Oyu Tolgoi Project Social Impact Assessment (SIA), The Ivanhoe Mines Mongolia Inc., January-October 2009, Khanbogd, Bayan-Ovoo, Tsogttsetsii, Manlai, and Dalanzadgad soums, Umnugobi aimag
The objectives of the social impact assessment (SIA) were to assess the social and economic impacts and consequences environmental impacts likely to follow from developing the Oyu Tolgoi and other mining projects in the OT Project area and analyze all aspects that affect people.
· The study has produced a subset set of the Baseline study, focusing on the OT project areas
· Identified the potential positive and negative impacts within OT Project areas
· Developed a Social and Environmental Management Plan
· Organized community workshops in the Dalanzadgad and Khanbogd soums
· Collected data for the use in SIA at the soum level covering four soums around the Oyu Tolgoi project
· Identified potential impacts including socio-economic aspects of environmental impacts and resettlement issues that have now been and may yet be generated by mining operations and other related activities
· Recommended measures, which may be undertaken by the mines to mitigate such impacts.
The impacts of the OT project on local development will be mostly positive. These impacts may occur in all spheres of local economic and business development. However, local governments will need to act transparently and in a consultative way with the contributors and resident communities to maximize these positive impacts. It was found that the expectations amongst local communities to supply the mines with agricultural products and other services remain high and need to be managed in an efficient manner. This means that the OT Project’s local purchase policy will be important for local business development, progress and prosperity. A fair and equitable policy, especially with incentives and assistance to local businesses, will have a major positive effect in the local economy. Expectations of local communities to share mine infrastructure are high.
Employment is an area where direct, positive impacts of the Project can be observed. The impacts associated with employment will result from all phases of Project activity with a peak during the construction and operation phases in particular. The benefits of project-generated employment include (i) increased employment for locals, (ii) increase in household income, iii) indirect employment, and (iv) skills development for locals. Besides these direct and positive impacts, there might be some indirect and negative concerns, which are: (i) disaffection among locals at outsiders taking jobs, ii) conflicts between locals and outsiders, and iii) the gender impact on labor force participation.