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Community Development at  Sadiola & Yatela Gold Mines in Mali, West Africa:   sustainability challenges Andrew Mackenzie & Justin Pooley YATELA S.A. Republic of Mali
Hypothesis Challenge is establishing and maintaining good relations with neighbouring communities Community development initiatives are a core element of business – not an ‘add-on’ – part of the ‘social license to mine’ “ A little can go a long way” Working towards mine closure; the real test of ‘sustainability’
Project Location Bamako - Capital of Mali Mali Bamako Tombouctou Kayes Yatela Sadiola 50-80km  from Kayes
Sadiola - The District Center
People of the Sadiola district
Sadiola Gold Mine  –  a remote rural location
The contrasts   First world technology meets third world realities
The Social Context EIA   =   social impacts of most significance Community liaison a key function in Env Dept  L iaison, consultation & participation
What are we doing? Community Liaison -  managing relations with  local communities Open communication  & honesty “ Building bridges” = building trust
Mitigating the impacts on local communities Transforming a subsistence  economy to a cash economy Stimulating income generation What are we doing? Community Development  “Helping people to help themselves”
The Early Days Since Jan ’97, US$60,000/yr for development in 6 villages – mitigating the socio-economic impacts During 1997, financed, among others, a range of small projects amounting to US$8912: Apr ’97 US$400 millet for Koma village after fire-losses Apr ’97 US$5005 for installation  of Sirimana water handpump May ’97 US$350 for repair of  Farabakouta water handpump Sep ’97 US$2000 loan for estab.  of a shop at Madine
Village relocation “ involuntary resettlement should be conceived and executed as a development program” (World Bank, OD 4.30) Objective: ‘nobody should be worse off than before the move’ Provision of fertilizer to assist in the  establishment of new croplands – replaced with ploughs & seeders Loan to the local doctor to  set-up a pharmacy
Mid ’97 - Dispute arose between Sadiola & Farabakouta and the surrounding villages regarding who’d be the beneficiaries of the Fund – the district or those affected by relocation? To alleviate short-term needs in Sadiola & Farabakouta, it was agreed to purchase for each village: 30 t millet for free distribution 5 t millet for the estab. of a grain bank the installation of a millet crusher, and training of operators Operation of the Community Development Fund continued to present problems Development Fund
’ 98 SEMOS proposed the estab. of Development Foundation - to secure add. funding for projects via Donors and other NGO’s Development strategy outlined in the RAP  Oct ’98 - appointment of a Development Project Co-ordinator -  review existing information, set-up institutional infrastructure & identify potential projects 2000 Community Development Coordinator assisted by two Facilitators at Sadiola & two Facilitators at Yatela Fund to Foundation
Development Projects SADIOLA DAM US$ 100,000  investment  in the future “ Downstream” development projects: Fishing Vegetable gardens/orchards Rice production
Sadiola dam & vegetable gardens
Development Projects A ccess to a traditional (alluvial) resource I ntroducing appropriate technology   to improve productivity   e.g. “Ezipanner” Artisinal gold mining
E ntrepreneurial development   -  stimulating   income generation - reducing dependence on the mine Market garden Tailors Numerous small projects identified,  esp.  in ASERNI  women’s  survey of 6 villages (e.g. micro-credit facilities).  ‘ M ake a rapid and significant positive impact in the relevant villages in the short-term, while larger development initiatives are being assessed ’ Development Projects
Micro-credit scheme -  Stimulating income generation Encouraging entrepreneurial diversity Development Projects ‘ Smous’ Workshop Cattle trading Clothes
Nursery Domestic waste disposal Garden waste disposal Linking community development with the mine business activities
Health assistance Malaria control  -  villages near the  mine sprayed annually to control mosquitoes Innoculation assistance -  annual donation made to regional in n oculation campaigns HIV/Aids awareness
Micro-credit schemes Sadiola Mine implemented in  1999 83 loans granted total of US $  72,000 average  US $  868  /  loan 25 of the loans have been fully repaid (30%) Yatela Mine implemented in 2000 20 loans granted total of US $  20,571 average  US $  1029  /  loan  10 of the loans have been fully repaid (50%) Small Investment - Great Returns
The Future - Integrated Development Planning (IDAP) & Mine Closue Mine closure in 6 years (… if the deep sulphides are not mined) Mine closure plan first developed in 1999, with annual revision, but needs wider stakeholder participation Limitations of previous community development efforts – failed to attract external donors & NGO partners Gradual deterioration in communications & community relations
The Future - Integrated Development Planning (IDAP) & Mine Closue Frustrations filtered to national press, Malian expatriates working in Paris & ‘Friends of the Earth’ Recognition that future ‘sustainability’ requires broad-based buy-in esp. from government Multi-stakeholder workshop held in Sadiola from 23-26 June ’03 Need to harness the advantages & opportunities before too late Focus on implementation of sustainable projects continuing beyond mine closure - stakeholder committee with checklist of agreements & assigned responsibilities
Development Thinking Malian community development initiatives have evolved over the life of the mine and will continue to do so  MMSD – CSDP – framework for community interaction – common goals – monitoring & evaluation – performance indicators Success depends on combined efforts – it’s the best prospect for long-term sustainability Contribution to Development Fund recently increased from US$75,000 p.a. to US$204,000 p.a. (for Sadiola & Yatela)
Business Case Competitive advantages for companies with sound social investment strategies? – able to establish & operate mines in conditions other perceive as too risky? Companies are investing in building ‘social competencies’ e.g Rio Tinto, BHPBilliton, WMC  No longer sufficient to obtain official mining permits, but must earn & retain the ‘social licence to operate’
Conclusion Happy villagers & local employees Positive atmosphere: Good public relations Good relationship with  local/regional government GOOD WORKING ENVIRONMENT - PEACEFUL, PRODUCTIVE MINE

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Community Development in Mali

  • 1. Community Development at Sadiola & Yatela Gold Mines in Mali, West Africa: sustainability challenges Andrew Mackenzie & Justin Pooley YATELA S.A. Republic of Mali
  • 2. Hypothesis Challenge is establishing and maintaining good relations with neighbouring communities Community development initiatives are a core element of business – not an ‘add-on’ – part of the ‘social license to mine’ “ A little can go a long way” Working towards mine closure; the real test of ‘sustainability’
  • 3. Project Location Bamako - Capital of Mali Mali Bamako Tombouctou Kayes Yatela Sadiola 50-80km from Kayes
  • 4. Sadiola - The District Center
  • 5. People of the Sadiola district
  • 6. Sadiola Gold Mine – a remote rural location
  • 7. The contrasts First world technology meets third world realities
  • 8. The Social Context EIA = social impacts of most significance Community liaison a key function in Env Dept L iaison, consultation & participation
  • 9. What are we doing? Community Liaison - managing relations with local communities Open communication & honesty “ Building bridges” = building trust
  • 10. Mitigating the impacts on local communities Transforming a subsistence economy to a cash economy Stimulating income generation What are we doing? Community Development “Helping people to help themselves”
  • 11. The Early Days Since Jan ’97, US$60,000/yr for development in 6 villages – mitigating the socio-economic impacts During 1997, financed, among others, a range of small projects amounting to US$8912: Apr ’97 US$400 millet for Koma village after fire-losses Apr ’97 US$5005 for installation of Sirimana water handpump May ’97 US$350 for repair of Farabakouta water handpump Sep ’97 US$2000 loan for estab. of a shop at Madine
  • 12. Village relocation “ involuntary resettlement should be conceived and executed as a development program” (World Bank, OD 4.30) Objective: ‘nobody should be worse off than before the move’ Provision of fertilizer to assist in the establishment of new croplands – replaced with ploughs & seeders Loan to the local doctor to set-up a pharmacy
  • 13. Mid ’97 - Dispute arose between Sadiola & Farabakouta and the surrounding villages regarding who’d be the beneficiaries of the Fund – the district or those affected by relocation? To alleviate short-term needs in Sadiola & Farabakouta, it was agreed to purchase for each village: 30 t millet for free distribution 5 t millet for the estab. of a grain bank the installation of a millet crusher, and training of operators Operation of the Community Development Fund continued to present problems Development Fund
  • 14. ’ 98 SEMOS proposed the estab. of Development Foundation - to secure add. funding for projects via Donors and other NGO’s Development strategy outlined in the RAP Oct ’98 - appointment of a Development Project Co-ordinator - review existing information, set-up institutional infrastructure & identify potential projects 2000 Community Development Coordinator assisted by two Facilitators at Sadiola & two Facilitators at Yatela Fund to Foundation
  • 15. Development Projects SADIOLA DAM US$ 100,000 investment in the future “ Downstream” development projects: Fishing Vegetable gardens/orchards Rice production
  • 16. Sadiola dam & vegetable gardens
  • 17. Development Projects A ccess to a traditional (alluvial) resource I ntroducing appropriate technology to improve productivity e.g. “Ezipanner” Artisinal gold mining
  • 18. E ntrepreneurial development - stimulating income generation - reducing dependence on the mine Market garden Tailors Numerous small projects identified, esp. in ASERNI women’s survey of 6 villages (e.g. micro-credit facilities). ‘ M ake a rapid and significant positive impact in the relevant villages in the short-term, while larger development initiatives are being assessed ’ Development Projects
  • 19. Micro-credit scheme - Stimulating income generation Encouraging entrepreneurial diversity Development Projects ‘ Smous’ Workshop Cattle trading Clothes
  • 20. Nursery Domestic waste disposal Garden waste disposal Linking community development with the mine business activities
  • 21. Health assistance Malaria control - villages near the mine sprayed annually to control mosquitoes Innoculation assistance - annual donation made to regional in n oculation campaigns HIV/Aids awareness
  • 22. Micro-credit schemes Sadiola Mine implemented in 1999 83 loans granted total of US $ 72,000 average US $ 868 / loan 25 of the loans have been fully repaid (30%) Yatela Mine implemented in 2000 20 loans granted total of US $ 20,571 average US $ 1029 / loan 10 of the loans have been fully repaid (50%) Small Investment - Great Returns
  • 23. The Future - Integrated Development Planning (IDAP) & Mine Closue Mine closure in 6 years (… if the deep sulphides are not mined) Mine closure plan first developed in 1999, with annual revision, but needs wider stakeholder participation Limitations of previous community development efforts – failed to attract external donors & NGO partners Gradual deterioration in communications & community relations
  • 24. The Future - Integrated Development Planning (IDAP) & Mine Closue Frustrations filtered to national press, Malian expatriates working in Paris & ‘Friends of the Earth’ Recognition that future ‘sustainability’ requires broad-based buy-in esp. from government Multi-stakeholder workshop held in Sadiola from 23-26 June ’03 Need to harness the advantages & opportunities before too late Focus on implementation of sustainable projects continuing beyond mine closure - stakeholder committee with checklist of agreements & assigned responsibilities
  • 25. Development Thinking Malian community development initiatives have evolved over the life of the mine and will continue to do so MMSD – CSDP – framework for community interaction – common goals – monitoring & evaluation – performance indicators Success depends on combined efforts – it’s the best prospect for long-term sustainability Contribution to Development Fund recently increased from US$75,000 p.a. to US$204,000 p.a. (for Sadiola & Yatela)
  • 26. Business Case Competitive advantages for companies with sound social investment strategies? – able to establish & operate mines in conditions other perceive as too risky? Companies are investing in building ‘social competencies’ e.g Rio Tinto, BHPBilliton, WMC No longer sufficient to obtain official mining permits, but must earn & retain the ‘social licence to operate’
  • 27. Conclusion Happy villagers & local employees Positive atmosphere: Good public relations Good relationship with local/regional government GOOD WORKING ENVIRONMENT - PEACEFUL, PRODUCTIVE MINE

Editor's Notes

  • #2: Good morning, As there is no way I can present all aspects of this paper, my aim is to interest you enough to read it. I will use a lot of visual material to stimulate your interest and to encourage questions. My colleagues Sam Samake, and Issaka Sidibe, who is the Community Development Coordinator are really the people to speak to about this. The co-author of this paper is Justin Pooley who acted as a consultant to the mine. This paper is closely tied to that on village relocation.