“With a binding offtake arrangement in place for Chilalo’s coarse flake material, completion of the RAP is an important milestone as we advance our efforts to secure project finance for the development of Chilalo," MD Phil Hoskins said.
Evolution Energy Minerals Ltd (ASX:EV1) is a step closer to the development of its Chilalo Graphite Project after the Government of Tanzania approved its Resettlement Action Plan (RAP) for the communities living in the area.
The RAP is a process to assess land and property values for the relocation of the Ambye, Lukowe and Nangurugai communities. Since it began in November 2021, Evolution has had extensive discussions with and received strong support from the communities.
Together with the binding offtake agreement and the pending framework agreement with the Government of Tanzania, Evolution is now strongly positioned to secure project finance.
“Important milestone”
“We recognise that working together with the local communities is the foundation for the successful development of our Chilalo Project. From the outset, we committed to going beyond the minimum legislative requirement and meeting IFC standards. Applying such an approach, not only delivers the best possible outcome for local communities but enhances Evolution’s social license to operate,” Evolution managing director Phil Hoskins said.
“There is clear demonstration of continued support for the development of Chilalo, not only from the local communities, but also from the Tanzanian Government. Such support will assist the company in successfully developing the Chilalo Project.
“With a binding offtake arrangement in place for Chilalo’s coarse flake material, completion of the RAP is an important milestone as we advance our efforts to secure project finance for the development of Chilalo.”
Relocation and compensation
All 'project-affected persons' (PAPs) will be relocated to properties with enhanced amenities, and compensation will include a five-year livelihood restoration program that consists of several initiatives targeted at delivering sustainable benefits such as:
- conservation agriculture (permaculture) – supply of materials, training and ongoing coaching and mentoring to promote the development of sustainable sesame, maize and legume agriculture among the local communities;
- tree nurseries – propagation of alternative cashew trees for distribution to PAPs and provision of training and mentoring to support local communities in the development of cashew tree farms;
- vegetable program – establishment of a vegetable nursery to produce seedlings to assist in the development of vegetable farms and the provision of vegetable gardens with wells, tread pumps and seedlings in a large number of new dwellings;
- youth skills training program – skills training for local youths, focused on brick laying and carpentry, as part of the construction of relocation dwellings, with a view to such youths being employed as part of construction and operations at Chilalo; and
- Livelihood Restoration Centre (LRC) – an important community resource that has the following features: a shade structure, fully equipped greenhouse, water wells, an exhibition compound and two trucks.
Evolution has also completed several studies on how best to deliver the RAP, including a first-ever health impact assessment for the area, a water availability study, a cultural heritage study, vulnerable persons assessment, human rights impact assessment, and a local biodiversity and ecosystem impact assessment. Proactive