Guinea has been experiencing acute food crisis since 2016, a crisis that could worsen if the Simandou mining project continues unchecked. This alert note summarizes the risks and impacts of the project on the livelihoods of local communities and proposes concrete measures to strengthen the resilience of those affected by the project.
The Simandou Project at a Glance
Nestled in the wooded mountains of Guinea, in West Africa, lies what would be the largest untapped high-grade iron ore deposit in the world. The Simandou project, one of the most ambitious combined mining and infrastructure projects on the continent, covers a total area of 1,500 square kilometers where the ore will be extracted, processed, and transported over 650 kilometers along a railway line crossing habitats of endangered species, farmlands, and protected areas of the country, before reaching a new deep-water port located in local fishing areas for export.
Coveted for decades by international mining companies, the project is now led by two consortia: the Australian mining giant Rio Tinto with the Chinese aluminum producer Chinalco (Simfer), and the largest Chinese aluminum producer, Hongqiao, with a Singapore-based entity, Winning (Winning Consortium Simandou or WCS). Press reports indicate that the largest Chinese steel producer, Baowu, is in talks with both consortia. The construction of the railway line and the port - estimated to cost $13 billion - owned by both consortia and the Guinean government, as well as blocks 1 and 2 of WCS, has begun. Rio Tinto is updating its studies to begin construction.
The scale of the project represents enormous stakes for the country in terms of both positive and negative impacts on communities. This project will have adverse effects on the livelihoods of affected populations as it traverses all regions of the country. Large-scale mines such as Simandou appropriate vegetable gardens, farmland, grazing areas, and forests that are essential to support the livelihoods of rural communities. Air and noise pollution from mines and roads degrade the quality of agricultural soils, reducing crop yields, deteriorating livestock health, and driving away wildlife and fish. These impacts are particularly severe in the Guinean context, where food security is already very fragile.
Current Livelihood Situation in Guinea
According to a study conducted in 2018, 43.7% of Guineans were living below the national poverty line, representing 5.8 million people. The study revealed that this would increase to 50.1% by 2022. Furthermore, according to the same study, about 65% of the population lives in rural areas, mainly relying on agriculture, livestock, and fishing. Guinea has been experiencing acute food insecurity since 2016, a crisis largely attributed, according to a report on the subject, to an economy dependent on mining. Everything suggests that the development of a large-scale project like Simandou could exacerbate this situation at the community level if WCS and Rio Tinto Simfer do not take concrete measures to prevent the project's risks to the livelihoods of affected people and contribute to improving them.
Current Impacts of the Project on Livelihoods
At the current stage of the project, observations on the ground show that activities are already seriously impacting the livelihoods of riverside communities. Several cases have already been documented by the NGO Action Mines Guinea in four of the nine prefectures including Forécariah, Kindia, Mamou, and Kérouané affected by the construction of the railway and the establishment of some mining installations of the Simandou project. Among these cases we can mention:
The acquisition of cultivable lands from communities without adequate compensation or support for affected persons
Flooding and pollution of agricultural plains by canal water due to Winning Consortium activities on the railway route;
Decrease in agricultural yields due to invasion of crop areas by mud and dust caused by railway construction activities;
Loss and destruction of fishing boat nets in Kaback due to collision with mining boats at sea;
Displacement of fish away from customary fishing zones due to noise pollution from large carriers at sea.
Spillage of used oils into the sea by Winning Consortium Simandou (WCS) boats, as observed by Kaback fishermen;
Loss of grazing areas and migration of livestock to other locations in Madina-oula, particularly in the Kindia prefecture;
High Risks of the Project on Livelihoods.
Non-compliance with commitments: The main risk is that the two companies involved in the Simandou project do not comply with their environmental and social commitments. They are indeed part of groups of companies that have already violated such commitments in the past in the context of projects in Guinea and elsewhere. This is the case of Winning in Guinea according to reports from the International Federation for Human Rights, Natural Justice, and Human Rights Watch; and of Rio Tinto in Guinea, according to a complaint filed with the World Bank Ombudsman, and in other countries.
Absence of a national legal framework on compensation and resettlement:
Another risk for Simandou riverside communities is the absence of a clear and binding regulatory framework that regulates the land acquisition process by companies, compensation process, and resettlement of persons affected by projects. This constitutes a very high risk for Rio Tinto Simfer and WCS to expropriate communities from their lands in violation of their fundamental rights, despite the commitment on paper of the two companies to comply with international reference standards. However, a national reference framework called the "National Compensation, Indemnification and Resettlement Framework" has been developed by an inter-ministerial committee and validated in October 2022 and awaits its adoption by Decree. This Framework, which takes into account international standards and best practices (BPI) in this regard, should apply to all projects.
WCS Land Acquisition, Compensation, and Resettlement Policy Framework:
A framework document called "Resettlement Policy Framework: Land Acquisition, Compensation, and Resettlement" adopted by (WCS) is a commitment of this company to align itself with the International Finance Corporation (IFC) performance standards on land acquisition, compensation, and resettlement. However, this framework document raises some concerns regarding the following fundamental aspects:
On Participation of affected persons...
In terms of participation, IFC Standard 5 recommends: Relevant information must be disclosed; consultation of affected persons must be done at the beginning of the Project and continue during the development of the Project. Special attention should also be given to women and ensuring that their interests are taken into account. Preferences of men and women should be examined from the standpoint of compensation mechanisms, for example, compensation in kind rather than in cash (paragraph 10).
Observations on the ground:
however, observations reveal that affected persons have had very little access to information. The latest reports denounce rushed consultations and have little information/data because consultations as organized by WCS did not allow them to better understand the project nor respect their opinions and consents regarding loss assessment and resulting compensations.
Associated risks:
The lack or insufficiency of consultation during the land acquisition, compensation, and resettlement process constitutes a violation of the fundamental rights of PAP such as the right to information, participation, and free, prior, and informed consent and inevitably leads to inadequate compensations and non-conforming resettlements.
Compensation alternatives...
On alternatives to compensation, IFC Standard 5 recommends that the company propose several options in the case of physically displaced persons. This takes into account adequate housing with secure occupancy so that they can legally resettle without the risk of being evicted (paragraph 22).
Observations on the ground:
However, impacted communities, particularly in Sengelen and Sekhousoriya tunnel areas, see their houses collapsing due to blasting without adequate protection measures. The company has not proposed any alternatives to the impacted communities of Bombiya and Sekhousoria whose houses are affected. This situation constitutes a real risk to the health and safety of PAP who see a fundamental right violated by WCS, which fails in its commitment to protect the health and safety of communities and their properties.
Land and Livelihoods Assessment...
As part of the assessment of land and related assets of communities, IFC Standard 5 provides that cash compensation levels should be sufficient to replace lost lands and other assets at full replacement cost on local markets (paragraph 21).
If displaced persons own and occupy structures, the client (company) compensates them for the loss of assets, such as housing and other land improvements, at full replacement cost if they have occupied the project area before the eligibility cut-off date" (paragraph 22).
In cases where land acquisition or land use restrictions affect commercial structures, the company concerned is responsible for the costs of restoring its commercial activities in another location, the net income loss during the transition period, and the costs of transferring and installing its factories, machines, or other equipment (paragraph 27).
Contrary to these provisions, on the ground, impacted persons interviewed by the investigation mission of the NGO Action Mines Guinea stated that they had only received compensations proportional to the losses of land and other related assets suffered for which they were not previously consulted, nor did they give their consent in the decision-making process.
Associated risks: Some persons affected by the project (PAP) have irreversibly lost their livelihoods. This plunges them into a serious risk of food insecurity and chronic poverty.
On Monitoring and Evaluation...
According to IFC Standard 5, monitoring and evaluation must be continued during and after resettlement. Implementation of an action plan for the year will be considered completed when the negative effects of the plan have been corrected in a manner consistent with the objectives of the Plan and the objectives of IFC Standard 5. Depending on the size and/or complexity of physical or economic displacements in a project, IFC Standard 5 mentions that the company conducts an external audit of the Resettlement Action Plan to determine if the requirements have been met (paragraph 15).
On the ground, impacted persons lament the lack of impact monitoring by WCS and a lack of communication with them (affected communities), which, according to them, should enable identification and better understanding of complaints about shortcomings in order to take appropriate preventive and corrective measures. At this rate, impacted persons risk constant violation of their rights to fair and prior compensation.
Economic Rehabilitation...
In view of IFC Standard 5, transitional economic assistance, such as access to credit, training, or employment opportunities, must be provided to PAP (paragraph 12).
It should be noted that on the ground, impacted persons have unfortunately not benefited from structured assistance programs to adapt to their new impacted situation, particularly economically.
Associated risks: These PAP are at risk of mismanaging the cash compensations received during compensation as they are not prepared for this. This exposes them to medium-term poverty. Such an impact is contrary to the spirit of the IFC standard to which the company has freely subscribed.
Recourse
IFC Performance Standard 5 (PS5) notes the obligation for the client (company) to establish a grievance mechanism to receive and address specific concerns regarding compensation and settlement, including an impartial dispute resolution mechanism (paragraph 11).
Observation on the ground: the grievance management mechanism developed by the company has not been sufficiently disclosed to impacted populations, thereby depriving them of their rights to recourse enabling them to voice their complaints and be taken care of by the company. Internal recourse avenues are essential in implementing IFC performance standards.
The absence of a clear complaint mechanism exposes Persons affected by the project (PAP) to the violation of the right of access to the company. This state of affairs gives WCS an opportunity to disregard the legitimate claims of PAP.
Some additional compliance analyses of the WCS Framework:
Recommendations of the framework that may be ignored: The framework states that "WCS must establish a Land Acquisition and Resettlement Action Plan (LARAP) before commencing any land acquisition for the mining site in accordance with Chapter 7, Section 11 of the Base Agreement" (section 3.1.7 page 26).
Considering this recommendation, the land acquisition, compensation, and resettlement policy framework of WCS are already violated on the ground.
Furthermore, all legal, contractual, and institutional mechanisms, due to their nature, absence, and/or implementation, could limit or deprive local communities of their livelihoods or their ability to claim such livelihoods.
A multi-actor group validated the "National Framework," a national and transversal reference instrument for the resettlement, compensation, and indemnification of populations impacted by development projects in the Republic of Guinea in October 2022. Although its formal adoption is still pending, the Framework reflects Guinean national law and is based notably on international law and best international practices (BPI) such as the Voluntary Guidelines on Responsible Governance of Land, Fisheries, and Forests applicable to food security (the Voluntary Guidelines). The Framework thus reminds that in accordance with the UN Guiding Principles on Business and Human Rights (the Guiding Principles), it is the responsibility of projects to respect internationally recognized human rights. Among the relevant key obligations, the project promoter must restore or improve the livelihoods of affected persons and the Guinean state must ensure follow-up and implementation of this obligation.
Just like Winning Consortium Simandou (WCS), the following commitments have been made by Rio Tinto SIMFER:
Fulfill all requirements of Guinean law and international conventions of which Guinea is a signatory, and adhere to the IFC policy and performance standards (SP) on social and economic sustainability, including SP5 related to land acquisition and forced displacement.
In order to support food security, improve access to food sources, and livelihood opportunities, the Project is developing sustainable agricultural, fishing, and livestock programs… Rio Tinto has also committed to respecting human rights recognized at the international level, in accordance with the Guiding Principles.
Note: despite the fact that the project is still in its early stages, the risks to the livelihoods of local communities are significant.
Thousands of households are at risk of being deprived of their livelihoods and falling into extreme poverty. The mine occupies approximately 6,500 hectares of land to which the local population will be restricted access. This will displace significant activities for their livelihoods, including grazing grounds for livestock, hunting, firewood collection, timber, food, and medicinal plants, as well as some scattered crops. The majority of the land occupied by the project will be submontane grasslands and forest in the protected area of the Pic de Fon, where many activities (grazing, firewood harvesting, commercial logging, fishing, and fire use) will be prohibited. The loss of livelihoods, particularly agricultural land, risks exacerbating food insecurity in project areas, especially with an already worrying situation and in a context of induced migration. Indeed, according to estimates, the project is expected to lead to a sharp increase in migration levels: between 60,000 and 110,000 people are likely to move to the mining area in search of employment and economic opportunities. This land precariousness could lead to overexploitation of land in a context of ambiguity of legal texts governing rural land - notably the absence of explicit recognition of individual and collective customary land rights in Guinean law
Conclusions and Recommendations
If appropriate measures are not taken by mining companies and the Guinean state, the Simandou project will continue to present high risks to the livelihoods of affected populations, likely deteriorating the living conditions of communities in terms of food security and poverty. From this perspective, civil society actors must take the lead not only in monitoring the commitments of companies - for example, the Environmental and Social Management Plans (ESMPs) developed for this purpose - but also in ensuring that all these negative impacts receive appropriate responses for the benefit of the communities. In this regard, we recommend the following:
To the State and its relevant services:
To make additional efforts to adopt the National Framework on Compensation, Indemnification, and Relocation of Persons Impacted by Development Projects in a timely manner;
To organize independent monitoring missions to ensure that companies comply with their legal and contractual obligations regarding the restoration and improvement of community livelihoods, and that corporate practices comply with ESMPs and best international practices (BPI). Failing that, sanctions should be imposed;
To companies:
To already comply with the provisions of the Framework; To respect their environmental commitments, particularly regarding livelihood issues as defined by BPI in this regard;
WCS, in addition to the land acquisition framework, to disclose any resettlement and compensation action plan (including the resettlement action plan during preliminary work (RAPWP)) used by WCS in the Simandou project areas. Additionally, disclose the compensation frameworks and amounts currently used for land acquisition, if necessary disaggregated by locality;
WCS, to organize a meeting between representatives of communities from complaint areas collected by the NGO Actions Mines Guinea and civil society organizations such as Action Mines to discuss how to address the systemic land acquisition issues identified in the gap analysis;
WCS, to ensure prompt response to land acquisition-related complaints in the gap analysis and to share updates with Action Mine on its progress in resolving these complaints.
WCS, to define criteria for determining when to offer land-to-land compensation and a mechanism for implementing such an approach;
To WCS, to define a mechanism to ensure that affected households receive legal advice and support before accepting negotiated settlement transactions;
To develop, beyond financial compensation, sustainable programs and plans to support the restoration and improvement of community livelihoods.
To develop training programs for farmers, fishermen, and herders to strengthen their resilience.
Disclaimer: This document was prepared based on the information available at the time of publication and will be updated as necessary. Most of this information pertains to the Winning Consortium Simandou with a focus on the on-the-ground findings of Guinean civil society organizations.
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