DRAFT FOR DISCUSSION
WITH BARRICK GOLD CORPORATION
AND
KAHAMA MINING CORPORATION LTD.
DRAFT
SOCIAL DEVELOPMENT PLAN
FOR
BULYANHULU GOLD MINE
REPUBLIC OF TANZANIA
PREPARED FOR
KAHAMA MINING CORPORATION LIMITED
P O BOX 1081
DAR ES SALAAM
TANZANIA
August 1999
by
E.A. Pollett & J. J. Pooley G. Trusler / D. Terlien
Institute of Natural Resources Digby Wells & Associates
University of Natal P. Bag X10046
P. Bag X01 Randburg
Scottsville, 3201 2125
Pietermaritzburg Gauteng
RSA RSA
E-mail :
INR Investigational Report No. 196
SOCIAL DEVELOPMENT POLICY STATEMENT
· Kahama Mining Corporation Limited (KMCL) is currently developing a gold mine at Bulyanhulu, Kahama District, Tanzania.
· Cognisance will be taken of the long-term development needs and the socio-economic development of the villages in the area affected by the mine. In this regard, formal efforts (outlined in a Social Development Plan) will be made to improve the standard of living of target communities close to the KMCL operation.
· KMCL will assist local authorities to manage the impacts which could result from an influx of people due to its activities.
· KMCL will appoint a Community Development Officer (CDO) to liaise with and assist households forming part of its Social Development Plan (SDP).
· This CDO will be a person trusted both by the villagers and KMCL.
· The CDO will assist affected households and communities in the implementation of the SDP.
· The implementation of a Social Development Plan will be subjected to a regular process of independent monitoring and review in relation to ongoing environmental monitoring and auditing of the mine’s Environmental Management System.
President
Kahama Mining Corporation Limited
February 1999
LIST OF ABBREVIATIONS AND ACRONYMS
AEZ Agro-ecological Zone
AIDS Acquired Immune Deficiency Syndrome
CBO Community Based Organisation
CDO Community Development Officer
COSPE Co-operation for Development of Emerging Countries
DW&A Digby Wells & Associates
EIA Environmental Impact Assessment
EIS Environmental Impact Statement
HIV Human Immune-Deficiency Virus
IA&P’s Interested and Affected Parties
IEM Integrated Environmental Management
IFC International Finance Corporation
INR Institute of Natural Resources, University of Natal
KMCL Kahama Mining Corporation Limited
NGO Non Government Organisation
PAP Project Affected Population
PRA Participatory Rural Appraisal
SDP Social Development Plan
SIA Social Impact Assessment
STD’s Sexually Transmitted Diseases
VC Village Chairman
VEO Village Executive Officer
WC Ward Councillor
WDC Ward Development Committee
WEC Ward Executive Committee
WEO Ward Executive Officer
WUG Water User Group
iii
iii
TABLE OF CONTENTS
1 INTRODUCTION 1
1.1 Background 1
1.1.1 Studies conducted and environmental impact statement 1
1.1.2 Additional surveys conducted 2
1.2 Statement of objectives and targets for the resettlement action plan and the social development plan 2
1.3 Approach and methodology 2
1.4 The Bulyanhulu mine 4
1.4.1 History and description 4
1.4.2 Mine development to date 4
1.4.3 Proposed mining operations 5
2 BIOPHYSICAL ENVIRONMENT 6
2.1 Climate 6
2.2 Geology, topography and soils 6
2.3 Water resources 7
2.4 Biological diversity 8
3 SOCIO-ECONOMIC ENVIRONMENT 9
3.1 Institutional arrangements 9
3.1.1 Introduction and context 9
3.1.2 Political system 9
3.1.3 Local government and administration 9
3.1.4 Local community based organisation (CBO’s) and non government organisations (NGO’s) 13
3.2 Land use patterns 14
3.2.1 Past and present settlement patterns 14
3.2.2 Land tenure 14
3.2.3 Crop production 16
3.2.4 Livestock production 19
3.2.5 Utilisation of indigenous flora, fauna and natural resources 19
3.2.6 Other materials 20
3.2.7 Artisanal gold mining 20
3.2.8 Entrepreneurial/business activities 21
3.3 Historical and cultural environment 22
3.3.1 Brief historical sketch of the area 22
3.4 Characteristics of the affected communities 22
3.4.1 Demographic aspects 22
3.4.2 Population characteristics of mine affected communities 25
3.4.3 Economic and employment status of mine affected communities 26
3.4.4 Education and Skills Profile 27
3.4.5 Welfare profile 29
3.4.6 Health profile 29
3.4.7 Cultural profile 29
3.4.8 Village and household asset profile 29
3.5 Local infrastructure 30
3.5.1 Water supply systems 30
3.5.2 Energy supply systems 30
3.5.3 Transport/roads and communications systems 31
3.5.4 Sewerage and waste disposal facilities 31
3.6 Social and other community services and facilities 31
3.6.1 Education facilities 31
3.6.2 Health facilities 31
3.6.3 Retail/business facilities 31
3.6.4 Police and security 32
3.6.5 Entertainment facilities 32
3.6.6 Religious facilities 32
3.6.7 Graveyards 32
4 Potential issues 33
4.1 Introduction 33
4.2 Biophysical environment 33
4.2.1 Physiography 33
4.2.2 Climate 34
4.2.3 Water resources 34
4.2.4 Soils 35
4.2.5 Vegetation 35
4.2.6 Local natural resource utilisation 35
4.2.7 Wildlife 36
4.3 Economic environment 36
4.3.1 Land tenure rights 36
4.3.2 Equity 36
4.3.3 Agriculture 37
4.3.4 Economic vulnerability 37
4.3.5 Economic development 38
4.3.6 Competition for economic resources 39
4.3.7 Inflationary effects 39
4.3.8 Infrastructure 40
4.4 Social environment 41
4.4.1 Social welfare 41
4.4.2 Social change 41
4.4.3 Pace of change 41
4.4.4 Population movement 42
4.4.5 Social conflict 42
4.5 Political and institutional environment 42
4.5.1 Macro-political changes 42
4.5.2 Possible increased local political activity 43
4.5.3 Changes to power relations 43
4.5.4 Institutional capacity 43
4.5.5 Negotiation skills 43
4.5.6 Communication 43
4.6 Issues concerning land use, planning and integrated development 44
4.6.1 Previous, present and future land use issues 44
4.6.2 Integrated and holistic planning 44
5 SOCIAL DEVELOPMENT PLAN 46
5.1 Introduction 46
5.2 Objectives 46
5.2.1 Scope 46
5.2.2 Possible development initiatives 47
5.3 Strategy for development 49
5.3.1 Approach 49
i) Establishment of institutional arrangements for the transfer and optimal utilisation of funds. 50
ii) Establishment of a Development Foundation to disburse funds and to manage and monitor implementation. 50
iii) Establishment of community level institutions which will play a key role in the identification and implementation of economic and social development projects. 50
5.3.2 Key principles of the strategy for development include:- 50
5.3.3 Establishment of a Development Foundation 50
5.3.4 Structure of a development foundation 51
5.4 Economic development programmes for mine affected communities 51
5.4.1 Employment strategies 51
5.4.2 Intensification of Agriculture 52
5.4.3 Entrepreneurial Development 52
5.4.4 Artisanal gold mining 53
5.5 Strategy for mitigating impacts of an anticipated influx of newcomers. 53
5.6 Implementation schedule for social development programmes for mine affected communities 54
5.7 Expenditure to date and budget for implementation of the Social Development Plan. 55
5.7.1 Expenditure to date 55
5.8 Budget for implementation of Social Development Plan : 1999 – 2000 56
5.9 Monitoring and evaluation 57
SOCIAL DEVELOPMENT PLAN-BULYANHULU GOLD MINE, TANZANIA
54
PART A : CONTEXT
1 INTRODUCTION
Kahama Mining Corporation Limited (KMCL) - owned by Barrick Gold Corporation of Canada, a leading international gold producer with extensive mine development experience and operational expertise, (85%) and the Tanzanian Government (15%) - is developing a gold-copper deposit at Bulyanhulu, in the Shinyanga Region of northern Tanzania. Mining of the deposit will be by underground methods, and the life of mine will be at least 10 years. The project site is situated in Kahama District, approximately 45 km south of Lake Victoria, 127 km southwest of Mwanza, and 850 km northwest of Dar es Salaam (Map 1), on the Central Tanzanian Plateau (±1200 m above mean sea level). A 50 km2 Prospecting Licence area has been allocated to KMCL by the Tanzanian government, within which mine development has begun and within which one principal village (Kakola) and several smaller settlements are located.
1.1 Background
1.1.1 Studies conducted and environmental impact statement
KMCL initiated environmental studies at Bulyanhulu as part of the exploration and engineering feasibility phases of mine development. These studies were designed to satisfy Tanzanian legal requirements and guidelines as well as those of the World Bank. The Terms of Reference for the specialist studies were compiled after an extensive series of meetings at village, ward, district, regional and national levels. When the Terms of Reference for these studies were compiled, it was not anticipated that any resettlement of local households would be necessary. A team of Tanzanian and international experts was chosen to complete various sections of the required studies. The experts were co-ordinated by the company Norecol, Dames and Moore, who were then also responsible for compiling the final documents.
A comprehensive Environmental Impact Statement (EIS) was completed in May 1998 and the results were again presented at district, regional and national levels to a number of significant role-players. As noted above, the resettlement of households from mine-administered lands had been omitted from the terms of reference for studies and resettlement issues were not addressed as part of the EIS for the mine.
1.1.2 Additional surveys conducted
Once it had become evident that 56 households would have to be relocated from the proposed mine township and tailings dam sites, KMCL duly followed Tanzanian resettlement and compensation laws in this regard (in consultation with local Government). However, KMCL is currently seeking finance for the development of the mine, and decided to compile the relevant resettlement and social development plans according to World Bank Group guidelines in order to satisfy possible financier requirements.
A consortium of consultants with extensive experience in mining related social impacts (including resettlement and social development planning) both elsewhere in Tanzania and in sub-Saharan Africa was appointed to conduct the necessary studies and to compile the necessary reports. Resettlement planning was conducted, somewhat retrospectively, and resettlement has occurred. Long term economic development of mine affected communities, however, requires the compilation and implementation of a Social Development Plan (World Bank Operational Directive 4.30), to which end this report has been drafted.
This document includes a description of the mining development (Part A), characteristics of the receiving biophysical and social environment (Part B), and potential socio-economic issues linked to this receiving environment (Part C). The Social Development Plan (SDP, Part D) has been developed for the affected area, the main aim of which is to maximise the benefit to the surrounding community of having a mine in the area, by initiating a number of economic development projects.
1.2 Statement of objectives and targets for the resettlement action plan and the social development plan
Key objectives and targets of the Social Development Plan (SDP) include:
i) Compliance with all relevant Tanzanian legislation, as well as with the policies of Barrick Gold Corporation and KMCL;
ii) Preparation and implementation of the SDP within the guidelines of World Bank Operational Directive 4.30.
iii) To ensure meaningful participation of mine affected communities in this planning and implementation process.
iv) To use the relocation process to stimulate development programmes involving re-settlers and the communities surrounding the mine, in a manner that will lead to sustainable and integrated local development.
v) To promote the establishment of economically sustainable communities prior to mine closure.
1.3 Approach and methodology
The Institute of Natural Resources (INR) has wide experience of undertaking socio-economic studies in sub-Saharan Africa, and was approached by Sutton Resources (now bought out by Barrick Gold Corporation, also of Canada) to conduct this study at short notice. In order to complete the report within a very short time frame a Consortium was established with other consultants whom have similar experience. At Bulyanhulu local teachers were contracted to assist with field facilitation and translation (key informant interviews, household and interest group meetings). Two members of Kahama Mining Corporation (KMCL) who have been directly involved with community related activities to-date also assisted the team. Members of the Consortium and field team are listed in Table 1.3.
Table 1.3 : Study Team
NAME / ORGANISATIONA. Project Team Consortium
Mr E.A. Pollett / Lead Consultant
Institute of Natural Resources
Mr J. Pooley / Institute of Natural Resources
Ms D. Terlien / Digby Wells and Associates
Mr G. Trusler / Digby Wells and Associates
B. KMCL Staff
Mr O.C. Lopa / Public Relations Manager,
Bulyanhulu Exploration Camp.
Mr F. Rwamugira / Chief Surveyor,
Bulyanhulu Exploration Camp.
C. Field Facilitators/Translators
Mr J.A. Kdima / Ibanza Primary School Teacher.
Mr B. Mhambo / Bugurama Primary School Teacher.
Mr F. Misungwi / Segese Primary School Teacher.
Ms N. Msabaha / Kishimba Secondary School.
Ms G. Sayi / Kahama Secondary School Teacher
Mr J. Sazia / Bariadi Secondary School Teacher
Mr B. Taga / Kakola Primary School Teacher
The terms of reference for this study and the level of data to be gathered were discussed extensively between Sutton Resources and the International Finance Corporation (IFC) prior to commencement of field work.
The study was based on an intensive 10 day field visit to the study area, prefaced by a thorough examination of the existing Environmental Impact Statement for the mine, other reports dealing with the characteristic of the study area, and extensive discussions with Sutton Resources / KMCL representatives. Preparations for the field visit were finalised during December, 1998, through the use of on-site KMCL staff.
The site visit to Bulyanhulu was conducted during the period January 5th - 15th, 1999. During this visit information was obtained as follows:
· By holding a series of discussions with key informants, including on-site KMCL employees, Sutton Resources personnel, village chairmen, ward chairmen, regional, district and national government representatives, and affected household members. These discussions were usually held at the place of residence, office or station of the key informants involved. Vehicles and translators (local teachers) were utilised to access and communicate with local households.
· Through the use of structured questionnaire surveys, and the use of participatory rural appraisal techniques. The questionnaire surveys were undertaken by a team of 7 local teachers after training and conducting pilot questionnaire surveys of selected households.
· Through the use and interpretation of all existing maps, aerial photographs and plans which could be obtained for the study area.
The data collected through both desktop and field studies was then assimilated, analysed and synthesised before being submitted.
1.4 The Bulyanhulu mine
1.4.1 History and description
Table 1.4 provides a chronogram of the history of discovery of the deposit, geological exploration, artisanal mining and construction of the mine. Gold was discovered at Bulyanhulu in 1975, reputedly by a herdsman who saw some gold bearing quartz in the roots of a fallen tree. The discovery attracted some small-scale artisanal mining to the site. Government geologists were brought in to map the site and conducted limited drilling work in the late 1970’s. The State Mining Company (Stamico) continued with exploratory drilling between 1980 and 1982. Between 1983 and 1985 Stamico entered into a joint venture with Outo Kumpu and Kone Corporation of Finland to conduct further drilling work. In December 1989 Placer Dome (an international exploration and mining company) acquired the property, conducting further exploratory work until 1992 when they relinquished their property rights to Bulyanhulu. In August 1994 the government granted a prospecting licence to Kahama Mining Corporation Ltd (KMCL), a subsidiary of Sutton Resources, a Vancouver based resources company. Barrick Gold Corporation has since bought out Sutton Resources.