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Article

9 Oct 2024

Author:
Compliance Advisor Ombudsman (CAO), (IFC)

Joint statement [outlining the key elements of the settlement]

The participants in the final mediation session included members of the Area One community; representatives from SAG; non-governmental organizations representing the Area One Community, including Les Mêmes Droits Pour Tous (MDT), Centre du Commerce International pour le Développement (CECIDE) and Inclusive Development International (IDI); and an observer from the International Finance Corporation (IFC).

Over the six years of mediation and constructive dialogue, several interim agreements were signed between the parties and were either fully or partially implemented. These include:

1. Water (2019); 2. Schooling (2019); 3. Human Rights, Consultation and Information (2019); 4. Compensation and Livelihoods (2019); 5. Rental Allowances (2022); 6. Market (2022); 7. Health post (2023); 8. Roads (2024).

The final agreement includes the following terms:

1. SAG will make a payment in full and final settlement of the dispute. A portion of the total settlement amount will be provided directly by SAG to the affected families for individual compensation owed as a result of the resettlement process, and the remaining funds will be used to establish a Sustainable Development Fund for the purposes of financing projects aimed at improving the livelihoods and living standards of the Area One community.

2. The complainants will establish structures within ARMA (Association of the Resettled Community of the Area One Gold Mine), a community based organisation, to identify and manage sustainable projects in the interest of all Area One affected families.

3. The parties jointly requested, and IFC has agreed in principle, to provide technical support for the identification and assessment of the feasibility of these projects.

4. A Monitoring and Advisory Committee comprising the partner NGOs, and with SAG as an observer, will be established to review ARMA’s project proposals, and to support and monitor project implementation.

5. The Fund will be held in a fiduciary account while ARMA, with the support of its NGO partners, puts in place a sound financial system to control the money that is disbursed from the Fund and until project proposals are developed.

6. In the interests of full transparency and the parties’ commitment to good governance, the parties agreed that SAG would hire an independent auditor to audit the Fund for the first two years of its implementation.

7. In addition to the financial settlement, SAG will continue to fulfil its remaining or ongoing commitments in relation to the interim agreements signed between 2019-2024. This includes completing work at the Area One primary school and market, repairs to the health post, and dust suppression on the main roads and upgrading the drainage system.

8. SAG reaffirmed its commitments to cooperate in any judicial investigations related to allegations of human rights abuses within SAG’s area of operations; to timeously disclose mining exploitation plans for the area in a manner accessible to those who may be affected by those plans; and, if further resettlement is necessary to implement these mining plans, to engage in a transparent and meaningful process of informed and participative consultation with affected communities, aligned to IFC Performance Standard 5, and the principles of Free, Prior and Informed Consent (FPIC) as detailed in the IFC Performance Standard 7.

9. The complainants agreed that this agreement represents the full and final settlement of all issues pertaining to their complaint to the CAO. CAO will monitor implementation of the final agreement for two years. The parties commended the IFC for its participation, as an observer, in the entire mediation process. The mediation of the final agreement was held in a friendly atmosphere and in good faith. The parties reaffirmed their commitment to sustain collaboration and good relations for the future...