A Mine of Information?

This Panos London Illuminating Voices report discusses differences in understanding about Rio Tinto's ilmenite mine in the Fort Dauphin area of southern Madagascar, which, as stated in the report, have led to mistrust and social conflict. This 24-page document examines the debates, grievances, consultations, and negotiations that have taken place between the mining company, QIT Madagascar Mining S.A. (QMM), the Government of Madagascar (GoM), and the many different stakeholders affected by the project, including members of the local community.

The mine is the first of a number of mining projects planned for Madagascar with the support of the World Bank. The report intends to reveal the gaps in consultation and communication and assesses the consequences. It raises questions to be considered by all stakeholders, making recommendations for improvements in communication.

The introduction to the document points to divergent needs and interests of stakeholders (e.g., subsistence landowners and environmentalists), and states the author's perspective of what is needed, but lacking: "... all stakeholders need to have a place at the negotiating table; they need to speak (literally) the same language; they need an understanding of cultural differences; and an understanding of what is meant by a process of negotiation. There has to be a commitment that the process will lead to tangible outcomes."

Specifically, the document cites a lack of straightforward information about mine finances available to journalists, academics, and nongovernmental organisations (NGOs), and a lack of national debate about the finances, especially servicing of loans. It recommends: "To allay... fears and promote greater transparency in relation to the mine project, investors should open up their books and share their economists’ assessments about the investment. Widening the debate about the financial situation at this stage would increase accountability and help all stakeholders identify the best way forward."

Debate and discussion is also recommended on the risks involved in corruption, e.g., revenues siphoned off before they reach the treasury - a scenario known as ‘the resource curse’- and other risks affecting the government, such as increased investment risk and hidden costs, e.g. increased local services.

The discussion of difficulties in stimulating the local economy while mitigating impact on a small isolated community focuses on creating communication channels among QMM, GoM, and the business community through regular meetings to discuss economic trends and seek ways to involve more businesses in exploring viable opportunities. "Better communication with stakeholders could have helped to identify employment needs and opportunities, and put into perspective the limited local employment opportunities," potentially reducing local dissatisfaction and addressing the ensuing inflation and wage skewing that followed the mine's opening.

Land rights and official land titles are now changing, as the federal government develops a land title action plan, backed by the World Bank, and are being questioned locally. The author calls for debates of all stakeholders, including those who hold customary, rather than official, land titles.

For those displaced by the mine, miscommunication about compensation has been compounded because stakeholders from different cultural backgrounds "hold different and sometimes incompatible approaches to social values and rules (governance)... Land assessors and permanently affected people (PAP) were not able to communicate to reach a common understanding of land values, as shaped by local traditional knowledge and context." Slow processes of livelihood replacement combined with unresolved social and environmental issues have caused mistrust. As stated here, "For permanently affected people (PAP) to trust the communications process, it must be seen to be impartial, a space where their legitimate concerns can be aired and taken on board."

In outlying areas affected by the project, contradictory messages about property rights are leaving villagers in limbo, unable to make decisions about the future due to lack of information. The document suggests a "well-designed communications strategy, preferably prepared in advance, incorporating all viewpoints and involving all stakeholders in its formulation."

Environmental concerns have increased because of the absence of impact studies and of consultation with local people on forest preservation zones, reforestation, and the effects on biodiversity of using exotic tree species to replace native species. "Local priorities are not always shared by conservationists, so more effective communication between parties may help to reconcile differences."

Because of what the author finds to be "a marked contrast between the safety procedures applied to on-site staff and local people" the recommendation is for measures to communicate prevention and safety measures to everyone in the area. This kind of discussion is recommended for traffic safety as the new road to the mining area reaches completion.

The Fort Dauphin mine is a testing ground for implementing corporate social responsibility (CSR) policy because it is the first such project in a series and has chosen in-house staffing for development and environmental regulation, as explained here: "Where other mining companies have hired environmental and social consultants, QMM has created whole departments, often staffed with people from an NGO background." The author interviewed those who found it paradoxical that the mining company would enter the field of development in socio-economic and environmental areas. "Encouraging an open climate of discussion and debate in which all views and opinions are considered and valued...[and] convened by an external organisation, and so independent from the politics of the project" may be a strategy, as recommended here, to improve levels of local communication and trust in order to avoid suspicions and mistrust. This would include various "[r]obust means of monitoring and evaluating the impact of the project on local people and the environment, preferably supported by independent specialists; lessons learned should be shared with all stakeholders and inform the development of future CSR implementation strategies."