MINISTRY OF MINES ISLAMIC REPUBLIC OF AFGHANISTAN

AYNAK COPPER MINE PROJECT

Social Impact Assessment of

Dashtak and Tobagai Areas in Aynak for

Tailing Pond Options

Prepared by Harjot Kaur, Senior Social Development Advisor,

World Bank Sustainable Development of Natural Resources Project

Ministry of Mines

Kabul, Afghanistan

October, 2011

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ABBREVIATIONS

AA Acquiring Authority AMD Acid Mine Drainage AFN Afghani (currency) ALA Afghanistan Land Authority AP Affected Person (including all persons in an affected household) BP Bank Procedures (of the World Bank) EI Extractive Industries EIA Environmental Impact Assessment EMP Environmental Management Plan ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan GRC Grievance Redress Committee ha hectare (an area of land) HSE Health, Safety and Environment IMC Inter Ministerial Committee JCC Jiangxi Copper Company Ltd MAIL Ministry of Agriculture, Irrigation and Livestock MOUD Ministry of Urban Development LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan LARPF Land Acquisition and Resettlement Policy Framework LLE Law on Land Expropriation LMLA Law on Managing Land Affairs MAIL Ministry of Agriculture, Irrigation and Livestock MCC Metallurgical Corporation of China MJAM MCC-JCC Aynak Minerals Ltd MoLSAMD Ministry of Labour, Social Affairs, Martyrs and Disabled MoM Ministry of Mines NEPA National Environmental Protection Agency NGO Non-Governmental Organization OP Operational Policy (of the World Bank) PAPs Project Affected Persons RAP Resettlement Action Plan RP Resettlement Plan RPF Resettlement Policy Framework SIA Social Impact Assessment WB World Bank

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Table of Contents

ABBREVIATIONS ....................................................................................................................... 2

Chapter 1: Executive Summary .................................................................................................. 4

Chapter 2: Introduction and Background .................................................................................. 6

Chapter 3: Purpose and Objectives ............................................................................................ 7 Purpose of the Report .................................................................................................................. 7 Objective of the Report ............................................................................................................... 7 Survey Area ................................................................................................................................ 8 Data Collection and Methodology .............................................................................................. 8 Legal Policy Framework and Entitlement .................................................................................. 9 World Bank Social Safeguards relating to Aynak Project ........................................................ 10

Chapter 4: Socio Economic profile of the Project Area .......................................................... 11 Demography of the Local Communities ................................................................................... 11 Employment Status ................................................................................................................... 12 Income and expenditure of households ..................................................................................... 15 Occupational profile and earnings of women ........................................................................... 15 Expenditure ............................................................................................................................... 16 Ownership of Household Assets ............................................................................................... 18 Land Ownership ........................................................................................................................ 19 Land ownership ......................................................................................................................... 19 Livestock ownership ................................................................................................................. 20 Source of irrigation: .................................................................................................................. 21 Water Supply ............................................................................................................................ 21 Cropping Pattern ....................................................................................................................... 22 Infrastructural facilities ............................................................................................................. 22 Food Items Consumed .............................................................................................................. 20 Pachai Results ........................................................................................................................... 24 Perceptions of the Local Communities ..................................................................................... 24

Chapter 5: Identification of Stakeholders ................................................................................ 27

Chapter 6: Environmental Factors in Selecting Tailings Pond Location .............................. 29 Karez tunnels and shafts ........................................................................................................... 29 Natural cave systems and other ‘karst’ ..................................................................................... 30

Annexure: Socio economic survey questionnaire

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Chapter 1: Executive Summary

Government of Afghanistan is committed to develop its natural resources to boost the economic growth and at the same time ensure that needs of the local communities in these areas are properly met and they are major beneficiaries through enhanced employment opportunities, greater income generation and infrastructural development. The Aynak copper mining project will enable the Government of Afghanistan to maximize the value of the Aynak copper deposits to boost the national economy while promoting sustainable development and protecting social and environmental aspects of Afghanistan.

This SIA was conducted to enable Government and the proponent MJAM to take a decision about location of tailings pond & smelter plant at Aynak considering their impact on local communities. Construction of tailings pond & smelter plant will lead to land acquisition, relocation of people living in the area and loss of sources of livelihood and other assets.

This is a thematic SIA conducted to address the issue of deciding the location of tailings pond and smelter plant at Aynak mines from three options, Dashtak, Tobagai and Pachai. Full ESAI for the entire project is being conducted by Hagler Bailly (HBB) on behalf of MJAM.

For the purpose, a socio economic survey was carried out during August 2011 in three areas, Dashtak, Pachai and Tobagai mentioned as Option 1, 2 and 3 respectively for the location for tailings pond and smelter plant. It was a census household survey of 454 households in Dashtak and Tobagai areas. In Pachai area, household survey could not be carried out as villagers refused to cooperate and the security conditions were not good. However some information was collected from village heads. Before conducting this survey, another socio economic survey at a smaller scale was conducted in March 2011 covering 63 families in 5 villages near mine site wherein the PAPs need to be relocated. This survey was carried out for the purpose of preparing RAP for these 5 villages and this pilot survey guided the process of the present much larger survey covering 11 villages in 3 areas.

There are 406 families living in Option 1 i.e. Dashtak and 48 in Option 3 i.e. Tobagai. The population in Dashtak is 10 times more than in Tobagai. People living in Dashtak have higher standard in living as they have better avenues to earn livelihood. Many of the people are also working abroad and sending money home. They own much more household assets like cars, generators, TV, tractors, wells, etc. In Tobagai, agriculture is the main means of livelihood and is mainly subsistence due to limited availability of water. People in Dashtak area have better access to water due to proximity to Logar River. The average yearly expenditure of a family in Dashtak is more than double of a family in Tobagai. Further the families in Dashtak area own much more fruit bearing trees than Tobagai area. In Dashtak

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there are about 9 times more fruit trees than those in Tobagai. The produce from these trees is an important source of livelihood for these families.

Therefore if tailings pond and smelter plant are located in Dashtak area, it will lead to relocation of a very large number of families. Besides the hardship that will be faced by these families for leaving their houses and source of livelihood, there will be huge cost in terms of payment of compensation for their houses, agricultural land, fruit trees, wells and other assets. Alternate land will have to be given to these families for resettlement and alternate means of livelihood will also have to be provided so that their standard of living is at least at the same level as it was before their relocation.

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Chapter 2: Introduction and Background

Aynak is a world-class copper deposit located in the northern Logar Province close to the Logar-Kabul provincial boundary. The mining area is south-southeast of the center of Kabul city, about 30 km away. By road, the distance is about 45 km. The geographic coordinates of the mines are 34°15’58” N and 69°18’18” E. Aynak has been the focus of copper mining since ancient times. Numerous old excavations and pits, as well as remains of smelting furnaces, have been discovered at Aynak and also nearby Darband and Jawkhar.

In 2008, the Government of Afghanistan through an international bid allotted the contract for copper mining at Aynak to MCC-JCC Aynak Minerals Ltd (MJAM), a joint venture consortium between China Metallurgical Corporation (MCC) and Jiangxi Copper Company Limited (JCC). The consortium is owned 75% by MCC and 25% by JCC. While the number of people and magnitude of adverse impacts are expected to be low, the Project will work to further minimize the likely adverse impacts. There will be some land acquisition and displacements of settlements in the areas close to mine pit and also in the areas required for constructing assess road, tailings, smelter plant and other facilities in the project. This social impact assessment has been carried out to access the level of impact on the local communities including land acquisition due to the location of smelter plant and tailings pond in 2 different options, Option 1 in Dashtak area and option 3 in Tobagai area.

Project Area showing

options for site of

Tailings Pond

OPTION 1 Dashtak

OPTION 2 Pachai

OPTION 3 Tobagai

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Chapter 3: Purpose and Objectives

Purpose of the Report

This SIA is to achieve the following purpose: To identify and assess potential social impacts of the proposed location of smelter

plant and tailings pond in option 1 and 3. To identify all potential significant adverse social impacts of the proposed project and

recommend mitigation measures. To generate baseline data for monitoring and evaluation of the implementation of

mitigation measures. To recommend cost effective measures to mitigate the expected impacts. To indentify and quantify Project Affected People (PAPs) in two different options of the

location of tailings pond. To verify the adherence and compliance of the World Bank’s Safeguard Policies.

Objective of the Report

The Ministry of Mines is in the process of consultation with MJAM for site selection for the tailings pond and the smelter plant close to mine area. Among the Aynak options being considered are Option 1 - Dashtak, Option 2 - Pachai and Option 3 - Tobagai areas. Accordingly a comprehensive socio economic survey was carried out in these areas covering 529 families in 11 villages in the vicinity of the Aynak Copper Mine - 7 in Dashtak, 3 in Tobagai and 1 village in Pachai - to assess the social impact of locating tailings pond and smelter plant in these areas including the possibility of relocating people living in these areas. The survey was carried out by a team of 39 surveyors in 20 days from 3rd to 22nd of August 2011. All the surveyors are Ministry of Mines’ officials.

The social survey team was properly trained in the Ministry of Mines before carrying out this survey. 20 officials of the Ministry who have been recently trained at the Indian School of Mines in ‘Social Impact Mitigation Strategies’ were part of the survey team. A survey questionnaire which was prepared earlier in consultation with the World Bank was used for collecting the information. The purpose of the survey was to assess the existing socio economic living conditions of the local communities in these areas and the social impacts of mine related activities in these areas. Data collected covered issues such as demographic characteristics of the local communities, size of the families, sources of livelihood, income levels, expenditure patterns, ownership of assets, cropping patterns, availability of basic infrastructure, number of trees, livestock owned by the families etc. The information has been collected mainly from the heads of families or members of the families in each house of the village. For every household, a female has also been covered. Females were separately interviewed by female surveyors. The results of the report will help the Ministry to take a considered view on the optimal location of the tailings pond and smelter plant. The Government wishes to move and relocate minimum number of people and cause least

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possible other negative social impacts to the local communities in terms of loss of livelihood, land and houses.

Survey Area

Option 1 - Dashtak Area: Hisar Tangai, Loui Kallai, Sagai Kallai, Shinkai Kallai, Zakhil Kallai, Jirga Kallai and Bagh Kallai

Option 2 - Pachai: Pachai Kallai (partial information)

Option 3 - Tobagai Area: Halimi Kallai, Sadullah Qala and Bawoo Khail

Data Collection and Methodology

The research carried out in such a Social Assessment involved identifying the vulnerable families and their level of vulnerability and suggesting changes in project design to reduce risks and assess expected impacts of the project on people in two areas - Dashtak and Tobagai. Efforts were also made to collect household information from another area - Pachai - but due to poor security conditions in the area and a lack of willingness of the villagers to share information, a household survey could not be carried out in Pachai. However information relating to the number of families living in the area and number of trees etc has been collected. A census survey was carried out in these areas to cover each and every household. This baseline survey was carried out using a structured questionnaire as a tool for collection of quantitative data. Quantitative data was collected from a representative of each household located in two areas. This was supplemented with community consultations with groups of people and community meetings to collect qualitative data. Focus group meetings were held by the surveyors separately for men and women in the villages before carrying out the survey. The purpose of these meetings was to make local communities aware of the purpose of the survey and the project.

There were in total 12 survey teams. The first team consisted of 4 surveyors, who were responsible for counting the gardens and trees in the villages. The second team consisted of two people who were responsible for surveying of houses and also working as a mobile team to monitor and take care of security issues of all teams. The second team was also responsible for arranging the daily survey program. Each of the remaining 10 teams consisted of three surveyors (one female and two males) for interviewing the families. The female surveyor was also responsible for counting the rooms, doors, windows and beams of each house as she could have access inside the rooms of the house. The male surveyors were responsible for filling out the questionnaire with the heads of family and measuring the yard, boundary walls, masonries, verandahs and trees of each house in the village. Due to bad security conditions in all these areas, the surveyors moved around only with the security guards provided by the police. In spite of their best efforts, the surveyors could not get adequate information from the households in Pachai area due to security conditions as

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well as lack of cooperation from the villagers. In many cases, both males and females were present when information was provided to surveyor to take into account of the views of females in these villages. However in Dashtak area questionnaires from 39 females were also separately filled up by women surveyors.

Legal Policy Framework and Entitlement

This SIA is prepared in accordance with the Government’s resettlement policies, relevant Afghan laws and World Bank’s operational policies and guidelines on involuntary resettlement. Relevant provisions of Afghan laws and policies and World Bank guidelines on land compensation, assistance and relocation are discussed as follows:

The Constitution of Afghanistan The new Constitution of Afghanistan was ratified in early 2004. It has a few articles that closely relate to compensation and resettlement issues. These include Article 19, wherein nobody’s property shall be confiscated without the provisions of law and the order of an authorized court. Further acquisition of a person’s property, in return for a prior and just compensation within the bounds of law, is permitted only for securing public interests in accordance with the provisions of law.

Law on Managing Land Affairs in Afghanistan The Law on Managing Land Affairs (LMLA) is aimed at creating a legislated unified, reliable land management system to resolve the problems and issues caused by the different land management and title systems being followed during different regimes. Furthermore, this Law aims to provide a standard system for land titling, land segregation and registration; prevent illegal land acquisition and distribution; access to land to people; and conditions for appropriation of lands.

Law on Land Expropriation (LLE) The Land Expropriation Law was amended in 2005 by a Presidential decree. Some of the important provisions of this law relating to land acquisition and compensation are that the acquisition of a plot or a portion of plot, for public interest is decided by the Council of Ministers and will be compensated at fair value based on the current market rates. The acquisition of a plot or part of it should not prevent the owner from using the rest of the property or hamper its use. If this difficulty arises, the whole property will be acquired and the Council of Ministers shall be empowered to expropriate a piece of land totally or partly for the purpose of mining and extraction from underground reservoirs.

Afghan Land Policy A comprehensive land policy was approved by the cabinet in 2007. However, it is yet to be become operational. This policy envisions the maximization of social and economic benefits to the whole of Afghan society based upon the orderly and sustainable use of its most important natural resource-land. The underlying principle of the land policy is to ensure a flexible, equitable and transparent policy that serves the diverse interests of the Afghan society.

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Law on the Preservation of Afghanistan’s Historical and Cultural Heritages (2004) This law provides that all historical and Cultural Heritages and artifacts belong to the Afghanistan public and are a manifestation of their role and participation in the preservation of cultural and historical artifacts and heritages for all humanity. Digging wells, ditches, rock blasting, driving over and any other operations which causes destruction of the recorded historical and cultural sites is prohibited without coordination and permission of the Archaeology Institute.

Minerals Law This law provides that in cases where minerals are discovered on or under private land, the State may acquire the land in accordance with the law of eminent domain; unless the owner of the private land gets a Mineral Operation License in accordance with this Law. Further, the Ministry of Mines may expropriate private land needed for the conduct of mineral activities, in accordance with law.

Afghan Labor Law

Under this law, mining companies have to adhere to the provisions of the Labor Law related to rights of workers employed in their mines and for the social protection of their families. Some of the relevant provisions of the Labor Law relate to hours of work, vocational training of employees, provision of health and safety conditions to workers, medical examination etc, and provisions for recruiting women and youth, social protection etc.

World Bank Social Safeguards relating to Aynak Project

The resettlement related regulations and guidelines of the World Bank are spelled out in the World Bank Operational Manual comprising documents relating to Operational Policies (OP) and Bank Procedures (BP). For the purpose of this report the applicable safeguard policies of the Bank in this case are:

⋅ Operational Policy 4.12 Involuntary Resettlement ⋅ Operational Policy 4.11 Management of Cultural Property ⋅ Operational Policy 17.50 Disclosure of Operational Information

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Chapter 4: Socio Economic profile of the Project Area

This analysis covers 454 Aynak families in 10 villages in two areas, Dashtak and Tobagai with some partial information relating to villages in the Pachai area.

Demography of the Local Communities

Dashtak: There are a total of 406 families residing in 7 villages in the area which will be most directly affected if the tailings pond and smelter plant are located in this area as they will have to relocated. In this area, the total population is 2,780 persons, 1,436 males and 1,344 females. 47% of the population is under 15 years of age which indicates high population growth in the area and a high dependent ratio on the economically active age group. The proportion of dependent population would further increase with the inclusion of population above 65 years in this category. However the data suggests that since the majority of population is in the young age group, if there is social investment particularly in the area of education and skill training, it will help in economic development of these families in the next 1-2 decades. There is however also a need to create awareness of population control among these families as they have large family size. The demographic data also indicates that many are nuclear families and have large number of children and there were a few instances of parents, grandparents and nieces and nephews living as extended families.

Picture 1: Consultation with villagers in village Jirga

Tobagai: There are a total 48 families living in the three villages in the area. The total population is 242 persons, 124 males and 118 females. Again a very high proportion i.e. 44 % of the population is under 15 years of age which indicates high population growth and a high dependent ratio on the economically active age group. This again reinforces the need for investment in enhancing literacy rates in the area through easy access to schools. The

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demographic profile of this area too indicates presence of nuclear families with very few parents, sisters, brothers etc living as extended families. It is evident from the diagram below (combined for Dashtak and Tobagai areas).

Figure 1: Number of members’ relationship to household head

Employment Status

Dashtak: An examination of the data reveals that as many as 319 male are engaged in farming and livestock herding as the primary source of livelihood, followed by 82 working as casual labor and 55 working in mining and quarrying. A large number of women, about 245 in total, are engaged in the rearing of smaller livestock such as chickens but the levels of earnings are very low. 83 male members from this area are working in other countries and sending money back home to their families. There are 41 male members working for the Government and 45 are engaged in informal trading. It is notable that a number of women are working in informal trading and the sale of home based produce or handicrafts. This means that if these communities are relocated then a substantial number of both men as well as women will lose their source of livelihood and will have to be compensated in terms of alternate means of livelihood and land for agriculture.

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Tobagai: Compared to Dashtak, very few males are engaged in agriculture in the Tobagai area. In fact the employment scenario in Tobagai seems to be quite adverse as only 42 male members are working out of total male population of 124 and that these are mainly in agriculture or as casual labor. 20 women are engaged in the rearing of smaller livestock.

Employment Status

Number of working male PAPs by job

Number of working female PAPs by job

Total Number of PAPs

Percentage of PAPs (Among Males)

Farming/ livestock Herding 319 2 321 50% Casual and daily Labor outside mine

82 1 83 13%

Informal Trading 45 18 63 7% Rearing smaller livestock like chickens

5 246 251 0.7%

Government Service (army) 41 0 41 7% Business (shopkeepers) 34 0 34 5.3% Sale of home based produce/handicrafts

5 10 15 1%

Overseas 83 0 83 13% Others 22 2 24 3% Total 636 279 915 100% Table 1: Number and percentage of PAPs employment level by sex in Dashtak area

(Most of the persons are working in more than one occupation)

Occupational Profile of Males in Dashtak

Farming/ livestock Herding

Casual and daily Labor outside mine

Informal Trading

Raising smaller livestock like chickens

Government Service

Business (shopkeepers)

Sale of home based produce/handicrafts

Figure 2: Percentage of males engaged in different occupations in Dashtak

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Employment Status Number of working Male PAPs

Number of working Female PAPs

Total Number of PAPs

Percentage of PAPs (Among Males)

Farming/ livestock Herding 28 0 28 67 % Casual and daily Labor outside mine

10 0 10 24 %

Informal Trading 2 3 4 5 % Rearing smaller livestock like chickens

0 20 20 0 %

Government Service 1 0 1 2 % Business (shopkeepers) 0 0 0 0 % Sale of home based produce/handicrafts

0 1 1 0 %

Overseas 1 0 1 2 % Others 0 1 1 0 % Total 42 24 66 100 % Table 2: Number and percentage of PAPs employment level by sex in Tobagai area

Figure 3: Percentage of males engaged in different occupations in Tobagai

Therefore employment situation wise people living in Dashtak are much better off than Tobagai as they have more employment opportunities and there is varied employment profile of the area. As Tobagai is essentially a dry area with very little scope for commercial agriculture, the large percentage of families are involved in subsistence agriculture. Therefore relocating the lesser number of families living in this area with limited means of employment and subsistence agriculture will entail lesser hardship for the families and much lesser resources would be needed for the relocation and resettlement.

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Income and expenditure of households

In Dashtak the people working overseas, in business, government service and informal trading are earning more than others working in farming, as casual labor or rearing of smaller livestock. The trend is almost the same in the Tobagai area as those working overseas are earning much more than those who are engaged in farming, livestock herding or as casual labor. The table below gives information on the number of persons in Dashtak and Tobagai areas working in different occupations and the average earnings by occupation.

Source of Income Average annual income (AFN) per job in Dashtak

Average annual income (AFN) per job in Tobagai

Farming/ Livestock Herding 74,162 120,678 Casual/ Daily Labor outside mine 97,448 102,900 Informal Trading 98,492 32,000 Government Service 137,864 6,500 Overseas 241,915 350,000 Business / Shopkeeper 179,794 0 Rearing smaller livestock 6,629 3,460 Sale of home based handicrafts 38,633 12,000 Table 3: No. of respondents’ average income earned yearly by source

The average income levels from agriculture are comparatively lower in Dashtak as agriculture is not the only source of income and the same families are engaged in number of other income generating activities like trading etc. Also the size of the agricultural holding per family is lower in Dashtak than in Tobagai. Furthermore in Dashtak, a number of persons are working abroad in Arab countries and sending income back home so agriculture is not the only major source of income. Average annual income from trading is much more in Dashtak than Tobagai and the same is the case with business and sale of handicrafts.

Occupational profile and earnings of women In Dashtak women are earning much more than their counterparts in Tobagai. The average yearly income of females in Dashtak is 186,755 AFN where as it is only 21,500 AFN in Tobagai. This is mainly because females in Dashtak are also involved in other occupations like trading, and the sale of handicrafts apart from rearing of small livestock. Therefore relocating communities from Dashtak would also involve creating alternate means of livelihood for these women who are contributing income of their families. Women are mainly involved in rearing of small livestock such as chickens for the purpose of sale of eggs and meat. Women also help their husbands in agriculture and trading.

Name of Village

Number of men working

Average yearly expenditure per family (AFN) income/ male respondent

Number of women working

Average yearly (AFN) income/ female respondent

Dashtak 372 212,473 253 11,017 Tobagai 28 172,482 21 8390

Table 4: Number of male and females working and average income per respondent

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From the table above it is clear that if the people in Dashtak have to be relocated it will be a very expensive proposition as there are much larger number of persons working in the area and with higher per capita income per respondent. Therefore income restoration measures would have to be many times greater for the effective rehabilitation of these families than those of Tobagai which are much fewer in number and the average income levels are also lower. Women in Dashtak too have substantial income from livestock rearing and sale of home-based produce and handicrafts and efforts will have to be made to maintain their present level of income after relocation.

Expenditure

The expenditure level in almost all major items of consumption items is less in Tobagai as compared to Dashtak. A family in Tobagai on an average spends 139,591 AFN per year whereas in Dashtak a family spends 305,257 AFN, which is more than double the expenditure level in Tobagai. The difference in expenditure is very distinct regarding food, housing and fuel. A family in Tobagai spends one half of what a family in Dashtak spends on food items. This is an indicator of much higher income levels and higher standard of living in Dashtak. This also means that in order to relocate people from Dashtak, the expenses in terms of compensating affected families in a manner that they are at least as well off as they were before the relocation would be much higher as compared to the relocation of people in Tobagai area. In Dashtak for practically all items families are spending more than in Tobagai. Another notable difference is the spending levels in purchase of fuel for cooking, lighting the house and for generator. A family in Dashtak spends 41,292 AFN on fuel and in Tobagai only 8,404 AFN. People in Dashtak area have much better living conditions like having TV, refrigerator etc requiring fuel to run them. They use solar energy for their houses.

Items of expenditure

Yearly average expenditure per family in Dashtak (AFN)

% of total expenditure

Yearly average expenditure per family in Tobagai (AFN)

% of total expenditure

Food 163,109 53 % 80,824 58 % Clothes 17,859 6 % 11,268 8 % Housing 29,917 10 % 11,283 8 % Medical 17,881 6 % 11,112 8 % Electric Bill/ fuel/ Lighting

41,292 14 % 8,404 6 %

Miscellaneous 35,199 11 % 16,700 12 %

Total expenditure 305,257 100 % 139,591 100 %

Table 5: Yearly average expenditure item wise in Dashtak and Tobagai

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Figure 4: Average expenditure per family in Dashtak and Tobagai family

Figure 5: Average yearly expenditure per family in Dashtak

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Figure 6: Average yearly expenditure per family in Tobagai

One distinct difference in the expenditure pattern between the Dashtak and Tobagai areas is that people in Dashtak area make 14% of the total expenditure on fuel, lighting etc and use solar power also to generate electricity whereas it is only 6 % in Tobagai. This further indicates lower levels of living conditions in Tobagai area.

Ownership of Household Assets

Item of expenditure

Dashtak No. of Items

Number of families

% of families

Tobagai No. of Items

Number of families

% of families

Car 72 69 17 % 0 0 0 % Motor Cycle 104 97 24 % 9 8 17 % Cycle 259 211 52 % 12 11 23 % Generator 162 143 35 % 20 11 23 % Mobile Phone 666 351 86 % 36 24 50 % Refrigerator 3 3 0.7 % 0 0 0 % Sewing Machine 24 24 6 % 0 0 0 % Tractor 26 26 6 % 9 9 19 % Open Well 201 189 46 % 14 13 27 % Tube Well 53 44 11 % 58 6 12 % TV 40 29 7 % 0 0 0 % Radio/tape recorder

425 297 73 % 27 20 42 %

Table 6: Ownership of household assets in Dashtak and Tobagai

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The information on ownership of household assets also indicates the living standard is much better in Dashtak as compared to Tobagai. In Dashtak, 17 % of the families own cars and 24% own motor cycles. Whereas in Tobagai no one owns a car and only 17 % of the families own motor cycles. There is much larger inflow of income from abroad in Dashtak also contributing to the higher living standards in this area. In Dashtak, 86 % of the families own mobile phones whereas in Tobagai only 50 % population owns a mobile phone. Similarly there is glaring difference in the ownership of open well, generator, sewing machines, TV, radio and tape recorders. Women in Dashtak area also earn income by stitching clothes for the nearby living families. The data shows typically low income families living in Tobagai with much better living standard for families in Dashtak. With greater access to open well and tube wells in Dashtak, people have much better availability of water for irrigation.

Land Ownership

Fruit Trees

Name of fruit tree Dashtak Number of trees

Number of families

Tobagai Number of trees

Number of families

Almond 7,068 125 10 5 Apple 882 101 41 11 Apricot 4,872 166 1,917 12 Berries 4,327 180 27 8 Cherries 36 8 0 0 Grapes 960 90 38 6 Peach 86 14 4 4 Pear 10 1 0 0 Plum 87 17 12 1 Silver Berry 309 47 0 0 Walnut 26 8 0 0 Total 18, 663 2,049

Table 7: Number of fruit trees in Dashtak and Tobagai areas

The number of fruit bearing trees in Dashtak area is nine times more than in Tobagai area. It is 18,663 in Dashtak and only 2,049 in Tobagai. Locating the tailings pond and smelter in Dashtak would also involve compensating the families for these large number of trees and creating alternate means of income for these families as they earn lot of money by selling the produce from these trees. Cutting down so many trees would also not be prudent decision from the environment point of view as it will further cause soil degradation in the area which is already quite arid and less vegetated.

Land ownership

Information on land ownership as provided by the villagers’ shows that there is much larger size of land owned overall by the people in Dashtak than Tobagai regarding both

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agricultural and residential land. In Dashtak the total irrigated agricultural land as claimed by villagers in privately owned and shared category is about 3,100 Jeribs and in residential category is 1,400 Jeribs, whereas the land in irrigated agricultural category in Tobagai is only 63 Jeribs and in residential category is about 20 Jeribs. These figures are as reported by the villagers and need to be verified from land ownership records. However it may be seen that the land acquisition in question would be so much lesser in Tobagai area as compared to Dashtak area. Besides being economically not feasible, acquisition of land of the scale of Dashtak area can cause lot of problems with the local communities and unnecessary delays in project implementation.

Livestock ownership

The livestock is reared for milk, meat, and eggs. These animals graze on the skirts of the mountains wherever some green patch is available. The grazing land is mostly shared and is on government owned land. Leaves from the fruit and non fruit trees are also used as fodder for the animals in the absence of proper grazing facilities.

Type of Animals Number of animals owned in Dashtak

No. of families owning the animals

Number of animals owned in Tobagai

No. of families owning the animals

Chickens 4,492 316 366 28 Cows 359 189 14 7 Donkeys 148 138 55 24 Goats 1,515 146 509 21 Sheep 1,626 160 1,845 29 Camels 11 2 0 0 Table 8: Number of livestock owned in Dashtak and Tobagai areas

The number of animals owned in Dashtak are much more those than in Tobagai area. Chickens which are mainly raised by females in the family are source of income through sale of eggs and meat. Cows, sheep and goats are reared for milk and meat which is sold in the market in the city. Since the people in Dashtak own substantial number of animals, their relocation would involve providing adequate grazing land for these animals.

Food Items Consumed

As per the information provided mainly by women in this item, the families consume bread three times a day, rice by most families once a week and vegetables are consumed rarely. Most of these families consume milk, eggs and meat often as these products are available within the villages as they are rearing the livestock. The villagers also reported that since vegetables are not available locally and have to be bought from market in the city, they are mostly consuming the livestock they are rearing within their households.

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Source of irrigation:

Area Name Source Number of families

No. of families using more than one source

Dashtak

Karez 319

296 Rain Water Runoff 223 Well 214 Canal 12

Tobagai

Karez 13

17 Rain Water Runoff 14 Well 17 Canal 0

Table 9: Number and percentage of families dependent on source of irrigation

For most of the villagers in Dashtak and Tobagai, karez and rain run-off water are the main sources of irrigation. However, in Dashtak due to greater availability of wells, this is also an important source of irrigation and there are absolutely no canals in Tobagai again indicating scarcity of water in the area.

Water Supply

Village Dashtak Tobagai Season Insufficient Sufficient Insufficient Sufficient Spring 86 298 1 31 Summer 342 40 20 12 Autumn 344 37 26 6 Winter 200 183 23 9

Table 10: Availability of water in Dashtak and Tobagai areas

In Dashtak area most of the villagers feel the water supply for irrigation purposes is insufficient in summer and autumn, whereas the water supply is insufficient in three seasons in Tobagai due to lack of any river close to this area and no storage facility of rain water making agriculture mostly dependent on rainfall with very little irrigation. The source of drinking water in both the areas is open well. At times these are privately owned by the families or are shared among the families. The source of water for agricultural use is mainly karez and arat.

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Picture 2: Houses in Sagai Killai village

Cropping Pattern

The cropping pattern indicates that the crops are mainly grown in the summer season in both Dashtak and Tobagai areas. The crops grown are wheat, maize, jao, beans, onion and potato. On the non irrigated land which is mainly rain-fed, wheat is grown and is called lalmi. On the irrigated land, other crops are grown. Crops are grown both for self consumption and selling. The income from the sale of wheat, maize etc is much higher in Dashtak than Tobagai. This again points to the fact that if people from Dashtak are relocated will have to be appropriately compensated for the loss of income due to sale of agricultural produce.

Infrastructural facilities

Region Service Number of families saying ‘yes’

Number of families saying ‘no’

Do Not Know

Dashtak

Bank 0 281 114 Cemetery 386 0 8 Hospital/Clinic 375 11 8 Market 2 279 114 Mosque 388 0 7 Police Station 76 216 103

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Post Office 1 278 116 School 376 10 8 Telephone Booth 0 279 116 Veterinary clinic 2 309 84

Tobagai

Bank 0 32

Cemetery 32 0

Hospital/Clinic 4 27

Market 0 32

Mosque 32 0

Police Station 1 31

Post Office 0 32

School 4 28

Telephone Booth 0 32

Veterinary clinic 0 32

Table 11: Infrastructural Facilites at Dashtak and Tobagai areas

Figure 7: Showing Infrastructure Facilities available at Dashtak

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Figure 8: Showing Infrastructure Facilities available at Tobagai

Pachai Results

In spite of repeated efforts, villagers in Pachai area refused to cooperate in the survey. The security conditions also did not permit these teams to persist in this area. So they collected some information from the village heads and counted all the fruit and non fruit trees in the village. There are about 70 families living in the area with a population of about 400 people. Most of the people are either engaged in agriculture, sale of produce from fruit trees or employed at Aynak. There are about 1542 fruit and 2142 non fruit trees in the area.

Perceptions of the Local Communities

During the survey, the villagers were also asked questions related to resettlement to judge their perceptions about the process being followed by the government. In Dashtak, a larger number of respondents said that they have been consulted by the Government and informed about the possibilities of relocation whereas in Tobagai a much lower number of respondents said that they have been consulted. Accordingly larger number agreed to relocate from Dashtak than from Tobagai. This was mainly due to the low level of awareness among people of Tobagai area regarding relocation and compensation issues. In both the areas, large numbers of respondents have questions and complaints which they would like to raise with the appropriate authorities. Much fewer women respondents showed awareness of the project and the possibility of relocation. They also expressed that most of them have not been so far consulted by the Government in this regard and also felt that the project will not benefit them and their families.

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Questions Consulted by Government

Agree to relocate

Awareness of additional infrastructure at resettlement site

Will Project benefit communities at Aynak

Any complaints

Number of PAFs saying Yes

169 217 137 254 334

Number of PAFs saying No

233 186 265 146 67

Do Not Know 52 51 52 54 53 Table 12: Resettlement related feedback from PAPs

Most of the families mentioned that they have not been consulted by the Government in connection with their relocation. This is mainly due to the fact that it is still not certain whether people living in this area will be relocated. A large number of PAFs showed ignorance about the benefits of the project indicating that the awareness about the project is limited in the area. Most of the families had one or the other form of complaint about the resettlement process.

Figure 9: Peoples’ perception about consultation by the Government

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Benefits from project

Yes

No

Do not Know

Figure 10: Peoples’ perception about benefits from the project

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Chapter 5: Identification of Stakeholders

The most important stakeholders have been identified. Some of these stakeholders have been consulted for the purpose of carrying out this SIA.

i) Project Affected Persons (PAPs): The most important stakeholder is the Project Affected Person who is most directly impacted by the project both negatively as well as positively. The local people who get employment at mine as well as related activities benefit from the mining in this area. And at the same time, there are local communities who have to leave their houses due to establishment of smelter plant and tailings pond in the area and they get adversely impacted.

ii) Ministry of Mines: At the institutional level, the major direct stakeholder is the Ministry of Mines which is responsible for regulation of mining activities at Aynak. The concerned officers in the Ministry of Mines are the stakeholders as they are involved in consultation with the project affected persons as well as other relevant institutions.

iii) MJAM, the company which has the extraction rights and exploration rights for Aynak is another important stakeholder as the compensation for land acquisition is to be provided by MJAM to the villagers who will get displaced due to the tailings pond. MJAM is also responsible for the infrastructural development in the mining area to benefit the communities living in the area.

iv) Office of Governor of Logar Province: the Office of Governor of Logar Province and Sub Governor of Logar District are also stakeholders as they are involved in the consultations with the villagers as well as in the development of resettlement area.

v) Ministry of Agriculture, Irrigation and Livestock (MAIL): The Afghanistan Land Authority (ALA) in MAIL is responsible for determining titles for the agricultural land. Therefore, ALA is an important stakeholder in determining the claims of the villagers who are being displaced for the compensation for the acquisition of agricultural land.

vi) National Environmental Protection Agency (NEPA): NEPA is an important stakeholder in terms of clearance of all environmental issues related to the project as per the Afghan Environmental legislation.

vii) Ministry of Urban Development (MoUD): MoUD is an important partner in development of resettlement site at Ashab Baba for the relocating the families moved from the Aynak mine.

viii) Residents of Logar Province are the stakeholders as they will benefit due to increased employment opportunities and better infrastructure in the region created by the project.

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ix) Local civil society or community based organizations are in the indirect group of stakeholders. The local civil society organizations are important stakeholders as they partner with Government in the social and economic development of the area. They also have an out-reach to the communities and help in capacity building of these communities to adapt to the new locations if they have been relocated and also equip them for new employment opportunities in the project areas.

Most of the stakeholders as mentioned above have been consulted during and before the process of carrying out this SIA and their ideas and inputs have been duly incorporated.

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Chapter 6: Environmental Factors in Selecting Tailings Pond Location

Karez tunnels and shafts

Man-made tunnels, if undetected and unsealed, increase the risk to the environment of escapes of slurry and acid mine drainage (AMD) waters.

Karez are man-made water tunnels for transfer of water by gravity to lower ground for drinking water and irrigation of crops. Thousands of karez are present in Afghanistan totaling many thousands of kilometers of tunnels and tens of thousands of shafts for construction, maintenance and ventilation.

Karez are present at Aynak and pose a serious potential environmental hazard if their presence is overlooked. Should a dam, pond or dump be sited upon a karez that has been overlooked, then an escape route for acid mine drainage water (AMD) and slurry may become active. This can be a gradual to sudden event on a small to large scale, risking minor to substantial contamination of surface streams and groundwater resources.

The Ministry of Mines alerted MCC-JCC Aynak Minerals Ltd (MJAM) in July 2011 to the potential threat posed by karez, and MJAM managers verbally agreed to investigate the risk. The Ministry of Mines specifically alerted MJAM to the presence of karez at the site of Option 1 for the tailings pond.

Karez can be easy to detect when strings of karez shaft are visible on satellite images and many were mapped in Afghanistan by Russian surveyors using air photographs and are shown by special symbols on Afghanistan 1:100,000 maps. However, satellite images show many Afghan karez have collapsed in the past, and one or more fresh karez sections have been dug to bypass the collapse. Therefore even when, as at Aynak, a string of karez shafts are plainly visible on satellite images and maps, efforts must be made to detect any collapsed older sections of karez whose shafts have in time faded into the landscape.

A further risk is that ancient karez may be present at Aynak, having supplied water to the archeological sites until abandonment.

Ideally karez should be avoided altogether, and at sites such as Aynak where karez are present, then an exhaustive search is warranted, by a combination of trenching and geophysics.

Option 1 - Dashtak: 5 karez are visible on satellite images and some are featured on Russian 1:100,000 scale topographic maps. One karez is traceable for 1,200 metres but this is unlikely to be its full length. The social survey recorded 319 families as using karez for water supply. It is expected that more karez are present but are obscured.

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Option 2 - Pache: no karez are visible on satellite images and none are shown on Russian 1:100,000 scale topographic maps. However karez may be present but undetected as the geomorphology appears suitable for karez construction. Fortunately unlike Dashtak any karez are likely to be funneled into a narrow area where they can with effort be detected, backfilled and sealed.

Option 3 – Tobagai: karez are present in the villages being visible on satellite images and some are shown on Russian 1:100,000 scale topographic maps, while the Social Survey recorded 13 households as using karez for their water supply. Nevertheless it appears that all the known karez are down-valley of the proposed site of the tailings pond and therefore unlikely to be a significant issue. Even so, karez may be expected up-valley in the proposed site of the tailings pond and a proper investigation is warranted. As with Option2, any such karez are likely to be funneled into a narrow area where they can with effort be detected, backfilled and sealed.

Natural cave systems and other ‘karst’

Natural cave systems, if undetected and unsealed, increase the risk to the environment of escapes of slurry and drainage mine waters (AMD).

The prevalence of limestone and dolomite in parts of the Aynak district, suggest that some of the rocks may have dissolved over time to produce open joints and fissures and possibly cave systems in the otherwise solid rock. This applies particularly to the thick Permian and Triassic sedimentary rocks that are mapped by Russian geologists as containing beds of limestone and dolomite.

Option 1 - Dashtak: steeply dipping strata of Permian and Triassic age forms a 400-metre high Kalagay mountain ridge that is the western flank of the ‘option 1’ site for the Aynak tailings pond. Strata of this age in the Aynak district has been reported by Russian geologists as containing substantial beds of limestone and dolomite rocks, and these have the potential over time to form small to large open cave systems both above (vadosic) and below (phreatic) the water table. Therefore a small but not zero risk exists that acidic water and slurry from the tailings pond at the ‘option 1’ site might escape into open joints, fissures and caves and contaminate not only the groundwater resource but also find their way into the Lowgar river. Even though the risk is small, it is imperative that investigation of this possibility be made by a team of geologists familiar with limestones, dolomites, karst and caves. Wet weather and security concerns led to cancellation of a reconnaissance visit by the MoM Environmental Adviser and GIZ geologists on 15th October 2011. It is planned to attempt a second visit in 2 to 3 weeks’ time.

Options 2 and 3 – Pachai and Tobagai: Limestones and dolomites of Permian and Triassic age have been reported by Russian geologists in these areas, and a reconnaissance

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visit is warranted to check for the presence of cave systems. The greater distance from the Logar river decreases the risk of any escape via karst of acidic mine drainage water (AMD) or of slurry reaching the watercourse.