July 2006
1. Introduction
Nevsun Resources Ltd. is a
Canadian mining company listed on both the Toronto and American
Stock Exchanges. The Company has exploration, development and
production operations in Africa, principally in Mali and
Eritrea. From time to time Nevsun may seek corporate or project
financing from international banking and development agencies to
help finance a portion of the capital expenditure to develop its
business.
This document
describes Nevsun’s corporate level Public Consultation and
Disclosure Plan (PCDP) for on-going stakeholder engagement and
is an important aspect of the Company’s external communication
process. It describes the Company’s initiatives to inform and
consult with those peoples affected by our development projects
and operating mines, in compliance with the Company’s policies
and local regulatory requirements as well as considering World
Bank and International Finance Corporation (“IFC”) policies and
best practice guidance. IFC’s new Policy and Performance
Standards on Social and Environmental Sustainability (April 30,
2006) have been considered in the preparation of this document.
Project
specific PCDP’s will be prepared and maintained to address the requirements for
public consultation and disclosure for the Company’s key
developments, such as those in Mali and Eritrea.
2. Key Principles for the Public
Consultation &
Disclosure Programme
Stakeholder
identification and consultation has an important role in
managing our business relationships at both a corporate and
local level.
Consultation
also plays an important role in review and approval processes
for development projects in Mali and Eritrea. For example, in
Eritrea, public consultation is required for environmental
clearance as a step in acquiring a mining license.
This section
outlines the key principles applied in the development of
project specific PCDP’s. These principles conform to Nevsun’s
and IFC policies and guidelines and takes into account cultural
difference and sensitivities. The principles are:
· Stakeholders
who are adversely affected by a project should be consulted and
provided with an opportunity to have two way communication with
the project sponsors.
· Consultation
begins by providing all relevant available and accurate
information about the project and is in a form that can be
easily understood by stakeholders.
· Consultations
should begin early in the environmental and social assessment
processes - so that people's concerns can be incorporated into
the assessment.
· Consultations
should be conducted in a manner that keeps stakeholders informed
about how their concerns are being addressed by the project
sponsors, through the environmental and social impact assessment
process.
· Communication
and consultation with different stakeholders should be
culturally appropriate and inclusive.
· There
should be a specific and transparent mechanism for documenting
grievances and providing feedback on the project sponsor’s
response.
· There
should be clear enunciation of responsibility and accountability
procedures, personnel and resource availability for effective
implementation of the PCDP.
· A
PCDP should be developed and maintained for the life of a project.
3. Key Stakeholders
Identification
of key stakeholders affected by the elements of the Project
should be addressed in the development of the project PCDP’s.
Examples of potential stakeholders include:
· Directly
affected households (primary stakeholders)
· Disadvantaged
groups
· Indigenous
people
· Central,
State and Local Government Officials/Civil Servants
· Local
communities
· Local
leaders/community leaders
· Media
(local journalists)
· NGOs
(local and national)
· JV
Partners
· Academics
(generally, school and college teachers)
· MPs
/ Politicians
· Lenders
4. Information Requirements
For public
consultation to be effective, it is essential that relevant and
comprehensive information be disseminated to all the key
stakeholders prior to and as part of the environment and social
impact assessment for a project. For all Nevsun development
projects, relevant project information should be disclosed to
affected communities; including the purpose, nature and scale of
the project; duration of proposed project activities; and any
expected risks to and impacts on such communities. Examples on
the information, which should be disseminated include:
· Project
Public Consultation and Disclosure Plan;
· A
summary of project information containing the main elements of
the project including; location, description of the project, a
summary of environmental and social impacts;
· An
Environment and Social Impact Assessment report with details
about potential environmental and social impacts of the project
and the proposed mitigation measures.
· Where
applicable, a Land Acquisition and Compensation Plan or
Resettlement Action Plan, containing an explanation of the
extent and location of any land and other assets to be acquired;
detailed information on land acquisition process, the principles
to be used for determining the compensation amount, and the method and
procedure for transference of compensation payment.
· Where
applicable, other relevant Action Plans such as community
development plans, corrective action plans; closure plans, which
address community development, rehabilitation and other measures
proposed by the project sponsors.
· Project
sponsors’ contact information.
5. Methods of communication
The following
media should be used, as appropriate, for providing information
to various stakeholders:
-
print material (posters brochures),
-
electronic information (web-sites, e-mail)
-
media such newspapers, radio and televisions
-
videos
-
face-to-face events such as meetings,
workshops, focus groups etc.
Selection of
communication methods will be determined by the appropriateness
and accessibility requirements for different stakeholders.
6. Consultation Method
The location
and methodology for consultation should be determined by how the
stakeholder is affected by the project and the appropriateness
to the unique situations and needs of different stakeholders.
7. Grievance Mechanism
A grievance
mechanism or procedure should be established in order to receive
and respond to grievances raised about the Company’s
environmental and social performance. The mechanism should be
easily accessible to all segments of the affected community and
at no cost, without impeding access to other judicial or
administrative remedies.
8. Record of Consultations and Response
All records of
public consultation sessions should be maintained and made
available for public access. A response should be provided to
all queries and grievances within a reasonable period e.g.10
days.
9. Monitoring and Evaluation
Provision should be made for monitoring,
evaluating and improving the effectiveness of the public
consultation process. The local level PCDPs are ‘living
documents’ which should be updated periodically to incorporate
changes to the project, the community or improve communications
and consultation with key stakeholders.