Ann: Completion of Key Resettlement Work, page-86

Ok, this does get a little long, but well worth a read if you want to save yourself some time going through the entire document, which I am only 1/3 way through myself. It is far more detailed and comprehensive than I ever imagine.

Finance;

• NEMC have requested a copy of this RPF in order to approve the updated ESIA
• The land access and resettlement objectives of the Company are to ensure no one affected by the Project’s implementation is disadvantaged compared to current conditions, livelihoods and living standards are restored and, where possible, improved.
• Ensuring that they have the opportunity to restore, at a minimum, or improve their living standards to at least pre-resettlement or pre-disturbance conditions and to share benefits from the Project.
• Summarises the applicable international standards TanzGraphite are adopting, notably the International Finance Corporation (IFC) requirements contained within Performance Standard 5 on Land Acquisition and Involuntary Resettlement7 and the Equator Principles III8 (Section 3.3).
• Power of compulsory acquisition of land when in the Public Interest, including for mining of minerals.
• Methods for valuing land and assets and for calculating compensation due.
• Requirements for prompt payment of compensation.
• Section 97 (1) states that “Where the rights conferred by a mineral right cannot reasonably be exercised without affecting injuriously the interest of any owner or occupier of the land over which those rights extend as required under section 96, the mineral right holder shall: (a) advise the owner or occupier of the land to vacate the area, and consult the relevant local government authority on amendment of the land use plan; (b) submit a proposed plan on compensation, relocation and resettlement of the owner or occupier of the land as per the Land Act.” Sub-section (2) states: “The procedures established under the Land Act and the Village Land Act with regard to establishing the market value of land shall apply in determining fair and reasonable compensation of land referred in this section and section 96.”

Summary; The equator principals allow for involuntary resettlement as long as you have not disadvantaged the locals compared to current conditions. I will add that this report also confirms, repeatedly, what we’ve been saying all along, “The community are predominantly dependent on land-based livelihoods with subsistence farming”, it is not difficult, nor expensive to improve someone’s subsistence based existence.

Upgrade from 40,000tpa to 60,000tpa;

• By increasing the mining rate to produce a feed of 660,000 TPA of ore to the process plant, the Project could also produce up to 60,000 TPA of product, with only marginal upgrades to the infrastructure. This is known as the Accelerated Throughput Scenario
• The mine will operate initially on 5 days a week, 9 hours per day roster with the equipment maintenance working on a 2-shift roster. Additional mining capacity will be achieved for increased production by increasing working hours and days worked.

Summary; the 40,000tpa BFS was modelled on a 5 days a week, 9 hour days operating schedule. The increase to 60,000 is as simple as an extra piece of machinery, and extra shifts. Maybe 24 hours, like every other mine in the world.

Labour;

• The Project will provide major benefits to the local community in terms of employment, incomes and education and training.
• Underlying this framework is the commitment of TanzGraphite to ensure that the wealth created and benefits flowing from the Project are shared with the local community. This includes, not only the compensation for resettlement, but also the opportunity to share in future income, employment, business opportunities and education flowing from the Project. Once in operation the Project will provide over 200 jobs and generate over $200 million in taxes for the national and local governments.
• The workforce during construction is likely to include: approximately 260 workers.
• Over 50 % of Tanzanian nationals will be low-skilled labour.
• TG are already providing skills- training opportunities to persons from the Epanko Village hamlets.
• A bus service will be provided to transport employees to and from work.

Summary, some of the locals are already being trained by KNL. Further to that, they will be our future workforce and given they currently rely upon significant land-based dependency in Epanko, and very low to low incomes for paid work, I expect this to be a welcome change. Actual wages which will enrich the locals.

Topography and understanding locals;

• The Project area is characterised by rugged topography with hills and valleys
• The community are predominantly dependent on landbased livelihoods with subsistence farming of beans, rice, maize, cassava and other crops.
• These dwellings are not served by any local utilities, and local inhabitants were observed carrying water from nearby streams.
• with the majority of households undertaking subsistence agricultural activity.
• Involvement in waged labour is relatively low and centres around employment in the mining industry with a number of artisanal and small scale mining (ASM) companies in the region and some employment from TanzGraphite.
• The significant land-based dependency in Epanko, very low to low incomes for paid work and presence of very young, zero income and aging households does mean there are signs of vulnerability in the local communities within the Project area which will be considered in terms of methods of engagement and the resettlement/livelihood assistance offered.

Summary, we aren’t talking about a land which has been coveted by anyone in the past, ever. We’re talking about land which is some of the least productive land within any graphite tenement. This means it will be nowhere as expensive as other’s may hope. This is why Spinks chose it.

Displacement;

• Could involve the physical and/or economic displacement of some households, community facilities and land owners and users.
• 322 are resident in the RAP Area and 81 are resident outside the RAP Area
• The Project design and layout has been optimised to minimise physical and economic displacement and confirm the area of Project land take.
• Physical displacement is currently anticipated to affect 3 of the hamlets.
• An area has been identified as a potential location for the Resettlement Village.
• However, most of these areas have been severely burned in the recent past, either naturally or by local communities seeking to clear more land for cultivation.

Summary, displacement is being minimised. But an alternative village location has already been found and we aren’t moving entire villages. At most we’re moving a percentage of the local village to minimise not only cost, but any stress this may cause.

Other;

• While working together on the first modern gold mine to operate in Tanzania the management team was recognised by the Tanzanian Government for their initiatives and commitment to the surrounding communities and the Environment winning the first two Presidential Awards.
• The comprehensive Resettlement Action Plan for the Project requires many studies, agreements, consultation activities and decisions, all of which are in progress.

Summary, KNL is well connected. There’s a reason we donated to those schools years ago, and I believe it was to show the locals we can build better schools, so let us move that one. The president gave us 2 awards!

Sacred Tree;

• At the point of preparing the RPF from the walkover and ESIA survey no known cultural heritage sites exist within the proposed Access Road corridor. An area of dense forest, located close to (but outside) the road corridor, is considered a sacred forest by local residents and contains graves of the ancestors of local families. This site will not be directly affected by the construction of the access road and TG will ensure appropriate provisions are within Contractors documents and plans to avoid accidental access to this area during construction.

The sacred forest will not be touched. At all.

The blueprint the company has provided makes me more confident than I’ve ever been that KNL will not make it to mining. Why? The attached is a step by step guide in how to run KNL, and it confirms the enticing metrics which will be enhanced by a resource updated and BFS. I’m predicting KNL will be taken over, Epanko will be mined under another’s name.