Securing Free, Prior & Informed Consent to Resettlement First Quantum s Cobre Panama Project International Seminar on Resettlement Medellin, Colombia; November 7, 2013
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 2
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 3
replan Inc. Canadian consulting firm, headquartered in Toronto, founded in 1978 Regional offices in Latin America (Quito), Africa (Dakar) and Western Canada (Edmonton) Manages the social impacts, risks and opportunities associated with resource and infrastructure development projects 100+ full time professional staff, including planners, engagement specialists, development workers, architects, and engineers 4
What we do & where we do it Services: Resettlement & livelihood restoration Stakeholder engagement & grievance management Social assessment & management Worker housing & communities Regional & community development Training & capacity building 5
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Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 7
Cobre Panamá Project Location 8
Project Components Port N Coast Road Tailings Management Facility Waste Rock Storage Power Plant Transmission Line Plant Site Facilities Deep draft port Concentrate dewatering facility 300 MW power plant Processing plant 3 open pits Ancillary installations Tailings management facility 230 kv overhead power line Coast Road, pipelines 2km Mine Pits Process Plant 9
Project Standards Project committed to following international standards and best practices, including : International Finance Corporation Policy and Performance Standards on Social and Environmental Sustainability Global Reporting Initiative (GRI) Extractive Industries Transparency Initiative International Council on Mining and Metals (ICMM) Voluntary Principles on Security, Human Rights Mining Association of Canada - Towards Sustainable Mining 10
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 11
Scope of Displacement ~5000 ha total footprint (outlined in red) Five communities displaced: Chicheme (42 hh; 321 people) Petaquilla (14 hh; 106 people) Rio Botija (3 hh; 14 people) Rio del Medio (21 hh; 145 people) Quebrada Vega (6 hh; 23 people) Total = 86 hh; 609 people Majority were both physically and economically displaced, including all of Chicheme and Petaquilla 12
Indigenous Communities: Chicheme & Petaquilla Recent Ngäbe migration to concession (2000-2010) from Comarca to West Spontaneous and informal colonization of State Land Community members self-identify as Ngäbe people Poor and isolated, with minimal access to education, health, public services or infrastructure of any kind Main sources of income: subsistence agriculture (Chicheme) and artisanal gold mining (Petaquilla) Both communities are satellite settlements of larger nearby communities 13
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 14
Free Prior and Informed Consent UN DeclaraAon on Rights of Indigenous People (2007) Requires free, prior and informed ILO ConvenAon 169 (1989) Panama has not ra,fied Requires free and informed IFC Performance Standards PS 5 (Involuntary ReseElement) & PS 7 (Indigenous Peoples) provide 15
PS5: Land Acquisition & Involuntary Resettlement Objectives include: Avoid or at least minimize involuntary displacement wherever feasible; Avoid forced evictions; Provide compensation for loss of assets at full replacement cost; Ensure that resettlement and livelihood restoration activities are implemented with appropriate stakeholder engagement; Improve or at least restore the livelihoods and standards of living of displaced persons; and, Improve living conditions among those physically displaced through the provision of adequate housing with security of tenure at resettlement sites. Key policy direction: avoid expropriation and eliminate the need to use governmental authority through the use of negotiated settlements even if [projects] have the legal means to acquire land without the seller s consent. 16
PS7: Indigenous People Requires achievement of FPIC in situations that require the relocation of Indigenous Peoples from lands subject to traditional ownership or under customary use. FPIC builds on and expands the process of informed consultation and participation and needs to be established through good faith negotiations between the proponent and those affected. Proponent needs to document: (i) the mutually accepted process between the client and Affected Communities of Indigenous Peoples, and (ii) evidence of agreement between the parties as the outcome of the negotiations. FPIC does not necessarily require unanimity and may be achieved even when individuals or groups within the community explicitly disagree. 17
MPSA Definition of FPIC MPSA defined FPIC in 2009 as: A collective expression of support for resettlement by displaced indigenous peoples Reached through an independent and self-determined decision-making process Undertaken with sufficient time, in accordance with cultural traditions, customs and practices and in compliance with Panamanian law. 18
Our Process Four basic phases to a replan resettlement: 1. Scoping and Strategizing => results in a Resettlement Strategy (or Framework RAP); Included in the Project ESIA 2. Technical Planning & Collective Negotiations => results in a detailed Resettlement Action Plan; Made public and finalized thereafter 3. Implementation & Individual Negotiations => results in Individual Agreements, Delivery of Entitlements, & Land Take 4. Long-Term Supportive Programs => results in sustainable improvements in quality of life and livelihoods. 19
RAP Preparation Highlights STRUCTURE TIMELINE OUTCOME Month 1 Month 6 Month 12 Tables met over 18 mo. and guided all technical work, including: Month 18 Formal ratification of Resettlement Action Plan (along with observers and stakeholders) 5 formal dialogue tables for planning Involved company and each affected community Good faith negotiation process; decisions via consensus Formal census, livelihood survey and immoveable asset inventory Eligibility and entitlement planning Definition of compensation rates Selection of replacement lands (land for land) Definition of livelihood restoration and other supportive programs Definition of an implementation plan 20
Dialogue Table Characteristics Tables met on communities terms (when, where, how, etc.) and in accordance with their needs, preferences and practices All community members participated and made their voices heard before, during, after, and in-between formal Meetings Capacity building and third party appointments (e.g., community lawyers) evened the playing field Meetings were formal : they were professionally facilitated; agendas were circulated in advance and adopted; and, minutes were formally ratified Local and national government representatives were permanently invited and informed Other stakeholders also participated as observers, including representatives from the Church, from other communities, and the region s public notary Accessible and response grievance system was put in place Full-scale engagement program accompanied the dialogue process to continually strengthen relationships and trust 21
Replacement land selection process Indigenous communities choose to resettle as communities: Chicheme required approx. 730 ha (land secured) Petaquilla required approx. 415 ha (land secured) Group tours organized to visit sites and select together New land located near current communities Maintain contact with mother communities (Nuevo Sinaì, Nueva Lucha) 22
Resettlement Villages Planning and design of the resettlement communities was highly participatory. All replacement assets are culturally appropriate and provide an improved quality of life with security of tenure Detailed hand-over, operations and maintenance systems have been defined. 23
Livelihoods Restoration Plan 24
Resettlement Action Plan Collectively Signed Representatives of every affected household ratified the final RAP following legal review by community lawyers Document prepared in Spanish, Ngabere, and English 100% approval rate All other participating stakeholders ratified the RAP as well 25
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 26
Implementation Activities Underway First Quantum assumed full implementation responsibilities in August 2013 Activities completed by August 2013 included: Negotiation and signing of individual household agreements, based on the RAP Preparation and implementation of individual household livelihood restoration plans Initiation of construction of resettlement communities for Chicheme and Petaquilla 27
Overview 1. Introduction 2. Project Overview 3. Scope of Displacement 4. Resettlement Planning Process 5. Resettlement Implementation Process 6. Successes & Lessons Learned 28
Successes 100% of affected households and all participating stakeholders ratified the RAP Independent social auditors certified IFC PS 5 & 7 compliance, including full achievement of FPIC Process was featured in the ICMM s Good Practice publication & is being viewed as a model by some 29
Some lessons learned 1. Treat resettlement as an opportunity for community development 2. Respect local culture, beliefs, sense of time, and internal decision making processes 3. Engage, engage, engage respectfully & patiently 4. Be transparent & share information freely, in culturally appropriate ways 5. Encourage use of third party advisors 6. Start well ahead of time it will take longer than you think! 7. Manage expectations from Day 1 8. Design & implement resettlement with full participation of those affected 9. Prepare for negative attention and activist agendas; aim for co-ownership 10. Never relax or take things for granted!! 30