coat FEDERAL REPUBLIC OF NIGERIA SUSTAINABLE MANAGEMENT OF MINERAL RESOURCES PROJECT RESETTLEMENT POLICY FRAMEWORK (RPF) (JANUARY 2011)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized coat FEDERAL REPUBLIC OF NIGERIA SUSTAINABLE MANAGEMENT OF MINERAL RESOURCES PROJECT RESETTLEMENT POLICY FRAMEWORK (RPF) (JANUARY 2011) TABLE OF CONTENTS Glossary of Terms A. Introduction...4 B. Principles and objectives governing resettlement preparation and implementation....7 RP1068 v2 C. A description of the process for preparing and approving Resettlement plans D. Land acquisition and likely categories of impact E. Eligibility criteria for defining various categories of Project affected persons F. Methods of valuing affected assets G. Organizational procedures for the delivery of entitlements, Including for projects involving private sector intermediaries, The responsibilities of the financial intermediary, the Government and the private developer....29

2 H. A description of the implementation process, linking Resettlement implementation to civil works, exploration and mining I. A description of the grievance redress mechanisms J. A description of the arrangements for funding resettlement, Including the preparation and review of cost estimates, the Flow of funds, and contingency arrangements K. A description of mechanisms for consultations with, and participation of, displaced persons in planning, implementation and monitoring L. Arrangements for monitoring by the implementation agency And, if required, by independent monitors Annex A: Template for preparing Resettlement and Compensation plans Annex B: A legal framework reviewing the fit between the laws of Nigeria and regulations and Bank policy requirements and Measures to bridge any gaps proposed between them LIST OF ACRONYMS ARAPs Abbreviated Resettlement Action Plans BPE Bureau of Public Enterprises CRC Conflict Resolution Committee FGN Federal Government of Nigeria FMEn Federal Ministry of Environment FMWR Federal Ministry of Water Resources MMSD Ministry of Mines and Steel development MOU Memorandum of Understanding NPS National Parks Service NCC Nigerian Mining Corporation NGO Non Governmental Organisation PAP Persons Affected by the Project PCC Project Consultative Committee PF Process framework PMU Project Monitoring Unit PPE Personal Protective Equipment PRA Participatory Rural Appraisal RPF Resettlement Policy Framework RAPs Resettlement Action Plans SMMRP Sustainable Management of Mineral Resources Project

3 INTRODUCTION Nigeria s minerals and metals sector is a key sector crucial to the successful execution of Government s economic diversification strategy and the attainment of the growth, wealth creation and poverty reduction goals. It is in line with this vision that the Resettlement Policy Framework has been reviewed to serve as a guide to operators and investors in mining with regards to resettlement and compensation issues to ensure that global best practice is carried out. A holistic view of sustainability from both the socio-economic and environmental perspectives form the basis of the vision 2020 recommendations, in the knowledge that any growth cannot be sustained if the physical environment is destroyed in the process, the rights of hosts communities are ignored, and if it does not translate to economic empowerment of the people. The strategy seeks to entrench sustainability as a fundamental principle in the exploitation of mineral resources. As part of this strategy, therefore, the Federal Government of Nigeria requested the support of the World Bank of its Sustainable Management of Mineral Resources Project (SMMRP), whose development objectives are to: Increase the Governments long term institutional and technical capacity to manage Nigeria's mineral resources in a sustainable way; Establish a basis for poverty reduction and rural economic renewal in selected areas of the country via the development of non-farm income generating opportunities through smallscale and artisanal mining. The project has put in place screening efforts. The safeguards audit of the Project was carried out in There have been no resettlement or compensation issues. Project activities under various components led to the formulation of a frame work for mine closures throughout the country and also of areas where new mining activity will be carried out. In addition, the project is supporting a number of artisanal mining cooperatives under the small grants program. The safeguards screening checklist include preventing activities that will damage environmentally sensitive areas, avoiding protected areas and activities that will result in resettlement. In Addition, activities that will affect physical cultural property as well as physical or biological areas are not considered for support by the Project. The interest of vulnerable groups is also protected and community driven Development is encouraged in community consultation and Development. Technical Studies on Child Labor and Gender Mainstreaming in ASM in Nigeria are being undertaken by consultants to facilitate the handling of social issues with a view to eliminating child labor from the mining sector and empowering more women to participate in the sector. Significant efforts have been made, during the design and screening of these activities to select locations that avoid or minimize impact on people, land, property, including access to natural and other economic resources, as far as possible. Notwithstanding, land acquisition or land use in some situations may lead to either the physical or economic displacement of people or their loss, denial or restriction of access to economic resources and therefore ultimately to resettlement and compensation of people seems inevitable in some, perhaps even a few minority cases for the types of investment proposed in the additional financing of the Project. When this occurs, the whole bank operational policy, OP 4.12 on Involuntary Resettlement and certain Federal and State laws of the FGN will be triggered. This is possible because of uneven and varying settlement patterns and population densities across Nigeria, since significantly large portions of the country are densely populated. Settlement densities tend to be higher in more favourable and productive areas. The safeguards audit of the Project was carried out in April 2010 by two consultants. The Nigerian Minerals and Mining Act of 2007 require that the Government shall make available

4 to small scale and artisanal miners a provision of environmental impact assessment reports National guidelines also make audits of this report mandatory. The audit report gave an indication of the environmental and social safeguards compliance levels amongst grants beneficiaries and contractors within the Small Grants Program (SGF) of the SMMR project. The environmental audit outlined the verification process including parameters and indicators that were used and the detailed report of the verification exercise. Audit observations of the environmental and social consultants were included. The social component of the audit process discussed the need for the audit, and the methodology employed. The findings of the visits to various mining communities (Malali Stone Quarry Kaduna, Kufena in Zaria, Ileila in Sokoto, Bendi and Osina in Cross River State, Abomega in Ebonyi state, Rarinsho in Barkin Ladi, Plateau State, Akure in Ondo State, Funakaye in Gombe State, Odogbolu in Ogun State, Ikire in Osun State, Ido Osi in Ekiti State and Irrigwe in Plateau State) were reported, with emphasis that: None was found to damage environmentally sensitive areas (forest, rivers or wetlands) or threatened species. None of the projects took place within or adjacent to any protected areas designated by government (national parks, national reserve, world heritage site, etc) and were not likely to adversely affect the ecology within the area. None was found to reduce other people s access to their economic resources like land, pasture, water, public services or other resources that they depend on. The project does not result in resettlement of the individuals or families, and The project does not result in any temporary or permanent loss of crops, fruits trees and household infra-structure ( such as granaries, outside toilets and kitchens, etc) The consultant s actual site observations discuss the safeguards monitoring compliance framework. Current institutional arrangements and ways where these can be further strengthened were presented, proposing new arrangements for managing monitoring. It also recommended a new template for reporting compliance. In summary, from all the sites visited, one thing was common; the people had a clear understanding of what was expected of them as regards environmental and social compliance during and after project lifespan which was concluded was as a result of intense pre-project briefings and meetings organized by the PMU and the World Bank. One major thing noticed was that though beneficiaries understood the essence and importance of the use of PPEs, they have not strictly adhered to this rule. Some reasons given were its discomfort of use, and a lack of funds to buy newer ones when the older ones have worn out. There was also noticeable social accountability and inclusion as many of the communities practiced social inclusion and used democratic means to arrive at decisions, except in the northern part of the country, where gender mainstreaming was not adequately adhered to. There is not much social inclusion for women in the above areas, as there is a socio-cultural barrier that tends to reduce women activities in the public. Part of the corrective measure is to advocate for more female education and sensitization on the importance of women s contribution to socio - economic development. The reviewed RPF establishes the resettlement and compensation principles, organizational arrangements and design criteria to be applied to meet the needs of the people who may be affected by activities of the project. This RPF is prepared to the standards of the FRN (and its respective states) own policy on resettlement and the policy of the World Bank, OP The reviewed RPF governs all activities funded under the SMMRP, and is being used in conjunction with the Sectoral Environmental and Social Assessment (SESA) that has also been prepared for this project as a separate and stand alone document, also disclosed at the Bank's info shop and in Nigeria.

5 The Small Grants program of the original Project has so far awarded 130 grants to artisanal and small scale mining cooperatives and mining communities for equipment, technical assistance and social services.it is expected that the beneficiaries of the program will increase to about 300 across the country with the additional financing. Considering the size of Nigeria as the Project scales up to reach many more beneficiaries, OP4.12 might be triggered. The screening process of the Project has taken the stipulation of OP 4.12 into account in order to avoid resettlement issues. All ASM cooperatives and mining communities supported by the Project go through the screening process to ensure compliance with WB social safeguards before approval is received for the small grants. Mine sites located near residences or stagnant water or protected areas do not receive approval from the Project Consultative Committee (PCC) A review of the screening checklist has been undertaken to include the proviso of presentation of land documents purchased for ASM activities or mining community projects including documents that provide evidence for land ownership by individuals or communities. In response to the Zamfara State lead poisoning epidemic in 2010 the Project facilitated a sensitization forum for sustainable mining in Zamfara State with emphasis on social safeguards which involved host communities, operators and other stakeholders. Fliers in the local language and English were produced and distributed as well as radio jingles in both languages. The major civil works implemented so far under the Project has only involved alteration and modification of existing buildings. These renovations did not require land acquisitions. The office renovations include: i) Ministry of Mines and Steel Development (HQTRS) Abuja ii) State Offices in Kano and Sokoto iii) National Geosciences Research laboratory Centre, Kaduna iv) Ministry of Mines and Steel Development, Zonal Office, Jos v) Nigerian Institute of Mining and Geosciences, Jos vi) Mining Cadastre Office, Abuja B. PRINCIPLES AND OBJECTIVES GOVERNING RESETTLEMENT PREPARATION AND IMPLEMENTATION The impacts due to involuntary resettlement from development projects, if left unmitigated, often gives rise to severe economic, social and environmental risks resulting in production systems being dismantled, people facing impoverishment when their productive skills, may be less applicable and the competition for resources greater; community institutions and social networks being weakened; kin groups being dispersed; and cultural identity, traditional authority, and the potential for mutual help are diminished or lost. The World Bank Safeguard policy OP 4.12, in most cases, is not triggered because people are being affected by physical displacement. It is triggered because the project activity causes land acquisition, whereby a physical piece of land is needed and people may be affected because they are cultivating on that land, they may have buildings on the land, they may use the land for water and grazing of animals or they may otherwise access the land economically, spiritually or any other way which may not be possible during and after the project is implemented. Therefore, people are in most cases compensated for their loss (of land, property or access) either in kind or in cash of which the former is preferred.

6 (i) Involuntary resettlement and land acquisition should be avoided where feasible, or minimized, exploring all viable alternatives. (ii) Where involuntary resettlement and land acquisition is unavoidable, resettlement and compensation activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to give the persons displaced by the project the opportunity to share in the project benefits. Displaced and compensated persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. However, OP 4.12 has not been triggered by any of the Project s activities. (iii) Displaced and compensated persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to predisplacement levels or levels prevailing prior to the beginning of project implementation, whichever is higher. Affected people, according to the Bank Safeguard Policy OP 4.12, refers to people who are directly affected socially and economically by the bank assisted investment projects, caused by: relocation or loss of shelter, loss of assets or access to assets loss of income sources or means of livelihood, whether or not the affected persons must move to another location; (b) the involuntary restriction or access to legally designated parks and protected areas results in adverse impacts on the livelihood of the displaced persons. The Bank Safeguard Policy OP 4.12 applies to all components under the project, whether or not they are directly funded in whole or in part by the Bank. The SMMRP in line with World Bank policies has carried out studies on vulnerable groups which include Child Labour Study and Gender Mainstreaming. Thus far O.P.4.12 has not been triggered with regards to Project activities. However, if they are triggered the Bank s policy and the National policy on resettlement and compensation will be followed. To fully appreciate the impacts that are to be expected, it is critical to comprehend the distinction in the terminology of the mining groups referred to herein and targeted in this project. First, when the term Large-Scale Mining is used, it is primarily referring to mining activities undertaken by international major mining companies, perhaps in association with local companies that are well capitalized using modern technologically heavy methods thus realizing large production levels and operating under a stringent environmental and social restoration plan. When the term Small-Scale Mining is used, it is referring to individual miners or groups of miners using motorized equipment (e.g. pumps, compressors, hoists, etc.) and other small power tools to extract and process minerals. Uses of this equipment not only increase through output and economies of scale but also allow the miner to reach depths required to mine hardrock vein mineralization in addition to the alluvial deposits. Often, use of such equipment will require at least rudimentary scientific, technical, and mechanical skills and it is expected that such skills, though limited will be available locally. However, Artisanal Mining refers primarily to individual or collective miners who use very little or no powered equipment. They use simple hand tools; pulverize the materials using mortar and pestle, and wash powders using crude sluices and rudimentary sieves to pick the flakes. Artisanal mining is fundamentally a result of rural poverty as it is sometimes a seasonal occupation that provides supplementary income for rural inhabitants. In this project, the implementation of activities has not resulted in impacts on land and people resulting from; i) Mine closures - since large scale mining is not presently a significant feature of the mining sector in Nigeria, mine closures will impact only small scale and artisanal miners.

7 ii) Creation and identification of new prospective mining areas- are targeted for all categories of miners. iii) Creation of environmentally protected areas - areas where exploration or mining cannot take place. The original RPF refers to mine closure generically. However, there was no mine closure and none is anticipated to be triggered. The social impacts from mine closures are positive and negative. Positive social impacts include environmental restoration of land and water resources which will open up vast areas for agricultural use that would otherwise not be available. This presents additional opportunities for small scale and artisanal miners who may have to be resettled due to mine closures, to use this newly restored land for farming. This may be a possible mitigation measure (in addition to compensation). Negative social impacts of mine closures include denial of access to the economic resources of artisanal and small-scale miners resulting in their loss of economic assets and ultimately to resettlement. When this occurs, people will be impacted and resettlement and compensation cannot be avoided and OP 4.12 will be triggered even though they may not have to physically move to another location. Likewise, the creation of new mining areas presents positive and negative social impacts. Positive social impacts include opportunities for employment creation as large-scale mining activities increase in these areas and an increased probability for significant finds provides opportunities for increased production levels for small-scale and artisanal miners who wish to operate in these new areas. Opportunities for the implementation of environmentally friendly and sustainable practices in these virgin areas from the very start of mining activity, is another positive social impact. Negative social impacts from creating new prospective mining areas include the effects of redesignation from agricultural land/areas to mining areas. The effects of this re-designation are the resettlement of farmers and fishing communities. When this occurs, the farmers and fishing communities who are essentially being denied access to their economic (agricultural) resources would have to be resettled and OP 4.12 will apply where mining activities are supported by the Project. Following resettlement and compensation, additional income generating opportunities could be provided to these agricultural communities in the form of training and technical assistance to acquire new skills should they wish to participate in small scale and artisanal mining activities in these newly re-designated areas. Furthermore, it is worthy to note that rush migration to newly designated mining areas to participate in small scale and artisanal mining activity will occur and thus bring to bear additional pressures on already strained social services, such as health, sanitation and housing and compensation budgets. The latter has major considerations when establishing a cut-off date. Finally, the RPF review seeks to ensure that affected communities are meaningfully consulted, have participated in the planning process and, are adequately compensated to the extent that their pre-displacement incomes have been restored and that the process is a fair and transparent one. C. DESCRIPTION OF THE PROCESS FOR PREPARING AND APPROVING RESETTLEMENT AND COMPENSATION PLANS. To address the impacts under this RPF review, resettlement and compensation plans must include measures to ensure that displaced persons are; (a) Informed about their options and rights pertaining to resettlement and compensation.

8 (b) Consulted on, offered choices among, and provided with technically and economically feasible resettlement and compensation alternatives. (c) Provided prompt and effective compensation at full replacement cost for losses of assets and access, attributable to the project (d) Enabled to restore but preferably, to improve upon their pre-project living standards; The first stage in the process of preparing the individual resettlement and compensation plans is the screening process to identify the land/areas that are causing this impact (i.e. resettlement). The three categories of possibilities under this project from which impacts under OP 4.12 can arise are through; (i) Mine closures - existing mining sites where no further exploration or mining activity can continue (ii) New Mining Areas or continued exploration or mining at existing sites new/virgin areas where exploration and/or mining can occur. (iii) Protected Sites new/virgin areas where mineral deposits may lie but for strategic or environmental reasons, are protected/ reserved and exploration/mining cannot occur. It is pertinent to emphasise that the SMMR Project is only responsible where the Project is funding mining activities in part or whole and in such circumstances the Bank s policy OP 4.12 will apply. This screening process would lead to the creation of a list/map identifying a number of potentials/proposed mines and protected site to be closed and of any mining areas in pursuant therefore, the project management unit (PMU) of the Ministry of Mines and Steel Development) (MMSD), constituted an adhoc committee made up of the following: Mines Inspectorate; Nigerian Geological Survey Agency; The Federal Ministry of Environment; Representatives of the State Government with the responsibility for mining sector administration; Representative of Miners Associations; Representatives of the appropriate Local Government Agency. The committee verified the consultancy work carried out on inventory of abandoned mines, potential sites for mining closures, protected status and new mining areas. Project activities that would lead to the resettlement and compensation were not triggered before the implementation of the following sub-component activities/requirements; 1) Geophysical Airborne Survey, Geological Mapping of Nigeria, Geo-chemical sampling, implementation of a modern and functional cadastre system, and Minerals Information System, Industrial Minerals Survey 2) Sectoral Environmental and Social Assessment (SESA) The identification of these sites/areas for mine closures, protected status and new prospecting/exploration mining areas were determined based on the results of the scientific work in 1) above and the findings of the SESA in 2) above. When this information is available, the committee will meet on an ad hoc basis to prepare a list of identified mining sites to be closed, areas to be accorded protected status and areas where new exploration and mining can occur or continue to be carried out. These lists would then be subjected to a comprehensive sensitization and consultation process (see section K of this RPF for details) with the potentially impacted communities and the outcome of this process would be documented for each site. The list and outcome of the

9 consultative process for each site would then be sent to Minister of Mines and Steel Development, who will now confirm, approve, disapprove, refer for further consultation and/or take a final decision on each proposed site. Once this decision has been made by the Minister, there will be two separate and distinctly different paths upon which individual resettlement and compensation plans are to be developed, for those sites that are affected by resettlement issues and hence trigger OP4.12 (meaning there are potentially affected people, PAPs), it will be as follows: For sites affected by mine closures and those to be granted protected status, the revised socioeconomic studies and the individual abbreviated resettlement plan (ARAP) or the Resettlement and Compensation Plan (RAP) are to be prepared and fully implemented by the Department of Mines Environmental Compliance, on behalf of the Ministry of Mines and Steel Development. That is, they are to be prepared and fully by the government, since it is the party causing the impact (i.e. resettlement).this is covered adequately in The Nigerian Minerals and Mining Act 2007 which shows the strengthening of the structures put in place to handle resettlement that may be triggered in the future Developemnt of the mining sector. Whereas, for sites in new prospective locations, the revised socio-economic studies and the individual abbreviated resettlement plan (ARAP) or the Resettlement and Compensation Plan (RAP) are to be prepared and fully implemented by the holders of an exploration license or mining lease This assumes that all mining activities I For those sites that do not have any resettlement issues (as defined in the reviewed RPF), OP 4.12 do not apply and the provisions of this RPF are therefore redundant. 2 Under existing laws and regulations only the Federal government has the power to authorize any mining activity. The miner has, however, to process his application through two layers of subordinate authorities: The Local Government and the State Government. Application for Quarrying Licenses (QLs) are to be carried out by large or small-scale and artisanal miners must be under an exploration license or mining lease pursuant to the Nigerian Minerals and Mining Act, The significance of establishing a cut-off date is discussed in Section E. 4 The purpose of the socio-economic study is to collect base line data within the chosen/targeted sites/areas thereby enabling the social assessment of potentially affected populations/communities. The socio economic study focused on the identification of stakeholders (demographic data), the participation process, identification of affected people (including owners and users of land) and impact on their property and their production systems, the institutional analysis and the system for monitoring and evaluation. Detailed calculation of individual and household economies and identification of all impacts have been undertaken as part of the socio-economic study and be the determinant in the potential compensation process. Standard characteristics of the affected households, including a description of production systems, labor, and household organization, and baseline information on livelihoods (including production levels and incomes derived from both formal and informal economic activities) and standards of living and health status of the PAPs have been collected. Under this study a comprehensive base line census would be carried out to identify potentially affected people on the individual and household levels, vulnerable groups (women, children, the elderly, female headed households, farm workers, HIV/AIDS affected persons etc.) and to discourage inflow of people ineligible for assistance. Once the Minister s approval is given of a site, every site that has PAPs, the LSIT will meet urgently to establish a cut-off date and either the government or the holder of the license or lease ( depending on who is causing the impact) will then carry out the following for each affected site;

10 i) preparation of a revised, updated and streamlined version of the mineral socioeconomic study to produce site specific results. On completion of this socioeconomic study and baseline census, then the ii) preparation of individual resettlement and compensation plans (RAPs) are prepared for each site or parcel of land that is affected by resettlement and compensation. There will be as many RAPs as there are parcels of affected land. Where the impacts on the entire displaced population are minor (i.e. if affected people are not physically displaced and less than 10% of their productive assets are lost) or fewer than 200 people are displaced, then the bank may approve the preparation of an Abbreviated Resettlement Plan (ARAP). The contents of the ARAP are to be: (b) a census survey of displaced persons and valuation of assets. (c) Description of compensation and other resettlement assistance to be provided. (d) Consultations with displaced people about acceptable alternatives. (e) Institutional responsibility for implementation and procedures for grievance redress. (f) Arrangements for monitoring and implementation, and submitted to and approved by the resident Federal Mines Environmental Compliance Officer in the State but Quarrying Lease are to be approved and issued by the Minister after receiving favourable procedural reports.. The Exclusive Prospecting Licenses (EPL) and Mining Leases (ML) are approved by the State Governor under delegated powers after due compliance with the procedure provided the area covered is not more than 8 square miles (21 sq. Ian) or 200 acres in respect of Prospecting Licenses(PL) or Mining Leases (ML) respectively. For leases in excess of200 acres, concurrent approval is required. Special Exclusive Prospecting License (SEPL) is issued only by the Minister without delegation of authority. However, with arrangements on going to make the mining cadastre autonomous, the approving authority will be the mining cadastre office. For impacts that are not considered minor, the preparation of a Resettlement Action Plan (RAP) is required for each site. World bank OP 4.12 article 25 and Annex A (a) Description of the project (b) Potential Impacts (c) Objectives (d) Socioeconomic Studies (e) Legal Framework (f) Institutional Framework (g) Eligibility (h) Valuation of and compensation for losses (i) Resettlement measures (j) Site selection, site preparation, and relocation (k) Housing, infrastructure, and social services (l) Environmental protection and management (m)community participation (n) Integration with host populations (o) Grievance procedures (p) Organizational responsibilities (q) Implementation schedule (r) Cost and budget (s) Monitoring and evaluation The RAPs cover the elements above, as relevant. When any element is not relevant to circumstances relating to the site, it should be noted in the RAP.

11 For site affected by mine closures or granted protected status, the ARAP or the RAP is prepared by the Director of Mines Environmental Compliance and must be approved by the Minister of Mines and Steel Development following notification of the Federal Ministry of Environment (FMEnv), Environmental Impact Assessment Division, and by the World Bank for final approval. ARAP/RAP prepared by holders of exploration licence or mining lease must submit them for approval to the MMSD, who will assess them in consultation/collaboration with the Federal Ministry of Environment, Environmental Impact Assessment Division, for approval in compliance with the conditions of their licence or lease. This process of identifying sites, consulting people and carrying out Socio-Economic Studies may be an iterative one, simply because the mitigation measures (i.e. compensation levels) may be too costly in terms of compensation amount and the overall number of people impacted. This would have to be determined by the PMU in close consultation with the MMSD through the Department of Mines Environmental Compliance. Alternatively, mine closures and creation of protected areas of new prospective sites could be phased to allow for monitoring and corrective mechanisms. However, irrespective of whether the process of identifying potential sites is pursed iteratively or a number of sites are implemented simultaneously, the selection process must be described above. The final list of approved sites by the Minister, the process of selection of the sites, and the ARAP and RAP would all be subject to final review and approval by the World Bank to ensure compliance with World Bank safeguards. Thus ensuring that before any mine is closed, or any new area is granted protected status or any new prospective area is approved, individual resettlement and compensation plans are prepared consistent with this reviewed RPF. Capacity building has been ongoing at the MMSD, the four technical departments: Departments of Artisanal and Small Scale Mining, Mines Inspectorate, Mines Environmental Compliance and Mining Cadastre Office, small-scale and artisanal miners and mining communities have received various training and technical assistance to ensure all stakeholders involved, play their different roles, effectively. D. LAND ACQUISITION AND LIKELY CATEGORIES OF IMPACT No mine closures have occurred and should any occur, the frame work for mine closures will be followed. Similarly, no Project activities have been carried out in protected areas. The major civil works implemented so far under the Project has only involved alteration and modification of existing buildings. These renovations did not require land acquisitions. The office renovations include: i) Ministry of Mines and Steel Development (HQTRS) Abuja ii) State Offices in Kano and Sokoto iii) National Geosciences Research laboratory Centre, Kaduna iv) Ministry of Nines and Steel Development, Zonal Office, Jos v) Nigerian Institute of Mining and Geosciences, Jos vi) Mining Cadastre Office, Abuja A guideline for displaced persons can be categorized into 3 groups, namely:

12 (i) Affected Individual - An individual who suffers loss of assets or investments, land and property and/or access to natural and/or economical resources as a result of the project activities and to whom compensation is due. For example, an affected individual is a person who farms a land, pastoralists whose routes have been altered, or a person who has built a structure on land that has been demarcated as a new mining prospective area and is now required by the license holder. (ii) Affected Household - a household is affected if one or more of its members is affected by project activities, either by loss of property, land, loss of access or otherwise affected in any way by project activities. This provides for: (a) Any members in the households, men, women, children, dependent relatives and friends, tenants (b) Vulnerable individuals who may be too old or ill to farm along with the others (c) members of households who cannot reside together because of cultural rules, but who depend on one another for their daily existence (c) Members of households who may not eat together but provide housekeeping, or reproductive services critical to the family s maintenance, and (d) Other vulnerable people who cannot participate for physical or cultural reasons in production, consumption, or co-residence. In the local culture, members of production, consumption, and co-resident groups form overlapping, often incongruent sets of people who may exchange domestic or farming services on a regular basis even though living separately. Compensation will not be limited to people who live together in a co-resident group, since this might leave out people whose labour contributions are critical to the functioning of the "household". For example, among polygamous settings, each wife has their own home. (iii) Vulnerable Households - in Nigeria because of the atrocities that are often committed during the internal unrests, vulnerable households may have different land needs from most households or needs unrelated to the amount of land available to them. They may already be undergoing some form of rehabilitation including training to acquire vocational skills in purpose built centres. This provides for; a) Internally Displaced Peoples - these are people who had to flee their homes during recent civil unrest/riots/armed robberies and are virtually refugees in their own country and have not returned. They may be dependent on the NGO community and others for support. b) Elderly - elderly people farm as long as they are able. Their economic viability does not depend on how much land they farm or how much they produce because, by producing even small amounts of food to "exchange" with others, they can subsist on cooked food and generous return gifts of cereal from people such as their kith and kin and neighbours. Losing land will not affect their economic viability. They will have cash or in-kind replacements to exchange. For future production they need access to only a small parcel of land. What would damage their economic viability is resettlement that separates them from the person or household on whom they depend for their support. The definition of household by including dependents avoids this. c) Street Children -Despite the laws of the FRN and International Labour Organization (ILO) prohibiting the exploitation of children, it is a reality that street children are either in paid employment or are on the streets in Nigeria. They tend to live in close proximity to large towns and cities. If they are impacted by this project in a way that means they have to be physically relocated, their compensation cannot be in cash. They would have to be put in a UNICEF program or registered with one of the many children s charities that are operating in Nigeria today. Their compensation would take the form of paying for their rehabilitation and training to acquire useful vocational skills.

13 d) Women headed households - may depend on husbands, sons, brothers or others for support. In many cases too, women are the main breadwinner in their household. They need relatively easy access to health service facilities, as mothers and wives. Some women live in a polygamous situation in Nigeria and this requires special attention as women are central to the stability of the household. For example, where the land acquired is used by a woman with no formal rights to it or a woman who is dependent on a man other than her husband for her primary income. These women should not be resettled in a way that separates them from their households as the very survival of their households may depend on them. Their compensation must take into account all these factors. e) Income related poverty - that is the poorest households are also vulnerable. These household types are not mutually exclusive, so that a woman may be part of a family that is internally displaced, and the street children may be also be internally displaced individuals. Special attention has been paid to these groups by identifying their needs from the socioeconomic and baseline study as (i) they are individually consulted and given the opportunity (i.e. not left out) to participate in the project activities, ( ii) that their resettlement and compensation should it arise, has been designed to improve their pre-project livelihood (iii) special attention has been focused on monitoring them to ensure that their pre-project livelihood is indeed improved upon (iv) they are given technical and financial assistance if they wish to make use of the grievance mechanisms of the project and (v) decisions concerning them have been made in the shortest possible time. Consultants have been engaged to carry out studies on Child Labour and Gender Mainstreaming in ASM in Nigeria which would be concluded shortly. E. ELIGIBILITY CRITERIA FOR DEFINING VARIOUS CATEGORIES OF PROJECT AFFECTED PERSONS The Bank s OP4.12 suggests the following three criteria for eligibility; a) Those that have formal rights to land (including customary land, traditional and religious rights, recognized under the Federal and/or State Laws of Nigeria) b) Those who do not have formal legal rights to land at the time the census begins but have a claim to such land or assets provided that such claims are recognized under the state and/or federal laws of Nigeria or become recognized through a process identified in the resettlement plan c) Those who have no recognizable legal right or claim to the land they are occupying, using or getting their livelihood from. Those covered under a) and b) above are to be provided compensation for the land they lose, and other assistance in accordance with the policy. Persons covered under c) above are to be provided with resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date established by the LSIT in close consultation with the potential PAPs and the respective state environmental agencies and acceptable to the Bank. Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in a), b) or c) above are to be provided with compensation for loss of assets other than land. Therefore, it is clear that all project affected persons irrespective of their status or whether they have formal titles, legal rights or not, squatters or otherwise encroaching illegally on land, are eligible for some kind of assistance if they occupied the land before the entitlement cut-off date. Persons who encroach the area after the socio-economic study (census and valuation) are not eligible for compensation or any form of resettlement assistance. Eligibility for Community Compensation Communities (districts, chiefdoms, towns and villages) permanently losing land and/or access to assets and or resources under customary rights will be eligible for compensation. Example

14 of community compensation could be for public toilets, market place, taxi parks, schools and health posts. The rationale for this is to ensure that the pre-project socio-economic status of communities where adversely impacted, is also restored. Method to Determine the Cut-Off Dates The entitlement cut-off date refers to the time when the assessment of persons and their property in the identified project areas are carried out, i.e. The time after the socio-economic study would have been concluded. Thereafter, no new cases of affected people will be considered. Unfinished structures would have been identified and secured, and unused materials will be piled at the site so that the cut -off survey would estimate investment which should be compensated for in lieu of expenses (including labour) used until the cut - off date. Establishment of a cut-off date is required to prevent opportunistic invasions/rush migration into chosen land thereby posing a major risk to the project. Therefore, establishment of a cutoff is important. The Minister of Mines and Steel Development and the World Bank approve the list of mines to be closed and the location of new protected areas and new prospective areas, the group and the PMU, will meet to discuss and agree on a programme of implementation. They will choose tentative cut-off dates. For sites affected by mine closures and protected areas status, the dates would then be communicated to the party through their local administration authorities, depending on whether mine closures will be separated or done simultaneously. For mining activities carried out under an exploration license or lease, the holders of these rights will meet with the Mining Cadastre and PMU to discuss and agree on a date and the cut-off date will be communicated to the affected communities by their local administration authorities. The time between the cut-off date and the date actual mine is closed or mining starts is likely to be a considerable length of time (since only after PAPs have been compensated and replacement structures built according to the requirements of this reviewed RPF, can resettlement of persons occur), special attention needs to be taken to secure the sites from rush and opportunistic invaders. These measures could include close consultation with the recognized PAP s; signs that the general public has intended use of site, security patrols to identify opportunistic invaders etc. Local administrative heads such as the Chiefs, Emirs, Oba s, etc, will play a crucial role in identifying users of land since most of them would have acquired their customary right to the land from their local customary heads. F. METHODS OF VALUING AFFECTED ASSETS Valuation methods for affected land and assets would depend on the type of asset. The three land asset types identified under Nigeria law in this policy framework are: (i) State (urban and non urban) owned Land (ii) Privately owned Land (iii) Assets held under Customary Law State owned land would be allocated free by the Governor or Local Government (perhaps except for processing and registration fees), the MSMD or the holders of a prospecting license or mining lease would be expected to pay compensation to acquire land in this category in cases where the state-owned land is being used by fanners or for instance grazed upon, settled upon or otherwise being used. Privately owned property, would have to be acquired at the market value. The guiding principle is that whoever was using the land to be acquired would be provided other land of equal size and quality.

15 However, according to Nigeria law, assets held under customary rights are in the Local Government jurisdictions only and would have to be valued according to the following method and compensation paid for. The project would compensate for assets and investments, including labour, crops, buildings, and other improvements, according to the provisions of the resettlement plan. Compensation rates would be market rates as of the date and time that the replacement is to be provided. The market prices for cash crops would have to be determined. Compensation would not be made after the entitlement cut-off date in compliance with this policy. Under customary law land belongs to chiefdoms, towns and villages. The permanent loss of any such land will be covered by community compensation which will be in-kind, only. However, because the bank policy on resettlement, OP 4.12, makes no distinction between statute and customary rights, not only assets and investments will be compensated for, but also land. Thus, a customary land owner or land user on state owned land will be compensated for land, assets, investments, loss of access etc. at market rates at the time of the loss. Individual and household compensation will be made in cash, in kind, and/or through assistance. The type of compensation will be an individual choice although every effort will be made to instill the importance and preference of accepting in kind compensation if the loss amounts to more that 20% of the total loss of subsistence assets. FORMS OF COMPENSATION Cash Payments In-kind Compensation Assistance Compensation will be calculated in Naira. Rates will be adjusted for inflation. Compensation may include items such as land, houses, other buildings, building materials, seedlings, agricultural input and financial credits for equipment Assistance may include moving allowance, transportation and labor Making compensation payments raises some issues regarding inflation, security and timing that must be considered. One purpose of providing in-kind compensation is to reduce inflationary pressures on the costs of goods and services. Local inflation may still occur, thus market prices will be monitored within the time period that compensation is being made to allow for adjustments in compensation values. The question of security, especially for people who will be receiving cash compensation payments needs to be addressed by the States. Local banks and micro finance institutions should work closely with the States and Local Governments at this level to encourage the use of their facilities which will positively impact the growth of the local economies. The time and place for in-kind compensation payments will be decided upon by each recipient in consultation with the PMU and/or holder of prospecting license or mining lease. Monetary payments should be paid at a time in relation to the seasonal calendar..

16 Compensation for land is aimed at providing a farmer whose land is acquired and used for project purposes with compensation for land labour and crop loss. For this reason, and for transparency, "Land" is defined as an area: In cultivation Being prepared foe cultivation, or Cultivated during the last agricultural season This definition recognizes that the biggest investment a farmer makes in producing a crop is his or her labour. A farmer works on his/her land most of the months of the year. The major input for producing a crop is not seed or fertilizer, but the significant labour put into the land each year by the farmer. As a result compensation relating to land will cover the market price of labour invested as well as the market price of the crop lost. For purposes of measuring land, the unit of measurement would be that which is used and understood by the affected farmers. Therefore, if a traditional unit of measurement exist that unit should be used. If a traditional unit of measurement does not exist, then it is recommended that land should be measured in meters or any other internationally accepted unit of measurement. However, in such an event, the unit that is being used must be explained to the affected farmers and must so how be related to easily recognizable land features that a community are familiar with, such as using location of trees, stumps, etc. as immovable pegs. The most important concern of this exercise is to ensure that the affected person is able to verify using his/her own standard/unit of measurement for him/herself, the size of land that is being lost. Ensuring that this occurs maintains transparency in the system and will thus avoid subsequent accusations of wrong measurements or miscalculations of areas. The current prices for cash crops would have to be determined. All crops to be compensated using a single rate regardless of the crop grown. This rate incorporates the value of crops and the value of the labour invested in preparing a new land. Determining compensation using a single rate creates transparency because anyone can measure the area of land for which compensation is due and multiply that by a single rate known to all. This approach also allows assignment of values to previous year s land (land in which a farmer has already invested labour) and land that have been planted but have not yet sprouted. Further, it avoids contention over crop density and quality of mixed cropping. The value of the labour invested in preparing agricultural land will be compensated at the average wage in the community for the same period of time. The rate used for land compensation is to be updated to reflect values at the time compensation is paid. The following example derives a total value for a one hectare land from the value of the crops on the land and the value of labour invested in preparing a replacement land. EXAMPLE OF METHOD TO BE USED TO DETERMINE A MONETARY COMPENSATION RATE FOR LAND- (Naira payments will be revised to reflect crop values and labor rates in effect at the time of compensation Item Compensated Basis of Value NAIRA/ ha Average of the highest 2003 official Value of Crops and market survey land prices per