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Annual Financial Statements 2003

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Women at the Farabakouta water borehole, fitted with handpump, with the old village in the background.
Note the traditional mud and thatch huts.

The mosque in new Farabakouta village.

One of the replaced ‘special buildings’ in new Farabakouta.

During the physical relocation, transfer of household contents was simplified by the use of containers which could be left at a household to be packed and then moved to the new village when ready.

Sadiola, 8th July 1999 - Official handover of the keys of the new village by the General Manager of SEMOS (Mr Dave Burgess) to the Chief of Sadiola (M. Sankoumba Dembele). The goat was presented as a thank you gift from the village to the Regional Governor for his role in the relocation process.

Case studies
East and West Africa

7.4 Resettling a village – the stories of Sadiola and Farabakouta

Resettlement of local communities is frequently a controversial issue. Extensive planning and consultation and independent monitoring went a long way towards minimising concerns and issues during the relocation of the Sadiola and Farabakouta villages at Sadiola mine in Mali.

The Sadiola mine is situated about 80km south of the regional capital of Kayes, and is a joint venture between AngloGold (38%), IAMGOLD (38%), the Malian Government (18%) and the International Finance Corporation (6%).

While the possibility of village relocation was discussed during the original Environmental Impact Assessment (EIA), between the mine, the Malian government and the affected villages, a decision to proceed with the planning for the relocation of the two villages was taken in September 1996.

Basis for relocation

The village relocation process was conducted in accordance with the World Bank guidelines on Involuntary Resettlement (Operational Directive 4.30) and the relevant Malian laws. A central tenet of OD4.30 is that a resettlement is conceived and implemented as a development programme. The objective for the relocation was to improve, or at least restore, the population?s former livelihoods and production levels. In short, the aim was to ensure that nobody was worse off than they were before the move.

The process

The Institute of Natural Resources (University of Natal, Pietermaritzburg, South Africa), and the Malian NGO, Association d?Etude et de Mise en Valeur des Resources Naturelles et des Institutions (ASERNI), were contracted to prepare Resettlement Action Plans (RAPs) incorporating comprehensive community participation programmes for the village relocations.


•	A steering committee was formed and led by the Governor of the Kayes region to oversee the identification and selection of new village sites.
•	A land use study identified the distribution of agricultural lands and other important natural resources.
•	An executive committee (comprising the mine, the Malian government and the village leadership) then approved a detailed RAP.
•	A working group consisting of the implementing body (the mine and the various consultants) was established to coordinate activities and met on a weekly basis.

Extensive community consultation

Extensive community involvement and the use of participatory methods involving all interested and affected parties were employed. The appointment of ASERNI as the implementing agent, together with the mine?s Malian staff, brought a great deal of understanding of the local village dynamics to the management team. The appointment of a community liaison officer early in the project resulted in a continuous and formal programme of community consultation and participation starting in 1994 and continuing through 1999, to the present day. In addition, the appointment of a full-time facilitator in each village provided important insight into village politics and the concerns of individual families, as well as providing a convenient communication channel for the village and the mine.

Designing the village

The Malian government required that the design of the new villages be based on modern township planning principles. The new villages were therefore constructed on a symmetrical grid-type pattern, with plots being allocated to individual families. Natural expansion in the old village had led to cramped and overcrowded conditions, so the inhabitants welcomed the extra space provided through the larger plot sizes in the new villages. With the allocation of plots it was important to maintain the same sense of social order in the new village so that, for example, somebody living next to the chief in the original village should continue to live next to the chief in the new village.

In traditional villages huts were made of mud brick and thatch roofs, but the mine agreed to provide more permanent structures. Four laterite-cement brick-making machines were imported from South Africa and a team of 140 local villagers were employed over a nine month period to manufacture 1.4 million laterite-cement bricks. This provided a significant boost to the local economy. A series of standardized designs were available for selection by the affected households. Showhouses were built in each village so that the people could understand what would be provided and have an opportunity to comment on them. Where families owned unique structures, the architect sought to build these special features of these structures into the replacement buildings.

Construction

The first phase of construction was the clearance of the new village sites by the bulldozers. This also involved the identification of large trees that would need to be felled either because they might present a physical hazard, or because they could be perceived to provide refuge for ?evil tree-dwelling spirits?. Site clearance was preceded by a religious ceremony and animal sacrifice to appease the spirits. Over-enthusiastic men-folk condemned almost every tree on the village site which, with hindsight, should have been more vigorously challenged, as it will take many years to grow shade trees in the new villages. This has been the subject of consistent post-relocation complaints by the women of the village.

Construction of Farabakouta started on 27 February 1998, and construction of Sadiola started on 27 May 1998. The local villagers monitored progress with the construction and immediately raised concerns about the quality of workmanship (where these existed) and other issues.

Construction of the villages included the installation of access roads, stormwater drains and other public amenities such as a mosque, central meeting place and a football field. In Sadiola, construction included the replacement of government facilities such as the district administrative complex, the agricultural facilities, the forestry office, the clinic and the primary school. The mine also provided a district secondary school as part of its contribution to community development.

During this phase, the compensation for secondary structures and croplands was paid to enable villagers to proceed with the replacement of cattle kraals, chicken coops, granaries, etc.

Relocation

Once initiated, the moves to the new villages proceeded rapidly. A village relocation ceremony preceded the move. Each family was provided with a container in which to place their household belongings and these were then loaded onto a truck and transported to their new homes where the goods were again offloaded.

Monitoring

A thorough and independent monitoring process was developed and implemented to assess the overall progress of the village relocation process, and a number of issues have been identified over the past few years.

For a copy of the full paper ?Four years after the move: Village relocation at Sadiola and Yatela gold mines, Mali, West Africa? by Andrew Mackenzie, Justine Pooley, Sam Samakke, S Sangare and I Sidibe (PDF - 1,08MB).

7.5 Community development initiatives at Sadiola and Yatela gold mines

Establishing and operating a mine in a remote location like the Sadiola district in Mali presents a number of unique challenges ? a foreign language, an unfamiliar culture, extreme climate, lack of basic infrastructure, poor roads, basic medical facilities, a shortage of technical expertise, an influx of work seekers, among them. Given the significant and rapid social changes brought about by the development of a mine, maintaining good relations with the neighbouring communities, was fundamental to this process, and integral to the way AngloGold conducts its business.

AngloGold?s initial relationship with Mali dates back to the development of the Sadiola Mine, an open pit gold mine located in the Kayes region of Western Mali. Construction of the mine started in early 1995 and production commenced in 1996. Mining is scheduled to cease in 2008, although exploration in the area may extend the life of the mine.

The nearby Yatela Gold Mine is a smaller operation located 30 km north of Sadiola. Construction commenced in 2000 and the plant was commissioned in 2001. Although it shares some of the SEMOS infrastructure, it is run as a separate company by its shareholders: AngloGold (40%), IAMGOLD (40%), and the Government of Mali (20%). Closure is scheduled for 2005.

Starting on solid foundations

The Environmental Impact Assessments (EIAs) for both Sadiola (1994) and Yatela (2000) found that the most significant impacts of the mine would be of a socioeconomic nature on surrounding villages.

The development of Sadiola was revolutionary at the time. A comprehensive, internationally acceptable EIA carried out as part of the project feasibility study, was required as a condition of the IFC loan financing. This was over and above Malian legislation and mining permit requirements at that time. The EIA included extensive social assessment work and involved extensive consultation and use of rural participatory planning methods, and so established a style for future community interactions.

To help mitigate some of the negative effects of the mine, SEMOS committed to contributing towards a Trust Fund for local community development efforts. These provisions began with the start of production in January 1997. In 1997 various projects, such as the provision of hand pumps on water boreholes, community gardens and food relief for a village ravaged by fire were undertaken on a case-by-case basis. This early phase of community development was not guided by any overarching strategy, but largely through a desire to improve the livelihoods of villages around the mine. Initiatives were evaluated on an ad-hoc basis and administered solely by the mine.

Community development during the village relocation phase

The next phase in the company?s approach to community development was brought about as a result of the village relocation. Expansion of the mine pit at Sadiola necessitated the relocation of two local villages, namely Sadiola and Farabakouta. During this phase, community development initiatives hinged around the objective that ?nobody should be worse off than they were before the move?.

One of the concerns was that relocation would interfere with cropping activities and possibly affect food security. The provision of fertilizers was included as a way of ensuring the productivity of new cropping lands, but the use of fertilizers is not common in the district. The provision of cattle-drawn ploughs and other agricultural equipment was accepted by the relocated villages as more appropriate and sustainable. The district agricultural officer was contracted to supply agricultural extension services and advice regarding the use of implements, seed and sowing techniques.

Also included, as a contingency, was the possible provision of supplementary foodstuffs (maize and millet). Interventions that allow villagers to rely upon the mine for important goods or service that would no longer be available once the mine closes were avoided and assistance rendered to villagers was screened for possible creation of dependencies.

The simplest yet most effective way of providing community development assistance to villagers is to focus on those known elements of their livelihoods that cause most hardship or present the best opportunities for escaping the poverty cycle, such as water supply, health care, education and agricultural production.

For example, groundwater supply is absolutely crucial to village existence during the dry months, and the lack of adequate water supply is a major limiting factor in both food crop cultivation and general village development. The installation or repair of boreholes and hand pumps, or, where specifically requested, large diameter village wells was a useful intervention. Responsibility for the maintenance of the pumps now rests with either the village leaders or the local administration.

The purchase of diesel-driven mills for use by the women benefits the entire community, as it liberates women from the time-consuming and arduous daily task of manual stamping of grain crops. Experience showed that the mill had to be at least partly subsidized by the women?s group or village, so that the group took responsibility for its upkeep and repair. Without this ?buy-in? there is a lack of ownership that can lead to neglect. Donations are avoided where possible in favour of joint funding arrangements, even if local communities only put up a fraction of the costs.

Establishment of the community development Trust Fund

In mid-1997, a dispute arose between the chiefs of Sadiola and Farabakouta and the other four villages. The former felt that because they were the most affected by the creation of the mine and the pending relocation, the Trust Fund should be utilized for their exclusive benefit. However, the other villages felt that Sadiola and Farabakouta were receiving great benefit in the form of highly improved accommodation and village facilities, and once moved, all neighbouring villages would be equally affected by the mine. To resolve the dispute, a moratorium was placed on all projects and the Malian government intervened to mediate in the stand-off. They requested, and were granted, participation in the administration of the Fund through dual signing powers.

Following much consultation, a more formalised Fund was established in November 2000 and initially targeted six villages in the vicinity of the mine, two of which had been resettled. Subsequently two other villages were included (a total of eight) because the development of two pits were within the areas utilised by these villages.

The most successful component of the work done to date has been the establishment of a revolving micro-credit scheme, which involves the provision of small loans to either individuals, or groups, for the development of new or existing entrepreneurial activities. The disbursement of the first loans (microcredit) for small projects took place during May 1999. By December 2000, over 34 entrepreneurial initiatives had been funded in this way ? at a total value of US$22,500. The type of projects funded have been village shops, travelling salesmen, dressmaking and tailoring, grain milling, small scale irrigated vegetable gardens, small scale poultry production, metalworking, etc.

Macro-projects involve large community groups, entire villages or groups of villages. These include projects to improve the water supplies in the target villages, such as the development of a borehole and well at Borokone. At Sadiola, a large dam amounting to a cost of US$100,000 was constructed in line with community requests for year-round water supply. The implementation of an artisanal gold mining (Orpaillage) project at Farabakouta to substitute for resources lost in the construction of the main Sadiola pit has been less successful.

The third major thrust of the Foundation?s activities is social development, with a particular emphasis on basic literacy and numeracy and the development of basic planning and business management skills. Building capacity in the target communities is possibly the greatest challenge facing the Foundation and is essential to the goal of sustainable development in the district. To date this has been carried out largely through one-on-one interaction between the facilitators and entrepreneurs in the development of micro-business plans. This is an area where the Development Foundation has continued to seek partnerships with existing organisations that have expertise in areas such as mother-tongue adult literacy; basic numeracy; vocational skills training (for example metal work, woodwork & sewing); other training to build capacity in the communities (for example small business management, agricultural skills) and primary health care.

In the village relocation process, substantial improvements had been made through the provision of an upgraded district clinic (with ambulance), a bigger primary school and a new secondary school.

With the development of the Yatela project, the activities of the foundation were extended to the six villages within that mine?s sphere of influence. An additional rural facilitator was appointed, but management continued to be co-ordinated through Sadiola.

Development projects need to be selected in a participative manner, in consultation with parties which are cognisant of local socio-economic realities. Extensive community involvement, and the use of participatory methods involving all interested and affected parties, greatly contributed to the successful relocation of the villages and subsequent community development initiatives.

The appointment of ASERNI as the implementing agent, brought a great deal of understanding of the local dynamics to the management team. The appointment of a Malian community liaison officer early in the project phase resulted in a continuous and formal programme of community consultation and participation starting in 1994 and continuing through to the present day. ASERNI?s recommendation to base a full-time facilitator in each of the villages provided important insights into village politics and the concerns of individual families, as well as providing a convenient ?go-between? for the village and the mine.

Environmental audits (2000 & 2001) of the mine?s community development activities have acknowledged the successes of the micro-credit scheme and village resettlement initiatives but have warned about complacency in responding to change.

Click here for a full copy of the paper, ?Sustainability challenges: Community development initiatives at Sadiola and Yatela gold mines, Mali, West Africa?, by AG Mackenzie and J Pooley (PDF - 507KB).

7.6 The Geita Gold Mine Kilimanjaro Challenge 2003

?This challenge is about our personal commitment as a company and as individuals for our peers who suffer from this terrible disease,? says Peter Turner, Chief Executive Officer of Geita Mine in Tanzania, of the mine?s annual sponsored climb up Kilimanjaro to raise funds for HIV/AIDS. The pandemic, which is ravaging the African continent, has already exacted a high toll in the East African country of Tanzania.

Geita Gold Mine was already aware of the high incidence of HIV/AIDS when the mine first opened in 2001, and it has since established counselling and testing clinics, as well as information campaigns, in the community within which it operates.

The challenge to climb to the top of Mount Kilimanjaro has become an annual event, and with the mine?s other efforts, is a response to Tanzanian President, Benjamin Nkapa?s declaration in 1999 that the pandemic in his country was a ?national disaster?.

?We have a social responsibility to our employees and to the community around us. We have to get involved. We certainly have to fight the battle with the President both at a national and local level,? Turner continues.

In 2002, a group of Geita Mine employees took on a six-day expedition to the top of Africa?s highest free-standing mountain and raised 40 million shillings (R320,000 ). Last year?s target was a whopping 100 million shillings (R700,000). Collectively the two Kilimanjaro climbs have raised in excess of R1 million in support of HIV/AIDS projects in Tanzania. 49 climbers from Geita Mine and its contractors participated, including two HIV positive climbers, who were invited to join the group and to share their experiences in an effort to promote destigmatision of the disease.

?I didn?t expect to climb the mountain with the intention of educating the society on HIV/AIDS so really I?m killing two birds with one stone,? said Julius Kaaya, who has lived with the disease for 10 years.

Antonia Kilego was following in the footsteps of her father who had made a failed attempt in 1958. ?I expect and hope that I must reach the top so that he and many others should know that being infected with the HIV virus doesn?t mean that you can?t do anything.?

In 2003, a team of Geita Gold Mine employees pledged their commitment to the HIV/AIDS pandemic by climbing Mount Kilimanjaro and raising 100 million shillings (R700,000).

So on 31 May 2003, the intrepid group took off from Moshi, a town situated at the foot of Mount Kilimanjaro. The first day covered an 18 kilometre stretch through lush rain forest, from the Machame Gate at 1,800 metres up to Machame Camp at 2,980 metres. Battling their way through rain and mist, after a 12-hour slog the group made it to the camp where, unfortunately Antonia became the first casualty of the hike. She was advised to turn back, not because of her HIV condition, but because of her fitness levels. Back at base camp, though, she was undeterred, saying, ?I have not given up. I will definitely climb again. My message to all HIV positive people is ?don?t give up on life?.? This left her companion Julius to take up the fight against the stigma of the disease and the resultant segregation that many sufferers face. Already he was reminiscing about how he was treated before contracting the disease, saying that he was participating in the hike ? just like a normal person. I?ve shared sleeping quarters, food and everything without being segregated by anyone so it is quite a change.?

The second day was a 15 kilometre hike, rising 1,000 metres and taking seven hours to reach Zero 2 at 3,900 metres. Finally the sun peeked through and dampened spirits lifted.

At the halfway mark on day three, the group hiked seven kilometres to the top of Lava Tower at 4,600 metres, before descending again to Barrano Camp at 4,000 metres. They faced huge temperature fluctuations at these heights, from below 0 degrees Centigrade at night to over 35 degrees during the day. This was to be the make or break mark, with expedition leader Jon Hill guaranteeing that if they could get through altitude sickness symptoms, like headaches and nausea, they would make it to the top. As the altitude rose above 4,000 metres the moorland environment gave way to a lunar landscape with almost no vegetation, and at the same time the weather gave way to hail and snow ? the latter a first for some!

By day four Peter Turner was happy with the way the group was handling the tough conditions. ?I think we?ve seen team work and spirit come through. For those who have battled, the team has rallied together well and we?ve really come through strongly.? As the porters dismantled the tents, first beating off the clinging frost, the hikers were to embark on a tricky 300 metre vertical climb up Barranco Wall before descending to Karango Valley Camp Site ? a seven-kilometre distance that would take some five hours. From a distance, they looked like ants clinging to the face of the mountain. Some declared that it ?made you feel like Tom Cruise in the opening scenes of Mission Impossible II?!

Day five was split into two legs. The first was a six hour climb to Barafu Camp at 4,500 metres, the last camp before the summit and which boasts the highest loo in Africa! From Barafu, it was a light late night snack before facing the last gruelling distance which would see the group climb another 1,300 metres through the night, in freezing temperatures to reach the edge of the crater at Stella point in time to witness a spectacular sunrise. An hour later, emotions ran high as 47 of the original 49-strong team finally summitted Uhuru peak at 5,895 metres (19,330 ft).

Besides achieving their personal goals, the group also attained the team objective of supporting the on-going fight against HIV/AIDS. At the same time there was a sense of the parallels between climbing a mountain and battling the disease. Said Peter Turner on the day before summitting, ?You take one step at a time. There are times when you are really down and out. The journey can be a long one and at the same time an enjoyable one. It?s about relying on your peers to support you and rallying together in the fatigue that you might feel.?

And the man who achieved triumph over adversity was quick to agree. Said Julius Kaaya, on reaching the top of Mount Kilimanjaro, ?Being HIV positive doesn?t mean you curl up and die. Like climbing a mountain, with help and support, your journey through life can be made easier. No one knows where their time is up ? I have left those worries and fears behind. Each day is a precious gift. Let us live together.?

The Geita Mine team at the summit of Mount Kilimanjaro.

Business principle:

AngloGold in the community

	Structure and governance
	Impact on people, cultures and communities
	Involvement of communities
	Social investment initiatives
	Participatory and leadership roles
	Working with communities on land and resettlement
	Contribute to sustainable economic development of host communities

Reporting in line
with GRI

Objectives for 2004

Case studies

	South Africa
	East and West Africa
	7.4 Resettling a village – the stories of Sadiola and Farabakouta
	7.5 Community development initiatives at Sadiola and Yatela gold mines
	7.6 The Geita Gold Mine Kilimanjaro Challenge 2003
	South America
	Australia
	North America
	Exploration

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