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Simandou

Simandou Mine Non-Technical Summary

Social and Environmental Impact Assessment (SEIA)

Company: Rio Tinto Product Group: Iron Ore Business Unit: Simfer SA Date: August 2012

Social and Environmental Impact Assessment (SEIA)

Rio Tinto Simandou

1.
1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8.

Introduction to the Simandou Project


This Document Overview Project Sponsor Project History Environmental and Social Studies The Guinean Regulatory Framework Rio Tintos approach to Social and Environmental Responsibility The IFC Policy Framework on Social and Environmental Sustainability

3 3 4 4 4 4 5 5 5 6 6 8 9 10 11 12 15 18 26 27 28

2.
2.1. 2.2. 2.3.

The Project
Overview of the Mine Main Facilities Consideration of Alternatives

3. 4.
4.2. 4.3. 4.4. 4.5.

Stakeholder Engagement Summary of Social and Environmental Impacts Addressed In The SEIA
Biodiversity and Natural Resources Pollution and Waste Cultural, Economic and Social Conditions Managing Mine Closure

5. 6.

Translating The SEIA into Social and Environmental Management Next Steps

1. Introduction to the Simandou Project

1. Introduction to the Simandou Project

1.1 This Document


A development of the magnitude of the Simandou Project requires comprehensive and effective management of environmental and social issues. Simfer is committed to achieving this in line with Guinean regulations and international good practice. A key step in this is the preparation of a full Social and Environmental Impact Assessment (SEIA) for the Project. An SEIA is a study into the effects or impacts of construction, operation and closure of a project on the physical, natural, cultural, social and socio-economic environment. The study is then reported. For the Simandou Project the SEIA has considered the positive and negative impacts on the environment and society. A report has been written to explain the findings of the study and the report also describes how the Project has been designed and how it will be implemented to minimise its adverse impacts and maximise its benefits. The Project SEIA report is presented in five volumes: Volume I: Volume II: Volume III: Volume IV: SEIA for the Simandou Mine. SEIA for the Simandou Railway. SEIA for the Simandou Port. Project-Wide Social and Cumulative Impact Assessment. Simandou Project Social and Environmental Management Plan.

The remainder of Section 1 of this NTS presents an overview of the Simandou Project and explains who is developing it and what has happened on the project so far. Section 1 finishes with a summary of the Guinean regulatory framework within which the SEIA has been undertaken and the social and environmental drivers that have shaped the assessment. After Section 1, the remainder of this NTS is structured as follows: Section 2 describes the Protect and alternatives considered. Section 3 outlines the stakeholder engagement program followed by the SEIA. Section 4 provides a summary of the social and environmental impacts and proposed mitigation measures. Section 5 describes the approach to mine closure. Section 6 outlines the social and environmental management framework. Section 7 describes the next steps in the SEIA process.

Volume V:

This document presents a Non-Technical Summary (NTS) of Volume I the SEIA for the mining component of the Project. It provides an overview and summary of the SEIA findings, focussing on the key social and environmental issues arising from construction, operation and closure of the Simandou Mine and the mitigation measures required to manage these issues.
The Simandou Range Looking South from Oulba Towards Pic de Fon

1. Introduction to the Simandou Project

1.2 Overview
The Simandou Project is a world class iron ore mining development located in Guinea in West Africa. The project will consist of a 95 million tonnes per year iron ore mine on the boundary of the Beyla and Macenta Prefectures of southeastern Guinea, a new 670 km long railway running west to connect the mine to the coast, and a new deepwater port in Forcariah Prefecture. Their locations are shown in Figure 1.

1.4 Project History


Rio Tinto signed a Basic Convention (Convention de base) with the Republic of Guinea on development of the Project in November 2002. This was ratified by law in 2003. Simfer was then created as the Guinean company in charge of developing and operating the Project. Since then, Simfer has undertaken a complex programme of work to assess the commercial and technical feasibility of the Project. This has included an exploration programme, engineering feasibility studies and social and environmental studies. In April 2011, Simfer and the Government of Guinea signed a Settlement Agreement (Accord transactionnel) under which the parties confirmed Simfers title to the mining concession covering the southern part of the Simandou Range. The Settlement Agreement also establishes the mine, railway and port ownership and investment framework. The mining operations will occur within the mining concession areas with MineCo owning all mining assets located within the concession area. MineCo will be formed by a partnership between Simfer and the Government of Guinea with the Governments stake, a maximum of 35% being progressively acquired over twenty years (15% will be at no cost to the Government). The rail and port infrastructure will be built by Rio Tinto Iron Ore Expansion Projects, operated by Simfer and owned by InfraCo, a special purpose vehicle to be jointly owned by the Government (51%) and the remaining shareholders of Simfer. Participants in this infrastructure vehicle will be required to fully fund their proportion of the infrastructure capital cost. As part of the exploration programme, orebody delineation work started in 1997. More than 1 300 drill holes totalling over 260 000 metres of drilling have been completed to date to determine the location, size and shape of the iron ore deposits, their metallurgical and mineralogical specifications, and their commercial potential in the global iron ore market. A Preliminary Engineering Assessment (PEA) was completed in February 2012 and the Project has now moved forward into detailed engineering phase.

Figure 1 Project Overview

The mine will develop two iron ore deposits covering approximately 13 square kilometres of the southern part of the Simandou Range. Mine production is planned to start in 2015, reaching full capacity from about 2020 and then continuing for at least 40 years. This will be the largest integrated mining and infrastructure project ever developed in Africa. It will make a significant contribution to the national Guinean economy, by generating government revenue, creating employment, the demand for local goods and services, and fostering social and economic development.

1.3 Project Sponsor


The Project is being developed by Simfer, a Guineanregistered company. Simfer is a member of the international mining group Rio Tinto, and holds a mining concession for the southern part of the Simandou Range. Five percent of Simfer is owned by the International Finance Corporation (IFC the private sector investment arm of the World Bank), and the remaining 95% by a joint-venture of the Rio Tinto Group (53%) and the Aluminium Corporation of China (Chalco) (47%).

1.5 Environmental and Social Studies


Over more than ten years, the Project has conducted an evolving programme of social and environmental studies. These have included wide-ranging baseline surveys to collect data on physical, natural and social conditions in the Projects area of influence, inputs to siting facilities and design of Project components, plus an extensive engagement programme with government and local communities. A number of smaller SEIAs have also been prepared to support a programme of early construction work such as a marine offloading facility, temporary camps, roadworks and quarries. SEIAs for the early construction works were submitted to government and approved in late 2011 and early 2012.

1. Introduction to the Simandou Project

The SEIA for the main Project was initiated in April 2011 and a Draft Report has now been presented to government and published for comment. The assessment uses the results of all baseline studies undertaken over several years and has involved a comprehensive suite of technical studies on the various social and environmental aspects of the Project. These studies will continue as part of on-going monitoring and further assessment to inform the detailed engineering phase, planning for construction and operation and the design and implementation of social and environmental mitigation measures.

1.7 Rio Tintos Approach to Social and Environmental Responsibility


Rio Tinto is committed to excellence in environmental and social performance. It operates in accordance with strict corporate policies covering social and environmental responsibility, corporate governance and sustainability established under its a global code of business conduct The way we work. This includes a series of publicly available policy statements, covering sustainable development, environment, communities, human rights and health. All of these policies can be accessed via the Rio Tinto website. Rio Tinto also supports several international voluntary agreements, including the Extractive Industries Transparency Initiative, the Global Sullivan Principles of Social Responsibility, the International Chamber of Commerce Charter for Sustainable Development, the International Council on Mining and Metals Sustainable Development Framework, the International Labour Organisation Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact, the Voluntary Principles on Human Rights, and the Organisation for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

1.6 The Guinean Regulatory Framework


Regulations on Environmental Impact Assessments (EIA) in Guinea is defined by lordonnance N045/PRG/87 du 28 Mai 1987, modifie par lordonnance N022/PRG/89 du 10 Mars 1989, portant Code de la protection et de la mise en valeur de lenvironnement. In addition, dcret prsidentiel 199/PRG/SGG/89 du 8 novembre 1989 codifiant les tudes dimpact sur lenvironnement defines projects subject to an EIA and its approval by the ministry in charge of environment. Lastly, arrt ministriel 990/ MME/SGG/90, du 31 Mars 1990, dfinissant le contenu, la mthodologie et la procdure de ltude dimpact sur lenvironnement, pris en application du dcret prsidentiel 199/PRG/SGG/89, determines the content, methodology, and procedure applicable to undertaking an EIA. In line with international best practice, the Simandou project has chosen to broaden the scope of the EIA to include social aspects, hence the acronym SEIA. As required under the Environment Code, the SEIA will be submitted to the Delegate Minister for the Environment, Water and Forests (Ministre de lenvironnement, eaux et forts or MDEEF) in order to apply for a certificate of Environmental Compliance for the Project. The Bureau Guinen des Etudes et Evaluations Environnementales (BGEEE), an entity of the MDEEF, will commission a public enquiry through which the public will be entitled to express their comments on the Project and on the SEIA. At the end of the public enquiry, a Comit Technique dAnalyse Environnementale (CTAE) in collaboration with representatives of other national and regional authorities having an interest in the Project, will invite the Proponent to respond to the issues raised during the public enquiry. The CTAE will then make a recommendation on the acceptability of the SEIA to the Minister who will then make a decision on grant of the environmental compliance certificate. To initiate the SEIA process the Terms of Reference were developed in early August 2011. They were evaluated in August and September 2011, and approved by the Minister for the Environment on 19 September 2011. The SEIA has been developed based on those approved Terms of Reference.

1.8 The IFC Policy Framework on Social and Environmental Sustainability


As the IFC is a Project partner, the Project will be developed in line with the IFCs Policy on Social and Environmental Sustainability and its Social and Environmental Performance Standards. The Performance Standards (PS) relevant to the Project are listed below: PS1: Social and Environmental Assessment and Management Systems. PS2: Labour and Working Conditions. PS3: Resource Efficiency and Pollution Prevention. PS4: Community Health, Safety and Security. PS5: Land Acquisition and Involuntary Resettlement. PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS8: Cultural Heritage. PS7 on Indigenous People is not applicable as the Project area does not host communities corresponding to the internationally agreed definition of indigenous people.

2. The Project

2. The Project

2.1 Overview of the Mine


The Simandou range is a long narrow ridge extending over more than 100 kilometres along a north-south axis, and out to about 15 km in width. The Simfer concession area is shown in Figure 2 and is located in the southern part of the range, extending over approximately 50 kilometres north-south and 5 to 7 kilometres east-west. The area considered for mining covers a length of approximately 15 km, and includes two deposits: Oulba (north) and Pic de Fon (south). The regional setting of the Project is shown in Figure 2.

The Project will mine the deposits at Pic de Fon and Oulba, covering in total about 13 square kilometres of the ridge. The ore bodies are estimated to contain two to three billion tonnes of high-grade iron ore including haematite, goethite, and itabirite, and extend down to 500 m below the surface. The ore will be mined in open pits created by drilling and blasting the rock, then loading it onto haul trucks and moving it to primary and secondary crushers and sizers located in the pits. The pits will develop progressively over the life of each deposit with phases of works progressing across the pit areas as illustrated in grey in Figures 3. Each pit will be formed by mining in benches (platforms down the side of the pit) until the base of the deposit is reached. The orebody is also a major aquifer and so, as the pits are excavated, they will need to be dewatered by pumping to keep the working area dry. An illustration of the mining sequence is shown in Figure 3.

Oulba

Pic de Fon

Figure 2 Map of Overall Simandou Range and Location of Simfer Concession and Two Pits

Figure 3 Mining Sequence for Oulba and Pic de Fon (Early, Mid and Late Mine Life)

2. The Project

Typical Example of Mine Pit Benches

Typical Haul Truck Used in the Mine

Once crushed, the ore will be transported down the mountain via a conveyor system to an ore processing plant located at the base of the east side of the ridge. There, the ore will be further crushed and screened to obtain a product of consistent size, before being carried by conveyor to a stockyard located at the railhead. The ore is then loaded onto trains for transport to the port for shipping to customers around the world. In extracting saleable ore, waste rock and low grade ore will be generated. For the first years of mining (up to about year 10) this will be hauled by truck from the mine pits to purpose built mineral waste emplacements located at the mine pit periphery. Low grade ore will be held in segregated areas for possible future use if market conditions make it commercially viable at a later date. Once sufficient space is available within the pits, waste will be backfilled into the voids, reducing the need for out-of-pit waste disposal.

On completion of mining operations, currently estimated as 25 years after start up at Pic de Fon and 40 years at Oulba, the mine will be closed and the mine pits made safe. However, further exploration work is also planned over the next 5 years to identify additional areas of potential mineralisation that may be mined in the future. All structures not required for other purposes will be removed and the Project area will cleaned up and rehabilitated. As much as possible of the area will be either returned to natural vegetation (for example, forest) or made available for use by the local community.

2. The Project 2.2 Main Facilities


The layout of the main facilities at the mine is shown in Figure 4. two open pits at Pic de Fon and Oulba with in-pit crushers, haul roads, conveyors and a mine water management system for dewatering the mine pits; three mineral waste emplacements; conveyor system to transport ore from the mines to the processing plant; haul and access roads for transport between the pits, waste emplacement and plant areas; the ore processing plant equipped with screens and crushers to break down the ore into a product of controlled particle size; heavy mobile equipment workshop; conveyor from the plant to the stockyard; stockyard where ore will be stockpiled before loading onto trains; new access road from the N1 national road west of Beyla; accommodation camp for short term expatriate staff and shift workers (the existing camp at Canga East will also continue in operation).
Figure 4 Mine Layout

From the stockyard the ore will be transferred onto waiting ore wagons for transport to the coast on the Simandou Railway. The rail component of the Project is described in Volume II of the SEIA. In addition to the main facilities the mine will also include: a diesel-fuelled power station (ca. 120 MW) to supply electricity to the ore processing plant and other facilities; a bulk fuel storage facility; an explosives store (with a 500m safety exclusion zone); water treatment and storage facilities; wastewater collection and treatment facilities; workshops and stores; a laboratory and medical facilities; general offices; helipads; and security gates and fencing.

Example of Crushers and Screens

2. The Project

The ore processing plant and other facilities will be located about 3.5 kilometres northwest of the village of Moribadou and 2 km southwest of the village of Watafrdou II. The new access road will run east from the plant area past the villages of Watafrdou II and Watafrdou I (near which the accommodation camp will be located), to join the N1 national highway near Beyla Airstrip.

Typical Example of a Conveyor

The key alternatives considered and the preferred options included in development of the Simandou Mine are as follows: Placement of the mine infrastructure to the east or west of the Simandou ridge. The eastern alternative was selected, based primarily on social and environmental considerations. Development of the mine plan aiming to optimise commercial feasibility whilst managing technical risk and limiting impacts on environmentally sensitive areas. The outcome is a commercially feasible mine plan based on a sequential pit development that minimises immediate impacts on key environmental areas and significantly reduces the overall footprint of the mine. Location of the stockyard and rail loop on the eastern side of the range. A decision was made to locate the facility in the Miya River Valley west of Watafrdou II in preference to a location further to the east primarily for operational reasons. Conveyor system alternatives. The options of a conventional ground level conveyor versus an elevated conveyor technology were considered. The conventional ground level approach was selected for assessment in the SEIA largely because of the high technical risk associated with the suspended conveyor systems. The feasibility of the suspended option is still being investigated.

A Typical Stockyard

2.3 Consideration of Alternatives


Rio Tintos project development process follows a defined pathway, from concept to a robust business case. This includes a logical sequence to evaluate alternatives and select the preferred approach to the project. At various times during this process, called stage-gates, the project is reviewed by Rio Tinto and its partners before progressing to the next stage. As studies progress, the analysis of alternatives is supported by increased project definition. This aims to reduce uncertainty and risk by balancing such factors as operability, schedule, technical risk, health and safety, social and environmental sensitivity, and capital and operating costs.

3. Stakeholder Engagement

3. Stakeholder Engagement
Guinean regulations and international good practice in social and environmental assessment and management require developers to identify and engage with stakeholders through pro-active and timely consultation and disclosure about the Project and its impacts. Stakeholders include relevant regulatory and administrative bodies, communities affected by the Project, and other interested parties such as local businesses, associations and cooperatives, Guinean and international non-governmental organisations (NGOs), and other interest groups. A Stakeholder Engagement Plan (SEP) was developed during the initial phase of the SEIA and published in August 2011 (see www.riotintosimandou.com/index_seia.asp) and a programme of consultations has been conducted during the SEIA in accordance with this plan. It should be noted that the SEP includes a specific procedure for dealing with any grievances which may arise during the planning or implementation of the Project this is also publicly available as the Simandou Project Grievance Procedure. The programme of consultations undertaken as part of the SEIA was designed to inform stakeholders about the developing plans and give them an opportunity to express views on the Project and on impacts that should be investigated in the SEIA. It included the following activities: Submission and presentation of the SEIA Terms of Reference to the BGEEE and CTAE in August 2011 accompanied by a Government site visit to the mine, rail and port study areas. Two rounds of stakeholder engagement conferences in Conakry and within each of the prefectures affected by the Project, conducted in September / October 2011, and February 2012. Round 1 focussed on providing information about the Project and the SEIA process as well as supporting the analysis of baseline sensitivities. Round 2 focussed on collecting stakeholders comments and concerns with regards to the Project. Establishment of an SEIA webpage on the Simandou website, where people can access information about the Project and the impact assessment and post comments either directly or via a Simandou SEIA email address. Written communication with a wide range of governmental and non-governmental organisations with potential interests in the Project and the SEIA, inviting them to access and comment on Project information and the Terms of Reference for the SEIA.

Beyla Consultations

The results were taken into account during the process of completing the SEIA and are discussed in the SEIA Report. Key concerns raised by consultees included: the prospects for employment and economic development; infrastructure needs in the local area; impacts of in-migration; loss of community ties within and between settlements; protection of forests and special species such as chimpanzees; dust and noise; impacts on livestock; and resettlement and compensation for loss of homes and land. Following the submission of this SEIA report to Government, the next steps proposed as part of the SEP are to organise a third round of public consultations, whereby the SEIA Report will be made widely available for public comment, and its findings communicated to affected communities through a wide variety of means (refer to Section 7 for additional details). All comments made on the Project, its impacts and the proposed mitigation will be considered in completing the final design, planning construction, operation, as well as finalising and implementing the Social and Environmental Management Plan.

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Meeting in Lamandou

4. Summary of Social and Environmental Impacts addressed in the SEIA

4. Summary of Social and Environmental Impacts addressed in the SEIA

4.1 Overview
The Project will result in the development of the largest iron ore mine ever developed in Africa, with a large physical footprint in an environment characterised by many social and environmental sensitivities. The SEIA addresses a very wide range of impacts, and is divided into separate chapters each addressing a particular topic. Each chapter describes: 1. The Baseline: that is the existing situation with regard to the topic , for example current air quality, biodiversity, social conditions, etc; 2. The Magnitude and Significance of Impacts: that is the changes in conditions that are predicted to occur during construction, operation and closure of the mine and a comparison of those predictions with relevant standards. For example how air quality will change, how habitats and species will be affected and how social conditions will change; and 3. Mitigation Commitments: the measures the Project proposes to take to minimise adverse impacts and maximise the benefits of the Project through the way it is designed, built and operated. The key topics addressed include the following: The natural and cultural environment: biodiversity, soils, water, noise, air quality, the local climate, greenhouse gas emissions, resource use and waste, cultural heritage and landscape. Biodiversity and water issues received additional focus as these are areas where impacts have been found to be most significant.

The human environment: the national economy, employment and economic development, land use, social structures and community life, community health and safety and working conditions. All chapters discuss the interaction between the Project and the local community, with specific focus on controlling effects associated with in-migration. These chapters also examine issues associated with the role ecosystems play in providing services of importance to people (food, water, shelter, cultural value, etc) and the protection of human rights. Some significant social and economic benefits to the local community and Guinea are identified and the SEIA includes discussion of how the Project will endeavour to enhance these benefits, whilst mitigating the adverse impacts. The following part of this summary discusses these impacts in three main groups: Biodiversity and Natural Resources Pollution and Waste Cultural, Economic and Social Conditions

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4.2. Biodiversity and Natural Resources

4.2. Biodiversity and Natural Resources

4.2.1 Managing Biodiversity


Biodiversity has been identified as one of the most important environmental sensitivities requiring active management as part of the Project. The proposed mining activities will take place in an area designated since 1953 as the Pic de Fon Classified Forest, covering 252 km2 from the northern tip of the Oulba ridge, to the southern tip of the Simandou Range. This area of high biodiversity value has been under growing threat from human pressures such as fire, agricultural encroachment, cattle grazing, artisanal mining and bushmeat hunting. With the official adoption of the Pic de Fon Classified Forest Management Plan in 2010, through a participatory approach with the Guinean State, local communities, biodiversity organisations and Simfer, a zoning of the area was formalised and management rules established. The Pic de Fon Classified Forest is now divided into a mining zone (where the deposits will be mined and infrastructure located), a fully protected area (to be protected against any human activities), and a production area (where the community may undertake limited natural resource use activities). In parallel with the development of the Pic de Fon Management Plan the Project has also supported two key measures to regulate hunting in the Pic de Fon Classified Forest: first the establishment of a Hunters Confederation encompassing the communities surrounding the Classified Forest; and second the declaration of a hunting moratorium (a temporary ban) throughout the Classified Forest. So far, the combined effect of these measures has been to reduce hunting in the Classified Forest in 2011 compared to earlier surveys in 2008. Detailed investigations on the biodiversity of the mining area have been carried out over the past decade. Initially, the studies focused primarily on the Classified Forest area and its immediate surroundings. More recently the scope was extended to other areas, with a view to developing an understanding of biodiversity value at a regional level, and informing a biodiversity offset strategy. This is a strategy to compensate for any adverse residual impact in high value habitats by improving similar habitats elsewhere. During these studies, the Project has also established independent review panels to verify the relevance and robustness of the studies. Review partners include internationally recognised organisations such as the Royal Botanical Gardens at Kew in London, the International Union for the Conservation of Nature, Conservation International, Flora and Fauna International and Birdlife International, as well as recognised individual experts on West African chimpanzees, primates and freshwater ecology.

Submontane Grassland - Typical Eriosema Triformum Habitat

The studies commissioned by the Project have established a detailed knowledge base for the Pic de Fon Classified Forest, and some of the surrounding areas. The Classified Forest comprises habitats of major conservation significance, including West African submontane forest, West African submontane grassland and areas of West African lowland forest. The species assemblages found within each of these habitats are differentiated from the surrounding habitats and have a high concentration of species of conservation interest. The Pic de Fon Classified Forest hosts a small population of the West African chimpanzee, listed as Endangered on the IUCN Red List. Other mammal species of conservation interest identified include primate species such as the king colobus and Diana monkey. Birds of conservation interest include the Whitenecked picathartes, White-eyed prinia and Sharpes apalis. Forest and submontane grassland habitats also support several species of frogs with high conservation interest, such as the Ivory Coast frog, Ringed river frog and Guinea screeching frog: all three are considered Endangered on the IUCN Red List. Lastly, the streams and ponds of the Simandou watersheds host high freshwater biodiversity, including five fish species of high conservation interest. With regards to flora species, one herb endemic to the Simandou Range was recorded in the submontane grasslands of the Pic de Fon area Eriosema triformum. Several other flora species of conservation interest were recorded within the mining area, but these have also been identified at other sites in southeastern Guinea or further afield.

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4.2. Biodiversity and Natural Resources

The Herb Eriosema Triformum

Rio Tinto recognises that conservation and responsible management of biodiversity are important business and societal issues. In 2004 Rio Tinto developed its Biodiversity Strategy, which includes a commitment to have a net positive impact (NPI) on biodiversity. For a project such as the Simandou Project, this means introducing measures to reduce and manage the Projects direct impacts from the earliest conceptual design stage, right through construction, operation and closure. It also means supporting conservation projects in other areas of similar biodiversity value to offset adverse impacts that cannot be adequately mitigated in order to deliver the goal of net positive impact (Refer to Figure 5).

Key measures that are intended to avoid direct impacts on the local population of West African chimpanzees and high altitude habitats of conservation priority include placement of mine infrastructure and the rail loop on the eastern side of the Simandou ridge and sacrificing small portions of economic ore. In addition, the Project has committed to direct management measures in and around the mine site including protecting freshwater habitats and soils through engineering design and operational planning, reducing noise and light emissions where possible, and supporting on-going biodiversity investigations and conservation measures. The sequencing of mine development has also been designed to provide opportunities for chimpanzees to start to explore areas of lowland forest habitat within the Classified Forest which could provide alternative habitat. On-going management and conservation efforts will aim to increase the suitability of these areas for chimpanzees as pressure from hunting, agricultural incursion and other human activities decreases. Other areas of focus to address impacts on biodiversity include the development and implementation of measures to control possible introduction of invasive alien species, transmission of human diseases to chimpanzees and other species, and broader initiatives that will be explored such as partnership with government authorities and other stakeholders to control bushmeat hunting and the illegal trade in rare animals, animal products and plants. Despite these measures, it must be acknowledged that mining in this area will have an impact on biodiversity. To achieve its goal of net positive impact the Project will therefore implement an Offsets Strategy to compensate for the significant residual impacts predicted to occur. Ideally, offset areas will contain similar high value habitats and species as those predicted to be impacted by the mine. Conservation programs in these offset areas will be developed and implemented in collaboration with the Government of Guinea, local communities and specialised conservation groups. Lastly, and in recognition of the very significant biodiversity challenges, an external technical advisory group will be established to assist the Project in achieving its stated aims and responsibilities.

Figure 5 Rio Tintos Approach to Achieving Net Positive Impact

The key biodiversity impacts associated with development of the mine and its infrastructure include direct habitat loss due to clearing of the mine footprint, hydrological impacts associated with mine dewatering, degradation of surface water quality water due to erosion and sedimentation, increased natural resource use due to in-migration of people to the area, and the introduction of invasive species with the importation of earthmoving equipment. The biodiversity features most affected by these impacts are the high altitude and freshwater habitats, the West African chimpanzee and a number of specific conservation priority mammal, bird, amphibian and fish species as mentioned above. The avoidance and mitigation measures developed by the Project have focused on addressing these impacts.
West African Chimpanzee

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4.2. Biodiversity and Natural Resources


Seasonal Streams within the Pic de Fon Classified Forest

the community or important for biodiversity before meeting operational requirements. Protection of water quality will be achieved by implementing appropriate sediment controls, collecting and treating any acid drainage that may occur, treatment of process effluents and ensuring that emergency procedures are in place to manage leaks or spills of polluting substances. If adequate flows are not available for local communities, especially in the event of increased demand from influx of migrants into the area, the Project will work with and support the local authorities in planning community water supplies as part of its In-Migration Plan.

4.2.3 Acid Rock Drainage


A common risk in mining is acid rock drainage (ARD). ARD is caused when rock containing sulphides becomes exposed to oxygen and water as a result of mining. This can lead to the formation of acidic conditions and the mobilisation of metals contained in the rock affecting water and soil quality. The Project has undertaken extensive geochemical testing to develop an understanding of ARD potential from the deposits and it has been established that the main risk will come from a small proportion of waste rock. It is estimated that about 7% of the waste to be deposited outside the mine pits has the potential to generate ARD. To manage this risk, the Project will continue its current studies and finalise a Mineral Waste Management Plan that specifically focusses on ARD Management and includes the identification of all potentially acid forming material, segregation and/or containment of potentially acid forming waste, and the collection and treatment of any polluted water leached from affected areas.

4.2.2 Managing Impacts on Water


The Simandou Range forms the headwaters of four major rivers: the Dion and the Mala Rivers to the north (both tributaries of the Niger River); the Diani River to the southwest, which flows into Liberia; and the Loffa River to the southeast, a tributary of the Diani. Information on surface and groundwater flows and water quality has been collected since 2004, and the uses of water resources were surveyed across a wide area focusing on both community and biodiversity receptors. Numerical models have been developed to help understand the effects of mining on groundwater levels and the streams that emanate from the mountain. Given the high elevation of the mine pits, and the absence of communities relying on groundwater resources on the mountain, the lowering of groundwater levels caused by dewatering the pits, the so-called cone of depression effect, will have no adverse impacts on existing groundwater supplies within local communities. However, the progressive excavation and dewatering of the mine pits may lead to significant changes in the pattern of spring flows emanating from the mountain ridge. Impacts may also occur due to the diversion of surface water flows where the upper catchment areas of some streams are isolated within the footprint of the mine, or where waste rock emplacements and flow retention structures are introduced. These impacts will vary throughout the course of the mine life as the process of dewatering, excavation and backfilling progresses. Such changes to the natural surface water patterns have the potential to affect community water resources and terrestrial and freshwater ecosystems present along the flanks of the mountain throughout mine life. The ecological system most at risk from changes in flow are the forest habitats on the western side of the ridge, especially in the Western Spur valley and the Kinyeko, both areas of importance for chimpanzees. In order to manage these impacts the Project will develop a Mine Water Management System (MWMS) to provide an integrated approach to distributing dewatering flows and ensuring that discharges from the site meet established water quality criteria. Dewatering flows will be directed to protect sensitive catchments and provide water supplies to the operation. The aim will be to define flow compensation requirements to maintain adequate flows in streams used by

4.2.4 Erosion and Protection of Soils


Another issue commonly associated with mining projects is erosion. During rainfall events disturbed soil and mineral waste material can be eroded by surface water run-off, leading to loss of soil resources and high sediment levels in local streams, with effects on aquatic life and downstream users. The Project will take measures to limit erosion such as designing mineral waste emplacements to avoid exposing highly erodible material to run-off, constructing sediment retention structures downstream of areas at risk of erosion, limiting the slope of exposed rock faces, profiling slopes on haul road embankments and other earthworks to minimise the speed of water run-off and, rehabilitating exposed surfaces as soon as possible after work is completed. Development of the mine and its various facilities will also lead to sterilisation of soil resources beneath the works. Most soil formations identified in the Project area are impoverished tropical ferralitic soils and duricrusts of low fertility, but to minimise any impact, useful topsoil will be removed before construction starts and saved for use in site rehabilitation. Soils will also be protected against contamination using good practice in the storage, transportation and distribution of fuel and any other potentially polluting substances.

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4.3. Pollution and Waste

4.3. Pollution and Waste

4.3.1 Limiting Noise and Vibration


Major construction projects and mining can be sources of significant noise emissions: During construction from earthmoving, piling, general building work and construction traffic; and during mine operations from drilling and blasting the ore, operation of large haul trucks, conveyors, crushing and screening plant, and stacking and reclaiming ore from the stockyard and loading it onto trains. Construction activity will predominantly occur during daylight hours but nighttime construction may be required during certain periods of the construction schedule. Mining operations will be 24 hours, seven days a week but blasting will only be undertaken during daylight hours. Existing noise levels in the area are low and typical of rural villages (people, animals, insects, traffic, music, etc) and in these circumstances, new and elevated sources of noise can cause disturbance for people and animals. Modelling has been used to predict the effect of the project on the noise levels in villages surrounding the mine and these have been compared with thresholds derived from international standards for day-time and night-time noise levels defined by the IFC and the World Health Organisation (WHO). Whilst construction noise impacts were found to be most likely confined to the immediate vicinity of the works and not to affect any nearby villages, noise during mining operations will be potentially greater, resulting in elevated levels in the two nearest villages Watafrdou II about two kilometres east of the processing plant and Traorla two and a half kilometres west of the Oulba pit. Noise has the potential to affect animals as well as people and although evidence suggests that species such as chimpanzees can become acclimatised, consideration needs also to be given to effects on nearby habitats.

The Project will mitigate these impacts by considering noise levels in selection of equipment, providing noise shielding where possible, restricting noisy activities to daytime as much as possible, and implementing traffic management rules. Further study and monitoring will be carried out in the detailed design phase to assess if additional controls are required they will be incorporated into the design. A study was completed on the effects of blasting (there will be approximately one blast per day at each mine pit) and it was found that significant impacts on human receptors were unlikely to occur given the distance from villages. The impacts of blasting on animals, in particular chimpanzees, have also been considered. The introduction of blasting to the mine area will be gradual with smaller blasts early on, allowing animals to become accustomed to the disturbance. Blasting methods will be carefully designed (size of charge, drilling and detonation pattern, stemming of blast holes) to minimise noise and vibration and will follow a fixed schedule which will be communicated in the local area. A noise and vibration monitoring program will be developed and implemented to confirm the modelling results and ensure that the Project meets IFC standards. If impacts are determined to exceed IFC criteria the option to relocate and compensate affected people will be considered. With the measures presented above and the accompanying monitoring program the Project will ensure noise and vibration standards are met.

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4.3. Pollution and Waste

4.3.2 Air Quality


Monitoring data has been collected over recent years around the mine and show that air quality is generally good with only occasional elevated levels of pollution mostly caused by natural sources such as the dust laden Harmattan wind during the dry season, bushfire, or local activities cooking, using fire to clear land, and emissions from old and poorly maintained vehicles. Emissions associated with the Project will include dust from traffic moving on unsealed roads, earthworks, ore handling, crushers and stockpiles, and gaseous emissions from the combustion of fossil fuels in vehicles and from electricity generation. A computer model has been used to predict the effect of the Project on air quality and the predicted levels were compared to WHO air quality interim targets. This indicated that construction is very unlikely to cause significant impacts on air quality but mine operations will generate emissions of dust which, under certain unfavourable meteorological conditions expected to occur on a few days each year, could lead to significant short-term impacts on ambient air quality in nearby villages (mainly Watafrdou I and II to the east, but also, Lamandou to the west, Nionsomoridou to the north and Foma to the southeast). Concentrations of nitrogen dioxide will also be slightly elevated. A number of control measures have been built in to the design and operation of the mine, including selection of plant and equipment meeting USEPA Tier 2 emission standards, use of fuel with restricted level of sulphur (500 parts per million), use of water sprays on roads in dry weather, variable height stackers to limit dust and, most importantly, maintenance of ore moisture levels above a threshold at which dust generation is significantly suppressed. Further studies are being carried out in the detailed design phase and if additional dust control is found to be necessary this will be incorporated into the design. An air quality monitoring program will be developed and implemented to confirm the modelling results and measure the Project compared to WHO targets. If impacts are determined to exceed WHO criteria the option to relocate and compensate affected people will be considered. With the measures presented above and the accompanying monitoring program the Project will ensure air quality standards are met.

4.3.3 Local Climate Impacts


As a regionally important landscape feature, the Simandou mountain range has an influence on local climate, acting as a barrier to wind flow and influencing local rainfall and fog formation. Recognising the importance of the Simandou Range on local climate the United Kingdom Meteorological Office (UKMO) was contracted to assess potential impacts on climate from the change in ridge profile associated with mining the Pic de Fon and Oulba pits. Using the latest understanding of atmospheric dynamics, global circulation models and local scale meteorology a numerical climate model was developed and supported by several years of climatic data provided by the Direction Nationale de la Mtorologie de Guine and site-specific meteorological stations operated by the Project. The overall conclusion from this work was that the reduction to the height of the ridge will have a negligible impact on the amount of rainfall received directly around the mine (reduction of approximately 1.3%). Over a wider area of 10 km by 20 km (roughly 5 km either side of the ridge where mining will take place), the modelling shows that rainfall amounts will change by less than 0.5%. These predictions are much less than natural variability and less than the effect predicted to occur through climate change induced by global warming. The mine is therefore not predicted to have any significant impact on local climate.

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4.3. Pollution and Waste

4.3.4 Greenhouse Gas Emissions


Greenhouse gas (GHG) emissions are of concern because of their contribution to global climate change. It is good practice for any major project that results in significant quantities of GHG emissions to calculate these and identify measures that can be taken to minimise the potential contribution to climate change. GHG emissions from the Simandou Project will primarily be associated with fossil fuel combustion for power generation to operate the mine, operating heavy equipment and vehicles, other traffic and air travel, plus a contribution from release of carbon from vegetation when land is cleared for the mine. The greatest share of greenhouse gas emissions will be generated by combustion of fuel during the operational lifetime of the mine (about 13.9 million tonnes of carbon dioxide equivalent over 40 years). This equates to 1 to 2% of Guineas projected annual greenhouse gas emissions during the early years of mine life, reducing to less than 0.5% towards the end of mining. Annual emissions over the operating life of the mine are similar to those from a Guinean city of about 150,000 people. Land clearance will contribute about 4% of total emissions. Measures for limiting GHG emissions have been built into the design of the mine project, focussing on actions to reduce fuel use and improve energy efficiency. Rio Tinto operates a strict GHG policy for all its operations and this will be applied at Simandou. This will require the preparation and regular updating of a GHG and Energy Efficiency Action Plan focussed on setting and meeting targets for improvements in emissions. GHG emissions will be monitored and reported throughout the Project lifetime, and opportunities for further reduction will be considered wherever possible.

4.3.5 Waste Management


In addition to the mineral waste produced during mining, the Project will generate various other waste streams including construction waste, domestic waste from the workforce, office and kitchen waste, clinical waste from medical facilities, redundant plant and equipment, packaging waste and various types of potentially hazardous waste from workshops, water treatment plants, spill clean-up and other activities. Simfer currently operates a small landfill site near its Canga East mine camp and this will be extended and upgraded to receive waste during construction. A second facility will also be established and this is expected to include specialist hazardous waste treatment and disposal arrangements. The details of this have yet to be finalised but all necessary permits required under Guinean law will be obtained. The site will be designed, built and operated in accordance with strict international standards to ensure it has no significant impact on the environment and people in the surrounding area. Within the construction site and during mine operations, careful planning for waste management will be aimed at avoiding the creation of waste as far as possible, re-using and recycling waste where possible, and only disposing of waste as a last resort.

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4.4. Cultural, Economic and Social Conditions


4.4.1 Identifying and Protecting Cultural Heritage
The history and the archaeology of Guinea has not been widely studied and is therefore poorly understood. However, it is apparent from the desk-based studies that Guinea has a long history of human occupation dating to the Early Stone Age (200 000 10 000 BC). The mine study area, located in the iron rich southeast of Guinea, provided an important resource for early Iron Age populations (500 BC AD 1 000) and there is archaeological evidence that iron smelting technology originated in West Africa. In addition to this archaeological heritage, modern Guinea has a strong tradition of living cultural heritage founded in the important role sacred sites play in community life. Trees, rocks and water are often identified as sites of spiritual significance and can be important as sacrifice sites and in rites of passage. As well as such physical sites, intangible traditions and cultural knowledge are also important cultural assets. Development of the mine is very likely to disturb some known cultural heritage sites with at least three known mineral working sites and three or four sacred sites falling within the footprint of the works. In addition, using a GISbased spatial analysis model, an area of high archaeological potential has been identified within the Oulba pit where it is likely that further mineral working sites will be found. It is also possible that more archaeological and living cultural heritage sites will be encountered in other areas of the mine and its infrastructure as works progress. The locations of many sacred sites are highly guarded knowledge and in order to respect the secrecy surrounding traditional sacred, religious and initiation rites, the Project has adopted a policy of site confidentiality. This means that the general locations of sensitive sites in the mine area will be mapped, but their exact locations will not be disclosed in any public document. In order to protect cultural heritage the Project has developed a Cultural Heritage Management Plan which describes the processes, procedures, and resources that will be used by the Project to manage all cultural heritage found in the area of the mine. It includes provision for further study to identify and evaluate sites prior to construction. Where sites are identified they will be avoided wherever possible. If they cannot be avoided archaeological sites will be investigated and rescue archaeology used to preserve the remains if required. For all cultural heritage sites, communities will be consulted on appropriate means for relocation if possible, or for providing compensation where relocation is not practical. During construction and mine clearance a Chance Finds procedure will operate to identify and if necessary protect or rescue finds encountered on the ground. There will also be on-going stakeholder engagement for the identification and conservation of cultural heritage assets. High importance will be placed on negotiating consent from Guinean authorities and from affected communities on the disturbance, or relocation, of cultural heritage sites.

4.4. Cultural, Economic and Social Conditions

Inauguration Ceremony

The management plan will also include actions directed at protecting important aspects of the intangible cultural heritage of local people through supporting local cultural events and ensuring the Project has a good understanding of and respects traditions that are important for local life. The Project will also adopt a Code of Conduct which will include provisions directed at preventing interactions with the local community by Project personnel which could interfere with or endanger local traditions. The Cultural Heritage Management Plan will be implemented under the supervision of a specialist working group who will be responsible for overseeing the process and consulting with the relevant authorities on all issues relating to cultural heritage.

Ritual Dance Performance

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An Example Genie Residence Site

4.4. Cultural, Economic and Social Conditions

4.4.2 Changing the Local Landscape


The portion of the Simandou mountain range within the mine area is a dominant visual feature. It has a series of separate peaks, reaching altitudes of 1,656 m at Pic de Fon and 1,132 m at Oulba. It is characterised by steep natural slopes intersected by a dense network of freshwater streams. The vegetation of the range consists of grassland on the ridgeline, high altitude forest galleries in the stream valleys transitioning to lowland forest and wooded savanna in the lowland areas. The assessment of impact on the landscape takes into account the visual amenity of people affected by the proposed mine by considering typical locations from which people may be able to see the mine and its infrastructure. The SEIA considered changes in the landscape as seen from villages all around the ridge including Moribadou, Mafindou, Watafrdou I and II, Nionsomoridou, Traorla and Foma.

The assessment used photomontages coupled with a terrain model, which illustrates how the mining activities would influence the profile of the Simandou ridge over the life of the mine. The changes in ridge profile will occur over the lifetime of the mine and eventually they are predicted to be most noticeable from Moribadou, Watafrdou II and Traorla. Whilst such changes are largely unavoidable in open-pit mining, the Project has committed to measures that will help to mitigate visual impacts, including progressively revegetating disturbed areas wherever possible. Engaging with the community and delivering other benefits benefits outlined in the SEIA will also be important in discouraging a negative response to landscape change.

Existing view from Watafrdou II

Future view from Watafrdou II once the mining has been completed

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4.4. Cultural, Economic and Social Conditions

4.4.3 Contributing to the National and Local Economy


Guinea ranks 178th out of 187 countries on the United Nations Development Programme 2011 Human Development Index and 70% of the population lives on less than one US dollar a day. Levels of education are low, with a national literacy level of 39% in 2009 and much lower levels in rural areas. Access to health services is limited and only 19% of the population has access to adequate sanitation and 7% to water of potable quality. The road network is sparse and road transport is often compromised by weather. The Simandou Project offers a massive opportunity to foster economic development in Guinea. Contributions will include payment of wages to project employees and contractors, purchases of goods and services from local firms, tax payments and direct social investment. Through these means the Project is expected to translate into a significant increase in Guineas GDP. As of mid-2012, the Project already provides work for approximately 2,900 Guinean nationals. 765 people are directly employed by Simfer and approximately 2,135 by contractors and subcontractors. The workforce directly engaged in the construction at the mine site is expected to peak at approximately 2,500, with approximately 50% recruited from Guinea although skilled and management positions are likely to be filled initially by people sourced from locations outside of Guinea. Once the mine is fully operational, the workforce at the mine is expected to be around 2,050 people recruited predominantly from Guinea, with a smaller number of expatriate employees with specialised skills and experience. Indirect and induced employment (ie employment generated by other businesses, as a result of increased economic activity leading from the Project) has been estimated to possibly reach a peak of 11,000 jobs during construction, and 9,000 jobs during operation, offering the potential to generate significant local economic growth. Since there is only a limited skilled workforce in Guinea able to take up more skilled positions, the Project has committed to supporting education and professional training, by supporting access to employment for the local community. The Project will also provide significant opportunities for local procurement of goods and services, which should positively impact the development of Guinean businesses. For quality, health, safety and environmental reasons, the Project will need to select suppliers on the basis of their capabilities but it will support supplier qualification programmes to improve the readiness of local businesses to bid for contracts.

4.4.4 Establishing a Social Management Framework


The Project will continue to seek to invest in development activities for communities living in proximity to the Project. The Project will be in a position to contribute to supporting community development across programmes covering education, professional training, sanitation, water, health, infrastructures etc. To help target this effort, Simfer is working on the development of a regional development strategy to facilitate linkages with national and local development initiatives and establish a consistent approach to community engagement and social investment in the regions affected by the Project. The Project has also developed a Social Management Framework (SMF) to provide a structure for the detailed design and implementation of measures to mitigate the adverse impacts of the Project and maximise its benefits. The SMF covers four themes: Urban and Rural Planning; Employment Creation and Livelihoods; Community Health, Safety, and Security; and Cultural Heritage and Awareness. A range of more detailed Social Management Plans will be developed as part of this framework. The detailed design and implementation of these plans will be influenced by a number of factors, as outlined below: Prioritisation: The Project will prioritise mitigation measures that address negative impacts and risks. Implementation timeframes will take into account the Project schedule and prioritise measures responding to immediate needs, which may then be enhanced and expanded in subsequent years to foster broader and lasting benefits. The Project will also consider appropriate target populations for mitigation, prioritising those affected directly by Project activities, indirectly by in-migration pressures as well as vulnerable groups. Alignment: Where possible, the Project will align its mitigation with the development policies and plans of local communities and government authorities such as Local Development Plans and Poverty Reduction Strategies and with objectives identified in relevant development forums.

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4.4. Cultural, Economic and Social Conditions

Stakeholder Engagement: The Project will endeavour to actively engage with a variety of stakeholders to consult, exchange information, and work in partnership on detailed design and implementation of mitigation measures. Consultation with Project affected communities in particular will be a critical priority. Any concerns regarding mitigation measures or Project activities will be managed through the Project Grievance Procedure and the outcomes arising from grievance resolution will inform the evolution of mitigation. In addition, the Project will seek to support capacity building within government and civil society organisations to enhance their capabilities over time to participate in mitigation design, implementation, and monitoring. The Project Stakeholder Engagement Plan will describe the processes by which these engagements and partnerships will be managed and its efficacy will be monitored and the plan adapted as needed to support the achievement of Project goals.

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4.4. Cultural, Economic and Social Conditions

4.4.5 Establishing Partnerships for Socio-Economic Development


When designing and implementing socio-economic and community programmes, the Project has partnered and will continue to partner with Guinean institutions as well as international agencies and organisations, including international financial institutions (in particular the IFC), multilateral donors such as the UN Population Fund (UNFPA) and the European Commission, as well as bilateral development agencies such as the French (AFD), German (GIZ) and American (USAID) development agencies. The Project also collaborates with a number of Guinean NGOs and civil society organisations on its economic and community development programmes. These include ADCAP (the Association for Community Development and Agro-Pastoralism) and CADIC (Centre for Support and Development of Community Initiatives), AUDI (Actors United for Integrated Development) for agricultural programmes; PRIDE Finance and CAFODEC for microfinance programmes; and the Chamber of Mines of Guinea for HIV/AIDS treatment and prevention programmes. One vehicle for fostering local socio-economic development is the Guinean Programme dAppui aux Communauts Villageoises (PACV), a national programme aimed at supporting Guinean communes in assessing their development needs and planning yearly development programmes. The PACV translates into the provision of technical support to communes in needs assessment, planning, programme and financial management, budget development, public tendering and contractual management. It also provides for direct funding of commune development programmes. The PACV is managed by a national Guinean entity and supported by various international institutions such as the World Bank, the African Development Bank and bilateral development agencies. The Project has entered into a partnership with the programme, which includes funding to increase the effectiveness of Project financial contributions allocated to Project-affected communities for developmental programmes. The Project will continue to seek partnerships with the Republic of Guinea, international agencies and organisations, and NGOs to design and implement socioeconomic and community programmes in the future, as part of its Social Management Framework.

4.4.6 Controlling In-Migration and its Effects


The Project will conThe Project is projected to give rise to high levels of in-migration, with potential of 60,000 to 110,000 people potentially attracted to the mine area in search of employment and economic opportunities. The main locations where in-migrants are expected converge and where the risks of adverse impact from in-migration are highest, are identified as Beyla Town and nearby villages on the N1, the larger villages of Nionsomoridou and Moribadou, and the small settlements of Watafrdou I and II, these last because of their proximity to the mine plant, the access road and the accommodation camp. The majority of in-migration is expected to occur during construction (2012-2016) but it is likely to continue during operations at a declining rate. The trend of population growth and increased pressure on land and housing that has been experienced in recent years during exploration is therefore likely to continue for many years. Settlements may also experience short periods of rapid in-migration linked to perceptions of new opportunities associated with the Project development at various points in the Project lifetime, though such rapid population increases are likely to stabilise and even reverse rather quickly as actual levels of opportunity become evident. The primary effects of in-migration will be the increase in population and resulting rapid expansion of towns and villages. This may result in a number of impacts, notably in relation to water resources and pollution, loss of biodiversity and cultural heritage, conflicts over land and resources, and changes in social structures and community life and health. The primary tool for addressing the impacts of in-migration will be implementation of an In-Migration Plan. This will aim: first to discourage Project-induced in-migration as far as possible; second to manage and direct the flow of in-migrants to suitable locations by actions such as establishment of a recruitment office in Beyla and a ban on recruitment at the gate; and third to work with local authorities and the community to mitigate the impacts of in-migration through village planning and support for planning of infrastructure and services. In-migration will be monitored and the plan updated as necessary throughout the life of the Project.

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4.4. Cultural, Economic and Social Conditions

The Village of Lamandou

4.4.7 Impacts on Land Use and Access


The nearest settlements to the mine site are Nionsomoridou, Watafrdou I and II, Moribadou and Foma to the east of the ridge, and Traorla and Lamandou to the west. The mine works have been planned so that none of these are directly affected by the mine development and there are no permanent settlements within the mine site. There will therefore be no direct displacement of people from their homes as a result of the mine. The mine will, however, occupy about 6,500 hectares of land which will no longer be accessible to local people. This will displace activities important for their livelihoods including grazing livestock, hunting, gathering fuelwood, timber, food and medicinal plants, and some scattered cultivation. The majority of the land occupied by the Project will be hilltop grassland and forest falling within the area of the Pic de Fon Classified Forest where many activities (grazing, collecting fuelwood, commercial logging, fishing and use of fire) are prohibited. The balance is mostly wooded grassland with small patches of cultivated agricultural land (lowland, plain and hillside) around the mine plant and rail loop. The Project recognises the importance of mitigating its impacts on people who rely upon these land-based resources for their livelihoods. In finalising the design, it will therefore continue to avoid land that is important to communities wherever possible, including routes used by people to access neighbouring villages, markets, land and water. One key access route that will be hard to avoid is the path between the small village of Lamandou on the west of the mountain and Moribadou to the east.

The Pic de Fon conveyor and haul road will sever this route that is used frequently by people to visit family and access the market, health care and education facilities at Moribadou. Safe access between these villages will be maintained either through design of infrastructure or other transport options. Where occupation of useful land and disruption of access cannot be avoided, the Project plans to implement compensation for affected people in accordance with a Framework for Land Acquisition, Resettlement and Compensation (PARC) developed specifically for the Project in accordance with IFC Performance Standard 5 (Involuntary Resettlement). This PARC Framework will use in-kind compensation, financial compensation and other measures to fully restore, and where possible improve, the livelihoods of people and communities affected by the Project. This will be based on detailed surveys of their current situation and the impacts of the Project, and will be planned and implemented in full consultation with those affected. The Project will also provide opportunities to supplement or diversify livelihood options and minimise pressures on resources and infrastructure, particularly where these arise from in-migration, through other programmes under the Employment and Livelihoods Creation and Urban and Rural Planning themes within the SMF.

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4.4. Cultural, Economic and Social Conditions

4.4.8 Respecting Social Structures and Community Life


A project of this nature and scale, developed in a remote and relatively undeveloped area, will inevitably have major impacts on local community life, both directly and through the influx of migrants. The SEIA examines these issues in terms of changes in social structures and arrangements in affected communities, considering pressures on land and resources and changes in social dynamics within and between settlements. There is likely to be pressure on housing, infrastructure and social services, as well as changes in traditional power structures and household arrangements as a result of new employment opportunities, economic expansion and population growth. During construction the introduction of foreign workers will bring particular challenges. To manage these, the Project will aim to recruit local and Guinean workers wherever possible and will house migrant workers in a secure accommodation camp located at the site of the planned permanent camp near the village of Watafrdou I. A Code of Conduct for the workforce has been established, setting out rules designed to foster respectful, harmonious relationships between the Project workforce and the local community. The Project will engage with local authorities and traditional leaders in anticipating and managing change under the Social Management Framework, with a particular focus on managing in-migration, limiting pressures on infrastructure and services, and supporting local socio-economic development for the benefit of the entire community. During operations the aim will be to integrate the workforce into the local community, initially by encouraging new housing in Beyla, and by progressively moving to a predominantly Guinean workforce. Particular attention will be given to vulnerable groups within the community, identified as those who, due to their social position, are most likely to be affected by negative change and may experience difficulties in benefiting from positive impacts. The SEIA has identified certain vulnerable groups, including children, single women acting as household heads, the elderly, and people in poor health. The Project will continue working on the identification of vulnerable people, and will implement dedicated approaches to target them as part of the Social Management Framework.

4.4.9 Protecting Community Health and Safety


Community health indicators in Guinea are relatively unfavourable compared to global averages, with a life expectancy for men of 49 years (global average 66) and for women of 55 years (global average 71), infant mortality rates of 142 per thousand live births (global average 60), and limited access to healthcare with an average of 1 physician for 10,000 persons and 1 nurse or midwife for 25,000 persons. Over recent years, Simfer has commissioned health baseline surveys to provide a comprehensive review of health conditions in Beyla Prefecture as well as various targeted health surveys in sentinel sites around the Simandou ridge. Key health issues in Guinea and the Project area include malaria, peri-natal conditions, respiratory infections, and diarrhoeal diseases. In terms of community safety, the main identified risk is traffic accidents, with poor conditions and low awareness of road safety being major contributors to rates of death and injury on the roads. Community health issues could emerge during development of the Project as a result of introduction of new diseases and increased occurrence of existing illness. The triggers for these occurrences may be the introduction of a nonlocal workforce and opportunistic in-migrants and by creating physical and social conditions potentially more conducive to diseases such as malaria and sexually transmitted infections. This will be mitigated by various health initiatives already underway, or to be implemented by the Project under the Social Management Framework. The Project will provide routine and emergency medical treatment facilities to Project workers and undertake HIV prevention, malaria awareness and protection campaigns and support for the provision of better quality water in local communities. It will also work in partnership with local authorities and development programmes to support the improvement of public health facilities. From the early stages of construction, Simfer will ensure that staff and subcontractors are trained in road safety and defensive driving. Strict speed limits will be enforced and public safety will be considered in planning routes for Project traffic. Drinking alcohol whilst driving and the use of drugs will be prohibited. The Project will also look for opportunities to develop partnerships with Guinean health and emergency services to raise road safety awareness and improve local emergency response capabilities.

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4.4. Cultural, Economic and Social Conditions

One further community safety issue that is often raised in relation to major development projects in less developed locations is the use of force in managing site protection, assets and workforce security, in particular in times of civil instability or conflict. The Project will apply strict policies and rules for its own security personnel, whether employed directly or via contractors. Security personnel at the mine site will not be armed and all personnel will be trained in and required to comply with the Workforce Code of Conduct. Risks will be managed through proactive engagement with Guinean authorities and establishment of clear policies and protocols concerning the involvement of government security forces.

4.4.10 Protecting the Workforce


The Project is fully committed to managing its workforce and providing labour conditions in line with Guinean legislation and international labour standards as defined by the International Labour Organisation and IFC Performance Standard 2 (Labour and Working Conditions). These include maintaining clear and equitable human resources policies, providing a balance between working hours and time off, providing appropriate wages and benefits, respecting workers organisations and their right to be represented, providing transparent mechanisms to allow collective negotiation, enforcing a non-discrimination and equal opportunities policy, protecting migrant workers, providing appropriate standards of worker accommodation, establishing fair and equitable retrenchment rules, providing appropriate grievance mechanisms, and applying the highest standards of health and safety. In particular, the Project will prohibit all forms of child labour and forced labour. These commitments apply to all directly employed workers and to those employed via contractors during construction and operation. Whilst recognising that employment terms may vary across the various companies working on the Project, the Project will nonetheless require that its contractors and subcontractors respect the same labour standards. Whilst it has less ability to control and monitor the employment practices of other suppliers of goods and services it will also require all suppliers to meet certain minimum standards. Contractor and supplier requirements will be enforced through the Projects contracting process, and verified where appropriate through a supplier and subcontractor auditing process. Through local supplier support programmes implemented within the Projects Social Management Framework, the Project will also seek to support the adoption of improved labour practices by Guinean companies involved in the Project.

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4.5. Managing Mine Closure

4.5. Managing Mine Closure

After a period of steady operation at peak capacity, production rates will decrease and mining will cease when the deposits are exhausted. The mine plan indicates that this will occur at Pic de Fon after about 25 years and at Oulba after about 40 years, however, studies are ongoing to determine the potential for further extraction. On completion of mining the pits will be closed and the ore handling and processing facilities will be decommissioned. This will entail dismantling, demolition and removal of equipment and buildings, reshaping and re-contouring of land surfaces and rehabilitation of occupied areas. As much as possible the land occupied by the mine and its infrastructure will be returned to its former land use. The mine pits, waste emplacements and other works will be made safe for the community including the placement of barriers to discourage people from entering the old pits. A public education program on safety issues associated with the open pit faces and pit lakes which will form in the bottom of the excavated areas will be conducted. A passive water management system will be implemented so that adequate protection for surrounding water resources can be provided without ongoing active management by Simfer. The closure phase will also require the management of social and environmental issues including retrenchment of the workforce and managing the implications of loss of local employment and business.

In order to mitigate the risks associated with mine closure the Project will develop a Closure Strategy and a detailed Mine Closure Plan. The plan will be developed in consultation with relevant authorities, the workforce and local communities and will aim to leave a rehabilitated mine site behind that is stable, non-contaminating and with a passive water management system. It will also aim to leave local communities empowered to be self-reliant in creating livelihoods and providing and maintaining community services. The Strategy and Plan will be developed conceptually prior to start of operations, and reviewed and updated at least every five years during operations. A detailed Mine Closure Plan will be completed at least 5 years prior to cessation of operations at each pit. The implementation and success of the Plan will be monitored until the site achieves an environmentally and socially acceptable and sustainable state.

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5. Translating the SEIA into Social and Environmental Management

5. Translating the SEIA into Social and Environmental Management

Through the SEIA, the Project has identified and committed itself to a large number of social and environmental measures designed to mitigate adverse impacts and ensure benefits are delivered. These are compiled in the Social and Environmental Management Plan (SEMP) presented in Volume V of the Simandou Project SEIA. It is organised by topic and defines a clear statement of the actions that will be taken for each phase of the development (detailed design, construction, operation, closure), and for each component of the overall project (mine, railway and port). It also includes commitments to further studies that will be undertaken to refine mitigation plans and to monitoring and contingency arrangements should monitoring reveal that impacts are more significant than expected. The SEMP will be delivered through a Simandou Health, Safety, Environmental and Communities Management System operating under the overarching framework of Rio Tintos Health, Safety, Environmental and Quality Management System Standard. This is a single, consolidated standard that reflects international good practice, fully incorporates the requirements of the international standard ISO 14001, and defines Rio Tinto requirements relating to the systems and procedures to be used by all operations to ensure effective management of environmental and social impacts and risks.

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6. Next Steps

6. Next Steps

In accordance with the Guinean Environment Code and the EIA regulations, this SEIA Report has been submitted to the Minister Delegate for the Environment, Water and Forests of the Republic of Guinea in support of an application for a Certificat de Conformit Environnementale. This submission will be followed by a programme of disclosure and stakeholder engagement designed to provide all interested parties with an opportunity to understand and comment on the proposals and their impacts. This will include the following activities: The Bureau Guinen des Etudes et Evaluations Environnementales (BGEEE) will organise a public enquiry process, supported by the Project, through which all stakeholders will have an opportunity to comment on the Project and its impacts. This is expected to include a national stakeholder conference and a series of local stakeholder conferences held in each of the prefectures through which the Project passes. These will be widely publicised in local media and invitations will be sent to the local administrative authorities, community leaders, and community-based and nongovernmental organisations. The SEIA Report will be disseminated by BGEEE to the Governors and Prefects of affected localities and to national ministries with an interest in the Project. The SEIA Report and accompanying leaflets and summary material will be published on the Simandou Project website at http://www.riotintosimandou.com/ index_seia.asp and will be available to download free of charge. Hard copies of the report will be available for inspection at the following locations in Guinea and internationally:

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6. Next Steps

Simfer SA Immeuble Kankan Cit chemin de fer, BP 848 - Conakry, Rpublique de Guine The Simandou Info Shop in Beyla and further Project Info-shops in Guinea as these are opened over forthcoming months; Rio Tinto Iron Ore Europe 17, Place de Reflets La Dfense Courbevoie 92097 Paris France Rio Tinto plc 2 Eastbourne Terrace London W2 6LG United Kingdom The publication of the report will be announced through press and media releases in Conakry and in the prefectures affected by the Project. The SEIA Team will make direct contact with government departments and non-governmental organisations inviting their comment on the Project and its impacts. The IFC will also disseminate the SEIA report through its own website in accordance with its policy on access to information.

Throughout the period of consultation the Project will operate a formal comment and feedback system. All comments made by interested parties, whether in person, by mail or email, will be recorded in a Stakeholder Register and will be considered by the Project Team in finalising the proposals. A report on the outcome of the consultation process will be prepared and published. Where questions are raised that require an individual response, this will be provided and if any parties raise a grievance or complaint this will be managed through the established Simandou Grievance Procedure. Comments and questions can be submitted to the Project Team by various routes: by email to simandou.eise@riotinto.com; by writing to: Equipe Communauts - EISE Simfer SA Immeuble Kankan, Cit Chemin de Fer BP 848 Conakry, Rpublique de Guine by raising a point or asking a question at a conference or exhibition; or by leaving a written comment at a conference, exhibition or in a Simandou Info-shop or Info-post. Comments can be submitted on a pre-printed comment form, or in any other format. A copy of the comment form is included in Annex 1F: Simandou Project Stakeholder Engagement Plan of the SEIA report, and is available on the Simandou website.

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Social and Environmental Impact Assessment (SEIA)

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Rio Tinto Simandou

Rio Tinto Simandou


Social and Environmental Impact Assessment (SEIA)

Rio Tinto Iron Ore Europe 17, Place de Reflets La Dfense Courbevoie 92097 Paris France Rio Tinto plc 2 Eastbourne Terrace London W2 6LG United Kingdom

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