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The Company shall have a Social Impact Assessment and Action Plan prepared with guidance from the IFC Performance Standards (and updated prior to any major change to the mine plan), which shall include [elements as the Parties may agree, such as the following] [the following elements and appropriate provisions for implementing the requirements of Sections 20.0, 21.0, 22.0, 23.0, 24.0, and 25.0 of this Agreement____]:

(a) Provisions to prevent or minimize the potential adverse impact of the Mining Operation on the individuals and communities resident in and around (i) the Project Area and (ii) areas affected by the processing or transport of Minerals whether using Company owned infrastructure of infrastructure provided by the State or third parties;
(b) Provisions to prevent or minimize unreasonable interference with the living conditions of the population lawfully settled within the Mining Area and surroundings, and to cause the Company’s employees and contractors to respect the customs of the local populations;
(c) Provisions to mitigate negative social impacts on the local community, including housing, sanitation and public health measures of any temporary or construction work force engaged by the Company.
(d) Provisions (with guidance from IFC Performance Standard 5 as it may from time to time be amended, where the surface of the Mining Area is permanently or seasonally occupied, or resources in the Mining Area are integral to livelihoods or cultural practices of local persons, communities, or Indigenous or Tribal Populations other than artisanal or small scale miners) to:

(a) Avoid or minimize displacement of persons or involuntary resettlement wherever feasible.
(b) Make satisfactory arrangements for payment of fair and reasonable compensation for any prospective damage to any crops, buildings, trees or works therein;
(c) Compensate the holders for the use of the surface area, where the surface rights to any land within the Mining Area are held or owned by local or Indigenous or Tribal Populations as recognized by Applicable Law or relevant customary law, at a reasonable rate agreed by the holder and the Company;
(d) Recognize the rights of surface right owners and occupiers, the rights of Indigenous or Tribal Populations, or other community in the Project Area is located, to continue utilizing land within the Project Area for subsistence purposes, including grazing livestock, using water, cultivating crops, hunting game, and collecting fruits and fuel wood, provided that such subsistence use would not be unsafe and does not substantially interfere with Mining Operations;

(e) Provisions for developing a plan of resettlement if at any point a resettlement of the local population appears to be essential, having regard to the requirements of IFC Performance Standard 5, as the same may from time to time be amended, including provisions to;

(a) Conduct full Consultation with Local Governments and all persons who may be displaced or relocated, with the goal of developing a resettlement program to which they consent;
(b) Mitigate adverse social and economic impacts by ensuring that resettlement activities are implemented with appropriate disclosure of information and Consultation;
(c) Improve, replace or restore the livelihoods of displaced persons to ensure in all material respects the availability of means of livelihood adequate to maintain a an appropriate quality of life in the community; and
(d) Improve, replace or restore living conditions among displaced persons through provision of adequate housing with security of tenure at resettlement sites.

(f) A procedure where, if the surface of the Mining Area is occupied by artisanal miners or persons conducting small scale mining activity, the Company shall treat such persons as displaced persons and implement the resettlement under the foregoing provisions, provided that the Company shall not be liable to compensate or resettle any artisanal miners who first occupy the Mining Area after the Effective Date, including a procedure to ensure that information regarding the Effective Date is well documented and disseminated throughout the Mining Area in a culturally accepted manner and that the resettlement plan is developed in Consultation with those artisanal miners or persons conducting small scale mining activity; and
(g) A plan for the transition of the Project Area to a post mining economy.

*For related provisions see 22.0 Local Community Development.

Example 1
Social Impact Assessment and Social Action Plan.

a. The Concessionaire shall conduct an SIA and produce an SAP in accordance with the Bid Materials. The SIA shall set forth the potential adverse impact of the construction and operation of the Mining Plant and the Infrastructure on the individuals and communities resident in and around (a) such Proposed Production Area and any Mining Plant or Infrastructure not located on such Proposed Production Area, or (b) areas affected by the proposed processing or transport of Product whether using Concessionaire-provided Infrastructure or equipment or facilities or equipment provided by the Government or third parties.
b. The SAP shall set forth reasonable procedures, in light of the costs involved, for the mitigation of such adverse impact. The SAP shall include a Resettlement Action Plan (“RAP”) component if communities located in or adjacent to such Proposed Production Area or to Mining Plant or Infrastructure not located in the Proposed Production Area should under International Standards be resettled for health or safety reasons. The RAP shall provide for (but not be limited to) suitable area(s) of resettlement with key emphasis on shelter and livelihood continuity.
c. The Concessionaire shall hold public hearings on the SIA and the SAP in [localities], and shall provide the Minister with a report the means taken to publicize the hearings, the names and affiliations of the persons who attended such hearings, a summary of the issues raised at such hearings, and a discussion of the actions taken by the Concessionaire in response to such hearings.

Example 2
Social Undertakings.

(a) [COMPANY] shall perform its obligations and operate the Project in accordance with its corporate sustainability policy, which is based on the cornerstone principles of corporate commitment, public responsibility, social progress, environmental stewardship and economic benefits. [COMPANY], through a sustainable development project, shall make contributions for the improvement of the life quality of the community, including the following contributions

(i) To lay out the formal bases and framework for its relationship with the local and national community of [COMPANY]’s operating philosophy and policies with respect to the social, economic, health and environmental aspects;
(ii) To establish the ways and manner in which [COMPANY] will work with and take the concerns of the local and national communities into account (e.g., [COMPANY]’s operating procedures, industrial, community, and external relations practices, communication and consultation mechanisms, stakeholders participation models, long-term sustainable and development strategy);
(iii) To formalize a function to promote and coordinate [COMPANY]’s activities with community stakeholders, and serve as an internal monitor, ombudsman and facilitator of cross-company performance with respect to sustainability objectives; and
(iv) To implement, if practical, specific policies regarding local hiring and purchasing policies (based on competitive terms and prices) and procedures; employee access to and terms of use of local public services; housing policy for hourly and salaried employees where necessary; direct employment during Construction and Operational Periods; opportunities for local and regional business to supply and service the Project; and company-community social-economic development initiatives.

Example 3
The Company shall continue to prepare, conduct, implement, update on an appropriate basis, and make public socio-economic baseline studies, socio-economic impact assessments, socio-economic risk analyses, as well as multi-year communities plans, community relations management systems, policies, procedures and guidelines, and mine closure plans, all of which shall be produced with community participation and input and be consistent with international best practice.

Example 4
Social Acceptability. The Contractor’s obligations under the Act, the Implementing Rules and Regulations and this Section XII to address the impact of its Mining Operations on the total environment of human beings, such as economic, social, cultural, political and historic factors, shall be Satisfied by compliance with the following:

a. Recognition of Rights, Customs and Traditions. The Contractor shall recognize and respect the rights, customs and traditions of local communities, particularly Indigenous Cultural Communities;
b. Obligations in Specific Phases. During or prior to the applicable Phase(s) of this Agreement, the Contractor shall comply with the following requirements:

I. Exploration, Pre-feasibility and Feasibility Phases. If the Contractor has not previously done so, the Contractor shall consult with and disseminate information to affected local communities concerning its Exploration activities prior to conducting Exploration therein.
II. Development and Construction Phase. In the process of obtaining approval of its Environmental Compliance Certificate, the Contractor shall participate in scoping, information dissemination and consultation with affected communities concerning its proposed project, and shall consider concerns raised by the community, as required under [RELEVANT ENVIRONMENTAL LAW], to Further Strengthen the Implementation of the Environmental Impact Statement System, and other pertinent laws, rules and regulations.
III. Operating Phase. After the Environmental Compliance Certificate is issued, the impacts of the Contractor’s Mining Operations on the human environment shall be addressed by the Contractor’s compliance with the Environmental Compliance Certificate, [RELEVANT ENVIRONMENTAL LAWS], Social Development Plan and the Contractor’s community development obligations under [RELEVANT ENVIRONMENTAL LAW] and Clause 13.1(i), (j) and (k) of this Agreement.

c. Payment of Just Compensation. The Contractor shall pay just compensation in accordance with [RELEVANT ENVIRONMENTAL LAW] when it builds, constructs or installs infrastructure and facilities on lands owned, operated or leased by other persons.

In accomplishing the foregoing, the Contractor may enter into one or more agreements with affected local communities, Indigenous Cultural Communities and Local Government Organizations. The Government agrees to encourage, facilitate and respect such agreements that are freely entered into between the Contractor and such affected communities, and agrees not to impose requirements with respect to social or cultural acceptability beyond what is required by pertinent laws, rules and regulations, and those voluntarily agreed to between the affected communities and the Contractor.

Example 5
OCCUPATION OF SURFACE LAND

(1) In order to exercise its exploration rights and mining rights under this Agreement and subject to the limitations of sections [xx] of the Minerals Act, the Company shall have the right to occupy and utilize permanently or temporarily within a Prospecting Area or Mining Base Area such parts of the surface land, whether Government owned, or otherwise, as may be reasonably required for accessory works and installations of the type listed in [RELEVANT CLAUSE] which are necessary or useful for its operations and such part of the surface as may be required for its prospecting and mining operations. The Company shall endeavor to make satisfactory arrangements for payment of a fair and reasonable compensation for any prospective damage to any crops, buildings, trees or works therein. The Government shall negotiate on behalf of the landowners or occupiers with the Company to assess the compensation to be paid. The landowners or occupiers shall have the right to participate in the negotiations.

(2)

(i) It is recognized that the Company’s mining operations will of necessity disturb the top soil and intermix subsoil strata therewith, and that such disturbance and intermixing is a necessary incidental to the alluvial mining of [mineral] and associated minerals. Accordingly, it is agreed that such disturbance and intermixing, and their effect, if any, on the future use and occupancy of the surface land shall not be taken into account or evaluated in determining compensatory damages payable to the owner or occupier of the land. To minimize such disturbances, the Company agrees that it will restore all mined areas to reasonable surface contours not in substantial contrast with the contours of the adjacent and surrounding land surface.
(ii) In case it shall not be possible for the Company to reach a satisfactory agreement with the owner or occupier of the surface, in case of land not owned by the Government, within thirty (30) days after the commencement of its efforts to do so; or such extended time as the Company and such owner or occupier shall agree, the Company, unless it elects not to occupy and utilize such surface areas, shall bring the matter to the attention of the District Officer having jurisdiction by filing a petition setting forth the facts of the case and specifying as exactly as may be possible the land which it requires and the nature of the occupation of the same, whether for accessory works and installations or for prospecting or mining operations. As soon as may be conveniently done thereafter, but not more than sixty (60) days after, the date of the filing of the said petition, the Government shall cause the District Officer to assess the compensation to be paid to the owner of the land when and if such prospective damages, loss or destruction of goods or property are inflicted by the Company, and to promptly notify the parties of the sum awarded. If the owner of the land should be unknown or there should be a controversy as to the ownership, the Company shall make a payment to the District Officer who shall determine its disposition. Either party who is dissatisfied with the award of the District Officer may appeal to the Minister who may render a decision or refer the dispute for determination by arbitration. The decision by the Minister or the arbitrators shall be final and binding on the parties. Upon agreeing to pay the amount specified, the Company may enter the land, but shall not be required to agree to pay such amount if it withdraws its petition to enter upon such land and has not already entered upon such land.
(iii) The compensation payable by the Company pursuant to this Clause shall be based on the estimated monetary amount (or fair market value) of the damage to be done to the crops, buildings, trees or works on the land. Any compensation with reference to the fact that the owner will be deprived of the use and occupancy of the land is included in and covered by the surface rent payable pursuant to Clause 6(a)(2) hereof.
(iv) The Company shall not unduly disturb and interfere with the living conditions of local population settled within the Mining Lease Area. The Company shall respect and cause its employees and contractors to respect the customs of the local populations.
(v) If at any point a resettlement of the local population appears to be absolutely essential, the Company shall move with utmost caution, with the consent of the Government and in consultation with local authorities in persuading the local population to resettle and provide a fully adequate resettlement program in accordance with the directions of the responsible Minister.

Example 6
The Licensee shall not disturb or unreasonably interfere with the living conditions of the population lawfully settled within the Exploration License Area and surroundings and shall respect their customs and shall provide a fully adequate resettlement program [if that is essential and] approved by the Licensing Authority.

Example 7
Obligations of the Contractor

l. Indigenous Peoples

i. To recognize and respect the rights, customs and traditions of Indigenous Peoples within the Contract Area in accordance with pertinent laws, rules and regulations.
ii. To comply with existing laws, rules and regulations respecting the rights of the Indigenous Peoples over their area within the Contract Area.
iii. To comply with any and all obligations as may be provided under specific agreements entered into with the Indigenous Peoples within the Contract Area.
Obligations of the [HOST COUNTRY]. The [HOST COUNTRY] shall:
…

c. Indigenous Peoples:

i. The [HOST COUNTRY], when necessary and appropriate, shall use its best efforts:

a. To ensure the strict compliance by the Contractor and the concerned Indigenous Peoples with any and all terms and conditions of any agreement entered into by and between said parties; and b. to facilitate when requested, any future agreements that the Contractor and the Indigenous Peoples may enter into.

ii. The [HOST COUNTRY] shall respect any and all agreements entered into between the Contractor and the Indigenous Peoples and shall not impose conditions on the Contractor’s Mining Operations on Ancestral Lands/Domains that are more restrictive than those imposed by law, rules or regulations, and those agreed upon by and between the affected Indigenous Peoples and the Contractor;
iii. The intention of the parties in their voluntary agreements shall prevail to the extent not inconsistent with pertinent laws, rules and regulations.

Example 8
Policy of the World Bank Group on Involuntary Resettlement (OD 4.30); June 1, 1990.
The Parties agree to comply with the substantive environmental and social principles prescribed by this Policy, with the following procedural exceptions and modifications:

(a) Paragraphs 23, 24, 26, 27, and 30 of the Policy shall be deemed not to apply.
(b) Paragraph 22 of the Policy, beneath the heading “Implementation Schedule, Monitoring, and Evaluation”, shall be deemed to read as follows:
Arrangements for monitoring implementation of resettlement and evaluating its impact should be developed during Project preparation and used during supervision. Monitoring provides a warning system and a channel for the resettlers to make known their needs and a reaction to resettlement execution. Annual and mid-term reviews are desirable for large-scale resettlement. Impact evaluation should continue for a reasonable period after all resettlement and related development activities have been completed.
(c) Paragraph 31 of the Policy, beneath the heading “Implementation and Supervision”, shall be deemed to read as follows:
Resettlement components should be supervised throughout implementation. Supervision that is sporadic or left until late in implementation invariably jeopardizes the success of resettlement. Annual reviews of large-scale resettlement are highly desirable. These reviews should be planned from the outset to allow for necessary adjustments in Project implementation. Complete recovery from resettlement can be protracted and often make it necessary to continue supervision until well after populations have been relocated, sometimes even after a project has been closed.

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

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