In-Migration, Artisanal and Small-Scale Mining and Sustainable Livelihoods

CASM Annual Conference

Brasilia, Brazil

October 2008

DIGGING TO DELIVER DEVELOPMENT

What is CommDev?

The World Bank/IFC Oil, Gas & Mining Sustainable Community Development Fund

• $12 million fund focused on helping communities receive sustainable benefits from Extractive Industry (EI) projects;

• Supports IFC/World Bank clients who want to collaborate to go above and beyond social and environmental safeguards;

• Provides public goods for all stakeholders on community development in extractive communities;

• Offers capacity building, technical assistance, tool development and information sharing through on-line Clearinghouse (www.commdev.org);

DEFINITION

Project induced in-migration (or influx) describes the movement of people into an area in response to the prospect, development and/or operation of a project and the opportunities that the project presents or generate.

ASM migrants, Ruashi Mine (Lubumbashi, DRC)

Types of Migrants

ASM migrants: seek mineral resources

Other migrants: job-seekers, service providers, SMEs, entrepreneurs migrate to project area to seek jobs with the Company/Contractor or form part of the Company’s value chain. Illicit activities (prostitution, gambling and alcoholism can result.

Name Location Industry Start + 5 yrs + 10 yrs

Porgera PNG Mining 2 000 9, 000 15, 000

Obajana Nigeria Cement 300 - 6, 000

Kamsar Bauxite

Mine

Guinea Mining 300 - 75, 000

PT Freeport Indonesia

Papua, Indonesia

Mining (Copper &

Gold)

2, 500 - 50, 000

Sadiola Mali Mining (Gold)

13, 000 - 23, 000

Nam Theun

Laos Hydropower 3,000 9 – 15, 000

Magnitude

POSITIVE IMPACTS

• Increased business opportunities (transport, accommodation, food, goods

services, skills development, migration of skilled workers);

• Increased availability and accessibility of goods & services (entrepreneurs,

service-providers, traders due to improved access and communication networks);

• Local employment (SMEs, increased income = increased demand for goods and

services);

ADVERSE IMPACTS

Local conflict - tension and/or disputes between native populations and new-

comers.

Environment - land degradation, deforestation, loss in biodiversity, housing, food

and water shortages, pressure on agricultural land, over-hunting and fishing.

Health & Security - proliferation of diseases (STD/HIV/AIDS/ respiratory

infections and waterborne diseases), insufficient ♯ of health centres, public

insecurity, criminal behaviour.

Social - breakdown of cultural norms, traditional structures, native identity, social

pathologies (alcoholism, drugs, gambling, prostitution).

Infrastructure – increased demand on services and utilities, schools, health

centres, traffic.

ASM & Sustainable Livelihoods

Access to Finance: Provide advice on opening accounts and requesting investment loans;

Vocational Training: Explain how to become competent in artisanal mining, improve techniques and qualify for a national diploma in the practice;

Small Business Training: Livelihood alternatives in agriculture and micro-enterprise/supply chain/business skills development including a specific emphasis on support for women;

Safer Work Programs to improve ASM environmental practices through Educational training (ie. ILO);

Legal Markets to sell minerals produced;

Kalukundi Village is an artisanal mining village in Katanga, DRC, situated next to a mining concession. The photo shows quite clearly the temporary / transient nature of the village, which has been hacked out of miombo forest next to a mineralised 'fragment' (ore body). The vast majority of residentsare young 'diggers' who have no intention of staying and no community ties. There are standard problems with sex work / STDs, drink, gambling, lack of sanitation / services etc.

Kalukundi Village (Katanga, DRC)

Obajana Cement Plant, Nigeria

Photo of food sellers who came to site to feed the workforce. In this case, most Nigerian workers had no access to canteens and didn't like the Indian contractors' food anyway, so an informal settlement arose directly across the highway from the contractors’ gate. This housed sex workers, food sellers, peddlers of cheap Chinese goods etc. Service providers are a major source of influx in most projects.

1. Is it possible to anticipate the magnitude of influx at a large-scale project site or a very prospective ASM site?

2. It is clear that many aspects of influx management are the domain of local/regional government. To what extent should a Company go beyond promoting awareness of influx issues to managing them?

3. Is it possible to create sustainable livelihoods for ASM and the local population when in-migration is time and project bound and occurs in under-developed remote regions of a country?

QUESTIONS FOR YOU

DRIVERS

a) Direct - hiring of staff / contractors / sub-contractors / ASM ‘rush’ (gold)

b) Opportunistic – spontaneous arrival of job-seekers, service providers, employee families, prostitution, entrepreneurs (selling market vegetables, alcohol, gambling), ASM workers.

c) Lack of government services in neighbouring region, access roads,

KEY PROJECT PHASE: Construction & Operations

SECTORS: Any large project, many smaller ones; most commonly infrastructure, extractive industries & manufacturing (especially remote locations).

‘Push vs. Pull Factors’

Simandou Gold Mine, Guinea

AFFECTED VILLAGES

Watafredou: 48% increase in in-migrants since 2007.

Moribadou: 39% increase.

REASONS

• Close proximity to base camp and mineral deposits;

• Project Expansion;

• Economic opportunity;

• Feasibility Phase;

1. Management Approaches and Sector Specific Interventions

i. Managing the Physical and Social Footprint of In-migration

ii. Managing the Impacts of Project-Induced In-migration

2. Planning for influx with local authorities, designating sites, providing basic infrastructure

3. Focus on capacity building for local authorities: district/town planning, infrastructure, health, security, traffic management

4. Ensure ESMP contains influx management plan, including construction camp plans, worker codes of conduct, etc.

5. Promote alternative livelihoods for ASM workers (is this possible?)

MANAGEMENT STRATEGIES

Forward Plans

1. In-migration Discussion Forum (CommDev)

2. Recommendation to CASM Working Group

3. Strategic Economic Interventions for ASM workers

Information Clearinghouse

www.CommDev.org

A resource for global good practices, tools, training programs and methodologies for supporting community development in mineral extractive environments

Over 1,500 selective resources available

Resource Center organized into 20 key topic areas

Set of tool kits to guide users implementing community development projects

Case studies, current news and events, glossary, external links and more…

Rush ASM

Rush ASM presents negative environmental and social impacts. In cases of high-unit-value commodities, such as gold or diamonds, news of a major strike can cause the influx of tens of thousands of miners to an area in a matter of months. With expectations of high incomes and low capital investment, coupled with inadequate knowledge and skills, rush ASM often leads to dire social, environmental, and health conditions. These conditions are exacerbated by poor infrastructure and services and a lack of government presence in often marginalized, remote, and hastily established communities.

ASM and In-migration: influx of miners due to sudden local discoveries, an exploration of minerals, external economical or geographical factors (drought, war, etc.) and booming commodity prices.

• Sadiola Gold Mine, Mali (130,000 - 200,000 ASM in Mali)

• Simandou, Guinea (80,000 - 150,000 ASM in Guinea)

THANK YOU

Arjun Bhallaabhalla@ifc.org

Veronica Nyhan Jonesvnyhanjones@ifc.org