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| Eurasian Minerals Inc. |
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| Environmental & Social Review Summary |
This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. |
| Project number | 27409 |
| Country |
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| Region | Latin America and the Caribbean |
| Sector | Copper |
| Department | Gbl Infrastructure & Natural Resources |
| Company name | Eurasian Minerals Inc |
| Environmental category | B |
| Status | Active |
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| Date ESRS disclosed | December 8, 2009 |
| Last Updated Date | February 9, 2012 |
| Previous Events | Invested: March 12, 2010
Signed: February 19, 2010
Approved: January 13, 2010 |
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| View Summary of Proposed Investment (SPI), click here |
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| Overview | Category & Applicable Standards | Key Issues & Mitigation | Community Engagements | Client's Documentation |
| Overview of IFC's scope of review |
IFC’s Environmental and Social (“E&S”) due diligence for the proposed equity investment in Eurasian Minerals Inc. (“Eurasian”, “EMX” or the “Company”) has been conducted at both corporate level and project level. An environmental specialist and two social development specialists undertook an appraisal of the projects in Haiti and Turkey and interacted with the Company’s consultants and management team on the project details, development plans, the environmental and social baseline studies, consultation conducted to-date, and any updates required thereafter.
IFC staff carried out a detailed, 5-day E&S appraisal visit in June 2009 of the three main exploration properties in Haiti: La Miel, Gran Bois and Treuil. The second part of the appraisal consisted of a 4-day visit in July 2009 of the two main exploration sites in Turkey: Sisorta and Akarca. Additionally, discussions took place from July to September 2009 with Eurasian senior management and its joint venture (“JV) partners to discuss how best to implement the Environmental and Social Action Plan (“ESAP” or “Action Plan”).
The key objectives of the visits and meetings were to:
Assess compliance of exploration activities with IFC requirements;
Agree on an ESAP that reflected the Company’s business model and finalize an agreed implementation schedule;
Taking into account that EMX is working as a minority partner under separate joint venture agreements with different companies for different projects, assess next steps required for EMX and each respective partner for further exploration work and potential future mine development; and
Work with EMX to explore and define potential mechanisms through which IFC E&S standards may be met under such joint venture arrangements.
The focus of the appraisal was on a preliminary E&S assessment and review of available E&S data for the various sites, the adequacy of documentation (including initial results of exploration works such as trenching, drilling and geophysics, as well as E&S policies and management systems), and the identification of any gaps and actions necessary for EMX to meet the requirements of IFC’s Performance Standards. Much information has been provided by EMX since 2006, allowing IFC to undertake a detailed review of key strategic documents and corporate policies.
During the appraisal, and in subsequent discussions with Eurasian senior management and JV partners, the IFC team highlighted the need to address future challenges early on, especially with regards to community relations, as the various projects progress through exploration works to potential development of mining operations. Eurasian’s Health, Safety, Environment, Community and Labor (“HSEC/L”) management, organization, and systems at the country level were examined and discussed extensively, as well as how current JV partners manage HSEC/L issues, with a focus on how to progress on the most advanced projects (Gran Bois and Sisorta). These discussions included policy and staffing requirements for Eurasian’s HSEC/L corporate function, and the development of adequate environmental, safety and social capacity with current JV partners at the country level to manage exploration activities as they expand. Eurasian has agreed to further develop the initial systems-based approach to comprehensively address HSEC/L management and on-going relations with stakeholders. |
| Project description |
Eurasian Minerals (EMX.V) is a Toronto-listed, Vancouver-based minerals exploration company working on a diverse portfolio in multiple locations (Haiti, Turkey, Kyrgyzstan, Romania, and reviewing prospects in other locations). The company strategy is to acquire prospective ground, generate targets, and then farm out the exploration to others (i.e. a JV partner) in return for cash, retaining (carried) interest, or net smelter return. The JV partners that EMX is currently working with are established mining companies Newmont (USA), Centerra (Canada) and Chesser (USA). Current and planned exploration activities mainly comprise initial exploration reconnaissance (with drilling to follow as warranted by reconnaissance results) by Newmont in Haiti at Gran Bois and La Miel, and continued surface drilling in Turkey at Sisorta by Chesser and at Akarca by Centerra. On other properties in Haiti and other prospects in Turkey, EMX will continue to undertake the mapping, soil sampling and trenching activities. EMX anticipates significant exploration efforts on its Haiti properties in the near term, and hence IFC has focused its due diligence on these properties.
Eurasian’s projects and/or the projects in which Eurasian has a minority interest are all in their early stages and the most common activities consist of geological mapping, soil sampling and trenching activities, small infrastructure, and in some cases of further exploration drilling, as well as the completion of pre-development studies. Therefore at this time it is not certain or possible to tell if any of the projects will actually proceed to mine development. Eurasian Minerals holds interests in other prospects, but these other prospects are either at a very early stage or effectively put on hold with limited or no current impacts. Eurasian’s projects in Kyrgyzstan are currently on hold.
The Treuil and La Miel properties are in the planning stage and are Newmont designated projects where only exploration level work is being done. The parties are seeking approvals for a Mining Convention and permits for drilling, but current activities are limited to reconnaissance with minimal surface disturbance up to and including trenching. |
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| Identified applicable performance standards |
While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:
- PS1: Social & Environmental Assessment and Management Systems
- PS2: Labor & Working Conditions
- PS3: Pollution Prevention & Abatement
- PS4: Community Health, Safety & Security
- PS5: Land Acquisition and Involuntary Resettlement
Performance Standards 6 and 8 have been identified as potentially applicable during any future mine development phase and shall be considered in the preparation of project-specific ESIAs. There are no indigenous people in the areas of operations and therefore Performance Standard 7 is not triggered.
Should any of the exploration sites be taken forward to mine development, any IFC investment in such a development would be assessed as a new project.
IFC’s Environmental Health & Safety (“EHS”) Guidelines that are expected to be applicable to this investment include:
IFC General EHS Guidelines (April 30th, 2007)
IFC Mining Guidelines (December 10th 2007) |
| Environmental and social categorization and rationale |
The main driver for IFC’s equity investment is to support Eurasian’s exploration projects in Haiti (Treuil, La Miel, and Gran Bois) and in Turkey (Sisorta and Akarca), and to set corporate benchmarks for sustainable resource development in those two countries. The investment will be used primarily to fund continued exploration drilling of Eurasian’s mineral resource properties in Haiti, including feasibility studies, environmental and social impact assessments, and other preparatory activities. Health, Safety, Environmental, and Community/Labor (“HSEC/L”) issues, both positive and negative, will be further assessed, if and when, the proposed projects move into development of mining operations.
The Corporate HSEC/L management process has been reviewed with Eurasian executives in the context of their “project generator” framework of current and future exploration projects, where they become, over time, a minority partner with another mining or exploration company taking over the JV management role for a designated property. Eurasian has recently developed a set of HSEC/L policies that are being implemented. Current management of HSEC/L issues by Eurasian has been assessed as being broadly consistent with international good practice and IFC Performance Standards, and an agreed Action Plan is being implemented to close gaps and ensure on-going compliance with these standards.
EMX has agreed to meet IFC E&S requirements for those projects for which they have management control. For future JV projects, EMX will conduct due diligence on the proposed projects in order to assess compliance with IFC Performance Standards. Where a project does not meet such standards, EMX will use reasonable efforts to have the JV partner implement an Action Plan which specifies actions and target completion dates for a project to be compliant with IFC Performance Standards. If the proposed project materially contravenes the Performance Standards in a manner that cannot be remediated through an Action Plan, the Company will not enter into a joint venture agreement. Regarding EMX’s current JV partners where JV agreements are already in place, the Action Plan states that EMX will undertake reasonable efforts to work with its JV partners to implement the Action Plan activities.
This investment is expected to have beneficial impacts on local employment, contribute to improving the livelihoods of adjacent communities, and promote HSEC/L best practice. Initial information and documented material has already been publicly disclosed locally.
The key environmental, social, and occupational health & safety and community issues associated with this project include:
Corporate level:
Social and environmental management;
Labor and working conditions; and
Community health, safety, and security.
Project level:
Social and environmental management (Eurasian or JV partner);
Exploration activities: dust and noise control, water management including drainage, trenches, drilling pads and access roads rehabilitation, use of forested and agricultural land for exploration and development, occupational health and safety, visual impacts and community safety;
Impacts on adjacent communities: traffic, land acquisition and economic displacement; and emergency preparedness and response; and
Development of adequate social and environmental assessment (baseline and impact assessment) when required.
Future projects may have additional impacts on biodiversity, local communities, or cultural property – this will be assessed on a case by case basis after baseline work is completed, and appropriate mitigation measures will be planned and implemented. Documentation relating to social and environmental baseline, social and environmental assessment (“SEA”), social and environmental management systems (“SEMS”), and community engagement will be undertaken in accordance with IFC PS requirements.
This is a Category B project according to IFC’s procedures for Environmental and Social Review of Projects because the project only involves exploration, and therefore has limited adverse impacts and risks which are manageable. This categorization evaluates actual project risks, where the project is defined as the scope of work funded by IFC’s investment. The scope of the Project is limited and it has limited adverse environmental and social impacts that are generally site-specific, largely reversible, and readily addressed through mitigation measures. |
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| Key environmental and social issues and mitigation |
PS 1: Social and Environmental Assessment and Management Systems
EMX has recently developed a set of policies regarding community, environmental, labor and health and safety for exploration activities. It is based on the IFC PS as well as similar standards developed by Newmont for worldwide use, which sets the requirements for operational aspects of exploration activities in such a way that they are conducted consistent with established policies, including the protection of human health and the environment. EMX is committed to implement these policies for new projects that it manages. Generally JV partners (in particular Newmont) have standard procedures for the development of roads, drilling pads; and other facilities are defined and planned along with management practices for control of erosion and the minimization of sediment generation. Procedures and plans for the reclamation of disturbed areas are also defined. Most written policies and/or procedures stipulate that all activities should be conducted in a manner that is cognizant of biodiversity in the area and are protective of water quality (via sedimentation) and air quality. EMX has also developed a strategy document for stakeholder engagement.
EMX is committed to develop a corporate Social and Environmental Management System (SEMS) that will be applied for all future projects. For existing JV projects EMX will use reasonable efforts to work with its partners to implement the recommendations made by IFC in the Action Plan.
Haiti:
Socio-economic Baseline Studies - Although some information has been gathered at each exploration site concerning local socio-economic circumstances and land rights, there is no formal social baseline documentation. Given the relatively densely populated rural areas in which the exploration properties are located, the complex issues associated with land rights and land use, and with impoverished households largely dependent on subsistence agriculture, EMX will work with Newmont to ensure that key social baseline information is obtained and documented in order to address and implement adequate mitigation measures. With the agreement of Newmont, the company will undertake scoping socio-economic baseline surveys (SEBS) for each of the current exploration properties (La Miel, Gran Bois, and Treuil) and for any exploration properties that are acquired in the future. Each SEBS will clearly define and map the area of influence and footprint of exploration operations based on IFC’s PS definitions (including access roads, directly and indirectly affected communities, cumulative impacts, etc). Each SEBS will provide a comprehensive profile of socio-economic circumstances pertinent to current and proposed exploration and drilling activities, including information on current land use and livelihood activities, land rights, affected households, local demographic profile, etc. If any of the exploration sites develops into a mine, detailed socio-economic baseline studies will be undertaken as part of the Social and Environmental Assessment (SEA) for the greenfield mine.
Marien Mining Corporation (MMC), the local subsidiary of EMX, fully recognizes the extent of environmental degradation in Haiti and is well aware of the limited environmental regulatory capacity. The risk of poor management of unrealistically raised expectations is key for MMC, especially since poverty is most pronounced in the northeast of Haiti, followed by the northwest, where all properties are located.
Early ‘baseline’ studies will be undertaken to establish existing conditions prior to drilling in addition to meeting expectations by regulators on environmental work. Drilling will be undertaken by the end of the year using ‘man-portable’ rigs transported on roads constructed for ATVs, thereby minimizing footprint and environmental impacts. MMC and Newmont are demonstrating a responsible approach to the prevention of erosion/land degradation and to reforestation/re-vegetation by carrying out reclamation of all land disturbances of exploration works early on, and by constructing proper erosion control systems for new infrastructure (camps, access roads, bridge). Some recommendations were discussed relative to fuel management and effluent disposal to further improve environmental practices.
Environmental management is important for Newmont, which is implementing an Environmental Management System (EMS) for environmental practices at camps and in the field, based on its recent successful operations in Suriname. Initial water and sediment sampling was conducted in November 2008 and recently a second tranche of water/sediment sampling was completed, as well as initial data assembly and site review. Initial results show that sediment control is being managed within reasonable limits. Results indicate low metal levels (as expected) while currently bacteriological analyses are not possible due to long holding times from remote sites. EMX and Newmont have agreed to document appropriate key environmental baseline information in order to address and implement adequate mitigation measures.
The IFC team met with the Direction Générale de l’Environnement and the Bureau des Mines et de l’Energie in Port-au-Prince to inform key officials about IFC’s potential investment in EMX. The focus of these discussions was on how to mitigate, at an early stage, any impact on land use and local communities, as well as protecting the already severely degraded environment from any further soil erosion and surface water degradation, and contributing to rehabilitation measures.
Turkey:
Turkey’s Eurasian operations are well managed and there is high awareness of potential environmental and social risks as they relate to exploration activities, as well as solid experience as to how these risks need to be managed within the national regulatory context. The operations in Turkey are managed by both Eurasian directly and by Chesser and Centerra. All have long standing experience working in Turkey with the exploration programs of major companies such as Rio Tinto and BHP, and are knowledgeable about the national regulatory framework as it relates to mining and environmental permitting/management. EMX Turkey is proactively identifying and managing social and environmental risk, supporting Chesser and Centerra E&S work. EMX’s work with its Turkey JV partners is helping to enhance E&S management capacity and provide for the application of good international industry practice.
To date, the Company has formally assessed and managed risks related to water quality on their Sisorta and Akarca sites. Overall, the key for building on existing efforts and improving the management of E&S issues will be the development of a more formalized management system. This approach will allow the company to systematically assess, document, and monitor the impacts of its activities and the effectiveness of its responses to minimize and mitigate such impacts, and to develop a strategic approach to community consultation based on a better understanding of past performance, of community characteristics, and of the gaps in the current engagement process. EMX is working on a reasonable efforts basis to have Chesser and Centerra put in place management systems and procedures to provide for this more formalized approach to the management of E&S issues for EMX’s Turkey properties.
Monitoring and Reporting:
In Haiti, Newmont is in the process of putting together a monitoring plan for Gran Bois and La Miel as part of the implementation of the EMS. Reporting will be formalized under the HSEC/L policy. Annual reporting to affected communities on the progress made in implementing the ESAP will also be undertaken for each project site going forward. In Turkey, Centerra and Chesser are following similar processes in line with EMX HSEC/L Policy.
PS2 Labor & Working Conditions
Haiti:
MMC and Newmont have established an Employment Policy for the Northern Haiti joint venture, which is focused on providing a transparent policy for access to temporary employment opportunities, labor contracts, and contracts to provide local goods and services. The policy provides for non-discrimination in hiring and for remuneration and compensation that complies with Haitian law. The policy places emphasis on providing equal opportunities and hiring from local communities adjacent to exploration activities.
At the existing exploration sites in Haiti, local labor has been used for trenching, base camp construction, construction of access tracks and roads, carrying in supplies and portable drilling equipment. There is keen local competition for jobs, and in order to provide opportunities to as many local people as possible, a system of rotational temporary employment has been implemented. This keen competition and rivalry between communities, together with some misunderstandings, has resulted in some disputes. Eurasian Minerals and Newmont have addressed these disputes in a professional manner, successfully dissolving tensions. As part of the formalization of the stakeholder engagement process, Eurasian Minerals will give increased attention to labor issues and the establishment of appropriate site specific grievance mechanisms.
Current Eurasian permanent staff in Haiti is about 10 while Newmont has over 40 professionals in the field. In the past year, Eurasian has provided some form of direct employment at various times to about 900-1200 people. It is expected that in the next year it will continue to employ about 800 – 1000 people on a rotational basis.
Turkey:
While there is no specific policy on local hiring and procurement in place in Turkey, the approach is similar to the one applied in Haiti. EMX, together with Chesser and Centerra, works closely with the local municipalities and engages with affected communities, who agree on and make hiring recommendations to the Company with a view to spreading the benefits of local employment broadly amongst community households. Local labor has been used for sampling, trenching, construction, catering, etc. and, just as in Haiti, a system of rotational temporary employment has been implemented. The Company pays rates above minimum salary and in line with the regional market. In order to formalize this process and increase its transparency, EMX will develop a policy for Turkey and will include non-discrimination and equal-opportunities provisions, aiming to widen opportunities for employment amongst local communities, and especially to encourage the employment of women.
Current Eurasian permanent staff in Turkey is 6. During the busy exploration period in 2008, EMX had more than 13 permanent local hires in Sisorta and up to 25 casual workers, with an additional 30-40 laborers hired locally through the drilling contractor. In Akarca, there is one permanent local hire and in 2008 some 10 temporary workers were hired as well. These employment numbers, however, are highly variable and dependent on the levels of activities on the ground.
PS 3: Pollution Prevention & Abatement
Each EMX local operation and its joint venture partner are implementing a series of procedures to monitor the impacts of past and current exploration activities. The company is actively undertaking measures to reduce and minimize environmental impacts; where possible, existing tracks are used, and the containment of drilling fluids and the use of other prevention and control measures minimizes any impacts on natural waterways. EMX and its JV partners are putting in place a monitoring process including sampling and analysis of surface water and measuring air quality at all sites. Reclamation and re-vegetation work is pending final drilling results and future infrastructure requirements for development. EMX and its partners will proceed with rehabilitation of any disturbed land that is in excess of its needs.
At this early stage of exploration activities the pollution prevention activities are very site specific. Generally exploration can influence air quality through the generation of dust and due to exhaust from internal combustion motors. As part of the EMS, Newmont has in place a Procedure for Air Quality and Dust Control with the objectives to minimize the generation of dust as well the impacts due to combustion of fossil fuels. MMC and Eurasian Turkey are implementing similar procedures at their respective exploration properties.
In Turkey, water monitoring is undertaken routinely by SRK, a reputable environment and mining independent consulting company. At Sisorta, in order to define the chemical and physical characteristics of water, samples (12 surface waters and 3 spring waters) have been collected from 15 points periodically since May 2006. Additionally, samples are also taken from drinking water sources. Similar water sampling and monitoring has been undertaken in 11 locations at the Akarca prospect area since May 2007. As part of the HSEC/L policy that EMX will develop, monitoring will also be programmed with JV partners in respect of all other E&S risks and impacts identified.
At this stage of the exploration works the estimation of EMX GHG emissions is around 1676 tonnes of CO2 per year, comprising mostly diesel consumption, generators and purchased power.
PS 4: Community Health, Safety and Security
Haiti:
Influx Management - In a socio-economic environment where there are very limited livelihood and economic opportunities, there is significant potential for a major influx of people seeking employment and the establishment of enterprises associated with mining development. There has already been some minor influx of people seeking employment associated with existing exploration and access road construction activities. The Land Acquisition and Compensation Strategy will also address measures to manage and mitigate possible influx of newcomers seeking opportunities associated with exploration, drilling activities and possible eventual early mine development. Should mine development proceed at any exploration site, a detailed Influx Management Plan will be prepared prior to any mine construction.
Security forces – Given the political and social climate it is necessary to have personal bodyguards in Port au Prince and when travelling by car between the main cities. This is also the case at the main camps at La Miel and Gran Bois with armed security guards full time on site. EMX will review the requirements of the Voluntary Principles on Security and Human Rights (‘Voluntary Principles’) and ensure that these are addressed in corporate and country specific policies. The Voluntary Principles are regarded as best practice for extractive industry companies operating in difficult environments. This implies, amongst other things, that project-related security risks will be identified; private security personnel will be screened for prior human rights abuses and will be properly trained in how to deal with members of the public; the company will have specific policies and procedures in place in relation to the conduct and the use of force, providing only for defensive and preventative measures; that security-related incidents will be properly investigated and that perpetrators will be dealt with appropriately; and that the company will inform any public security agencies which may become involved in its affairs of its policies and preferences for dealing with third parties; and the company will use its influence to promote human rights, the appropriate use of force where necessary and the avoidance of violation of workers’ rights under national laws and ILO conventions.
Turkey:
The impacts on community health, safety, and security are limited at this stage of exploration to Sisorta and Akarca, and influx management is not a major risk in these areas. The most critical, albeit limited, potential risk is the possible impact on local water resources and this is already being closely monitored by the Company. Major improvement in community health was actually derived from EMX’s assistance in one of Sisorta’s host villages, by providing access to clean potable water, following baseline information that produced alarming results of high levels of naturally occurring aluminum and acidity.
Emergency Response Plans at exploration camps in Haiti and Turkey are updated regularly; equipment such as radio and cell phones, first aid boxes, fire extinguishers, communication equipment, and designated emergency response vehicles are regularly checked and maintained. A comprehensive first aid kit is available at each exploration or base camp, and with each drilling rig operating in the field. Site Managers, additional staff in the field and in the main Office in Port-au-Prince and in Ankara have official First Aid Qualifications.
EMX will develop a corporate document for Emergency Preparedness and Response Planning.
PS 5: Land Acquisition and Involuntary Resettlement
Haiti:
Exploration activities in prospecting blocks require certain land to be acquired on a temporary basis for exploratory work (access roads, tracks and roads, base camps, trenching and drilling pads of promising sites). If exploration sites prove to be viable, land will be required permanently for additional exploration and mine development. Haiti has an established policy and process for land acquisition and compensation, including damage to crops and other assets. Newmont has an established overall policy for land acquisition and compensation associated with the company’s various international ventures. These policies and procedures are being followed by MMC and Newmont with respect to impacts to land rights and land use at the active exploration properties in Haiti, but currently there is no formal land acquisition and compensation plan. Compensation is paid for use of land and any damage to crops (at least at prevailing market prices). In addition any improvements, such as base camp buildings, will be left for the land owner’s benefit if requested.
Land rights and land use issues are particularly complex in Haiti where population densities are relatively high, and where livelihoods of most households are largely dependent on subsistence agriculture. Whilst historically almost all land was distributed for use by individual households, records of subsequent inheritances and divisions of land rights have not been well maintained. It is common for multiple claims to a particular land rights parcel, although usually only one household currently crops the land. Thus while compensation to the owner of the crops damaged is relatively straight forward, compensation for use of land is more complex, and raises the potential for disputes. While surface rights belong to land right holders, sub-surface resources belong to the State, and this also contributes to complex issues over land and resource use. Land rights and land use issues will be addressed as part of the scoping socio-economic baseline study (SEBS).
In order to address these complex issues and to ensure a common approach to land acquisition in Haiti, a Land Acquisition and Compensation Strategy will be prepared. This will be based on a review of existing procedures being used, and will outline the principles, guidelines and approaches to be followed in acquiring or using land in order to meet the requirements of national regulations and IFC’s Performance Standard 5 (Land Acquisition and Involuntary Resettlement).
Since each exploration property has site specific issues, a Land Acquisition and Compensation Plan (LACPs) for each of the current exploration properties (La Miel, Gran Bois and Treuil) will be prepared, and also for any exploration properties that are acquired in the future. These brief and succinct plans will be based on the LACS and the SEBS, and will address site specific issues, including appropriate mitigation measures for loss of land and/or impacts to current land use activities (short and long term aspects), roles and responsibilities, grievance procedures, timeframe and budget. If, at a later date, any of the exploration sites develops into a mine, detailed LACPs will be prepared as part of the SEMS.
Turkey:
The areas in which EMX’s exploration concessions are located in Turkey are State-owned land, mostly governed by the Ministry of Forestry, and thus land acquisition is not a critical issue at this point. The Company will, however, commit to preparing a set of corporate-wide guiding principles on land acquisition, providing for the development of project-specific detailed procedures and plans should it become necessary at any point in the future. |
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| Client's community engagement |
Haiti:
Although current exploration activities are at an early stage, considerable effort has already been given to building approaches to address community engagement and social issues. Key staff involved with community relations has established a sound rapport with local communities, and feedback from IFC’s interaction with local community representatives indicates that local ‘social license to operate’ and trust relationships are being successfully established. There is broad support for the mining exploration activities, especially with regard to employment opportunities. There are, however, unrealistically high expectations with regard to the extent of employment opportunities and the benefits that might be associated with possible mine development, should any of the exploration sites prove to be viable.
Public consultation is a requirement of Haiti’s policies regarding activities on exploration properties. Newmont has an established overall policy and procedures for stakeholder engagement associated with the company’s various international ventures. These policies and procedures are being followed with respect to stakeholder engagement at the active exploration properties in Haiti. In order to further formalize existing stakeholder engagement activities and meet the requirements of IFC’s PS, EMX will work with its JV partner to review existing policies and procedures and prepare a Stakeholder Engagement Strategy (SES) for their Haiti operations, covering local community engagement and consultation with government (local and regional), civil society organizations and NGOs.
Since each exploration property has site specific issues concerning community engagement, it is expected that EMX will work with Newmont to prepare appropriate Stakeholder Engagement Plans (SEPs) or their equivalent under Newmont’s policies for each of the current exploration properties (La Miel, Gran Bois and Treuil). EMX will prepare SEP’s for any exploration properties that EMX acquires and operates in the future. These brief and succinct plans will be based on the SES, and will address community relations with all affected communities (impacted by access roads, dust, vibration, earthworks, drilling activities, etc), local government agencies (including CASEC/ASEC), civil society organizations/NGOs, new immigrants to the vicinity of exploration areas, etc). The SEPs will also address appropriate grievance mechanisms and procedures for each exploration site.
Considerable effort has already been given to building approaches to address community engagement and social issues, although current exploration activities are still at an early stage in Haiti. A stakeholder and community register has been established at Gran Bois and will also be established at the other exploration sites. There has been on-going interaction with local communities since exploration activities commenced at all three sites in Haiti.
Turkey:
In Turkey, EMX places significant importance on regular engagement with communities and especially with municipal authorities near their exploration sites. In Sisorta, the Company has been holding disclosure and consultation meetings since 2004, and over the past 4 years, close to 50 small community meetings have been conducted, reaching much of the male population residing in the key villages of Ortakent and Guzelyurt, as well as other stakeholders including all the relevant local and regional public authorities. In Akarca, EMX conducts meetings in the local tea houses every two weeks in cooperation with the mayors of the villages of Akarca, Komurcukadi, and Sapci, disclosing information on their exploration activities. In order to improve these already extensive engagement activities, EMX Turkey will work with its JV partners to develop a Stakeholder Engagement Plan (SEP) for on-going community interaction. The plan will be based on an appropriate socio-economic baseline survey and stakeholder mapping exercise, with emphasis on identifying vulnerable or marginalized stakeholders who may not be represented by the local political structures (e.g. women, elderly, youth, etc.). This plan will also provide for procedures for the systematic documentation and monitoring of any disclosure and consultation activities.
The company is committed to formalizing existing community engagement activities and has agreed to prepare a Stakeholder Engagement Strategy (SES) to guide all activities in Haiti and in Turkey. In addition EMX will ask JV partners to prepare site specific SEPs for each exploration property to ensure adequate on-going community engagement that will build local “social license to operate” and meet the requirements of IFC’s PS.
Community Development
Haiti:
Community development benefits to date mainly include the upgrading of community access roads in the vicinity of exploration activities, and the provision of temporary local employment opportunities. The Newmont JV has recently completed the rehabilitation and upgrading of 46.8km of community roads, stream and river crossings, and in addition has used tractors and manual labor sourced from communities immediately adjacent to exploration sites. The JV has also contributed to grading the airstrip in Cerca La Source, and at Gran Bois a suspension bridge and a track for ATV’s is being constructed to access the exploration base camp in the uplands. The track follows an existing path and, together with the suspension bridge, will provide greatly improved access to remote upland communities, especially during the wet season. The JV is also providing temporary employment while improving this infrastructure, including the construction of base camps and trenching and exploration activities. Currently expenditure on temporary employment is approximately $15,000/month.
The company is committed to maximizing community development opportunities associated with exploration activities in Haiti, and it is expected that EMX will work with Newmont to prepare a Community Development Strategy (CDS) or its equivalent under Newmont’s policies for Treuil, La Miel and Gran Bois. The strategy will define the scope of community development initiatives; develop eligibility criteria to cover all settlements and households directly affected by exploration activities, commensurate with the extent of impacts. The CDS will be based on existing and on-going consultation with affected communities. IFC has recommended that Newmont and the CDS should also consider opportunities to work with local communities and authorities to address severe existing land degradation in the vicinity of exploration activities and nearby settlements (e.g. soil erosion control measures, including grass strips, contour banks, inter-cropping practices; agro-forestry, woodlots and re-forestation).
Turkey:
As previously mentioned, the village of Guzelyurt derived important health benefits from EMX’s water monitoring, and the construction of a 22km pipeline completed in 2008 in order to provide potable water to the village. The Company also supported education projects in the Sisorta area by donating computers, funding training courses for children, and other school equipment and materials, as well as sanitary infrastructure. With the presence of the Company, communities also benefit from improvements in road maintenance, and re-forestation after reclamation of exploration sites, using local labor.
Local hiring (mostly unskilled) represents a key benefit for host communities, and there is a well established consultation mechanism with municipal authorities as part of the identification of potential candidates and the overall hiring process. Salaries for permanent hires are above national minimum pay, and temporary hires are remunerated based on daily rates in line with the local market. Social security is paid by the company and meals are provided during work days. |
| Local access of project documentation |
Haiti:
A French version of the ESRS and the Action Plan will be disclosed by the company and made available to the public, including in the company’s Port Au Prince office, starting Tuesday, December 08, 2009.
The information contained in the ESRS and ESAP will also be disseminated orally in a culturally appropriate manner during public meetings held in the local language, and including groups of women and youths in order to ensure broad community outreach.
For additional information, please contact:
Port Au Prince:
Marien Mining
Attn: Dominique Boisson
15, Rue Tertulien Guilbaud,
Christ Roi, Haiti
Attn: Dominique Boisson
Phone: 509-2813-1247
E-mail: dboisson@eurasianminerals.com
Turkey:
A Turkish version of the ESRS and the Action Plan will be disclosed by the company and made available to the public, including in the company’s Ankara office.
The information contained in the ESRS and ESAP will also be disseminated orally in a culturally appropriate manner during public meetings held in the local language and including groups of women and youths in order to ensure broad community outreach.
For additional information, please contact:
Ankara:
Eurasia Madenclik
Cetin Emec Bulvari 77.
Sokak 6/9 A.Ovecler, Ankara.
Turkey
Attn: Mesut Solyu
Phone: 90-312-472-7510
E-mail: msoylu@eurasianminerals.com
Attachments :
ESAP (English Version) (PDF).
EMX Health, Safety, Environment, Labor and Community HSELC Policy (Final 12-5-09).pdf. |
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| Availability of Full Documentation |
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| Information Disclosed |
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