Chapter 1 Introduction Table of Contents 1. Introduction ............................................................................................................................................ 1 1.1 1.2 1.3 1.4 1.5 1.6 Project Proponent .......................................................................................................................... 3 Project Objectives and Scope ......................................................................................................... 4 1.2.1 Scope of the Project ............................................................................................................. 4 1.2.2 Benefits of the Project........................................................................................................... 5 Project Overview ........................................................................................................................... 6 1.3.1 Project Land Tenure Status ................................................................................................... 8 1.3.2 Project Location ................................................................................................................... 8 1.3.3 Project Components ........................................................................................................... 10 1.3.4 Project Timelines................................................................................................................ 14 1.3.5 Construction Activities ....................................................................................................... 14 1.3.6 Project Operations ............................................................................................................. 14 1.3.7 Decommissioning Activities ............................................................................................... 15 The EIS Process ............................................................................................................................ 15 1.4.1 Legislative Process .............................................................................................................. 15 1.4.2 Objectives of the EIS .......................................................................................................... 18 1.4.3 Updates Since Proposal Application and Scoping Report .................................................... 19 1.4.4 EIS Methodology ................................................................................................................ 19 1.4.5 EIS Content Requirements and Reference within EIS ........................................................... 26 1.4.6 Submissions and Objections to the EIS ............................................................................... 29 Public Consultation ...................................................................................................................... 30 1.5.1 Purpose .............................................................................................................................. 30 1.5.2 Consultation and Disclosure Planning ................................................................................ 31 1.5.3 Location of Consultation .................................................................................................... 32 1.5.4 Timing................................................................................................................................ 32 1.5.5 Consultation Workshops and Meetings............................................................................... 32 Project Approvals ......................................................................................................................... 33 PAGE i 1. Introduction This Environmental Impact Statement (EIS) identifies the mining activities proposed by SMM Solomon Limited (SMM Solomon) on Santa Isabel Island in the Solomon Islands. Mining on Santa Isabel Island is part of the overall Solomon Islands Nickel Project (the Project) proposed by SMM Solomon (refer to Figure 1-1) which includes mining activities on another mining tenement on Choiseul Island. The proposed mining development activities to be undertaken on Choiseul Island are subject to a separate EIS. This EIS has been prepared in accordance with requirements of The Environment Act 1998 and The Environment Regulations 2008 of the Solomon Islands. The Solomon Islands has a rich and diverse society containing at least 300 cultural and linguistic groups. The Solomon Islands is also one of the most ecologically significant archipelagos in the world. The occurrence of a high number of endemic species makes the Solomon Islands globally unique. To ensure that the unique characteristics of the Solomon Islands are preserved, SMM Solomon has conducted environmental and community studies in conjunction with their exploration activities and engineering studies. The environmental and community studies are presented in this EIS. The intended audience for the EIS includes: • the Environment and Conservation Division of the Ministry of Environment, Climate Change, Disaster Management and Meteorology (MECDM) for the purposes of assessing SMM Solomon’s development application • Project stakeholders including but not limited to customary landowners, affected and nearby communities and • interested non-government organisations (NGOs). This introductory chapter of the EIS provides an overview of the Proponent and the Project. It also presents the objectives and methodology of the environmental, economic and social impact assessments that were undertaken; details of the public consultation undertaken prior to and during the preparation of the EIS; and a summary of the approvals required for the Project. PAGE 1 Figure 1-1 Solomon Islands Nickel Project PAGE 2 1.1 Project Proponent The Project Proponent is SMM Solomon. SMM Solomon is based in Honiara, Solomon Islands and is engaged in the exploration and development of nickel ore deposits within the Solomon Islands. SMM Solomon proposes to develop laterite ore deposits that it has identified during exploration on tenements awarded to the Proponent on Santa Isabel and Choiseul Islands within the Solomon Islands. The Proponent’s contact details are as follows: SMM Solomon Limited PO Box 912 Honiara Solomon Islands Telephone: (677) 27074; Fax: (677) 27075 Email: [email protected] Website: www.smm.co.jp/solomon SMM Solomon was established in 2005 and is 100% owned by Sumiko Solomon Exploration Company Limited. Sumiko Solomon Exploration Company Limited is in turn 70% owned by Sumitomo Metal Mining Company Limited and 30% owned by Japan Oil, Gas and Metals National Corporation (refer to Figure 1-2). SMM Solomon operates as a subsidiary of Sumitomo Metal Mining Company Limited. Figure 1-2 SMM Solomon Ownership Source: http://www.smm.co.jp/solomon/about/ Sumitomo Metal Mining Company Limited is a global company specialising in mining, smelting, refining, and manufacturing of semiconductor and advanced materials. It is one of 21 leading mining and metals companies that are members of the International Council on Mining and Metals (ICMM). As members of ICMM, Sumitomo Metal Mining Company is committed to implementing the ICMM Sustainable Development Framework which includes the following ten principles: PAGE 3 1.2 • Implement and maintain ethical business practices and sound systems of corporate governance. • Integrate sustainable development considerations within the corporate decision-making process. • Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities. • Implement risk management strategies based on valid data and sound science. • Seek continual improvement of our health and safety performance. • Seek continual improvement of our environmental performance. • Contribute to conservation of biodiversity and integrated approaches to land use planning. • Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products. • Contribute to the social, economic and institutional development of the communities in which we operate. • Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders. Project Objectives and Scope Sumitomo Metal Mining Company seeks to provide maximum corporate value through the maintenance of a global network of mining, mineral processing, refining and smelting facilities. The objectives of the Project are to: 1.2.1 • develop a technical and financial mining operation on Santa Isabel Island in harmony with the community and environment • produce nickel ore • collaborate with provincial and central governments of the Solomon Islands • maximise the economic and social benefits realised by the development of the resource to the Solomon Islands and SMM Solomon • provide a significant contribution to the sustainable development of the Solomon Islands. Scope of the Project SMM Solomon is working towards a resources plus refining business model. The nickel deposits within the Solomon Islands have been targeted for exploration and development to replace other nickel deposits that are currently being mined as feed stock to nickel ore processing and refining facilities. Pre-feasibility studies commissioned by SMM Solomon are investigating various scenarios for operations in the Solomon Islands including exporting ore for processing or building and operating processing facilities within the Solomon Islands. Alternatives being considered by SMM Solomon include the following (Golder Associates 2012): • Mining of the nickel laterite ore within the existing tenements as a standalone mining operation with the ore transported for processing elsewhere, either within the Solomon Islands or in another country. • Development of a hydrometallurgical processing plant (HPP) in the Solomon Islands. The HPP would process the upper limonitic component of the nickel laterite ore from the existing Choiseul and Isabel tenements as well as potentially other ore sources available in the Solomon Islands. Saprolite ore with sufficient nickel grades would be transported to Japan for processing. PAGE 4 • Expiration of existing tenements with no recovery of the nickel ore resources by SMM Solomon. The project activities assessed by this EIS involve the mining of nickel laterite ore within the Isabel Tenement D and Isabel Tenement E with delivery of nickel ore to ships for export for processing. Limonite and saprolite ores will be processed separately, with the alternatives for processing briefly described below. Further detail on ore processing alternatives is provided in Chapter 2. 1.2.1.1 Processing of Limonite Ore Golder Associates (2012) identified potential buyers for the limonite ore including: • a new SMM Solomon-owned HPP facility developed in the Solomon Islands • the existing SMM HPP facility in Coral Bay, Philippines or the facility currently under construction in Taganito, Philippines • the existing nickel/cobalt refinery at Yabulu in Australia • supplying growing demand for nickel pig iron in China. 1.2.1.2 Processing of Saprolite Ore The saprolite ore which has low iron content and high magnesium-silica content can be smelted to produce a ferro-nickel matte product from the furnace. This ferro-nickel matte product is currently produced by Sumitomo Metal Mining Company Limited from their Hyuga processing plant in Japan. 1.2.2 Benefits of the Project In the event that sufficient resources are not defined, or the appropriate mining tenure is not granted to mine sufficient ore, the Project will not proceed. This would result in the loss of potential benefits to the country and local communities including: • peak employment of approximately 500 people during the construction of critical infrastructure over 24 months • employment of approximately 600 people to operate the Project over the 23 year mine life • an estimated contribution of between US$30 and US$89 million in tax revenues to the Government of the Solomon Islands over the life of the Project • increased opportunities for education and training of local people with the aim of employment within the Project • indirect employment and development opportunities for local residents such as purchase of goods and services from local suppliers (e.g., fresh good and accommodation) • other indirect benefits such as infrastructure (port, roads, power generation) which may relieve local economic development constraints related to the lack of critical infrastructure • benefits to the macro-economy including an increase in the Gross Domestic Product of an average of 0.3% per year over the life of the Project • contribution to increased household income within the Solomon Islands. The potential costs and benefits of the Project are discussed further in the Impact Assessment Report Economics appended to the EIS and summarised in Chapter 4. PAGE 5 1.3 Project Overview SMM Solomon proposes to extract limonite and saprolite ore through strip mining and export the ore for processing into nickel. The Project also includes development of associated infrastructure and port facilities to support the mining activities. This section of the report provides an overview of the Project location, the existing environment and the proposed development. The areas of development associated with the Project are identified on Figure 1-3. PAGE 6 Figure 1-3 Project Area PAGE 7 1.3.1 Project Land Tenure Status SMM Solomon holds a 100% interest in Isabel Tenements D and E. The status of the tenements is detailed in Table 1-1. The tenements are collectively referred to as the Project area for the purpose of this EIS. Table 1-1 Existing Prospecting Licences Subject to EIS Tenure Name Isabel Tenement D Isabel Tenement E Prospecting License No. PL-48/07 PL-49/07 Area (km2) 114.0 15.0 Date of Issue 02 July 2007 02 July 2007 Date of Expiration 2 July 2012 2 July 2012 SMM Solomon is currently in the process of renewing these prospecting licences under the Mines and Minerals Act 1990. SMM Solomon intends to apply under the Act for mining leases for Isabel Tenement D and Isabel Tenement E prospecting licenses. 1.3.2 Project Location This section provides a brief description of the existing environment influencing the Project area. The Solomon Islands are located in the Pacific Ocean, northeast of Australia, between 155o 30’ and 170 o 30’ E longitude and between 5 o 10’ and 12 o 45’ S latitude. This scattered archipelago of mountainous islands and low lying coral atolls stretch approximately 1,400 km from the island of Bougainville (Papua New Guinea) to the Santa Cruz Islands. The Solomon Islands form a linear northwest – southeast trending double chain of islands separated by the New Georgia Sound (The Slot). The archipelago covers an area of about 461,000 km2, while the land area is 28,446 km2, including six major islands and approximately 992 smaller islands, atolls and reefs. The major islands are Choiseul, New Georgia, Santa Isabel, Guadalcanal, Malaita, Makira (also called San Cristobal) and Santa Cruz. Santa Isabel Island is located in the northeast of the Solomon Islands, approximately 110 km northwest of Honiara (the capital of Solomon Islands located on the Island of Guadalcanal) and is the longest island (200 km long and 30 km wide) in the Solomon Islands. SMM Solomon proposes to mine a number of their existing tenements on both Choiseul and Santa Isabel Islands. This EIS assesses the potential impacts from the proposed activities on Isabel Tenements D and E only. The local communities identified within or in the vicinity of Isabel Tenement D and E are identified in Figure 1-3. Villages have been categorised as priority 1 or priority 2 for consultation purposes, with priority 1 being those that are more likely to be impacted by Project activities. Note that the term ‘villages’ refers to permanently inhabited places whilst ‘settlement’ refers to those areas temporarily inhabited. 1.3.2.1 Geology and Nickel Resources The Solomon Islands are part of the larger ‘Greater Melanesian Arc’ which marks the collision zone between the northeast moving Australasian Plate and the northwest moving Pacific Plate (Petterson et al 1999). Santa Isabel Island was formed at the collision boundary between the OJP of the Pacific Province and the Old Solomon Arc of the Central Province. The Kia-Korigole-Kaipito Fault System (KKKFS) which separates the Pacific Province from the Central Province dissects Santa Isabel Island, and the tenements. More detail on the regional geology is provided in Report - Erosion and Sediment Control Strategy. In the Solomon Islands ultramafic rocks occur as thin slices forced up to the surface through faulting. This has occurred along the fault line (the KKKFS) on the Isabel tenements. PAGE 8 Nickel laterites form over ultramafic (basement) rocks which have high magnesium, nickel and cobalt content. The high rainfall associated with the tropic climate causes the rocks to weather – removing and leaching the magnesium and silica and resulting in the enrichment of iron, nickel and cobalt. The nickel resource of interest to SMM Solomon occurs in two different soil horizons and produces two different ore products: • Limonite – The upper horizon ranging from 5 m to 10 m in depth which is iron rich with limited nickel enrichment. • Saprolite – Transitioning from limonite at a depth of around 5 m, is magnesium rich (iron poor) with greater potential for nickel enrichment. Further information on the nickel resources of the Isabel Tenement D and E is provided in Chapter 3. 1.3.2.2 Seismicity and Tsunamis The Solomon Islands are situated on the boundary between the northeast moving Australasian Plate and the northwest moving Pacific Plate. The resulting seismicity between these two plate boundaries is focused along the New Britain Trench (or the South Solomon Trench System (SSTS)) trending in a northeast to southwest orientation. Santa Isabel Island is situated outside of the epicentre areas, however is still in close proximity to the seismic plate boundary and therefore potentially subject to damage through ground motion. Seismic activity may also result in a tsunami. A tsunami generated from fault displacement on the SSTS will generate a wave radiating in all directions and intersecting Santa Isabel Island on its southwest coastline. 1.3.2.3 Climate and Weather The Solomon Islands experiences a tropical climate characterised by high, uniform temperature and humidity and high rainfall. The mean maximum temperature ranges from 30 °C to 32 °C and humidity ranges between 60% and 90%. The average annual rainfall ranges from 3,000 mm to 5,000 mm with topographical effects causing significant variations in rainfall between locations. The average frequency of cyclone occurrence is between one and two per year, tending to increase southward. The cyclones that do affect the Solomon Islands are usually in the early stage of their lifecycle and are of low intensity. However, cyclones can cause serious damage to structures, crops, forests and local water supplies and have caused loss of life in the past (MECDM 2010). Further weather and climate data for the Project area is presented in Chapter 4. 1.3.2.4 Topography The topography of the Solomon Islands is characterised by moderately rugged mountains with gently rolling steep sided ridges and dissected plateau-like areas rising to greater than 1,000 m above sea level (ASL). Santa Isabel Island consists of a single chain of volcanic mountains which slopes gently to a low lying coastal strip. The topography of Isabel Tenement D is dominated by the northwest to southeast trending ridge line which has an elevation in this area of 400 m ASL. Drainage occurs through a series of near-parallel tributaries on either side of the ridge line. The Baravale Passage or Ortega Channel (in Thousand Ships Bay) separates Santa Isabel Island from San Jorge Island. The southern coastline of Santa Isabel Island and the adjacent northeast shoreline of San Jorge is characterised by low-lying mangrove forest. PAGE 9 Isabel Tenement E is located on the south-western coastline between the Bay of Tanakeka in the north and Lepi Bay in the south. From the coastline elevation rises steeply inland to 200 m ASL up to a saddle formed by the Nehihajauia River. The elevation rises to 300 m ASL outside of the tenement on the peak of Mount Sailike. The small island of Lilihigna is located immediately to the southwest of Isabel Tenement E. The majority of the coastline along Isabel Tenement E contains reefal communities. 1.3.2.5 Flora and Fauna The Project area contains three major vegetation communities – forest over ultramafic/ultrabasic rocks (ironwood forest), lowland rainforest and mangrove areas. The vegetation provides important habitat for indigenous terrestrial wildlife species. The fauna diversity within the Project area is relatively high, including amphibians, reptiles, birds and mammals. Vegetation remains relatively intact with over 50% of the Project area still covered with old growth forest. Some portions of the project site have been cleared for cropping and horticulture and commercial forestry. Refer to Figure 1-3. 1.3.2.6 Land Use Land use on Santa Isabel Island is typical of other parts of the Solomon Islands. Villages are located along the coastline and river systems with very few people residing in the rugged mountainous interiors of the island. There remains a high reliance on the traditional subsistence cultivation system. However, more intensive farming practices and cash cropping have been introduced more recently. Logging has occurred and has resulted in clearing of substantial sections of native forest. Farming and logging practices have significantly depleted soils of nutrients and resulted in increased erosion. Commercial agriculture using permanent crops is occurring on Santa Isabel Island. However, due to a variety of infrastructure-related issues, the industry remains at a subsistence level. Land use for livestock farming is minimal. Hunting and fishing in and around the river systems is part of the local inhabitants’ subsistence lifestyle and an important source of protein. Local people have allocated some land for conservation purposes in order to maintain their customary hunting and fishing activities, conserve important custom trees and protect local medicinal herbs used in traditional medicines. Land tenure in the Solomon Islands is largely customary with the majority of land owned by tribes and clans. Access to land for mining and infrastructure projects is complex and difficult because of conflicts over land boundaries. 1.3.3 Project Components The key components of the Project’s construction and operation phases are described by tenement below. Figure 1-4 and Figure 1-5 present the location of key components. PAGE 10 Figure 1-4 Isabel D Project Components PAGE 11 Figure 1-5 Isabel E Project Components PAGE 12 Isabel Tenement D • Mine areas (including sediment and erosion control) • Ore transportation and ore handling (mine to port): • • primary haul roads ore stockpiles (within 1 km of mining operation) mine access roads. Mine Industrial Area (MIA-I3): workshop and vehicle maintenance area vehicle wash area fuel and hazardous chemicals storage facility administration building. Port -I1: ore screening area (saprolite only) ore stockpile areas (separate for limonite and saprolite) barge landing facilities transhipment and other designated anchorage locations ferry terminal other moorings or landing facilities. • Accommodation Camp (AC-I1) • Water Storage Facility (WSF-I1) • Landfill • Borrow pit(s) • Utilities infrastructure: water, sewerage, power and telecommunications • Surface water management. Isabel Tenement E • Mining areas (including sediment and erosion control) • Ore transportation and ore handling (mine to port): • primary haul roads ore stockpiles (within 1 km of mining operation) mine access roads. Port –I2: ore screening area (saprolite only) ore stockpile areas (separate for limonite and saprolite) PAGE 13 • 1.3.4 barge landing facilities ferry terminal other moorings or landing facilities. Borrow pit(s). Project Timelines It is anticipated that construction of the Project will commence approximately 24 months prior to the commencement of mining operations. The operations phase will be conducted over a 23 year life of mine. Actual dates to commence construction and operations may vary based on the Project approval process and timeline. 1.3.5 Construction Activities The construction workforce is estimated to be up to 500 personnel and construction is expected to take 24 months. The construction workforce will be accommodated at the (permanent) accommodation camp that will be prefabricated off-site to the extent possible, before being mobilised to site. The following construction phase activities will be conducted in sequence: 1.3.6 • implementation of sediment and erosion control measures • establishment of initial port facilities • establishment of temporary construction camp and associated infrastructure • establishment of initial access roads to construction camp and MIA • development of construction camp, MIA and mine construction infrastructure • establishment of initial mine areas and road sediment control and initial clearing and stockpiling of the first areas to be mined. Project Operations Mining operations on the Isabel tenements will involve the development of numerous individual ore deposits with approximately two or three mine areas opened to mining activities at any one time. An estimated 60 ha (0.6 km2) will be mined annually. This will result in the production of 2.05 dry million tonnes per annum (Mtpa) of nickel laterite ore comprised of: 1.8 Mtpa of lower quality limonite and 0.25 Mtpa of higher quality saprolite. A conventional strip mining method will be used to access the ore resource. Mining activities will be conducted in the following sequence: • clearing and topsoil removal • overburden removal • limonite ore mining and saprolite ore mining. Top down mining will be used to address potential stability issues. Mining activities will commence from the panel closest to the mine access road on the highest topographical bench. Once a panel is completely mined out, mining will commence in the next panel along the bench. Mining will progress outwards and generally downslope into another bench towards the mine area boundary. Ore will be transported from the mine areas using a long haul fleet which will deliver the ore to the stockpile pad at the ports. Haul distances of approximately 30 km may be required. PAGE 14 Limonite and saprolite will be handled separately from mining activities through to loading of the Ocean Going Vessels (OGVs). The ore will be loaded directly onto barges that will transport ore offshore for transfer to Handymax vessels. To support the mining activities on the Isabel tenements, two ports are proposed along the southwestern coastline in the Thousands Ships Bay: • Port-I1 – located approximately 10 km from the mouth of Takata Bay, will be used for ore handling, general cargo, fuel and personnel. • Port-I2 – adjacent to Lepi Bay. This port will be used for all the same purposes as Port-I1 but will be of a much smaller scale. Other Project infrastructure and facilities to support the mining operations will include an accommodation camp, MIA, haul roads, borrow pits, water storage facility, landfill and utilities for water, sewage, power and telecommunication. An operational workforce of up to 600 persons is expected to be required for the life of the mine. 1.3.7 Decommissioning Activities Rehabilitation of the mine areas will be undertaken progressively throughout the mining operations. Separate stockpiling of the topsoil and overburden will be conducted within the mine area footprint. Topsoil and overburden from active mine areas will be moved to the previously mined bench for infill and grading to match surrounding topography. Rehabilitation crews will work closely and continuously behind mining operations to ensure that rehabilitation works will generally be completed prior to the removal of the mining equipment. Mine and pit access roads will be rehabilitated once the specific area has been mined out. The primary haul roads will be rehabilitated following completion of mining activities. Removal or possible beneficial reuse of these roads will be discussed with the Solomon Islands Government during development of the Project’s Mine Rehabilitation and Closure Plan. All other infrastructure not identified for future use will be removed and the area rehabilitated unless written agreements have been entered into with local communities or the Solomon Islands Government to assume ownership of infrastructure. Additional discussion on rehabilitation activities is provided in Chapter 3. 1.4 The EIS Process This section describes the objectives and methodology of an EIS and the Solomon Islands legislative processes that apply to the Project. 1.4.1 Legislative Process The Solomon Islands Government’s desire to properly and responsibly manage the country’s natural resources and protect the environment in enshrined in its legislation. The Solomon Island’s Environmental Impact Assessment (EIA) process, outlined in The Environment Act, provides a mechanism to ensure integrated environmental considerations are taken into account within the decision making process. The EIA process has two stated aims: • The immediate aim of an EIA is to inform the process of decision making by identifying the potentially significant environmental effects and risks of development proposals. • The long term aim of an EIA is to promote sustainable development by ensuring that development proposals do not undermine critical resource and ecological functions or well being, lifestyle and livelihood of the communities and peoples who depend on them. PAGE 15 Figure 1-6 Solomon Islands EIA Process Steps Source: Ministry of Environment, Conservation and Meteorology 2010 PAGE 16 Figure 1-6 provides an illustration of the procedural steps within the EIA process. The extraction of minerals and mining and the associated project infrastructure is a prescribed development under Schedule 2 of The Environment Act. The Director of the Environment and Conservation Division (ECD) has determined that an EIS is required for this Project. The process followed by SMM Solomon for the Project is identified in Figure 1-6 as the steps coloured blue. Further detail on these steps is provided in Table 1-2, with the Step numbers relating to those displayed in Figure 1-6. Steps 1 to 4, 9 and 10 in Table 1-2 have already been completed. Table 1-2 Solomon Islands EIA Procedures Step Title 1 Proposal Application 2 Screening 3 Scoping 4 EIA Study 9 Submission of EIS and Development Application 10 First EIS Review 11 EIS Public Display and Participation Details of Actions Timeframe (days) The developer lodges a proposal application to the ECD with an application fee of SBD$200. The proposal application should be a formal letter outlining detailed description of the proposed development. ECD decides whether or not EIA is required by screening the proposal application. In the case where an EIA is not required, go to step 13. Conversely if an EIA is required, then go to step 3. ECD, after considering the application within 15 days requires the developer to carry out an EIA study. Scoping is where major impacts of the proposed development are identified and highlighted. ECD will then advise the developer of the type of information required and will decide whether a Public Environmental Report (PER) or an EIS is required of the developer. The developer carries out studies to collect and prepare the environmental information (report) required by ECD. If the developer is preparing a PER go to step 5. Alternatively, if the developer is preparing an EIS, go to step 9. The developer prepares and lodges the EIS and development application together with application fee. If the EIS meets the requirements of the Act, go to step 10. ECD reviews the application to determine the nature of the proposal and whether the EIS complies with the Act. If the EIS does not fulfil the requirements of the Act, ECD may advise the developer to submit further information. If the EIS meets the Act requirements, go to step 11. The ECD will publish the EIS document such that it is made available to the public and convene a meeting that ensures public participation. The notice of the meeting shall be published in the newspaper and posted in public places in the communities, which will be likely affected. Any cost associated Not applicable Stakeholders Involved in Each Step Developer 15 ECD and Developer ECD and Developer Not applicable Developer Not applicable Developer 10 for review, 5 for decision ECD 30 ECD, any person, relevant organisation, provincial government, developer PAGE 17 Step Title 12 Second EIS Review 13 Approval 14 Appeal 1 15 Appeal 2 16 Monitoring Details of Actions with the publication of the Notice or EIS will be borne by the developer. The EIS will be reviewed again by ECD taking into consideration any objections and information received during the public display meeting or after the meeting. ECD may after the review, either: Approve (step 13), or Reject, in which case the developer may appeal to advisory committee (step 14). The development consent is issued to the developer with conditions (form 5 of Environment Regulation 2008). The fees for development consent vary depending on the type of prescribed development. The decision of ECD shall be published in the newspaper having wide circulation in the Solomon Islands or in any other forms of public notices as approved by ECD. The developer or any person(s) who disagrees with any decision of the Director may within 30 days of publication of the decision appeal to the Environment Advisory Committee (EAC) in writing, stating clearly the grounds of appeal. The appellant shall pay an appeal fee. If again any person disagrees with the EAC’s decision, he or she may within 30 days from such decision appeal to the Minister who will make the final decision. ECD or any relevant public authority may at any time, whether before or after a development activity has been completed, monitor or cause to be monitored, all or any of the environmental aspects of the implemented development activity. Timeframe (days) Stakeholders Involved in Each Step 15 ECD 5 ECD 30 Developer/Any person 30 Developer/Any person Not applicable ECD/Other relevant public authority Source: MECM, 2010 1.4.2 Objectives of the EIS The purpose of this EIS is to present the information gathered and assessed during a comprehensive EIA of the Project. The EIS document meets the requirements of the Environment Act (Part III, Article 23) pertaining to the content of an EIS and Regulation 5 of The Environment Regulations pertaining to the requirement for a social impact assessment (SIA). The objectives of the EIS are to: • identify and assess the environmental, social and economic impacts of the Project using best practice methodology and international standards and guidelines as applicable • propose practical measures to prevent, reduce, minimise or mitigate identified adverse impacts • identify highly significant aspects of the biophysical, cultural and social environments which require conservation measures PAGE 18 1.4.3 • inform an environmentally sound and sustainable engineering design process • provide credible information to the Solomon Islands Government for the purposes of making an informed decision on development approval and conditions of approval • propose a plan to monitor and manage project implementation such that the Project is sustainable and optimises resource use. Updates Since Proposal Application and Scoping Report In accordance with the Solomon Islands EIA process, a Proposal Application and Scoping Report were submitted by SMM Solomon to the Solomon Islands Government in December 2010. A number of changes to the Project have been made since this time which are outlined below: • One EIS was originally proposed to address the mining activities proposed within SMM Solomon tenements. Two EIS documents have actually been prepared – one EIS for activities on Choiseul Island (which was submitted to the Solomon Islands Government in April 2012) and the current EIS for activities in Isabel Tenement D and Isabel Tenement E. • The current focus of the Project is the mining of nickel ores only. These ores will be exported for processing as described in detail in Chapter 3. SMM Solomon, at a later date to be determined, intend to investigate in more detail the feasibility of constructing and operating a nickel ore processing plant (HPP) in the Solomon Islands either on Santa Isabel Island or Choiseul Island. The facility would include tailings disposal and port facilities for exporting nickel product, as described in the Proposal Application. An additional EIS will be prepared to describe the potential impacts and proposed mitigations for minimising impacts from the development and operation of a HPP facility in the Solomon Islands and export of product once more detailed engineering information becomes available. • The current mine life assumed for this EIS is 23 years, rather than the 30 year life described in the Proposal Application. With respect to the content of the Scoping Report, which guides the studies undertaken for the impact assessment and the content of the EIS, the following items have not been addressed: 1.4.4 • Sections 2.4.4, 2.4.6 and 2.4.7 requiring information on the process plant, tailings storage facility, and aerodrome. The process plant and tailings storage facility will be covered by a subsequent EIS if this option is pursued in the future by SMM Solomon. • The requirement for bathymetric surveys in the proposed port areas in Section 2.5.11. The depth in Takata Bay and Lepi Bay where the preferred port sites are located and Ortega Channel was considered sufficient to allow the proposed barges and OGVs to manoeuvre. EIS Methodology The methodology described, in conjunction with the Solomon Islands EIA process aims to meet the internationally adopted principles of impact assessment as summarised below (IAIA 1999): • Purposive – the process should inform decision making and result in appropriate levels of environmental protection and community well-being. • Rigorous – the process should apply “best practicable” science, employing methodologies and techniques appropriate to address the problems being investigated. • Practical – the process should result in information and outputs which assist with problem solving and are acceptable to and able to be implemented by proponents. • Relevant – the process should provide sufficient, reliable and usable information for development planning and decision making. PAGE 19 • Cost-effective – the process should achieve the objectives of EIA within the limits of available information, time, resources and methodology. • Efficient – the process should impose the minimum cost burdens in terms of time and finance on proponents and participants consistent with meeting accepted requirements and objectives of EIA. • Focused – the process should concentrate on significant environmental effects and key issues (i.e. the matters that need to be taken into account in making decisions). • Adaptive – the process should be adjusted to the realities, issues and circumstances of the proposals under review without compromising the integrity of the process, and be iterative, incorporating lessons learned throughout the proposal's life cycle. • Participative – the process should provide appropriate opportunities to inform and involve the interested and affected communities, and their inputs and concerns should be addressed explicitly in the documentation and decision making. • Interdisciplinary – the process should ensure that the appropriate techniques and experts in the relevant bio-physical and socio-economic disciplines are employed, including use of traditional knowledge as relevant. • Credible – the process should be carried out with professionalism, rigor, fairness, objectivity, impartiality and balance, and be subject to independent checks and verification. • Integrated – the process should address the interrelationships of social, economic and biophysical aspects. • Transparent – the process should have clear, easily understood requirements for EIA content; ensure public access to information; identify the factors that are to be taken into account in decision making; and acknowledge limitations and difficulties. • Systematic – the process should result in full consideration of all relevant information on the affected environment, of proposed alternatives and their impacts, and of the measures necessary to monitor and investigate residual effects. Where possible, scientifically valid data were collected to develop an understanding of the Project’s area of influence. Potential impacts were identified on the basis of this baseline data and the proposed Project activities and facilities, and an assessment of their significance made. Mitigation measures that were practical and achievable were formulated with the aim of reducing the severity or significance of the impacts. Finally, an evaluation of the significance of the impacts after the mitigation measures were implemented was made. This methodology used to prepare the EIS is described in more detail below. 1.4.4.1 Baseline Study and Data Collection The Solomon Islands Project – Environment and Community Baseline Study Report (Hatch 2011) provided a description of the existing environmental and community conditions on Santa Isabel Island in the area of, and surrounding, Project. Review of existing literature, and relevant regional and national publications were conducted to ensure existing information was captured. Site visits, field surveys, sample collection and consultation with local communities was carried out for both the Baseline Study and the EIS. These studies are documented in the Impact Assessment Reports and provided in the Attachments to the EIS. PAGE 20 The studies undertaken were subject to limitations and exclusions which are outlined in detail in the respective reports. These exclusions and limitations relate to the challenges of data gathering associated with remotes sites, breakdown in communication processes, tribal conflicts and changes to the Project’s proposed activities. 1.4.4.2 Identification of Impacts and Assessment of Their Significance The objective of the assessment of impacts is to identify and assess the significance of impacts that may arise as a result of the proposed project. There is no universally applicable methodology for assessing impacts within an EIA process. The methodology used for this EIS is based on international best practice. The process of assessing the impacts of the Project involved the following four steps: • Identification of potential impacts. • Prediction of the nature, magnitude, extent, duration and likelihood of potentially significant impacts occurring. • Assessment of impacts to determine a consequence rating. • Evaluation of the significance of the impact by combining consequence and probability. Step 1 - Identification of Impacts The potential impacts associated with each facility of the Project were identified by specialists and the EIS team. These impacts were also derived from the baseline studies undertaken for some of the Project areas. The impact assessment includes all phases of the development including construction, operation and decommissioning of the facilities. Step 2 - Impact Prediction Impact prediction involved assessing each of the impacts identified according to the criteria and rating scales outlined in Table 1-3. In all cases, the assignment of a rating is done based on past experience and the professional judgement of the specialists as well as thorough desktop research and site visits. The intensity criterion was determined by the collective consideration of cumulative impacts, reversibility of impacts and irreplaceable resources. Cumulative impacts are regarded in terms of the capacity of the environmental or social resources within the geographic area to respond to change and withstand further stress. Reversibility is considered to be the ability of the impacted environment to return to its pre-impacted state once the cause of the impact has been removed. Irreplaceable resources are defined as a resource for which no reasonable substitute exists such as species listed on the International Union for Conservation of Nature (IUCN) Red List of Threatened Species and their habitat requirements. PAGE 21 Table 1-3 Impact Assessment Criteria and Rating Criteria Status Extent (the spatial limit of the impact) Duration (the predicted lifetime of the impact) Rating Scales • • • • • • • • • • Intensity (the severity of the impact) • • • Probability (the likelihood of the impact occurring) • • • • Confidence level (the specialist’s degree of confidence in the predictions and/or the information on which it is based) • • • Positive Negative Neutral Local (site-specific and/or immediate surrounding areas) Regional (Province) National (Country) Short term (0 to 5 years) Medium term (6 to 15 years) Long term (16 to 30 years) - where the impact will cease after the operational life of the activity either because of natural processes or by human intervention Permanent – where the impact will alter the social, cultural or natural environment forever Low - where the impact affects the environment in such a way that natural, cultural and social functions and processes are minimally affected Medium - where the affected environment is altered but natural, cultural and social functions and processes continue albeit in a modified way; and valued, important, sensitive or vulnerable systems or communities are negatively affected High - where natural, cultural or social functions and processes are altered to the extent that it will temporarily or permanently cease; and valued, important, sensitive or vulnerable systems or communities are substantially affected Improbable – where the possibility of the impact occurring is very low Probable – where there is a good possibility (<50% chance) that the impact will occur Highly probable – where it is most likely (50-90% chance) that the impact will occur Definite – where the impact will occur regardless of any prevention measures (>90% chance of occurring) Low Medium High Step 3 - Impact Assessment Once the impacts were predicted in terms of the criteria in Table 1-3, a consequence rating was applied according to the convention in Table 1-4. The consequence of the potential impacts was determined according to the predicted extent, duration and intensity of the impacts. PAGE 22 Table 1-4 Convention for Assigning a Consequence Rating Consequence Rating High consequence • • • • • • • • • Medium consequence • • • • • • • • Low consequence • • • • • • • • Intensity, Extent and Duration Ratings High intensity at a regional level and endure in the long term or is permanent High intensity at a national level and endure in the medium term Medium intensity at a national level and endure in the long term or is permanent High intensity at a regional level and endure in the medium term High intensity at a national level and endure in the short term Medium intensity at a national level and endure in the medium term Low intensity at a national level and endure in the long term or is permanent High intensity at a local level and endure in the long term or is permanent Medium intensity at a regional level and endure in the long term or is permanent High intensity at a local level and endure in the medium term Medium intensity at a regional level and endure in the medium term High intensity at a regional level and endure in the short term Medium intensity at a national level and endure in the short term Medium intensity at a local level and endure in the medium term Medium intensity at a local level and endure in the long term or is permanent Low intensity at a national level and endure in the medium term Low intensity at a regional level and endure in the long term or is permanent Low intensity at a regional level and endure in the medium term Low intensity at a national level and endure in the short term High intensity at a local level and endure in the short term Medium intensity at a regional level and endure in the short term Low intensity at a local level and endure in the long term or is permanent Low intensity at a local level and endure in the medium term Low intensity at a regional level and endure in the short term • Low to medium intensity at a local level and endure in the short term This assessment was done initially for the scenario where no mitigation measures are implemented. Mitigation measures for each impact were then identified according to the mitigation hierarchy described below, and the assessment repeated in order to determine the significance of the residual impacts (the impact remaining after the mitigation measure has been implemented). Step 4 - Impact Significance The overall significance of the impacts was assigned based on the result of a combination of the consequence rating and the probability rating, as set out in Table 1-5. PAGE 23 Table 1-5 Convention for Assigning a Significance Rating Significance Rating High significance Medium significance Low significance Consequence x Probability • • • • • • • • • • • • High x Definite High x Highly Probable High x Probable Medium x Definite High x Improbable Medium x Highly Probable Medium x Probable Low x Definite Medium x Improbable Low x Highly Probable Low x Probable Low x Improbable Figure 1-7 is a graphical representation of the information in Table 1-5. Figure 1-7 Impact Significance Matrix 1.4.4.3 Mitigation of Significant Impacts The mitigation hierarchy (Figure 1-8) was utilised by each specialist and is best practice guidance for understanding the scope of mitigation measures. The mitigation hierarchy emphasises the principle of preventing environmental impacts from happening in the first instance and if this is not possible then limiting the impacts to an acceptable level (ICMM 2006). PAGE 24 Figure 1-8 The Mitigation Hierarchy Source: Based on ICMM 2006 and BBOP 2009 Further information on each level of the hierarchy is provided in Table 1-6. Table 1-6 Levels of the Mitigation Hierarchy 1.4.4.4 PREVENT/AVOID Avoid impacts by modifying a proposed mine operation in order to prevent or limit a possible impact. The highest priority is always preventing environmental impacts. REDUCE/MINIMISE Minimise impacts, to an acceptable low level, by implementing decisions or activities that are designed to reduce the undesirable impacts of a proposed activity. RESTORE/RECTIFY Rectify impacts, to an acceptable low level, by rehabilitating or restoring the affected environment, following exposure to impacts that cannot be completely avoided or minimised. OFFSET/COMPENSATE Offset impacts by replacing or providing substitute resources or environments. The lowest priority in the hierarchy is compensatory measures. Residual Impacts As previously discussed, the assessment steps, using Table 1-3, Table 1-4, and Table 1-5, were repeated for the residual impacts, assuming the proposed mitigation measures were implemented. A final residual impact significance was then determined. The results of the assessment of the significance of the residual impacts may be linked to decisionmaking by authorities in the following manner: • Low significance – should not have an influence on the decision to proceed with the proposed project, provided that recommended mitigation measures to mitigate impacts are implemented. • Medium significance – should influence the decision to proceed with the proposed project, taking into account recommended measures to mitigate impacts are implemented. • High significance – should strongly influence the decision to proceed with the proposed project regardless of mitigation measures. PAGE 25 1.4.5 EIS Content Requirements and Reference within EIS To assist in the review of the EIS by the Solomon Islands Government and other stakeholders, the EIS legislative requirements are listed in Table 1-7 together with the location (section reference) where the information addressing the requirement is provided within the EIS document. Table 1-7 EIS Requirements and Document Reference EIS Requirement Article 23 The Environment Act 1998 (a) Contain a full description of the objectives of the prescribed development (b) Analyse the need for the prescribed development (c) Indicate the consequences of not implementing or carrying out the prescribed development (d) Include adequate information and technical data to allow assessment of the impact of the prescribed development on the environment (e) Examine any reasonable alternatives to the prescribed development (including alternative sites) (f) Describe the environment that is or is likely to be affected by the prescribed development and by any reasonable alternatives to it (g) Assess the actual or potential impact on the environment of the prescribed development and of any reasonable alternatives to it including primary, secondary, short-term, long-term, adverse and beneficial impacts (h) Outline the reasons for the choice of the prescribed development (i) Estimate the time period of any expected impacts (j) Describe the geographic boundaries of the impacts (k) State the methods of predicting and assessing each impact from the construction, operational and where relevant, the decommissioning phase of an implemented development and for each alternative presented (l) Justify the prescribed development in terms of environmental, economic, culture and social consideration (m) Identify and analyse all likely impacts or consequences of implementing the prescribed development including implications for the use and conservation of energy (n) Describe measures to prevent or reduce significant adverse impacts and enhance beneficial effects and an account of their likely success with estimated costs as appropriate (o) Describe residual impacts which cannot be mitigated or can only be mitigated partially (p) Describe proposed monitoring and reporting schemes with estimated costs as appropriate (q) Describe and assess the estimated cost-effectiveness of any safeguards or standards for the protection of the environment to be adopted or applied including its implementation, monitoring and reporting (r) Give an account of the impact on the environment of any series or programme of similar development (whether implemented or not) over a period of time (s) Give any sources and references of information relied on and outline any consultations with any persons made during the preparation of the report (t) Include a site survey report concerning National Heritage items or traditional artefacts as specified by the Director (of ECD) (u) Address any further matters as the Director specifies (v) Give a clear and concise summary printed on a separate page Regulation 5 of The Environment Regulations 2008 (a) Include the social impact on the surrounding communities where the prescribed development is to be located EIS Document Reference Chapter 1, Chapter 2, Chapter 3 Chapter 2 Chapter 2 Chapter 4, Impact Assessment Reports Chapter 2 Chapter 4, Impact Assessment Reports Chapter 4, Impact Assessment Reports Chapter 1, Chapter 2, Chapter 3 Chapter 4, Impact Assessment Reports Chapter 4, Impact Assessment Reports Chapter 1, Chapter 4, Impact Assessment Reports Chapter 2, Chapter 4, Impact Assessment Reports Chapter 4, Impact Assessment Reports Chapter 4, Chapter 5, Impact Assessment Reports Chapter 4, Impact Assessment Reports Chapter 4, Impact Assessment Reports Chapter 4, Chapter 5, Impact Assessment Reports Impact Assessment Report - Cumulative Impacts Impact Assessment Reports, Report for Public Consultation Impact Assessment Report - Cultural Heritage Not applicable Executive Summary Impact Assessment Report - Social and Community PAGE 26 EIS Requirement (b) Ensure public participation in the prescribed development (c) Spell out employment opportunities for Solomon Islanders and in the case where the prescribed development is to undertaken in a rural area, employment opportunities for members of the surrounding communities (d) Provide demographic impact assessment (e) Provide a health impact assessment (f) Provide a gender impact assessment (g) Provide a noise impact assessment (h) State whether any of the above would have short term or long term harmful effects on the environment. Form 1 Schedule 2 (Regulation 28) of the The Environment Regulations 2008 1. General Information - The background of the prescribed development should include: (a) the name of the proposed prescribed development (b) the full name and postal address of the designated proponent (c) a clear outline of the object of the prescribed development (d) the location of the proposed prescribed development (e) the background to the development of the proposed prescribed development (f) how the proposed prescribed development relates to other existing developments (which the applicant should reasonably be aware) or which have been approved in the same location (g) the current status of the prescribed development (h) the consequence of not proceeding with the prescribed development 2. Description – A description of the prescribed development, including: (a) all the components of the proposed prescribed development (b) the precise location of any works to be undertaken, structures to be built or elements of the proposed prescribed development that may have relevant impacts (c) how the works are to be undertaken and design parameters for those aspects of the structures or elements of the proposed prescribed development that may have relevant impacts (d) relevant impacts of the proposed development (e) proposed safeguards and mitigation measures to deal with relevant impacts of the proposed prescribed development (f) any other requirements for approval or conditions that apply, or that the applicant reasonably believes are likely to apply to the proposed prescribed development (g) to the extent reasonably practicable, any feasible alternatives to the action including: i. if relevant, the alternative of not approving the application ii. a comparative description of the impacts that alternative development might have on the environment iii. matters protected by controlling provisions for the proposed prescribed development to make clear why any alternative development is preferred to another EIS Document Reference Report for Public Consultation Impact Assessment Report - Workforce Influx Impact Assessment Report - Social and Community Impact Assessment Report - Public Health Impact Assessment Report - Social and Community Impact Assessment Report - Noise Chapter 4, Impact Assessment Reports as noted above Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 2 Chapter 2, Impact Assessment Report Cumulative Impacts Chapter 2 Chapter 2 Chapter 3 Chapter 3 Chapter 3 Chapter 4, Impact Assessment Reports Chapter 4, Chapter 5 Chapter 1, Chapter 5 Chapter 2 PAGE 27 EIS Requirement (h) any consultation about the proposed prescribed development, including i. any consultation that has already taken place ii. proposed consultation about any relevant impacts of the proposed prescribed development iii. if there has been consultation about the proposed prescribed development, any documented response to, or result of such consultation iv. identification of affected parties, including a statement mentioned any communities that may be affected and a summary of their views. 3. Environment likely to be affected by the proposed prescribed development (a) a description of the affected area that refers, as appropriate, to the relevant map (b) a description of important features of the proposed prescribed development and the affected area, including (if relevant to the area in which the proposed prescribed development is to be located) information about i. soil and vegetation characteristics ii. water flows including rivers, creeks and impoundments iii. the presence of outstanding natural features, including caves iv. gradient v. any building or other infrastructure vi. any marine areas vii. kind of fauna in the area viii. the current state of the environment in the area, including information about the extent of erosion, whether the area is infested with weeds or feral animals and whether the area is covered by native vegetation or crops (c) whether the area in the proposed prescribed development is to be located in under customary, leasehold or other tenure. (d) Current or proposed land uses for the project area 4. Relevant impacts – Information given under paragraph 2(d) must include: (a) a description of the relevant impact of the proposed prescribed development (b) a detailed assessment of the nature and extent of the likely short term and long term relevant impacts (c) a statement whether any relevant impacts are likely to be known, unpredictable or irreversible (d) analysis of the significance of the relevant impacts (e) any technical data and other information used or needed to make a detailed assessment of the relevant impacts 5. Proposed safeguards and mitigation measures – Information given under paragraph 2(e) must include: (a) a description, an assessment of the expected or predicted effectiveness of, the mitigation measures (b) any statutory or policy basis for the mitigation measures (c) the costs of the mitigation measures (d) an outline of an environmental management plan that sets out a framework for continuing management, mitigation and monitoring programs for the relevant impacts of the proposed prescribed development, including any provision for independent environmental audit. 6. Other approvals and conditions – Information given under paragraph 2(f) must include: (e) detail of any Honiara City or Provincial Government planning scheme, or plan under any Honiara City or Provincial Government planning system that deals with the proposed prescribed development, including i. what environment assessment of the proposed prescribed development has been, or is being carried out under the scheme, plan or policy, or ii. how the scheme provides for the prevention, minimization and management of any relevant impacts. EIS Document Reference Report for Public Consultation Chapter 4, Impact Assessment Reports Impact Assessment Reports Impact Assessment Report - Land Use and Tenure Impact Assessment Report - Land Use and Tenure Chapter 4, Impact Assessment Reports Chapter 4, Chapter 5, Impact Assessment Reports Chapter 1, Chapter 5 PAGE 28 EIS Requirement a description of any approval that has been obtained from a Provincial Government or relevant authority (other than an approval under the Act) including any conditions that apply to the proposed prescribed development (g) a statement identifying the additional approval that is required (h) the description of the monitoring, enforcement and review procedures that apply or are proposed to apply to the proposed prescribed development. 7. Information sources – For information given in the draft public environmental report or environmental impact statement, the draft must state: (i) the sources of the information (j) how recent the information is (k) how the reliability of the information was tested and (l) what uncertainties (if any) are in the information. Form 3 Schedule 2 (Regulation 28) of the The Environment Regulations 2008 Guidelines to drafting the Public Environmental report or the Environmental Impact Statement. Modification may be made to this, depending on the nature of the development. (a) Executive Summary (b) Policy, Legal and Administrative Framework (c) Description of the Proposed Project (d) Description of the Baseline Environment (e) Significant Environmental Impacts (f) Analysis of Alternatives (g) Mitigation and Environmental Management Plan (h) Environmental Monitoring Plan (i) Public Consultation EIS Document Reference (f) (j) List of references (k) Appendices 1.4.6 References, Impact Assessment Reports Executive Summary Chapter 1 Chapter 3 Chapter 4 Chapter 4 Chapter 2 Chapter 5 Chapter 5 Chapter 1, Report - Public Consultation References Impact Assessment Reports Submissions and Objections to the EIS Copies of the EIS are provided to enable any concerned person or persons to view the report and obtain information on the Project. As agreed with MECDM copies of this EIS document will be publicly available in a number of locations. A public meeting is a requirement of the Solomon Islands legislation and is organised by the Director of the ECD. The purpose of the meeting as per Regulation 12 of The Environment Regulations is to: • explain the contents, findings and recommendations of the EIS • allow oral or written representation to the Director of the ECD • allow any objections to the Project to be received by the Director. As agreed with MECDM copies of this EIS document will be publicly available in a number of locations prior to holding a public meeting. All proceedings of the meeting will be recorded. Any representations may be submitted to the Director between public release of the EIS and within 14 days after the date of the meeting. All representations may be sent to the following address: PAGE 29 Director Environment and Conservation Division Ministry of Environment, Climate Change, Disaster Management and Meteorology PO Box G26 Honiara Solomon Islands In accordance with Environment Act (Article 24(2)), any public authority or person whose interests are likely to be affected by the Project may, within 30 days from the date of the notice advising of the publication of the EIS and the meeting, make written objections to the Director of the ECD. Any objection must: 1.5 • be in writing • state the interest that the person making the objection claims to have in relation to the Project, with such interest not being limited to economic or property interest • state clearly the nature of the objection that is being made to the Project • provide sufficient details of the grounds upon which the objection is based. Public Consultation This section provides a summary of the public consultation undertaken as part of the EIA over an 18 month period in 2010-11. 1.5.1 Purpose The purpose of SMM Solomon’s public consultation and disclosure activities during the EIS phase was to: • Gain Project approval – The Solomon Islands Government has legislative requirements tied to project approvals which require stakeholder consultation with Government regulators, landowners and Project-affected people. Public consultation and disclosure is a legislated requirement for any project in the Solomon Islands which is assessed as significant and requiring an EIS. SMM Solomon has strived to meet these requirements. • Minimise risks – Stakeholder consultation is a pre-requisite for risk management. A well planned and implemented public consultation and disclosure process assists to facilitate a greater understanding of the Project and build trust with Project-affected people and other influential stakeholders. In turn, SMM Solomon considers that this will improve Project decision making outcomes. • Maximise benefits and opportunities – Ongoing and inclusive stakeholder consultation facilitates unique and creative solutions to project risks and issues, with potential win-win outcomes for all stakeholders. A successful project is a project where everyone benefits. To fully understand what is important and what is considered beneficial to Project-affected people and other key stakeholders, it is important to implement consultation processes which facilitate dialogue. • Ensure ethical conduct and reputation – A transparent, targeted, culturally appropriate and inclusive stakeholder engagement strategy, is more likely to be effective in ensuring that Projectaffected people are appropriately consulted, that their voices are heard and that they have a role in project decisions that affect them. A well conducted stakeholder engagement program will enhance a company’s reputation both locally and internationally. Poorly conducted engagement can have serious negative effects on reputation and perception of a company’s record of good standing. PAGE 30 • 1.5.2 Align with International Best Practice Standards for Social Performance – SMM Solomon has committed to working with Project-affected people in accordance with international best practice principles. Public consultation and participation for this Project has been planned and wherever possible implemented in accordance with the following international and industry principles, standards and best practice guidelines: World Bank Safeguard Policies Equator Principles International Finance Corporation (IFC) Performance Standards Principle of free, prior and informed consultation International Labour Organization Convention No. 169 on Indigenous and Tribal Peoples United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) ICMM Sustainable Development Framework ICMM Good Practice Guide for Indigenous People and Mining International Association for Impact Assessment Public Participation International Best Practice Principles. Consultation and Disclosure Planning A ‘Whole of Project’ Stakeholder Engagement Strategy was developed early in the Project to identify the high level principles, standards and requirements that would apply to public consultation and disclosure activities associated with the Project. The Strategy also set the framework for Stakeholder Engagement Planning at each phase of the Project lifecycle from scoping to mine closure. The Strategy requires a Stakeholder Engagement Plan to be reviewed and updated at the beginning of each phase. The EIS consultation and disclosure was developed using a five step process: • stakeholder Identification and Analysis • targeting Affected Communities • development of an EIS Stakeholder Engagement Plan • development of Project Materials to support Consultation • stakeholder consultation. Regional communities, churches and local provincial NGOs were assessed as potentially being the most adversely affected by the Project. Consequently, stakeholder engagement and consultation with these groups was assessed to be a high priority. The preliminary impact analysis also suggested that government agencies, NGOs, business and media could experience an overall positive benefit related to the as a result of the Project. Predicted benefits were associated with economic gain (related to royalties/revenue), project-funded corporate social responsibility initiatives, community development projects and increased economic stimuli. PAGE 31 1.5.3 Location of Consultation Consultations were conducted in various locations in Isabel Province and Guadalcanal Province with Project stakeholders. Project-affected people were generally consulted in larger ‘hub’ villages with residents from smaller nearby villages travelling short distances to their nearest hub village to participate in EIS consultation. The Report - Public Consultation appended to the EIS provides maps showing the location of consultation activities. Additional consultations were also conducted in Buala, the capital of Isabel Province and other areas of socio-economic activity near the Project Tenements on Santa Isabel Island. Consultations included meetings with the Premier and other provincial government administrators, provincial police officers, health professionals, church leaders and community representatives including local teachers, farmers and business operators. Additional consultations were also conducted in Honiara with landowners and Project-affected people living away from home; employment, education and training providers; relevant national government ministries; tourism and accommodation providers and business organisations. 1.5.4 Timing Public consultation activities were planned and timed in accordance with the following stages of the EIS for the Project: 1.5.5 • May – June 2010, EIS Scoping - During this period consultation occurred with key government stakeholders and SMM Solomon personnel to scope the process and deliverables required for the EIS. • June – October 2010, Environment and Community Baseline Studies – Involved visits to potentially Project-affected villages to explain the Project, the requirement for an EIS and the studies to be undertaken during the EIS phase. Permission was sought to conduct EIS Baseline fieldwork and community consultation. • August 2011 – April 2012, Environmental Impact Assessment – Involved visits to villages potentially affected by the Project to explain the EIS process and gain approval to conduct fieldwork and community consultation. Following this, consultation with potentially Projectaffected communities was conducted to collect issues and concerns about potential project impacts and possible mitigation strategies. Additional consultations with previously unvisited communities, businesses and agricultural areas were also conducted to collect additional baseline information. • June 2012, Publication of the EIS – During this period the EIS document will be made publically available for comment in accordance with the Solomon Islands EIS guidelines and legislative requirements. Consultation Workshops and Meetings SMM Solomon and their consultants met with a range of elected National Government representatives, peak bodies representing landowner groups, key non-government organisations, land owners and Project-affected people including women, youth and the elderly. During the period 2010-11, six site visits were conducted to Isabel Province. The following meetings and workshops were held during these visits: • Twenty-one Project-affected villages were visited and profiled. • Nine EIA disclosure meetings were held in nine central hub villages targeting customary land owners and numerous Project-affected people from both the hub village and other nearby communities. PAGE 32 • • Eighteen EIA consultation workshops were conducted by the Project Team. Of these: Nine workshops were held with customary land owners and Project-affected people in central hub villages. Workshops were attended by local hub residents and others residing in surrounding areas. Three workshops were held with approximately 500 students from three secondary high schools situated near the Project area. Two workshops were held in Honiara with land owners and Project-affected people living away from home. One workshop was held in Honiara with employment, education and training providers One workshop was held in Honiara with local business providers operating on Santa Isabel Island. Two workshops were conducted by AECOM with customary land owners and Projectaffected people from the villages of Midoru and Lepi. The Project team also conducted: Nineteen meetings with relevant national government ministries in Honiara. Two meetings with representatives from the Isabel Provincial Government in Buala, Isabel Province. Sixteen meetings with relevant NGOs or aid agencies. Two meetings with education and vocational training providers in Honiara. Six meetings with tourism or accommodation providers in Isabel Province and Honiara. Meetings with 17 businesses organisations in Honiara. Interviews with local farmers and a coconut plantation owner in the Kolotubi area (Kapito River). A full list of stakeholders consulted and the outcomes of consultation workshops is presented in the Report - Public Consultation provided in the attachments to the EIS. 1.6 Project Approvals Solomon Islands legislation requires a number of approvals for the development, operation and decommissioning phases of the Project. A register of the approvals that must be obtained is provided in Table 1-8. It is expected that this list of approvals will need to be updated regularly, as a more complete understanding of the required approvals is attained. PAGE 33 Table 1-8 Statutory Approvals Register Statutory Approval Administering Agency Application Requirements or Process Mining Lease Application MECDM The proposal application is a formal letter containing a detailed description of the proposed development and a Declaration of Consent from MECDM. The application also requires supporting documentation relating to the proponent’s ownership, structure and financial status; detail of the ore deposits to be mined, a technological report on mining and treatment possibilities; an environmental assessment; a Mining Plan; and anticipated investment and returns, employment requirements, and requirement for goods produced in Solomon Islands and for services which may be obtained within Solomon Islands. The EIS is prepared in accordance with the requirements of The Environment Regulations. The Ministry may specify additional requirements for the content of the EIS before using a Declaration of Consent. The EIS will be publicly displayed once completed. The MA negotiation process between the proponent and the government commence once the government receives an official notice of discovery from the proponent and set up a task force committee. This committee and the proponent agree to the specific rights and obligations applicable to the project and included in the MA. A MA details the implementation process of applicable laws and specific terms and conditions (fiscal, operational, social, etc) governing the project. Subject to the Ministry of Mine issuing a “Letter of Intent” at the proponent’s request; summoning and attending meetings between local landowner and operator; and to the landowners agreeing to compensation and setting up a Trust to receive surface access fees and compensation. If disagreements or delays between the parties occur, for expediency purposes, the Mines and Mineral Act provides for the compulsory acquisition by central government. A Mining Lease is granted once the Ministry is satisfied that the Mining Plan provides efficient and beneficial use of resources and adequate environment protection, and the MA and Surface Access Agreements are signed. The terms and conditions of the MA and conditions of lease are negotiated under a MA with the Minister of Mines and Energy and a panel of government representative of various ministries involved in the project (immigration, customs, finances, environment, labour). Signed Surface Access Agreements with landowners must be obtained before a ML is issued (and are separate from the MA). Consultation with the Lands Division of the Ministry of Lands, Survey and Housing is required to facilitate the formal process of land acquisition and registration. The central government led the acquisition of access rights in collaboration with the operator. Once granted, leases are formally registered in the Registrars of Titles. Application should be prepared and submitted in Form 2 of The Environment Regulations. Development application must be accompanied by an EIS report and is subject to a consultation process. Environmental Impact Statement (EIS) MECDM Mining Agreement (MA) Representatives from all concerned ministries for Solomon Islands Government Surface Access Right Local landowners Director of Mine Provincial Secretary Mining Lease (ML) Ministry of Mines and Energy Minerals Board Registrar of Titles Ministry of Lands, Survey and Housing Development Consent MECM Special Site Rights Ministry of Mines and Energy An Application should be submitted in Form 1 of the Mines and Minerals Regulations 1996 in accordance with Article 49 of the Mines and Minerals Act 1990. Road Access License Ministry of Mines and Energy Commissioner of Lands An application should be submitted in accordance with Form 1 of the Mines and Minerals Regulations. PAGE 34 Statutory Approval Administering Agency Building Permit Provincial Government Town and Country Planning Board Department of Infrastructure and Development Building Materials Permit Ministry of Mines and Energy License Authorizing the Felling of Trees Ministry of Forestry Mangrove Destruction Permit Ministry of Fisheries and Marine Resources Provincial Government Air Transport Licensing Authority Airport/Aerodrome license Electrical Installation Approval Solomon Islands Electricity Authority License to Store Petroleum Permanent Secretary of the Ministry of Works and Public Utilities Solomon Islands Electricity Authority License for Use of Electrical Installation Approval for Installation of Emergency / Standby Generators License to Operate an Air Service Application Requirements or Process Application outside customary land must be accompanied by an EIS report and feasibility report. Most of Choiseul and Isabel are customary lands, outside the jurisdiction of the Town and Planning Act 1996, but the same process might apply on land covered by Surface Access Right (SAR). The application is reviewed by various departments and authorities The Department of Infrastructure and Development collates the comments and issues a consolidated response to the proponent. After all concerns are rectified, the proponent then submits the application documentation to the regional Town and Country Planning Board for approval. After the Town and Country Planning Board deliberates on the Project and receives advice from various government departments, a building permit will be issued by the Provincial government. An application should be prepared in accordance with Part VIII of the Mines and Minerals Act and submitted using Form 1 of the Mines and Minerals Regulations 1990. The application must be accompanied by the written consent of the landowners of the area. Consent needs to be obtained to negotiate with the customary landowners from the Commissioner of Forestry. It is necessary to meet with the Provincial Government, area council and registered landowners. An approved written agreement to remove trees from customary land needs to be obtained. Requirements not available. Requirements not available. Upon completion of construction of the electricity supply a notice of completion in the appropriate form must be forwarded by the electrical contractor to the Authority. An Authority Inspector will approve the installation and advise the electrical contractor accordingly. An application should be prepared in accordance with Article 38 of the Petroleum Act 1987. No specific requirements. Solomon Islands Electricity Authority Approval must be obtained prior to commencing installation of the emergency/standby generators. Air Transport Licensing Authority An application should be submitted as per the Civil Aviation Act 2008 (Schedule 1). PAGE 35 Statutory Approval Telecommunications License Administering Agency Application Requirements or Process Ministry of Communication and Aviation Solomon Islands Port Authority There are a number of different types of telecommunications licenses, dependent on the type(s) of telecommunications network to be installed. Communication apparatus must be inspected and approved by an authorised person before the license can be issued. To certify, pilot candidates must have 15 years experience in Solomon Islands waters as a Ships Master. Candidates must undergo specific pilot training. License for Interfering with a Wreck or War Relic Ministry of Culture and Tourism No specific requirements. However, on Santa Isabel Island consent is required from the Provincial Government. Port Registration as ’Declared Port’ Department of Infrastructure and Development, National Cabinet Commissioner of Police An application is required to be submitted to the Department of Infrastructure and Development. Declared Port status is ratified by the National Cabinet. User’s License (Explosives) Director of Public Works An applicant must be adequately qualified to use explosives or willing to employ a qualified person. License for a Dealer’s or User’s Explosives Magazine Licenser Officer A user’s license is required if the total quantity of explosives to be stored is less than 51 kg. A dealer’s license is required if the total quantity of explosives to be stored is greater than 51 kg. License for Temporary Storage of Explosives Licenser Officer Permit to Carry Out Electrical Work Solomon Islands Electricity Authority The license can only be issued if the explosives: • Will be stored for less than six months • Weigh less than 91 kg in total. A permit may only be issued to a person holding a Grade A electrician's license, or to an electrical contractor holding a license. Work Permit Ministry of Commerce, Industries, Labour and Immigration Permit to Enter and Reside in the Solomon Islands Ministry of Commerce, Industries, Labour and Immigration Pilot Certification Dealer’s License (Explosives) An applicant must have adequate facilities for the storage of explosives in an approved storeroom. Dealing and storage is subject to license, however the documents are not available. An individual application for each foreign worker should be submitted in Form 1 of Schedule 1 of the Labour Act 1996. The application must provide evidence that: • no trained Solomon Islander is available to fill the position • the foreign employee is qualified, experienced and able to train Solomon Islanders to undertake the task • provision has been made for localising the position through suitable training, so that a Solomon Islander may eventually fill the position (included in Mining Plan or MA). An individual application for each foreign worker should be submitted in Form 1 of the Immigration Act 1996 with a cover letter. The application should be accompanied by: • a Police Certificate issued by the Police Department in the applicant’s country of origin • a document guaranteeing that any future repatriation costs and expenses shall be borne by the applicant or his employer. The applicant must have adequate financial means of support. A work permit must be obtained. PAGE 36 Statutory Approval Administering Agency Exemption from Customs Duty Waste Discharge License Controller of Customs and Excise, Ministry of finance and Treasury MECDM Specific Authority for Exporting Goods Central Bank of Solomon Islands Export License Ministry of Mines and Minerals Application Requirements or Process The application process is stipulated in the Customs and Excise Act 1996 The MA must be in place including goods and services subject to the exemption, the scope and duration. Application should be submitted in Form 6 and consistent with the requirements of Part 5 of the Environment Regulations 2008. Members of the public and public authorities are invited to comment on the application. An EIS report must be submitted to the Director of Environment and Conservation. The Director will arrange public meetings to disseminate the findings of the EIS. Note that there are no defined standards nor policies for waste treatment and International Finance Corporation standards will apply by default. This authority is only required if the requirements of Regulation 13 of the Exchange Control Act 1996 cannot be met. Two options exist: • The MA itself authorises general exports and the overall consent is part of the ML, or • A twofold requirement to firstly obtain a Mineral Export Permit which is valid for three years and subsequently, a Consignment Permit for each shipment. PAGE 37
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