52
4.8. The Social and Economic Environment of Roşia Montană

4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

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Page 1: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

4.8. The Social and Economic Environment of

Roşia Montană

Page 2: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social and Economic Environment of Roşia Montană

Table of Contents

- ii -

Table of Contents 1 Potential Impacts – Overview ..................................................................................... 4 2 Methods to Assess and Predict the Impacts on the Socio-Economic Environment ... 11

2.1 Establishment of the Baseline Situation............................................................. 11 2.2 Prediction and Assessment of Impacts – Design of Mitigations ......................... 12

3 Legislative Context ................................................................................................... 13 4 Overview of the Baseline Socio-Economic Conditions.............................................. 15

4.1 General Outlines ............................................................................................... 15 4.2 Geographical and Administrative Situation ........................................................ 15 4.3 Characteristics of the population in the impact zone.......................................... 16

History...................................................................................................................... 16 Ethnic characteristics and Religion ........................................................................... 16 Demographical profile............................................................................................... 16

4.4 Local economical conditions and labour market ................................................ 21 Employment and unemployment dynamics .............................................................. 21 Roşia Montană Employment Dynamic...................................................................... 22 Economic activities................................................................................................... 23

Industry ............................................................................................................. 23 Agriculture ......................................................................................................... 25 Tourism ............................................................................................................. 26 Investments....................................................................................................... 26

4.5 Living conditions in the area .............................................................................. 27 Home ownership ...................................................................................................... 27 Dwellings – living conditions..................................................................................... 28

4.6 Health status ..................................................................................................... 29 Information on the disease rate at the inhabitants’ level ........................................... 29 Health risks in Roşia Montană .................................................................................. 30

4.7 Civil Society....................................................................................................... 31 5 Institutional Background ........................................................................................... 33

5.1 Local and County Government .......................................................................... 33 5.2 Regional Development Agency ......................................................................... 33

6 Potential Impacts...................................................................................................... 35 6.1 Identification of the Social Impacts Area............................................................ 35

Direct Impacts .......................................................................................................... 35 Indirect Impacts........................................................................................................ 35 Project Physical Footprint......................................................................................... 35 Project Social Impacts Area...................................................................................... 35

6.2 Identification and Description of Potential Socio-Economic Impacts during Construction, Operation and Closure........................................................................ 36

7 Mitigation and Monitoring Measures, Implementation Responsibilities ..................... 40

Page 3: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social and Economic Environment of Roşia Montană

Table of Contents

- iii -

List of Tables Table 1-1. Summary of Socio-Economic-Related Impacts ................................................ 5 Table 2-1. Socio-Economic Baseline Surveys................................................................. 11 Table 4-1. Ethnic distribution of population ..................................................................... 16 Table 4-2. Description of population types in the Community.......................................... 21 Table 4-3. Percentage of active/non-active population in the Community ....................... 21 Table 4-4. Value of procurement to Roşia Montană Gold Corporation ............................ 24 Table 4-5. Main investment disincentives concerning Roşia Montană............................. 26 Table 4-6. Health risks in Roşia Montană ....................................................................... 30 Table 6-1. Population Size in the Social Impacts Area.................................................... 35 Table 6-2. Potential Socio-Economic Impacts during the construction, operation and

closure........................................................................................................... 36 Table 7-1. Mitigation and Monitoring Measures, & Responsibilities................................. 41 List of Figures Figure 4.1. Community population dynamic ..................................................................... 17 Figure 4.2. Community population dynamic and trends ................................................... 18 Figure 4.3. Roşia Montană age pyramid .......................................................................... 19 Figure 4.4. Marital status of household heads.................................................................. 19 Figure 4.5. Household by number of members ................................................................ 19 Figure 4.6. Education trends in the Community ............................................................... 20 Figure 4.7. Education level by age in Roşia Montană ................................................... 20 Figure 4.8. Community employment dynamic .................................................................. 22 Figure 4.9. Roşia Montană definition of population and trends......................................... 23 Figure 4.10. Roşia Montană income source ................................................................... 23 Figure 4.11. Procurement dynamics of Roşia Montană Gold Corporation in the Community

……………………………………………………………...………………………24 Figure 4.12. Agricultural characteristics of Roşia Montană ............................................. 25 Figure 4.13. Community home ownership trends ........................................................... 27 Figure 4.14. Community living conditions in homes........................................................ 28 Figure 4.15. Incidence of Ischaemic heart disease in the Community ............................ 29

Page 4: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social and Economic Environment of Roşia Montană

Section 1: Potential Impacts – Overview

Page 4 of 52

1 Potential Impacts – Overview The following chapter provides an overview of potential impacts, proposed mitigations, and related management plans concerning socio-economic aspects associated with the Roşia Montană Project (RMP) currently being developed by SC Roşia Montană Gold Corporation SA (RMGC). Socio-economic impacts resulting from the project can be divided into two components: 1. Direct impacts. Socio-economic impacts related with land acquisition (physical and

economic displacement) and are addressed in the Resettlement and Relocation Action Plan (RRAP).

2. Indirect impacts. Socio-economic and environmental impacts not related with land

acquisition and are addressed in the Community Sustainable Development Programme. The Community Sustainable Development Programme (CSDP) includes measures which will help strengthen and develop local communities’ socio-economic circumstances and reduce or mitigate potential negative impacts from changes to the current social and economic condition. Socio-economic impacts and effects will be considered and addressed taking into account the specific circumstances and context of Roşia Montană and its regions. As with all aspects of the Environmental Impact Assessment (EIA), the socio-economic aspects will be developed and managed in compliance with Romanian legislation, European Union (EU) legislation, the Equator principles, and international best practice. These are described in detail in the CSDP. The following table provides a brief summary of potential impacts, proposed mitigations, and related management plans for the construction, operation and closure phases.

Page 5: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 1:

Pot

entia

l Im

pact

s –

Ove

rvie

w

Pag

e 5

of 5

2

Tabl

e 1-

1.

Sum

mar

y of

Soc

io-E

cono

mic

-Rel

ated

Impa

cts

Topi

c #

Act

ion

/ act

ivity

Po

tent

ial i

mpa

ct

Prev

entio

n / M

itiga

tion

mea

sure

s

App

licab

le

man

agem

ent p

lans

1 Ac

quis

ition

of l

and

for

purp

oses

of m

inin

g op

erat

ions

Phys

ical

and

eco

nom

ic d

ispl

acem

ent o

f pe

ople

: the

acq

uisi

tion

of a

bout

1,6

00

hect

ares

of l

and,

and

dis

plac

emen

t of a

bout

97

0 ho

useh

olds

, mos

tly fr

om th

e lo

calit

ies

of R

oşia

Mon

tană

(circ

a 57

7 ho

useh

olds

an

d 13

6 ap

artm

ents

), C

orna

(ca.

150

ho

useh

olds

), an

d G

ura

Cor

neii

(ca.

111

ho

useh

olds

).

Land

and

imm

ovea

ble

asse

ts a

cqui

red

from

ow

ners

by

RM

GC

on

the

basi

s of

“willi

ng s

elle

r – w

illing

buy

er” t

rans

actio

ns.

Dis

plac

ed h

ouse

hold

s ar

e el

igib

le to

one

of t

he fo

llow

ing

two

optio

ns:

Res

ettle

men

t, in

clud

ing

allo

catio

n of

a re

side

ntia

l plo

t and

re

cons

truct

ion

of re

side

ntia

l hou

ses

in re

settl

emen

t site

s de

velo

ped

by

RM

GC

in P

iatra

Alb

a, R

oşia

Mon

tană

com

una

- or i

n Al

ba Iu

lia, a

nd

othe

r ass

ista

nce

as d

etai

led

in th

e R

RAP

, R

eloc

atio

n, w

here

by th

e di

spla

ced

hous

ehol

d pu

rcha

ses

thei

r new

re

side

nce

them

selv

es, u

sing

the

com

pens

atio

n of

the

affe

cted

ass

ets

at

full

repl

acem

ent v

alue

. Rel

ocat

ion

also

incl

udes

oth

er a

ssis

tanc

e as

de

taile

d in

the

RR

AP.

Diff

eren

t liv

elih

ood

rest

orat

ion

mea

sure

s ar

e pu

t in

plac

e as

det

aile

d in

th

e R

RAP

and

the

CSD

P.

Dis

plac

ed p

eopl

e ha

ve a

cces

s to

a s

peci

fic g

rieva

nce

man

agem

ent

mec

hani

sm.

Vuln

erab

le p

eopl

e ar

e ad

dres

sed

thro

ugh

a sp

ecifi

c as

sist

ance

pa

ckag

e.

Res

ettle

men

t and

relo

catio

n m

easu

res

are

impl

emen

ted

by R

MG

C. T

he

budg

et o

f res

ettle

men

t and

relo

catio

n is

abo

ut U

SD 8

0 M

.

Land, infrastructure & demography

2 Lo

ss o

f pub

lic in

frast

ruct

ure

in

Roş

ia M

onta

Cur

rent

pub

lic in

frast

ruct

ure

and

faci

litie

s in

R

osia

Mon

tana

are

des

troye

d in

ord

er th

at

min

ing

oper

atio

ns m

ay c

omm

ence

.

The

cons

truct

ion

of th

e re

settl

emen

t site

in P

iatra

Alb

a w

ill in

clud

e th

e re

plac

emen

t of a

ll pu

blic

infra

stru

ctur

e, in

clud

ing

the

Tow

n H

all,

polic

e st

atio

n, p

ost o

ffice

, cul

tura

l hou

se, n

ew p

iata

(tow

n ce

ntre

), he

alth

care

ce

ntre

and

pha

rmac

y. A

sch

ool w

ill a

lso

be c

onst

ruct

ed a

t Pia

tra A

lba

Pipe

d w

ater

, wat

erbo

rne

sew

erag

e, e

lect

ricity

and

tele

phon

e co

nnec

tions

will

be p

rovi

ded

to a

ll re

settl

emen

t hou

ses

M

ost c

hurc

hes

and

cem

eter

ies

rem

ain

unaf

fect

ed a

s a

resu

lt of

the

prot

ectio

n m

easu

res

that

will

be

impl

emen

ted

in th

e de

sign

ated

hi

stor

ical

pat

rimon

y pr

otec

tion

area

. Tho

se c

ongr

egat

iona

l stru

ctur

es

that

may

be

affe

cted

will

be e

ither

reco

nstru

cted

or c

ompe

nsat

ed, a

t the

co

ngre

gatio

n’s

choi

ce. C

emet

erie

s an

d gr

aves

will

be re

loca

ted

in

acco

rdan

ce w

ith R

oman

ian

legi

slat

ion

Res

ettle

men

t and

R

eloc

atio

n Ac

tion

Plan

(R

RAP

) C

omm

unity

Su

stai

nabl

e D

evel

opm

ent P

lan

(CSD

P)

Cul

tura

l pat

rimon

y pr

otec

tion

plan

(CPP

P)

Workforce

3

predominantly

male job-seekers Im

pact

on

loca

l in

frast

ruct

ure,

Pote

ntia

lly d

etrim

enta

l to

loca

ls v

ia

redu

ctio

n in

acc

ess

to a

nd q

ualit

y of

loca

l se

rvic

es. C

ompe

titio

n fo

r ser

vice

s.

Hiri

ng P

olic

y gi

ving

prio

rity

to lo

cals

for r

ecru

itmen

t by

RM

GC

, EPC

co

ntra

ctor

s an

d su

b-co

ntra

ctor

s. In

clud

ing

emph

asis

in e

qual

op

portu

nity

em

ploy

men

t to

incr

ease

num

bers

of w

omen

in w

orkf

orce

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

Page 6: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 1:

Pot

entia

l Im

pact

s –

Ove

rvie

w

Pag

e 6

of 5

2

Topi

c #

Act

ion

/ act

ivity

Po

tent

ial i

mpa

ct

Prev

entio

n / M

itiga

tion

mea

sure

s

App

licab

le

man

agem

ent p

lans

ho

usin

g, b

asic

co

mm

oditi

es

and

serv

ices

Impr

ovem

ents

in lo

cal s

ervi

ces

etc,

thro

ugh

incr

ease

d de

man

d fo

r acc

ess

to a

nd q

ualit

y of

suc

h se

rvic

es b

y w

orke

rs; t

hrou

gh

incr

ease

in w

ealth

lead

ing

to m

ore

inve

stm

ents

In

crea

sed

cultu

ral d

iver

sity

and

soc

ial

revi

talis

atio

n: n

ew e

nerg

ies,

new

initi

ativ

es

– sp

orts

, com

mer

cial

, soc

ial

Impr

oved

and

incr

ease

d so

cial

div

ersi

ty b

y in

tegr

atio

n of

‘for

eign

’ wor

kers

with

loca

l po

pula

tion,

dire

ctly

(e.g

. via

mar

riage

s) o

r in

dire

ctly

thro

ugh

dem

and

by th

e w

orke

rs

+/- t

heir

partn

ers

for s

ervi

ces

in th

e lo

cal/r

egio

nal c

omm

uniti

es

No

miti

gatio

n m

easu

res

nece

ssar

y C

omm

unity

Su

stai

nabl

e D

evel

opm

ent P

lan

Ris

ks o

f dis

rupt

ion

and

(cul

tura

l) co

nflic

t w

ith lo

cals

Soci

al im

pact

s re

late

d to

in

tera

ctio

ns

with

loca

l po

pula

tion

Pote

ntia

lly li

ving

alo

ne, r

isks

that

dis

ease

s,

incl

udin

g se

xual

ly tr

ansm

itted

dis

ease

s,

incl

udin

g H

IV/A

IDS,

may

spr

ead

Hiri

ng P

olic

y pr

iorit

isin

g lo

cals

& e

qual

opp

ortu

nity

em

ploy

men

t to

incr

ease

num

bers

of w

omen

in th

e w

orkf

orce

. Em

phas

is o

n m

arrie

d m

en o

r men

with

long

term

par

tner

s.

Wor

kers

’ Cod

e of

Con

duct

; Com

mun

ity H

ealth

Pol

icy

to im

prov

e aw

aren

ess

of h

ealth

issu

es

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

Ris

ks o

f inc

reas

ed u

nem

ploy

men

t and

so

cial

/eco

nom

ic v

ulne

rabi

lity

Hiri

ng P

olic

y pr

iorit

izin

g ex

-Min

vest

/Ros

iam

in w

orke

rs fo

r re-

empl

oym

ent b

y R

MG

C, E

PC c

ontra

ctor

s an

d su

b-co

ntra

ctor

s Pl

an to

be

deve

lope

d by

Min

vest

Workforce

4

Red

uctio

n in

loca

l/reg

iona

l w

orkf

orce

as

a re

sult

of

Min

vest

clo

sing

dow

n its

op

erat

ion

Rel

ease

of s

kille

d, m

inin

g re

late

d w

orke

rs

avai

labl

e fo

r em

ploy

men

t. M

agni

tude

de

pend

s on

how

man

y ca

n be

dire

ctly

em

ploy

ed b

y R

MG

C o

r sub

-con

tract

ors

5 R

ejuv

enat

ed a

nd im

prov

ed

empl

oym

ent m

arke

t and

po

ssib

ilitie

s

Impr

oved

cas

h in

com

es a

nd in

crea

sed

stan

dard

of l

ivin

g. In

crea

sed

oppo

rtuni

ties

for i

ndiv

idua

l and

fam

ily d

evel

opm

ent,

incl

udin

g co

mfo

rt (b

ette

r ins

ulat

ion,

etc

), ed

ucat

ion,

recr

eatio

n, &

futu

re in

vest

men

ts

6 Ad

ult e

duca

tion,

voc

atio

nal

train

ing,

on

the

job

train

ing

Incr

ease

d op

portu

nitie

s to

exp

loit

empl

oym

ent o

peni

ngs,

dev

elop

ow

n en

terp

rises

, fill

serv

ice-

dem

and

gaps

7 Im

prov

ed h

ealth

ser

vice

s an

d fa

cilit

ies

Bette

r hea

lth p

ossi

bilit

ies

parti

cula

rly fo

r el

derly

& d

isad

vant

aged

gro

ups

Social fabric & quality of life

8

Ren

ovat

ion

or c

onst

ruct

ion

of

new

inf

rast

ruct

ure

and

serv

ices

, inc

ludi

ng w

aste

, el

ectri

city

, wat

er, s

ewag

e &

road

s

Impr

oved

bas

ic &

com

mon

infra

stru

ctur

e, &

as

soci

ated

hea

lth im

prov

emen

ts. I

mpr

oved

in

cent

ive

to a

cces

s re

gion

or s

tay

in re

gion

du

e in

crea

se in

com

fort

fact

or. B

enef

icia

l to

tour

ist p

ossi

bilit

ies

No

miti

gatio

n m

easu

res

requ

ired.

D

evel

opm

ent,

impl

emen

tatio

n an

d ex

ecut

ion

of p

rogr

amm

es to

m

axim

ise

thes

e be

nefit

s co

ntai

ned

with

in v

ario

us m

anag

emen

t pla

ns.

Res

ettle

men

t and

re

loca

tion

actio

n pl

an

Com

mun

ity s

usta

inab

le

deve

lopm

ent p

lan

Page 7: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 1:

Pot

entia

l Im

pact

s –

Ove

rvie

w

Pag

e 7

of 5

2

Topi

c #

Act

ion

/ act

ivity

Po

tent

ial i

mpa

ct

Prev

entio

n / M

itiga

tion

mea

sure

s

App

licab

le

man

agem

ent p

lans

C

ultu

ral r

einv

igor

atio

n an

d re

vita

lisat

ion,

in

trodu

ctio

n of

new

cul

tura

l dyn

amic

s.

9 Ex

posu

re to

new

cul

ture

s (o

ther

Rom

ania

ns &

ex

patri

ates

) St

ress

& c

onfli

ct d

ue to

cha

nge,

unc

erta

inty

&

nego

tiatio

ns. R

esen

tmen

t, di

stru

st, f

ear o

f ne

w &

unk

now

n cu

lture

s, p

erso

ns

Hiri

ng P

olic

y gi

ving

prio

rity

to lo

cals

for r

ecru

itmen

t by

RM

GC

, EPC

co

ntra

ctor

s an

d su

b-co

ntra

ctor

s,. E

mph

asis

in e

qual

opp

ortu

nity

em

ploy

men

t to

incr

ease

num

bers

of w

omen

in w

orkf

orce

D

isru

ptio

n to

the

loca

l soc

ial f

abric

and

so

lidar

ity n

etw

orks

. Mai

nly

detri

men

tal t

o th

e m

ost v

ulne

rabl

e in

divi

dual

s su

ch a

s th

e el

derly

and

dis

able

d

Loss

of f

amily

hom

es, a

rea

and

mem

ory’

as

soci

atio

n.

Loss

of e

stab

lishe

d su

ppor

t net

wor

ks a

nd

neig

hbou

rhoo

ds

Vuln

erab

le P

eopl

e Po

licy,

incl

uded

in th

e R

RAP

Pe

ople

hav

e an

opt

ion

to re

settl

e (ra

ther

than

relo

cate

) on

a co

mm

unity

re

settl

emen

t site

whe

re a

ll co

mm

unity

faci

litie

s ar

e go

ing

to

reco

nstru

cted

Pl

ot a

nd h

ouse

allo

catio

n on

the

rese

ttlem

ent s

ites

will

atte

mpt

to

mai

ntai

n ne

ighb

ourh

oods

and

sol

idar

ity n

etw

orks

10

Res

ettle

men

t (of

a p

art)

of th

e co

mm

unity

Impr

oved

livi

ng c

ondi

tions

thro

ugh

new

bu

ildin

gs, b

ette

r inf

rast

ruct

ure,

impr

oved

ac

cess

to (b

ette

r) co

mm

unity

ser

vice

s

11

Dem

and

for l

ocal

ser

vice

s,

infra

stru

ctur

e in

clud

ing

hom

es,

land

, oth

er lo

cal r

esou

rces

&

prop

ertie

s.

Incr

ease

d w

ealth

to lo

cal p

rope

rty o

wne

rs /

oper

ator

s. O

ppor

tuni

ties

to li

quid

ate

asse

ts

or c

onve

rt ta

ngib

le a

sset

s to

inta

ngib

le

asse

ts. P

ossi

bilit

y to

inve

st in

opp

ortu

nitie

s ot

herw

ise

deni

ed lo

cals

.

No

miti

gatio

n m

easu

res

requ

ired

Res

ettle

men

t and

re

loca

tion

actio

n pl

an

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

12

The

Proj

ect c

onst

ruct

ion

and

oper

atio

n te

mpo

raril

y or

pe

rman

ently

inte

rrup

ts o

r lim

its

acce

ss to

resi

denc

es a

nd

busi

ness

es

If re

side

nce,

resi

dent

mus

t mov

e ei

ther

te

mpo

raril

y or

per

man

ently

(res

ettle

men

t).

If bu

sine

ss, p

oten

tial o

f sig

nific

ant l

oss

of

busi

ness

. Bus

ines

s m

ust r

eloc

ate

or c

lose

. Po

ssib

ility

to re

-ope

n if

acce

ss is

te

mpo

raril

y re

stric

ted.

Iden

tific

atio

n of

all

acce

ss ro

ads

used

by

the

com

mun

ity p

rior t

o co

nstru

ctio

n / o

pera

tion

Impl

emen

tatio

n of

per

man

ent o

r tem

pora

ry a

ltern

ativ

e ac

cess

sol

utio

ns,

incl

udin

g fin

anci

al

13

The

Proj

ect c

onst

ruct

ion

and

oper

atio

n re

stric

ts e

ither

te

mpo

raril

y or

per

man

ently

ac

cess

to fi

elds

, pas

ture

, fo

rest

and

oth

er n

atur

al

reso

urce

s

Poss

ible

sig

nific

ant i

mpa

ct o

n su

bsis

tenc

e ag

ricul

tura

l liv

elih

ood

of p

eopl

e. In

terr

uptio

n to

sea

sona

l agr

icul

tura

l pra

ctic

es a

nd

anim

al h

usba

ndry

.

Iden

tific

atio

n of

all

acce

ss ro

ads

used

by

the

com

mun

ity p

rior t

o co

nstru

ctio

n / o

pera

tion

and

impl

emen

tatio

n of

per

man

ent o

r tem

pora

ry

alte

rnat

ive

acce

ss s

olut

ions

C

ompe

nsat

ion

paid

for d

amag

es re

sulti

ng fr

om te

mpo

rary

rest

rictio

n of

us

e. C

ompe

nsat

ion

rate

s as

per

the

RR

AP

Access

14

Impr

oved

tran

spor

t in

frast

ruct

ure

to lo

calit

y an

d re

gion

via

upg

radi

ng ro

ad li

nk

& lo

gist

ical

sup

port

Easi

er in

gres

s &

egre

ss o

f reg

ion

by p

eopl

e in

clud

ing

tour

ists

. Pro

mot

ion

of re

gion

for

(tour

ist/a

ltern

ativ

e) d

evel

opm

ent,

lead

ing

to

sust

aine

d so

cial

-eco

nom

ic d

evel

opm

ent

No

miti

gatio

n m

easu

res

nece

ssar

y

Res

ettle

men

t and

re

loca

tion

actio

n pl

an

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

Economy

15

Incr

ease

in fi

scal

reso

urce

s av

aila

ble

to lo

cal G

over

nmen

ts

via

taxe

s

Incr

ease

d bu

dget

of l

ocal

gov

ernm

ents

, im

prov

ed a

bilit

y to

dev

elop

loca

l civ

ic

serv

ices

: edu

catio

n, h

ealth

, tra

nspo

rt, e

tc.

Cap

acity

bui

ldin

g to

enh

ance

loca

l gov

ernm

ents

’ cap

acity

to a

dequ

atel

y pl

an a

nd d

isbu

rse

incr

ease

d re

sour

ces

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

Page 8: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 1:

Pot

entia

l Im

pact

s –

Ove

rvie

w

Pag

e 8

of 5

2

Topi

c #

Act

ion

/ act

ivity

Po

tent

ial i

mpa

ct

Prev

entio

n / M

itiga

tion

mea

sure

s

App

licab

le

man

agem

ent p

lans

16

Incr

ease

in fi

scal

reso

urce

s av

aila

ble

to c

entra

l G

over

nmen

t via

taxe

s &

roya

lties

Con

tribu

tion

to n

atio

nal d

evel

opm

ent b

y in

crea

sed

inco

me

avai

labl

e.

No

miti

gatio

n ne

cess

ary

17

Ris

k th

at ta

xes

and

reve

nues

ar

e no

t prim

arily

use

d fo

r loc

al

deve

lopm

ent

Con

tribu

tion

to c

entra

l gov

ernm

ent u

nlik

ely

to b

e ea

rmar

ked

for l

ocal

dev

elop

men

t. C

hanc

e th

at p

riorit

ies

of lo

cal g

over

nmen

t do

not

refle

ct s

peci

fic p

opul

atio

n-re

late

d ne

eds

and

wan

ts

Wor

k in

coo

pera

tion

with

loca

l aut

horit

ies

on p

roje

cts

of b

enef

it to

loca

l co

mm

uniti

es &

regi

on. R

MG

C to

co-

finan

ce a

spec

ts o

f pro

ject

de

velo

pmen

t / im

plem

enta

tion.

18

Ris

ks re

late

d w

ith p

oten

tial

non

equi

tabl

e di

strib

utio

n of

Pr

ojec

t ben

efits

thro

ugho

ut

com

mun

ity

Elde

rly, o

lder

wor

kers

bei

ng u

nabl

e to

m

aint

ain

empl

oym

ent a

fter M

inve

st c

lose

s do

wn

the

Ros

iam

in o

pera

tion,

di

sadv

anta

ged

peop

le la

ckin

g ca

paci

ty

(inte

llect

ual,

educ

atio

nal,

phys

ical

) to

expl

oit

new

opp

ortu

nitie

s

Iden

tific

atio

n of

spe

cific

indi

vidu

als

at ri

sk. W

ith lo

cal a

utho

ritie

s id

entif

y em

ploy

men

t opp

ortu

nitie

s, w

hat (

re-tr

aini

ng is

requ

ired,

ass

ist i

n re

train

ing,

etc

19

Incr

ease

d di

rect

& in

dire

ct

empl

oym

ent

Flow

on

effe

cts

of p

rese

nce

of m

ajor

ec

onom

ic in

vest

men

t thr

ough

out

com

mun

ity, t

o na

tiona

l lev

el. 1

:4

dire

ct/in

dire

ct e

mpl

oym

ent;

job

crea

tion.

20

Incr

ease

d in

com

e

In c

ompa

rison

to a

‘no-

min

e’ s

cena

rio,

inco

mes

will

rise

in re

gion

No

miti

gatio

n ne

cess

ary

21

Loss

of t

rain

ed s

taff

from

oth

er

orga

niza

tions

& b

usin

esse

s to

R

MG

C

Cap

acity

dra

in to

fill

high

er-p

ayin

g/be

tter

bene

fits

posi

tion

with

RM

GC

. Red

uced

ca

paci

ty a

vaila

ble

to o

ther

bus

ines

ses

Dem

and

for l

abou

r will

driv

e hi

gher

sal

arie

s &

bette

r con

ditio

ns

incr

easi

ng o

vera

ll ca

paci

ty in

regi

on b

y en

cour

agin

g su

itabl

y qu

alifi

ed

wor

kers

to th

e re

gion

. Sk

ills e

nhan

cem

ent,

adul

t edu

catio

n &

voca

tiona

l tra

inin

g to

be

cond

ucte

d by

RM

GC

sup

porte

d in

itiat

ives

lead

ing

to in

crea

sed

capa

city

le

vel

22

Incr

ease

d in

com

e fo

r tho

se

enga

ged

in s

mal

l bus

ines

s

Req

uire

men

ts o

f sup

ply

of a

div

erse

rang

e of

ser

vice

s, m

ater

ials

& p

rodu

cts

for t

he

RM

P dr

ive

dem

and

for s

ourc

ing

serv

ices

, et

c, lo

cally

, lea

ding

to in

crea

se in

com

e to

lo

cal b

usin

esse

s. A

lso

prov

ides

ince

ntiv

e to

de

velo

p lo

cal b

usin

esse

s to

sup

ply

RM

P &

rela

ted/

spin

off

dem

and.

No

miti

gatio

n ne

cess

ary

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

23

Dis

rupt

ion

to b

usin

esse

s lo

cate

d in

the

Proj

ect-

Impa

cted

Are

a

Tem

pora

ry to

per

man

ent l

oss

of b

usin

ess

reve

nue.

Los

s of

inco

me

and

occu

patio

n to

bu

sine

ss p

eopl

e.

(Bus

ines

s) re

settl

emen

t / re

-est

ablis

hmen

t ass

ista

nce

to a

ffect

ed

busi

ness

es. C

ompe

nsat

ion

for l

oss

of b

usin

ess.

Ski

lls e

nhan

cem

ent,

adul

t edu

catio

n &

voca

tiona

l tra

inin

g av

aila

ble

for a

ffect

ed b

usin

ess

aidi

ng in

re-e

stab

lishi

ng b

usin

esse

s.

RR

AP

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

Page 9: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 1:

Pot

entia

l Im

pact

s –

Ove

rvie

w

Pag

e 9

of 5

2

Topi

c #

Act

ion

/ act

ivity

Po

tent

ial i

mpa

ct

Prev

entio

n / M

itiga

tion

mea

sure

s

App

licab

le

man

agem

ent p

lans

24

Incr

ease

d vi

sibi

lity

of

Com

mun

ity a

nd re

gion

for

othe

r inv

estm

ents

(i.e

. reg

iona

l de

velo

pmen

t)

Incr

ease

in c

onfid

ence

for F

orei

gn D

irect

In

vest

men

t loc

ally

in R

osia

Mon

tana

, na

tiona

lly b

ased

on

conf

irmat

ion

maj

or

busi

ness

inve

stm

ent i

s po

ssib

le, t

o re

gion

al

incl

udin

g ne

ighb

ourin

g co

untri

es.

25

Trai

ned

labo

ur fo

rce

Skill

ed, m

ulti-

disc

iplin

ary

labo

ur fo

rce

follo

win

g ca

paci

ty b

uild

ing

and

expe

rienc

e re

quire

d to

wor

k in

the

min

e an

d an

cilla

ry

indu

strie

s

No

miti

gatio

n ne

cess

ary

28

Infla

tion

& ris

e in

cos

t of l

ivin

g C

ause

d by

ove

rall

incr

ease

in e

cono

mic

ac

tivity

& w

ealth

of r

egio

n. P

oten

tially

de

trim

enta

l to

the

poor

est i

n th

e co

mm

unity

Wor

kers

’ Acc

omm

odat

ion

Polic

y ai

med

to re

duce

impa

cts

by e

mpl

oyin

g lo

cals

, inc

reas

ing

rate

of e

mpl

oym

ent;

acco

mm

odat

ion

to b

e sp

read

th

roug

hout

com

mun

ity; s

peci

fic a

ctio

ns to

ass

ist p

oore

st &

mos

t vu

lner

able

in th

e co

mm

unity

to o

ffset

affe

cts

of in

flatio

n.

Incr

ease

in lo

cal e

cono

mic

act

ivity

follo

win

g co

mm

ence

men

t of c

onst

ruct

ion,

the

mos

t ac

tive

phas

e, in

clud

ing

empl

oym

ent

29

Con

stru

ctio

n pe

riod

– a

shor

t pe

riod

of re

lativ

ely

mor

e in

tens

e ac

tivity

C

ontra

ctio

n of

loca

l eco

nom

ic a

ctiv

ity a

t the

en

d of

con

stru

ctio

n, in

clud

ing

retre

nchm

ents

Loca

l pro

cure

men

t pol

icy:

pro

cure

men

t of s

ervi

ces,

sup

plie

s an

d co

nstru

ctio

n w

orks

from

loca

l sup

plie

rs a

nd s

ub-c

ontra

ctor

s w

ill be

m

axim

ized

Lo

cal P

rocu

rem

ent P

olic

y in

tend

ing

at e

nhan

cing

cap

aciti

es o

f loc

al

smal

l bus

ines

ses

The

CSD

P in

clud

es s

mal

l bus

ines

s de

velo

pmen

t mea

sure

s to

enh

ance

th

e bu

sine

ss e

nviro

nmen

t in

a lo

ng te

rm p

ersp

ectiv

e, a

nd a

llevi

ate

the

pote

ntia

l im

pact

s of

the

depr

essi

on re

sulti

ng fr

om th

e en

d of

the

cons

truct

ion

phas

e

30

Econ

omic

risk

s re

late

d w

ith

even

tual

min

e cl

osur

e

Inap

prop

riate

or i

nsuf

ficie

nt p

lann

ing

& pr

epar

atio

n fo

r alte

rnat

ive

sust

aina

ble

econ

omic

act

iviti

es d

urin

g m

ine

life

lead

s to

si

gnifi

cant

eco

nom

ic im

pact

s fo

llow

ing

min

e cl

osur

e.

Dev

elop

men

t of a

rang

e of

mea

sure

s &

initi

ativ

es o

ver t

he li

fesp

an o

f R

MP

such

that

net

wel

fare

con

tinue

s to

incr

ease

follo

win

g cl

osur

e of

m

ine

oper

atio

ns.

Com

mun

ity

Sust

aina

ble

Dev

elop

men

t Pla

n

31

Incr

ease

d tra

ffic,

par

ticul

arly

at

cons

truct

ion

phas

e

Sign

ifica

nt v

olum

es o

f tra

ffic,

par

ticul

arly

la

rge

mac

hine

ry, i

ncre

ases

risk

s to

peo

ple.

R

isk

mos

t acu

te fo

r non

dis

plac

ed p

eopl

e,

pede

stria

ns, c

yclis

ts, y

oung

and

the

very

ol

d.

Wor

kers

Cod

e of

Con

duct

, spe

ed li

mits

, phy

sica

l mea

sure

s, a

nd s

afet

y aw

aren

ess

in lo

cal s

choo

ls

Community safety

32

Min

e co

nstru

ctio

n an

d op

erat

ion

Sign

ifica

nt in

dust

rial o

pera

tions

, suc

h as

a

min

e, c

reat

es n

ew s

afet

y ha

zard

s fo

r co

mm

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Section 2: Methods to Assess and Predict the Impacts on the Socio-Economic Environment

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2 Methods to Assess and Predict the Impacts on the Socio-Economic Environment

2.1 Establishment of the Baseline Situation

The Project organized several campaigns aimed at gathering social and economic baseline information on the affected population:

Physical and cadastral survey of buildings, land, and census of affected households (first round of field work in 2000 by Strajan Planning Office (SPO), updated in 2002 by RMGC);

Household socio-economic surveys carried out in 2002 by RMGC, including the

administration of a questionnaire to 247 households representing about 25% of affected households, and the use of qualitative instruments including focus group discussions and key leader surveys;

Qualitative socio-economic surveys done in late 2002 by the Research Institute on

Quality of Life ICCV (1) for RMGC, including the administration of a detailed questionnaire on livelihoods, incomes, and household expenses to 30 potentially affected households, and Focus Group Discussions in localities around the Project;

Survey of potentially affected businesses, carried out in 2002.

Qualitative Survey regarding the attitude of population directly affected by the

Project; carried out in October 2004 by TNS/CSOP.

Comprehensive baseline survey of the health condition and risks in Roşia Montană. The following table presents the summary description of each of these campaigns. Table 2-1. Socio-Economic Baseline Surveys

Study Period Issuer Objectives Instruments

Physical & cadastral survey – Census of affected household

2002

SPO (Strajan Planning Office) then RMGC (internal)

Establish a baseline of physical assets, prepare cadastral map, identify ownership, ascertain eligibility

Topographic survey of affected plots, census of household members

Socio-economic survey Mid-2002 RMGC (internal)

Establish a socio-economic baseline in view of the development of the first version of the RRAP

Questionnaire (see hereunder) administered to a stratified sample of 247 households Key-informant surveys

Detailed survey on livelihoods Focus groups on expectations vis-à-vis RMGC’s project

End 2002 ICCV (external)

Obtain detailed information about income streams, survival strategies

Detailed questionnaire administered to 30 households Focus group discussions

1 Institutul de Cercetare a Calitatii Vietii (ICCV), a public Romanian research institute linked to the University of Bucharest.

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Study Period Issuer Objectives Instruments

Qualitative analysis of local stakeholders’ perception regarding the project

September-October 2004

TNS/CSOP

Obtain the information about the perceptions and expectations of stakeholders from affected areas regarding the PUZ

Interviews of 456 household heads who could be resettlers or re-allocatees; 331 household heads from Abrud and 317 from Rosia Montana comuna

Health Baseline Study 2005

Environmental Health Centre, Cluj Napoca, Romania

To determine the overall health baseline in Roşia Montană, and compare it to other areas

Interviews with health workers in the region, review of health statistical data

2.2 Prediction and Assessment of Impacts – Design of Impact Prevention / Mitigation Measures

To define the socio-economic circumstances of Roşia Montană and surrounding areas investigations included the following:

The local context of Rosia Montana and surrounding areas such as the current sources of livelihoods, demographics, the present mining operations and plans concerning them, present economic activities, and present investment inflows, as well as the social and political / administrative organization, the status of civil society, etc.

Available best practice documentation in relation with social impact assessments and

resettlement planning, particularly that issued by the World Bank Group. The information obtained was then used to predict the socio-economic impacts of the RMP. As well to assess the significance of the impacts and to design appropriate methods for avoidance or mitigation of negative impacts and enhancement of the positive impacts. A complexity regarding the RMP and assessment of the socio-economic impacts (both negative and positive) and mitigation strategies is that:

There is no precedent in Romania for a major extractive project implemented in conformance with Romanian regulations and transposed EU legislation and standards;

There is no precedent in Romania for a major extractive project implemented in conformance with International Finance Institutions’ and the Equator Principles’ requirements.

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3 Legislative Context The Romanian legislation conforms with the EU legislation and the WB guidelines and supporting documents. In October 2002 the IFC convened a meeting of banks in London to discuss environmental and social issues in project finance. As a result the banks present decided to develop a banking industry framework for addressing environmental and social risks in project financing. The Equator Principles2 are the result. The Equator Principles are directly linked to various WBG/IFC Guidelines and Safeguard Policies. Therefore in complying with the Equator Principles an investor complies with the relevant WBG/IFC Guidelines and Safeguard Polices. Both Romanian and European Union legislation are in general more stringent than the Equator Principles and are more important for the project in terms of its technical and social impact and its mitigation / prevention measures. Romanian EIA legislation addresses socio-economic issues. Ministerial Order nr. 863/2002.09.28 of the Ministry for Water and Environmental Protection concerning the approval of the methodological guide of procedures for the evaluation stages of the environmental impact assessment, includes requirements concerning the content of the socio-economic baseline to be presented in an EIA, including the potential impacts of the project/proposed activity on:

The demographic/local population characteristics;

The local economical conditions, labour market, unemployment dynamics;

The living conditions in the zone. Law no.350/2001 for Urban and Territorial Planning establishes the goals, competences and measures concerning urban and spatial planning with the aim of ensuring the fair and sustainable development of human settlements and the national territory, the protection of the environment and increasing the quality of human life. This law is applicable to governmental authorities. Under the Aarhus Convention on access to information, public participation in decision-making and access to justice in environmental matters which Romania has ratified by Law no.86/2000, the right for public participation is backed by law. A key provision of the Environmental and Social Impact Assessment process in Romania is to enable stakeholders to participate in environmental decision-making associated with projects subject to a review process. The most significant socio-economic issues that result from the Project are direct impacts related to the resettlement of local residents. Involuntary resettlement is not specifically addressed by the Romanian legislation. However, various provisions of the Romanian law are relevant to RMGC’s Resettlement and Relocation Action Plan, such as:

acquisition of land for mining,

expropriation for public interest,

guidelines for compensation,

land tenures regimes, land titles, and real estate transactions, 2 http://www.equator-principles.com/principles.shtml

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Section 3: Legislative Context

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urban planning and zoning,

permitting processes for urban developments, construction and demolition,

resettlement of graveyards and churches,

residential requirements. These provisions are summarized and analyzed in the Resettlement and Relocation Action Plan.

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4 Overview of the Baseline Socio-Economic Conditions 4.1 General Outlines

The main socio-economic characteristics of the Project area can be summarized as follows: The population is ageing and decreasing at Community and regional level;

Out-migration of job seekers and young, capable people are in part responsible for the ageing population;

Massive mining redundancies have had a significant negative impact on the Community;

Health risk is high and attendance at schools is in decline in the Community, and related infrastructure is low;

The mining sector remains the main source of employment;

The two existing state-operated mining operations are planned to close in 2007;

More than 50% of the people in the Community receive government support;

The proportion of income earners in the population below the poverty line in the Community is high;

Investment inflows are low, except in mining;

The condition of infrastructure – roads, water supply, waste, energy - and housing in the Community is very poor;

The environmental condition is very poor with significant pollution and ongoing environmental risks and impacts.

4.2 Geographical and Administrative Situation

The Project is situated near the village of Roşia Montană, approximately 50 km northwest of Alba Iulia the regional capital, and 65 km north-northeast of the city of Deva. The project is located in a region known as the Golden Quadrilateral in the Metaliferi Mountains, which belongs to a larger, regional mountain unit, called the Apuseni Mountains of Transylvania. Romania has been subdivided into seven development regions, each including several “judetul” or counties. Alba county is part of the “Centre” Region, which also includes Brasov, Covasna, Harghita, Mures and Sibiu counties. Roşia Montană is located in the Centre Region. This is explained further in section 5.2. The Project area includes three different administrative entities, all contained within Judet Alba (Alba county):

The Comuna (rural commune) of Roşia Montană, which has a surface of approximately 42 km2, and includes 16 localities in total with a combined population of 3,865 people according to the 2002 census. The largest village in the comuna is Roşia Montană.

The Orasul (urban commune) of Abrud, which includes, in addition to the town of

Abrud, three more villages: Abrud Sat, Gura Cornei and Soharu, and contains a total population of 6,213 inhabitants (2002).

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The Orasul of Câmpeni, which includes the city of Câmpeni and 21 villages, with a total population of 8,096 inhabitants (2002 population census).

The location of human settlements in the area results from a combination of factors, mainly access to agricultural land, water, and mineable resources. Settlements concentrate in the three valleys of Roşia Montană, Corna and Abrud - Câmpeni.

4.3 Characteristics of the population in the impact zone

History

The history of Roşia Montană is closely related to gold, with a documented history of mining of almost 2000 years dating back to the Roman conquest of Dacia and the creation of a network of galleries in the hills behind Roşia Montană, then called Alburnus Maior. The progression of mining technology from that age to the present represents a valuable chronology of industrial mining heritage, in particular the role that it has played in the formation of Roşia Montană’s cultural heritage.

Ethnic characteristics and Religion

The diverse ethnic groups who have in-migrated to partake in the gold resource exploitation of Roşia Montană have had good relations and no ethnic separation has occurred. According to the Alba County statistical department about 90% of the population regard themselves as ethnic Romanian, 1.4% as Hungarians and 7.5% Rroma. Most Rroma reside in a locality called Dăroaia next to Gura Roşiei in the Abrud valley. In comparison with the national level and county average, the community average of Rroma people are higher; see table below: Table 4-1. Ethnic distribution of population

Ethnic distribution of population in Romania and Alba county in 2002 In Roşia Montană, 2005

The difference from 100% regards other ethnic groups

Romanian (%) Hungarians (%) Rroma (%) Romania1 89.5 6.6 2.5 Alba county1 90.4 5.4 3.8 Roşia Montană2 90.1 1.4 7.5 1] Source: National Statistical Yearbook, 2003 2] Source: Alba County Statistic Department, 2006.

While there is a majority of Romanian Orthodox Christians as in the rest of Romania, several other Christian denominations are also present: Greek Catholics, Roman Catholics, Protestants, Unitarian Christians, Baptists, and Pentecostals.

Demographical profile

The population is ageing and decreasing in the Community with an average annual decrease of 0.8% per annum. Massive mining redundancies are in part responsible, plus low birth rate and out-migration. This trend is observable in Roşia Montană, Abrud and Câmpeni, indicative of a regional trend.

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Figure 4.1. Community population dynamic Source: Alba County Statistic Department This negative demographic trend at the community level can be explained by several factors:

General regional rural depopulation trend since 1990;

Restructuring of the mining sector including mass-redundancies in the Community and the region;

Depressed socio-economic conditions following the end of communism. (Elderly) Women predominate in the Community, averaging 58% in Rosia Montana, 44% in Abrud and 72% in Câmpeni of the total adult population. Young active people are leaving the Community in search of improved employment opportunities and better living conditions, such as in: Alba Iulia, Arad, Oradea, Timişoara, Cluj Napoca, Deva. Limited opportunities in agriculture also impact, causing people (again mostly young) to migrate to urban areas. The population graphs on the following page show trends as well as gender and age.

0 2000

4000

6000

8000

10000

1997 1998 1999 2000 2001 2002 2003 2004

Rosia Montana populationAbrud populationCampeni population

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Figure 4.2. Community population dynamic and trends

Graphic: Gender Distribution of adult population in Campeni Source: Alba County Statistic Department

Graphic: Gender Distribution of adult population in Abrud Source: Alba County Statistic Department

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1997 1998 1999 200 2001 2002 2003 2004

Rosia Montana Population

Total Population RM

men

w omen

children

Graphic: Gender Distribution of adult population in Rosia Montana Source: Alba County Statistic Department

0

1000

2000

3000

4000

5000

6000

7000

1997 1998 1999 200 2001 2002 2003 2004

Abrud Population Structure

Total Population Abrud

men

w omen

children

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1997 1999 2001 2003

Campeni Population Structure

Total Population Campeni

men

w omen

children

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Figure 4.3. Roşia Montană age pyramidThe largest population groups are elderly widows, and married men (2002 RMGC survey). The gender distribution of household-heads are 25% female & 75% male. Female household heads are predominantly widows, while married male household heads are about 80% (2002 RMGC socio-economic survey).

Figure 4.4. Marital status of household heads

As shown by the graph opposite, female household heads are predominantly widows, while the proportion of married male household heads is about 80%. Source: Planning alliance survey 2002 for RMGC

Figure 4.5. Household by number of members

According to the 2002 Romanian National census, the average household size for the comuna of Roşia Montană is 2.83 individuals per household (Romania: 2.89) Over the 247 households that have been surveyed by RMGC in 2002, the average number of individuals per household is 3.06, with the following distribution (see graph on the right):

Age Pyramid80 and more

70-7960-69

50-5940-4930-3920-29

10-190-9

0,10 0,05 0,00 0,05 0,10

MaleFemale

Graphic: Age pyramid of adult population in Rosia Montana Source: Planning alliance survey 2002 for RMGC

1 member19%

3 members 25%

4 members19%

2 members22%

6 and more 6%

5 members9%

0%

20%

40%

60%

80%

100%

Female Male

Widower

Divorced/Separated

Married

Single

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Figure 4.6. Education trends in the Community

In keeping with regional trends concerning population decline, out-migration of young people and an increasing proportion of elderly people, there is a distinct decline in the Community in school numbers (see graphs for Abrud and Roşia Montană Education). Equipment in the schools is dated, in poor condition and local authorities have limited budget to improve conditions. The number of education professionals in the Community is also in decline.

Figure 4.7. Education level by age in Roşia Montană

The education status of 601 adults has been investigated during the survey on 247 households carried out in 2002 by RMGC. The results are presented by age category (see graph opposite) and show clearly that the younger residents have a much higher educational level.

Source: Both charts - Alba Iulia statistical department,

Abrud - Education

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8

Abrud kindergarten

Abrud school

Abrud art andvocational school

Abrud high school

Rosia Montana - Education

0

50

100

150

200

250

300

350

400

450

500

1997 1998 1999 2000 2001 2002 2003 2004

RM kindergartenRM school

0%

20%

40%

60%

80%

100%

18-25 26-59 60+

UniversityVocationalHigh SchoolPrimary SchoolNone

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4.4 Local economical conditions and labour market

Employment and unemployment dynamics

Roşia Montană has pre-modern industrial activities in a rural setting, and as a result livelihoods are derived from jobs in the mining sector or pensions, and from some small scale agricultural activities. Occupations in the mining sector are essential in global terms. Subsistence-oriented agricultural activities are critical as a “safety net” to the poorest in the community, predominantly female pensioners. They do not frequently take part in cash transactions and consequently are not engaged in the cash economy. Concerning contribution to the economy, a population can be broken down into two groups, as defined in the table below. Table 4-2. Description of population types in the Community Population

type Description

Active Population3

People or group of people who contribute to the registered economy. They may be employed, pay taxes, receive unemployment or other employment-related benefits. They are officially registered by various government agencies and play a role in the official/cash economy

Inactive Population4

People or group of people who are not contributing directly to the registered economy. They are not registered as unemployed, do not have official employment, do not pay tax, do not receive unemployment benefits, may receive pensions or sickness-benefits, and may be involved in unregistered economic activity

The percentages of the active and inactive populations in the Community are given in the table below: Table 4-3. Percentage of active/non-active population in the Community 3 Definition: Economically active population comprises all persons of either sex who furnish the supply of labour for the production of economic goods and services as defined by the United Nations System of National Accounts during a specified time-reference period. Source Publication: International Labour Organization (ILO) Resolutions Concerning Economically Active Population, Employment, Unemployment and Underemployment Adopted by the 13th International Conference of Labour Statisticians, October 1982, para. 5. 4 Definition: The economically inactive population comprises all persons who were neither "employed" nor "unemployed" during the short reference period used to measure "current activity". This population is split into four groups: - Attendant at educational institutions; - Retired; - Engaged in family duties; - Other economically inactive. Source Publication: Eurostat, 1999, Guidelines and table programme for the Community programme of population and housing censuses in 2001, Vol. 1: Guidelines, Office for Official Publications of the European Communities, Luxembourg.

Roşia Montană Abrud Campeni In % of total population Active 39 42 44Inactive 61 58 56Ref: Alba County statistical department 2006

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Roşia Montană Employment Dynamic

Figure 4.8. Community employment dynamic

Mining is the predominant source of employment in Roşia Montană and Abrud. Despite the decline in population, the percentage of the population employed has increased (decreasing unemployment, see graph top left). This is specifically related to the activities and presence of RMGC. The two state owned mining companies Rosiamin in Roşia Montană and Cuprumin in Abrud remain the main sources of income for those localities, with 1002 and 1286 employees respectively in 2004. RMGC employs locally an average of 450 people per year including casual, temporary, part and full time employees. Source for information in graphs except the bottom one: Alba Iulia Statistical Department, 2005.

ROSIA MONTANA POPULATION & EMPLOYMENT DINAMIC

0500

100015002000

25003000350040004500

1997 1998 1999 2000 2001 2002 2003 2004

Total Population

Total EmploymentFrom which in Mining

Rosia Montana - Employment Structure

0

200

400

600

800

1000

1200

1997 1998 1999 2000 2001 2002 2003 2004

Mining

Construction

Commerce

Education

Medical assistance

Campeni - Employment Structure

0200400600800

100012001400160018002000

1997 1998 1999 2000 2001 2002 2003 2004

Processing

Construction

Commerce

Education

Medical assistance

Transportation

0

50

100

150

200

250

300

employees

2002 2003 2004 2005

years

Communittee's Employees with RMGC

RM

Abrud

Campeni

alte loc

Source: RMGC’s employment records

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Figure 4.9. Roşia Montană definition of population and trends

The percentage of vulnerable people (unemployed, elderly, handicapped people) is consistently higher than employed one, but in 2004 the gap is less notable, possibly reflecting increased employment in RMGC.

Economic activities

Industry Figure 4.10. Roşia Montană income source

Mining is the predominant industry in Roşia Montană and Abrud. Campeni has several small companies active in textile, furniture, timber, reflecting a more diversified economic base. Both Abrud and Campeni have increased public services (transport, commerce, juridical assistance, post, telephones) due to increased demand created by RMGC in the area. RMGC provides significant income to the Rosia Montana Town Hall (Mayor’s office), as foreign investment to the Community, demonstrated in the graph Dynamic of Roşia Montană Town Hall Income (see graph left).

SECTORIAL CONTRIBUTION TO ROSIA MONTANA POPULATION'S CASH INCOME IN 2004

66%

26%

3% 3% 2%

Extractive Industry RMGC Commerce Education Other inclusiv agriculture

0

500

1000

1500

2000

2500

RON

1997 1999 2001 2003 2005

Years

Dynamic of Rosia Montana Town Hall Income

RM

Source: Rosia Montana Town Hall records.

Source: Alba Iulia statistical department, 2005

Rosia Montana

0

500

1000

1500

20002500

3000

3500

4000

4500

1997 1998 1999 2000 2001 2002 2003 2004

Rosia Montana population

unemployed, old, handicapedetc.employed

adulte population

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During the pre-construction phase RMGC has stimulated the development of local businesses from Rosia Montana, Abrud, Campeni, spending ROL 101.3 bil. in 2003 and ROL 124.4 bil. in 2004, see charts and table below.

Figure 4.11. Procurement dynamics of Roşia Montană Gold Corporation in the Community

Benefits of this include: increased employment; increased household income; improved supply of goods and food in the markets; increased in hospitality industries; and increased public accommodation services and spending. These activities increase revenue available to local government budgets and stimulate economic development in the region.

Table 4-4. Value of procurement to Roşia Montană Gold Corporation

Expenses of Roşia Montană Gold Corporation In percentages Suppliers / Destinations

2003 2004 Construction companies 17.1 11.5 Office supplies 7.7 7.8 Building materials 13.6 16.3 Local services 40.3 21.7 Tax / fees 12.4 25.9 Catering 3.5 3.4 Fuel suppliers 1.3 1.1 Cars and office maintenance 1.5 5.6 Total value, in Lei 101.3 billion 124.4 billion

Counties supplying qualified services - 2004

21%

70%

7% 1% 1%

Bucharest Alba Hunedoara Sibiu Other

Expenses - 2004

22%

7% 3%

16% 1% 25%

12%6% 8%

Local services Wood for heating Catering Building materials

Fuel Tax / Fees Constructions Maintenance Office suppliers

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Agriculture

Figure 4.12. Agricultural characteristics of Roşia Montană

Crop production in Roşia Montană is mainly subsistence with little produce sold. The main crops are fruit trees, including walnut trees (85% of all households) and animal forage (49% of all households). Agriculture is small scale potato growing, pasture and hayland. Land suitable for small scale agriculture (potatoes and vegetables) is low, some 7% in Rosia Montana, 6% in Abrud and 7% in Câmpeni. Access for farm machinery is severely limited due to the terrain and most work is done by hand with transport by horse drawn cart. No synthetic fertilizers or sprays are used, largely due to the impracticality of their application. The share of agricultural land from the total surface area is lower in Alba county and the Center Region 7 than the national level. The situation is different regarding the proportion of forest of the total surface (see graphs left). Pastures and hay fields are better represented in the county and Center Region in comparison with the national level. The proportion of the private sector in the agricultural sector is high (96.3% in Romania, 98.7% in Alba county, in 2002) and increased in the last years (National Human Development Report, 2004)

Rosia Montana Agriculture Area

0 200 400 600 800 1000 1200 1400 1600 1800

arabila

pastrie

hayland

forests

rest

2004

2002

1997

Rosia Montana Agriculture

7%

23%

26%

32%

12% arabila

pastrie

hayland

forests

rest

0

20

40

60

80

%

A gric ultural s ur fac e Fores ts

Na tura l re source s in 2002

Romania Center Region A lba

0% 20% 40% 60% 80% 100%

Romania

Center Region

Alba

Proportion within the arable surface, 2002

Arable surface Pastures and hay f ields veniyards and orchards

Source: Both charts - Alba Iulia statistical department,

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99% of households use wood for heating, and about 60% for cooking. Repeated harvesting of immature forest damages the resource and causes environmental problems Small agricultural fields are used mainly for grazing and hay production. Much of the area is unsuitable for agricultural production but is suited to animal husbandry and forestry/wood. Tourism The tourist season in Roşia Montană runs from May through to September. Apart from a number of small convenience shops (9) and bars (5) there is no tourist-related infrastructure available in Roşia Montană, such as cafes, restaurants, supermarkets, hotels, pensions, hire car facilities, petrol stations, entertainment providers, or activities and services. There is a mining museum and an initiative concerning walking tours. Investments Roşia Montană area is a disadvantaged zone. Investments in the area are concentrated in Campeni, whereas in Roşia Montană there is lack of investment inflows except in mining. The table below describes the principle reasons why investment in Roşia Montană is low: Table 4-5. Main investment disincentives concerning Roşia Montană

Category Description Demographic Aging population dominated by elderly women Financial Significant poverty & lack financial capacity to develop businesses Skills Population skills set dominated by mining and subsistence agriculture Isolation Roşia Montană is relatively remote, situated in a small valley at the end of a road

Infrastructure Utility & transport infrastructure are poorly developed and/or in poor condition; the condition of buildings is generally poor

Environment Roşia Montană’s environment suffers from considerable historical mining impacts Development costs

Costs, including environmental, infrastructure, buildings, etc, are high, in particular to deal with existing pollution legacies

Other centres Other centres, both urban and rural are better positioned regarding the above issues and (would) attract investments over Roşia Montană, such as Campeni

Applicable development funding which Roşia Montană may benefit from comes from the Romanian government, the EU and the World Bank. However, Romanian government, EU and World Bank development priorities do not favor nor particularly support socio-economic development in Roşia Montană. Principal reasons are as follows:

World Bank funding are designed to close unprofitable mines, reduce government direct involvement in mining activities, provide only a limited duration of social support. Additionally their policy is to seek private investors for potentially profitable operations;

Romanian government development priorities do not include Roşia Montană;

Government, EU and the World Bank would prefer private sector investment to address development in Roşia Montană based on the presence of an economically viable mineral resource in Roşia Montană.

Land prices in Roşia Montană

Land and property prices in Rosia Montana have increased since RMGC commenced exploration and development activities. Changes to land and property prices have been driven by the need for RMGC to gain surface rights. This differs from property prices driven by general consumer demand based on the subjective desire to live in one place with respect to another. The Resettlement and Relocation Action Plan (RRAP) describes in detail changes to land and property prices due to RMGC’s surface rights acquisition program.

Since land prices are heavily influenced by RMGC’s program, changes to land prices are not an effective indicator concerning the socio-economic condition of Rosia Montana.

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4.5 Living conditions in the area

Environmentally the area is of low conservation value – water resources (streams, etc) are, by and large, polluted, habitats fragmented, landscape scarred, and on-going anthropogenic impacts occur. Environmental management systems (waste, wastewater, water) are still very weak, poorly developed and sometimes even non-existent5. All these affect the living conditions of the population in the Roşia Montană area. Home ownership Figure 4.13. Community home ownership trends 5 Socio-economic survey, 2002.

Home ownership is a proxy indicator of the wealth of an area (urban, inner city, suburban, rural, town, etc) as well as population dynamic – whether an area has a growing population or a declining one. Between 1997 and 2004, the number of owned dwellings in Rosia Montana decreased by 0.83% overall. Home ownership rose between 1997 to 1999 following RMGC commencing exploratory activities. A significant drop in ownership occurred between 2003 and 2004 as a consequence of RMGC’s property acquisition program (See RRAP). However, in Abrud the decrease in ownership was even more severe at some 5.58% . RMGC has no property acquisition program in Abrud. The decline is due out-migration following economic depression and large-scale mining redundancies particularly affecting Abrud. In Campeni the number of dwellings has steadily increased over the same period. This is most likely because Campeni has a more stable labor market in processing, transportation, education, and public services and which supports a more stable population. See graphs at left. Source of information is the: Alba County Statistic Department)

Source: All charts - Alba Iulia statistical department, 2005

1535

1540

1545

1550

1555

1560

1565

1570

1575

1580

1585

Number of dw ellings

1997 1998 1999 2000 2001 2002 2003 2004

Years

Dwellings in Rosia Montana

Locuinte existente - total -numar RM

2400

2450

2500

2550

2600

2650

2700

Number of dwellings

1997 1998 1999 2000 2001 2002 2003 2004

Year

Dwellings in Abrud

Locuinte existente - total -numar Abrud

2840

2860

2880

2900

2920

2940

2960

Number of dwellings

1997 1998 1999 2000 2001 2002 2003 2004

Years

Dwellings in Campeni

Locuinte existente - total -numar Campeni

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Dwellings – living conditions Figure 4.14. Community living conditions in homes

Current living conditions in the Community are far below EU standards. Basic services such as potable water supply, waste water collection & treatment, reliable energy supply, waste collection and treatment are all poorly developed, if at all, especially in Roşia Montană & Abrud, though less in Câmpeni. Very few households have an inside bathroom and toilet. Electricity is present almost 100% but inhabitants cannot afford to use it for heating. Even in Abrud and Câmpeni, the vast majority of the population use wood for heating, even in the apartment blocks. In Câmpeni, living conditions are higher than in the rest of the Community. The more diverse and higher income base and the population structure have led to a higher degree of development. Consequently this attracts more investment which leads to even further development.

0%10%20%30%40%50%60%70%80%90%

100%

% from dwellings total number

1

CAMPENI

Living conditions in dwellings

WaterHot WaterSewageElectricityWood HeatingBathroomToilet w/water

0%10%20%30%40%50%60%70%80%90%

100%

% from total dwelling nr

1

ABRUD

Living conditions in dwellings

WaterHot WaterSewageElectricityWood HeatingBathroomToilet w/water

0%10%20%30%40%50%60%70%80%90%

100%

% from total dwellings

1

Rosia Montana

Living condition in dwellings

WaterHot WaterSewageElectricityWood HeatingBathroomToilet w/water

Source: All graphs - Alba County Statistic Department,

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Source:\Romania & Alba – Romania Ministry of Health website; Roşia Montană – EHC health assessment, 2006.

4.6 Health status

Information on the disease rate at the inhabitants’ level According to the socio economic survey in 2002, 62% of households interviewed in Roşia Montană had one or more members who sought medical attention for serious illnesses in the past year. Causes of health problems could include occupational hazards (particularly mining), as well as a fatty diet, stress and alcoholism. Also, existing mining and ore processing facilities are in poor condition and pose safety hazards to workers and risks to the environment. Figure 4.15. Incidence of Ischaemic heart disease in the Community

Ischaemic heart disease 100 000 inhabitants

0.00

1000.00

2000.00 3000.00

4000.00

5000.00

6000.00

ROMÂNIA ALBA Roşia Montană

A health baseline study conducted in Dec 2005 and Jan 20066 concluded that the health status of the population living in Rosia Montana is worse compared to that of people living other areas both in the vicinity and regionally. For some diseases risks are higher for people in Bucium and Certej The table below summarises the principal findings regarding health risks along with estimated costs of a medical check up. 6 Environmental Health Centre, Cluj Napoca, Romania.

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Health risks in Roşia Montană Acute disease is of short duration, rapidly progressive, and in need of urgent care. Acute is a measure of time scale of a disease and is in contrast to chronic which indicates indefinite duration or virtually no change. The time scale depends on the particular disease. Table 4.6 describes the risk of acute and chronic diseases in Roşia Montană and the estimated costs of diagnosis. Table 4-6. Health risks in Roşia Montană

Disease group Acute: risk to develop* Chronic: risk to develop* Estimated costs of

diagnosis

Endocrine

Malignant neoplasms Thyroid and other endocrine glands: 865.6 RON

Respiratory diseases

Significantly higher risk in Rosia Montana compared to other localities, with two exceptions: 1) Bucium and Certege have higher risks, and 2) in some localities with small number of inhabitants.

The probability is higher within the population from Rosia Montana, with the exceptions Certege and Bucium

Lung diseases due to external agents: 280.3 RON Asthma: 317.6 RON Bronchiectasis: 347.6 RON Malignant neoplasms Respiratory and intrathoracic organs: 531.6 RON Malignant neoplasms Lip, oral cavity and pharynx: 904.6 RON

Cardiovascular diseases No data

Chronic cardiovascular diseases are significantly higher in Rosia Montana than in the research area, while in Certege (for all categories) and in Bucium (one category) it is the opposite

Digestive diseases

The risk is significantly higher for living in Rosia Montana compared to all the investigated localities

for chronic digestive diseases there is no specific trend in terms of spatial distribution

Toxic liver disease: 433.4 RON Fibrosis and cirrhosis of liver: 593.4 RON Malignant neoplasms Digestive organs: 641.6 RON

Blood diseases No data

chronic blood and blood forming organ diseases recorded either high or low risks in Rosia Montana without a specific spatial distribution trend

Iron-deficiency anemia: 262.1 RON Malignant neoplasms, stated or presumed to be primary, of lymphoid, haematopoietic and related tissue: 2287.1 RON

Skin diseases

risks of developing acute skin diseases is higher within the population from Rosia Montana

chronic skin diseases indicate significantly higher risks in Rosia Montana compared to Abrud

Dermatitis and eczema:137.5 RON Urticaria and erythema: 286.9 RON Malignant neoplasms Skin: 309.6 RON

Diabetes No data

diabetes has been found to be more prevalent within the inhabitants from Rosia Montana than in the population groups from Abrud and Campeni, while for the other chronic endocrine diseases there is no specific trend in terms of spatial distribution (situation similar to chronic digestive diseases)

Musculoskeletal diseases No data chronic musculoskeletal and connective

tissue diseases showed higher risks in Arthrosis -252 RON

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Disease group Acute: risk to develop* Chronic: risk to develop* Estimated costs of

diagnosis Rosia Montana versus the investigated localities, while in Certege and Bucium the risks are higher than in Rosia Montana

Nervous system diseases No data

the risks of developing chronic nervous system diseases is either higher or lower in Rosia Montana compared to the rest of investigated locations

Polyneuropathies and other disorders of the peripheral nervous system: 393.9 RON

Ocular

risks of developing acute ocular diseases is higher for Rosia Montana, with one exception recorded for the people living in Certege

No data Disorders of optic nerve and visual pathways: 395 RON

Genitourinary diseases

risks of developing genito-urinary system diseases is higher for the inhabitants of Rosia Montana, the exception being for Bucium

chronic genito-urinary system diseases indicate significant higher risks for the population living in Rosia Montana compared to the population groups from the other investigated areas

Urolithiasis: 410.4 RON Malignant neoplasms Urinary tract: 583.1 RON

Added to the costs of diagnosis will be medication costs and any treatment. Incomes in the Community are very low whilst the relative cost of living is high, so that low income groups may not have available financial resources to support the cost of proper medical care. The situation is more severe for those people who are not included in a health insurance system such as the inactive population (see Section 4.4 above), compounded by mining redundancies which have reduced or even removed the social safety net of many people. Health conditions in Roşia Montană are predicted to improve as a result of expected improvements in environmental conditions (source: EHC, HRA) due to the resettlement process removing people from higher risk areas, and mitigation strategies of the RMP in the historical and other areas. It is predicted therefore that there will be a decrease in incidences for most of the investigated diseases over the life of the RMP. Considering the high prevalence of the investigated diseases as a baseline and the related medical costs as mentioned above, a decrease in incidences will result in the improvement of the health status in the area.

4.7 Civil Society

Several small associations are active in Abrud or in Roşia Montană in the fields of social assistance, sport sponsoring, and environment. Most actions are small-scale and these organizations are perceived as highly dependent on their leader or founder. In addition to these, parents’ associations and religious congregations are active throughout the CSDP area. Two organisations are currently active in Roşia Montană in reaction to RMGC’s project:

Alburnus Maior Goldminers Association was set up in Roşia Montană village in 2000 in reaction to the information delivered by RMGC, which was perceived as unfair by some citizens. Its intention was to protect inhabitants’ rights especially relating to real estate. Alburnus Maior Goldminers Association s clearly and consistently opposed to the RMP.

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The activities of Alburnus Maior Goldminers Association have resulted in several delays to the RMP. This has had a negative impact in terms of the business plans of RMGC and on some Community socio-economic indicators such as employment, investment through-flows, values of revenue to local authorities, amongst others.

The Pro Roşia Montană association appeared later as a reaction to Alburnus Maior

Goldminers Association, and supports RMGC’s Project. The members of this association are generally young people, some of them employed by Minvest or RMGC.

The Employers’ Association of Abrud and Roşia Montană is a businesspersons’ association. It aims at protecting and advocating for the business community from Abrud and Roşia Montană, in the perspective of the future opportunities in the area.

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Section 5: Institutional Background

Page 33 of 52

5 Institutional Background 5.1 Local and County Government

The main responsibilities of the Local Council (comuna in rural areas and orasul in urban ones) as a part of Local Public Administration include7:

approve and advise socio-economic development, territorial planning and administration programmes;

approve and advise urbanism and territorial planning documentations;

road, bridges and building construction, maintenance and repair, and infrastructure at the local level;

approve the technical and economical documentation for investments

assure the material and financial conditions for optimal working of the public institutions and services (education, health, culture, sports, public security, civil protection, social assistance);

decide in the social partnership field regarding the national and international juridical persons.

The county government institutions include the County Prefecture, which is responsible, amongst others, for regional development and roads of county interest. The General Urban Regulation Decision No. 525/1996 defines the urban plan and regulations, which Local Councils are required to prepare and update for the area within their jurisdiction. The Territorial Planning Plan (TPP) and the General Urban Plan (PUG) and the Regulations constitute the technical and legal basis for any modifications to the area.

5.2 Regional Development Agency

The territory of Romania has been subdivided into 8 development regions, each including several “judete” or counties. Alba County is part of the “Centre” Region 7, which also includes Braşov, Covasna, Harghita, Mureş and Sibiu counties. Each of these 8 regions has a Regional Development Agency (Romanian acronym: ADR), which operates as a planning and coordinating entity. Based in Alba Iulia, the Centre Region ADR operates officially as a Non-governmental organization and implements European Union (PHARE) funds, as well as, possibly, other monies, mostly in the area of grants and loans to small and medium enterprises (SMEs). The Romanian Law on regional development in Romania no.151 of 19988 resulted in the establishment of the various Regional Development Agencies (RDA), sets out the objectives of the RDAs which are:

Balanced development of the regions in particular of disadvantaged areas, and the prevention of new economically disadvantaged areas.

Assistance in the Accession process and of access to the structural funds, and the Cohesion Fund of the European Union;

Implementation and execution of (regional/National) government policies concerning regional development, taking into account local and regional (natural/human) resources supporting sustained socio-economic and cultural development;;

7 Law 215/2001 on local public administration, published in Official Journal 204/23 April 2001. 8 Website with English translation : http://www.dsclex.ro/english/law/law151_998.htm

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Stimulation of interregional cooperation, both internal and international, and of transboundary cooperation, within the framework of the Euro-regions.

The agency has drafted a 2002-2004 Regional Development Planning Strategy for the Centre region, which provides detailed economic baseline on the region economics, and proposes broad priorities for short and mid-term economic development.

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Section 6: Potential Impacts

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6 Potential Impacts 6.1 Identification of the Social Impacts Area

The social and economic impacts can be divided into two broad categories: 1. Direct Impacts 2. Indirect Impacts Direct Impacts Direct impacts refer to the impact on land, assets and people in the Project’s physical footprint zone. Direct impacts are addressed in the RRAP and are specifically related to relocation and resettlement issues. Indirect Impacts Indirect impacts refer to all other impacts that will occur because of the Project. Such impacts include physical – changes to the natural and manmade environment; social – changes due to the consequence of the Project on peoples, such as income, education & training, changes to the social fabric & dynamics due to in-migration & emigration of peoples, etc; economic – flow of monies through the community in the form of taxes, consumer spending and increased demand for services, products and activities in the surrounding areas, amongst others. Indirect impacts are addressed in the Community Sustainable Development Programme. Project Physical Footprint The Project physical footprint zone is described in the RRAP. It is the Project-Affected Area as defined in the RRAP. This zone includes a significant part of Roşia Montană comuna and a small area in Abrud orasul. Project Social Impacts Area Whether positive or negative, indirect Project social impacts are likely to be experienced:

In the rest of the territory of Roşia Montană comuna that will remain unaffected by physical land take, including a small part of Roşia Montană village (the protected historical zone), the settlement of Gura Rosieii along Abrudel river and the main Abrud – Câmpeni road, and a few rural settlements uphill above Roşia Montană and Corna villages;

In Abrud orasul, including Abrud town and its three satellite villages (Abrud Sat, Gura

Corneii – part of which is affected by the Project physical footprint, Soharu);

In Câmpeni town which after Abrud is the town closest to the Project site (6 km). The following table gives an estimate of the concerned population: Table 6-1. Population Size in the Social Impacts Area

Area Population in the Project Physical Footprint

Population in the rest of the Project Social Impacts Area

Roşia Montană comuna

2,050 1,815

Abrud orasul 340 5,873 Câmpeni town 0 6,000

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d de

man

d fo

r acc

ess

to a

nd

qual

ity o

f suc

h se

rvic

es b

y w

orke

rs; t

hrou

gh in

crea

se in

wea

lth le

adin

g to

mor

e in

vest

men

ts

Posi

tive

Med

ium

Lo

ng te

rm

Incr

ease

d cu

ltura

l div

ersi

ty a

nd s

ocia

l rev

italis

atio

n: n

ew e

nerg

ies,

new

initi

ativ

es –

sp

orts

, com

mer

cial

, soc

ial

Posi

tive

Med

ium

-hig

h U

p to

long

-te

rm

Impr

oved

and

incr

ease

d so

cial

div

ersi

ty b

y in

tegr

atio

n of

‘for

eign

’ wor

kers

with

loca

l po

pula

tion,

dire

ctly

(e.g

. via

mar

riage

s) o

r ind

irect

ly th

roug

h de

man

d by

the

wor

kers

+/

- the

ir pa

rtner

s fo

r ser

vice

s in

the

loca

l/reg

iona

l com

mun

ities

Po

sitiv

e M

ediu

m-h

igh

Up

to lo

ng-

term

Ris

ks o

f dis

rupt

ion

and

(cul

tura

l) co

nflic

t with

loca

ls

Neg

ativ

e M

ediu

m

Up

to lo

ng-

term

3

In-flux of predominantly male job-seekers and workers

Soci

al im

pact

s re

late

d to

inte

ract

ions

with

lo

cal p

opul

atio

n

Pote

ntia

lly li

ving

alo

ne, r

isks

that

dis

ease

s, in

clud

ing

sexu

ally

tran

smitt

ed d

isea

ses,

in

clud

ing

HIV

/AID

S, m

ay s

prea

d N

egat

ive

Low

Lo

ng-te

rm

Ris

ks o

f inc

reas

ed u

nem

ploy

men

t and

soc

ial/e

cono

mic

vul

nera

bilit

y N

egat

ive

Hig

h Lo

ng-te

rm

Workforce

4 R

educ

tion

in lo

cal/r

egio

nal w

orkf

orce

as

a re

sult

of M

inve

st c

losi

ng d

own

its o

pera

tion

Rel

ease

of s

kille

d, m

inin

g re

late

d w

orke

rs a

vaila

ble

for e

mpl

oym

ent.

Mag

nitu

de

depe

nds

on h

ow m

any

can

be d

irect

ly e

mpl

oyed

by

RM

GC

or s

ub-c

ontra

ctor

s Po

sitiv

e M

ediu

m

Long

term

5 R

ejuv

enat

ed a

nd im

prov

ed e

mpl

oym

ent m

arke

t an

d po

ssib

ilitie

s

Impr

oved

cas

h in

com

es a

nd in

crea

sed

stan

dard

of l

ivin

g. In

crea

sed

oppo

rtuni

ties

for

indi

vidu

al a

nd fa

mily

dev

elop

men

t, in

clud

ing

com

fort

(bet

ter i

nsul

atio

n, e

tc),

educ

atio

n, re

crea

tion,

& fu

ture

inve

stm

ents

Po

sitiv

e H

igh

Long

term

6 Ad

ult e

duca

tion,

voc

atio

nal t

rain

ing,

on

the

job

train

ing

Incr

ease

d op

portu

nitie

s to

exp

loit

empl

oym

ent o

peni

ngs,

dev

elop

ow

n en

terp

rises

, fill

serv

ice-

dem

and

gaps

Po

sitiv

e H

igh

Long

term

Social fabric & quality of life

7 Im

prov

ed h

ealth

ser

vice

s an

d fa

cilit

ies

Bette

r hea

lth p

ossi

bilit

ies

parti

cula

rly fo

r eld

erly

& d

isad

vant

aged

gro

ups

Posi

tive

Hig

h Lo

ng te

rm

Page 37: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 6:

Pot

entia

l Im

pact

s P

age

37 o

f 52

Topi

c #

Act

ions

des

crip

tion

Impa

ct/ e

ffect

Ty

pe

Mag

ni-tu

de

Dur

atio

n

8 R

enov

atio

n or

con

stru

ctio

n of

new

inf

rast

ruct

ure

and

serv

ices

, inc

ludi

ng w

aste

, ele

ctric

ity, w

ater

, se

wag

e &

road

s

Impr

oved

bas

ic &

com

mon

infra

stru

ctur

e, &

ass

ocia

ted

heal

th im

prov

emen

ts.

Impr

oved

ince

ntiv

e to

acc

ess

regi

on o

r sta

y in

regi

on d

ue to

incr

ease

in c

omfo

rt fa

ctor

. Ben

efic

ial t

o to

uris

t pos

sibi

litie

s Po

sitiv

e H

igh

Long

term

Cul

tura

l rei

nvig

orat

ion

and

revi

talis

atio

n, in

trodu

ctio

n of

new

cul

tura

l dyn

amic

s.

Posi

tive

Med

ium

M

ediu

m-

long

term

9

Expo

sure

to n

ew c

ultu

res

(oth

er R

oman

ians

&

expa

triat

es)

Stre

ss &

con

flict

due

to c

hang

e, u

ncer

tain

ty &

neg

otia

tions

. Res

entm

ent,

dist

rust

, fea

r of

new

& u

nkno

wn

cultu

res,

per

sons

N

egat

ive

Med

ium

M

ediu

m

term

Dis

rupt

ion

to th

e lo

cal s

ocia

l fab

ric a

nd s

olid

arity

net

wor

ks. M

ainl

y de

trim

enta

l to

the

mos

t vul

nera

ble

indi

vidu

als

such

as

the

elde

rly a

nd d

isab

led

Neg

ativ

e H

igh

Long

term

10

Res

ettle

men

t (of

a p

art)

of th

e co

mm

unity

Im

prov

ed li

ving

con

ditio

ns th

roug

h ne

w b

uild

ings

, bet

ter i

nfra

stru

ctur

e, im

prov

ed

acce

ss to

(bet

ter)

com

mun

ity s

ervi

ces

Posi

tive

Med

ium

Po

tent

ially

lo

ng te

rm

Incr

ease

d w

ealth

to lo

cal p

rope

rty o

wne

rs /

oper

ator

s. O

ppor

tuni

ties

to li

quid

ate

asse

ts o

r con

vert

tang

ible

ass

ets

to in

tang

ible

ass

ets.

Pos

sibi

lity

to in

vest

in

oppo

rtuni

ties

othe

rwis

e de

nied

loca

ls.

Posi

tive

Med

ium

Po

tent

ially

lo

ng te

rm

11

Dem

and

for l

ocal

ser

vice

s, in

frast

ruct

ure

incl

udin

g ho

mes

, lan

d, o

ther

loca

l res

ourc

es &

pr

oper

ties.

Lo

ss o

f fam

ily h

omes

, are

a an

d m

emor

ies.

Lo

ss o

f est

ablis

hed

supp

ort n

etw

orks

and

nei

ghbo

rhoo

ds

Neg

ativ

e M

ediu

m

Pote

ntia

lly

long

term

12

The

Proj

ect c

onst

ruct

ion

and

oper

atio

n

tem

pora

rily

or p

erm

anen

tly in

terr

upts

or l

imits

ac

cess

to re

side

nces

and

bus

ines

ses

If re

side

nce,

resi

dent

mus

t mov

e ei

ther

tem

pora

rily

or p

erm

anen

tly (r

eset

tlem

ent).

If

busi

ness

, pot

entia

l of s

igni

fican

t los

s of

bus

ines

s. B

usin

ess

mus

t rel

ocat

e or

clo

se.

Poss

ibilit

y to

re-o

pen

if ac

cess

is te

mpo

raril

y re

stric

ted.

N

egat

ive

Hig

h U

p to

long

te

rm

13

The

Proj

ect c

onst

ruct

ion

and

oper

atio

n re

stric

ts

eith

er te

mpo

raril

y or

per

man

ently

acc

ess

to

field

s, p

astu

re, f

ores

t and

oth

er n

atur

al

reso

urce

s

Poss

ible

sig

nific

ant i

mpa

ct o

n su

bsis

tenc

e ag

ricul

tura

l liv

elih

ood

of p

eopl

e.

Inte

rrupt

ion

to s

easo

nal a

gric

ultu

ral p

ract

ices

and

ani

mal

hus

band

ry.

Neg

ativ

e H

igh

Long

-term

Access

14

Impr

oved

tran

spor

t inf

rast

ruct

ure

to lo

calit

y an

d re

gion

via

upg

radi

ng ro

ad li

nk &

logi

stic

al

supp

ort

Easi

er in

gres

s &

egre

ss o

f reg

ion

by p

eopl

e in

clud

ing

tour

ists

. Pro

mot

ion

of re

gion

for

(tour

ist/a

ltern

ativ

e) d

evel

opm

ent,

lead

ing

to s

usta

ined

soc

ial-e

cono

mic

dev

elop

men

t Po

sitiv

e H

igh

Long

term

15

Incr

ease

in fi

scal

reso

urce

s av

aila

ble

to lo

cal

Gov

ernm

ents

via

taxe

s In

crea

sed

budg

et o

f loc

al g

over

nmen

ts, i

mpr

oved

abi

lity

to d

evel

op lo

cal c

ivic

se

rvic

es: e

duca

tion,

hea

lth, t

rans

port,

etc

. Po

sitiv

e H

igh

Long

-term

16

Incr

ease

in fi

scal

reso

urce

s av

aila

ble

to c

entra

l G

over

nmen

t via

taxe

s &

roya

lties

C

ontri

butio

n to

nat

iona

l dev

elop

men

t by

incr

ease

d in

com

e av

aila

ble.

Po

sitiv

e M

ediu

m

Long

-term

17

Ris

k th

at ta

xes

and

reve

nues

are

not

prim

arily

us

ed fo

r loc

al d

evel

opm

ent

Con

tribu

tion

to c

entra

l gov

ernm

ent u

nlik

ely

to b

e ea

rmar

ked

for l

ocal

dev

elop

men

t. C

hanc

e th

at p

riorit

ies

of lo

cal g

over

nmen

t do

not r

efle

ct s

peci

fic p

opul

atio

n-re

late

d ne

eds

and

wan

ts

Neg

ativ

e M

ediu

m

Med

ium

-lo

ng te

rm

Economy

18

Ris

ks re

late

d w

ith p

oten

tial n

on e

quita

ble

dist

ribut

ion

of P

roje

ct b

enef

its th

roug

hout

co

mm

unity

Elde

rly, o

lder

wor

kers

bei

ng u

nabl

e to

mai

ntai

n em

ploy

men

t afte

r Min

vest

clo

ses

dow

n, d

isad

vant

aged

peo

ple

lack

ing

capa

city

(int

elle

ctua

l, ed

ucat

iona

l, ph

ysic

al) t

o ex

ploi

t new

opp

ortu

nitie

s N

egat

ive

Med

ium

ov

eral

l, bu

t H

igh

for

indi

vidu

als

Long

term

Page 38: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 6:

Pot

entia

l Im

pact

s P

age

38 o

f 52

Topi

c #

Act

ions

des

crip

tion

Impa

ct/ e

ffect

Ty

pe

Mag

ni-tu

de

Dur

atio

n

19

Incr

ease

d di

rect

& in

dire

ct e

mpl

oym

ent

Flow

on

effe

cts

of p

rese

nce

of m

ajor

eco

nom

ic in

vest

men

t thr

ough

out c

omm

unity

, to

natio

nal l

evel

. 1:1

0 di

rect

/indi

rect

em

ploy

men

t: jo

b cr

eatio

n.

Posi

tive

Hig

h Lo

ng te

rm

20

Incr

ease

d in

com

e

In c

ompa

rison

to a

‘no-

min

e’ s

cena

rio, i

ncom

es w

ill ris

e Po

sitiv

e H

igh

Long

term

21

Loss

of t

rain

ed s

taff

from

oth

er o

rgan

izat

ions

&

busi

ness

es to

RM

GC

C

apac

ity d

rain

to fi

ll hi

gher

-pay

ing/

bette

r ben

efits

pos

ition

with

RM

GC

. Red

uced

ca

paci

ty a

vaila

ble

to o

ther

bus

ines

ses

Neg

ativ

e M

ediu

m

Shor

t-m

ediu

m

term

22

Incr

ease

d in

com

e fo

r tho

se e

ngag

ed in

sm

all

busi

ness

Req

uire

men

ts o

f sup

ply

of a

div

erse

rang

e of

ser

vice

s, m

ater

ials

& p

rodu

cts

for t

he

RM

P dr

ive

dem

and

for s

ourc

ing

serv

ices

, etc

, loc

ally

, lea

ding

to in

crea

se in

com

e to

lo

cal b

usin

esse

s. A

lso

prov

ides

ince

ntiv

e to

dev

elop

loca

l bus

ines

ses

to s

uppl

y R

MP

& re

late

d/sp

in o

ff de

man

d.

Posi

tive

Med

ium

to h

igh

Long

term

23

Dis

rupt

ion

to b

usin

esse

s lo

cate

d in

the

Proj

ect-

Impa

cted

Are

a Te

mpo

rary

to p

erm

anen

t los

s of

bus

ines

s re

venu

e. L

oss

of in

com

e an

d oc

cupa

tion

to

busi

ness

peo

ple.

N

egat

ive

Low

to H

igh

Shor

t to

long

te

rm

24

Incr

ease

d vi

sibi

lity

of C

omm

unity

and

regi

on fo

r ot

her i

nves

tmen

ts (i

.e. r

egio

nal d

evel

opm

ent)

Incr

ease

in c

onfid

ence

for F

orei

gn D

irect

Inve

stm

ent,

loca

lly to

Ros

ia M

onta

na,

natio

nally

bas

ed o

n co

nfirm

atio

n m

ajor

bus

ines

s in

vest

men

t is

poss

ible

, to

regi

onal

in

clud

ing

neig

hbou

ring

coun

tries

. Po

sitiv

e U

p to

hig

h Lo

ng te

rm

25

Trai

ned

labo

ur fo

rce

Skill

ed, m

ulti-

disc

iplin

ary

labo

ur fo

rce

follo

win

g ca

paci

ty b

uild

ing

and

expe

rienc

e re

quire

d to

wor

k in

the

min

e an

d an

cilla

ry in

dust

ries

Posi

tive

Hig

h Lo

ng te

rm

26

Incr

ease

d cr

edit

oppo

rtuni

ty fo

r peo

ple

thro

ugh

colla

tera

l due

to c

lear

er p

rope

rty ti

tles

Mod

ern

soph

istic

ated

sur

vey

and

cada

stre

tech

niqu

es re

solv

e pr

oper

ty o

wne

rshi

p is

sues

, allo

win

g ow

ners

to u

se p

rope

rties

as

colla

tera

l. Po

sitiv

e Lo

w

Long

term

27

Infla

tion

C

ause

d by

ove

rall

incr

ease

in e

cono

mic

act

ivity

& w

ealth

of r

egio

n. P

oten

tially

de

trim

enta

l to

the

poor

est i

n th

e co

mm

unity

N

egat

ive

Med

ium

Sh

ort-t

erm

Incr

ease

in lo

cal e

cono

mic

act

ivity

follo

win

g co

mm

ence

men

t of c

onst

ruct

ion,

the

mos

t ac

tive

phas

e, in

clud

ing

empl

oym

ent

Posi

tive

Hig

h Sh

ort-t

erm

28

C

onst

ruct

ion

perio

d –

a sh

ort p

erio

d of

rela

tivel

y m

ore

inte

nse

activ

ity

Con

tract

ion

of lo

cal e

cono

mic

act

ivity

at t

he e

nd o

f con

stru

ctio

n, in

clud

ing

retre

nchm

ents

N

egat

ive

Med

ium

Sh

ort-t

erm

29

Incr

ease

d tra

ffic,

par

ticul

arly

at c

onst

ruct

ion

phas

e

Sign

ifica

nt v

olum

es o

f tra

ffic,

par

ticul

arly

larg

e m

achi

nery

incr

ease

s ris

ks to

peo

ple.

R

isk

mos

t acu

te fo

r non

-dis

plac

ed p

eopl

e, p

edes

trian

s, c

yclis

ts, y

oung

and

the

very

ol

d.

Neg

ativ

e H

igh

Shor

t-ter

m

Community safety

30

Min

e co

nstru

ctio

n an

d op

erat

ion

Si

gnifi

cant

indu

stria

l ope

ratio

ns, s

uch

as a

min

e, c

reat

es n

ew s

afet

y ha

zard

s fo

r co

mm

uniti

es p

artic

ular

ly to

non

-dis

plac

ed p

eopl

e.

Neg

ativ

e H

igh

Long

-term

31

Noi

se fr

om in

crea

sed

traffi

c es

peci

ally

dur

ing

cons

truct

ion

Incr

ease

d le

vels

of n

oise

will

be

expe

rienc

ed a

s a

resu

lt of

traf

fic to

and

from

the

site

, in

add

ition

to n

oise

from

the

site

itse

lf N

egat

ive

Mod

erat

e Pe

riodi

c

Community amenity

32

Dus

t fro

m s

ite o

pera

tions

esp

ecia

lly d

urin

g co

nstru

ctio

n D

ust r

aise

d by

site

ope

ratio

ns,

may

be

blow

n to

war

ds a

djac

ent s

ettle

men

ts a

nd

settl

e, g

ivin

g ris

e to

a d

ust n

uisa

nce

issu

e N

egat

ive

Mod

erat

e Pe

riodi

c

Page 39: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 6:

Pot

entia

l Im

pact

s P

age

39 o

f 52

Topi

c #

Act

ions

des

crip

tion

Impa

ct/ e

ffect

Ty

pe

Mag

ni-tu

de

Dur

atio

n

33

Sign

ifica

nt e

cono

mic

impa

cts

follo

win

g m

ine

clos

ure.

N

egat

ive

Hig

h Lo

ng te

rm

34

Out

mig

ratio

n of

ski

lled

wor

kers

, you

ng e

duca

ted

peop

le le

ave,

dem

ogra

phy

(aga

in)

refle

cts

aged

pop

ulat

ion

Neg

ativ

e H

igh

Long

term

35

Inap

prop

riate

or i

nsuf

ficie

nt p

lann

ing

& pr

epar

atio

n fo

r alte

rnat

ive

sust

aina

ble

econ

omic

ac

tiviti

es d

urin

g m

ine

Dec

reas

e in

pop

ulat

ion

to b

elow

dem

ogra

phic

ally

& e

cono

mic

ally

sus

tain

able

leve

ls;

Roş

ia M

onta

nă d

eclin

es a

s a

villa

ge

Neg

ativ

e H

igh

Long

term

Closure

36

Roş

ia M

onta

nă’s

soc

io-e

cono

mic

indi

cato

rs

dem

onst

rate

pos

itive

gro

wth

R

oşia

Mon

tană

rem

ains

a v

iabl

e, a

ttrac

tive

livin

g ce

ntre

with

a s

usta

inab

le e

cono

my,

po

sitiv

e ec

onom

ic g

row

th &

dyn

amic

pop

ulat

ion

Posi

tive

Hig

h Lo

ng te

rm

Page 40: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social and Economic Environment of Roşia Montană

Section 7: Mitigation and Monitoring Measures, Implementation Responsibilities

Page 40 of 52

7 Mitigation and Monitoring Measures, Implementation Responsibilities

The following tables provide details on mitigation and monitoring measures, as well as implementation responsibilities. Full details are available in the relevant management plans.

Page 41: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 41

of 5

2

Tabl

e 7-

1.

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, &

Res

pons

ibili

ties

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Acquisition of land for purposes of mining operations

Phys

ical

and

eco

nom

ic d

ispl

acem

ent

of p

eopl

e: th

e ac

quis

ition

of a

bout

1,

600

hect

ares

of l

and,

and

di

spla

cem

ent o

f abo

ut 9

70

hous

ehol

ds, m

ost i

n th

e lo

calit

ies

of

Roş

ia M

onta

nă (c

irca

577

hous

ehol

ds a

nd 1

36 a

partm

ents

), C

orna

(ca.

150

hou

seho

lds)

, and

G

ura

Cor

neii

(ca.

111

hou

seho

lds)

.

Land

and

imm

ovea

ble

asse

ts a

cqui

red

from

ow

ners

by

RM

GC

on

the

basi

s of

“willi

ng s

elle

r – w

illing

bu

yer”

tran

sact

ions

. D

ispl

aced

hou

seho

lds

are

elig

ible

to o

ne o

f the

fo

llow

ing

two

optio

ns:

Res

ettle

men

t, in

clud

ing

allo

catio

n of

a re

side

ntia

l pl

ot a

nd re

cons

truct

ion

of re

side

ntia

l hou

ses

in

rese

ttlem

ent s

ites

deve

lope

d by

RM

GC

in P

iatra

Al

ba, R

oşia

Mon

tană

com

una

- or i

n Al

ba Iu

lia, a

nd

othe

r ass

ista

nce

as d

etai

led

in th

e R

RAP

, R

eloc

atio

n, w

here

by th

e di

spla

ced

hous

ehol

d pu

rcha

ses

thei

r new

resi

denc

e th

emse

lves

, usi

ng

the

com

pens

atio

n of

the

affe

cted

ass

ets

at fu

ll re

plac

emen

t val

ue. R

eloc

atio

n al

so in

clud

es o

ther

as

sist

ance

as

deta

iled

in th

e R

RAP

. D

iffer

ent l

ivel

ihoo

d re

stor

atio

n m

easu

res

are

put i

n pl

ace

as d

etai

led

in th

e R

RAP

and

the

CSD

P.

Dis

plac

ed p

eopl

e ha

ve a

cces

s to

a s

peci

fic

grie

vanc

e m

anag

emen

t mec

hani

sm.

Vuln

erab

le p

eopl

e ar

e ad

dres

sed

thro

ugh

a sp

ecifi

c as

sist

ance

pac

kage

. R

eset

tlem

ent a

nd re

loca

tion

mea

sure

s ar

e im

plem

ente

d by

RM

GC

. The

bud

get o

f res

ettle

men

t an

d re

loca

tion

is a

bout

USD

80

M.

Inte

rnal

mon

itorin

g of

: N

egot

iatio

n pr

oces

s an

d co

nclu

sion

of

agre

emen

ts;

Soci

al a

nd e

cono

mic

mon

itorin

g: fo

llow

-up

of th

e ec

onom

ic a

nd s

ocia

l sta

tus

of re

loca

tees

and

re

settl

ers,

acc

ess

to e

mpl

oym

ent,

cost

of

hous

ing

in th

e ar

ea, r

e-es

tabl

ishm

ent o

f ag

ricul

ture

, act

ions

targ

etin

g vu

lner

able

peo

ple;

Te

chni

cal s

uper

visi

on o

f inf

rast

ruct

ure

and

hous

ing

cons

truct

ion,

com

mis

sion

ing;

Im

plem

enta

tion

orga

niza

tion:

ade

quac

y of

sta

ff an

d m

eans

vis

-à-v

is th

e ta

sks;

G

rieva

nces

and

grie

vanc

e m

anag

emen

t sys

tem

; As

sist

ance

in li

velih

ood

rest

orat

ion:

bus

ines

s re

-es

tabl

ishm

ent a

nd a

ssis

tanc

e, s

kills

en

hanc

emen

t and

sm

all l

oans

com

pone

nt;

Hiri

ng o

f Pro

ject

-Affe

cted

Peo

ple

at R

MG

C.

Exte

rnal

eva

luat

ion

as p

er th

e R

RAP

RM

GC

Page 42: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 42

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Loss of public infrastructure in Roşia Montană

Cur

rent

pub

lic in

frast

ruct

ure

and

faci

litie

s in

Ros

ia M

onta

na a

re

rem

oved

from

pub

lic u

se in

ord

er

that

min

ing

oper

atio

ns m

ay

com

men

ce.

Affe

cted

pub

lic in

frast

ruct

ure

will

be re

cons

truct

ed a

t th

e R

osia

Mon

tana

rese

ttlem

ent s

ite in

Pia

tra A

lba.

Pr

ivat

e co

ngre

gatio

nal s

truct

ures

will

be

reco

nstru

cted

or c

ompe

nsat

ed.

A sc

hool

will

be c

onst

ruct

ed a

t Pia

tra A

lba

The

cons

truct

ion

of th

e re

settl

emen

t site

in P

iatra

Al

ba w

ill in

clud

e th

e re

plac

emen

t of a

ll pu

blic

in

frast

ruct

ure,

incl

udin

g th

e To

wn

Hal

l, po

lice

stat

ion,

pos

t offi

ce, c

ultu

ral h

ouse

, new

pia

ta (t

own

cent

re),

heal

thca

re c

entre

and

pha

rmac

y Pi

ped

wat

er, w

ater

born

e se

wer

age,

ele

ctric

ity a

nd

tele

phon

e co

nnec

tions

will

be p

rovi

ded

to a

ll re

settl

emen

t hou

ses

M

ost c

hurc

hes

and

cem

eter

ies

rem

ain

unaf

fect

ed a

s a

resu

lt of

the

prot

ectio

n m

easu

res

that

will

be

impl

emen

ted

in th

e de

sign

ated

his

toric

al p

atrim

ony

prot

ectio

n ar

ea. T

hose

con

greg

atio

nal s

truct

ures

th

at m

ay b

e af

fect

ed w

ill be

eith

er re

cons

truct

ed o

r co

mpe

nsat

ed, a

t the

con

greg

atio

n’s

choi

ce.

Cem

eter

ies

and

grav

es w

ill b

e re

loca

ted

in

acco

rdan

ce to

Rom

ania

n le

gisl

atio

n

Tech

nica

l sup

ervi

sion

of c

onst

ruct

ion

of p

ublic

fa

cilit

ies

Actu

al tr

ansf

er o

f new

pub

lic fa

cilit

ies

Actu

al u

se o

f new

pub

lic fa

cilit

ies

afte

r the

y ha

ve

been

tran

sfer

red

RM

GC

in li

aiso

n w

ith c

entra

l, re

gion

al a

nd

loca

l gov

ernm

ent

inst

itutio

ns, a

nd

relig

ious

co

ngre

gatio

ns

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

In-flux of predominantly male job-seekers and

workers from outside the area

Impact on local infrastructure, housing, basic commodities and

services

Pote

ntia

lly d

etrim

enta

l to

loca

ls v

ia re

duct

ion

in

acce

ss to

and

qua

lity

of

loca

l ser

vice

s.

Com

petit

ion

for s

ervi

ces.

Hiri

ng P

olic

y in

tend

ed to

lim

it jo

b-se

eker

s in

flux

by

givi

ng p

riorit

y to

loca

ls fo

r rec

ruitm

ent b

y R

MG

C,

EPC

con

tract

ors

and

sub-

cont

ract

ors,

and

nat

iona

l, re

gion

al a

nd lo

cal p

ublic

atio

n of

this

pol

icy

Acco

mm

odat

ion

of n

on lo

cal w

orke

rs in

a s

peci

fic

cons

truct

ion

cam

p ha

ving

its

own

wat

er s

uppl

y an

d w

aste

trea

tmen

t fac

ilitie

s

Qua

rterly

sta

tistic

s pr

esen

ting

for R

MG

C a

nd

each

EPC

con

tract

or (i

nclu

ding

sub

-con

tract

ors

with

mor

e th

an 1

0 w

orkf

orce

) the

num

bers

of

loca

ls /

natio

nals

/ ex

patri

ates

in m

anag

emen

t /

skille

d / s

emi-s

kille

d an

d un

skill

ed p

ositi

ons;

th

ese

stat

istic

s sh

all b

e pu

blic

ly re

leas

ed a

s pa

rt of

the

Proj

ect o

vera

ll en

viro

nmen

tal a

nd s

ocia

l m

onito

ring

repo

rts

Num

bers

acc

omm

odat

ed a

t the

con

stru

ctio

n ca

mp

to b

e m

onito

red

on a

qua

rterly

bas

is

agai

nst t

he to

tal w

orkf

orce

EPC

con

tract

ors

to a

pply

em

ploy

men

t pr

oced

ures

co

mpl

iant

with

R

MG

C’s

hiri

ng

polic

y an

d R

MG

C to

m

onito

r co

mpl

ianc

e.

Page 43: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 43

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Impr

ovem

ents

in lo

cal

serv

ices

, etc

, thr

ough

in

crea

sed

dem

and

for

acce

ss to

and

qua

lity

of

such

ser

vice

s by

wor

kers

; th

roug

h in

crea

se in

w

ealth

lead

ing

to m

ore

inve

stm

ents

No

miti

gatio

n ne

cess

ary

Social impacts related to interactions with local population

Incr

ease

d cu

ltura

l and

so

cial

div

ersi

ty a

nd

revi

talis

atio

n: n

ew

ener

gies

, new

initi

ativ

es –

sp

orts

, com

mer

cial

, so

cial

. Int

egra

tion

of

‘fore

ign’

wor

kers

with

lo

cal p

opul

atio

n th

roug

h,

dire

ct (e

.g. v

ia m

arria

ges)

or

indi

rect

mea

ns s

uch

as

dem

and

by th

e w

orke

rs

+/- t

heir

partn

ers

for

serv

ices

in th

e lo

cal/r

egio

nal

com

mun

ities

No

miti

gatio

n ne

cess

ary

RM

GC

C

omm

unity

su

stai

nabl

e de

velo

pmen

t pl

an

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P.

In-fl

ux o

f pr

edom

inan

tly

mal

e jo

b-se

eker

s

and

wor

kers

from

ou

tsid

e th

e ar

ea

impacts related to interactions with local

Ris

ks o

f dis

rupt

ion

and

(cul

tura

l) co

nflic

t with

lo

cals

Hiri

ng P

olic

y gi

ving

prio

rity

to lo

cals

for r

ecru

itmen

t by

RM

GC

, EPC

con

tract

ors

and

sub-

cont

ract

ors.

Em

phas

is o

n eq

ual o

ppor

tuni

ty e

mpl

oym

ent t

o in

crea

se n

umbe

rs o

f wom

en in

the

wor

kfor

ce.

Wor

kers

’ com

plia

nce

with

cod

e of

con

duct

(n

umbe

r of r

epor

ted

non

com

plia

nces

and

nu

mbe

r of s

anct

ions

take

n fo

r non

com

plyi

ng)

Eval

uatio

n of

the

effe

ctiv

enes

s of

the

code

of

cond

uct i

n av

oidi

ng d

iffic

ultie

s be

twee

n w

orke

rs

EPC

Con

tract

ors

to p

repa

re a

nd

impl

emen

t cod

e of

con

duct

, R

MG

C to

Page 44: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 44

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Social impacts related to interactions with local population

In-m

igra

ted

wor

kers

po

tent

ially

livi

ng a

lone

, ris

ks th

at d

isea

ses,

in

clud

ing

sexu

ally

tra

nsm

itted

dis

ease

s,

incl

udin

g H

IV/A

IDS,

may

sp

read

Emph

asis

on

mar

ried

men

or m

en w

ith lo

ng te

rm

partn

ers.

W

orke

rs’ C

ode

of C

ondu

ct; C

omm

unity

Hea

lth

Polic

y:

• H

ealth

incl

udin

g ST

D a

war

enes

s tra

inin

g •

Free

con

dom

dis

tribu

tion

• H

ealth

aw

aren

ess

cam

paig

n in

com

mun

ity

• W

orke

rs c

linic

and

the

loca

l com

mun

ities

N

umbe

r of h

ealth

cam

paig

ns, m

etho

ds u

sed,

at

tend

ance

, bot

h w

ithin

the

wor

kfor

ce a

nd th

e co

mm

unity

H

ealth

aw

aren

ess

train

ing

cour

ses

for w

orke

rs

(par

t of i

ncep

tion

train

ing)

N

umbe

r of c

ours

e pa

rtici

pant

s Av

aila

bilit

y of

con

dom

s H

eath

aw

aren

ess

train

ing

in c

omm

unity

(par

t of

scho

ol c

urric

ulum

, par

t of g

ener

al h

ealth

ca

mpa

ign)

mon

itor

com

plia

nce

RM

GC

liai

se w

ith

loca

l, re

gion

al

and

natio

nal

publ

ic h

ealth

au

thor

ities

&

NG

Os.

C

ontra

ctor

s to

pr

epar

e an

d im

plem

ent h

ealth

pl

ans

Clo

sure

of

Min

vest

/Ros

iam

in

min

es in

200

7 un

der c

urre

nt

gove

rnm

ent

plan

s

Red

uctio

n in

loca

l/reg

iona

l w

orkf

orce

, inc

reas

e in

un

empl

oym

ent (

to 9

0%),

out-

mig

ratio

n of

abl

e-bo

died

& (m

ost)

skille

d w

orke

rs s

eeki

ng o

ther

em

ploy

men

t.

Hiri

ng P

olic

y pr

iorit

izin

g ex

-Min

vest

/Ros

iam

in

wor

kers

for r

e-em

ploy

men

t by

RM

GC

, EPC

co

ntra

ctor

s an

d su

b-co

ntra

ctor

s R

e-tra

inin

g as

par

t of c

omm

unity

dev

elop

men

t pr

ogra

mm

e un

der C

SDP

Qua

rterly

sta

tistic

s pr

esen

ting

for R

MG

C a

nd

each

EPC

con

tract

or (i

nclu

ding

sub

-con

tract

ors

with

mor

e th

an 1

0 w

orkf

orce

) the

num

bers

of e

x-R

osia

min

wor

kers

in m

anag

emen

t / s

kille

d /

sem

i-ski

lled

and

unsk

illed

posi

tions

N

umbe

r of e

x-R

osia

min

em

ploy

ees

atte

ndin

g &

finis

hing

re-tr

aini

ng p

rogr

amm

es. N

umbe

r in

empl

oym

ent.

EPC

con

tract

ors

com

ply

with

R

MG

C

empl

oym

ent

proc

edur

es.

RM

GC

to re

view

an

d ac

cept

em

ploy

men

t pr

oced

ures

prio

r to

fina

lizin

g co

ntra

cts.

R

MG

C to

m

onito

r co

mpl

ianc

e

Rej

uven

ated

and

im

prov

ed

empl

oym

ent

mar

ket a

nd

poss

ibilit

ies

Impr

oved

cas

h in

com

es a

nd

incr

ease

d st

anda

rd o

f liv

ing.

In

crea

sed

oppo

rtuni

ties

for i

ndiv

idua

l an

d fa

mily

dev

elop

men

t, in

clud

ing

com

fort

(bet

ter i

nsul

atio

n, e

tc),

educ

atio

n, re

crea

tion,

& fu

ture

in

vest

men

ts

No

miti

gatio

n ne

cess

ary

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P.

Page 45: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 45

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Adul

t edu

catio

n,

voca

tiona

l tra

inin

g, o

n th

e jo

b tra

inin

g

Incr

ease

d op

portu

nitie

s to

exp

loit

empl

oym

ent o

peni

ngs,

dev

elop

ow

n en

terp

rises

, fill

serv

ice-

dem

and

gaps

Impr

oved

hea

lth

serv

ices

and

fa

cilit

ies

Bette

r hea

lth p

ossi

bilit

ies

parti

cula

rly

for e

lder

ly &

dis

adva

ntag

ed g

roup

s N

o m

itiga

tion

nece

ssar

y

RM

GC

+ lo

cal

utilit

y &

infra

stru

ctur

e or

gani

satio

ns

Ren

ovat

ion

or

cons

truct

ion

of

new

in

frast

ruct

ure

and

serv

ices

, in

clud

ing

was

te,

elec

trici

ty, w

ater

, se

wag

e &

road

s

Impr

oved

bas

ic &

com

mon

in

frast

ruct

ure,

& a

ssoc

iate

d he

alth

im

prov

emen

ts. I

mpr

oved

ince

ntiv

e to

ac

cess

regi

on o

r sta

y in

regi

on d

ue

incr

ease

in c

omfo

rt fa

ctor

. Ben

efic

ial

to to

uris

t pos

sibi

litie

s

No

miti

gatio

n ne

cess

ary

RM

GC

+ lo

cal

utilit

y &

infra

stru

ctur

e or

gani

satio

ns

Cul

tura

l rei

nvig

orat

ion

and

revi

tilas

atio

n, in

trodu

ctio

n of

new

cu

ltura

l dyn

amic

s.

No

miti

gatio

n ne

cess

ary

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P.

Expo

sure

to n

ew

cultu

res

(oth

er

Rom

ania

ns &

ex

patri

ates

) St

ress

& c

onfli

ct d

ue to

cha

nge,

un

certa

inty

& n

egot

iatio

ns.

Res

entm

ent,

dist

rust

, fea

r of n

ew &

un

know

n cu

lture

s, p

erso

ns

Hiri

ng P

olic

y gi

ving

prio

rity

to lo

cals

for r

ecru

itmen

t by

RM

GC

, EPC

con

tract

ors

and

sub-

cont

ract

ors,

. Em

phas

is in

equ

al o

ppor

tuni

ty e

mpl

oym

ent t

o in

crea

se n

umbe

rs o

f wom

en in

wor

kfor

ce

Num

ber o

f wor

kers

to b

e ac

com

mod

ated

in O

ld

Ros

ia M

onta

na (P

rote

cted

Zon

e). R

emai

nder

th

roug

hout

com

mun

ities

. Dis

pers

ion

in c

omm

uniti

es

to a

id in

inte

grat

ion

and

prov

ide

mor

e no

rmal

soc

ial

envi

ronm

ent f

or w

orke

rs.

Num

ber o

f wor

kers

acc

omm

odat

ed in

Old

Ros

ia

Mon

tana

. N

umbe

r of w

orke

rs a

ccom

mod

ated

in

com

mun

ities

. N

umbe

r of c

ompl

aint

s –

reco

rded

, file

d an

d ac

ted

upon

. Con

flict

reso

lutio

n re

port

& fo

llow

-up

. Pun

itive

act

ion

agai

nst p

erpe

trato

rs in

ac

cord

ance

to W

orke

rs A

ccom

mod

atio

n Po

licy,

&

Hiri

ng P

olic

y.

RM

GC

&

Acco

mm

odat

ion

Man

agem

ent

Org

anis

atio

n un

der R

osia

M

onta

na

Foun

datio

n.

Res

ettle

men

t (of

a

part)

of t

he

com

mun

ity

Dis

rupt

ion

to th

e lo

cal s

ocia

l fab

ric

and

solid

arity

net

wor

ks. M

ainl

y de

trim

enta

l to

the

mos

t vul

nera

ble

indi

vidu

als

such

as

the

elde

rly a

nd

disa

bled

Vuln

erab

le P

eopl

e Po

licy,

incl

uded

in th

e R

RAP

Pe

ople

hav

e an

opt

ion

to re

settl

e (ra

ther

than

re

loca

te) o

n a

com

mun

ity re

settl

emen

t site

whe

re a

ll co

mm

unity

faci

litie

s ar

e go

ing

to re

cons

truct

ed

Plot

and

hou

se a

lloca

tion

on th

e re

settl

emen

t site

s w

ill at

tem

pt to

mai

ntai

n ne

ighb

orho

od a

nd s

olid

arity

ne

twor

ks

As

per t

he R

RAP

RM

GC

in li

aiso

n w

ith lo

cal

gove

rnm

ent

auth

oriti

es w

ho

have

a le

gal

resp

onsi

bilit

y to

ta

ke c

are

of

vuln

erab

le

peop

le

Page 46: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 46

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Impr

oved

livi

ng c

ondi

tions

thro

ugh

new

bui

ldin

gs, b

ette

r inf

rast

ruct

ure,

im

prov

ed a

cces

s to

(bet

ter)

co

mm

unity

ser

vice

s

No

miti

gatio

n ne

cess

ary

Incr

ease

in

dem

and

for l

ocal

se

rvic

es,

infra

stru

ctur

e in

clud

ing

hom

es,

land

, oth

er lo

cal

reso

urce

s &

prop

ertie

s

Incr

ease

d w

ealth

to lo

cal p

rope

rty

owne

rs /

oper

ator

s. O

ppor

tuni

ties

to

liqui

date

ass

ets

or c

onve

rt ta

ngib

le

asse

ts to

inta

ngib

le a

sset

s.

Poss

ibilit

y to

inve

st in

opp

ortu

nitie

s ot

herw

ise

deni

ed lo

cals

.

No

miti

gatio

n ne

cess

ary

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P.

The

Proj

ect

cons

truct

ion

and

oper

atio

n

tem

pora

rily

or

perm

anen

tly

inte

rrupt

s or

lim

its

acce

ss to

re

side

nces

and

bu

sine

sses

If re

side

nce,

resi

dent

mus

t mov

e ei

ther

tem

pora

rily

or p

erm

anen

tly

(res

ettle

men

t).

If bu

sine

ss, p

oten

tial o

f sig

nific

ant

loss

of b

usin

ess.

Bus

ines

s m

ust

relo

cate

or c

lose

. Pos

sibi

lity

to re

-op

en if

acc

ess

is te

mpo

raril

y re

stric

ted.

Iden

tific

atio

n of

all

acce

ss ro

ads

used

by

the

com

mun

ity p

rior t

o co

nstru

ctio

n / o

pera

tion

and

impl

emen

tatio

n of

per

man

ent o

r tem

pora

ry

alte

rnat

ive

acce

ss s

olut

ions

C

ompe

nsat

ion

paid

for d

amag

es re

sulti

ng fr

om

tem

pora

ry re

stric

tion

of u

se. C

ompe

nsat

ion

rate

s as

pe

r the

RR

AP

The

Proj

ect

cons

truct

ion

and

oper

atio

n re

stric

ts e

ither

te

mpo

raril

y or

pe

rman

ently

ac

cess

to fi

elds

, pa

stur

e, fo

rest

an

d ot

her n

atur

al

reso

urce

s

Poss

ible

sig

nific

ant i

mpa

ct o

n su

bsis

tenc

e ag

ricul

tura

l liv

elih

ood

of

peop

le. I

nter

rupt

ion

to s

easo

nal

agric

ultu

ral p

ract

ices

and

ani

mal

hu

sban

dry.

For e

ach

cont

ract

or, q

uarte

rly n

umbe

rs o

f si

tuat

ions

whe

re th

ey w

ere

unab

le to

mai

ntai

n ac

cess

, with

indi

catio

n of

the

dura

tion

of th

e in

terru

ptio

n C

ash

com

pens

atio

n pa

id fo

r dam

ages

resu

lting

fro

m in

terr

uptio

n of

acc

ess;

or o

ther

mea

sure

s no

ted

and

docu

men

ted.

Con

tract

ors

to

mon

itor &

im

plem

ent

corr

ectiv

e m

easu

res.

R

MG

C to

m

onito

r co

mpl

ianc

e

Impr

oved

tra

nspo

rt in

frast

ruct

ure

to

loca

lity

and

regi

on v

ia

upgr

adin

g ro

ad

link

& lo

gist

ical

su

ppor

t

Easi

er in

gres

s &

egre

ss o

f reg

ion

by

peop

le in

clud

ing

tour

ists

. Pro

mot

ion

of re

gion

for (

tour

ist/a

ltern

ativ

e)

deve

lopm

ent,

lead

ing

to s

usta

ined

so

cial

-eco

nom

ic d

evel

opm

ent

No

miti

gatio

n ne

cess

ary

Page 47: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 47

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Incr

ease

in fi

scal

re

sour

ces

avai

labl

e to

loca

l G

over

nmen

ts v

ia

taxe

s

Incr

ease

d bu

dget

of l

ocal

go

vern

men

ts, i

mpr

oved

abi

lity

to

deve

lop

loca

l civ

ic s

ervi

ces:

ed

ucat

ion,

hea

lth, t

rans

port,

etc

.

Cap

acity

bui

ldin

g to

enh

ance

loca

l gov

ernm

ents

’ ca

paci

ty to

ade

quat

ely

plan

and

dis

burs

e in

crea

sed

reso

urce

s Li

aiso

n w

ith lo

cal g

over

nmen

ts o

n id

entif

icat

ion

of

appr

opria

te d

evel

opm

ent n

eeds

. With

loca

l go

vern

men

t co-

deve

lop

& co

-fina

nce

proj

ects

of

bene

fit to

loca

l com

mun

ities

Amou

nts

paid

ann

ually

in lo

cal t

axes

Pr

ojec

t prio

rity

list f

or d

evel

opm

ent p

roje

cts

Num

ber o

f pro

ject

s be

ing

or h

ave

been

de

velo

ped

Loca

l go

vern

men

ts

Cen

tral

gove

rnm

ent t

o pr

ovid

e ca

paci

ty

build

ing

to lo

cal

gove

rnm

ents

w

ith a

ssis

tanc

e fro

m A

ND

IPR

ZM

and

its e

xter

nal

dono

rs

Incr

ease

in fi

scal

re

sour

ces

avai

labl

e to

ce

ntra

l G

over

nmen

t via

ta

xes

& ro

yalti

es

Con

tribu

tion

to n

atio

nal d

evel

opm

ent

by in

crea

sed

inco

me

avai

labl

e.

No

miti

gatio

n ne

cess

ary

Cen

tral

gove

rnm

ent

Ris

k th

at ta

xes

and

reve

nues

are

no

t prim

arily

use

d fo

r loc

al

deve

lopm

ent

Con

tribu

tion

to c

entra

l gov

ernm

ent

unlik

ely

to b

e ea

rmar

ked

for l

ocal

de

velo

pmen

t. C

hanc

e th

at p

riorit

ies

of lo

cal g

over

nmen

t do

not r

efle

ct

spec

ific

popu

latio

n-re

late

d ne

eds

and

wan

ts

Wor

k in

coo

pera

tion

with

loca

l aut

horit

ies

on p

roje

cts

of b

enef

it to

loca

l com

mun

ities

& re

gion

. RM

GC

to

co-fi

nanc

e as

pect

s of

pro

ject

dev

elop

men

t /

impl

emen

tatio

n.

Num

ber o

f pro

ject

s de

velo

ped

& co

-fina

nced

. Am

ount

s pe

r pro

ject

.

Loca

l go

vern

men

t ag

enci

es &

R

MG

C

Ris

ks re

late

d w

ith

pote

ntia

l non

eq

uita

ble

dist

ribut

ion

of

Proj

ect b

enef

its

thro

ugho

ut

com

mun

ity

Elde

rly, o

lder

wor

kers

bei

ng u

nabl

e to

mai

ntai

n em

ploy

men

t afte

r M

inve

st c

lose

s th

e R

osia

min

op

erat

ion,

dis

adva

ntag

ed p

eopl

e la

ckin

g ca

paci

ty (i

ntel

lect

ual,

educ

atio

nal,

phys

ical

) to

expl

oit n

ew

oppo

rtuni

ties

Iden

tific

atio

n of

spe

cific

indi

vidu

als

at ri

sk. W

ith lo

cal

auth

oriti

es id

entif

y em

ploy

men

t opp

ortu

nitie

s, w

hat

(re-

)trai

ning

is re

quire

d, a

ssis

t in

retra

inin

g, e

tc

As p

er re

-em

ploy

men

t mea

sure

s &

indi

cato

rs

conc

erni

ng e

x-R

osia

min

em

ploy

ees.

N

umbe

rs o

f ide

ntifi

ed p

erso

ns a

ttend

ing

& co

mpl

etin

g re

-trai

ning

. N

umbe

rs o

f ide

ntifi

ed p

erso

ns g

aini

ng

empl

oym

ent.

Loca

l go

vern

men

t ag

enci

es &

R

MG

C, r

elev

ant

NG

Os

if po

ssib

le.

Incr

ease

d di

rect

&

indi

rect

em

ploy

men

t

Flow

on

effe

cts

of p

rese

nce

of m

ajor

ec

onom

ic in

vest

men

t thr

ough

out

com

mun

ity, t

o na

tiona

l lev

el. 1

:4

dire

ct/in

dire

ct e

mpl

oym

ent:

job

crea

tion.

No

miti

gatio

n ne

cess

ary

Incr

ease

d in

com

e In

com

paris

on to

a ‘n

o-m

ine’

sc

enar

io, i

ncom

es w

ill ris

e N

o m

itiga

tion

nece

ssar

y

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P

Page 48: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 48

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Loss

of t

rain

ed

staf

f fro

m o

ther

or

gani

zatio

ns &

bu

sine

sses

to

RM

GC

Cap

acity

dra

in to

fill

high

er-

payi

ng/b

ette

r ben

efits

pos

ition

with

R

MG

C. R

educ

ed c

apac

ity a

vaila

ble

to o

ther

bus

ines

ses

Iden

tific

atio

n of

wor

k-ca

paci

ty n

eeds

of R

MG

C p

er

proj

ect d

evel

opm

ent p

hase

bro

ken

dow

n in

to

spec

ific

skill

s ca

tego

ries

with

app

roxi

mat

e %

w

orkf

orce

. Gap

ana

lysi

s of

exi

stin

g ca

paci

ty in

su

rroun

ding

regi

ons

rela

tive

to R

MG

C d

eman

ds.

Base

d on

gap

ana

lysi

s, s

kills

enh

ance

men

t, ad

ult

educ

atio

n &

voca

tiona

l tra

inin

g to

be

cond

ucte

d by

R

MG

C s

uppo

rted

initi

ativ

es le

adin

g to

incr

ease

d ca

paci

ty le

vel t

o su

pply

RM

GC

nee

ds w

hils

t m

aint

aini

ng c

apac

ity fo

r reg

iona

l bus

ines

s ne

eds.

D

eman

d fo

r em

ploy

men

t will

driv

e hi

gher

sal

arie

s &

bette

r con

ditio

ns in

crea

sing

ove

rall

capa

city

in

regi

on b

y en

cour

agin

g su

itabl

y qu

alifi

ed w

orke

rs to

th

e re

gion

.

Asse

ssm

ent o

f RM

GC

cap

acity

nee

d.

Asse

ssm

ent o

f reg

iona

l tec

hnic

al c

apac

ity to

m

eet R

MG

C n

eeds

. Gap

ana

lysi

s of

regi

onal

ca

paci

ty re

lativ

e to

RM

GC

nee

ds.

Trai

ning

pro

gram

s de

velo

ped

& im

plem

ente

d,

num

ber o

f atte

ndee

s, n

umbe

r of g

radu

ates

, nu

mbe

r in

posi

tion.

O

ngoi

ng a

sses

smen

t of c

apac

ity in

bus

ines

ses

in s

urro

undi

ng re

gion

s to

ens

ure

suffi

cien

t is

avai

labl

e.

RM

GC

bas

ed o

n its

Hiri

ng P

olic

y.

EPC

con

tract

ors

to c

ompl

y w

ith

Hiri

ng P

olic

y.

RM

GC

to

mon

itor r

egio

nal

capa

city

leve

ls to

en

sure

loca

l bu

sine

ss d

o no

t su

ffer c

apac

ity

loss

to th

eir

detri

men

t.

Incr

ease

d in

com

e fo

r tho

se

enga

ged

in s

mal

l bu

sine

ss

Req

uire

men

ts o

f sup

ply

of a

div

erse

ra

nge

of s

ervi

ces,

mat

eria

ls &

pr

oduc

ts fo

r the

RM

P dr

ive

dem

and

for s

ourc

ing

serv

ices

, etc

, loc

ally

, le

adin

g to

incr

ease

inco

me

to lo

cal

busi

ness

es. A

lso

prov

ides

ince

ntiv

e to

dev

elop

loca

l bus

ines

ses

to

supp

ly R

MP

& re

late

d/sp

in o

ff de

man

d.

Stim

ulat

ion

of b

usin

ess

thro

ugh

Smal

l Bus

ines

s Fu

nd, M

icro

-fina

ncin

g, S

kills

-enh

ance

men

t fun

d +

othe

r ini

tiativ

es c

oord

inat

ed b

y in

depe

nden

t Ros

ia

Mon

tana

Dev

elop

men

t Fou

ndat

ion.

Num

ber o

f req

uest

s fo

r ass

ista

nce:

finan

cial

tech

nica

l •

adm

inis

tratio

n &

orga

niza

tion,

etc

. N

umbe

r of n

ew s

tart

busi

ness

es.

Incr

ease

turn

over

/pro

fit o

f new

/exi

stin

g bu

sine

sses

Dis

rupt

ion

to

busi

ness

es

loca

ted

in th

e Pr

ojec

t-Im

pact

ed

Area

Tem

pora

ry to

per

man

ent l

oss

of

busi

ness

reve

nue.

Los

s of

inco

me

and

occu

patio

n to

bus

ines

s pe

ople

.

(Bus

ines

s) re

settl

emen

t / re

-est

ablis

hmen

t as

sist

ance

to a

ffect

ed b

usin

esse

s. C

ompe

nsat

ion

for l

oss

of b

usin

ess.

Ski

lls e

nhan

cem

ent,

adul

t ed

ucat

ion

& vo

catio

nal t

rain

ing

avai

labl

e fo

r affe

cted

bu

sine

ss a

idin

g in

re-e

stab

lishi

ng b

usin

esse

s.

Stim

ulat

ion

of b

usin

ess

thro

ugh

Smal

l Bus

ines

s Fu

nd, M

icro

-fina

ncin

g, S

kills

-enh

ance

men

t fun

d +

othe

r ini

tiativ

es c

oord

inat

ed b

y in

depe

nden

t Ros

ia

Mon

tana

Dev

elop

men

t Fou

ndat

ion.

As a

bove

. N

umbe

r of d

isru

pted

bus

ines

ses,

loss

of

turn

over

/ pr

ofit.

N

umbe

r of d

isru

pted

bus

ines

ses

set u

p el

sew

here

, or r

emai

n in

loca

lity.

C

ompe

nsat

ion

requ

ests

per

bus

ines

s.

Amou

nts

disp

erse

d, to

who

, bas

ed o

n tra

nspa

rent

reso

lutio

n ag

reem

ent.

RM

GC

, loc

al

gove

rnm

ents

, pr

o-bu

sine

ss

NG

Os

& de

velo

pmen

t or

gani

satio

ns

Page 49: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 49

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Incr

ease

d vi

sibi

lity

of

Com

mun

ity a

nd

regi

on fo

r oth

er

inve

stm

ents

(i.e

. re

gion

al

deve

lopm

ent)

Incr

ease

in c

onfid

ence

for F

orei

gn

Dire

ct In

vest

men

t, lo

cally

to R

osia

M

onta

na, n

atio

nally

bas

ed o

n co

nfirm

atio

n m

ajor

bus

ines

s in

vest

men

t is

poss

ible

, to

regi

onal

in

clud

ing

neig

hbou

ring

coun

tries

.

No

miti

gatio

n ne

cess

ary

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P

Trai

ned

labo

ur

forc

e

Skill

ed, m

ulti-

disc

iplin

ary

labo

ur fo

rce

follo

win

g ca

paci

ty b

uild

ing

and

expe

rienc

e re

quire

d to

wor

k in

the

min

e an

d an

cilla

ry in

dust

ries

No

miti

gatio

n ne

cess

ary

Stak

ehol

ders

di

rect

ly o

r in

dire

ctly

af

fect

ed o

r in

volv

ed in

RM

P

Page 50: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 50

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Inflation and rising cost of access to services, infrastructure, etc. Caused by overall increase in economic activity & wealth of region. Potentially

detrimental to the poorest in the community

Pric

e &

cost

of l

ivin

g ris

e in

co

mm

unity

. D

etrim

enta

l to

disa

dvan

tage

d pe

rson

s, in

par

ticul

ar e

lder

ly &

ver

y po

or.

Less

impa

ctin

g on

thos

e in

volv

ed in

th

e in

crea

sed

econ

omic

act

ivity

, si

nce

inco

me

also

rise

s.

Wor

kers

’ Acc

omm

odat

ion

Polic

y ai

med

to re

duce

im

pact

s by

acc

omm

odat

ion

in O

ld R

osia

Mon

tana

&

spec

ifica

lly id

entif

ied

acco

mm

odat

ion

site

s th

roug

hout

regi

on. L

ower

s im

pact

on

loca

l hou

sing

m

arke

t at t

he s

ame

time

prov

idin

g fo

r dire

ct in

com

e in

to c

omm

unity

. Id

entif

icat

ion

of m

ost v

ulne

rabl

e (u

sing

bas

elin

e).

Spec

ific

mea

sure

s ta

rget

ing

them

to re

duce

impa

cts.

C

ateg

orie

s of

ass

ista

nce

incl

ude

but n

ot re

stric

ted

to:

• Tr

ansp

ort –

sho

ppin

g, v

isita

tions

, med

ical

as

sist

ance

etc

; •

Dom

estic

ser

vice

– re

mov

al o

f sno

w, g

arba

ge,

chop

ping

& p

illing

of w

ood,

etc

Oth

ers

– or

gani

zatio

n of

soc

ial e

vent

s, e

tc.

Fina

ncia

l: In

con

junc

tion

/ coo

pera

tion

with

loca

l au

thor

ities

(+/-

NG

Os)

det

erm

ine

an in

flatio

n-in

dexe

d co

effic

ient

to b

e ap

plie

d to

vul

nera

ble

and

disa

dvan

tage

d pe

ople

on

pens

ions

or s

tate

-wel

fare

to

com

plem

ent t

heir

basi

c in

com

e. T

hen

desi

gn a

n ap

prop

riate

mea

sure

tailo

red

indi

vidu

ally

. For

ex

ampl

e: a

wee

kly

food

ham

per d

eter

min

ed in

co

njun

ctio

n w

ith th

e pe

rson

in p

artic

ular

. Or

subs

idis

ing

utilit

y or

oth

er re

gula

r liv

ing

cost

s.

Ther

eby

miti

gatin

g th

e im

pact

s of

infla

tion

and

ensu

ring

thei

r qua

lity

of li

fe w

ill no

t dec

reas

e du

e to

in

flatio

n.

Num

bers

acc

omm

odat

ed a

t the

con

stru

ctio

n ca

mp

to b

e m

onito

red

on a

qua

rterly

bas

is

agai

nst t

he to

tal w

orkf

orce

M

onito

ring

of lo

cal i

nfla

tion

on a

six

-mon

thly

ba

sis,

incl

udin

g ho

usin

g (r

enta

l and

real

est

ate,

in

clud

ing

land

), an

d st

aple

s Si

x-m

onth

ly p

ublic

rele

ase

of th

e re

sults

with

in

the

Proj

ect e

nviro

nmen

tal a

nd s

ocia

l rep

orts

Vu

lner

able

Peo

ple

Polic

y, in

clud

ed in

the

RR

AP.

Num

ber o

f vul

nera

ble

peop

le, t

heir

parti

cula

r ci

rcum

stan

ces

note

d. A

ssis

tanc

e pr

ogra

mm

e de

velo

ped

& fo

llow

ed. N

umbe

r of v

isits

in

acco

rdan

ce to

ass

ista

nce

prog

ram

me.

In

flatio

n in

dex

deve

lope

d &

appl

ied.

Met

hod

or

mea

sure

to c

ompl

emen

t bas

ic in

com

e or

pe

nsio

n de

term

ined

; rec

ord

of re

gula

rity

of

disp

ersi

on o

f mea

sure

per

vul

nera

ble

pers

on..

Mai

n EP

C

cont

ract

or to

im

plem

ent

RM

GC

to

mon

itor

com

plia

nce

RM

GC

in li

aiso

n w

ith lo

cal

gove

rnm

ent

auth

oriti

es w

ho

have

a le

gal

resp

onsi

bilit

y to

ta

ke c

are

of

vuln

erab

le

peop

le, +

/- N

GO

s.

Con

stru

ctio

n pe

riod

– a

shor

t pe

riod

of

rela

tivel

y m

ore

inte

nse

activ

ity

Incr

ease

in lo

cal e

cono

mic

act

ivity

fo

llow

ing

com

men

cem

ent o

f co

nstru

ctio

n, th

e m

ost a

ctiv

e ph

ase,

in

clud

ing

empl

oym

ent

Loca

l Pro

cure

men

t Pol

icy

aim

ing

at e

nhan

cing

ca

paci

ties

of lo

cal s

mal

l bus

ines

ses,

incl

udin

g m

anag

emen

t of t

he tr

ansi

tion

perio

d fro

m

cons

truct

ion

to O

pera

tion

The

CSD

P in

clud

es s

mal

l bus

ines

s de

velo

pmen

t m

easu

res

to e

nhan

ce th

e bu

sine

ss e

nviro

nmen

t in

a lo

ng te

rm p

ersp

ectiv

e, a

nd a

llevi

ate

the

pote

ntia

l im

pact

s of

the

depr

essi

on re

sulti

ng fr

om th

e en

d of

th

e co

nstru

ctio

n ph

ase

Loca

l pro

cure

men

t aga

inst

tota

l con

tract

am

ount

, mon

itore

d on

a q

uarte

rly b

asis

for e

ach

cont

ract

or a

nd c

ompa

red

with

targ

et

cont

ract

ually

det

erm

ined

for e

ach

cont

ract

or

Loca

l pro

cure

men

t aga

inst

tota

l con

tract

am

ount

, mon

itore

d on

a q

uarte

rly b

asis

for e

ach

Ope

ratio

n &

Mai

nten

ance

(O&M

) co

ntra

ctor

and

co

mpa

red

with

targ

et c

ontra

ctua

lly d

eter

min

ed

Con

tract

ors

to

impl

emen

t in

partn

ersh

ip w

ith

RM

GC

R

MG

C to

m

onito

r co

mpl

ianc

e

Page 51: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 51

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Con

tract

ion

of lo

cal e

cono

mic

act

ivity

at

the

end

of c

onst

ruct

ion,

incl

udin

g re

trenc

hmen

ts

fo

r eac

h O

& M

con

tract

or

Incr

ease

d tra

ffic,

pa

rticu

larly

at

cons

truct

ion

phas

e

Sign

ifica

nt v

olum

es o

f tra

ffic,

pa

rticu

larly

larg

e m

achi

nery

in

crea

ses

risks

to p

eopl

e. R

isk

mos

t ac

ute

for n

on d

ispl

aced

peo

ple,

pe

dest

rians

, cyc

lists

, you

ng a

nd th

e ve

ry o

ld.

Wor

kers

Cod

e of

Con

duct

, spe

ed li

mits

, phy

sica

l m

easu

res,

and

saf

ety

awar

enes

s in

loca

l sch

ools

Traf

fic c

ontro

l and

dam

peni

ng d

evic

es

empl

aced

. R

adar

mea

sure

men

ts o

f spe

ed a

nd/o

r bla

ck

boxe

s in

veh

icle

s N

umbe

r of s

afet

y aw

aren

ess

sess

ions

and

at

tend

ance

N

umbe

r of i

ncid

ents

and

acc

iden

ts, a

nd re

late

d co

rrec

tive

actio

ns ta

ken

EPC

con

tract

ors

to id

entif

y ha

zard

s an

d m

itiga

te th

em;

RM

GC

and

co

ntra

ctor

s w

ith

loca

l tea

cher

s an

d ed

ucat

ion

insp

ecto

rate

to

adm

inis

ter t

he

safe

ty

awar

enes

s ca

mpa

igns

, and

to

refre

sh

awar

enes

s on

a

perio

dic

basi

s

Min

e co

nstru

ctio

n an

d op

erat

ion

Sign

ifica

nt in

dust

rial o

pera

tions

, su

ch a

s a

min

e, c

reat

es n

ew s

afet

y ha

zard

s fo

r com

mun

ities

par

ticul

arly

to

non

-dis

plac

ed p

eopl

e.

Fenc

ing

of a

ll w

ork

site

s. S

ecur

ity s

ervi

ces

to a

void

th

ird-p

arty

intru

sion

. Saf

ety

awar

enes

s

Num

ber o

f rep

orte

d th

ird p

arty

intru

sion

s in

to

wor

k si

tes

Num

ber o

f inc

iden

ts a

nd a

ccid

ents

, and

rela

ted

corr

ectiv

e ac

tions

take

n N

umbe

r of s

afet

y aw

aren

ess

sess

ions

and

at

tend

ance

Con

tract

ors

to

fenc

e al

l wor

k si

tes

RM

GC

to

mon

itor

com

plia

nce

RM

GC

and

co

ntra

ctor

s w

ith

loca

l tea

cher

s an

d ed

ucat

ion

insp

ecto

rate

Page 52: 4.8. The Social and Economic Environment of Roşia … 4/Chapter...S. C. Roşia Montană Gold Corporation S.A. - Report on Environmental Impact Assessment Study Chapter 4.8 The Social

S. C

. Roş

ia M

onta

nă G

old

Cor

pora

tion

S.A

. - R

epor

t on

Env

ironm

enta

l Im

pact

Ass

essm

ent S

tudy

C

hapt

er 4

.8 T

he S

ocia

l and

Eco

nom

ic E

nviro

nmen

t of R

oşia

Mon

tană

S

ectio

n 7:

Miti

gatio

n an

d M

onito

ring

Mea

sure

s, Im

plem

enta

tion

Res

pons

ibilit

ies

Pag

e 52

of 5

2

Impa

ct

desc

riptio

n Im

pact

effe

ct

Miti

gatio

n m

easu

res

Mon

itorin

g m

easu

res

and

indi

cato

rs

Res

pons

ibili

ties

Inap

prop

riate

or i

nsuf

ficie

nt p

lann

ing

& pr

epar

atio

n fo

r alte

rnat

ive

sust

aina

ble

econ

omic

act

iviti

es

durin

g m

ine

life

lead

s to

sig

nific

ant

econ

omic

impa

cts

follo

win

g m

ine

clos

ure.

Dev

elop

men

t of a

rang

e of

mea

sure

s &

initi

ativ

es

over

the

lifes

pan

of R

MP

such

that

net

wel

fare

co

ntin

ues

to in

crea

se fo

llow

ing

clos

ure

of m

ine

oper

atio

ns.

Stim

ulat

ion

of b

usin

ess

thro

ugh

Smal

l Bus

ines

s Fu

nd, M

icro

-fina

ncin

g, S

kills

-enh

ance

men

t fun

d +

othe

r ini

tiativ

es c

oord

inat

ed b

y in

depe

nden

t Ros

ia

Mon

tana

Dev

elop

men

t Fou

ndat

ion.

Num

ber o

f req

uest

s fo

r ass

ista

nce:

finan

cial

tech

nica

l •

adm

inis

tratio

n &

orga

niza

tion,

etc

. N

umbe

r of n

ew s

tart

busi

ness

es.

Incr

ease

turn

over

/pro

fit o

f new

/exi

stin

g bu

sine

sses

Tr

aini

ng p

rogr

ams

deve

lope

d &

impl

emen

ted,

nu

mbe

r of a

ttend

ees,

num

ber o

f gra

duat

es,

num

ber i

n po

sitio

n.

RM

GC

and

R

osia

Mon

tana

D

evel

opm

ent

Foun

datio

n St

akeh

olde

rs

dire

ctly

or

indi

rect

ly

affe

cted

or

invo

lved

in R

MP

Out

mig

ratio

n of

ski

lled

wor

kers

, yo

ung

educ

ated

peo

ple

leav

e,

dem

ogra

phy

(aga

in) r

efle

cts

aged

po

pula

tion

Cre

atio

n &

prom

otio

n of

Roş

ia M

onta

nă &

C

omm

unity

as

a ce

ntre

of e

xcel

lenc

e co

ncer

ning

(for

ex

ampl

e): m

inin

g te

chno

logi

es, C

omm

unity

&

Sust

aina

ble

Dev

elop

men

t exp

ertis

e, c

onst

ruct

ion

& bu

ildin

g, a

rcha

eolo

gy &

pat

rimon

y.

Esta

blis

hmen

t of e

cono

mic

ally

sus

tain

able

in

dust

ries,

suc

h as

bas

ed a

roun

d: m

inin

g,

com

mun

ity d

evel

opm

ent,

arch

aeol

ogy,

con

stru

ctio

n,

tour

ism

, etc

,

Num

ber o

f edu

catio

nal f

acilit

ies,

num

ber o

f at

tend

ees,

tren

ds o

ver t

ime

(incr

easi

ng/

decr

easi

ng);

num

ber o

f com

pani

es (o

fferin

g se

rvic

es re

flect

ing

area

s of

exc

elle

nce)

; num

ber

of e

mpl

oyee

s (tr

ends

), tu

rnov

er ($

& e

mpl

oyee

s)

Num

ber o

f bus

ines

ses,

num

ber o

f em

ploy

ees,

tu

rnov

er, p

rofit

, con

tribu

tion

to lo

cal a

utho

rity’

s bu

dget

s

Dec

reas

e in

pop

ulat

ion

to b

elow

de

mog

raph

ical

ly &

eco

nom

ical

ly

sust

aina

ble

leve

ls; R

oşia

Mon

tană

de

clin

es a

s a

villa

ge

Dev

elop

men

t of R

oşia

Mon

tană

as

an a

ttrac

tive

villa

ge o

f a h

igh

stan

dard

& q

ualit

y of

livi

ng b

ased

on

the

prin

cipl

es o

f sus

tain

able

dev

elop

men

t, w

ell

mai

ntai

ned,

com

forta

ble

& ac

cess

ible

, with

em

ploy

men

t & e

cono

mic

pos

sibi

litie

s

Num

ber o

f inh

abita

nts,

dem

and

from

peo

ple

to

mov

e to

Roş

ia M

onta

nă, n

umbe

r of p

eopl

e le

avin

g, a

ttend

ance

at e

duca

tiona

l fac

ilitie

s,

cont

ribut

ion

to lo

cal a

utho

ritie

s, d

emog

raph

ic

stru

ctur

e, n

umbe

r of b

irths

, dea

ths,

cha

nge

in

popu

latio

n nu

mbe

rs (r

ise,

falls

)

Soci

al a

nd

econ

omic

risk

s re

late

d w

ith

even

tual

min

e cl

osur

e

Roş

ia M

onta

nă’s

soc

io-e

cono

mic

in

dica

tors

dem

onst

rate

pos

itive

gr

owth

. Roş

ia M

onta

nă re

mai

ns a

vi

able

, attr

activ

e liv

ing

cent

re w

ith a

su

stai

nabl

e ec

onom

y, p

ositi

ve

econ

omic

gro

wth

& d

ynam

ic

popu

latio

n

No

miti

gatio

n ne

cess

ary

Roş

ia M

onta

deve

lopm

ent

foun

datio

n,

loca

l st

akeh

olde

rs,

loca

l aut

horit

ies