Western Range DSO Iron Ore Project Volume 2 .../media/Files/A/...Western Range DSO Iron Ore Project Environmental and Social Impact Assessment Volume 2: Environmental Legal, Policy

Prepared for

ArcelorMittal Liberia Limited

Western Range DSO Iron Ore Project

Volume 2: Environmental Legal, Policy and Administrative Framework

Final Report September 2010



URS/Scott Wilson Scott House Alençon Link Basingstoke Hampshire RG21 7PP Tel +44 (0)1256 310200 Fax +44 (0)1256 816835 www.scottwilson.com

This document has been prepared in accordance with the scope of Scott Wilson's appointment with its client and is subject to the terms of that appointment. It is addressed to and for the sole and confidential use and reliance of Scott Wilson's client. Scott Wilson accepts no liability for any use of this document other than by its client and only for the purposes for which it was prepared and provided. No person other than the client may copy (in whole or in part) use or rely on the contents of this document, without the prior written permission of the Company Secretary of Scott Wilson Ltd. Any advice, opinions, or recommendations within this document should be read and relied upon only in the context of the document as a whole. The contents of this document do not provide legal or tax advice or opinion. © Scott Wilson Ltd 2009

Revision Schedule Volume 2: Environmental Legal, Policy and Administrative Framework September 2010

Rev Date Details Prepared by Reviewed by Approved by

01 31 July 2010 Draft Report Wayne Borden Lead EIA/ EMP Consultant

Anyaa Vohire ESIA Legal Advisor

Gareth Hearn Project Director

02 30 Sept 2010 Final Wayne Borden Lead EIA/ EMP Consultant

Tanya Romanenko Project Coordinator

Gareth Hearn Project Director

This Report has been prepared by URS/ Scott Wilson in association with its sub consultants, theIDLgroup Ltd



Environmental and Social Impact Assessment Volume 2: Environmental Legal, Policy And Administrative Framework September 2010

Page 3 of 26

Report Structure of Environmental and Social Impact Assessment (ESIA) / Environmental and

Social Management Plan (ESMP)

Section Report Title

Volume 1 Main Environmental and Social Impact Assessment (ESIA) / Environmental and Social Management Plan (ESMP) Report

Volume 2 Legal and Administrative Framework

Volume 3 Physical Environment:

Baseline Conditions and Impact Assessments and Mitigation

Volume 3, Part 1.1 Terrain and Soils Baseline

Volume 3, Part 1.2 Engineering Geological Site Specific Observations in Mine and Infrastructure Areas in Relation to Phase I DSO

Volume 3, Part 2.1 Hydrology Baseline

Volume 3, Part 2.2 Surface Water Impacts and Mitigation

Volume 3, Part 3.1 Hydrogeological and Groundwater Baseline Conditions in Relation to Phase I DSO

Volume 3, Part 3.2 Groundwater Impacts and Mitigation

Volume 3, Part 4 Air Quality Impact Assessment

Volume 3, Part 5 Noise Impact Assessment

Volume 3, Part 6 Landscape Character and Visual Amenity Assessment

Volume 4 Biological Environment:

Baseline Conditions and Ecological Impact Assessment and Mitigation

Volume 4, Part 1 Zoological Assessment and Mitigation

Volume 4, Part 2 Botanical Assessment and Mitigation

Volume 5 Socio-economic Environment

Baseline Conditions and Social Impact Assessment and Mitigation

Volume 5, Part 1.1 Socio-economic Baseline

Volume 5, Part 1.2 Social Impact Assessment / Social Management Plan

Volume 6 Standards for Implementation of the Environmental and Social Management Plan (ESMP)

Volume 7 Mine Closure Plan




Page 4 of 26

Table of Contents

Environmental Legal, Policy and Administrative Framework................. 5

1.1 Introduction..................................................................................................................... 5

1.2 Liberian Environmental Administrative Framework ......................................................... 5

1.3 Liberian environmental legal framework.......................................................................... 7

1.4 International obligations and commitments ................................................................... 13

1.5 International best practice and standards ..................................................................... 15

1.6 Corporate policies......................................................................................................... 16

1.7 Other Relevant Legal Documentation and Guidelines................................................... 17




Page 5 of 26

Environmental Legal, Policy and Administrative Framework

1.1 Introduction According to Liberian legislation, the Scheme must comply with the requirements of existing Liberian environmental processes and standards as specified by relevant legislation and with ArcelorMittal Liberia Limited’s internal policies. This chapter identifies and documents the criteria to be applied to the various specialist studies within the EIA. It does this by identifying Liberian national administrative frameworks and legal requirements (sections 1.2 and 1.3), international good practice (section 1.7), and. corporate policy (section 1.6). Based on an analysis of such standards it then considers for each technical topic covered by this EIA which of these national and/or corporate standards are appropriate or, in cases where these are not in place, identifies appropriate ones that can be taken or adapted from international good practice.

1.2 Liberian Environmental Administrative Framework

Government Organisation National Government Liberia’s government comprises popularly-elected executive and legislative branches, the latter composed of a bicameral National Assembly consisting of the Senate (30 seats with members elected by popular vote to serve nine-year terms) and the House of Representatives (64 seats; members elected by popular vote to serve six-year terms). The country operates a dual system of statutory law based on Anglo-American common law for the modern sector and customary law based on unwritten tribal practices for the indigenous sector. Local Government Liberia comprises 15 administrative counties, each headed by a Superintendent and further divided into Districts, each under a District Commissioner. Each District is sub-divided into Chiefdoms headed by a Paramount Chief, and each Chiefdom is divided into Clans headed by Clan Chiefs and sub-Clan Chiefs, with urban Clans headed by Town Chiefs. The clan areas were originally related to tribal sub-groupings and whilst this still largely applies, increasing urbanisation and civil war has disrupted this pattern and Clans are now defined as administrative units.

Environmental Institutional Framework National Level The Ministry of Lands, Mines and Energy has the statutory responsibility for the development of mineral, water and energy resources in Liberia; it is in charge of land surveys in all parts of the country and coordinates, administers and regulates the use of public and private lands in Liberia, including mineral resources through granting of operation licenses, and regulates beach sand mining. It works along with the Ministry of Agriculture and the University of Liberia to conduct training and research on land rehabilitation. Energy provision is administered through the same Ministry by the National Energy Committee, while water resources are the responsibility of the National Hydrological Service.




Page 6 of 26

The Environmental Protection Agency (EPA) is an autonomous statutory body, established under the Act Creating the Environmental Protection Agency of the Republic of Liberia 2003 (GoL, 2003a), hereafter referred to as the EPA Act, to address the country’s environmental problems. Its mandate was subsequently confirmed when the EPA became a fully functioning entity in 2006, with the appointment of a board of directors and establishment of a Policy Council. The EPA was established to “coordinate, monitor, supervise and consult with relevant stakeholders on all activities in the protection of the environment and sustainable use of natural resources” and as the lead national environmental agency is charged with executive authority for all environmental activities and programmes relating to environmental management in Liberia (GoL, 2003a, s. 5). The EPA also has a key responsibility for matters relating to the issuing of an environmental impact assessment license and for compliance monitoring relating to environmental regulations and standards. The EPA is an autonomous agency under the President with a Policy Committee chaired by the minister for Lands Mines and Energy. The Ministry of Agriculture regulates the forestry as relate to plant quarantine, agro-forestry and food crop related plantations; fishery and agriculture sectors and has specific responsibilities for soil conservation. Some water resource matters used to be managed by the National Water Resources and Sanitation Board prior to the civil war, and proposals have recently been made for its re-establishment. It plans, executes, administers, manages and supervises agriculture programmes and provides extension services, trains local farmers in improved cultural practices, and supplies farm inputs to enhance food security. The Forestry Development Authority (FDA), established in 1976, was historically the government agency with primary responsibility for environmental management in Liberia. Now an autonomous body, and mandated by the National Forestry Reform Law of 2006, the FDA has responsibility for the protection, management and conservation of government-owned forests and wildlife on a sustainable basis. It manages commercial, conservation and community uses of Liberia’s forest estate. It provides long- and middle-range planning in the forestry sector as well as preparing forestry policy, law and administration. It exercises control of the commercial use of state-owned forests through the granting of concessions, supervises adherence to forest legislation and concession agreements, calculates and determines forestry fees, evaluates investment proposals, executes reforestation and forest research and training and monitors activities of timber companies. The 2006 law revised the institutional framework of the FDA and created a Department of Conservation which is made up of the Division of National Parks and the Division of Wildlife with the responsibility for development and management of protected areas and wildlife respectively. The Ministry of Planning and Economic Affairs (MPEA) responsible for intersectoral coordination for s the development of policies, plans and programmes for the economic, financial, social, cultural and physical development of Liberia. In fulfilling its various duties it serves as the direct link between implementing Ministries/Agencies, NGOs, private voluntary organisations, and the international community. Coordination occurs at the national, sectoral and regional planning levels and also involves the implementation of cross-cutting initiatives. Other governmental institutions with environment-related responsibilities include the Ministry of Education, Ministry of Public Works, Ministry of Health and Social Welfare, Ministry of Foreign Affairs, the Liberia Water and Sewer Corporation and the Liberia Electricity Corporation.

Management at Local Level Statutory Management Practices In support of the establishment of the EPA, the EPA Act (GoL, 2003a) also established County and District Level environmental committees, responsible for the local delivery of national environmental policy and priorities. In a move towards a more bottom up approach, a key function of the committees is to articulate




Page 7 of 26

local level environmental issues to the EPA who in turn are charged with formulating and passing on a relevant response for local level implementation. In addition, under Section 20 and 21 of the EPA Act (GoL, 2003a), the EPA is mandated to appoint environmental inspectors within districts to monitor the implementation of environmental standards as established under the EPML (GoL, 2003b). The power of these inspectors is wide ranging and includes the provision to close “any manufacturing plant, establishment or other activity which pollutes or is likely to pollute the environment, contrary to the provisions of the Act” (GoL, 2003a). Traditional Management Practices

Local level resource management is implemented through traditional systems and practices. At the lowest level of local administration, power and decision-making is in the hands of traditional tribal authorities. The highest rank is that of Paramount Chief who is responsible for the actions of a number of Clan Chiefs. The Paramount Chief is elected by the chiefs and elders but serves at the discretion of the President, who may veto the election. The Council of Elders (elderly, respected community members) must be consulted on important matters. The Paramount Chief has responsibility for enforcement of tribal customs, aspects of law and order, collection of taxes by lower rank chiefs, and promotion of agriculture, industries, trade and welfare. It is difficult to judge the power of the chiefs, who remain strongly influenced by the secret societies (Poro/Sande) in relation to observance of tribal customs. Chiefs are not government employees, but retain a portion of taxes for their services and for local projects. Traditionally, their power is largely determined by their control (not ownership) of land. The interactions between the State and its institutions with the traditional tribal institutions and practices are regulated by the Hinterland Laws 1949 (GoL, 1949).

1.3 Liberian environmental legal framework The most recent Constitution of Liberia was drafted in 1984. It forms the basis of environmental law in Liberia, particularly Article 7 which provides for public participation of all citizens in the protection and management of the environment and natural resources in Liberia and places responsibilities on state organisations to ensure this is met.

National Environmental Legislation and Policy The EPA Act established an Environmental Administrative Court and provides for a National Environment Action Plan, which builds on local – regional action plans. The Act requires Environmental Impact Assessments (EIAs) to be carried out for all activities and projects likely to have an adverse impact on the environment, and mechanisms to require restoration of degraded environment. The Act also provides the means for permits, fees and fines. The Act Adopting the Environment Protection and Management Law of the Republic of Liberia 2003, (GoL, 2003b) hereafter referred to as the Environment Protection and Management Law (EPML) is the principal piece of legislation covering environmental protection and management in Liberia, forming parallel legislation to the EPA Act (GoL, 2003a). It provides the legal framework for the sustainable development, management and protection of the environment by the EPA in partnership with relevant ministries, autonomous agencies and organizations. It also stresses inter-sectoral coordination while allowing for sector specific statutes. In Part II, Section 4 of the EPML it lays down a number of principles guiding the administration of the law, amongst which those key to the proposed Scheme are:




Page 8 of 26

• The principle of sustainable development;

• The precautionary principle;

• The polluter-pays principle; and

• The principle of public participation.

Part III of the Law covers provisions for environmental impact assessment, audit, and monitoring; Part IV deals with Environmental Quality Standards for water, air, hazardous waste, solid waste, soil, noise, ionization and other radiation, and noxious odours; Part V covers pollution control and licensing; Part VI provides guidelines and standards for the management of the environment and natural resources including rivers, lakes and wetlands, landscape, forest protection, wildlife, energy and renewable resources, coastal zone and marine environment; Part VII deals with protection of biodiversity, natural heritage and the ozone layer including in-situ and ex-situ conservation of biodiversity, genetic resources, land use planning, natural heritage sites, and the ozone layer; Part VIII covers environmental restoration orders; Part IX deals with inspection, analysis and record-keeping; Part X outlines international obligations; Part XI covers information access, and education and public awareness and Part XII outlines offences. Although not part of the EIA process it is noted that ArcelorMittal Liberia Limited may, under the EPML, need to obtain consents in addition to the EIA permit for specific activities, notably those relating to:

• Effluent discharge (Section 58 of EPML);

• Solid and hazardous waste disposal (Section 64); and

• Pollution emission (section 71).

Mining Legislation and Policy The Act Adopting a New Minerals and Mining Law Part 1, Title 23, Liberian Code of Laws Revised (GoL, 2000), hereafter referred to as MML, lays out the ownership and rights to minerals in Liberia and the requirements to explore and to operate mines and quarries. Chapter 8 covers Environmental Protection and states that – “Each Holder of a Mineral Right shall take reasonable preventative, corrective and restorative measures to limit pollution or contamination of, or damage to, streams, water bodies, dry land surfaces, and the atmosphere as a result of Exploration or Mining”. Section 8.4 requires an Environmental Impact Assessment Study Report prior to the grant of an application for a Class A Mining Licence. As well as requiring the EIA to “state the adverse impact of Mining … of Minerals and related activities, and set forth a plan of mitigation and reclamation”, it also states that “Special attention shall be paid to any adverse effects on nearby communities”. Section 8.5 goes on to require an Environmental Management Programme and 8.6 requires Periodic Environmental assessments to be conducted. Additional requirements of the MML are outlined in section 1.7, particularly with respect to the freshwater environment, (section 4.6.2) land rights and labour protection (section 4.6.7). As a final note the Law also confirms the Government’s commitment to its international obligations (see section 4.4.7)…”Each and every Holder of Mineral Rights is, subject to the provisions of international conventions which the Government has ratified and the laws and regulations of the Governmental agencies of the Republic of Liberia” The Draft Mineral Policy of Liberia (GoL, 2008) is designed to provide a framework for the management of the country’s mineral resources. While recognising that mining itself is an intrinsically unsustainable activity, the policy places environmental stewardship and social responsibility at the heart of its approach. Two of the policy’s guiding principles are to:




Page 9 of 26

• Minimise and eliminate adverse social and environmental impacts due to mining activities; and

• Ensure consultation of all stakeholders and project affected people from exploration through mining and post mine closure.

Furthermore, the draft policy states:

“no significant mineral operation will be permitted without an environment and social impact assessment being conducted, evaluated and approved by the Liberian Government. Plans for managing environmental and social impacts must be incorporated into the assessment reports. These must, right from inception of the operation include plans for redressing physical impacts upon closure of the mine as well as for sustaining community livelihoods thereafter.”

With regard to land rights and compensation, the policy commits the Government of Liberia to establish “a framework for the evaluation and management of competing land use options” to include “appropriate compensation principles, including criteria for considering resettlement options”. The policy also recognises the Government of Liberia’s responsibilities under the Extractive Industries Transparency Initiative (EITI), noting specifically that “[the Government] will ensure that communities adversely affected or that could be thus affected by mining operations derive regular and significant benefits from those operations” (GoL, 2008: 11)

Forestry Legislation and Policy The Act Adopting the National Forestry Reform Law of 2006 (Amending the National Forestry Law of 2000, As Amended; and Amending an Act Creating the Forestry Development Authority, as Amended) (GoL, 2006), is now the paramount piece of forestry legislation and covers all aspects of commercial, conservation and community use of forests. This law also has a primary role with respect to the wider environment, with Chapter 8 covering Environmental Protection and Chapter 9 covering protected forests and protected areas for wildlife. A number of provisions in Chapter 8 are relevant to the current Scheme:

• Section 8.2.c states – “The Government shall not grant Class B or Class C Mineral Rights in Protected Areas or Proposed Protected Areas”;

• Section 8.2.d states – “The Government shall not grant Class A Mineral Rights in National Forests or Proposed Protected Areas unless:

a) The [Forestry Development] Authority has concurred with the grant;

b) The Authority has written appropriate guidelines for maximum protection of the Environment and sustainable management of the forest during exercise of the grant;

c) Compliance with the guidelines is a condition of the grant”.

The provisions above are in addition to prohibitions on mining contained in Chapter 9 on Protected Forest Areas Network and Wildlife Conservation which sets out procedures for establishment of protected forest areas along with their regulations and prohibitions. Mining is prohibited in all categories of protected area, except a Multiple Sustainable Use Reserve

1. The categories of Protected Forest Areas are still those

contained in Appendix I of the Protected Forest Areas Network Law (GoL, 2003c) which, in aiming to protect Liberia’s forests from deforestation, fragmentation and degradation, specifically requires the

1 A Multiple Sustainable Use Reserve is an area, set aside pursuant to Chapter 9 of the National Forestry Reform Law (GoL, 2006), to

allow sustainable uses of Forest Resources, including subsistence uses. In Section 9.10b it is stated that only farming and timber extraction are prohibited in these areas. It does not explicitly state any restrictions on mining activities although these may apply.




Page 10 of 26

establishment of a Protected Forest Areas Network to cover at least 30% of the existing forested area of Liberia. It defines eight protected area types, two of which have relevance to the current Scheme because of the proximity of such areas:

• National Forest – an area set aside for sustainable regulated commercial forest product extraction, hunting and the preservation of essential environmental functions performed by the forest. Existing areas of National Forest lie beyond the western limits of the Scheme, running towards the border of Liberia with Guinea; and

• Nature Reserve – an area that does not form a complete ecological unit, set aside for the preservation and enjoyment of features that have outstanding natural beauty, cultural or biological significance, which may require some management intervention. Although the East Nimba Nature Reserve (ENNR) lies beyond the eastern limits of the area currently proposed for mining, it is within the wider Concession Area within which certain activities are allowed within the terms of the Mining License. This may therefore require particular consideration in the EIA. The FDA, with collaboration from the communities and relevant stakeholders, has begun the demarcation of the ENNR boundary which is moving toward the regional boundary.

Chapter 5 of the National Forestry Reform Law (NFRL)(GoL, 2006) covers the commercial and other use of forests. The most basic provision contained in Section 5.1 (a) is that “No person shall undertake Commercial Use of Forest Resources without permission from the [Forestry Development] Authority …” and in 5.1 (b) “The Authority may grant permission required … only through Forest Management Contracts, Timber Sale Contracts, Forest Use Permits, or Private Use Permits”. This may apply to the mine if any of the trees to be felled have commercial value. Section 19.1 gives the FDA the power to issue additional regulations to assist with implementation of the Law. This clause has recently been exercised with the issue of “FDA Draft Hunting Regulations” which includes a revised list of protected species. As of 2008, draft regulations on the environment have also been prepared which provide for the undertaking of an EIA for forestry projects that involve:

• Timber logging and processing;

• Forestry plantation and forestation and introduction of new species;

• Selective removal of single commercial tree species; and

• Pest Management.

For such projects the EPA EIA Procedural Guidelines (EPA, 2006) for forestry projects would therefore apply if removal of trees for the project constituted such a project. Chapter 10 of the NFRL mandated that the FDA should prepare and send to the President to be presented to the Legislature for enactment of a comprehensive Community Rights Law (CRL) as relate to forest lands. The Community Rights law was enacted in 2008 and gives the communities management rights of community and traditional lands and forest resources on them. The CRL contain challenges and flaws related the issue of land tenure. At consultations of stakeholders it was agreed that the CRL should cover only community rights to access, use and manage forest resources not land ownership which should be dealt with by the Land Commission already established by Legislative Act of 2009. The CRL mandates the establishment of Community Assembles and Management Committees for the management of community lands and forest resources. The FDA has commenced the development of regulations to implement the CRL. The regulations are intended to correct some of the flaws of the CRL therefore direct interpretation of some aspects of the law may be problematic and may require advice from FDA.




Page 11 of 26

The NRFL of 2006 also mandated a comprehensive Wildlife Law to be enacted. In recognition that Chapters 8 and 9 of the NFRL did not adequately cover best practices and new approaches to conservation, The FDA has drafted a comprehensive Conservation and Wildlife Management Law which is in the process of preparation to be forwarded to the President. Under this draft law protected area network creation process has been expanded to reference community rights and participation.

Liberia Land Commission act of 2009 Objective is to propose, advocate and coordinate reforms of land policy, laws and programs in Liberia. It does not have adjuratory or implementation role. The goal of the commission is “to develop a comprehensive national land tenure and land use system that will provide equitable access to land and security of tenure so as to facilitate inclusive sustained growth and development, ensure peace and security and provide sustainable management of the environment” (Land Commission 2009)

Liberia Extractive Industries Transparency Initiative Act (LEITI) of 2009 This Act requires that companies involved extracting the natural resources must publish what they pay and government must report on what they collected from the companies. Section 3.1 of the Act states that

The general objective of the LEITI shall be to assist in ensuring that all benefits due the Government and people of Liberia on account of the exploitation and/or extraction of the country’s minerals and other resources are (1) verifiably paid or provided; (2) duly accounted for; and (3) prudently utilized for the benefits of all Liberians and on the basis of equity and sustainability.

Relevant among the specific objectives outlined in Section 3.2:

a. To require and maintain transparency over all material payments due from and/or made by extractive companies to all agencies and levels of the Government of Liberia as well as all revenues collected from the companies by the Government; and b. To require all companies engaged in the extraction of agriculture, forest and mineral resources in Liberia to join the LEITI.

In addition to mandating public disclosure of contracts and concessions bearing relationship with the extraction of forest and mineral resources, the section 3.2 encourages the adoption of appropriate policies for fair sharing of the benefits accruing from exploitation of the natural resources of Liberia. Liberia is the only country where commercial forestry has been included under the EITI.

Biodiversity Legislation and Policy Liberia ratified the Convention on Biological Diversity (CBD) (UN, 1992a) on 8 November 2000; this acts as the over-arching framework for all Government legislation and policy concerning the conservation and sustainable use of biodiversity and the equitable sharing of its benefits. The key Government policy with regard to biodiversity is the National Biodiversity Strategy and Action Plan (NBSAP) (GoL, 2004) which implements the CBD at national level and comprises two components – the vision statement, the guiding principles, the goals and objectives on one hand and the actions for




Page 12 of 26

biodiversity conservation, sustainable use, and benefit sharing on the other. The goals and objectives are developed in consonance with the guiding principles. Those relevant to the current Scheme are:

a) Liberia’s economic development must be based on sustainable use and sound management of renewable and non-renewable resources;

b) Ecosystem approach should be seen as critical to comprehensive and effective conservation and sustainable use of biological diversity;”

The NBSAP has an overall goal couched in very general terms, and six specific goals, only the first of

which has direct relevance to the proposed Scheme. Goal 1 is:

“To take appropriate measures to protect critical ecosystems against harmful effects or destructive practices for conservation of biological diversity”

and in order to meet this, 16 objectives are elaborated, again those most relevant to the current proposals being:

1. Manage, conserve, protect and maintain game species and agricultural biodiversity as well as representative samples of forest ecosystems, inland water ecosystems, coastal and marine ecosystems, wetlands, natural heritage sites.

2. Develop EIA criteria for all programmes and projects that are likely to have significant impacts on biological diversity

3. Leave enclaves of natural forests on higher elevations and along waterways

4. Regulate the introduction of alien species.

The EPML also makes over-arching provisions for the management and protection of biodiversity. Section

74 – Management of Rivers, Lakes and Wetlands states that the EPA may prescribe general or specific

guidelines for their management, and with specific relevance to the Scheme:

a) Measures for the prevention or control of soil erosion; b) The conservation of any vegetation growing in and around a river, lake or wetland;

The contingency plan for the prevention and control of any deliberate or accidental

discharge which is likely to pollute the river, wetland or lake;

The control measures to be taken in harvesting minerals including the strategies for the

restoration of mining sites; …”

Section 75 – Protection of Rivers, Lakes and Wetlands goes on to state that:

“… no person shall in relation to a river, lake or wetland …

a) Excavate, drill, tunnel or disturb the bed otherwise; … b) Deposit any substance in a river, lake, or wetland or in or under its bed, which is likely to have

adverse environmental effects on the river, lake or wetland; c) Direct or block a river, lake or wetland from its natural and normal course; and d) Drain any river, lake or wetland.”

Section 80 provides an outline framework for the Protection of Wild Animals and Birds and includes conservation areas. It differentiates wildlife protected areas in section 80 (4) – national park, wildlife




Page 13 of 26

reserve, and nature reserve – from wildlife management areas in section 80 (5) – wildlife sanctuary, and community wildlife area – while also stating that the Line Ministry can designate any other area as either as it sees fit. Sections 83-85 provide for the enabling environment for the conservation of biodiversity, charging the EPA with the responsibility for a wide range of measures from preparing national conservation strategies to selecting and managing buffer zones to protected areas, to issuing guidelines for botanical gardens. Section 9 of the National Forestry Reform Act 2006 (GoL, 2006) also charges the FDA with the task of establishing and managing a Protected Forest Areas Network which in addition to national parks and nature reserves includes national forests, strict nature reserves, game reserves, controlled hunting areas, community forests, conservation corridors and buffer zones within some of which there are prohibitions on activities, including mining. The Wildlife and National Parks Act 1988 (GoL, 1988) – covers the policies and objectives, the administration, and the establishment of protected areas, as well as their management including plans, and prohibited acts; controls on hunting; and the establishment of protected species. Chapter VI of the Act (Sections 31 to 42) controls hunting including limitations on areas, seasons, and methods. The Act also specifies a list of fauna species that are totally protected (appended as Schedule I to the Act). This has been updated by the Draft Hunting Regulations. It is also understood that this Act is currently being updated, although the updated version was not yet available at the time of completion of this Review. The Nimba Nature Reserve Act (2003) (GoL, 2003d) created the East Nimba Nature Reserve (ENNR) out of the former East Nimba National Forest and formally recognised the reserve as one of internationally high priority for its biological richness. It specifically notes the significance of the site in relation to the adjacent Nimba Mountains World Heritage Site (Guinea and Ivory Coast) and also of the need for integrated tri-national collaboration for conservation management in this region.

Other Legislation and Policy This relates principally to legislation and policy applicable to social, economic and community issues which is currently being addressed. It is anticipated that this will include legislation and policy relating to economic development, land tenure, labour laws, health and safety, and community rights, etc.

1.4 International obligations and commitments

Liberia is a party to a range of international conventions, a number of which have relevance to the proposed Scheme. Those of most relevance are presented below in Table 1.




Page 14 of 26

Table 1 – International Conventions under which Liberia has obligations relevant to the proposed Scheme

Convention

Date of

Ratification/

Accession

Main Obligations Relevance to Scheme

Convention on Biological Diversity (UN, 1992a)

8 Nov 2000 Three main goals: the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of the benefits from the use of genetic resources

Construction and operation of the Scheme should lead as far as possible to no net loss of biological resources including genetic diversity

Ramsar Convention on Wetlands of International Importance (UNESCO, 1971)

2 Nov 2003 Advances conservation and wise use of wetlands and their resources

Wetlands of international importance must not be damaged in any way – the Gbedin Wetlands lie just east of the railway line at km 212

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (UNEP, 1979a)

9 June 1981 Strictly controls trade in endangered species

Limits hunting of rare species

Convention on the Conservation of Migratory Species of Wild Animals (UNEP, 1979b)

1 Dec 2004 Aims to conserve terrestrial, marine and avian migratory species throughout their range

Signatory to Memorandum of Understanding on Marine Turtles believed to occur near Buchanan port

African Convention on the Conservation of Nature and Natural Resources (OAU, 1968)

21 September 1978

Encourages action to conserve, use and develop soil, water, flora and fauna sustainably from economic, nutritional, scientific, educational, cultural and aesthetic points of view

Urges action to conserve soil and prevent erosion; control pollution; and conserve flora and fauna

United Nations Framework Convention on Climate Change (UN, 1992b)

2003 Requires efforts to combat global warming and a key tool in promoting sustainable development

Various sources of CO2 emissions

Stockholm Convention on Persistent Organic Pollutants (UNEP, 2001)

2002 Governs the use of Persistent Organic Pollutants. The list of 12 substances covered under the convention includes Dichloro-Diphenyl-Trichloroethane (DDT).

Manage stockpiles and wastes in an environmentally sound manner; Dispose of waste so that the persistent organic pollutant’s content is destroyed or irreversibly transformed; Recycling, recovery, reclamation, direct reuse or alternative use of persistent organic pollutants not permitted.

Convention Concerning the Protection of the World’s Cultural and Natural Heritage (UNESCO, 1972)

2002 Requires that measures are taken for the national and international protection of cultural and natural heritage

East Nimba Nature Reserve and proposed West Nimba Protected Area recognised as areas of international biological richness.

International Tropical Timber Agreement (UNCTAD, 1994)

2006 Requires sustainable management of timber resource base, simultaneously

Influence on mitigation and compensation measures including proposed offsets




Page 15 of 26

Convention

Date of

Ratification/

Accession

Main Obligations Relevance to Scheme

encouraging the timber trade and the improved management of the forests

International Covenant on Economic, Social and Cultural Rights (ICESCR) (UN, 1976)

1967 ICESCR commits to work toward the granting of economic, social, and cultural rights to individuals, including labour rights and rights to health, education, and an adequate standard of living. ICESCR is part of the International Bill of Human Rights, along with the Universal Declaration of Human Rights (UDHR) and the International Covenant on Civil and Political Rights (ICCPR)

Labour standards for Scheme construction and operations and also input into social impacts of Scheme (including resettlement)

Extractive Industries Transparency Initiative (EITI) http://eitransparency.org/

Accepted as a candidate country, 27 September 2007. It has until 9 March 2010 to undertake validation

Companies must disclose what they pay and governments what they receive

The President released a Proclamation of the Liberian EITI in September 2008, making the LEITI a significant policy of the government, and obliging all agencies of government and mining, logging and oil companies to comply with all requirements of the LEITI.

1.5 International best practice and standards In addition to adherence to the relevant national standards, best practice for projects in emerging economies is generally informed by those of the international financing organisations. Prime among these are those established by the International Finance Corporation (IFC). Over several decades the IFC has developed various guidelines, policies, performance standards and directives to ensure that environmental and social safeguards are integrated into the planning and implementation of the projects it finances. These are widely considered to set the international benchmark standards across a range of industries. The following IFC standards and guidelines have informed this assessment;

• The Eight Performance Standards on Social and Environmental Sustainability (IFC, 2006)

• Guidance Notes and reference documents (IFC, 2007a). These are companion documents to the Performance Standards providing guidance in meeting the standards

• Environmental, Health and Safety Guidelines. These provide technical guidance, performance levels and measures considered to be achievable at reasonable costs using existing technology, applicable to certain industrial activities, as well as general directives for industries. Such guidance can therefore assist in developing Scheme specific performance criteria, although it is recognised that the site specific context, environmental sensitivity, geographic development, must also be taken into account. The development of such customised criteria will therefore ultimately be reliant on professional judgement. The following were drawn on in developing the criteria for the EIA.

a) Environmental, Health and Safety Guidelines, General Guidelines (IFC, 2007b);

b) Environmental, Health and Safety Guidelines for Mining (IFC, 2007c);




Page 16 of 26

c) Environmental, Health and Safety Guidelines for Railways (IFC, 2007d);

d) Environmental, Health & Safety Guidelines for Ports, Harbours and Terminals (IFC, 2007e). Further general guidance included other World Bank Group publications and that developed specifically for

the mining sector including:

• Pollution Prevention and Abatement Handbook (World Bank, 1998):

• Good Practice Guidance for Mining and Biodiversity (ICMM, 2006);

At a wider level, ArcelorMittal have a stated commitment to the United Nations (UN) Global Compact, which commits ArcelorMittal to ten key principles in the areas of human rights, labour and the environment

2.

Further topic specific guidance is referenced as appropriate throughout section 1.7 below.

1.6 Corporate policies As a local operating company of ArcelorMittal, the conduct and operations of ArcelorMittal Liberia Limited are dictated by a suite of policies and plans which set out the company’s commitment to environmental and social good practice (see www.ArcelorMittal.com). These are summarised in their environmental policy statement issued in June 2007 as:

1) Implementation of environmental management systems including ISO 14001 certification for all production facilities;

2) Compliance with all relevant environmental laws and regulations and other company commitments;

3) Continuous improvement in environmental performance, taking advantage of systematic monitoring and aiming at pollution prevention;

4) Development, improvement and application of low impact, environmental production methods taking benefit of locally available materials;

5) Development and manufacture of environmentally friendly products focusing on their use and subsequent recycling;

6) Efficient use of natural resources, energy and land;

7) Management and reduction where technically and economically feasible of the CO2 footprint of steel production;

8) Employment commitment and responsibility in environmental performance;

9) Supplier and contractor awareness and respect of ArcelorMiittal’s environment policy.

10) Open communication and dialogue with all stakeholders affected by ArcelorMittal’s operations.

Key elements of these policies are:

• The implementation of environmental management systems including ISO 14001 certification for all production facilities;

2 These can be found at http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/index.html




Page 17 of 26

• Compliance with all relevant national environmental and community engagement laws and regulations and other company commitments, keeping the Company’s environmental impact to a minimum; and

• Working towards a goal of zero accidents and injuries in the promotion of a healthy and safe working environment.

To ensure that these policies and plans are delivered at the local level, ArcelorMittal have put into place a management and monitoring framework which places the onus on national and international operating companies to deliver the company commitment. As part of its response, ArcelorMittal Liberia Limited has developed a (Draft) Corporate Responsibility (CR) Action Plan, within which it is stated:

“As our mining operations expand and the impacts are increasingly being felt by our stakeholders, we recognize that there will be a growing need to address issues related to sustainable development, our impact on the environment, and the health and safety of our employees and partners. As the largest investor in post�war Liberia, we have a unique responsibility to ensure that we are the leader in internalizing globally recognized standards related to our relationship with the communities we work in and with our employees.” (ArcelorMittal Liberia Limited, 2008e).

1.7 Other Relevant Legal Documentation and Guidelines The sections below outline the Liberian legal requirements and identify those of the IFC or other groups

that are relevant for the project.

Physical environment: soils and geotechnical issues Liberian water legislation and standards Although Part IV, Section 40 of the EPML (GoL, 2003b) states that EPA shall, “in consultation with the relevant Line Ministry, establish criteria and procedures for the management and determination of soil quality and minimum standards for the management of soil quality”. To date no such standards have yet been developed. Liberia is, however, a signatory of The African Convention on the Conservation of Nature and Natural Resources (OAU, 1968) which specifies: Article IV the Convention – Soil The contracting States shall take effective measures for conservation and improvement of the soils and shall in particular combat erosion and misuse of the soil. To this end:

“they shall establish land use plans based on scientific investigations (ecological, pedological, economic and sociological) and, in particular, classification of land use capability)

they shall, when implementing agricultural practices and agrarian reforms, improve soil conservation and introduce improved farming methods, which ensure long-term productivity of the land; control erosion caused by various forms of land use which may lead to loss of vegetation cover.”




Page 18 of 26

International best practice The IFC Environmental, Health and Safety Guidelines for Mining (IFC, 2007c) provides guidance of specific relevance to the design and management strategies needed for particular aspects, including measures relating to:

• Stormwater;

• Profiling (geometry) of mines;

• Haul roads;

• Waste dumps;

• Tailings;

• Occupational health and safety;

• Physical hazards.

• These guidelines stress the importance of soil management in particular:

• Reducing exposure of sediment-generating materials to wind or water;

• handling, storage, and transportation of hazardous materials to avoid leaks, spills or other types of accidental releases into soils;

• Minimizing disturbance to vegetation and soils;

• Implementing soil conservation measures (e.g. segregation, proper placement and stockpiling of clean soils and overburden material for existing site remediation) considering the key factors such as placement, location, design, duration, coverage, reuse, and single handling;

• Where topsoil is pre-stripped, it should be stored for future site rehabilitation activities. Topsoil management should include maintenance of soil integrity in readiness for future use. Storage areas should be temporarily protected or vegetated to prevent erosion; and

• Exposed soils and other erodible materials should be revegetated or covered promptly; The United States Bureau of Reclamation (USBR) land capability classification (LCC) system developed by Klingebiel and Montgomery (1961) describes a method for physical and chemical parameters of top soil for classification. The Revised Universal Soil Loss Equation (RUSLE) (Toy and Foster, 1998) is a quantitative procedure used to estimate relative soil loss due to erosion in different parts of the same landscape. It should be noted that its application is in estimating relative amounts rather than reliable absolute values.

Physical Environment: water Liberian water legislation and standards The EPML establishes a number of important principles with respect to safeguarding the quality of the

freshwater environment. These include:

• an intention to establish criteria and procedures for the measurement of water quality for different uses (Part VI, Section 35);

• an intention to develop a strategy to identify materials that are dangerous to human health and the environment; and to issue guidelines on handling, storage, transportation, segregation and destruction of hazardous waste (Part VI, Section 37);

• Regulations against the discharge of any hazardous substance, chemical, oil or mixture containing oil in any waters or any other section of the environment (Part V, Section 56);




Page 19 of 26

• a framework for a system of Effluent Discharge Licenses, regulating the discharge of any effluent or other pollutants originating from the trade or industrial undertaking (Part V, Section 56 and 57); and

• legislation against the dumping or discharge of any poison, toxic, noxious or obstructing matter, radioactive waste or other pollutant into any waters of Liberia, which is likely to cause harm to human health or aquatic environment in contravention of water pollution control standards (Part V, Section 61).

Although these principles exist within the EPML, there are not as yet any guidance documents that actually provide quantified targets. This also applies to more general legislation within the MML which states that the holder of a Mining License “shall ensure that all water polluted by its Exploration or Mining is restored to its prior state and that any water courses that have been closed are re-opened, or substitute water courses opened such that the area is drained by natural runoff with a minimum of erosion.” (Section 8.3, GoL, 2000), Liberia is, however, a signatory of The African Convention on the Conservation of Nature and Natural Resources (OAU, 1968) which specifies: Article V this Convention – Water

“The contracting States shall establish policies for conservation, utilization and development of underground and surface water, and shall endeavour to guarantee for their populations a sufficient and continuous supply of suitable water, taking appropriate measures with due regard to -

• the study of water cycles and the investigation of each catchment area;

• the co-ordination and planning of water resources development projects;

• the administration and control of all water utilization; and

• prevention and control of water pollution.

In recognition of this during a meeting between WS Akins International (WSAI) and the EPA in November 2008, the EPA expressed two guiding principles that they wish to be at the heart of the consideration of design, effects and mitigation:

• That the mining activities and associated infrastructure should not cause any major changes to the nature of the rivers that receive drainage from the mine and mine infrastructure. This includes water quality, flow rate and geomorphological nature; and

• That ‘due regard’ should be given to those people that use the intermediate water bodies that exist between the Scheme elements and the rivers. This includes any streams, swamps, ponds or groundwater that drain the mine or other Scheme infrastructure and could therefore experience changes in water quality or availability as a result of its presence or operation. Where changes to quality or availability could affect human users, then this should be mitigated where possible. Alternative supplies could be considered, provided these are suitable for the people affected.

To this end the EPA has indicated that it requires reasoned, evidenced proposals based on good practice.

International best practice Given the lack of national standards for Liberia, the following international standards can be referred to for guidance. These include:




Page 20 of 26

• Guidance and standards for drinking water quality have been taken from the World Health Organisation (WHO) standards (WHO, 2006).

• The IFC’s General Environmental, Health and Safety Guidelines (IFC, 2007b) and

• The IFC’s Environmental Health and safety Guidelines for Mining (IFC, 2007c); and

• Additional guidance referred to and recommended in the IFC guidance, notably: U.S. Department of the Interior, Office of Surface Mining Acid Mine Drainage Prevention and Mitigation Techniques (USDI, 2002) and British Columbian Policy for Metal Leaching and Acid Rock Drainage at Mine Sites in British Columbia’ (BCMEM, 1998)

As the issue of sedimentation from the mine workings is one of the most significant potential impact, both

as a direct impact and due to mobilisation of soluble iron within the catchment, a number of supplementary

documents are applicable in relation to the management of sediment. These include:

• The Minesite Water Management Handbook (Minerals Council of Australia, 1997);

• Water Quality Protection Guidelines (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000a and 2000b); and

• Control of Water Pollution from Linear Construction Projects (Murnane et al, 2006). The Minesite Water Management Handbook (MCA, 1997) and the Water Quality Protection Guidelines: No. 6 Minesite Stormwater Management (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000a) and No.11 Mine Dewatering (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000b) are based on best practice from the extensive Australian mining industry which has the most experience based, and hence well developed, guidance relating to this sector and is therefore recommended as the most comprehensive water management guidance available specifically for mine sites. The Minesite Water Management Handbook sets out the strategic issues that mineral operators need to consider for responsible water management at site and corporate levels in order to manage risks and identify opportunities for continuous improvement. It provides high level guidance on issues that should be addressed in developing a water strategy. The Water Quality Protection Guidelines provide more detailed best practice guidance on stormwater and sediment control. Murnane et al (2006) has also been selected as it is considered to be a detailed, robust and well recognised guidance document. The Water Quality Protection Guidelines: No. 6 Minesite Stormwater Management (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000a) and No.11 Mine Dewatering (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000b) contain the following guiding principles in relation to sediment control:

• “Discharge water should not cause the suspended solids/turbidity seasonal background

concentration of the receiving waterbody to increase by more than 10%.”

• “Discharge water should not cause the deposition of settleable matter that may adversely affect the visual, recreational and ecological values of the receiving waterbody.”

This approach ensures both seasonally based, quantitative targets, and ensures that the observed, harmful sedimentation mechanisms that are associated with deposition of irons sands are avoided. It also satisfies the stakeholder requirements for catchment management. The Water Quality Protection Guidelines: No. 11 Mine Dewatering (Water and Rivers Commission and Department of Minerals and Energy Western Australia, 2000b) contain the following guiding principles in




Page 21 of 26

relation to the discharge of toxins (including metals):“ The level of toxicants discharged should not cause the seasonal background concentration of toxicants in the receiving waterbody to increase by more than 10%”. It is a good practice to ensure that mining activities do not significantly increase peak discharge rates within the catchment, as this can cause scouring and loss of hydro-ecology within the receiving watercourses. The WHO standards provide guidance and standards for drinking water quality.

Physical Environment: Air Quality

International best practice Ambient Air Quality: There is a wide range of air quality standards applied internationally for the protection of human health, but they tend to originate from common sources. The WHO has produced a series of air quality guidelines for a wide range of pollutants that are normally adopted for projects funded by the IFC. These WHO guidelines also form the basis of the standards derived within the European Union and the United Kingdom. It is recognised that pollutant concentrations in many developing countries exceed the recommended WHO guidelines. WHO has therefore also proposed a series of interim target levels to promote steady progress towards meeting the guideline standards. The United States has also published a comprehensive list of air quality standards

3. Within the African continent, South Africa has published a

set of air quality standards (SANS 1929, 2004). Dust Deposition: In comparison with ambient air quality standards, there are comparatively few standards that have been adopted for dust deposition. Environmental Impact Assessments carried out in the UK frequently cite a dust deposition standard of 200mg/m

2/day, as measured over a 30 day mean, as being a threshold above which nuisance complaints

might arise. This is a non-statutory standard, and is not included in UK legislation. South Africa (SANS 1929, 2004) has adopted a four band scale for dust deposition depending upon the type of area affected. For residential areas, dust deposition rates should not exceed 600mg/m

2/day, as

measured over a 30 day period. Soil (dust) Toxicity: UK Soil guideline values (SGVs) (DEFRA and EA, 2002a, 2002b) and US Preliminary Remediation Goals (PRG) (USEPA, 2008) provide assessment criteria for soil chemistry, providing indicators of potential unacceptable risk. They were created using human toxicity data to estimate the amount of substance an individual would take in as a result of exposure to soil.

Physical Environment: Noise

Liberian legislation and standards Part IV, Section 41 of the EMPL (GoL, 2003b) states that the EPA shall, in consultation with the relevant Line Ministry establish:

“Minimum standards for emissions of noise and vibration pollution into the environment;

3 Available at www.epa.gov/air/criteria.html




Page 22 of 26

Criteria and procedures for the measurement of noise and vibration pollution into the environment from existing and futures resources;

Criteria and procedures for the measurement of sub-sonic vibrations;

Guidelines for the abatement of sub-sonic vibrations;

Noise levels and noise emission standards applicable to construction sites, plants, machinery, motor vehicles, aircraft including sonic booms, industrial and commercial activities;

Appropriate measures to ensure the abatement and control of noise from sources referred to above;

Controls for the levels of noise emanating from sources referred to above, details of which shall be given to the owner or occupier of the premises from which the measurement was taken; and

Guidelines for the abatement of unreasonable noise and vibration pollution emitted into the environment from any source.”

Currently however, there are no ambient noise standards in legislation for Liberia.

Landscape character and visual amenity

Liberian legislation and standards The primary legislation in Liberia relating to Landscape is contained within the EPML, Section 76 which provides for the protection of landscape from environmental degradation. County Environmental Committees (with the assistance of District Environmental Committees) are tasked with the responsibility of identifying areas at risk from environmental degradation and notifying the EPA. In consultation with the relevant Line Ministry, the EPA should then issue guidelines and measures for the protection of that area for implementation by County and District Committees. However, to date no such areas have been identified or guidelines issued. Annex C Part 3 of the EPA EIA Procedural Guidance (EPA, 2006) includes the following issues to be considered in the EIA process:

• Views opened up or closed;

• Visual impacts (features, removal of vegetation, etc;

• Compatibility with surrounding areas; and

• Amenity opened up or closed e.g. recreation facilities.

The Minerals and Mining Law also provides some reference to Landscape in relation to informing the

preparation of site restoration plans Where Section 8.2 states that the holder of a mining license “shall,

among other things, level all surfaces to the extent reasonable, or contour, grade and terrace all exposed

artificial gradients and declivities created as a result of Exploration or Mining”.

In addition to relevant current legislation, a number of draft regulations and standards are being processed as follows:




Page 23 of 26

1 FDA Regulation 106-07, Part Three section 32 (of the NFRL 2006) – Benefit Sharing

2 EPML: Air - Quality & Standards Regulation (2009)

3 EPML: Noise Pollution Control & Standads Regulations (2009)

4 EPML: Water Quality Control & Standards Regulation (2009)

5 EPML: Liberia Waste Management & Standards Regulation (2009)

6 Hazardous Waste Regulations

International best practice The assessment of landscape quality and visual amenity as a unique discipline is characterised by a lack of guidance and best practice. The subject is most developed in the United Kingdom where methods and detailed criteria exist to direct Landscape and Visual Impact Assessments. Guidelines for Landscape and Visual Impact Assessment (GLVIA) were published by the Landscape Institute and the Institute of Environmental Management and Assessment (IEMA, 2002). The GLVIA states that “landscape and visual effects are independent but related issues; landscape effects are changes in the landscape, its character and quality, while visual effects relate to the appearance of these changes and the resulting effect on visual amenity”. It goes on to provide principles to be adopted in both landscape and visual assessment as well as specific methods and tools that can be applied to the process. It recognises that, unlike certain other topics, it is not possible to apply measurable standards against which effects can be assessed, but reliance needs to be placed on both quantitative and qualitative evaluations which are context-specific and reflect local values. It therefore focuses on providing guidance on developing and applying such context specific criteria rather than specifying absolute standards.

Biological Environment

Liberian Legislation and Standards The Liberian legal requirements in relation to biodiversity are described above. The key issues of relevance to this project are:

• The prohibitions on activities including mining in protected or proposed protected areas as outlined in Sections 8 and 9 of the National Forestry Reform Law 2006 (GoL, 2006);

• The prohibition on activities relating to species of fauna protected under the Wildlife and National Parks Act 1988 (GoL, 1988);

• Adoption of an ecosystem approach to management of biodiversity as articulated in the CBD, to which Liberia is a signatory and the Liberian National Biodiversity Strategy and Action Plan (GoL, 2004); and

• The requirement for “no net loss of biodiversity” as embodied in the principles and targets of the CBD.




Page 24 of 26

International best practice The significant international standards of relevance are:

• IFC Performance Standard 6 (IFC, 2006) and associated Guidance Note (IFC, 2007a);

• International Association of Impact Assessment (IAIA) Best Practice Principles on Biodiversity-Inclusive Impact Assessment (IAIA, 2005); and

• Business and Biodiversity Offset Program (BBOP) principles on biodiversity offsets (BBOP, undated).

IFC Performance Standard 6 (IFC, 2006) and associated Guidance Note (IFC, 2007a) relate to

Biodiversity Conservation and Sustainable Natural Resource Management –“To protect and

conserve biodiversity” - key to the current Scheme “To promote the sustainable management

and use of natural resources through the adoption of practices that integrate conservation needs

and development priorities”. In particular it notes that “The sustainable management and use of

renewable natural resources by the private sector should be achieved by balancing conservation

and development priorities, and recognising that this may require trade-offs on each side”.

The Guidance Note pays particular attention to the problems of habitat destruction and note it “is

recognised as the major threat to the maintenance of biodiversity”. It divides habitat into “natural

habitat … (where the biological communities are formed largely by native plant and animal

species, and where human activity has not essentially modified the area’s primary ecological

functions) and modified habitats (where there has been apparent alteration of the natural

habitat, often with the introduction of alien species of plants and animals, such as agricultural

areas)”. Crucially it draws attention to the fact that “Both types of habitat can support important

biodiversity at all levels, including endemic or threatened species”.

The Guidance provides advice for both Modified and Natural habitat, thus:

• in areas of modified habitat, the client will exercise care to minimise any conversion or degradation of such habitat, and will, depending on the nature and scale of the project, identify opportunities to enhance habitat and protect and conserve biodiversity as part of their operations.

• in areas of natural habitat, the client will not significantly convert or degrade such habitat, unless the following conditions are met:

a) there are no technically and financially feasible alternatives

b) the overall benefits of the project outweigh the costs, including those to the environment and biodiversity

c) any conversion or degradation is appropriately mitigated. Such mitigation measures will be designed to achieve no net loss of biodiversity where feasible, and may include a combination of actions, such as:

Post-operation restoration of habitats Offset of losses through the creation of ecologically comparable area(s) that is managed for

biodiversity




Page 25 of 26

Compensation to direct users of biodiversity” where “significant conversion or degradation is: (i) the elimination or severe diminution of the integrity of a habitat caused by a major, long-term change in land or water use; or (ii) modification of a habitat that substantially reduces the habitat’s ability to maintain viable population of its native species”.

The Guidance in relation to Critical Habitat says:

“Critical Habitat – Critical habitat … includes areas with high biodiversity value, including habitat required for the survival of critically endangered or endangered species; areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or which are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic or cultural importance to local communities”.

The Guidance reinforces the importance of critical habitat by indicating that project activities should be

precluded from such habitat unless the following requirements are met:

• “There are no measurable adverse impacts on the ability of the critical habitat to support the established population of species described in [the] paragraph [above] or the functions of the critical habitat described in [the] paragraph [above]

• There is no reduction in the population of any recognized critically endangered or endangered species [defined by IUCN categories]

• Any lesser impacts are mitigated in accordance with [requirements for modified and natural habitat]”.

The Guidance also makes reference to legally protected areas where they require, in addition to acting in a manner consistent with the management plan and consulting with local stakeholders, that the project proponent will “implement additional programmes, as appropriate, to promote and enhance the conservation aims of the protected area”. They also suggest, and provide details for, producing a Biodiversity Action Plan –

“In situations where there are recognized to be significant biodiversity issues associated with an investment, the preparation of a Biodiversity Action Plan is a valuable process which focuses the client’s attention on the details of identifying and handling biodiversity issues in a comprehensive fashion. The Plan is usually carried out as an integral part of the project’s Social and Environmental Assessment, and integrated into the assessment documentation”.

The IFC Environmental, Health, and Safety Guidelines for Mining (IFC, 2007c) continue to stress the importance of conserving critical habitats and protected areas and raise two other important issues – that of “the potential for biodiversity offset projects” and “whether the project or its associated infrastructure will encourage in-migration, which could adversely impact biodiversity and local communities”. They also pay particular attention to the implementation of soil conservation measures to ensure sufficient medium for use during site reclamation and closure activities. The IFC Guidelines for Railways (IFC, 2007d) also stress the importance of critical habitats but also raise the issue of avoiding habitat fragmentation and ensuring that adequate provisions are made to allow animals to cross the railway, using culverts, tunnels and the like. Both sets of guidelines emphasise the importance of minimising the use of chemical herbicides in the maintenance of vegetation around the mine sites and along the railway right-of-way, and also the importance of avoiding the accidental introduction of invasive alien species. IAIA’s Best Practice Principles and emerging guidance from BBOP both stress the need to achieve ‘no net loss’ of biodiversity and to take a precautionary approach in cases where important biodiversity is at risk and level of knowledge is low.




Page 26 of 26

The following approaches were considered: An ecosystem approach – as required by the CBD and Liberia’s NBSAP and as promoted in IAIA’s Best Practice Principles (2005). The ‘no net loss’ principle – as articulated in the CBD and reflected in the IAIA best practice principles on biodiversity-inclusive impact assessment (IAIA, 2005) and BBOP’s principles on biodiversity offsets (BBOP, undated). The concept of ‘critical habitat’ – as described, a concept used by the World Bank group and articulated specifically in IFC Performance Standard 6 (IFC, 2006). Important biodiversity –all relevant sources outlined above were used to define criteria for identifying ‘important biodiversity’, reflecting inter alia Liberian designations, global conservation status and community use. In determining important biodiversity, reference has been made to criteria used by the International Union for Conservation of Nature (IUCN) in particular IUCN’s Red List of Threatened Species (IUCN, 2008) and Conservation International’s Biodiversity Hotspots (CI, undated) and Birdlife International’s Important Bird Areas. (Birdlife International, undated). These organisations are amongst the oldest and largest global environmental networks and their criteria for determining important biodiversity are widely accepted as the international good practice benchmark. In particular, the IUCN Red List is internationally accepted as the authoritative review of the status of global species.

Western Range DSO Iron Ore Project Volume 2 .../media/Files/A/...Western Range DSO Iron Ore Project Environmental and Social Impact Assessment Volume 2: Environmental Legal, Policy

Documents