Types of in-migrants

Typically, in-migrants are attracted to areas where mine sites are located due to real and perceived direct and indirect economic and employment opportunities. The IFC¹ indicates that in general, a multiplier effect of three to four in-migrants per site worker is not uncommon in emerging markets (no estimates for out-migrants is available).

Mine sites commonly attract labourers, entrepreneurs, artisanal miners, informal service suppliers, and small-scale traders. In-migrants can be foreigners, nationals, from the same province, and even from the same area as the local population. There is no set definition for ‘local’ or for an in-migrant. Definitions are context-specific and evolve over time.

There are several types of in-migrants typically associated with mine sites. Table 4G.1 provides an overview of the types of in-migration commonly experienced at mine sites.

TABLE 4G.1 Type of in-migrants

Type	Motivation
Non-local direct site employees and their families	Permanent/long-term workers directly employed by the site who move to the area, sometimes with family. Recruitment of large numbers of outside workers is typically required to build, operate, and manage a site due to lack of supply and/or capacity of local labour pools.
Non-local contract workers working on behalf of the site, and their families	Permanent/long-term workers employed by contractors working on the site’s behalf who move to the area, sometimes with family. Recruitment of large numbers of outside contractor workers is typically required to build, operate, and manage a site due to lack of supply and/or capacity of local labour pools.
Local service providers	SMEs from the formal sector with, or aiming to secure, contracts to provide goods and services to the site and its contractors.
Opportunistic migrants, job-seekers	Unskilled or skilled non-local in-migrants, seeking direct or indirect employment or entrepreneurial opportunities. Often skilled, experienced and mobile workers who travel from site to site in search of work. These are typically men.
Formal and informal potential providers of goods and services to the local population	Traders, entrepreneurs, small and medium enterprise owners, commercial sex workers, etc., from the formal and informal sectors, aiming to increase disposable income through provision of goods and services. New business opportunities can consist of hotels, guest-houses, restaurants, bars, etc.
Returning family, extended family members, and former residents of the area	Returnees attracted by the increase in (real or perceived) opportunities back home.
ASM and others seeking to exploit natural resources	Opportunists seeking to take advantage of increased accessibility and availability of resources through artisanal and small-scale mining.
Other opportunistic in-migrants	Sometimes in-migrants are attracted to expectations of compensation, improved infrastructure, SED projects, or other benefits offered by the site.

Potential benefits and adverse impacts from SIM

The potential economic benefits of SIM are substantial. The arrival of hundreds, sometimes thousands, of new people can act as a stimulus to local economies, sustaining existing businesses and creating new opportunities. Most obviously, land owners, hotels, shops, restaurants, bars and street traders all stand to gain.

Potential benefits of SIM include:

• Increased local skills base, wider labour pool, and employment creation as well as improved local training and skills development opportunities.
• Opening of new markets for local products and services and increased accessibility and availability of goods and services.
• Business development and alternative livelihood opportunities.
• Improved local wage and income levels.
• An increase in local tax revenue levels and therefore, in theory, improved public services and infrastructure.
• Increased political prominence and influence of the area.

Potential adverse impacts of SIM include:

• Competition for jobs, for markets, for housing and for resources.
• Local inflation.
• Tensions between local communities and in-migrants, particularly where the groups have distinctive cultures and lifestyles.
• Shortage in housing, water, electricity, education, and health services due to an increase in demand.
• Overuse of and damage to biodiversity, forests, and other natural resources.
• An increase in inequality, as SIM can amplify the gap between those who are benefitting from opportunities and those who aren’t.
• An increase in shanty towns or squatter settlements, often with poor hygiene and sanitation.
• The introduction of new diseases and an increase in the spread of disease, for example in areas with poor hygiene and sanitation.
• An increase in prostitution, gambling and crime as in-migrants are typically young men.
• Impacts on local power structures and decision-making approaches.

Lifecycle planning

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

In project development, when strategic decisions are being made in terms of land acquisition, local staffing and recruitment, and infrastructure, sites should plan to prevent and mitigate potential negative SIM impacts.

Most SIM tends to occur in the construction phase, when site employment levels are at their peak. Once construction is completed, some in migrants move out of the area while others stay.

Planning for closure – or social transition - should consider the reverse dynamic. As site employment opportunities dry up, large numbers of people may leave the local area.

Box 4G.2 provides a snapshot of when and how SIM relates to the different phases of an asset’s lifecycle. Note that the timing, level and nature of SIM can vary from site to site. In some cases, SIM may build up over the life of asset, in others it can happen quickly.

BOX 4G.2 Closure planning: Social transition

Potential for out-migration when operations cease should be assessed during operations and considered in social transition planning. If there is a local town highly dependent on the site the assessment should establish, in consultation with stakeholders, the viability of that town post-mining. For example, a town is less likely to be viable post-mining if there is no other significant employer in the area, few opportunities for local businesses, and insufficient users to sustain local infrastructure and services due to predicted population decline. The outcomes of the assessment should be considered when defining social transition success criteria and post-mining land use options (see Tool 1 of the MCT). Actions required to address potential impacts related to out-migration at social transition should be detailed in the relevant operational management plans (e.g. Site-Induced Migration Management Plan, SMP and SED Plans) and integrated into the Mine Closure Plan to the appropriate level of detail depending on years remaining to closure.

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¹ Projects and People: A Handbook for Addressing Project-Induced In-Migration’ International Finance Corporation (IFC)