In 2007, TFM completed an Environmental and Social Impact Assessment (ESIA) and Feasibility Study for the purposes of mining the Kwatebala, Tenke and Kavifafwaulu ore bodies. Only the development of the Kwatebala ore body, Phase I, was covered in the scope of the original ESIA. Phase I of the mine included a resettlement program of three villages (379 households), which was completed in 2009. In addition, over 1,000 individuals were identified as economically displaced, largely due to the acquisition of farmland for the project footprint, and provided with replacement farmland and livelihood restoration support activities. TFM developed a Resettlement Action Plan (RAP) based on DRC law (compensation requirements), and international best practices, including the Equator Principles and International Finance Corporation Performance Standards. The Freeport-McMoRan Community Policy requires projects to follow international best practices for any involuntary resettlement impacts.

In 2010, TFM commenced working on an addendum to the 2007 ESIA, which included an expansion of the TFM plant and mining operations to the Tenke-Fwaulu ore deposits (Phase II). The addendum was completed in early 2011 and identified additional physical resettlement impacts to 70 households. The TFM RAP Unit, with the support of consultants, are also in the process of completing an assessment of the economic displacement impacts (loss of farmland) associated with the Phase II Expansion, which will be added as an addendum to the RAP.

For the Tenke-Fwaulu RAP, 70 households (resident homeowners) were identified as eligible for physical resettlement which includes provision of a replacement home. Five of these households from the Mwela Mpande hamlet were successfully resettled at the end of 2011 due to their proximity to expansion operations which have commenced. The rest of the eligible households will be moved to the new resettlement village (Jolie Site) during the course of 2012. In addition to the 70 resident homeowners, 30 tenants were identified in the RAP and were given a rental allowance to enable them to find new homes to rent. There were also 38 homes/buildings under construction or abandoned that were identified within the resettlement zone. Their owners were compensated with plots of land and building supplies. Twenty-three non-resident landlords were also compensated for their assets. In total, 161 households or approximately 573 individuals were affected by the Tenke-Fwaulu RAP.

In accordance with DRC law, Project Affected Persons (PAPs) are compensated for their existing assets at full market value plus 50 percent. In order to comply with international best practice (IFC Performance Standard 5), TFM also provides like for like replacement of an asset with equal or better standard. In the case of "physical displacement," affected PAPs are provided new houses of a significantly better quality and value. Households are also provided with a moving allowance and are compensated for any lost assets, farmland, trees, and any crops as well as assistance to restore their livelihoods to the same (or better) standard as before resettlement.

Where displacement is "economic" (i.e. where people's livelihoods are impacted but not necessarily their physical residence), TFM provides compensation for lost crops at market value plus 50 percent as per DRC law. TFM also provides new land of an equal or better standard and livelihood restoration support (seeds and fertilizer) for a period of three years.

In addition, TFM commits to ensuring improved access to public services (health, education). For the Kwatebala RAP, this involved constructing a new school for each of the three resettled villages and two health posts for remote villages without healthcare access. Clean water wells and household latrines were also constructed in each resettlement village. For the Tenke-Fwaulu RAP, although no school was displaced, TFM is constructing extra classrooms at the existing school near the new resettlement village so that the children from resettled households will be able to attend the nearest school. The community will also have access to the new Tenke health center which was recently constructed and expanded to replace an older facility that had limited capacity.

TFM continues to engage regularly with the PAPs via consultation committees established for each resettlement community. There also is ongoing interaction with the TFM RAP Unit and TFM Community Liaison Officers. Together, these teams communicate messages from TFM as well as receive input, questions, concerns and grievances from the community. The largest number of grievances received are related to economic displacement resulting from land acquisition for development of the mine and supporting infrastructure. Any grievances received are recorded in the grievance system and assigned for follow-up investigation and action. For grievances that cannot be resolved between TFM and the complainant directly, TFM is in the process of establishing a mediation committee with participation of external stakeholders. This mediation structure is planned for implementation in 2012.

TFM also conducts internal and external monitoring of RAP implementation, including an annual third-party audit. The audit process has confirmed that TFM has mainly met its commitments as outlined in the RAP, but livelihood restoration remains an ongoing challenge. The RAP audit has provided recommendations for improving RAP implementation. Based on the outcome of the most recent audit, in 2012 the TFM RAP Unit will work to engage with relevant departments to improve and upgrade the mine planning process in order to minimize the effect of land acquisition both in terms of surface area and timing within the agricultural year. This will help ensure minimum disturbance to people's livelihoods and to food security within the concession.

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