Deal #8733

There are eleven villages on the Sabodala Lot-A Mining Concession. The Sabodala village is approximately two kilometres south of the Sabodala pit and is in part is located above the Niakafiri deposit. Faloumbo village is to the north-northeast of Sabodala pit and is close to the Faloumbo workings. Medina Sabodala is located less than one kilometre south of Sabodala. Eight other villages located on the Mining Concession but further from the mine each house 500 to 2,500 people. Subsistence gardens and a scattering of small fields including sorghum and maize surround the villages. All villages have essential public infrastructure such as elementary schools, health posts or health huts, and a water supply consisting of a water tower at Bransan or water wells. The Project will impact two villages, Bambaraya in Bambaraya commune (3000 inhabitants), and Tinkoto in Sabodala commune (7641 inhabitants).

The stakeholder information and consultation process was an integral part of all Teranga’s ESIAs. To date, Teranga has put in place mechanisms and communication tools so that all those involved in, or affected by, its projects can freely express themselves. The information collected during these consultations has helped identify issues, risks, benefits, and opportunities for the project to avoid, minimize, or offset negative impacts and enhance the positive ones. As part of the stakeholder information and consultation process, a Stakeholder Engagement Plan (SEP) was developed. Information about the Project was transmitted by information sheets and meetings with administrative authorities, technical services, as well as representatives of the surrounding villages.

According to EJ Atlas: At least 19,000 people have been displaced (source Enda Pronat), including the village Danbankhoto which was completely rebuilt 5 kilometers from its original location in 2011. According to company's technical report: The development of the Sofia deposit is expected to result in the economic activity displacement of 14 households current residing in two communities: Bambaraya (13 households) and Tinkoto (1 household). The development of NZ & CZ deposit is also expected to result in the economic activity displacement from the surrounding communities

Economic activity displacement of 14 households and a loss of 33.1 ha of agricultural land. Habitat and biodiversity loss, loss of wetland areas, potential reduced quantity of groundwater levels, deforestation of 928ha, potential influx into the local area, relocation of sacred sites, increased greenhouse gases emissions, air and noise pollution. The villages of Sabodala and Falombo were the first to lose their gold panning deposits when the multinationals settled. The industrial exploitation of the precious metal has considerably reduced the cultivable surfaces while polluting the rivers and the environment. Beyond artisanal mining, other common land uses in Massawa’s surroundings are subsistence agriculture, animal rearing and vegetable gardening. There are two artisanal mining corridors officially recognized by the State in the project area. The first is the Tinkoto corridor, which is located outside the mine permit, while the second, the Makhana corridor, is located inside the permit. The impacts will be limited to the Makhana corridor, which will be relocated outside the Massawa Mining License perimeter,as the corridor will lose its official status when being on an allocated mining permit. A relocation will be proposed for this site that the government will validate and recognize as a new official corridor.

The concession agreement states that the company should pay US$1,225,000 per year for the development of the communities. The Sabodala Social Fund provides a framework for supporting annual community investment projects that are in line with the development plans of regional and local authorities and meet the needs of communities. Working directly with municipalities and city councils, SGO participates in the annual budget consultation process managed by the authorities. The selection and implementation of projects financed by SGO are based on municipality or community priorities in line with SGO's sustainability strategy. Once the projects have been selected, SGO and the local mayors sign an annual financing agreement detailing the projects financed by SGO and the amount allocated to each project. SGO assists in the implementation of these investments through technical facilitation and project evaluations.

Resettling 418 households and building community infrastructure including potable water, electricity and improved housing standards in consultation with local community, in compliance with the International Finance Corporation and Responsible Gold Mining Principles The funds fed by TGC for the Social Mining Program have been delayed for a long time while the technical council in charge of its implementation has not been endowed with the necessary means to carry out its mission

The concession contract envisages employment of 1,000 jobs, of which 500 for people from the communities.

Electrification project to connect six villages to the grid Supported industrialisation of a women’s cereal cooperative Built processing centre and provided equipment Funded construction of a Health Centre in Bambaraya Supplied ambulance and medical equipment Improving healthcare for 2,000 people in the district $0.9m direct into community projects $3.3m to Local Mining Development Fund (0.5% of revenue) Built 18 schools and funded scholarships Built 7 health centers, 6 maternity wards and provision of medicines plus support for vaccination campaigns Rehabilitation and equipment for sports facilities 12 market gardens, tractors, 6 chicken coups 25 water boreholes set up for clean water Electrification of 6 local villages underway