis for drivers of company vehicles to ensure safe driving. The following is recommended for the project components: railway and port operations; in the project affected areas; railway corridor communities including Buchanan. Railway safety awareness campaigns should be carried out using a local Non Governmental Organisation, building on awareness campaigns that took place during the rehabilitation phase. An awareness campaign plan should identify target audiences, provide suitable means of communication such as radio, songs, role plays, street theatre and in school education all of which should be context sensitive (appropriate to the rural environment and separately to the built up areas along the line including Buchanan) to transfer the safety messages. In addition, residents along the line will need to be taught the meaning of road signs and signals employed as hazard awareness, if not already performed during the Phase 0 awareness training. A monitoring and evaluation mechanism should be incorporated at the planning stage to ensure that the sensitisation is being appropriately implemented and that the content messages are successfully informing the target audiences. Once the training is formulated an implementation schedule should be detailed. The safety awareness campaign should be overseen by dedicated CLA/CLOs (Volume 1). Schools close to the line are considered sensitive locations and will require particular safety awareness training. Residents along the railway corridor, will need to be reminded of the risks of allowing their livestock to roam free across the track. The requirements for noise mitigation are provided in Volume 3, Part 5. Hazardous Materials (Petroleum, Oil and Lubricants (POLs)), chemical herbicides and explosives: The following is recommended under the following components; delivery of hazardous substances, handling and storage, including refuelling; Health and safety procedures should be established for handling and storage of POLs, chemical herbicides and explosives. Monitoring for contamination should take place on a regular basis. Page 54 of 100

55 Rigorous internal controls should be put in place to minimise opportunities for pilferage. Appropriate training [and on-going training] should be given to drivers on the transportation of hazardous materials. Verification that drivers are complying with the established safety regulations should take place by the company Health and Safety department and Transport Department. Socio-economic baseline survey: The following is recommended for port affected communities. As no baseline data have been collected of port affected communities there is no clear understanding of them and therefore a comprehensive socio-economic baseline data survey should be carried out. Human Rights: The following is recommended for all project components. A Human rights impact assessment should be conducted. Whilst it is the country s legislation that is responsible for protecting human rights, business conduct that is inconsistent with basic human rights could pose a risk to the company s business. The assessment would assist ArcelorMittal to analyse risks and establish management measures. Page 55 of 100

56 10 Residual Impacts Residual impacts refer to impacts which have the potential to remain despite mitigation measures having been put in place. The involuntary resettlement of indigenous people farming on land within the mining footprint may, as result, cause the affected people to lose their traditional affiliation with their ancestral lands and their livelihood opportunities and lifestyle may never be restored. Likewise residents of Yekepa who will be removed from their homes which are in designated areas assigned for Project usage may never be able to re-establish the stability of their household and livelihoods. Furthermore, if the resettlement action plan is not implemented, affected people may permanently lose their livelihoods. In addition, unwanted disturbance in a human beings life could have long term sociological or psychological effects, this is pertinent in a nation which remains fragile as a result of a protracted and bloody civil war. The landtake will cause permanent removal of four indigenous cultural heritage sites, potential disturbance to a further three sites through possible pollution of water courses, and loss of access to spatial areas used as a place of worship on Mounts Tokadeh and Yuelliton. The permanent loss of cultural property, some of which is non replicable, has the potential to prevent indigenous people practicing their spiritual beliefs and could contribute towards people permanently abandoning their traditional cultural belief systems. Page 56 of 100

57 11 Stakeholder Consultation and Disclosure A series of consultations and interviews took place with identified stakeholders, refer Appendix 3 Stakeholder Register and Appendix 4 the Consultation Register. Names of attendees were recorded at the majority of the consultations and are listed at the end of each consultation s documented. Notes are provided in Appendix 6. The consultations with the identified stakeholders took place in the project-affected areas: Yekepa, the mine affected communities, the railway corridor and Buchanan port affected communities. The Social Impact Assessment findings will be disclosed to stakeholders in October Stakeholder disclosure is requisite under national and international standards. The general matters raised by the communities are described below. Mine Affected Communities Yekepa Involuntary resettlement/land take for mining operations and the consequences of such as perceived by individuals Non availability of land for farming and the rising social conflict related to land pressure Request for access to land for agricultural use subsequent to the land take for the mining Current poor quality of water in streams/creeks and water wells in the mine affected communities Loss of access to medicinal herbs and other non timber forest products such as ratan in forest areas and reliance on such as being crucial to health Lack of funds to afford hospital and transportation fees Few or no other income generating activities other than farming Dependency on bush meat as a protein supplement Poor condition of road infrastructure connecting the mine affected communities and Yekepa/main roads and the need for road improvements to enhance livelihood opportunities Mounts Tokadeh, Gangra and Yuelliton are important to Animist spiritual followers and to a lesser extent to Poro and Sande Secret Society Discontent amongst Yekepa residents if ArcelorMittal employees are provided with water, sewerage facilities and electricity while other residents are not and this may lead to tension The resettlement compensation paid previously is considered insufficient. To maintain livelihoods alternative housing should be provided Gratitude for the recent improvements made to the town Tolerance of diverse ethnicity of Yekepa residents Page 57 of 100

58 In-coming jobseekers will be friends or family of Yekepa residents and they will reside in these households Camp 4 will become the overspill town for job seekers Guineans crossing border daily for work in Yekepa and extensive cross border petty trading Railway Corridor Train safety hazard especially for children Road users of the service road running parallel to the railway are a safety hazard to children Patients at Sanniquellie hospital will be disturbed by train movements Benson Creek at Kilometre 12, Fred Mc lain School and school at Tukpahblee at Kilometre 109 considered sensitive as children walk along the line to school and may be at risk from passing trains Domestic animals may get killed on the railway line Vibration of the train movements may cause structural damage to buildings near to the line Buchanan Port affected Communities Road access across the concession has been blocked which makes the journey to town longer from Balcony community Influx of job seekers will cause crowding and possible proliferation of communicable diseases Noise of the port operations may affect nearby communities Fishing will not be negatively affected Common issues raised across all consultations Gratitude that ArcelorMittal is starting up operations in Liberia The County Development Fund and delays with its implementation High expectations of employment and socio-economic improvement The need for ArcelorMittal to communicate and disseminate up to date information regarding operations through consultations with affected communities in a timely manner Expectations related to previous LAMCO operations and ArcelorMittal following suit In-migration is recognised to take place of prospective job seekers Potentially vulnerable people were identified as women, elderly and children Requirement of provision of skills training ArcelorMittal vehicles were considered to drive at times in a hazardous manner which is a concern for people walking along the road Page 58 of 100

59 12 Monitoring Monitoring will provide the means for tracking and evaluating progress towards achieving identified outcomes and objectives within the Phase 1 DSO specified timeframe. The task of the monitoring firstly is to track if actual social impacts borne of the project activities are different from those predicted. If they are different, alternative mitigation strategies should be recommended for corrective action to address the impacts. Secondly, the monitoring mechanism should assess, using key measurements, targets and indicators, the on-going progress and performance of mitigation actions being carried out by the Company. The monitoring mechanism should allow for periodic reporting of results to ArcelorMittal management, GoL and affected stakeholders. This will ensure that programme objectives are being met and will allow for adjustments as necessary. To undertaking monitoring ArcelorMittal Phase 1 DSO social activities appropriate staffing provisions have been incorporated into the social management reporting structure in Section 13. Page 59 of 100

60 13 Social Management 13.1 Social Management Reporting Structure The following organisational chart sets out the proposed staffing required to support the mitigation measures recommended in Chapter 9. Resettlement management is not part of this structure. Individual Community Liaison Officers form parts of the Sectoral Directors Support teams 13.2 Management Structure To implement the Social Management Plan the following staffing is recommended: Personnel Social Impact Manager: the Candidate should have minimum of 15 years experience in a role managing community matters related to mining operations within the context of West Africa or a similar environment. Necessary knowledge of international standards such as World Bank Safeguard Policies, IFC Performance Standards and implementation of such is requisite. The Social Impact Manager will report directly to the Sectoral Directors. The position Page 60 of 100