Dr. Isaiah Owiunji

Energy and Climate Programme Coordinator

WWF Uganda Country Office

Balancing Biodiversity Conservation and

Extractive Industry Development in Uganda

Presentation Outline

• Introduction to extractive industry (EI) and

biodiversity conservation (BC)

• Why concerns on EI and BC

• What are the implications of EI on BC

• What needs to be done to ensure the

balance between EI and BC

• Concluding remarks

INTRODUCTION TO EXTRACTIVE

INDUSTRY AND BIODIVERSITY

CONSERVATION

The balance between extractives and biodiversity

• The co-existence of extractive industries and biodiversity conservation is a worldwide challenge because of the risks posed by the industry to the environment and human communities

• This is because the sector creates significant opportunities in the near term while significant risks are postponed for the future generations presenting a difficult choice for policy makers

What is an Extractive Industry

Extractive Industry

• An extractive industry can be defined as a process that involves different activities which lead to the extraction of raw materials from the earth (such as oil, gas, metals, mineral and aggregates), processing and utilization by consumers (UNCTAD 2012).

• These processes take place within host countries and home countries of operating companies, as well as consuming markets

• The extractive industry has a number of phases during its development (exploration, appraisal, development, operational and decommissioning) all of which are associated with certain environmental and social impacts (Ali and O'Faircheallaigh, 2007).

What is Biodiversity Conservation?

Biodiversity Conservation

• Biodiversity is defined as variability among living organisms from all sources including inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part. This includes diversity within species, between species and of ecosystems (Convention on Biological Diversity, 2010).

• Biodiversity conservation is the active management of the biosphere to ensure the survival of the maximum diversity of species and the maintenance of genetic variability within species. It includes the maintenance of biosphere function e.g. nutrient cycling and ecosystem function.

• The term also includes the concept of sustainable resource use so that the environment may yield the greatest sustainable benefit to current generations while maintaining its potential to meet the needs and aspirations of future generations.

Extractive Industry

Development Process

Energy Companies Shareholders Employees Contractors

International Institutions Development partners Development Banks

Host Communities Indigenous people Employees Suppliers Customers Community activists

Government Executive Parliament Participating Entities Local Governments

Civil Society Organisations NGOs CBO, Universities Research Institutions Industry Associations

Key Stakeholders of Energy Development

(Source: Owiunji 2013)

What are the concerns for development of Extractives on Biodiversity Conservation in E. Africa?

• Much of Uganda’s current efforts to manage the impacts of petroleum development through a programme which runs up Entitled Strengthening the Management of the Oil and Gas Sector in Uganda funded by the Norwegian Government.

• The programme has been running since 2006

• The programme is based on the objectives of the National Oil and Gas Policy (NOGP) for Uganda, which is to ensure that oil and gas activities are undertaken in a manner that conserves the environment and biodiversity (Ministry of Energy and Mineral Development, 2010a).

• The relevant activities of the programme for the management of the environment are contained under the resource and the environmental management pillars.

• The main activities include: – The need to put in place a new legal and regulatory framework

– Introduce a new institutional framework and enhance existing frameworks to manage the petroleum sector.

– Develop envioronmental tools e.g. SEA, Oil contingency plan,

• The programme aims at building capacity of institutions to ensure efficient and effective implementation, and improve coordination among the participating institutions and application of environmental management practices

Environmental Pillar Institutions

(Government Regulators)

Development Partners, Civil Society Organisations, Host Communities, Private

Sector, Media

Multi Institutional Environmental Monitoring Committee

(Government Regulators + one CSO)

The Executive, Line Ministries, Parliament

Ministry of Water and

Environment

Relationship Among Stakeholders for Management of an Environmental Challenge in a Typical Energy

Development Programme in Uganda

(Source: Modified after MEMD 2013)

LJ/KF

10

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CONCERNS ON EXTRACTIVE INDUSTRY

AND BIODIVERSITY CONSERVATION

What has been the relationship between Extractives and Biodiversity Conservation Globally?

• The history of extractives has been characterised by conflicts with environmentalists and indigenous communities world wide.

• In many cases, the development of extractives has resulted in irreversible environmental damage and severe social disruption because there is a tendency for both extractive companies and host governments to downplay environmental concerns because of the highly lucrative business

• Moreover, destruction of biodiversity can disrupt ecosystems which in turn can impact negatively on the human communities that dependent on such systems.

• However, humans and biodiversity can co-exist side by side on the planet if there is genuine respect for the natural world and the living things in it.

• It is important that humans must recognise their responsibility not to harm or interfere with a viable life community of wild animals and plants as they also provide for our wellbeing

• The care for the environment is an ethics issue, so to kill or otherwise harm creatures is morally wrong and can only be justified if we have no feasible alternative

What are the concerns for development of Extractives on Biodiversity Conservation in E. Africa?

• Absence or outdated environmental policies and legislation for management of extractives – The legislation to manage and regulate the industry and the environment

are still in a state of evolution

– The relevant pieces of legislation will need to be set within the wider legislative context arising from the emerging issues such as oil and gas

– Even where environmental policies and legislation exist, there have been challenges with implementation

– There is very little monitoring of the adequacy of the implementation of the environmental legislation to address impacts of extractives

– Uganda is a signatory to numerous international agreements and conventions, but their status of implementation is not clear

• Weak capacity of environmental institutions to cope with the current interest in the development of extractives – The capacity of environmental institutions and other key stakeholders in

the sub sector have not been systematically built to deal with extractive industry developments (Norad Fund does not support long-term courses)

– Much of the funding for management of impacts of extractives and development of tools is donor funded (NORAD in Uganda, USAID, WB)

What are the concerns for development of Extractives on Biodiversity Conservation in A. Graben?

• Limited knowledge and skills to adequately understand, monitor and manage impacts of petroleum development on wildlife and communities

– No long-term research being undertaken

– Lack of labs and equipment

– Irregular monitoring activities by environmental institutions

• Overlapping of sensitive ecosystems with the extractive industry fields and challenges of infrastructure development

– The Albertine Graben in Uganda is a very sensitive environment

– The coastal E. Africa (coastal forests and coral reefs)

– Fragile Turkana ecosystems

• Ineffective implementation of environmental tools – E.g. SEA in some of the countries are done after the petroleum activities were already

started

– EIA review process is also weak and not systematic

• Lack of coordinated and systematic approach to data collection for monitoring

– Data collection is done in piece without robust and standard methods of data collection used in terms of Spatial coverage, parameters covered, frequency etc

– There are issues of quality control of field activities and data management

• Resistance from MWE and MEMD to make available information especially those generated by extractive companies especially in Uganda

WHAT ARE THE IMPLICATIONS OF

EXTRACTIVES ON BIODIVERSITY?

Mineral Occurrence map of Uganda

Courtesy of MEMD

Mineral Investment Opportunities –

cont’d

17

Uranium Over 30 Uranium targets have been identified and 10

targets are priority for follow up

A. Kei and Midigo-Kaya Basin, Arua district.

B. Acha-Alo basin-Pakwach district.

C. Zipia, Bibia, Pekelle -Ayugi Basin-Adjumani district

D. Naam-Okora, Ogli and Wol (Pager-Agago-Ogel Basin)-Kitgum district.

E. Karongo-Waki Basin- Masindi

F. Bulyango, Kigozi-Kiizi Basin-Kabarole district.

G. Mpanga-Kahambu Basin Kyatwa (Ndale) -Mpaga Basin, Kyakutama- Basin-Kabarole district.

H. Rubindi, Kashongi -Nyabishekye Basin, Mirama Kababo Basin – Mbarara distrtict.

I. Kinyasano, Nyakibale (Rukungiri District), Kagamba, Ntugamo, Rubare Ntungamo District), Gayaza, Kahirimbi- Mbarara district.

J. Mabale, Kagadi, Isunga, Pachwa, Kabwoya-Hoima district. Courtesy of MEMD

Tororo Cement-

Limestone

Tororo Cement-

Limestone

Jan Mangal (u) Ltd-Gold

Greenstone resources Ltd.-gold

Ataco services Ltd.-

Gypsum

Kilembe Mines- Cu,

Co, Limestone

Anglo Ugandan

Corporation-Gold

Kisita Mining company

limited-gold

Hima cement Limited-

Limestone

Mining cadastre map showing Mining Leases

18

Osukulu

Phosphat

e

Courtesy of MEMD

Simba Mines Ltd.-Gold

First Mining (u) Ltd.-Tin

Zarnack Holdings-Tin

Muhindo enterprise -

koalin

Uganda International Mining –iron ore

Berkley reef -

Wolfram

Great lakes-iron ore Kigezi steel –

Iron ore

Krone Uganda Ltd.-Wolfram

19

Mining cadastre map showing Mining Leases in SW Uganda

Courtesy of MEMD

Mineral Investment Opportunities –

cont’d

20

Directorate of Geological Survey and Mines

Geothermal energy

4 Main areas under

exploration are:

Buranga, Katwe,

Kibiro, Panymur – All in

Western Rift Valley.

Courtesy of MEMD

Hydropower Development in MFNP

Environmental Impacts of Petroleum Development (1)

Project Stage Project Activity Potential Biodiversity

Impacts

Pre-bid phase -Business assessment

-Assessment of environmental and

social risks

- No impact

Exploration and

appraisal phase

(Seismic, drilling

appraisal)

-Provision of access

-Workers camps

-Use of resources

-Clearing of lines

-Mobilisation of drill rig

-Drilling

-Well testing and flaring

-Etc

-Footprint impacts

-Disturbance of fauna

-Noise impacts

-Physical disturbance

-Contamination of soils,

surface & groundwater

-Landscape modification

- Introduction of invasive

spp

Development

phase

(Construction)

-Camps, access

-Resource use

-Movement of vehicles and heavy

machinery

-Acquisition of land

-Habitat loss

-Soil erosion

-Land take

-Contamination of soils,

surface & groundwater

-Landscape modification

Environmental impacts of Petroleum development (2)

Project Stage Project Activity Potential Biodiversity

Impacts

Production phase - Footprint

-Visible presence

- Product handling and storage,

- Refining and use of chemicals

-Generation of wastes

-Emissions and noise

-Etc

- Temporary/Permanent

loss of habitat

-Effects on landscape

and visual amenity

- Contamination of soil,

water, air

-Land take

-Displacement

Decommissioning

phase

- Removal of facilities and restoration

Impacts of mineral extraction • Destruction of natural habitat at mining and waste disposal sites.

• Destruction of adjacent habitats arising from influx of settlers.

• Changes in river regime and ecology due to siltation and flow

modification.

• Alteration in water tables and change in landform.

• Land degradation due to inadequate rehabilitation after closure.

• Dangers from failure of structures and dams.

• Drainage from sites (acid mine drainage and mine water).

• Sediment runoff from mining sites.

• Pollution from mining operations in riverbeds (dredging).

• Effluent from mineral processing operations.

• Sewage effluent from the site and oil and fuel spills

• Soil contamination from treatment residues and spillage of chemicals.

• Leaching of pollutants from tailings and disposal areas and

contaminated soils.

• Noxious emissions from minerals processing operations.

• Release of methane from mines

WHAT NEEDS TO BE DONE TO ENSURE

THE BALANCE BETWEEN EXTRACTIVE

INDUSTRY DEVELOPMENT AND

BIODIVERSITY CONSERVATION

Factors to Ensure Co-existence between Biodiversity and Extractives (1)

Legislation formulation and implementation

– Formulating comprehensive policies and legislation to manage extractives

– Implementing, monitoring and evaluating the implementation of the policies and

legislation

– Improving institutional coordination and policy coherence across sectoral

ministries of extractives

Strengthening capacity of institutions and proper coordination

– Build the capacity of staff, remunerate and retain the trained staff

– Strengthening capacities of local governments and civil society, including

women’s groups and indigenous peoples’ organizations to engage in

participatory planning, implementation and monitoring of inclusive and

sustainable policies for the management of extractives

– Establishment of partnerships with the private sector, civil society, governments

of extractive countries at the global, regional and national levels to support and

scale-up country-level efforts;

– Define the roles of institutions, improve coordination and provide resources

– Establish infrastructure and procure equipment

– Improve on compliance enforcement and monitoring

Factors to Ensure Co-existence between Biodiversity and Extractives (2)

• Establishment of partnerships with the private sector, civil society,

home governments of extractive companies at the global, regional

and national levels to support and scale-up country-level efforts

– For example ensuring the implementation of America's DoddFrank Act and the

European Union's 'EU Transparency Directive' that make it mandatory for

corporations listed on stock markets in those countries to report on extractive

sector payments to governments

• Ensure environmental funds benefit host communities as well as

management of the environment

• Establish joint venture partnerships with government, extractive

companies and CSOs for information exchange (JVP in Uganda)

• Observing good environmental practice

– Implementing industry and international standards

• Meaningful stakeholder involvement

• Using appropriate technology by extractive companies

Factors to Ensure Co-existence between Biodiversity and Extractives (3)

• Flexibility and use of appropriate technology by

extractive companies:

– i) relocation of workers camps outside the protected

areas,

– ii) transportation of waste outside the protected areas

as soon as drilling activity was completed

– iii) accepting to shift the position of a proposed drilling

site close to a tourism circuit in Buligi Tourism Circuit

– Using drones in sensitive areas

– Using Schlumberger Evergreen Burner

– Using sand holding materials materials such as

‘Neoweb’ (which helps to stabilize soil) and ‘Bidden’

Factors to Ensure Co-existence between Biodiversity and Extractives (4)

East African Gov’ts and Oil companies improve environmental practices

for addressing impacts of extractive development:

Improving the EIA practice by revising the EIA guidelines.

– Implementing the recommendations of the SEAs

– Implementing the recommendation of the monitoring plan, sensitivity atlas

– Develop the oil spill contingency plans and establish implementation funds

– Oil companies undertake voluntary initiatives to improve environmental

performance

Forming Partnerships and/or collaborations between, government, CSO

and extractive:

– Financial support

– Technical advice

– Logistic support/access to property

– Data/information sharing

– Review/benchmarking/assurance

– Convening stakeholders

– A partnership can involve completely independent perspectives

and one partner may publicly disagree with the other

Thank you