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GHD | Report for Arafura Resources Limited - Nolans Project, 43/22301 Appendix K – Social Impact Management Plan

Appendix K – Social Impact Management Plan€¦ · Appendix K – Social Impact Management Plan . Arafura Resources Social Impact Management Plan ... , other camps and communities

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Page 1: Appendix K – Social Impact Management Plan€¦ · Appendix K – Social Impact Management Plan . Arafura Resources Social Impact Management Plan ... , other camps and communities

GHD | Report for Arafura Resources Limited - Nolans Project, 43/22301

Appendix K – Social Impact Management Plan

Page 2: Appendix K – Social Impact Management Plan€¦ · Appendix K – Social Impact Management Plan . Arafura Resources Social Impact Management Plan ... , other camps and communities

ArafuraResourcesSocialImpactManagementPlan

NolansProjectPreparedbyMichelsWarrenMunday

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ArafuraResourcesSocialImpactManagementPlan2016 2

Contents

1. EXECUTIVESUMMARY 4

2. OUTLINEOFTHEPROJECT 5

3. PLAN 73.1 Methodology 83.2 Theconceptofsocialsustainability 83.3 Communityengagement 93.4 RequirementsoftheNorthernTerritoryEnvironmentProtectionAuthority 10

4. KEYFINDINGSOFSOCIALIMPACTASSESSMENT 114.1 Populationandcommunities 11

4.1.1 Keyfindingsrelatingtopopulationandcommunities 144.1.2 Managementandmitigation 14

4.2 Employmentandeconomies 154.2.1 Keyfindings 204.2.2 Managementandmitigation 21

4.3 Servicesandinfrastructure 224.3.1 Keyfindings 244.3.2 Managementandmitigation 25

4.4 Healthandwellbeing 264.4.1 Keyfindings 304.4.2 Managementandmitigation 30

4.5 Naturalresourcesandtheenvironment 314.5.1 Keyfindings 334.5.2 Managementandmitigation 33

4.6 Cultureandwayoflife 344.6.1 Keyfindings 364.6.2 Managementandmitigation 36

4.7 Humanrights 374.7.1 Keyfindings 394.7.2 Managementandmitigation 39

5. MANAGEMENTPLANSANDPOLICIES 405.1.1 EmploymentandWorkplaceDevelopmentPlan 405.1.2 LocalIndustryParticipationPlan 415.1.3 CommunityEngagementPlan 415.1.4 CommunityBenefitsTrust 425.1.5 Grievanceprocedures/issuesregister 435.1.6 Codeofconductforworkers 43

6. MONITORING/MEASUREMENT 444.1 Arafura’ssustainabilitypolicy 444.2 Indicatorsandmonitoring 45

7. COMMITMENTSREGISTER 47

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Figure1-1:Mapofprojectareaandimmediatesurrounds 6

Table4-1:Summaryofrisksandopportunitiesforpopulationandcommunities,indicatorsandmeasurement 12

Table4-2:Summaryofpotentialsocialimpactsfromtheserisks 13

Table4-3:Keysocialimpactassessmentfindingsinrelationtopopulationandcommunities 14

Table4-4:Summaryofrisksandopportunitiesforemploymentandeconomies,indicatorsandmeasurement 16

Table4-5:Summaryofpotentialsocialandeconomicimpactsfromtheserisksandopportunities 20

Table4-6:Keyfindingsfromthesocialimpactassessmentonemploymentandeconomies 20

Table4-7:Summaryofrisksandopportunitiesforservicesandinfrastructure,indicatorsandmeasurement 23

Table4-8:Summaryofpotentialsocialimpactsfromtheserisksandopportunities 24

Table4-9:Keysocialimpactassessmentfindingsinrelationtoservicesandinfrastructure 24

Table4-10:Summaryofrisksandopportunitiesforhealthandwellbeing,indicatorsandmeasurement 27

Table4-11:Summaryofpotentialsocialimpactsfromtheserisksandopportunities 29

Table4-12:Keyfindingsfromthesocialimpactassessmentinrelationtohealthandwellbeing 30

Table4-13:Summaryofrisksandopportunitiesfornaturalresourcesandtheenvironment,indicatorsandmeasurement 32

Table4-14:Summaryofpotentialsocialimpactsfromtheserisksandopportunities 33

Table4-15:Summaryofkeyfindingsfromthesocialimpactassessment 33

Table4-16:Summaryofrisksandopportunitiesforcultureandwayoflife,indicatorsandmeasurement 35

Table4-17:Summaryofpotentialsocialimpactsfromtheserisksandopportunities 36

Table4-18:Keyfindingsfromthesocialimpactassessmentinrelationtocultureandheritage 36

Table4-19:Summaryofrisksandopportunitiesforhumanrights,indicatorsandmeasurement 38

Table4-20:Summaryofpotentialsocialimpactsfromtheserisksandopportunities 39

Table4-21:Summaryofkeyfindingsinrelationtoimpactsonhumanrights 39

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1. EXECUTIVESUMMARY

ThisSocialImpactManagementPlan(SIMP)providesanoutlineofkeybeneficialanddetrimentalsocialimpactsidentified in the Social Impact Assessment (SIA) for the Nolans project, outlines key findings andrecommendations, andoutlineshowopportunitieswill bemaximisedanddetrimental impactswill beavoided,mitigatedormanaged.

Section4includesasummaryofthekeysocialrisksidentifiedintheriskassessmentfortheprojectandotherlesshighlyratedpotentialrisksthatcouldemerge.

Section5outlinesaseriesofmanagementplansthatArafuraResourcesLimited(Arafura)willprepare,alongwithaction plans for implementation, covering employment and workplace development; local procurement;communityengagement;communitybenefits;housing;grievanceprocedures;andacodeofconductforworkers.

Section6outlineshowArafura’ssocialperformancewillbemonitoredandreportedagainst,includingtheoutlineofasustainabilityreportandindicatorsthatcouldbereportedagainstonareportcardtothecommunity.

Finally, Section 7 is a commitments register outlining actions that ensure the Nolans project’s Social ImpactAssessment forms the basis of ongoing social performance. This includes establishing a community referencegroup; agreement with the community on realistic and measurable indicators; reporting on the company’sperformance;anissuesregistertorecordandactoncomplaints;arangeofmanagementplans;openingalocaloffice in Alice Springs; employing a community liaison officer; communication; sponsorship; a compensationpackagewithtraditionalownersandmandatoryculturalawarenessforallstaffandcontractors.

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2. OUTLINEOFTHEPROJECT

Arafura’sNolansprojectcoversarareearthsopencutmine,an intermediateprocessingplant,accommodationvillage,ancillaryplantsandsupportinginfrastructurenearAileron,135kilometresnorth-westofAliceSprings.

Arafura plans to mine, concentrate and chemically process rare earths at the Nolans site (Figure 1.1) thentransportanintermediateproducttoanoffshoreseparationplantforfinalprocessingintohigh-valuerareearthproducts.

Theproject isonAileronStation,oneofmanypastoralproperties thatuntil recentlywasownedbypioneeringCentral Australian families, and the traditional land of the Anmatyerr people who live in the nearby Alyuenoutstation,PmaraJutunta(SixMileCamp),Laramba,othercampsandcommunitiesaroundthetownofTiTree55kmtothenorth,andintheregionalcentreofAliceSprings.

Itisproposedtostartconstructionin2017,withapeakworkforceofbetween400and500,leadingtooperationsthreeyearslaterwithanestimatedworkforceof250-300.Itisproposedtostartconstructionin2017,withapeakconstruction workforce of between 400 and 500, leading to operations three years later with an estimatedworkforceof250to300.Basedonthepredictedwork-readyworkforce,itislikelythat70percentofworkerswillbe fly-in fly-out (FIFO) from other parts of Australia and 30 per cent will come from local communities, AliceSpringsorotherpartsoftheNorthernTerritory(includingfamilieswhorelocatetoAliceSpringstoworkattheproject).FIFOworkerswillbeflowntoAliceSpringsandbussedtosite.AliceSpringsandotherlocalworkerswillbebussedtositetoreducetheuseofprivatevehicles.

Arafura will build an accommodation village to accommodate 300 workers, with a likely overflow to beaccommodatedattheAileronRoadhouse,25kmeastoftheprojectsitebyroad.

Keyelementsoftheprojectinclude:

• anopencutminewithaninitialminelifeof43years;

• aconcentratorthatcrushes,grindsandconcentratestheoreandpumpsimpuritiestoatailingsdam;

• aconcentrateslurrypipelinebetweentheconcentratorattheminesiteandachemicalprocessingplant;

• aprocessingplantthattreatstheconcentratewithacidandotherreagentstoproducerareearthintermediateproducts,andpumpsimpuritiesintoresiduestoragefacilities;

• asulphuricacidplant;

• agasofftakepipelinefromtheAmadeusBasintoDarwinhighpressuregaspipelineandan18MWgas-firedpowerstation;

• boresnorth-eastofReaphookHills,withwaterpumpedtoadesalinationplant;

• accessroadfromtheStuartHighwaytothevariouscomponentsofthesite;

• anoperationsandlogisticscentreandofficeinAliceSprings;and

• truckingintermediaterareearthproductstoAliceSpringsandrailingittothePortofDarwinforexporttoachemicalseparationprocessingplant.

Theareaofstudycoverstheprojectsite,nearbycommunitieslikelytoexperiencepositiveandnegativesocialimpacts,TiTreeastheclosesttowntotheNolansproject,LarambaastheclosestsitetotheborefieldandAliceSpringsasthenearestregionalcentre.

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Figu

re1-1:M

apofp

rojectareaan

dim

med

iatesurroun

ds

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3. PLAN

ThisSocialImpactManagementPlan(SIMP)isintendedasastand-aloneplanthatsummarisessignificantimpactsoftheNolansprojectandoutlinesmanagementplanstoguidethecompany’s long-termsocialperformance. Inessence, it covers social impacts from the perspective of the peoplewhose lives, livelihoods and lifestyles arepotentiallyaffectedbytheproject.

TheplansummariseskeyfindingsoftheSocialImpactAssessment(SIA),outlineshowtheyinformthecompany’sdecision-making and stipulates the management measures Arafura will take to avoid or minimise negativeimpactsandenhancepotentialbenefitsoftheproject.

TheSocialImpactManagementPlanassumes:

• ongoingcommunityinputtoArafura’ssocialperformance,e.g.throughacommunityreferencegroupwherecommunitystakeholderscanraiseissues;

• ongoingmonitoringofsocialindicatorsthatshowprogressagainstpredictedpositiveandnegativeimpacts,suchaslocaljobs,procurement,supportprogramsandgrievanceprocedures(manyofthesewillneedtobequalitativetobemeaningful);

• annualpublicreportingagainsttheseindicatorsinasimpleformat,suchasanannualreportcardorsustainabilityreport;and

• thatmanagementwillbeheldaccountableforthecompany’songoingsocialperformance,thoughinternalperformancemanagementpracticesandviapublicreportingofkeyindicators.

The Social Impact Assessment included extensive desktop research and stakeholder consultation in order toconsider the scope of the project, characterise the current social and economic environment, work throughpotentialscenariosoflikelychangeandpredictlikelyconsequentimpactsonpeople’slivesandlivelihoods.

TheSocialImpactManagementPlanisthedocumentbywhichthecompany’songoingsocialperformancewillbemonitored and accounted for. It is, therefore intended to be a practical, succinct and readable document. Itallowsforanadaptiveapproachwhichisflexibletochangingcircumstances,considerslong-termlegaciesoftheprojectoverthelifecycleofthemineandassumesapartnershipapproachtoimplementationofthecompany’skeysocialperformanceobjectives.

Itprovidesabridgefromthepointintimeofthesocialimpactassessment’sbaselinedataandpredictedimpactstothemanagementplans,toolsandprocessestoaddressthelikelyimpactsidentified.

TheSocialImpactManagementPlannotessomeareaswheretheSocialImpactAssessmentcouldnotprovideanauthoritativeorcompletepictureandoutlineshowthismaybeaddressed,suchasthroughongoingconsultationandcommunication.

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3.1 Methodology

The Social Impact Assessment profiled the communities in the project footprint (immediate and regional),providesanoutlineofthesocialcontextofthesecommunities,gathersbaselinedataandusesdesktopresearchand interviewstodescribeexistingsocialchangesandpredicts the likely risksandopportunitiesof theproject.This was complemented by an Economic Study (Appendix T of the EIS) which analysed potential economicbenefitsandrisksfortheregion,theNorthernTerritoryandAustralia.

A risk and opportunities matrix rated these impacts according to a subjective analysis of their likelihood andconsequences,adoptingmethodologyinlinewiththeAS/NZSISO31000:2009RiskManagement–Principlesandguidelines.Thelikelyimpactswerethenfurtherrefinedbyacross-disciplinaryriskassessment,whichratedsomeoftheinitialimpactsasunlikelyorimmaterial,whilerecognisinghighlevelsofuncertainty.

The impactsarebothpositiveandnegative,directand indirectand longandshort-term.Someimpactsmaybeunintendedordifficulttomanage.However,predictingpotentialimpactsshouldmaximisegooddecision-making,increasesensitivityandunderstandingofcommunityperspectivesandguideeffectivemanagementplans.

The identified impactswerecategorised,usingasguidance the InternationalAssociationof ImpactAssessment(2003,2015)descriptionofsocialimpactsasthosethatimpactonpeople.Thisincludes:

• people’swayoflife:howtheylive,work,playandinteractwitheachother;

• theirculture,orsharedbeliefs,customs,values,languageordialect;

• theirpoliticalsystems,ortheextenttowhichpeoplecanparticipateindecisionsthataffecttheirlives;

• theirenvironment,includingthequalityofairandwater,food,thelevelofhazard,dustandnoise,physicalsafetyandaccesstonaturalresources;

• theirhealthandwellbeing,whichisastateofcompletephysical,mental,socialandspiritualwellbeingandnotmerelytheabsenceofdiseaseorinfirmity;

• theirpersonalandpropertyrights,includingaviolationoftheircivilliberties;and

• theirfearsandaspirations,includingperceptionsofsafety,fearsaboutthefutureoftheircommunityandaspirationsfortheirfutureandthefutureoftheirchildren.

3.2 Theconceptofsocialsustainability

Theconceptofsocialsustainabilityisbasedonensuring‘socialwellbeing’(AustralianGovernment’sDepartmentoftheEnvironment2013)orapositivelegacybeyondthelifeofaproject.Foraprojecttobe‘sustainable’itmustbeeconomically, technically,environmentallyandsociallybeneficial forboththecompanyandthecommunity,takingparticularaccountofimpactsonvulnerableordisadvantagedpeoples.

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3.3 Communityconsultation

Consultation for theNolansprojectbegan inearly2007,when the companyopenedanoffice inDarwin.Earlyconsultationwasguidedbyacomprehensivecommunityengagementstrategythatoutlinedstakeholders, likelyissuesandrecommendedappropriatecommunicationwithdifferentstakeholdergroups.PreliminaryworkforanEnvironmentalImpactStatementbeganin2012,includinginterviewsforaSocialImpactAssessment.

Thelevelofconsultationhasbeenaffectedby

• changestoprojecttimelinesandconfiguration,includingaproposedprocessingplantinWhyalla,SouthAustralia;

• delaystotheprojectduetotheglobalfinancialcrisis;

• movingtheprocessingplantbacktotheNorthernTerritoryafterArafuradiscoveredanextensivesystemofgroundwateraquiferstothesouthwestoftheproject;and

• resumingtheEnvironmentalImpactStatementandconsultationin2015.

A revised2015StakeholderEngagementStrategyguided consultation for theEnvironmental Impact StatementandstakeholderinterviewsfortheSocialImpactAssessmenttoreduceduplicationandensuretheresultsofeachscopeofworkinformedtheother.

Consultation to informtheEnvironmental ImpactStudy includedworkshopswithgovernmentdepartments,oncountrymeetingswith traditionalownersorganisedthroughtheCentralLandCouncil, individualmeetingswithpastoralists, briefings of Central Desert Regional Council and its Anmatyerr Local Authority, communityinformation sessions and individual meetings with a number of key stakeholders including community andenvironmentalgroupsandnon-governmentorganisations.Thiswassupplementedby36dedicatedinterviewsfortheSocialImpactAssessment.

TherecommendedapproachoncetheNolansprojectstartsconstructionincludesacommunityreferencegroupto agree on community relations objectives, outline the community’s expectations, agree on monitoring andreportingofArafura’scommitmentsandagreeonrolesandresponsibilities.

Thecompanywillmaintainbothacommitments registerandan issues register.The issues registerwill includeprotocolsforhowstakeholdersmakeorraiseissueswiththecompany,howanyissueswillberespondedtoandrecordedandaprocessofanalysingcomplaintsandissuestoidentifyanysystemicissuesinthecompany’ssocialperformancethatneedtobeaddressed.

Communication includes a community page on Arafura’s website, materials to explain issues of concern andmonitoring results, maps, a video, community displays, a project shopfront and industry presentations tomaximiselocalindustryparticipation.

Arafura is negotiating a benefits package with traditional owners, through the Central Land Council. Thisagreement is likely to include various conditions about employment, Aboriginal businesses and ongoingcommunication.

(SeeCommunityConsultationReportatAppendixH.)

3.4 RequirementsoftheNorthernTerritoryEnvironmentProtectionAuthority

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TheNTEPA’sguidelinesforpreparinganEconomicandSocialImpactAssessmentstipulatethattheplanwill:

• establishtherolesandresponsibilitiesoftheproponent,government,stakeholdersandthecommunityinmitigatingandmanagingimpactsandmakingthemostofopportunitiesthroughthelifeofaproject;

• includeanoutlineofcurrentandproposedstakeholderengagementstrategies;

• prioritisepotentialeconomicandsocialimpactspredictedintheSocialImpactAssessment;

• outlinemitigationandmanagementstrategiesforidentifiedrisks,includingaregisterofagreedactivitiesandcommitments;

• monitoring,reportingandreviewmechanisms,includingtheabilityforstakeholderstoraisenewissues;

• mechanismstoresolvenewandemergingissuesastheytranspireandtoamendtheSocialImpactAssessment;and

• acommunicationstrategy.

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ArafuraResourcesSocialImpactManagementPlan2016 11

4. KEYFINDINGSOFSOCIALIMPACTASSESSMENT

Thissectionprovides:

• asummaryofthepredictedkeypositiveandnegativeimpactsandsomepotentialemergingimpacts;

• prioritisationofthekeyrisksandopportunities;

• somebriefcommentaryonthefindings;

• anoutlineofthemanagementmeasuresinresponsetothesefindings;

• indicatorsbywhichtomeasureperformance;and

• howtheseindicatorswillbemonitoredandreportedoneachyear,includingqualitativeandquantitativemeasures

Section 5 provides a list of management plans that Arafura will prepare to address the identified risks andopportunitiesaswellasacommitmentsregisterforwhichthecompany’smanagementwillbeaccountable.

4.1 Populationandcommunities

Summary

Impactsoncommunitycohesioncouldpotentiallycomefromtwosources:oneistheinfluxofworkersandtheirfamiliestoAliceSpringsandthelocalregioncreatingtensionswiththeexistingcommunities,includingjealousiesfrom Aboriginal people if they perceive others getting jobs while they remain unemployed. The other is thetensions that can flow from the distribution of benefits, including wages and royalty payments, particularlymanagementofcashpayments.

TherearehighlevelsofuncertaintyabouttheseimpactsandmanagementofthemisonlypartlyunderArafura’scontrol. Thiswould be the case particularly if the impacts are cumulative as a result of other changes in theregion,suchasotherlargeminingprojects.Whatisequallyimportantisthecommunity’sresilience,orabilitytoadapttochangeandfindsolutionsinpartnershipwithArafuratomanagetheimpacts.

Key mitigation strategies will be ongoing community engagement, working with the CLC on agreements withtraditionalownerstomaximisenon-cashcomponentsofacommunitybenefitspackageandmanagingworkforceissuesthatcouldleadtocommunitytensions.

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Table4-1:Sum

maryofrisksan

dop

portun

itiesfo

rpop

ulationan

dcommun

ities,ind

icatorsan

dmea

suremen

t

Keyris

koropp

ortunity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Localemploymen

tresults

inincreaseddisposab

le

incomeincom

mun

ities

nearth

eproject,lead

ing

toso

cialand

family

tensions.

1Th

reat

Med

ium

Higherincomesm

aylead

to‘h

umbu

g’from

familiesand

redu

ceth

eincentivetowork.

Higherwagesm

ayaffe

ctwelfareand

rental

paym

ents.Increased

cashcouldcreate

tensionsbetweenfamilygroup

s,cau

sein-

migratio

n,and

maylead

tom

oneybeing

spen

tonalcoho

l,gambling,carsa

ndother

consum

ergoo

ds.Thisc

ouldlead

toim

pacts

oncom

mun

itycoh

esionorre

silience

Largelyou

tsideArafura’sc

ontrolbut

commun

ityliaisonofficercan

linkto

agen

ciesand

mon

eym

anagem

entp

rogram

stohelpad

dress.

Distrib

utionof

jobsand

ben

efits

tofa

milies

Commun

ity

satisfaction

Commun

ityattitu

des

surveys

Statso

nlocalw

ages

paid

Grie

vanceregister,

complaints

Distrib

utionofro

yalty

pa

ymen

tsre

sultsin

increaseddisposab

le

incomeforsom

epe

oplein

localcom

mun

ities,leading

toso

cialte

nsionan

dconflict.

2Th

reat

Med

ium

Distrib

utionofro

yalty

paymen

tscan

createa

‘hon

eypo

t’effectofo

therfa

miliesm

ovingto

commun

itiesinexpectatio

nofsh

aring.This

canexacerba

teovercrowdingand

cau

se

jealou

siesa

ndcon

flictbetweenfamily

grou

psasw

ellasu

nderminingexisting

powerstructures.

Increaseddisposab

leincomecancontrib

ute

tohighe

rsub

stan

ceabu

seand

anti-social

beha

viou

rs,w

ithcon

sequ

entimpa

ctso

nmob

ility,schoo

land

workattend

ance,

feelingsofsafetyan

dpressureonpo

lice,

healthand

otherse

rvices.D

epen

dencyon

miningwagescan

also

decreaseincentivesto

workorotherecono

micparticipation.

Distrib

utionofro

yaltiesisth

roughthe

CentralLan

dCo

uncil(CLC).A

keym

itigatio

nstrategyisfordistrib

utionthroughan

agreed

trusteearrangem

enttoen

surean

equitabledistrib

utionofben

efits.A

lsoto

plan

fora

negotiatedcommun

ityben

efits

packageratherth

ancashpa

ymen

ts.

WhileArafuracan

’tcontrolsub

stan

ceabu

se

anddictateho

wro

yaltiesaresp

ent,itcan

implem

entp

oliciesforworkers.

Commun

ity

satisfaction

Prop

ortio

nof

bene

fitsp

aidin

cash

Survey

Outcomeof

negotia

tionsand

conten

tofInd

igen

ous

Land

UseAgreemen

t(ILUA

Projecte

mploysp

eople

previouslyvolun

teering

with

localorgan

isatio

nsor

recreatio

nalgroup

s,

resultinginadeclinein

thequ

ality

ofvolun

teer

servicesand

viabilityof

localcom

mun

ity

organisatio

nsand

sportin

gclub

s.

3Th

reat

Low

Voluntaryorganisatio

nsm

aynotsu

rviveor

beabletoprovide

aneffectiveservice,

impa

ctingon

servicede

livery.Losso

forganisersorp

articipan

tsfrom

com

mun

ity

grou

psand

sportin

gclub

sdue

toproject

rostersm

ayim

pactontheviab

ilityof

commun

ityorgan

isatio

nsdep

ende

nton

volunteers.Thisism

orelikelytoim

pacton

sportsclubs,w

ithyou

ngerm

embe

rs,tha

ncommun

itygroup

smorede

pend

ento

nolde

rpe

ople,e.g.retire

es.

Commun

ityinvestmen

tprogram

stha

tinclud

evolunteerin

gbystaff.

Arafuramaybeab

leto

con

tributetolocal

emergencyrespon

secap

abilitie

s.

Volunteerin

gnu

mbe

rs

Num

bero

fstaff

volunteerin

gStatisticso

nvolunteerin

ginAlice

Sprin

gs

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ArafuraResourcesSocialImpactManagementPlan2016 13

Keyris

koropp

ortunity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Influ

xofworkerscha

nges

thecompo

sitionofAlice

Sprin

gsand

TiTree

popu

latio

ns,p

articularly

youn

g,singleworkers,

lead

ingtoso

cialte

nsions.

N/A

Threat

Low

Commun

ityre

silienceistheextentto

which

commun

itiescan

ada

ptto

cha

nge.Aninflu

xoffa

miliesto

AliceSprin

gscou

ldcha

nge

commun

itycoh

esion.

Aninflu

xofyou

ng,singlemen

can

upset

commun

itycoh

esioniftheyinteractwith

localcom

mun

ities,p

articularlyatlicen

sed

prem

iseso

rifthe

yintrod

ucedrugsa

nd

alcoho

ltocommun

itiesand

isone

ofthe

factorstha

tcan

redu

cecom

mun

ityamen

ity.

Thisriskwasra

tedaslow,soisn

’tinclud

ed

inth

eriskregister,b

utsh

ouldre

mainasa

potentialrisk

shou

ldm

anagem

entm

easures

fail.

Thelikelihoo

dan

dconseq

uencesofa

materialincreaseispo

pulatio

ninAlice

Sprin

gswascon

sidered

unlikely.

Risksfrominteractionwith

thelocal

commun

itywillbeminim

isedby

quaran

tiningworkersinanaccommod

ation

village.

Theseeffortsw

illbesupp

ortedbyaCod

eof

Beha

viou

rforworkers.

Commun

ity

compo

sition(Alice

Sprin

gsand

locally)

Commun

ity

satisfaction

Censusdata

Commun

itysu

rveys

Jobsatthe

minean

dgovernan

cestructures

arou

ndacom

mun

ity

bene

fitstrustund

ermine

decisio

n-makingan

dgovernan

cestructuresof

othe

rinstitutions,suchas

trad

ition

aldecision

-making,localgovernm

ent

andgovernmen

t.

N/A

Threat

Low

Asabo

ve,thisrisk

wascon

sidered

im

materialbecau

seofthe

num

bero

finflu

encesimpa

ctingon

trad

ition

aland

other

institu

tionsand

governa

nce.How

ever,this

potentialrisk

cou

ldcon

tributetoso

cial

tensionsand

und

erminecommun

ity

cohe

sionsosh

ouldbemon

itored.

Respectforexistinggovernan

cestructures

anden

surenew

structures,suchasa

commun

ityben

efitstrusta

ndcom

mun

ity

referencegrou

p,dono

tund

ulyun

derm

ine

them

.

Commun

ity

satisfaction

Commun

ityattitu

des

survey

Table4-2:Sum

maryofpoten

tialsocialimpa

ctsfrom

theseris

ks

Summaryofpoten

tialn

egativesocialim

pactsfrom

theseris

ks

Redu

cedcommun

itycoh

esion

Redu

cedcommun

ityre

silience

Redu

cedcommun

ityamen

ity

Redu

cedvolunteerin

gProjectcreatesvolun

teering

Weakene

dpo

werand

governa

ncestructures

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ArafuraResourcesSocialImpactManagementPlan2016 14

4.1.1 Keyfindingsrelatingtopopulationandcommunities

Table4-3:Keysocialimpactassessmentfindingsinrelationtopopulationandcommunities

Keysocialimpactassessmentfindingsinrelationtopopulationandcommunities

TheAliceSpringsLocalGovernmentareahasapopulationof28,720,ofwhom18.5%areAboriginal.Amongthenon-Aboriginalpopulation,thereisa‘bulge’ofworkingageresidents,reductionin15-19yearoldsanddentintheagesof60to64,suggestingpeopleleaveonreachingretirementage.TheAboriginalpopulationismoreofapyramid,indicatingayouthfulagestructure.AnapparenttrendofmigrantsfromcountriessuchasIndia,thePhilippinesandSudansincethe2011CensusischangingthedemographicprofileofAliceSprings.TiTreeislargelyaservicetownprovidinggovernment,municipalandretailservicestosurroundingAboriginalcommunitiesandtravellersontheStuartHighway.Itisanunusualdemographicprofileasaresult.Althoughhalfthepopulationisnon-Aboriginal,therewerenoAboriginalchildrenenrolledintheTiTreeSchoolinmid-2015.OtherkeycommunitiesneartheprojectsiteareAnmatyerr,includingthefamilyoutstationofAlyuen,neartheAileronRoadhouse,Laramba(theclosestcommunitytotheborefield),andPmaraJutunta(SixMile).ThereismobilitybetweencommunitiesandsometensionsbetweenWarlpiriresidentsandvisitors.Keyriskstocommunitycohesionandresiliencecouldcomefromanin-migrationoffamilieswantingwork,increasedcashfromwagesandroyaltypayments,tensionsoverhowthebenefitsareshared,theconsequencesofincreasedexpenditureonalcoholandanyconflictandjealousiesbetweenlocalAboriginalpeopleandthelargeinfluxofworkers.ThisislesslikelytobeanissueinAliceSprings.

4.1.2 Managementandmitigationofidentifiedrisksandsocialimpacts

• Anon-goingfocusoncommunityengagementandcommunicationtoensureArafuraisresponsivetoemergingissuesandadaptsitsmanagementapproaches.

• Carefulmanagementoftheimpactsofalargeinfluxofworkersonhousing,communitycohesionandresilience,suchastemporaryaccommodationforfly-infly-outworkers.

• Negotiateagreementsthatfocusoncommunitydevelopmentandinvestmentinequitablelonger-termbenefits,inlinewiththeCentralLandCouncil’sinvestmentpolicyandcommunitydevelopmentapproachandinaccordancewiththenativetitleholders’wishes.

• Employcommunityliaisonofficerswhocanprovideadviceonlocalissues,accesssupportservices,andtoprovideadirectconduitbetweentheoperationsandthelocalcommunity.

• Ensureallprojectgovernancestructuresareinclusive,transparentandsensitivetootherdecision-makingstructures,suchaslocalgovernmentandtraditionalstructures.

• Encouragevolunteeringsotheprojectanditsworkersareseentobepartofthecommunity,forexamplebysupportingemergencyresponseunitsorencouragingworkerparticipationincommunityinvestmentprograms.

• Maintainanissuesregisterthatmakeiteasyforpeopletoreportanythingofconcernandrespondtoissuesraised.

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ArafuraResourcesSocialImpactManagementPlan2016 15

4.2 Employmentandeconomies

Themostsignificantbeneficialanddetrimental impactsofminingareassociatedwithworkforce issues:howtomaximise localemploymentwithout justpoachingworkersfromotheremployers,howtomovea largepoolofunemployed Aboriginal people into a productive workforce, avoiding saturation of communities with miningworkersatpeakperiods,whileencouragingfamiliestomoveandbecomepartofthecommunitylonger-termandboostinglocaleconomiesinasustainablewaysothebenefitslastbeyondthelifeofamine.Thesedilemmasarefacedbyallregionalminingprojects,particularlyintheintense,butgenerallyshort-term,constructionphase.

Whiletheeconomicbenefitsaresubstantial,thepositiveandnegativeimpactsflowingfromattemptstoemploylocals are highly uncertain given the availablework-ready labour pool relative towith Arafura’s labour needs,particularlyduringconstruction.Thiswillbecompoundedbycumulativeimpactsfromothermajorprojectsiftheyproceedconcurrently.

Key mitigation strategies will be a comprehensive employment and workforce development plan, adaptingrecruitment strategies to the local communities’ capacityandworkingcloselywitheducational institutionsandlocal people to maximise opportunities, set realistic targets and clearly communicate the barriers to theirachievement.

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ArafuraResourcesSocialImpactManagementPlan2016 16

Table4-4:Sum

maryofrisksan

dop

portun

itiesfo

remploy

men

tand

econo

mies,in

dicatorsand

mea

suremen

t

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Recruitm

entd

raws

peop

lefrom

existingjobs

inCen

tralAustralia,

resultinginim

pactso

nothe

rCen

tralAustralian

busin

esses,includ

ing

pastoral,retail,tourism

,ho

spita

lity,trad

es,

governmen

t,local

governmen

t.

3Th

reat

Med

ium

Given

theavailablelabo

urpoo

l,itislikely

thatm

anylocalw

orkerswillbedraw

nfrom

existingjobsfo

rthe

highe

rsalaries.This

wou

ldim

pactonthecapa

cityofo

ther

employerstoruntheirb

usinesseso

rdeliver

servicesasthe

yba

ckfillposition

swith

less

qualified

staff.

Thekeyim

pactislikelyto

belocalised

arou

ndTiTree,butth

eprojectisa

lsolikely

toim

pactontheavailabilityoftrad

espe

ople

inAliceSprin

gs.

Largelyou

tsideArafura’sc

ontrolbut

Arafurawillworkwith

indu

strygroup

sand

em

ployerstoconsiderth

eim

pactso

fits

recruitin

gan

dconsiderjointtraining

oppo

rtun

ities.

Arafurawillcon

siderusin

gworkersfrom

theSenten

cedtoaJo

bprogramand

the

useofalocalcon

tractlab

ourp

oolw

hichis

lesslikelyto

impa

ctonlocalemployers.

Lossofw

orkersto

theproject

Busin

ess

satisfaction

Redu

cedcoun

cil

services

Skillsg

aps

Workforcestatistics

onorig

inofw

orkers

Busin

esss

atisfactio

nsurvey

Skillsa

uditinAlice

Sprin

gsand

locally

Useoflocalcon

tractors

andbu

sinessesred

uces

localind

ustrycapa

cityfo

rothe

rwork,im

pactingon

bu

sinessc

osts,

compe

titiven

essa

nd

operations.

4Th

reat

Low

Thisismostlikelydu

ringconstructio

n,with

ashort-term

dem

andforservicesinAlice

Sprin

gsso

akingup

localcap

acity

and

im

pactingon

otherpoten

tialclientsa

nd

servicede

liverybybusinesses.

Arafurawillprepa

reaLocalIn

dustry

ParticipationPlan

asp

arto

fthe

constructio

nplan

and

workwith

local

employersa

ndbusinessg

roup

s.Lon

ger-

term

,businessesa

relikelyto

scaleup

to

meetthe

needsoflon

ger-term

service

contracts.

Commun

ity

satisfaction

Commun

ityattitu

des

survey

Localpeo

pledo

notwin

jobswith

theproject,

resultinginunm

et

expe

ctationsand

tension

betw

eenlocalpeo

ple,

Arafuraan

dprojectstaff.

5Th

reat

Med

ium

Therecouldbe

jealou

sybytrad

ition

al

owne

rsifth

eyperceivethatjobsarebeing

takenbyAbo

riginalpeo

plefrom

else

whe

re

(includ

ingAliceSprin

gs),no

n-Ab

original

workersfrom

AliceSprin

gsand

FIFO

workers.Th

iscouldlead

tote

nsionsand

resentmen

tbetweendiffe

rentgroup

sand

towardsth

eproject.

Thisislikelytobecaused

bythetig

htlabo

ur

market,lowparticipationrates,long-term

unem

ploymen

t,po

oredu

catio

nan

dskills,

job-read

iness,peo

pleno

twan

tingtowork

inam

ine,su

bstanceab

usean

dfamily

pressures.Itm

aybeha

rderto

attract

wom

enbecau

seoffam

ilypressures,

jealou

syorp

erceptionsth

atalljobsarefo

rmen

.Itislikelythatth

erewillbeun

realistic

Arafurawillhaveafocuso

ngood

commun

icationan

den

gagemen

ttoexplain

wha

tjob

sareavailable,helplocalpeo

ple

obtainth

emand

explainanysh

ortfallin

expe

cted

localjob

s,e.g.throu

gha

commun

ityre

ferencegrou

p.

Arafurawillm

axim

iseopp

ortunitie

sfor

localemploymen

tthrou

ghwork-read

iness

plan

ningand

training,com

mun

ication

abou

tworkingata

mine,dem

onstratin

gtherangeofworkavailable(in

clud

ingfor

wom

en)a

ndworkingwith

con

tractorsto

en

sureacom

mitm

enttolocalA

borig

inal

participation.

Num

bero

flocal

peop

leemployed

Participationan

dun

employmen

tratesinAlice

Sprin

gsand

local

commun

ities

Commun

ity

satisfaction

Censusdataon

pa

rticipationrates

Num

bero

flocal

peop

lewith

jobsat

theproject

Num

bero

fjob

seekersregistered

with

employmen

tand

commun

ity

developm

ent

providers

Commun

ityattitu

de

survey

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ArafuraResourcesSocialImpactManagementPlan2016 17

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

expe

ctationsofthe

workavailablean

dwha

tit’slikeworkingata

mine.

Localbusinesses,su

chas

AliceSprin

gscivil

contractors,trad

esand

othe

rsup

pliers,failto

winworkon

theproject,

resultinginunm

et

expe

ctationsand

ne

gativ

ityto

wardsth

eproject.

6Th

reat

Med

ium

Potentialcau

sesc

ouldbelackofcap

acity

or

specialistskillsorn

otbeingabletom

eet

Arafura’sq

uality,sa

fetyand

fina

ncial

stan

dards.

Theconseq

uenceswou

ldbebu

siness

frustrationinCen

tralAustraliaand

perha

ps

morebroa

dlyinDarwinorT

enna

ntCreek,

lead

ingtonegativity

and

unm

etbusiness

andgovernmen

texpectatio

ns.Bu

sinesses

maycloseth

roughfailingto

wincon

tracts

orbecau

seofb

road

erecono

mic

circum

stan

cesa

ndblametheproject.Or

theycou

ldbeill-in

form

edabo

utth

elevelof

localprocuremen

t.

Arafurawillprepa

reaLocalIn

dustry

ParticipationPlan

and

workwith

theNT

Governm

ent,Ch

ambe

rofC

ommerceand

ICNto

runindu

stryinform

ationsessions

with

itsT

ierO

necon

tractorsto

help

prep

arebu

sinessesforopp

ortunitie

sand

getfeedb

ackthatm

ayinflu

encehow

work

ispa

ckaged

.Prim

econtractorsw

illbeexpe

cted

to

committolocalopp

ortunitie

sintheir

supp

lycha

ins.

Num

bera

nd

valueofcon

tracts

awarde

din

CentralA

ustralia

andtheTerrito

ry

Busin

ess

satisfaction

StatisticsforLocal

Indu

stryParticipation

Plan

Bu

sinesss

urvey

Projectp

ersonn

el

relocateto

AliceSprin

gs

tolivewith

theirfam

ilies

andincreasedde

man

dforg

oodsand

services

resultsinlocalised

infla

tiona

rypressuresand

econ

omichardshipfor

theexistingpo

pulatio

n.

7Th

reat

Low

Thiscaninclud

epressureso

nprivate

housing,trad

es,childcareand

impa

cton

thegene

ralcosto

fliving.

Whileth

isremainsarisk,the

num

bero

ffamilieslikelyto

movetoAliceSprin

gs

shou

ldberead

ilyabsorbe

dwith

outm

ajor

infla

tiona

rypressures.Itislikelythatm

ost

workerswillalre

adyliveinAliceSprin

gsor

commun

itiesnearthe

mineorbeFIFO

workers.

Infla

tiona

rypressuresasa

resultofsc

arcity

ofsu

pply(e

.g.h

ousin

g)cou

ldlead

tolower

disposab

leincomesfo

rexistingresid

ents,

hardshipand

a‘twospeedecon

omy’,

particularlyifworkersre

ceiveincentives

andsubsidiesn

otavailabletoth

egene

ral

popu

latio

n.

Itispred

ictedtherewilllittlere

locatio

nof

familiesduringconstructio

nan

dpo

ssibly

30%ofthe

workforcelivinginAliceSprin

gs

durin

gop

erations(3

0%),bu

tthisw

ould

includ

eman

yexistingresid

ents.

Arafura’ss

hort-termaccom

mod

ation

strategywillta

keaccou

ntofA

liceSprin

gs’

capa

cityto

absorban

increasedpo

pulatio

nbe

causeofth

eproject.

Arafurawillm

onito

rthe

num

bero

flocal

workersand

num

bero

fworkersand

their

familiesre

locatin

gtoAliceSprin

gsbecau

se

ofth

eproject.

Costo

fliving

indicatorssu

chas

housing

affordab

ilityand

availability,

basketofg

oods

Househ

oldan

dindividu

al

incomesinAlice

Sprin

gs

Num

bero

ffamiliesre

locatin

gtoAliceSprin

gs

Commun

ity

satisfaction

Censusdata

Compa

nyre

cordso

nsourceofstaffan

dwhe

reth

eylive

Realestateda

taon

costand

availabilityof

privateho

using

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ArafuraResourcesSocialImpactManagementPlan2016 18

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Theim

pactsc

ouldbecumulativeifothe

rprojectsstarta

tthe

sametim

e.

Projecttim

elines,

contractsa

ndim

pacton

deman

dforg

oodsand

servicesispoo

rly

unde

rstood

bylocal

busin

esses,re

sultingin

insufficien

tresilien

ceto

ad

justto

aplann

ed

declineindem

and.

8Th

reat

Low

Localbusinessesm

ayover-extend

ifth

ey

investunsustainab

lyinstaffa

ndequ

ipmen

tinexpectatio

noflong-termworkon

the

project,pa

rticularlyduringtheconstructio

npe

riod.

Thiscanresultinperceptionsofa

‘boo

m

bust’econo

mythroughover-dep

ende

ncy

onone

projectand

asu

dden

declinein

projecta

ctivity

.

Procurem

entp

oliciestoaccoun

tfora

compa

ny’ssizeand

abilitytosu

stain

grow

th.

Workwith

theICN,N

TGovernm

enta

nd

Cham

bero

fCom

merceonindu

stry

briefin

gs.

Clearcom

mun

icationab

outthe

needsof

theproject,siz

eofavailablepa

ckagesand

lengthofcon

tractsavailable.

Num

bera

nd

valueofTerritory

andAliceSprin

gs

contracts

Busin

ess

confiden

ce

Num

bero

fAlice

Sprin

gsand

Territory

busin

essesw

inning

contracts

Num

bero

fAlice

Sprin

gsbusinesses

closingorgoinginto

administratio

nBu

sinesss

urvey

Deman

dbyth

eproject

fora

irlineseatsa

nd

short-term

accommod

ationinAlice

Sprin

gsre

sultsinhigh

occupa

ncylevelsan

dpricepressures,

displacingto

urism

inth

eregion

.

9Th

reat

Low

Thereisariskthatth

emovem

ento

flarge

numbe

rsofFIFOworkerswillcrowdou

tconven

tionan

dothe

rtou

rismbyredu

cing

accessto

AliceSprin

gsand

increasin

gho

tel

occupa

ncyratesa

ndpric

es.Th

isismost

likelydu

ringtheconstructio

nph

ase.

Whileth

isprovidesecono

micben

efitsto

some,itcou

ldre

duceth

eattractiv

enesso

ftourism

,akeyecono

micse

ctorfo

rthe

NT

Governm

ent.Tou

rismbusinesses,while

man

yaresm

all,aremajoremployerso

fAb

originaland

otherlocalpeo

ple.

Thismayoccurduringconstructio

nwhe

nit

isexpe

cted

tohave40

0-50

0workersatthe

siteatpeak.

Potentialdisp

lacemen

tand

costp

ressures

onlocalsho

rt-termaccom

mod

ationwillbe

mon

itoredasparto

fate

mpo

rary

accommod

ationstrategy,m

atching

tran

sportfromsiteto

thetim

ingofflights

andprovidingtempo

raryaccom

mod

ation

nearth

eprojecto

rinAliceSprin

gsas

necessary.

Occup

ancyra

tes

forh

otelsa

nd

airline

s

Averagepricesfo

rho

telroo

msa

nd

airline

seats

Busin

ess

satisfaction

Num

bera

nd

originofp

eoplein

tourism

and

ho

spita

lityjobs

Tourism

data

Num

bero

fflights

booked

Num

bero

fhotel

room

sboo

ked,cost

andtim

eofth

eweek

Busin

esss

atisfactio

nsurvey

Labo

urm

arketsurvey

Theprojectisp

erceived

byadjacen

tpastoralists

asincompa

tiblewith

existingland

useand

theiro

peratio

ns,leading

tote

nsionsand

poten

tial

forrep

utationa

limpa

cts.

10

Threat

Low

Percep

tionsofcom

petin

gland

usesm

ay

impa

ctontheviab

ilityofp

astoral

prop

ertie

s(orprovide

add

ition

alincome

throughdiversificatio

n).

Theem

ergenceoforgan

icfa

rmingon

AileronStationan

dad

joiningprop

ertie

s:

theprojectisun

likelytoim

pactonorganic

certificatio

n,butcou

ldcreatepe

rcep

tions

ofriskto

accreditatio

nan

dbran

deq

uity.

Discussio

nswith

adjacen

tlan

dusersto

provideinform

ationon

theproject,

potentialeffe

ctsa

ndpropo

sedmitigatio

n.

Establish

anexclusionzone

aroun

dthesite

toexclude

pastoralactivity

.

Commun

ity

satisfaction

Complaintsfrom

pastoralists

Commun

ity

satisfactionsurvey

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ArafuraResourcesSocialImpactManagementPlan2016 19

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Pastoraland

horticulturalprope

rtiesm

ay

alsobeconcerne

dab

outthe

impa

ctofthe

project’suseofg

roun

dwaterontheir

operations.

Increaseinlocaljob

slead

stohigherlevelsof

employmen

t,econ

omic

participation,im

proved

ed

ucationou

tcom

esand

redu

cedlevelsof

disadvan

tage.

19

Opp

ortuni

ty

High

Shou

ldArafurabeab

leto

realise

highrates

oflocalemploymen

tand

retention,th

ebe

nefitsw

illinclud

ehigherincome,

redu

cedlevelsofdisa

dvan

tagefo

rlocal

Aboriginalpeo

ple,increasedho

me

owne

rship,increasedlocalbusiness

capa

city,b

ettercap

acity

togetotherjobs

andaflo

w-oneffectto

otherse

ctorsd

ueto

increasedwealth

inth

ecommun

ity.

Arafurawillim

plem

enta

num

bero

fmeasurestoincreaselocalw

orkforce

participation,includ

eaworkforce

developm

entp

lan,KPIsforArafuraand

contractorsforAbo

riginalemploymen

t,men

torin

gan

dsupp

ortp

rogram

sfor

workersand

theirfam

ilies,w

orkingwith

indu

strygroup

s,procuremen

tstrategies

andworkingwith

scho

olsa

ndjobproviders

toincreasetran

sitiontojobsand

work-

read

iness.

Given

thelevelofe

ntrenche

ddisadvan

tage

anddisengagem

ent,itwillre

quire

a

patie

ntand

proactiv

eap

proa

chto

makea

diffe

rence.

Participationan

dun

employmen

trates

Localw

orker

retentionrates

Num

bero

fap

pren

ticeships

with

theproject

Levelofp

rivate

homeow

nership

Incomelevels

Levelsof

overcrow

ding

Other

socioe

cono

mic

indicators

Commun

ity

satisfaction

Censusand

labo

ur

marketd

ataan

dtren

ds

Compa

nydataon

nu

mbe

roflocals

employed

and

whe

therth

eyhad

jobsbefore,

prop

ortio

nsoflocal,

AliceSprin

gsand

FIFO

workers

Num

bero

femployees

buyingth

eiro

wn

home

Compa

rison

ofw

ages

with

averageincome

levels

Commun

ityattitu

de

surveys

Projectresultsindire

ct

andindirectdem

andfor

good

sand

serviceswith

in

thelocalecono

my,

drivingbu

sinessa

nd

region

alecono

mic

grow

th.

20

Opp

ortuni

ty

Med

ium

Busin

essg

rowthwilldep

endon

the

project’sprocuremen

tpolicies,cap

acity

and

willingnesstosupp

lycom

petitivean

dqu

ality

services,goo

dcommun

icationab

out

oppo

rtun

itiesand

am

atchbetweenthe

project’sneedsand

localcap

acity

tosu

pply.

Thismaycha

ngeovertimeasbusinesses

adap

t.Increasedde

man

dforlocalgoo

dsand

serviceswillgrowth

ecapa

cityoflocal

busin

essesa

ndth

eregion

,createjobsand

supp

orte

cono

micdevelop

men

t.

LocalInd

ustryParticipationPlan

to

emph

asise

theim

portan

ceoflocal

procurem

ent.

Packagingworktosu

itthecapa

citie

sof

localbusinessesa

ndencou

ragingjoint

ventures.

Workingwith

governm

entb

usinessg

rowth

programs.

Econ

omicdata

suchasG

DP

AliceSprin

gs

workforce

participationrates

Cham

bero

fCo

mmerce

mem

bership

Localproject

expe

nditu

re

Censusdata

Busin

esss

urveys

Repo

rtso

nlocal

indu

stryparticipation

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Table4-5:Summaryofpotentialsocialandeconomicimpactsfromtheserisksandopportunities

Positivesocialandeconomicimpacts Negativesocialandeconomicimpacts

Increasedlocalemploymentwiththeproject(higherstandardofliving,potentialhomeownership)

RegionaleconomicgrowthandbusinessgrowthBettereducationaloutcomes

Expectationsofworkforceparticipationnotmet

PoachingworkersfromotheremployersBusinessexpectationsoflocalprocurementnotmetReducedbusinesscapacityforotherwork,particularlyduringconstructionDisplacementoftourism

SomedisplacementofpastoralismBoombusteconomyIncreasedcostofliving

4.2.1 Keyfindingsinrelationtoemploymentandeconomies

Table4-6:Keyfindingsfromthesocialimpactassessmentonemploymentandeconomies

Keyfindingsfromthesocialimpactassessmentonemploymentandeconomies

AliceSprings,asthekeyregionalcentrefortheproject,hasexperiencedadeclineinpopulationandbusinessconfidence,withconsequentdownwardpressuresonhousingavailabilityandaffordability.

WhiletheresourcesectorisimportanttotheTerritory’seconomy,therehasbeenamarkeddeclineinminingexplorationandproduction,withmostoperatingminesintheTerritoryclosingorscalingbackproduction,creatingexpectationsofopportunitiesfromnewprojects.

AmajorinfluxofworkersandtheirfamiliestoAliceSpringscouldincreasedemandforgoodsandservices,inparticularhousing,whichcouldleadtoinflationarypressures.

Theprojectofferssubstantialregionaleconomicgrowthpotentialthroughexpenditureonwages,businessgrowth,thepotentialtoprovideservicesandtheindirectimpactoffamiliesmovingtoAliceSpringsandspendingmoneyinthelocaleconomy.However,failuretowinworkcouldgeneratenegativity,whileprovidingservicestotheprojectcouldalsoreducebusinesscapacityforotherworkandthereisalwaystheriskwithbigprojectsofcreatinga‘boombust’effect.TourismisakeyeconomicsectorinCentralAustraliaandwouldbevulnerabletosomeprojectimpacts,suchasthelossofstafftobetter-paidjobsandcrowdingoutofbusinessandgeneraltourismduetotheprojecttakingupshort-termaccommodationandairlineseats.AlthougheducationoutcomesareimprovingforAboriginalstudentsintheTerritory,thereisstillamajorgapbetweenAboriginalandnon-Aboriginaloutcomesandschoolattendancethatwillaffectjob-readinessfortheproject.TheDepartmentofEducationhasseenamajorincreaseofVETplacementsinAliceSpringsschoolsbutisnowstrugglingtofindplacementsforthesestudents.WhiletherearehighlevelsofunemploymentamongAboriginalpeople,therearelowlevelsofunemploymentamongnon-AboriginalresidentsandbettereducatedAboriginalpeople.AgeprofilessuggestalargecohortofAboriginalschoolleaversabouttoenterthelabourforce,sotheprojectprovidessubstantialopportunitiesforschoolleaverstotransitiontorealjobs.EmployersandbusinessgroupsreporttroubleattractingandretainingAboriginalandnon-Aboriginallabour.Theprojectmayalsoofferbusinessandjobopportunitiesinareassuchaslandmanagement.AdditionalsourcesoflabourmaycomefromthegrowingmigrantpopulationinAliceSpringsandtheNTGovernment’sSentencedtoaJobprogram.AlikelynegativeimpactoftheprojectisthatAboriginalandotherworkerswillleaveexistingjobs,particularlywithGovernmentquotesforAboriginalparticipationintheworkforce.Theprojectmaybeseenbypastoralistsasincompatiblewithexistinglanduse,forexampletheemergenceoforganicfarming.

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4.2.2 Managementandmitigation

• Anysuccessfulemploymentstrategywillneedtoworkwithserviceproviders,communitiesandfamiliestoaddressthemulti-facetedissuescontributingtopoorwork-readiness,recruitmentandretention,fromliteracyandnumeracytolifeskills,alackofrolemodels,familypressuresandpracticalissuessuchastransportandovercrowdedhousing(seesuggestedmodelbelow).

• HighexpectationsaroundjobsandbusinesscontractswiththeprojectwillneedtobemanagedthroughgoodcommunicationtoensureArafura’squalityandsafetystandardsareunderstoodandArafuraexplainswhysometargetsmaynotbemet.

• ProcurementandemploymentstrategiesneedtobemandatedforTierOnecontractorsandtheirsub-contractorstoensuregenuineeffortsaremadetoreachtargets.

• Recruitmenteffortsshouldincludegoodcommunicationaboutthedifferenttypesofjobsavailableatmines,withvisitstootherminesifpossible.

• Ifotherprojectsgoahead,ratherthancompetingforworkers,ArafurashouldcollaboratetorecruitfamiliestoliveinAliceSpringsifpossiblewheretheywillcontributetothelocaleconomyandbecomepartofthecommunity.

• Monitortheinflationaryimpactsofworkersubsidies,e.g.forrentalandchildcare.

• Monitorotherdisplacementimpactssuchastheavailabilityandcostofflightsandlow-costaccommodationusedbytourists.

• Monitorandcommunicateonissuessuchaslocallabourshortagestohelpensuretheregionstillhasaccesstopeopleandservices,suchastradespeople.

• SpecialinformationnightsinAliceSpringsmayhelprecruitmigrantworkerswhohavecometoAliceSpringslookingforworkandincreasetheparticipationratesofexistingAliceSpringsresidentswiththeproject.

• Procurementpoliciesshouldtakeaccountofthecapacityoflocalbusinesswhenpackagingtendersandensurelocalbusinessesdon’toverextendthemselvesbyunrealisticexpectationsoftheworkavailable.

• WorkwiththeNorthernTerritoryDepartmentofBusinessandCentralLandCounciltoexploreopportunitiestosupportlocalAboriginalenterprisedevelopment,suchasculturalawarenesstraining,servicestotheproject,microbusinessessuchascommunitygardensandhorticulture,plantandequipmenthireandlabourhire.

• Attendlocalcareersexpostopromotejobsattheproject,includingjobsforwomen.

• EstablishashopfrontinAliceSpringsandperhapsTiTreetotalktopotentialworkersandmakethispartofthecommunityliaisonofficer’srole.

• Workwithlocalcattleproducerstoensuretheproject’sactivitiesareseenascontainedandnotincompatiblewithotherlanduses.

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4.3 Servicesandinfrastructure

Summary

The predicted impact on services is highly uncertain as it is an indirect consequence of employment andworkforceissues.Ingeneral,itispredictedthatbothAliceSpringsandnearbycommunitiescanabsorbthelikelyworkforce without a great impact on existing services, such as health, housing and emergency services,particularly if an initial FIFO workforce is largely accommodated at an onsite workers’ village. However, asignificantinfluxofAnmatyerrpeoplereturningtocountrytoworkattheminecouldleadtopressuresonlocalcommunityhousingandcreateademandformoreprivatehousingandcommunityinfrastructureinTiTree,whilepopulationmobility (e.g.morepeoplewantingto live inthesmallcommunityofAlyuen)couldputpressureonhousingandcommunityinfrastructure,whichatpresentisminimal.

ImpactsonAliceSpringsarepredictedtobeminimalgiventhattherecruitmentofpeopletoAliceSpringsislikelytobeabsorbedwithinexistingcapacity.However, cumulative impacts ifotherdevelopments startat the sametime, could lead to pressures on scarce public housing (through inflationary impacts on the private housingmarket)andontheavailabilityandaffordabilityofprivatehousing.

Keymitigation strategies are to contain any impact on local services by providingmedical services on site forworkers,takingaccountofaccommodationneedsinrecruitment,short-termaccommodationstrategies,CodesofBehaviour toreducedemandsonpolicingservices through increasedanti-socialbehaviour, trafficmanagementplanstoreduceroadsafetyrisksandonsiteemergencyresponsepreparednesstoreducetheneedforexternalemergencyresponses.

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Table4-7:Sum

maryofrisksan

dop

portun

itiesfo

rservicesan

dinfrastructure,ind

icatorsan

dmea

suremen

t

Keyris

koropp

ortunity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Returnofp

eopletolocal

commun

itiesasw

ellas

the‘hon

eypo

t’effectof

peop

lem

ovingtoth

eareainexpectatio

nof

workorotherben

efits,

resultsinalocalised

po

pulatio

nincrease,w

ith

higherdem

andfor

governmen

tinfrastructureand

services.

11

Threat

Med

ium

Given

currentlevelsofovercrowding,the

re

islittle

cap

acity

toabsorban

yinflu

xof

peop

leto

com

mun

itiesnearthe

project.

Fore

xample,th

ereareon

lysixho

usesin

Alyuen

,afa

milyoutstationclosesttothe

project.

LocalA

borig

inalpeo

pleworkingonthe

projectm

ayaspire

tohom

eow

nershipon

freeho

ldland

inTiTree.

Curren

tly,the

reisnoprivateow

nershipof

housesinTiTreean

don

lytw

opu

blic

houses.Mosth

ousesa

reowne

dby

employerss

uchasth

eNTGovernm

ent,

Coun

ciland

localstores.

Thereislim

itedcapa

cityfo

radd

ition

al

employeehou

singshou

ldth

eproject

increasedem

andforlocalse

rvicessu

chas

police,health

and

edu

catio

ninTiTree,

Laramba

orA

lyue

n.

Arafuracanmitigatepressuresto

some

extentbyprovidingmed

icalfa

cilitieso

nsiteforw

orkers.The

immed

iateim

pacton

servicessu

chash

ousin

gmaybeshort-

term

.Lon

ger-term

,increased

econo

mic

activ

ityprovide

sopp

ortunitie

sforth

egrow

thofT

iTreeasare

gion

algrowth

town.W

hileth

eprojectm

aycau

seth

ese

pressures,th

eyarelikelyto

becumulative

with

otherm

iningan

dho

rticultural

projectsinth

eregion

,sothesolutio

nsare

largelywith

governm

ent,he

ncethe

impo

rtan

ceofw

orkingwith

theNT

Governm

enttopred

icta

ndplanfora

ny

increasedde

man

dforh

ousin

gan

dessentialservicesinpa

rticular.

Popu

latio

nan

dcommun

ity

compo

sition

Deman

dfor

governmen

tinfrastructureand

services

Num

bero

fmed

ical

presen

tatio

nsand

evacua

tions

Availabilityan

daffordab

ilityof

housing

Levelof

overcrow

dingin

localcom

mun

ities

Censusdata

Needsana

lysis

to

establish

baseline

dataonlocalservices

andprojected

chan

gesinde

man

dCo

mpa

nydataon

nu

mbe

roflocal

workers,w

hereth

ey

areliving,fa

mily

compo

sition

Jointp

lann

ingwith

NTGovernm

ent

Housingwaitin

glists

Investmen

tin

infrastructureor

equipm

enta

ssociated

with

theproject,suchas

road

upgrade

s,

commun

ications

netw

orksand

pow

er

supp

lym

ayprovide

indirectben

efits.

21

Opp

ortunit

y Med

ium

Projectinfrastructuremaydire

ctlyben

efit

commun

itiesnearthe

project.For

exam

ple,th

erearepo

or

telecommun

icationsse

rvicesto

Aileron

Road

housean

dAb

originalcom

mun

ities

nearth

eproject.

Theprojectm

ayalso

actasa

catalystfor

region

algrowthand

governm

ent

expe

nditu

reoninfrastructureto

supp

ort

popu

latio

ngrow

th,p

articularlyinTiTree.

Workwith

theCe

ntralD

esertR

egiona

lCo

uncil,theNTan

dAu

stralian

Governm

entsand

otherm

iningan

dho

rticulturalprojectstode

velopa

collabo

rativ

eap

proa

chto

region

al

econ

omicgrowthand

investmen

tin

infrastructure.

Capa

cityof

infrastructurein

commun

itiesnear

theproject

Project

expe

nditu

reon

infrastructure

(includ

ingresid

ual

infrastructure,

legacyprojects)

Jointp

lann

ingwith

NTGovernm

ent

Capitalexpen

diture

oninfrastructure

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ArafuraResourcesSocialImpactManagementPlan2016 24

Table4-8:Summaryofpotentialsocialimpactsfromtheserisksandopportunities

Positiveimpacts Negativeimpacts

Communitybenefitsfromupgradedinfrastructuresuchasroads,telecommunicationsandutilities

Improvedinfrastructure

Pressuresontheaffordabilityandavailabilityofpublicandprivatehousing

Pressureongovernmentservicesandcommunityinfrastructuresuchasemergencyresponse,health,education,landrelease,transportinfrastructureandutilitiesasaresultofpopulationincreases

4.3.1 Keyfindingsonservicesandinfrastructure

Table4-9:Keysocialimpactassessmentfindingsinrelationtoservicesandinfrastructure

Keysocialimpactassessmentfindingsinrelationtoservicesandinfrastructure

Akeypotentialimpactonservicesandinfrastructurewouldcomefromanyadditionaldemandonpublichousingincommunitiesneartheproject.Alyuen,whichisclosesttothemine,containsonlysixhouses,buttheprojectmightprompttherelocationoffamilieswantingworkorotherbenefitsfromtheproject.ThereisovercrowdinginpublichousinginAliceSpringsandcommunitiesandlongwaitlists.

WhileitisunlikelythattheprojectwouldimpactonpublichousinginAliceSprings,anyinflationaryimpactscouldhaveadisplacementeffectofpeopleleavingtheprivaterentalmarketseekingpublichousing.ThereisnocapacityforadditionalpublicorprivatehousinginTiTree,howeverincreaseddemandmaybegeneratedbyaninfluxofAboriginalornon-Aboriginalworkers,peoplewantingtostartenterprisestosupplythemine,increasedaspirationsforhomeownershiporanyadditionalneedforgovernmentemployeehousing.Theprojectmayaccelerateaproposedsub-divisionplannedforTiTree.AnyadditionaldemandforhousingorotherinfrastructureinTiTreeornearbycommunitieshasimplicationsforthetimingandcostofexpensiveessentialservicesinfrastructure,whichcurrentlyhaslittleredundancy.Anydirectimpactsonlocaleducationandhealthservicesarelikelytobeabsorbedandcouldbepositiveiftheprojectincreasesschoolattendance.However,anyindirectimpactsfromincreasedsocialdisordercouldbeincreasedpresentationsatthehealthclinicandabsenteeismattheTiTreeschool.AliceSpringshealthandeducationservicesshouldbeabletoabsorbanyincreasedpopulationfromtheproject.

Therecouldbeincreaseddemandforpoliceandemergencyserviceswithroadsafetyrisks,theneedforemergencyresponsetospillsandanyincreaseinpublicdisorderasaresultofsocialconflict.

Transportcouldbeaffectedbyworkerstakingupairlinesitesandreducingotheraccess,includingtourism,andbyincreaseduseoftheStuartHighwaybyprojecttraffic.

Theprojectcouldleadtoimprovedinfrastructurethatbenefitslocalcommunities,particularlyifthecombinationoftheNolansprojectandhorticulturalgrowthpromptthegrowthofTiTreeasaregionaleconomichub.Benefitscouldincludebettertelecommunicationsandessentialservices.

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4.3.2 Managementandmitigation

• AtemporaryaccommodationplanneedstotakeaccountoftheextenttowhichAliceSpringsandcommunitiesneartheprojectcanabsorbincreasesinpermanentpopulationsandshort-termconstructionworkers.

• Short-termFIFOworkersarebestquarantinedintemporaryaccommodation,suchasaworkers’village,toavoidnegativeimpactsoncapacityoflocalaccommodation(seealsoSection4.2)

• Consideropportunitiestocollaborateontrainingthatenhanceslocalservicedelivery,forexampleintrainingofAboriginalhealthworkersinTiTreewhomightbenefitfromworkexperienceintheproject’smedicalcentre.

• TheprojectprovidesachancetocollaboratewithGovernment,CentralDesertRegionalCouncilandotherprojectstoimproveinfrastructure,suchasroads,solarenergy,waterandtelecommunicationstosupportregionaleconomicgrowth.

• Setupaworkingpartywithallgovernmentdepartmentstopredictandplanforanyincreaseddemandforservicesandinfrastructure,inparticularhousingandessentialservices.

• Theimpactonlocalgovernmentservicesthroughlossofkeystaffmaybehardertomitigateshort-term,buttheremaybeopportunitiesforjointtrainingtohelpCentralDesertRegionalCouncilupskillstafftobackfillpositionsleftvacantbecauseoftheprojectandensureitcancontinuetoprovidemunicipalservices.

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4.4 Healthandwellbeing

HealthisdescribedbyVanclay(2003)as“astateofcompletephysical,mental,socialandspiritualwellbeingandnotmerely the absence of disease or infirmity” or by theWorld Health Organisation as “a state of completephysical, socialandmentalwellbeing”.TheWorldHealthOrganizationdefinesqualityof lifeas“an individual’sperceptionoftheirpositioninlifeinthecontextofthecultureandvaluesystemsinwhichtheyliveandinrelationtotheirgoals,expectations,standardsandconcerns.Itisabroadrangingconceptaffectedinacomplexwaybythe person’s physical health, psychological state, personal beliefs, social relationships and their relationship tosalientfeaturesoftheirenvironment”(fromNationalWellnessInstituteofAustraliawebsite,nwia.idwellness.org,sighted28July2015).

Themine is likely to rely heavily on a FIFO workforce, which brings with it welfare andmental health issuesprevalentintheresourceindustry,whichispredictedtobeasignificantissueformanagementgiventhatmanyofthecausesofmentalhealthissueshappenawayfromtheworkplace.

Publichealthissuesincludefearsaboutexposuretoradiationanddust.Thereisahighlevelofuncertaintyaboutpublicperception issues,whichdidnotratehighly inSIA interviewsbutwhichhavethepotential toemergeassignificantissues.Thisincludesfearsrelatingtowastestorage,radiation,contaminationofwaterandspills.

Mitigationstrategieswillincludegoodworkplacewellbeingprogramsandgoodcommunicationonriskissues.

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Table4-10

:Sum

maryofrisksan

dop

portun

itiesfo

rhea

lthand

wellbeing

,ind

icatorsan

dmea

suremen

t

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Projectp

ersonn

elliving

awayfrom

hom

ean

dlackingfamilyand

supp

ortn

etworks,leads

toand

exacerbates

men

talhealth

issues,

includ

ingthepo

tentialfor

self-ha

rm.

12

Threat

High

Workingata

remoteprojecta

wayfrom

ho

mean

dfamiliescan

lead

tolone

liness,

depressio

nan

dsuicideam

ongFIFO

workers.

Factorso

utsid

etheprojectm

aylead

to

poorm

entalhealth

forind

ividua

ls,whichis

difficulttopredict.

Localw

orkers,iflivinginte

mpo

rary

accommod

ationaw

ayfrom

family,m

ay

expe

riencesim

ilarp

ressures.

Theresultscan

beself-ha

rm,suicide

and

im

pactso

nworkforcem

oralean

dretention.

Traine

dmed

icalstaffo

nsite.

Med

iatio

nan

dcoun

sellingsu

pportb

ytraine

doffsite

specialists.

Workplacetrainingand

awaren

ess

programsform

anagers.

Goo

d,re

liablecommun

ication

infrastructureatsite

toena

blethe

workforceto

com

mun

icatewith

family

easily.

Incide

ntso

fself

harm

Staffm

orale

Takeupof

welfareor

supp

ortservices

Workforcedataon

self-ha

rmincide

nts

Workforcedataon

accessto

services

Staffsatisfactio

nsurveys

Commun

ityfe

arof

adverseim

pactto

pub

lic

healthand

thena

tural

environm

enta

sare

sult

ofth

eproject,suchas

dust,storageand

tran

sporto

frad

ioactiv

ematerialsan

dda

ngerou

sgood

s,pollutio

nfrom

spillso

rdam

failures.

13

Threat

Med

ium

Whileriskra

tingsfo

rthe

technical

likelihoo

dan

dconseq

uencesofthe

seissues

arelow,p

erceptionsofrisk

maybehigh

amon

gthelocalcom

mun

ityinre

latio

nto

radiation,wastestorage,pollutio

n,th

efailureoftailingsdam

sand

riskso

fche

mical

spillso

nsitean

ddu

ringtran

sport.

Thiscouldlead

tocom

mun

ityopp

osition

an

dde

layswith

regulatoryapp

rovals,

conflictb

etweengrou

psand

negative

impa

ctso

nArafura’srelationshipwith

the

commun

ity.

Tran

sparen

tcom

mun

icationan

dcommun

ityedu

catio

n,includ

ingfact

sheets,accesstoexpe

rts,ta

kingaccou

ntof

cultu

rallyapp

ropriatem

eansofcon

veying

riskan

dcontext.

Sharingan

dexplan

ationofbaselineda

ta

andmon

itorin

gresults.

Commun

ity

attitud

es

Commun

ityattitu

des

survey

Complaints

Improved

health

and

wellbeingofw

orkers

n/a

Opp

ortunity

Low

Theprojectm

ayhaveapo

sitiveinflu

ence

onth

ehe

althand

wellbeingofw

orkers,

throughbe

tterincomesorthrou

gh

workplacehealth

and

wellbeingprogram

s.

However,thisw

ouldbeha

rdto

qua

ntify

andwasra

tedaslowso

notinclud

edinrisk

ratin

gs

Healthand

wellbeingprogram

sinthe

workplace.

Healthand

wellbeing

indicators,e.g.

prevalen

ceof

chronicdiseases

Med

ical

presen

tatio

nsat

localclinic

Losttimeinjurie

s

Datafrom

clinicabo

ut

anytren

dsin

presen

tatio

ns

Compa

nydata

Num

bero

fworkers

failingdrugan

dalcoho

ltests

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ArafuraResourcesSocialImpactManagementPlan2016 28

Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

andfatalities

Participationin

lifeskills

programs

Drugand

alcoh

ol

abusebyworkers

Redu

cedsubstanceab

use

inth

ecommun

ity.

n/a

Opp

ortunity

Low

Drugand

alcoh

olpoliciesa

ndworkplace

programsm

aycon

tributetore

duce

substanceab

useinth

ecommun

ity.

Healthand

wellbeingprogram

sinthe

workplace,p

erha

psincon

junctio

nwith

localhealth

services.

Levelof

substanceab

use

Policerepo

rtso

fsubstanceab

use

andan

ti-social

beha

vior

Participationin

education

programs

Commun

ity

satisfaction

Policerepo

rtsa

nd

statistics

Num

bero

fedu

catio

nprogramsa

nd

numbe

rof

participan

ts

Commun

itysu

rvey

Increaseinprevalenceof

sexuallytran

smitted

diseases(STD

s)

n/a

Threat

Low

Thisriskwasassessedbu

tcon

sidered

tobe

low,p

articularlyafterm

itigatio

nstrategies

suchasw

orkerslivinginanaccommod

ation

villageand

Cod

esofB

ehaviour.

Code

sofB

ehaviour

Prevalen

ceof

STDs

inth

eregion

Participationin

education

programs

Healthclinicdata

Num

bera

nd

participationin

educationprograms

Increasedcrim

ean

dan

tisocialbeh

avior

n/a

Threat

Low

Thisrisklinksto

1and

2inSectio

n4.1an

dis

includ

edinth

econseq

uencesofa

ninflu

xof

additio

nalpeo

plean

dincreasedwagesand

royalty

paymen

tsincreasin

gcommun

ity

tensionsand

substanceab

use.Itcou

ldalso

resultfrom

con

flictbetweenworkersand

thelocalcom

mun

ity,forexampleworkers

stayingatth

eAileronRo

adho

usedu

ring

peakcon

struction.

Code

sofB

ehaviourfo

rworkers.

Alcoho

l-related

crim

ePe

rcep

tionsof

safety

Vand

alism

of

projectfacilitie

s

Policestatisticso

ncrim

ean

dan

ti-social

beha

vior

Policerepo

rtso

nworkerinvolvemen

tinincide

nts

Commun

ityattitu

de

surveys

Cross-referencetoother

sections

Riskstohu

man

health

and

safetyare

coveredin1.2.6ofthe

riskre

gister,

includ

ingbu

shfires,crashesand

spills,

onsiteincide

ntsa

ndexplosio

ns.

Ro

adsa

fety

Volumeofproject

trafficonthe

Road

safetydata,e.g.

fatalitiesa

ndinjurie

son

theStua

rt

Highwayattrib

utab

le

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Keyris

kor

oppo

rtun

ity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Road

tran

sportrisk

sarecovered

inSectio

n1.2.10

ofthe

riskre

gister.

Theseriskswou

ldalso

impa

cton

commun

ityamen

itycovered

inund

er

commun

itycoh

esioninSectio

n4.1ofth

isrepo

rt.

Stua

rtHighw

ay

Road

repa

irsasa

resultofproject

traffic

Num

bero

fem

ergency

respon

se

incide

nts

toprojecttraffic

Compa

nystatistics,

trafficcou

nts

Governm

entd

ataon

repa

irsand

mainten

ance

Policean

dcompa

ny

data

Table4-11

:Sum

maryofpoten

tialsocialimpa

ctsfrom

theseris

ksand

opp

ortunitie

s

Opp

ortunitie

sRisks

Improved

health

and

wellbeingofw

orkers

Redu

cedsubstanceab

useinth

ecommun

ity

Alcoho

land

othersu

bstanceab

usebyworkersand

inth

ecommun

ity

Depressio

nan

dsuicideofFIFOworkers

Increaseinse

xuallytran

smitted

dise

ases

Increasedcrim

ean

dan

tisocialbeh

aviour

Increasedroad

safetyrisks

Fearsa

boutexposuretohazardsand

radiation

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4.4.1 Keyfindings

Table4-12:Keyfindingsfromthesocialimpactassessmentinrelationtohealthandwellbeing

Keyfindingsfromthesocialimpactassessmentinrelationtohealthandwellbeing

ThereisagapbetweenthehealthstatusofAboriginalandnon-AboriginalTerritorians,includingchronicdiseasesandmentalhealth.Whiletheprojectmaycontributetoimprovedoutcomes,throughimprovedsocioeconomicstatusorworkplaceprograms,itwillbehardtocorrelatethisagainstanymeaningfulindicators.However,poorhealthislikelytohaveanimpactonemploymentstrategies.Alcohol-relatedviolenceisakeyissuethroughouttheNorthernTerritory.Akeyfearofmanyintervieweesfortheprojectwashowtheprojectmightcontributetoincreasedalcoholabuse,fightsanddomesticviolencethroughincreasedavailabilityofcashandsocialtensionsofaccesstobenefits.ThereislikelytobeamajorcomponentofFIFOworkersontheproject,particularlywithupto500workersneededforpeakconstructionperiods.Thishasimplicationsforworkers’mentalhealthandpotentialforsubstanceabuse.Whileactualriskfromradiationandchemicalsisconsideredlowintheprojectriskassessment,perceptionsofriskstopublichealthmaygeneratefearsaboutissuessuchasradiation,dustandpollutionfromspillsandgenerateconflictandoppositiontotheproject,inturnimpactingoncommunitycohesion.

4.4.2 Managementandmitigation

• Increasecommunitywellbeingbyincorporatinghealthylifestylesprogramsinitsemploymentandworkplacepackage.

• Drugandalcoholtestingcancontributetoreducedsubstanceabusebyworkers,includingvolatilesubstances.

• Roadsafetyriskscanbereducedwithtrafficmanagementplans,notdrivingatnight,codesofbehaviourforworkersandbussinginworkersfromAliceSpringsandnearbycommunities.

• EmploymentandwelfarestrategiesandgoodcommunicationinfrastructurecanreducelonelinessanddepressionofbothFIFOandlocalworkersthroughculturalawareness,rostering,mentoringandworkplaceenvironmentalissues.

• Monitorandreportonamenityissues(e.g.noiseanddust),providetransparentreportingofresultsandensuregoodriskcommunication.

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4.5 Naturalresourcesandtheenvironment

Considerationofenvironmental impacts includesthesocialconsequencesofenvironmentaldisturbancesuchasbiophysicalimpactsonlanduse,qualityofwater,species,landscape,amenityandrehabilitationoftheland.ThisisparticularlyacuteforAboriginalpeople,whoretainclosespiritualandlifestyleconnectionswiththeirland.

Whileactual lossofaccess toandenjoymentof thenaturalenvironment ispredicted tobe low, theremaybenegativeperceptionsofchangestothelandscapebecauseofthescaleoftheproject.

Concernsaboutcumulative impactsonthesitearepredictedtobeminimalbuttherecouldbeconcernsaboutcumulative industrial andminingdevelopment inCentralAustralia impactingon theenvironment, inparticularwatersuppliesandlifestylevalues.

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Table4-13

:Sum

maryofrisksan

dop

portun

itiesfo

rnaturalre

sourcesan

dtheen

vironm

ent,indicatorsand

mea

suremen

t

Keyris

koropp

ortunity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Projectp

rovide

sop

portun

itiesfo

rtrad

ition

alowne

rsto

workinland

man

agem

ent

programso

ntheiro

wn

coun

try.

22

Opp

ortunity

Low

Theop

portun

ityto

winland

man

agem

ent

contractsw

ithth

eproject,includ

ing

mon

itorin

gan

dreha

bilitation,provide

sop

portun

itiesfo

rlocalra

ngergroup

sto

workon

cou

ntryand

enh

anceth

eirskills.

Thiswasgiven

alowra

nkingmainlyba

sed

onArafura’sexperiencedu

ringtheEISbu

ttheop

portun

itiesre

main.

Arafuratoworkwith

theCe

ntralLan

dCo

unciland

alocalcom

mun

ityre

ference

grou

ptoenh

anceopp

ortunitie

s.

Prop

ortio

nof

environm

ental

mon

itorin

gan

dreha

bilitation

workdo

neby

localran

ger

grou

ps.

Compa

ny

expe

nditu

reon

rangergroup

s.

Employmen

tin

rangergroup

sand

contractsa

warde

dto

rangersa

ndother

contractors.

Gen

eral

n/a

Otherim

pactsw

ouldinclud

ethesocial

conseq

uencesofe

nviro

nmen

talrisk

scaptured

inotherse

ctionsofthe

Risk

Assessmen

t,includ

ingpe

rcep

tionsand

fears.Thisinclude

s1.2.1(a

irqu

ality

),1.2.2

(faun

a),1.2.3(impa

ctso

nflo

rainclud

ing

clearin

g),1.2.4(impa

ctso

ngrou

ndwater

suchasd

rawdow

n,se

epagean

dtailings

failures),1.2.9(con

taminationofsu

rface

water).

Areaoflan

dcleared

Projectd

elays

becauseof

commun

ity

oppo

sition

Water

consum

ptionan

dwaterqua

lity

results

Radiation

mon

itorin

gresults

Areare

habilitated

Noiselevelsan

dcomplaints

Dustlevelsan

dcomplaints

Num

bero

fen

vironm

ental

incide

ntsrep

orted

Commun

ity

satisfaction

Compa

nyre

ports

Environm

ental

Man

agem

entP

lan

Grie

vanceregister,

numbe

rofcom

plaints

Commun

ityattitu

des

survey

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Table4-14:Summaryofpotentialsocialimpactsfromtheserisksandopportunities

Potentialopportunities Potentialrisks

Gainofbiodiversityofspeciesandhabitat Environmentalrisksimpactingontheuseandenjoymentofthearea

Hydrologicalrisksimpactingontheavailabilityandqualityofgroundwater

Impactsonamenity,suchasnoiseanddust

4.5.1 Keyfindings

Table4-15:Summaryofkeyfindingsfromthesocialimpactassessment

Summaryofkeyfindingsfromthesocialimpactassessment

Anyenvironmentalimpactsarelikelytohaveconsequentsocialimpacts,inparticularlyforAboriginaltraditionalownersandpastoralists.Thiscouldincludechangestothelandscape,impactsonhabitatsandgroundwater,noiseanddustaffectingamenityandreducedaccess,floraandfaunaimpactingontraditionalactivitiessuchashuntingandfood-gathering.

WaterinparticularhasimportantculturalvaluesforAboriginalpeople,connectingwithdreamings,traditionalpatternsofmobility,accesstosoaksandassociationswithwatercourses.Althoughhydrologicalstudiessuggestnegligibleimpact,therearelikelytobefearsaboutanyimpactsonwaterqualityandavailability.

Aboriginalpeoplearekeentodoanyjobsontheirowncountry,particularlylandmanagementjobssuchasrangerprograms.

4.5.2 Managementandmitigation

• Transparentmonitoringandreportingofallenvironmentalandbiodiversityissues.

• Clearandappropriatecommunicationonissuesofconcernsuchaswaterquality,radiationandlikelyvisualimpacts.

• Anadaptivemanagementapproachtoanyemergingissuesofconcern,e.g.byvaryingmonitoringprogramsandmakingexpertadvisersavailabletoanswerquestions.

• MaximiseopportunitiesforAboriginalpeopletobeinvolvedinlandmanagement,throughrangerprograms.

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4.6 Cultureandwayoflife

Ingeneral, theproject isexpectedtohaveminimal impactonAboriginal lifestylesandcultureexcept,perhaps,throughindirectimpactsiftheminechallengesculturalauthorityorcontributestothebreakdownoftraditionallawandculturalpractices.

Themine could impacton thebroader lifestyleandcultureof the region ifmining replacespastoralismas thepredominanteconomicsectorandbringsinworkersandtheirfamilieswhohavenoconnectiontoorappreciationofthearea’sstrongpastoralwayoflife.However,thislikelihoodisconsideredaslow.

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Table4-16

:Sum

maryofrisksan

dop

portun

itiesfo

rcultureand

wayoflife

,ind

icatorsan

dmea

suremen

t

Keyris

kor

oppo

rtun

ity

No

Residu

alrating

Commen

tMan

agem

ent

Indicators

Metho

dsto

measure

Projecta

ctivity

resultsin

percep

tionsby

pastoralistsa

nd

recreatio

nalusersand

trad

ition

alowne

rsofa

chan

gedland

scap

ean

drestric

tedaccessto

trad

ition

alland

sand

conservatio

nzone

s.

15

Threat

Low

Redu

cedaccessto

cou

ntrycou

ldhave

impa

ctso

ncultu

ralactivities,suchas

hunting,cam

pingand

gathe

ringoffo

od,

med

icineorm

aterialsfora

rt.

Redu

cedaccessto

recreatio

nalareas,such

asAnn

asCon

servationRe

serve,cou

ld

impa

ctonpe

rcep

tionsofq

ualityoflife

althou

ghth

iswou

ldim

pactonasm

all

numbe

rofp

eople.

Aboriginalcon

nectionsto

land

and

water

areim

portan

taspectsofculture.Ifpe

ople

feelth

eirlan

dscape

sand

lifestyleshave

been

cha

nged

,the

ymayfe

eldisp

lacedby

miningactiv

ity.

Agreem

entsto

allowcon

tinue

daccessfo

rcultu

ralactivities.

Commun

ity

satisfaction

Specialsite

sin

exclusionzone

s

Complaints

Dataonnu

mbe

rof

sitesdisturbe

d,

damaged

orin

exclusionzone

sCu

lturalH

erita

ge

Man

agem

entP

lan

register

Commun

ityattitu

de

survey

Projecta

ccelerates

cultu

ralcha

ngeoflocal

Aboriginalcom

mun

ities,

includ

ingredu

ced

strengthofculture,

langua

geand

customs.

16

Threat

Low

Redu

cedstrengthofculturem

aybethe

resultoforcon

tributetore

duced

commun

itycoh

esionan

dresilience,

includ

ingade

clineinre

spectfortrad

ition

al

authority

and

und

erminingoftrad

ition

al

governan

cestructures(covered

abo

vein

Section4.1)

Cultu

raland

Herita

geM

anagem

entP

lan

Cross-cultu

ralawaren

essp

rogram

sand

indu

ctionsofw

orkers.

Levelofcross-

cultu

ral

awaren

ess

Num

bero

fcross-

cultu

ralawaren

ess

coursesrun

.Staffa

ttitu

desu

rveys.

Retentionofculture

throughgreaterm

arket

fora

rtand

supp

ortfor

cultu

ralprogram

s.

n/a

Low

Thisop

portun

itywasassessedas

immaterial,althou

ghth

eprojectm

ay

increaseopp

ortunitie

sforlocalartsa

les

andspon

sorshipofculturalactivities.

Commun

ityre

latio

nsand

com

mun

ity

investmen

t.Saleso

flocalart

byproject

workers

Artsales

Cross-reference

Otherculturaland

herita

gerisksa

re

coveredinth

eriskassessmen

tat1

.2.5,

suchasimpa

ctso

nsitesth

rough

destructionorvibratio

nan

ddraw

downof

soaksw

ithculturalsignifican

ce.

Iden

tifyingkno

wnsitesand

ensuring

exclusionzone

swhe

repracticab

le

Incide

nts

Cultu

ralH

erita

ge

Man

agerPlanan

drecordofa

ny

incide

nts.

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ArafuraResourcesSocialImpactManagementPlan2016 36

Table4-17:Summaryofpotentialsocialimpactsfromtheserisksandopportunities

Positiveimpacts Negativeimpacts

Retentionofculturethroughgreatermarketforartandsupportforculturalprograms

Lifestylesandlivelihoodsdisruptedbyreducedaccesstoland

Impactsonheritage,spiritualconnectionsorsacredsitesthroughdamage

Reducedsenseofcultureandattachmenttoplace

4.6.1 Keyfindingsinrelationtocultureandheritage

Table4-18:Keyfindingsfromthesocialimpactassessmentinrelationtocultureandheritage

Keyfindingsfromthesocialimpactassessmentinrelationtocultureandheritage

ManyfactorshavealreadyimpactonthecultureandwayoflifeofAboriginalpeople,whichcouldbefurtherunderminedbychallengestotraditionalauthorityandconnectionstocountry.Anyimpactsonlandandwatercouldunderminespiritualconnectionstoland.

4.6.2 Managementandmitigation

Aculturalawarenessprogram,includingthesignificanceofsacredsites,shouldbemandatoryforallmanagementstaffandworkersandisachanceforlocaltraditionalownerstodevelopconsultanciestodeliversuchprograms.

Theprojectcanhelpmaintainculture,by learning fromtraditionalknowledge in relation to landmanagement,respectingAnmatyerrcultureandcommissioningartandsponsoringactivitiesthatmaintainstoriesandculture.

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4.7 Humanrights

Ingeneral,itisnotenvisagedthattheprojectwouldhaveastrongimpactonhumanrights,whichareprotectedbyanumberofstatutesandnativetitleorganisations,includingtheCentralLandCouncil(CLC).

Thekey impactsonrightsaremore likelytobeunintended,suchasgendered impacts(factorsthatparticularlyimpact on women such as family responsibilities) reducing workforce participation by women or racismexperiencedbyworkers.

Thereisalsoanopportunitytocontributetoakeyhumanright,describedinArticle25as“therighttoastandardoflivingadequateforthehealthandwellbeingofhimselfandofhisfamily,includingfood,clothing,housingandmedicalcareandnecessarysocialservices”.

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Table4-19

:Sum

maryofrisksan

dop

portun

itiesfo

rhum

anrigh

ts

Keyris

koropp

ortunity

No

Residu

al

ratin

gCo

mmen

tMan

agem

ent

Indicators

Metho

dsto

measure

Human

rightsbreache

s,

includ

ingineq

uitable

accessto

jobs,b

reache

soflabo

urlaws,lesser

accessbywom

ento

jobs

andhu

man

rights

breachesinth

eproject’s

supp

lycha

ininAustralia

andoverseas.

17

Threat

Low

Vulnerab

leand

margina

lised

pop

ulations

aremorelikelytohavetheirh

uman

rights

infringed.

Keyriskscou

ldinclud

eineq

uitableaccessto

jobsbywom

en,abu

seofw

orkexpe

rience

programs,und

er-paymen

toflow

-skilled

localand

overseasw

orkersand

breache

sof

human

rightsinth

eproject’ssu

pplycha

in.

Theconseq

uencesarere

ducedqu

ality

of

lifeforw

orkersand

poten

tialrep

utationa

lda

mageforthe

project.

Incorporatingcultu

ralcon

siderationsinto

workplaceplans.

Goo

daw

aren

esso

fhum

anrightsand

labo

urobligationsbyprojectm

anagers.

Cross-cultu

ralawaren

esstrainingforstaff

andcontractors.

Performan

cecriteriam

anda

tedin

contractstoen

sureadh

eren

ceto

hum

an

rightsa

ndlabo

urre

quire

men

ts.

Compliancewith

labo

urlaws

Diversity

of

workforce,

includ

ingwom

en

Commun

ity

satisfaction

Repo

rted

grie

vances

orcom

plaints

Workforcestatistics

ondiversity

Programstosupp

ort

diversity

Provision

ofchildcare

Staffa

ndcom

mun

ity

surveys

Projectp

ropo

nentand

no

n-localw

orkersexhibit

racistbeh

avioursinthe

workforce.

18

Threat

Low

Racism

maybeinad

verten

tortho

ughtless

butthe

con

sequ

encesinclude

redu

ced

oppo

rtun

itiesfo

rlocalpeo

plean

diss

ues

with

morale,re

tention,m

entalhealth

and

commun

ityre

latio

ns.

Aboriginalpeo

plemovingtoAliceSprin

gs

forw

orkwith

theprojectm

ayalso

expe

rienceracism

inAliceSprin

gs,for

exam

plewhe

nseekingaccommod

ation.

Crossc

ulturalawaren

esstrainingforstaff

andcontractors.

Performan

cecriteriaincon

tractsand

Co

deso

fBeh

aviourfo

rworkers.

Men

torin

gan

dsupp

orttoresolvean

yiss

ues.

Prevalen

ceof

complaints

Complaintso

rgrievances.

Staffsurvey.

Free,p

riora

ndinform

ed

consen

tn/a

Threat

Prop

onen

tssh

ouldensurevulnerab

le

peop

leareabletoprovide

free,p

riora

nd

inform

edcon

sentwhe

nmakingagreem

ents

onprojects.

Thiswasra

tedaslowriskdue

toth

eroleof

theCLCinre

presen

tingtheinterestso

ftrad

ition

alowne

rsduringagreem

ent

makinginadd

ition

tocom

mun

icationby

Arafura.

Goo

dcommun

icationwith

trad

ition

al

owne

rs.

Roleofthe

CLCinre

presen

tingthe

interestso

ftraditio

nalowne

rsund

erth

eNativeTitle

Act.

Commun

ity

satisfaction.

Commun

ityattitu

de

surveys.

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Table4-20:Summaryofpotentialsocialimpactsfromtheserisksandopportunities

Potentialnegativeimpacts

InfringementonAboriginalhumanrights,includingracing,inequitableaccesstojobs,labourrightsandreducedaccesstodecision-makingbyvulnerablepopulations.

Thekeynon-Aboriginalinfringementofhumanrightsisthepotentialforinfringementonpropertyrights.

4.7.1 Keyfindingsfromthesocialimpactassessment

Table4-21:Summaryofkeyfindingsinrelationtoimpactsonhumanrights

Summaryofkeyfindingsinrelationtoimpactsonhumanrights

InfringementonAboriginalhumanrights,includingracing,inequitableaccesstojobs,labourrightsandreducedaccesstodecision-makingbyvulnerablepopulations.Thekeynon-Aboriginalinfringementofhumanrightsisthepotentialforinfringementonpropertyrights.

4.7.2 Managementandmitigation

• Makemanagersawareofthepotentialforhumanrightsabuses(orbreachesofgoodworkplacepractices),howpeoplecansafelyraiseanyconcernsandensurethereareappropriategrievanceproceduresandremediesavailable.

• Culturalawarenesstrainingwillhelpotherworkersunderstandwhatconstitutesbreaches,suchasracialdiscriminationintheworkplace.

• CLCtoensurefree,priorandinformedconsentofnativetitleholdersduringagreementmaking.

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5. MANAGEMENTPLANSANDPOLICIES

The following outlines of management plans referred to in the Social Impact Management Plans have beendeveloped to ensure Arafura manages the Nolans operation in compliance with its regulatory obligations,ensuring stewardship of the environment and the safety of all workers, contractors and members of thecommunity. These plans set performance objectives for which Arafura will report progress in its annualSustainabilityReport toprovide transparency to the community. Theseplanswill be finalisedonce theprojectachieves its financial investment decision andwill contain action plans andmechanisms for the community toreviewtheresults.

TheSIMPcomplementsseveralothermanagementplansattachedtotheEnvironmentalImpactStatement:

• Environmental/BiodiversityManagementPlan

• TrafficManagementPlan

• RadiationManagementPlan

• CultureandHeritageManagementPlan

• WasteManagementPlan.

5.1.1 EmploymentandWorkplaceDevelopmentPlan

The employment and workplace development plan will be prepared before Arafura and its contractors startconstruction.ThisplanwilllinktoanyagreementsignedwithtraditionalownersthroughtheCLC.Keyelementsmaybe:

• opportunitiesfordirectandindirectjobs,timing(constructionoroperational)andduration

• askillsauditofthepotentiallocalworkforce(fromAliceSpringsandnearbycommunitiessuchasLarambaandTiTree)andgapanalysisthatincludescurrentskills,likelyaptitudeforvariouspositionsavailableandbesttrainingapproach

• anemploymentstrategyforwomen

• liaisonwithlocalmulticulturalcommitteestoexploreemploymentofmigrantslivinginAliceSprings

• liaisonwiththeDepartmentofCorrectionalServices’‘SentencedtoaJob’program,particularlyforpeakrequirementswherethelocallabourforcemaynotbeavailabletoexplorewhereprisonerscanproducegoodsandservices

• theproposedHRregimeandemploymentapproach(directjobs,throughcontractors,labourhire)

• anAboriginalemploymentandtrainingstrategy,includingpre-employmentprograms,mentoringandsupportprogramssuchaslifeskillsandmoneymanagement

• howotherworkerswillbesourced(e.g.skilledmigration,fly-inflyout)

• arecruitmentstrategyforlong-termworkerstorelocatewithfamiliestoAliceSprings

• proposedrostering,transportofworkerstositeandonsiteaccommodation

• cross-culturaltraining

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• codeofbehaviorforworkers,e.g.areasofflimits,interactionwiththecommunity,respectforculturalsites(seebelow)

• workhealthandsafetyplans,e.g.zerotoleranceofdrugsandalcohol,fatiguemanagement

• safetyissuesforcommutingworkers(e.g.provisionoftransport,communications,fatigueandtheconditionoftheroads,drivercourtesy)

• howtheemploymentandworkforceplanwillbemanagedwithsub-contractors

• longer-termemploymentpathways,suchasworkingwiththeDepartmentofEducationonvocationaleducationandtrainingprograms,workplacetraining,workexperienceforschoolstudents

• reportingprogressagainstagreedtargetsandreasonswhytargetsmaynothavebeenmet.

5.1.2 LocalIndustryParticipationPlan

Arafuraanditscontractorswillgiveprioritytosourcingsuppliesandservicesfromcommerciallycompetitivelocal(regional and Territory) businesses that meet the company’s safety, quality, financial stability and workplacestandards.

Thiswillbeachievedthroughalocalprocurementpolicythatmaycover:

• advanceplanningandcommunicationoflikelysupplyandservicepackages

• workingcloselywiththeNorthernTerritoryIndustryCapabilityNetwork(ICN)toensurelocalcompaniesareawareofpackagesandhavethechancetobeconsidered(includingindustryinformationsessionstoallowcompaniestoplan)

• workingwiththeICNtounderstandlocalcapabilities,whichmayinfluencehowscopesofworkarepackaged

• workingwiththeDepartmentofBusinesstomaximisesmallbusinessopportunities,suchasjointventures,consortia,capacitydevelopmentandlinkswithArafura’scommunitybenefitsprograms

• providingincentivestocontractorswhomeetlocalprocurementtargets

• reportingagainstagreedtargetsforlocalprocurement.

This local procurement policy will need to take account of the cumulative effects of other projects on localcapacity, provide clear communication on the length of contracts to ensure businesses arewell-prepared anddon’toverextendinanticipationofwork,manageexpectationsandcommunicatereasonswhylocalcompaniesmaybemissingoutoncontracts.

5.1.3 CommunityEngagementPlan

Consultation for this project has been guided by an initial community engagement plan and a separatecommunityengagementplanforpreparationoftheEnvironmentalImpactStudyandSocialImpactAssessment.This strategy covers key stakeholders, issues analysis and summary of preferred communication tools to suitdifferentaudiences.

TheengagementstrategyisinlinewiththeInternationalAssociationforPublicParticipation(IAP2)CoreValues,Code of Ethics and Spectrum of Public Participation which provides guidance on the level of participationaccordingtolevelsofinterestandimpact,thecomplexityofaproject,levelsofuncertaintyandlikelycommunityperceptionsorfears.

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Thisengagementstrategywillbecontinuedandrevisedtocovertheconstructionandoperationalphasesoftheproject. This gives the community an opportunity to contribute to decision-making, provide feedback andinsights,raiseissuesandreceiveinformationfromthecompany.

Theseinitiativesmayinclude:

• reportingagainstanannualsustainabilityplanorannualreportcardagainstgoals

• acommunityreferencegroupcoveringtraditionalownersandotherkeyfamiliesandstakeholderssuchastheCentralLandCouncil,NorthernTerritoryGovernmentandCentralDesertRegionalCouncilthatcouldmeetperiodicallytodiscussissuessuchasworkerbehavior,employment,communitybenefits,environmentalmonitoring(needtoagreeongovernance,ensureitisrepresentativeofthecommunity,agreeonprioritiesandtermsofreference,publicationofminutes,reporting,annualsurveystodeterminesatisfactionwiththeprocess)

• rolesandresponsibilities,includinganArafuracommunityliaisonofficerandlocaloffice

• engagementactivitiessuchascommunityinformationsessions,familydays,sitevisits,website,displaysatlocalshowsandshoppingcentres,briefings

• agrievanceprocedure/issuesregister(seebelow)

• asponsorshiporcommunityinvestmentpolicy

• ongoingcommunicationwiththecommunity

• mechanismsforregularreviewandevaluation.

5.1.4 CommunityBenefitsTrust

Arafura wants to ensure the agreed benefits go to local people, some of which is covered in the abovemanagementplans.

Acommunitybenefits trustwillbenegotiatedbetweenArafuraand theCentral LandCouncil (onbehalfof thetraditional owners), as part of the company’s mining agreement with traditional owners. This agreement willspecifytherolesandobligationsofbothparties.Theagreementcouldincludesomeorallofthefollowing:

• rolesandresponsibilitiesofeachparty;

• theformationofareferencegroup;

• principlesandobjectivesforhowbenefitsaredistributed(e.g.wholeofcommunityvs.families,notforinfrastructurethegovernmentwouldalreadybeproviding);

• benefitssuchasupgradedinfrastructure(e.g.roadandtelecommunications);

• commitmentsregardingemployment;

• transparencyaroundthequantumanddistributionofthebenefits;

• percentagetobeinvestedincommunitydevelopmentorlong-terminvestment;

• howwillitbereviewedandreportedagainst(e.g.annualreportpublished);

• levelofongoingcommunityengagementregardingprojectstobefunded;

• governancestructures;

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• responsibilityforcommunitydevelopmentprojects;

• environmentalmanagement;

• culturalheritagesitemanagement;and

• businesssupport.

5.1.5 Grievanceprocedures/issuesregister

Aneffectivegrievanceprocedurewillensurethecommunityisabletoraiseissuesofconcern,beconfidenttheseissueswillbetakenseriouslyandrespondedtooraddressed,provideamechanismforpromptidentificationofemergingissuesandguidereportingoncommunityissues.

Thegrievancemechanismscouldinclude:

• anoutlineofhowtoreportissues(e.g.1800number,emails,phonenumber,communityliaisonofficer)

• protocolsforArafuratorespond(includingtimelinesforaresponse)

• anissuesregister

• annualreportingoncomplaintsandtheirresolution,includinganalysisofsystemicissues.

5.1.6 Codeofconductforworkers

Akeyelementofthecompany’srelationshipwiththecommunityistoensurethecommunityunderstandsthatArafurawillimplementaCodeofConductforworkersandcontractorsattheNolanssite.

TheCodeofConductwillbeenforcedandwillbeakeyelementoftheinductionprocess.

Elementscouldinclude:

• culturalawarenesstrainingandagreementonunacceptablebehaviorintheworkplaceandcommunity

• azerotolerancepolicyfordrugsandalcoholintheworkplace

• rulesabouttransporttoworkthatlimitprivateuseofvehicles

• notbringingpetsandfirearmsontoworksites

• rulesaboutdriverbehaviorincompanyvehicles,suchasdrivingresponsibly,roadsafety

• awarenessofvolatilesubstanceabuseandhowvolatilesubstancesshouldbestored

• rulesaboutvisitstonearbycommunities(basedonwhatthecommunitywants)

• protectingculturalsites,‘nogo’areasandculturalsitemanagement

• agreementontraditionalowners’accesstoculturalareas

• anoutlineofgrievanceproceduresandremedies

• rulesaboutaccommodationandtraveltomonitorimpactsonlocalandtouristfacilities

• expectationsaboutworkerbehaviorinAliceSpringsduringtransitorondaysoff

• protocolssuchascommentingtothemedia,contactingtraditionalowners.

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6. MONITORING/MEASUREMENT

Arafura will produce an annual Sustainability Report that includes a community report card summarising thecompany’ssuccessinmeetingitsperformancetargets.

Therearevariousapproachesthatcanbeadopted,including:

• Sustainablelivelihoodsapproach,thatdevelopsascorecardofvariouscapitalsthatshouldbeinequilibriumtoensurecontinuedcommunitycohesionandresilience;

• Socialperformanceapproach,e.g.

o howtomeetregulatoryrequirements

o mitigatingnegativeeffectsonbusinessactivity

o providingagreedbenefitstohostcommunities

o contributetooverallbusinessplanning.

Thefollowingisadraftsustainabilitypolicythatcouldformthebasisofmonitoringandreporting.

6.1 Arafura’ssustainabilitypolicy

Arafura is committed to sustainable development, as outlined in theMinerals Council of Australia’s ‘EnduringValues’ report, which defines sustainability in the mining sector as investment that is financially profitable,technicallyappropriate,environmentallysoundandsociallyresponsible.

ForArafura,sustainabilitymeansoperatinginanethicalwaytoleaveanenduringlegacyfromitsproject.Italsomeansthatcurrentandfuturegenerationssuffernoactualorperceivedharm,ordetriment,fromouractivities.

To achieve this, Arafura’s objective is quality and ongoing consultation to ensure it is listening to communityaspirationsandconcerns.

Arafurawillfocusontransparencyandgoodcommunicationtobuildtrustandgoodrelationshipsandensurethecompanyearnsits‘sociallicencetooperate’orcommunityacceptanceofitsoperations.

Thiswill deliverbetteroutcomes forArafuraand its staff, shareholders, the community inwhich the companyoperatesandforitsgovernmentandbusinesspartners.

Arafurawill produce an annual Sustainability Report outlining its performance in the communities inwhich itoperates.

ThiswillbecomeincreasinglydetailedasArafuramovesfromexplorationandplanningintooperations.

Socialperformance

Arafura’ssocialperformanceplanwill,asaminimum,meeta‘donoharm’approachin lookingatwaystobeagoodneighboursoitdeliversthebenefitssoughtbycommunitiesintheareaswherewework.

This includes a sponsorship program that supports community activities and encourages children to attendschool.

When Arafura is working on land where native title applies, it will use its best endeavours to negotiate acommunitybenefitspackagethatbuildssocialandeconomiccapital.Theagreementwillimplementgovernancestructures tomaximise community input to the distribution of benefitswhile seeking tominimise unintendedconsequencesofthecompany’sactivities.

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Reporting:Annualsponsorshipprogramandcommunityinvolvementreport,numberofcommunityreferencegroups,attendance,activitiesinthecommunity,anysocialimpactsidentifiedandaddressed,communication,reportsongrievancesandtheirresolution.

Environmentalperformance

Whereenvironmentalimpactsareunderstood,Arafurawilladoptarigorousadaptivemanagementapproachtoensureitconstantlymonitorsitsactivitiesandmakesappropriatechangestomitigateanyresultingharmtotheenvironment.

Where there is uncertainty about potential impacts, Arafurawill adopt a precautionary approach, taking extracaretoresearch,monitorandplanouractivities.

In particular, Arafura respects the cultural and spiritual connections ofAboriginal people to their country. Thecompanywillavoiddisturbancetoanysacredorspecialareas.WherethisisnotpossibleArafurawillconsultwithlocalpeopleandtherelevantregulatorybodiestogainapprovalpriortodisturbance.Wherepracticable,Arafurawillemploylocalpeopletoworkonlandmanagement,surveys,monitoringandrehabilitationoftheircountry.

Reporting:Annualenvironmentalperformance,anyincidents,resultsofallenvironmentalmonitoring,anyenvironmentaloffsetsorrehabilitationprograms.

Economicperformance

Arafura’sfinancialperformancewilldelivergoodreturnstoourshareholdersaswellaseconomicbenefittotheregionsinwhichitisoperating.

Thiswillbebasedongoodgovernance,prudentfinancialmanagementandadaptingprocurementpoliciestogiveopportunitiestolocalandTerritorysmallbusinessestoworkwithArafura.

Reporting:Annualfinancialresultstoourshareholders,reportsonnumberandvalueoflocalcontractsawarded,enterprisedevelopment,localjobsandapprenticeships.

Peopleperformance

ArafuraintendstobeanemployerofchoicesoitattractsthebestpeopletoworkontheNolansproject.

Itwill incorporateculturallyappropriaterecruitmentandretentionstrategies,focusonthewellbeingofitsstaffandrewardpeopleforgoodwork.

Arafura recognises that its project canhelp reduce thedisadvantage experiencedbyAboriginal people, so thecompanywillactwithgenuinegoodwillandintenttoemployandtrainlocalAboriginalpeople.

Reporting:Arangeofpeopleindicators,includingjobsatisfaction,losttimeinjuries,employeeretention,numberandretentionofAboriginalworkers,workforcediversity,trainingachievements,apprenticeships,cross-culturaltraining,compliancewithworkplaceagreements,skillsaudits,workwithimmigrantgroups,pre-employmentcourses,literacyandnumeracy,supportprograms.

6.2 Indicatorsandmonitoring

Arafurawillworkwithacommunity referencegroup (ifappointed) toagreeonrealisticachievable targetsandhow thesemight bemeasuredeach year. Thiswill be a two-wayprocess. For example, if employment targetsaren’t met, the company could discuss the reasons with the community while the community can providefeedbackonhowtodobetteragainsttargetsinthefuture,e.g.peoplenotshowinguptowork,moneyproblems,failingdrugandalcoholtests.

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Basedontheaboveanalysis,itissuggestedthatsomeofthefollowingkeyindicatorscouldbeselected:

• numberofAboriginaljobs(andproportionofpeoplewhowerepreviouslyunemployed)

• numberanddiversityoflocalemployees

• staffretentionrates

• numberofapprenticeshipsandtrainingcourses

• localprocurement(valueandnumberoflocalcontracts)

• numberoflocalenterprisesstartedbecauseoftheproject

• expenditureonregionalandcommunityinfrastructure

• contributiontolocaleconomy(royalties,taxes,modellingofdirectandindirectexpenditure)

• housingstatistics(familiesbuyingorrentinginAliceSprings,temporaryaccommodationprovided,hotelroomstaken)

• researchoneconomicindicators,suchasregionalincome,costofliving,homeownership,participationineducation,workforceparticipation

• numberandtypeofcomplaintsreceivedandresolved

• sponsorshipsandoutcomesofcommunityinvestmentprograms

• communitysatisfactionsurveys.

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7. COMMITMENTSREGISTER

Insummary,Arafura’sobjectivesareto:

Commitment Responsibility Accountability

1. Establishcommunityreferencegroup

Arafuratopreparetermsofreferenceanddiscusswiththecommunity,e.g.membership,meetings,objectives.Arafuratoberesponsibleforestablishmentandresourcing(e.g.travelcosts,secretariat).

AnnualreportapprovedbythecommunityreferencegroupandsubmittedtoArafura’sBoard

2. Developindicatorstobemonitored

Arafuratodevelop,inconsultationwithcommunityreferencegroup,keyindicatorstobemonitoredandreportedonannually,e.g.Aboriginaljobs,localcontracts,environmentalmonitoring.Arafuraresponsibleformonitoring.Arafurawillproduceannualreportsagainsttheseindicators.

Annualreportasabove

3. Reportcard/sustainabilityreport

Communityreferencegrouptoreviewannualperformancereportandprovidecommentandfeedback.Arafuraresponsibleforproduction.

Annualproduction

4. Grievanceprocess Arafuratodevelopgrievanceprotocolsincludingaregistertorecord,resolveandreportonissuesraised.Annualreportonresolutionofgrievances,includinganysystemicissuesoremergingissuestobemanagedandhowthesewillbedealtwith.

Annualgrievancereport

5. Managementplans Arafurawillproducethefollowingmanagementplansandmakethemavailableonitswebsite:

• Environmental,healthandsafetyplan;

• Communityengagementplan;

• Workplaceandemploymentplan;

• TrafficManagementPlan;

• WasteStorageManagementPlan;

• LocalIndustryParticipationPlan(tobedevelopedafterprojectapproval).

PlanstobeapprovedaspartofEIS

Annualreportonanyvariationsmade

6. Openlocaloffice ArafurawillopenanAliceSpringsofficeafterthefinalinvestmentdecisionontheproject.

Officeopening

7. Communityliaisonofficer

Arafurawillemployacommunityliaisonofficer. Reporttocommunityreferencegrouponprogress.

8. Communication Arafurawillestablishanannualbudgetforcontinuedcommunicationontheproject,e.g.website,newsletters,communitydisplays.

Reporttocommunityreferencegrouponprogress.

9. Sponsorship Arafurawillestablishanannualbudgetforsponsorshipofprojectswithinitsareaofoperations

Annualreportonsponsoredprojectsaspartofsustainabilityreport.

10. Communitybenefitstrust

ArafurawillnegotiateacommunitybenefitspackageaspartoftheagreementwiththeCLConbehalfoftraditionalowners.

Partsofthisagreementmaybeconfidential.Tobeagreedonpublicreporting.

11. Culturalawareness Arafurawillrequireallstaffandcontractorstocompleteculturalawarenesstrainingaspartofthecompany’sinductionprocesses.Wherepossible,thiswilluseAnmatyerrconsultantsorcompanies.

Recordswillbekeptofcompletionandreportedagainst.