4F Land Access, Displacement and Resettlement

This section provides guidance on land access, displacement and resettlement (LADAR). Anglo American recognises the significant impact of displacement on communities and the importance of managing it in a way that promotes positive and sustainable outcomes for both the affected communities and the business. This section is aligned with the International Finance Corporation (IFC) Performance Standards (PS), particularly PS 5. Under the Anglo American Social Way (‘The Social Way’), every Anglo American site is required to identify, assess and manage LADAR impacts in a timely, consistent and transparent manner. This requirement applies across all stages of the asset lifecycle.

Specifically, this section:

Explores the topic of LADAR and highlights key terms relating to LADAR to ensure a common understanding
Gives guidance on site-level management of LADAR through the development of a strategy and framework
Outlines the preparatory scoping and framing work required before commencing with participatory resettlement planning
Provides guidance on the development, operationalisation and implementation of Displacement Management Plans (DMPs) (Resettlement Action Plan (RAP), Livelihood Restoration Plan (LRP), Land Access Procedure (LAP) and Remedial Plans)
Explains the monitoring and evaluation (M&E) requirements, as well as compliance reviews and close-out audits
Indicates the roles and responsibilities of various internal stakeholders to ensure the cross-functional collaboration required for LADAR management

Within Anglo American, all resettlement projects are treated as capital investment projects and follow the governance requirements as set out in the Investment Committee (InvestCo) Terms of reference (ToR). In the context of this Toolkit section, the term “resettlement project” refers to distinct projects involving the management of temporary or permanent physical or economic displacement. Task 1 (see 4F.2 Guidance) sets out how these resettlement projects are identified. This step-by-step guide to manage land access, displacement impacts, and resettlement projects is aligned with the Investment Development Model’s (IDM) Investment Criteria by Stage (ICbS) requirements.

Intended users

The intended users of this section are primarily the operations Social Performance (SP) teams and the project teams responsible for planning and implementing displacement and resettlement. However, managing land access and displacement requires a cross-functional approach; various activities may necessitate land access and displacement impacts may stem from a variety of sources. As such, multiple functions have a role to play in avoiding and minimising displacement impacts or implementing a RAP, LRP or LAP. Other key functions, in addition to SP, include Mine/Asset Planning, Strategic Planning, Technical, Projects, Environment, Health and Safety, Legal (including teams responsible for land transactions and acquisitions), Project Management and Security.

Relevance to other sections

Planning for and managing LADAR involves several of the guidance sections in The Social Way.

Governance (Section 1):
- Social Performance Management Committee (SPMC) – multiple departments have a role to play in minimising and managing LADAR. The SPMC provides the forum to ensure that all relevant functions at site-level are engaged.
Review and Planning (Section 2)
- As part of Social Performance planning, sites are required to review and update their baseline data and context review. This information is central to anticipating and understanding land access and displacement impacts. Additionally, systemic and site-related vulnerability must be considered as part of LADAR planning and implementation.
Engagement and assessment (Section 3)
- A. Stakeholder Engagement (3A) – guidance provided on stakeholder engagement must be adopted when designing and conducting resettlement-specific engagement. Resettlement-specific engagement must be aligned with the site’s Stakeholder Engagement Plan (SEP).
- B. Incident and Grievance Management (3B) – similarly, the resettlement-specific grievance mechanism must be aligned with and utilise the tools of the incident and grievance management process.
- C. Social and Human Rights Risk Analysis (SHIRA) (3C) – potential displacement-related impacts must be included and assessed in SHIRA.
Impact and risk prevention and management (Section 4)
- A. Socio-Economic Development (SED) Plan (4A) – livelihood restoration programmes should be informed by and aligned with SED Plans and, conversely, SED plans should be cognisant of livelihood restoration requirements resulting from resettlements. Poor livelihood restoration outcomes undermine Anglo American’s Purpose, can have a direct influence on our ability to meet the Sustainable Mining Plan commitments, and negatively impacts our ability to undertake wider community engagement.
- C. Community Health and Safety (CHS) Management (4C) – displacement and resettlement can have impacts on affected stakeholders’ health and mental well-being and can make them more vulnerable to other CHS impacts. CHS impacts may also be a resettlement trigger.
- E. Security Management and Voluntary Principles on Security and Human Rights (VPSHRs) (4E) – in the event of eviction or expropriation, potential human rights impacts related to security require specific attention.
- G. Site-Induced Migration (SIM) (4G) – SIM management is required to effectively manage secured land and avoid or minimise displacement impacts.
- H. Cultural Heritage (4H) – cultural heritage impacts resulting from or associated with physical or economic displacement must be included in the Cultural Heritage Management Plan (CHMP) (see Section 4H.2 Guidance, Task 4) and managed in accordance with the Cultural Heritage section. Thus, if graves are identified as displaced assets, the Cultural Heritage section is triggered and a Grave Relocation Procedure (GRP) is required to relocate the graves (see Section 4H.2 Guidance, Task 5).
- I. Indigenous Peoples (4I) – the displacement and resettlement of Indigenous Peoples require additional considerations; most notably, free, prior and informed consent (FPIC).
- J. Conflict Management – if LADAR results in conflict, it must be managed in accordance with approach presented in the Conflict Management section.
- K. Artisanal and Small-scale Mining (ASM) – management of ASM may entail physical and/or economic displacement and require the development of a suitableDMP(RAP or LRP).

Definitions

Asset survey/asset inventory

A survey undertaken to identify (a) persons eligible for compensation, and (b) identify and assess/value all assets (by owner and/or rights holder) that will need to be replaced/compensated under the .

Census survey

A survey of all persons who will be displaced by the project that captures all appropriate socio-economic baseline data of affected persons and their households and records their assets (as determined during the asset survey) to determine eligibility for compensation and other support.

Compensation

Refers to monetary payment and/or provision of replacement or alternative assets in exchange for the taking of land, including fixed assets thereon, in part or whole, or impact on livelihood. Compensation also includes costs such as fees for obtaining land title, moving costs, etc., associated with the resettlement process.

Completion audit

Assesses whether ahas been completed, whether planning objectives have been met and if any corrective actions or extension of existing mitigation measures, especially livelihood restoration, are required to complete the displacement management process. The audit is undertaken by an independent specialist usually after sufficient time has passed for the impact of mitigation measures to manifest in a manner which can be detected.

Compliance review

Regular assessment against predetermined indicators on whether displacement management complies with company requirements. The review is undertaken by an independent assessor or assurance body and should commence during displacement management planning.

Compulsory acquisition/ expropriation

Compulsory acquisition/expropriation is the power of government to acquire rights in land without the willing consent of the owner or occupant if such acquisition/expropriation is deemed to be in the public interest, and often necessary for social and economic development.

Cut-off date

The cut-off date provides a basis for determining eligibility for inclusion in the resettlement process. It may be defined by national legislation, and typically coincides with either the start or completion of the census and assets inventory of persons affected by the project. Persons who start occupying the project area after the cut-off date are not eligible for compensation and/or resettlement assistance. Similarly, fixed assets (such as built structures, crops, fruit trees and woodlots) established after the cut-off date need not be compensated.

Displacement

Encompasses physical and economic displacement (see definitions for ‘physical displacement’ and/or ‘economic displacement’).

Displacement Framework

A document setting out the principles and procedures to be adopted for resettlement. It promotes consistent good resettlement practices over time by defining the overarching principles for land access, compensation and resettlement/livelihood restoration planning that will apply to all resettlement processes, and is the precursor to the detailed and/or for individual project components.

Disturbance

Temporary physical or economic displacement

Economic displacement

Loss of assets (including land), or loss of access to assets, that leads to loss of income or means of livelihood as a result of project-related land acquisition or restriction of access to natural resources. People or enterprises may be economically displaced with or without experiencing physical displacement.

Eligibility

Entitlement to compensation and assistance due to subjection to displacement resulting from land acquisition, the revocation of rights, and/or the expropriation of property. A typical condition for eligibility is that the affected assets or rights must have been established prior to the cut-off date.

Entitlements

The compensation offered to persons, households, groups and/or communities physically and/or economically displaced by the project. This includes (but is not limited to): financial compensation; the right to participate in livelihood restoration programmes; replacement land and/or housing, service provision, transport assistance, and other short-term assistance required to move from one site to another.

Forced eviction

Permanent or temporary displacement of individuals, households and/or other affected groups from their occupied residence or property against their will, without providing access to legal or other forms of protection. To be distinguished from legal eviction.

Full replacement cost

Replacement cost as a rate of compensation for lost assets must be calculated as market value plus transaction costs. (, 2012); i.e. A replacement cost/value of any land or other asset is the cost/value equivalent to or sufficient to replace/purchase land or other asset of equivalent value or agricultural productivity. Depreciation of structures and assets should not be considered.

Government-led resettlement

Land acquisition and management of associated displacement impacts that is undertaken by national authorities on behalf of a company to deliver unencumbered access to land. Normally undertaken in jurisdictions where national law requires government authorities to lead land acquisition processes.

Host (or receiving) community

Communities that live in or around areas where physically displaced people will be resettled to or where replacement agricultural land is allocated, and who, in turn, may be affected by the resettlement. Resettlement may give rise to impacts on host communities – for instance, through increased pressure on land, water or other resources, or through changes in local socio-economic dynamics.

Household

A person or group of persons who share a dwelling unit. A dwelling unit is a house, apartment, mobile home, cluster of rooms, or a single room in which the occupants live and eat separately from other persons and which has direct access from the outside of the building or through a common hall. A household does not necessarily correspond to a family and may consist of a single family, one person living alone, two or more families living together, or any other group of related or unrelated persons who share living and cooking arrangements.

Involuntary resettlement

Resettlement is considered involuntary when affected individuals or communities do not have the right to refuse land acquisition that will result in displacement. This occurs in cases of lawful expropriation or restrictions on land use based on eminent domain; and in cases of negotiated settlements in which the buyer can resort to expropriation or impose legal restrictions on land use if negotiations with the seller fail.

Land access

Refers to the availability of land to be occupied or used as intended, with the required security of ownership or tenure and in agreement with the (displaced) land users and/or local communities.

Land Access Procedure

A procedure required in cases where short-term and/or intermittent requisite land access will result in temporary restrictions on land access; damage to or loss of crops, trees or structures of economic value; temporary disturbance in livelihood activities; or temporary physical displacement as a result of short-term risks to health and safety.

Land acquisition

Includes the outright purchase of property and purchase of access rights, such as rights of way.

Legal eviction

An eviction process, usually government-led, that is developed in consultation with relevant authorities to deal with cases where it has not been possible to reach negotiated settlement agreements with all displaced households or individuals despite having followed a comprehensive and participatory resettlement planning process.

Livelihood

A livelihood comprises the capabilities, assets and activities required for a person to make a living, such as: wages from employment; cash income earned through an enterprise or through sale of produce, goods, handicrafts or services; rental income from land or premises; income from a harvest or animal husbandry; share of a harvest (such as various sharecropping arrangements) or livestock production; self-produced goods or produce used for exchange or barter; self-consumed goods or produce, food, materials, fuel and goods for personal or household use or trade derived from natural or common resources; pensions; various types of government allowances (child allowances, special assistance for the very poor); and remittances from family or relatives.

Livelihood Restoration Plan (LRP)

Analogous to a , except that it is appropriate for cases where displacement impacts are limited to economic displacement (i.e. does not include physical displacement).

Livelihood Restoration Programme

A programme intended to set out how to replace or restore livelihoods lost or reduced as a result of a project. The programme will aim to restore or preferably improve the quality of life and standard of living of affected parties, and ensure food security through the provision of economic opportunities and income generating activities of affected property owners and their households. The livelihood restoration section of a(/) should include several livelihood restoration programmes to achieve livelihood restoration.

Negotiated settlement (terms)

Settlement terms achieved through (a) providing fair and appropriate compensation and other incentives or benefits to affected parties, and (b) mitigating the risks of asymmetry of information and bargaining power. Negotiated settlements usually aim to achieve a “willing buyer and willing seller” scenario. However, Anglo American considers all displacement to be involuntary even if negotiated settlement is achieved.

Physical displacement

Loss of house/apartment, dwelling or shelter as a result of project-related land acquisition which requires the affected person(s) to move to another location.

Project-led resettlement

In contrast to government-led resettlement, project-led resettlement refers to land access and displacement funding and management by the company.

Qualified/ competent expert

Individual who has considerable, demonstrable and recent expertise in the specific field in comparable contexts. Where relevant, expertise should be supported with appropriate background, credentials, professional registration and/or qualification.

Remedial (corrective) plan

Similar to a ; however, remedial planning is undertaken where past land access and displacement management are not compliant with company and/or good practice standards. The need for and scope of the remedial plan is determined based on findings of the compliance reviews and close-out audit.

Resettlement

An umbrella term denoting the spectrum of actions to mitigate the adverse impacts of physical and/or economic displacement.

Resettlement Action Plan (RAP)

A plan that provides a comprehensive set of actions for addressing impacts related to physical and economic displacement. It describes the procedures and activities that will be taken to compensate for losses, mitigate adverse project impacts, and provide development benefits to those who will be resettled or displaced as a result of the project.

Resettlement assistance

Support provided to people who are physically displaced by a project. Assistance may include transportation, food, shelter, and social services that are provided to affected people during their relocation. Assistance may also include cash allowances that compensate affected people for the inconvenience associated with resettlement.

Resettlement trigger

The activity or circumstance that causes displacement and requires resettlement. This may be land access for operational purposes, or environmental, health or safety impacts on a specific community.

Schedule of rates

A gazetted set of monetary compensation rates to be used in the valuation and calculation of compensation for various categories of land, structural assets, crops and trees, and other assets which might be purchased by authorities during land acquisition.

Vulnerable persons

People who, by virtue of gender, ethnicity, age, physical or mental disability, economic disadvantage or social status, may be more adversely affected by project-induced displacement than others and who may be limited in their ability to re-establish themselves or take advantage of resettlement assistance and related development benefits. They may include people living below the poverty line, the landless, the elderly, women- and children-headed households, ethnic minorities, communities dependent on natural resources or other displaced persons who may not be protected through national land compensation or land titling legislation. In a project-specific context, vulnerability is a relative concept in that it is intended to identify persons, households or groups requiring additional support/assistance over and above that applicable to the displaced community as a whole.

Lifecycle planning

Across the lifecycle of the asset, consideration needs to be given to how potential displacement impacts and risks can be prevented, mitigated, managed, and monitored.

During the Discovery phase, initial engagement with communities on, and the site’s management of, land access and temporary and/or permanent displacement set the tone and precedent for the remainder of the lifecycle. It is critical that temporary land access is managed through an appropriate LAP and that no premature commitments are made regarding entitlements, compensation or future potential permanent displacement. It is equally important to avoid securing rapid co-operation from communities by agreeing to unrealistically high compensation rates for damages or disturbance, as this would create the expectation that all future projects and/or operations will apply similar rates.

In Project Development, when strategic planning decisions are being made in terms of requisite land access, project teams should aim to avoid and minimise land access needs and resultant displacement impacts. This is best achieved through considering alternative project designs.

During the Operations phase, the operations teams must assess possible displacement impacts on an ongoing basis, particularly related to CHS impacts resulting from mining activities.

4F.1 Introduction

4F.1 Introduction