The Provincial People's Committee                      Nui Phao Mining Joint Venture
        of Thai Nguyen                                            Company




                 NUI PHAO MINING PROJECT
                              DAI TU DISTRICT
                        THAI NGUYEN PROVINCE


               RESETTLEMENT ACTION PLAN




                                      Prepared by

                     Nui Phao Mining Joint Venture Company Limited

                                    (Nuiphaovica)



                                                                            July, 2006

Nui Phao Mining Project                         Resettlement Action Plan                                                      Final 20-Jul-06



                                          TABLE OF CONTENTS


CHAPTER 1. INTRODUCTION.....................................................................................................1

  1.1     Background .......................................................................................................................1
  1.2     Nui Phao Mining Joint Venture Company........................................................................2
  1.3     Project Description............................................................................................................4
  1.4     Scope of this Document ....................................................................................................7
  1.5     Time Frame for Construction and Operation of the Project .............................................8

CHAPTER 2. LEGAL FRAMEWORK, POLICIES AND ENTITLEMENTS ..............................9

  2.1     Legal and Administrative Framework ..............................................................................9
  2.2     Land Law of the Vietnamese Government (2003)..........................................................10
  2.3     Decree 197/2004/ND-CP on Compensation, Assistance and Resettlement ...................13
  2.4     International Best Practice ..............................................................................................17
     2.4.1 Operational Directive OP 4.12: Involuntary Resettlement .........................................18
     2.4.2 Operational Directive OD 4.10: Indigenous People ...................................................19
     2.4.3 Operational Policy Note 11.03: Cultural Property......................................................19
     2.4.4 Equator Principles.......................................................................................................20
     2.4.5 Comparison of Internal, National and International Practices....................................20
  2.5     Corporate Policies of Nuiphaovica .................................................................................24
  2.6     Project Compensation and Resettlement Policies...........................................................25
     2.6.1 Compensation and Resettlement Objectives...............................................................25
     2.6.2 Project Affected Persons and Organisations (PAPs) ..................................................26
     2.6.3 Land and Asset Acquisition Principles .......................................................................26
  2.7     Eligibility.........................................................................................................................28
     2.7.1 Eligibility of Project Affected Persons .......................................................................28
     2.7.2 Eligibility Register ......................................................................................................30
  2.8     Entitlements.....................................................................................................................30

CHAPTER 3. SOCIO-ECONOMIC CONDITIONS.....................................................................39

  3.1     Methodology of the Socio-Economic Baseline Studies..................................................39
  3.2     Regional Socio-Economic Conditions ­ An Overview ..................................................41
     3.2.1 Thai Nguyen Province.................................................................................................41
     3.2.2 Dai Tu District.............................................................................................................42
     3.2.3 General Conditions......................................................................................................42
  3.3     Socio-Economic Conditions at the Project Area.............................................................44
     3.3.1 Settlement History.......................................................................................................44
     3.3.2 Demography................................................................................................................45
     3.3.3 Education.....................................................................................................................47
     3.3.4 Language.....................................................................................................................48
     3.3.5 Occupations and Livelihoods......................................................................................48
     3.3.6 Natural Resource Use..................................................................................................50
     3.3.7 Health Issues ...............................................................................................................50
     3.3.8 Infrastructure and Services..........................................................................................54
     3.3.9 Land Use .....................................................................................................................55
     3.3.10 Agriculture and Forestry .............................................................................................57
     3.3.11 Income and Expenditure .............................................................................................59
     3.3.12 Gender issues ..............................................................................................................62
  3.4     Socioeconomic Conditions at the Relocation Sites.........................................................63


Nuiphaovica, Vietnam                                                                                                                      Page i

Nui Phao Mining Project                     Resettlement Action Plan                                                      Final 20-Jul-06



     3.4.1 Demography................................................................................................................63
     3.4.2 Education.....................................................................................................................64
     3.4.3 Occupations and Livelihoods......................................................................................65
     3.4.4 Other Conditions.........................................................................................................66
  3.5     Businesses in the Project Area........................................................................................70
  3.6     Ethnic Minority Groups ­ a Specific Socio-Economic Assessment...............................70
     3.6.1 Overview of Ethnic Minorities Conditions.................................................................71
     3.6.2 General Conclusions and Recommendations..............................................................74

CHAPTER 4. CENSUS AND INVENTORY OF LAND ACQUISITION IMPACTS................76

  4.1     Census and Inventory Process.........................................................................................76
  4.2     Efforts to Minimise Land Acquisition and Resettlement................................................76
  4.3     Summary of Impacts .......................................................................................................77
     4.3.1 Project Affected Communities....................................................................................77
     4.3.2 Project Affected Households.......................................................................................77
     4.3.3 Land, Structures and People........................................................................................78
  4.4     Impacts of Land Acquisition in the Operational Area (445 ha)......................................79
  4.5     Impacts of Land Acquisition at Proposed Relocation Sites............................................83
  4.6     Affected Institutions and Public Infrastructure...............................................................85
  4.7     Impacts on Affected Businesses......................................................................................87
  4.8     Accuracy of the Census and Inventory and Follow up Steps..........................................87
     4.8.1 Detailed Measurement Survey....................................................................................87

CHAPTER 5. IMPACTS ON VULNERABLE GROUPS AND SPECIAL PROGRAMS ..........90

  5.1     Vulnerability in the Project Affected Areas....................................................................90
     5.1.1 Ethnic Minorities.........................................................................................................90
     5.1.2 Poor Families ..............................................................................................................90
     5.1.3 Women and Women Headed Households...................................................................91
     5.1.4 Elderly, Infirm, and Disabled......................................................................................91
  5.2     Impacts on Vulnerable Groups........................................................................................92
  5.3     Consultation with Local Authorities and Local Unions and Associations .....................93
  5.4     Activities and Programs to Assist Vulnerable Groups....................................................95

CHAPTER 6. ORGANISATIONAL ARRANGEMENTS ...........................................................99

  6.1     Nuiphaovica ....................................................................................................................99
  6.2     Thai Nguyen Provincial People's Committee (TNPPC)...............................................100
     6.2.1 Key Provincial Departments .....................................................................................101
     6.2.2 The Compensation Oversight Board (COB) and Provincial Advisory Team...........101
  6.3     Dai Tu District People's Committee (DTDPC) ............................................................102
  6.4     Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC)103
  6.5     Commune People's Committees...................................................................................104
  6.6     Project Affected Persons (PAPs) ..................................................................................104
  6.7     Key Responsibilities......................................................................................................105
  6.8     Staff Resources..............................................................................................................105

CHAPTER 7. RELOCATION SITES AND REPLACEMENT OF PUBLIC WORKS.............108

  7.1     Summary of Relocation Site Requirements and Impacts..............................................108
  7.2     Resettlement and Relocation Site Principles.................................................................108
  7.3     Process of Seeking and Approving the Relocation Sites ..............................................109
  7.4     Agricultural/Productive Land Loss and Potential of Replacement Land......................112
  7.5     Consultation and Participation for Proposed Relocation Sites .....................................113
  7.6     Relocation Site Selection ..............................................................................................116

Nuiphaovica, Vietnam                                                                                                                 Page ii

Nui Phao Mining Project                       Resettlement Action Plan                                                      Final 20-Jul-06



  7.7     Residential Plots............................................................................................................116
     7.7.1 Allocation of Residential Plots..................................................................................117
     7.7.2 Affordability Analysis on Purchasing Plots at Relocation Sites...............................119
  7.8     Site Planning and Development....................................................................................119
     7.8.1 Nam Song Cong Relocation Site...............................................................................119
     7.8.2 Xom Trai Relocation Site..........................................................................................120
     7.8.3 Hung Son No.3 Relocation Site ................................................................................120
     7.8.4 Hung Son No.2 Relocation Site ................................................................................121
     7.8.5 Khe Thuy Tinh Relocation Site.................................................................................123
     7.8.6 Long Lanh and Khe Vey Agricultural Sites (reserved) ............................................123
     7.8.7 Army Facilities Relocation Site (Tan Lap site).........................................................123
     7.8.8 Re-Arrangement of Households along New Segment of Road No. 37.....................124
  7.9     Detailed Design and Construction Progress..................................................................124
  7.10    Housing and Design......................................................................................................124
     7.10.1 Company Built Housing............................................................................................125
     7.10.2 Self-Built House Construction..................................................................................132
  7.11    Land Use Right Certificates and Building Ownership..................................................133
  7.12    Process of Compensation, Site Development and Allocation of Plots .........................133
  7.13    Implementation Details for Relocation Site Development ...........................................137
  7.14    Realignment and Replacement of Public Works and Affected Assets .........................139
  7.15    Environmental and Other Conditions at Relocation Sites.............................................141
     7.15.1 Background ...............................................................................................................141
     7.15.2 Environmental Impact Assessment...........................................................................142
     7.15.3 Key Monitoring Parameters......................................................................................143
     7.15.4 Treatment Facilities...................................................................................................144
     7.15.5 Key Results of EIAs Completed to Date...................................................................145
     7.15.6 Risk Assessment Summary.......................................................................................146
  7.16    Cost of Relocation Site Development...........................................................................146

CHAPTER 8. ECONOMIC AND LIVELIHOOD RESTORATION MEASURES ...................147

  8.1     Background ...................................................................................................................147
  8.2     Summary of Key Economic Activities and Associated Impacts ..................................147
  8.3     Eligibility and Entitlements for Restoration Programs .................................................150
  8.4     Consultation and Identifying Potential Activities and Program ...................................151
     8.4.1 Initial Proposed Program Options for Economic Restoration...................................154
  8.5     Detailed Planning for Economic Restoration Activities...............................................155
  8.6     Land-Based Programs and Initiatives ...........................................................................158
     8.6.1 Re-Establishment of Agricultural Activities.............................................................158
     8.6.2 Agricultural Extension and Related Programs..........................................................159
  8.7     Employment and Procurement Opportunities...............................................................160
  8.8     Skills Enhancement and Training Activities.................................................................161
  8.9     Assistance for Small and Medium Enterprises .............................................................161
  8.10    Off-Farm Income Generation Activities.......................................................................162
     8.10.1 Garment Manufacturing............................................................................................162
     8.10.2 Programs for Handicraft Manufacturing...................................................................163
  8.11    Money Management......................................................................................................166
  8.12    Cost of Economic and Livelihood Restoration Programs.............................................167

CHAPTER 9. CONSULTATION AND PARTICIPATION.......................................................168

  9.1     Objectives......................................................................................................................168
  9.2     Public Consultation and Disclosure Plan......................................................................169


Nuiphaovica, Vietnam                                                                                                                  Page iii

Nui Phao Mining Project                       Resettlement Action Plan                                                      Final 20-Jul-06



  9.3     Resettlement Action Plan Development Consultation..................................................169
     9.3.1 Phase I: During Surveys for the Interim Resettlement Action Plan..........................169
     9.3.2 Phase II: For final RAP (November 2004 to April, 2005)........................................172
     Consultation with vulnerable groups (with local authorities and unions).............................173
     Consultation for seeking replacement land and approving relocation sites..........................173
     Replacement of public works, affected assets of institutions ...............................................173
  9.4     Ongoing Compensation and Resettlement Activities ...................................................174
     9.4.1 Project Brochures and Information Booklets............................................................176
     9.4.2 Other Consultation and Disclosure Mechanisms......................................................177

CHAPTER 10.           COMPLAINTS SETTLING.........................................................................180

  10.1    Disclosure of Complaints Procedures...........................................................................181

CHAPTER 11.           MONITORING AND EVALUATION ........................................................182

  11.1    Objectives......................................................................................................................182
  11.2    Internal Monitoring.......................................................................................................182
     11.2.1 Monitoring Methodology and Process......................................................................182
     11.2.2 Indicators and Information Management..................................................................183
     11.2.3 Monitoring Reports...................................................................................................184
  11.3    Independent Evaluation.................................................................................................184
     11.3.1 Evaluation Methodology and Process.......................................................................184
     11.3.2 Auditors.....................................................................................................................186
     11.3.3 Evaluation Reports....................................................................................................186

CHAPTER 12.           IMPLEMENTATION AND SCHEDULE ...................................................187

  12.1    Procedures of Compensation and Relocation ...............................................................188
     12.1.1 Procedure of Compensation......................................................................................188
     12.1.2 Procedure of Resettlement to New Relocation Sites.................................................188
     12.1.3 Procedure of Self-Relocation....................................................................................189

CHAPTER 13.           COSTS AND BUDGET ...............................................................................190

  13.1    Overview.......................................................................................................................190
  13.2    Legal Basis....................................................................................................................190
  13.3    Calculation of Costs and Compensation .......................................................................191
  13.4    Detailed Cost Estimate..................................................................................................194
  13.5    Contingency Allowance................................................................................................201




Nuiphaovica, Vietnam                                                                                                                  Page iv

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06




                                       LIST OF TABLES

Table 2.1        The Main Differences between the OP 4.12 on Involuntary Resettlement and
                 National Resettlement Policies and Legislation

Table 2.2        Entitlement Matrix for the Different Affected Categories

Table 3.1        Number of Households Surveyed in the Affected Villages and Proposed Relocation
                 Sites

Table 3.2        Key Characteristics of the Four Communes in the Project Area

Table 3.3        Periods of Settlement

Table 3.4        Size of Surveyed Households

Table 3.5        Age Distribution of the Surveyed Population

Table 3.6        Marital Status of Households

Table 3.7        Ethnicity (Unit = person)

Table 3.8        Religious Affiliations

Table 3.9        Education Levels Attained

Table 3.10       Main Occupations

Table 3.11       Secondary Occupations

Table 3.12       Domestic Water Resources

Table 3.13       Common Diseases

Table 3.14       Causes of Diseases According to Respondents

Table 3.15       Treatment of Diseases

Table 3.16       Public and Private Health Care Services

Table 3.17       Sources of Electricity

Table 3.18       Land Use in the Project Area

Table 3.19       Economic Activities of Households in Project Communes

Table 3.20       Monthly Income Per Capita

Table 3.21       Annual Household Income and Main Activities

Table 3.22       Annual Average Expenditure


Nuiphaovica, Vietnam                                                                      Page v

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



                                  LIST OF TABLES (Cont.)


Table 3.23       Borrowing and Loan Status of Households in the Project Area

Table 3.24       Male and Female Headed Households

Table 3.25       Period of Settlement in Dai Tu District

Table 3.26       Age Distribution of Surveyed Population

Table 3.27       Education and Training Levels

Table 3.28       Main and Secondary Occupation of Interviewed Household Heads

Table 3.29       Common Disease Frequency

Table 3.30       Average Income Per Capita per Month of Interviewed Households

Table 3.31       Average Expenses of 46 Interviewed Households

Table 3.32       Borrowing and Loan Status of Households at Relocation Sites

Table 3.33       Key Information and Comparison of Ethnic Minorities versus the Total Population

Table 4.1        Summary of Project Impacts due to Land Acquisition

Table 4.2        Households and their Assets in the Operational Area by Sector

Table 4.3        Summary of Households and their Assets in the Operational Area

Table 4.4        Impacts on Land by Administrative Units (Communes)

Table 4.5        Land Acquisition Impacts by Proposed Relocation Sites, New Site for Army
                 Facilities and New Cemeteries

Table 4.6        Affected Public Works and Collective Assets

Table 5.1        Vulnerable Groups Affected by the Project Operational Area

Table 5.2        Vulnerable Groups Affected by Relocation Sites

Table 5.3        Meetings with Key Stakeholders for Affected Vulnerable Group Issues

Table 5.4        Financial and Other Assistance for the Vulnerable Families

Table 5.5        Initial Proposed Special Assistance Programs for Vulnerable Groups

Table 6.1        Key Activities and Responsible Organisations




Nuiphaovica, Vietnam                                                                        Page vi

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06



                                  LIST OF TABLES (Cont.)


Table 6.2        Staffing and Working Facilities for Resettlement Action Plan Implementation

Table 7.1        Potential Sites Surveyed for Relocation

Table 7.2        Meetings and Site Visits Concerning Replacement of Land

Table 7.3        Residential Land Compensation Preferences

Table 7.4        Agricultural Land Compensation Preferences of Affected Households

Table 7.5        Affected Households' Choice of Relocation Sites

Table 7.6        Residential Plots Available at the Selected Sites for Relocation

Table 7.7        Common basic characteristics of different house designs

Table 7.8        Estimated pricing matrix for different housing options offered

Table 7.9        House Construction Preferences

Table 7.10       Schedule for Nam Song Cong Site 500 Standard Plots At 125 m2 Each, Market
                 Centre, and a Workshop for Handicraft Manufacturing In Hung Son 2

Table 7.11       Schedule for Hung Son 3 (roughly 112 standard plots of 300 m2 each) and Xom
                 Trai (around 200 plots of 300 m2 each)

Table 7.12       Schedules for Khe Thuy Tinh (around 80 standard plots of 400 m2 each and Hung
                 Son 2 (roughly 125 standard plots of 300 m2 each)

Table 7.13       Public Works and Social Services to be Compensated/Reconstructed

Table 8.1        Land Use Status in the Main Project Affected Communes

Table 8.2        Impact on Productive Land in the Project Affected Area and at the Proposed
                 Relocation Sites

Table 8.3        Affected Land in the Project Operational Area (by sectors)

Table 8.4        Monthly Income per Head in the Project Area

Table 8.5        Options for Off-Farm Activities and Affected Households' Choices

Table 8.6        Preference for Other Kinds of Assistance

Table 8.7        Results of Second Round of Consultation (In Order of Preference)

Table 8.8        The Proposed Programs for Economic Restoration/Rehabilitation

Table 8.9        Main Activities and Responsibility for a Pilot Handicrafts Program for 250 people

Nuiphaovica, Vietnam                                                                           Page vii

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



                                  LIST OF TABLES (Cont.)


Table 8.10       Main Activities and Responsibilities for a Pilot Program for 18 People

Table 9.1        Meetings with key stakeholders for the development phase of the compensation
                 and resettlement program

Table 9.2        Second round of compensation and resettlement consultation and disclosure

Table 9.3        Summary of compensation and resettlement public meetings to the end 2005

Table 9.4        Summary of compensation and resettlement public meetings, to date 2006

Table 11.1       Monitoring aspects and indicator areas

Table 12.1       Schedule for Resettlement Action Plan Preparation and Implementation

Table 13.1       Unit Prices for Houses (by Class)

Table 13.2       Unit Price Examples for Miscellaneous Assets

Table 13.3       Unit Prices for Residential and Garden Land

Table 13.4       Unit Prices for Agricultural Land, Crops and Trees

Table 13.5       Summary of the Cost Estimate for the Nuiphaovica Resettlement Program




Nuiphaovica, Vietnam                                                                         Page viii

Nui Phao Mining Project               Resettlement Action Plan            Final 20-Jul-06



                                     LIST OF FIGURES

Figure 1.1       Project Location Map

Figure 1.2       Project Operational Area

Figure 6.1       Institutional Chart

Figure 7.1       Example of Proposed House Designs at Relocation Sites

Figure 7.2       Relocation Site Development Process

Figure 7.3       Compensation Process and Transfer to Relocation Sites




Nuiphaovica, Vietnam                                                             Page ix

Nui Phao Mining Project              Resettlement Action Plan    Final 20-Jul-06




                                    LIST OF ANNEXES


Annex A          Example Consultation Questionnaire

Annex B          Poster on Economic Restoration Programs

Annex C          Compensation Payment Procedure Leaflet

Annex D          Complaints Action Form

Annex E          Complaints Procedure Poster




Nuiphaovica, Vietnam                                                    Page x

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



                         ABBREVIATIONS AND ACRONYMS


BARD                    Bank for Agriculture and Rural Development

BOC                     Building Ownership Certificate

COB                     Compensation Oversight Board

CPC                     Commune People's Committee

C&R                     Compensation and Resettlement

CWG                     Commune Working Group

DONRE                   Department of Natural Resources and Environment

DOF                     Department of Finance

DOC                     Department of Construction

DARD                    Department of Agriculture and Rural Development

DDPC                    Dai Tu District People's Committee

DDCARC                  Dai Tu District Compensation, Assistance and Resettlement Committee

F/S                     Feasibility Study

GOV                     Government of Vietnam

HH                      Household

IRAP                    Interim Resettlement Action Plan

Nuiphaovica             Nui Phao Joint Venture Company

NGOs                    Non-governmental Organisations

MARD                    Ministry of Agriculture and Rural Development

MOI                     Ministry of Industry

MONRE                   Ministry of Natural Resources and Environment

MPI                     Ministry of Planning and Investment

LURC                    Land Use Right Certificate

PAP                     Project Affected Person

RAP                     Resettlement Action Plan


Nuiphaovica, Vietnam                                                                      Page xi

Nui Phao Mining Project              Resettlement Action Plan        Final 20-Jul-06



                      ABBREVIATIONS AND ACRONYMS (Cont.)



RIB                     Resettlement Information Booklet

SEBS                    Socio-Economic Baseline Survey

TNPPC                   Thai Nguyen Provincial People's Committee

TOR                     Terms of Reference

VND                     Vietnamese Dong

USD                     United States Dollar

WU                      Women's Union




Nuiphaovica, Vietnam                                                        Page xii

Nui Phao Mining Project              Resettlement Action Plan                     Final 20-Jul-06



                                      REFERENCES


Aker Kvaerner E&C Ltd. 2005. Nui Phao Project ­ Final Feasibility Study. Prepared for Nui Phao
     Mining Joint Venture Company.

Development Research and Consultancy Centre (DRCC). October 2005. Nui Phao Mining Project
     ­ Study On Ethnic Minorities. Prepared for Nui Phao Mining Joint Venture Company
     Limited.

Havers, L and Giancarlo, C. 2004. Draft. Nuiphao Gender Study: Ensuring Sustainability of
     Livelihoods in Rural Vietnam. Mount Royal College. Calgary, Alberta.

Nuiphaovica. 2004. Nui Phao Tungsten, Fluoride, Bismuth, Copper and Gold Mining Project ­
     Environmental Impact Assessment Report. Prepared in conjunction with the Centre for
     Industrial Environment (CIE) and based on various Knight Piésold reports.

Nuiphaovica. 2006. Nui Phao Mining Project ­ Public Consultation and Disclosure Plan. Prepared
     for Nui Phao Mining Joint Venture Company Limited.

Knight Piésold. 2006. Nui Phao Mining Project ESIA/ESAP ­ Environmental and Social Impact
     Assessment (Volume II). Prepared for Nui Phao Mining Joint Venture Company Limited.

Knight Piésold. 2006. Nui Phao Mining Project ESIA/ESAP ­ Environmental and Social Action
     Plan (Volume III). Prepared for Nui Phao Mining Joint Venture Company Limited.




Nuiphaovica, Vietnam                                                                    Page xiii

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06



                                DEFINITION OF KEY TERMS


Census

Is a data collection technique for recording enumeration of all Project Affected Persons and their
assets through a household questionnaire, detailed survey and cadastral map review.

The census objectives are:

        · To prepare a complete inventory of affected households and their assets as a basis for
            compensation;

        · To identify non-entitled persons; and

        · To minimise the impact of a later influx of "outsiders" to the Project area.

Compensation

Compensation includes the process of financial or material reimbursement for Project Affected
Persons who lose partial or absolute value of their assets as a result of the Project. Compensation
also includes the valuation and reimbursement in monetary terms or in kind of financial and
physical losses as a result of impacts of the Project.

Complaint Procedures

Procedures that set out the time frame and mechanism for the resolution of complaints from
affected people concerning compensation and resettlement issues. `Grievance redresses' can be
provided through informally-constituted local committees with representation from key
stakeholder groups. Grievances can also be addressed through formal channels, with unresolved
grievances being dealt with at progressively higher levels between the government and Company.

Cut-off Date

The cut-off date is the date which the local authorities have officially announced, and informed
the affected people of the proposed Project and its land take area and requested people not to build
new houses or plant perennial trees. After the cut-off date, no other affected persons or
households will be included in the inventory, which lists all potential affected persons and
households, and their associated baseline information. People who move residences or business
assets into the area after the cut-off date are not entitled to compensation under this policy
framework. The cut -off date for the Project is May 12, 2004.

Compensation is based on the land and assets confirmed and calculated at the time compensation
is to be paid and therefore, affected households that have made adjustments according to their life-
cycles in the period after the cut-off date will be compensated accordingly for such assets.




Nuiphaovica, Vietnam                                                                          Page xiv

Nui Phao Mining Project                   Resettlement Action Plan                          Final 20-Jul-06



Household (HH)

Household (HH) is defined as the number of people living in one structure.

Involuntary Resettlement

Involuntary resettlement is associated with a development project which results in unavoidable
resettlement where the people affected have no option but to rebuild their lives, income and asset
bases elsewhere.

Land Use Right Certificated (LURC)

A Land Use Right Certificate (LURC) is similar to a title granted to people/households to legalise
their use of the lands and/or houses they occupy.

Operational Area

The operational area is the area to be used for all operational sectors such as the open pit, plant
site, tailings storage facilities, settling pond, disposal sites etc. and includes a buffer zone needed
for safety reasons with respect to the operations and the environment. The total operational area
for the Project is currently 445 ha. The operational area is made up of six operational sectors,
which relate to different components of the mine facilities and buffer zones and associated
construction phase scheduling.

Project Affected Ethnic Minority People

Ethnic People are defined as people who belong to a minority tribal group affected in part or in
total (temporarily or permanently) by the Project due to acquisition of their land, dwellings,
disturbance of their place of work, and other Project-related adverse impacts.

Project Affected Persons (PAP)

Project Affected Persons (PAP) include the person or persons, household, organisation, private or
public institution identified by the baseline information collected for this Resettlement Action
Plan (RAP) who, on account of execution of the Project, have experienced or would experience
direct economic and social impacts caused by:

         · The involuntary taking of land, resulting in:

             o Relocation or loss of shelter;
             o Loss of assets or access to assets; or
             o Loss of income source or means of livelihood, whether or not such person must
                 move to another location.
    Or
         · The involuntary restriction of access to legally designated parks and protected areas,
             adversely impacting the livelihood of such person.


Nuiphaovica, Vietnam                                                                               Page xv

Nui Phao Mining Project                 Resettlement Action Plan                           Final 20-Jul-06



Rehabilitation (and Restoration)

Rehabilitation means providing assistance to Project Affected Persons, due to the substantial or
entire loss of productive assets, income, employment or sources of living, through supplementing
the compensation paid to acquire assets in order to improve, or at least achieve full restoration of
living standards to pre-Project levels.

Replacement Cost

With regard to land and structures," Replacement Cost" is defined as follows:

    a) For agriculture land: it is the pre-project or pre-displacement (whichever is higher), market
        value of land of equal productive potential or use located in the vicinity of the affected
        land, plus the cost of preparing the land to levels similar to those of the affected land, plus
        the cost of any registration and transfer taxes.

    b) For residential land and land in urban areas: it is the pre-displacement market value of land
        of equal size and use, with similar or improved public infrastructure facilities and services
        and located in vicinity of the affected land, plus the coast of any registration and transfer
        taxes.

    c) For houses and other structures, it is the market cost of the materials needed to build a
        replacement structure with an area and quantity similar to or better than those existing
        structures, or to repair a partially affected structure, plus the cost of transporting building
        materials to the construction site, plus the cost of any labour and contractor fees, plus the
        cost of any registration and transfer taxes. In determining the replacement cost,
        depreciation of the asset and the value of salvage materials are not taken into account, nor
        is the value of benefits to be derived from the Project deducted from the valuation of an
        affected asset.

    d) Crops, trees and other perennials based on current market value:

         (i)     Compensation for annual crops is equivalent to the production over the last three
                 years multiplied by the market price for agricultural products at the time of the
                 calculation of the compensation; and

         (ii)    Compensation for trees includes total investment costs plus production costs from
                 the time of its planting to the expropriation. In case this cost cannot be determined,
                 the compensation will be calculated on the basis of the type, age and productive
                 value.

    e) Other assets (i.e. income, cultural, aesthetic) based on replacement cost or cost mitigating
        measures. For example, compensation for the movement of graves includes all
        expenditures for exhumation, movement and reconstruction to its original state.



Nuiphaovica, Vietnam                                                                             Page xvi

Nui Phao Mining Project               Resettlement Action Plan                           Final 20-Jul-06



Resettlement

Resettlement refers to all measures taken by the Project to mitigate any and all adverse social
impacts of a Project on the affected people, including compensation for lost assets and income and
provision of other entitlements, income rehabilitation assistance and relocation, as needed.

Socio-Economic Baseline Survey

The Socio-Economic Baseline Survey was carried out in order to prepare a profile of the affected
people and surrounding communities and to prepare this Resettlement Action Plan. Households in
the Project area were surveyed through a household questionnaire and/or interview process.

The survey results have been used to:

       · Assess income, identify productive activities, and plan for income restoration;

       · Develop relocation options, compensation packages and entitlement policies; and

       · Develop the social preparation phase for vulnerable groups.

Vulnerable People (or Groups)

Vulnerable groups include those distinct groups of people who might suffer disproportionately or
face the risk of being marginalised by the effects of resettlement, and specifically include:

    a) Poor families, identified as including:

       (1) Veteran households who receive regular social welfare payments;

       (2) Households that fall under the Ministry of Invalids and Social Affairs (MOLISA)
            poverty standards and national survey results; and

       (3) Households without security of tenure or with tenure status, or poor existing house;

    b) Ethnic minorities;

    c) Mentally and physically handicapped people or people in poor physical health; and

    d) Infants, children and women headed households.




Nuiphaovica, Vietnam                                                                           Page xvii

Nui Phao Mining Project               Resettlement Action Plan                       Final 20-Jul-06



                                 EXECUTIVE SUMMARY


1.     Introduction

The Nui Phao Tungsten, Flourite, Bismuth, Copper and Gold Mining Project (the Nui Phao
Mining Project) is a proposed open pit polymetallic mining project and mineral processing
operation in northern Vietnam. The Project is located within the Dai Tu district of Thai Nguyen
province. The site is approximately 80 km northwest of the capital Hanoi and about 150 km south
of Vietnam's northern border with China.

Nuiphaovica plans to commence development activities in early 2007 in anticipation of ramping
up to full-scale mining operations in late 2008. As such, there has been a significant amount of
planning and engineering accomplished to date.

The Final Feasibility Study was completed in July 2005 (Aker Kvaerner, 2005). The development
of the Resettlement Action Plan was initiated by Nuiphaovica in 2003 and an interim
Resettlement Action Plan was prepared in October 2004 through extensive consultation with local
and regional stakeholders. A final Resettlement Action Plan was subsequently completed by
Nuiphaovica and approved by the Thai Nguyen authorities in September 2005.

This Resettlement Action Plan is a result of updates made in mid 2006 to the approved
documentation to demonstrate Nuiphaovica's commitment to presenting an integrated assessment
of compensation and resettlement impacts, risks, proposed mitigation measures and action plans
to both national and international standards. It has been prepared to address World Bank Group in
conformance with the Extractive Industries Review process.

The Project will be owned and operated by Nui Phao Mining Joint Venture Company Ltd
(Nuiphaovica). There are three parties to the Company: Tiberon Minerals Limited (Tiberon),
Canada, and two provincial Vietnamese partners, Thai Nguyen Mineral Company (TNMC), a
state owned company, and Thai Nguyen Export-Import Investment Company (INTRACO), a
private Vietnamese company. Tiberon has the majority ownership and is the lead investor in
Nuiphaovica.

2.     Project Description

The Nui Phao Mining Project will be an open pit mine producing tungsten and fluorspar
concentrate as primary products with copper concentrate together with a gold credit as a
secondary product. A bismuth concentrate will be produced as a minor product. The Project is a
conventional open pit mining and bulk flotation mineral processing circuit.         Major Project
components include:

       · An open pit mine;

       · Waste rock disposal facilities;


Nuiphaovica, Vietnam                                                                      Page xviii

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06



       · Modern mine plant and facilities, including a crushing plant, grinding, thickening,
            flotation, and gravity recovery;

       · A tailings storage facility (TSF) with water management ponds; and

       · Ancillary facilities, including buffer zones, haul roads, accommodation facilities, and
            mine services, as well as relocation sites households affected by land acquisition.

The area required for the mine site and ancillary facilities is the `operational area' which is made
up of six operational sectors and is approximately 445 ha. The remaining area required for
Project development relates to relocation sites and replacement land for households affected by
land acquisition. Approximately 56 ha has been designated for residential relocation sites. Those
presently living on these lands will be required to relocate in order to develop the mine. The Thai
Nguyen province notified potentially affected residents in May 2004 that it intends to acquire land
under the provisions of Government of Vietnam Decree 197/2004 ND-CP on compensation,
assistance and resettlement.

The Project will contribute to the economy of Dai Tu district by developing and operating a
tungsten/fluorspar mine in the district. Expected benefits will include direct and indirect
employment opportunities, international recognition of Vietnam as having a world class metallic
mineral deposit, and investment in the local area, district and wider province.

3.     Scope and Objectives of This Document

The purpose of the Resettlement Action Plan is to:

       · Identify and measure the impact of the Project on the people who live and work on
            land in the project and the surrounding areas;

       · Present policies to deal equitably with the Project Affected Persons (PAPs);

       · Develop compensation, relocation and rehabilitation measures that will enable the
            affected people to re-establish their lives on an equal or preferably better-than-before
            basis;

       · Prepare a detailed cost estimate of all measures required to achieve the successful
            implementation of the compensation and resettlement program;

       · Identify the responsibilities of the various parties that are to implement the plan; and

       · Provide an opportunity for affected households and other stakeholders to be consulted
            on the plans and provide meaningful input into the design of the overall program.

The Resettlement Action Plan has been prepared jointly by the staff of the Nuiphaovica and the
Dai Tu district authorities under the direction of the Compensation Oversight Board which was
established by the Thai Nguyen province.


Nuiphaovica, Vietnam                                                                          Page xix

Nui Phao Mining Project               Resettlement Action Plan                           Final 20-Jul-06



4.      Legal Framework, Policies and Entitlements

Institutional and Legal Framework

This Resettlement Action Plan is based on the relevant laws of Vietnam, the policies of
Nuiphaovica and relevant international standards and guidelines on involuntary resettlement.

There is a mandated process for land recovery that is determined by the State and through which
the land acquisition for the Project will be achieved. Responsibility for administering this process
in Vietnam on behalf of the State lies with the provincial authority. The Project falls within the
Thai Nguyen province and therefore the land acquisition process for the Project will be
administered by the Thai Nguyen Provincial People's Committee, the highest administrative unit
within the province.

The key legal instruments of the State regarding land acquisition and associated compensation,
assistance and resettlement include: the Land Law (2003) of the Vietnamese Government which
describes laws relating to land ownership, tenure and transfer; and Decree 197/2004/ND-CP of
December 03, 2004 on compensation, assistance and resettlement when land is recovered by the
State. Relevant provincial policies on compensation, assistance and resettlement are also in place
and supplement the State level decrees, circulars and decisions.

There is no private land ownership in Vietnam as specified by the Land Law (2003) and land is
the property of the people as a whole and is managed by the State. Legal rights to use the land are
represented through a "land use right certificate" known as a `red book'. While individuals and
business entities do not officially "own" the land, land use certificates can be bought and sold as if
they were the land title.

Nuiphaovica's compensation and resettlement program is designed to meet Vietnamese legislation
but is also guided by the provisions of international standards, particularly the World Bank Group
policy on involuntary resettlement OP 4.12, and therefore, all differences identified for this
Project are bridged by the Company's compensation and resettlement policies. Nuiphaovica's
compensation and resettlement policies include provision for compensation at "replacement cost"
and also for providing financial and technical assistance to affected people to support economic
and livelihood restoration.

Project Resettlement Policies

The Project resettlement policies were developed by Nuiphaovica from May to June, 2004 and
approved by Thai Nguyen Provincial People's Committee on March 22, 2005. This policy
framework is based on Vietnamese regulations, and international requirements on involuntary
resettlement including World Bank Group policy OP 4.12.

The principal objectives of the Project resettlement policies are to ensure that all Project Affected
Persons will be compensated for their losses and provided with rehabilitation measures to assist



Nuiphaovica, Vietnam                                                                            Page xx

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



them to at least restore or otherwise improve their living standards to pre-project and income
earning ability.

Every effort is made by the Company and local authorities to minimise resettlement, displacement
and use of productive land. Where it is not feasible to avoid resettlement, resettlement activities
should be conceived and executed as sustainable development programs.

Sufficient investment resources will be provided to enable Project Affected Persons to share in
Project benefits. They are to be meaningfully consulted and will have opportunities to participate
in planning and implementing the compensation and resettlement program.

The compensation measures to be provided by Nuiphaovica include in both cash and/or in kind
compensation for houses and other structures at full replacement costs acceptable to affected
households.

Eligibility and Entitlements

Those eligible for compensation, relocation and/or rehabilitation assistance include:

        · All those living in the Project operational area;

        · All those not living in the Project operational area, but with land or other assets in the
            area;

        · All those living and/or working land at the relocation site areas; and

        · All those otherwise adversely affected by the Project.

In order to be eligible under the above, persons must occupy the land prior to May 12, 2004
(which was the "Cut-Off Date" designated and notified to the people by the province). Lack of
legal rights or documentation will not bar affected people from eligibility or entitlements. The
basis for establishing eligibility is the socio-economic baseline survey and in particular the
detailed measurement survey initiated in 2004 and to be formally updated and confirmed during
the resettlement program implementation. The detailed measurement survey for calculation of
compensation packages and to initiate the land recovery process began in November 2005 and is
ongoing. The Dai Tu District Compensation, Assistance and Resettlement Committee (DDCARC)
will maintain an eligibility register which will be managed on an ongoing basis to take account of
births and deaths, changes in ownership status and other relevant lifestyle changes of affected
households.

The entitlements to those who are eligible are summarised as follows:

        · Compensation for houses on the basis of full replacement value.

        · Compensation for lost agricultural land in cash based on the market value or land for
            land with the same productive capacity;


Nuiphaovica, Vietnam                                                                         Page xxi

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06



        · Compensation for lost crops and trees;

        · Residential house plot in a fully-serviced relocation site and cash where applicable for
            the balance of the value of their existing property;

        · Cash allowances to cover the transition period;

        · Vulnerable groups to receive special assistance;

        · Income and livelihood restoration measures for those whose productive land and/or
            business is severely affected; and

        · Skills training for those who wish to participate in vocational training opportunities.

An entitlement package will be prepared for each household, and opportunity will be provided to
discuss its adequacy and negotiate on a range of options relating to relocation site choice,
economic and livelihood restoration assistance and compensation mode. Community
infrastructure and public works will be replaced to an as-before or higher standard, or
alternatively cash compensation will be paid at replacement cost without deduction for
depreciation to owners.

5.      Project Impacts

Measures to Minimise Land Acquisition

Considerable efforts have been made by Nuiphaovica and local authorities in order to minimise
land acquisition and socially adverse impacts including:

        · Limiting the operational area to only 445 ha (from a total investment license of over
            920 ha) of which only about 305 ha will be acquired for the operation;

        · Farming is expected to be able to continue on the remaining approximately 140 ha of
            land that will be acquired by the Project as the residents have to be moved purely for
            safety reasons;

        · Minimising the public works, land and assets of institutions to be affected, including
            efforts not to have to relocate tea processing plants, gas stations and a forestry
            enterprise office etc;

        · Proposing relocation sites in predominantly agricultural areas of low productivity; and

        · Developing three new cemeteries on public land or a small parcel of land acquired
            from individuals.

With these efforts the total number of affected households has been reduced from 1,556
households to 1,153 households.




Nuiphaovica, Vietnam                                                                        Page xxii

Nui Phao Mining Project                Resettlement Action Plan                          Final 20-Jul-06



Impacts to Land, Structures and People

Presently, the area of the proposed mine is by and large used for agriculture. Many farm dwellings
are located near the lands that are being worked. The main impact of the Project is on the people
that now inhabit the area. The communes of Ha Thuong, Hung Son and Tan Linh are partially
affected by the mine footprint, known as the operational area. The commune of Ha Thuong is
most severely affected, followed by Hung Son and then Tan Linh. Phuc Linh commune is located
downstream of the operational area and may be affected as a result of neighbouring Project
activities.

The communes of Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu are affected by
proposed relocation sites and/or replacement agricultural land. It is noted that the proposed
relocation site of Xom Trai is located in Bin Thuan commune, however at the time of writing it is
unlikely that this site will be developed due to lack of interest from affected households.

Affected households can be classified as `resident households' including those whose residential
land and structures are affected and `non-resident households' that are affected by agricultural
land loss only but are not physically displaced.

According to the census and inventory undertaken in the third quarter of 2004, there are 1,153
households who will be affected by the 445 ha of the Project operational area. The number of
persons living in these households is 4,276 persons, or on average 3.7 persons per household.
Since some of the households only have land in the area, the number of households that need to be
physically relocated is somewhat smaller at 793 households, with 2,942 persons.

The total area of land to be acquired for five feasible residential relocation sites, including a site
for economic restoration activities is about 56 ha. The number of households affected by the
acquisition of these relocation sites is 637 households with a population of 2,600 persons, of
which 83 households with 331 people will lose both their land and house, while the balance will
lose agricultural land only. Almost all the land of the relocation sites is agricultural land, for
which compensation will be paid on the same basis as for the land acquired for the project
operations.

The number of households to be affected by the land acquisition for the re-establishment of
cemeteries (in Ha Thuong commune) and the army facility site (in Cat Ne commune) is 120
households with 588 people, and of these only 8 households will have their buildings affected.

Thus, there are a total number of 1,910 households affected with a population of 7,464 persons, of
which 884 households have to be physically relocated to, or re-arrange their houses at the
relocation sites.

Considering the portion of productive land loss to total area of holding by affected households,
only those affected people occupying agricultural land in the operational area and in the proposed
relocation sites are considered severely affected. The agricultural land acquired for the operational


Nuiphaovica, Vietnam                                                                          Page xxiii

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06



area plus the five relocation sites is about 347 ha, and on average this is 0.21 ha per household.
The total number of households affected by loss of productive land is 1,026 households.

About 15 percent of the affected population is non-Kinh (ethnic minorities); and there is one
Catholic community in Ha Thuong commune. There are also other vulnerable groups that will be
affected such as poor families, ethnic minorities and women headed households. Public works
and social infrastructure will also be affected, including:

       · A segment of National Road No. 37 (2.64 km);

       · A segment of railway to Nui Hong coal mining deposit and associated controlling
            house (2.7 km);

       · A segment of 35 kv (2.5 km) and 0.4 kv transmission lines (6.64 km) and 03
            substations;

       · A segment of TELECOM lines (overhead and underground: 5.2 km and 3.5 km
            respectively);

       · Army storage/facilities (K10 under management of KV3);

       · INTRACO (private business) land and other assets;

       · Markets, village cultural halls, schools, and a prayer house of the Catholic community;

       · Cemeteries; and

       · Farm irrigation systems (9.3 km).

These public works will be compensated in cash to the community or replaced in kind to previous
or better service levels, in close cooperation with the local authorities and communities. Thirty-
seven affected households run small businesses, generally along the National Road No. 37 that
will be realigned. These businesses are small retail outlets selling drinks and snacks and are
usually one of a number of sources of household income for these families.

6.     Organisational Arrangements

Nuiphaovica has assembled a team of compensation and resettlement specialists to prepare and
implement this Resettlement Action Plan. Nuipahovica staff work closely with local officials,
consultants and affected people and other stakeholders. The compensation and resettlement team
and other relevant Nuiphaovica staff will continue until the Resettlement Action Plan has been
fully implemented and the resettlement program is considered complete.

The Thai Nguyen Provincial People's Committee has established the Compensation Oversight
Board (COB), which is an advisory team of senior officials, and the Dai Tu District
Compensation, Assistance and Resettlement Committee (DDCARC) to specifically oversee and
implement the compensation and resettlement program for the Nui Phao Mining Project. These

Nuiphaovica, Vietnam                                                                       Page xxiv

Nui Phao Mining Project               Resettlement Action Plan                         Final 20-Jul-06



bodies include members of key departments such as the Department of Natural Resources and
Environment (DONRE), Department of Agriculture and Rural Development (DARD),
Department of Construction (DOC), Department of Finance (DOF), religious boards, the
Provincial Newspaper, Thai Nguyen Broadcasting, Nuiphaovica and others.

Commune Working Groups have also been formed in the three main affected communes of Ha
Thuong, Hung Son and Tan Linh, to help with the preparation and implementation of the
Resettlement Action Plan. These working groups participate in key activities such as detailed
measurement surveys, and include representatives of affected households and organisations, to
ensure that they are directly involved in the implementation and monitoring process.

Nuiphaovica is committed to providing support to the various agencies and committees set up at
commune, district and provincial levels. As such, the Company ensures that guidance is provided
to its partners and the capacity available to develop and implement the compensation and
resettlement program to meet both national and international requirements.

7.      Relocation Site Development and Replacement Land

With the active participation of local government and affected households a number of feasible
relocation sites have been identified that can accommodate the affected people and their
requirements. Potential replacement land has also been identified by the Company and local
authorities (although far from existing lands) to offer to affected people should they wish to
choose land for land compensation. After various surveys, site visits, public meetings and debates,
the following sites were selected for relocation/replacement options:

        · Site #1 Nam Song Cong (residential site);

        · Site #2 Hung Son 2 (market centre and other economic restoration activities);

        · Site #3 Hung Son 3 (residential site);

        · Site #4 Xom Trai (residential site);

        · Site #5 Khe Thuy Tinh (residential site, with limited agricultural land available);

        · Site #6 Long Lanh (agricultural land);

        · Site #7 Khe Vey (agricultural land); and

        · Site #8 Army facilities relocation site.

There are four proposed residential relocation sites, one site for economic restoration activities
and three other sites (two for agricultural land and one site for the relocation of the army
facilities). There is also a small site for resettlement of the cemetery areas in Ha Thuong
commune. Households have a choice of which site they prefer and to date, while not all affected
people have given their preference, those that have, mostly indicate a preference for the more


Nuiphaovica, Vietnam                                                                         Page xxv

Nui Phao Mining Project                Resettlement Action Plan                            Final 20-Jul-06



urban site of Nam Song Cong. A number of the sites including Nam Song Cong are situated close
to Dai Tu town, and this is intended to assist those households who wish to make the transition
from a predominantly rural, agricultural environment to a somewhat more urbanised environment
and livelihood. Typically, groups of households will wish to move to the same site, to preserve
social and economic networks, and Nuiphaovica will make every effort to accommodate requests
to move families, social and other groups together. Those with houses now situated at relocation
sites that will be required to re-arrange their residences will be allocated plots on the same site.

The relocation sites will be provided with the entire required infrastructure according to local
standards. For each relocation site Nuiphaovica will provide housing, green space and community
facilities. Both water and waste treatment facilities which meet local and international standards
will be provided to ensure a safe water supply and minimal impact on the environment.
Nuiphaovica will assess each relocation site and replacement agricultural land options to ensure
that site conditions are suitable for residential and/or agricultural development from an
environmental and social standpoint.

Plot sizes will be no less than 125 m2 for the Nam Song Cong site and no less than 300 m2 for the
remaining sites. All plots will be provided with survey, construction permit and joint title to
husband and wife. The fees for certificates and permits will be paid by the Company. Relocation
plots will be made available at no cost to households who are vacating a plot with a value equal to
or less than the cost of providing the infrastructure at the new site. Those whose previous plot is
valued higher will receive the difference in cash. According to an initial affordability analysis and
comparison of expected compensation packages, all affected households will be able to purchase
plots at relocation sites.

The engineering and design of the relocation sites will commence immediately following
government approval of each site. Commencement of works at the Nam Song Cong site is
scheduled for July 2006, with a number of other sites to follow shortly thereafter.

Affected households who are eligible and choose to move to a designated relocation site have the
option to build their own house or to purchase a house that will be built by Nuiphaovica's
approved construction teams. Nuiphaovica has developed a series of proposed house designs to be
built at the different relocation sites. The housing options offered by Nuiphaovica represent a
range of different house types and costs to suit different plot sizes, family sizes and budgets of
affected families.

Nonetheless, the vast majority of households wish to construct their own house with the
compensation they receive for their previous house. Where families do opt to construct their own
houses they will still be able to use the house designs developed by Nuiphaovica and other
relevant support (if they choose) that would be offered to households who opt for Company built
houses. To ensure that affected families construct their houses and move in a timely manner,
compensation in cash for their buildings and other assets will be disbursed in instalments based on
the progress of construction of their new house.


Nuiphaovica, Vietnam                                                                            Page xxvi

Nui Phao Mining Project                Resettlement Action Plan                          Final 20-Jul-06



Households will also be given the opportunity to self-relocate to a site of their choice. Some may
wish to make arrangements with family members living in the vicinity, for instance the elderly.
Others may wish to construct a new house on land they purchase elsewhere. Self-relocating
households will be given a special allowance, as their actions will reduce the cost of developing
relocation sites.

8.      Economic and Livelihood Restoration Measures

Economic restoration is a critical element of resettlement, including for the Nui Phao Mining
Project. It is more challenging than the provision of relocation plots and the payment of
compensation for lost land. Most of the affected people will be losing their agricultural land and
their income generating potential will be impacted. While in most cases their holdings are small,
the land nonetheless provides basic income and food security. Efforts have been made to identify
replacement agricultural land close to the affected areas, but these have met with limited success.
Agricultural land is available in Cat Ne and Tan Linh communes, but they are far from the
existing places of land and therefore, affected households tend to prefer cash compensation rather
than in-kind land for land replacement. The reality in Vietnam is that replacement agricultural
land is almost impossible to find or secure.

Consequently, other means of generating household income have to be established. The local
population of the area is looking forward to employment at the mine. Nuiphaovica is committed to
employing suitable persons of both genders according to the labour force requirements, and will
train those who have shown aptitude via pre-screening. The estimated local labour requirements
for the mine will be approximately 400 ­ 450 persons. A large proportion of this labour force
could be supplied by the affected households and Nuiphaovica has a preferential employment
policy that gives priority to those eligible people affected by land acquisition and resettlement.

In addition to direct employment opportunities, there will be numerous opportunities to provide
products and services to the mine. Many of these can be provided by small businesses and the
Resettlement Action Plan proposes that such business opportunities be developed by the affected
population and has made budget allowances for this. A new market is proposed for Dai Tu town
where about 100 stallholders could ply their trade. This would be ideally suited to women and
young people and training in running a stall would be provided as well as credit for start-up
expenses. In addition to the market centre a handicraft workshop is proposed at the site and pilot
programs for toothpick manufacturing have already been implemented with a number of affected
people. A piliot program for handicraft manufacturing is scheduled for about 250 people during
late 2006 to coincide with development of the site. Wage labour opportunities in nursing, tire
repairs, mechanical services, electrical services, driving, information technology and other skilled
and semi-skilled professions have also been identified as potential economic restoration options.

The diversification of non-farm income generating activities as well as agricultural growth in the
area is necessary to ensure food security, especially for vulnerable relocated people and is
important to the enhancement of rural livelihoods and community resiliency. As such, the


Nuiphaovica, Vietnam                                                                         Page xxvii

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06



Company has initiated a range of land-based programs including a pilot program for 30 people to
improve tea production, and an animal husbandry program has also been identified for
implementation, which is of particular interest to elderly and other vulnerable affected persons
who may be less able to access other opportunities.

Vocational training will be central to wage labour opportunities, agricultural intensification
programs and other activities developed for economic restoration. Training will be provided for
those who are interested to learn new skills or upgrade their existing skills. Nuiphaovica seeks to
work with training partners who can offer an actual employment or business opportunity after
vocational training is completed. Nuiphaovica also requires its relevant partners to provide
guarantees of supervision and ongoing support for affected people that participate in the various
courses and programs.

To accordance with the objectives of the resettlement policies, assistance for livelihood
restoration and improvement will be offered to all affected families and employment opportunities
will be offered to severely affected households. For older members of the labour force, who are
less likely to embrace new skills or secure future prospects and for whom the above measures may
not be sufficient, additional assistance will be required. The Company has specifically identified
potentially vulnerable groups and has adopted a practice of special assistance and programs
(additional cash and in-kind support) for dealing with vulnerable people.         For the younger
members of the labour force, the new economic development of the area, stimulated by the
operation of the mine, should provide many opportunities for employment.

As part of the monitoring of the resettlement program, family income will be assessed to
determine the effect of their new situation after land acquisition and/or resettlement. Nuiphaovica
considers that the resettlement program is not completed until household income has been
restored to previous levels or higher. If the desired outcome materialises only in part, additional
measures will be proposed to enhance income earning opportunities and livelihood restoration.

9.      Consultation and Disclosure

Public Participation and Consultation

The Resettlement Action Plan has been developed in close consultation with local authorities,
local unions and affected people in order to maximise their participation in resettlement planning
and implementation. Local authorities, unions, and about 1,100 affected people have been
consulted through various channels. Initially consultations were carried out in two phases: (i) for
the Project resettlement policies and interim Resettlement Action Plan (from July to September
2004); and (ii) for the final Resettlement Action Plan (from November, 2004 to end of March,
2005).

After many meetings, surveys and associated events, stakeholders have provided feedback on the
draft Project resettlement policies, proposed relocation sites, compensation payment mechanisms,
compensation unit rates, and proposed programs of employment generation as well as gender


Nuiphaovica, Vietnam                                                                       Page xxviii

Nui Phao Mining Project               Resettlement Action Plan                          Final 20-Jul-06



issues and special assistance for vulnerable groups. Their feedback is integrated into the policies
and procedures set out in the Resettlement Action Plan.

Consultation with affected households and other stakeholders is ongoing and will continue
throughout the entire period of resettlement program implementation. Nuiphaovica staff engages
with affected households and local authorities on a daily basis and consults on a broad range of
issues. In doing so, the Company has built sound relationships with its host communities and
particularly those people who will be directly affected by land acquisition. The Company's policy
for its consultation and disclosure efforts is based on building trust and facilitating an open
exchange of information among stakeholders. To facilitate ongoing consultation and disclosure
on resettlement and other topics, a number of key mechanisms and activities have been
established by the Nuiphaovica. A Project Information Centre has been established in Dai Tu
town which contains up to date Project information and key resettlement and compensation
documents and is accessible to affected people and other stakeholders every day during the week.
The Project Information Centre also acts as a repository for stakeholder feedback and is the
central point for receiving and managing community complaints.

Local `information corners' have also been created in affected villages in order to bring Project
information directly to affected people. A `frequently asked questions' system allows affected
people and other stakeholders to raise questions directly with the Company and to obtain a timely
response. To date a number of compensation and resettlement questions and concerns have been
raised by affected people and responses have been provided and widely disseminated by
Nuiphaovica. A `local information network group' has also been set up and this group is made up
predominantly of people affected by land acquisition. The local information network group forms
part of Nuiphaovica's community liaison team and is designed to provide a grassroots approach to
information dissemination and local stakeholder involvement.

Information Disclosure

Beginning in late 2005 the Company initiated a comprehensive `information campaign' to build
on existing information dissemination activities. The Company has subsequently provided an
extensive array of materials to affected people, including but not limited to:

        · A Resettlement Information Booklet (including a summary of compensation and
            resettlement issues) that was prepared and distributed to all affected households during
            late 2006;

        · Posters and leaflets depicting proposed housing options and designs and relocation site
            development proposals;

        · A compensation payment procedure and details on compensation unit rates prepared
            and disseminated in the first quarter of 2006; and




Nuiphaovica, Vietnam                                                                         Page xxix

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06



        · Numerous posters and leaflets on economic restoration activities and options, results of
            pilot programs and ongoing lessons learned.

A series of other brochures, leaflets and posters on compensation and resettlement issues and
other topics has also been distributed and the information campaign is regularly supported with
new materials.

The Project resettlement policies were distributed to all affected communes and villages in late
March, 2005. A full interim Resettlement Action Plan was sent to the heads of the Compensation
Oversight Board and Dai Tu District Compensation, Assistance and Resettlement Committee and
a summary was also sent to each member for their review and comments. The compensation unit
costs were also publicised at the local government offices of each affected commune. The final
approved Vietnamese Resettlement Action Plan was also made available at the offices of
Nuiphaovica in Hanoi and Dai Tu town, the Thai Nguyen Department of Natural Resources and
Environment, the Dai Tu district and all host communes in late 2005. Subsequent addendums and
updates, including this updated Resettlement Action Plan will be made available in relevant
format and arenas. Specifically, this Resettlement Action Plan will be made available at the World
Bank `InfoShop' and also on the Tiberon Minerals Limited website.

10.     Complaints Settling

Nuiphaovica is committed to addressing stakeholder concerns, complaints and grievances
regarding resettlement. During implementation of the compensation and resettlement program
complaints and grievances will be dealt with according to the approved steps agreed between the
relevant commune, district and provincial authorities and Nuiphaovica. Complaint settling is
managed by Nuiphaovica and will follow the established Company complaints system which
adheres to these agreed steps.

Complaints procedures including `complaint action forms' and instructions have been widely
disseminated within local communities and are available to the general public at the Project
Information Centre in Dai Tu town and at other locations. Nuiphaovica has initiated a complaints
documentation and management system that records complaints and enables them to be tracked
and resolved in a timely manner. Complaints are managed by the community liaison team and a
`complaints officer' has been designated.

Affected people and other stakeholders who have complaints will be treated fairly and quickly at
all levels. No administrative fees will be charged to process their complaints.

11.     Monitoring and Evaluation

The implementation of the Resettlement Action Plan will be internally supervised and monitored
by the Nuiphaovica resettlement team, as well as the Dai Tu District Compensation, Assistance
and Resettlement Committee and the appointed members of the Commune People's Working
Committees. The resettlement program will be monitored regularly with reports and


Nuiphaovica, Vietnam                                                                        Page xxx

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



recommendations set in motion and made publicly available as relevant. Nuiphaovica is
committed to providing quarterly monitoring reports during program implementation.
Outstanding issues will where necessary be brought to the attention of Nuiphaovica senior
management and the local authorities of Dai Tu district and Thai Nguyen province, in order to
make sure that policies and procedures set forth in this plan and under Vietnamese and
international requirements are adhered to.

Monitoring will be based on indicators of change relevant to compensation and resettlement and
will be based as much as possible on participation with affected households and communities. The
Company has a well established database of baseline and other information and this will be
expanded and used as a monitoring tool as the program is implemented.

An independent evaluation process has also been established and involves external auditors who
will review and monitor implementation of the Resettlement Action Plan. Emphasis of the
external evaluation will be on the livelihoods of affected people after resettlement. Terms of
Reference have been established for the evaluation process and review will occur at least twice a
year during implementation and then once a year after operations begin for a minimum of two
years. Evaluation reports will be completed by the independent evaluation team and will be made
publicly available as relevant.

12.    Implementation Schedule

The Resettlement Action Plan will be implemented in close association with the civil works which
will be carried out in the six operational sectors. Development of relocation sites commenced in
2005 including the detailed planning and engineering activities. The development of the
relocation sites will be the critical path because many plots have to be ready early to receive 224
affected households from the first two operational sectors. The affected households will be
relocated from the second half of 2006 onwards to about the end of 2007. Those relocating on
schedule will receive a special bonus.

Under the Project resettlement policies and the Land Law (2003), households cannot be required
to vacate their land and home until compensation has been paid in full and a relocation site is
ready to receive them. Payment of compensation has commenced as the Resettlement Action Plan
has been formally approved by the Provincial People's Committee and Nuiphaovica. Nuiphaovica
aims to make advanced compensation payments to affected households in order to ensure that any
disruption to income and economic well-being is minimised.

The development of economic restoration opportunities need to be executed concurrently with
compensation payments, land acquisition and actual resettlement to ensure that gaps in household
income generation are avoided after the loss of agricultural land and other assets. A series of
economic restoration programs, training and associated activities have been in progress since
April 2005 and a number of successful pilot programs are now in place. Development and
implementation of economic and livelihood restoration activities will continue throughout the


Nuiphaovica, Vietnam                                                                        Page xxxi

Nui Phao Mining Project                  Resettlement Action Plan                     Final 20-Jul-06



resettlement program implementation phase and continue as necessary into post relocation,
expected by early 2008.

13.     Costs and Budget

The total cost for developing and implementing the Resettlement Action Plan is estimated to be
VND 413,502,796,189 which is equivalent to US$26.75 million1 (including a 3.15 million
contingency for unforeseen expenditures). This cost estimate includes the replacement cost of
compensation for land and structures, economic rehabilitation measures, relocation site
development, transition period allowances. Resettlement costs account for approximately
15 percent of the total Project costs.

The compensation and resettlement program costs in US dollars by broad categories are as
follows:

       · Boundary demarcation and detailed measurement surveys                0.06 million

       · Compensation for residential land                                    6.92 million

       · Compensation for agricultural land                                   3.56 million

       · Compensation for houses and other fixed assets                       3.86 million

       · Compensation for crops, fruit trees and other trees                  1.47 million

       · Acquisition and development of relocation sites                      3.40 million

       · Replacement of public infrastructure and cemeteries                  0.58 million

       · Economic rehabilitation/restoration programs                         2.37 million

       · Transition allowances and special assistance programs                1.20 million

       · Local government management (excl. of Nuiphaovica costs)             0.18 million

       · Contingency costs                                                    3.15 million

                                                                    Total   26.75 million


Additionally, a cost of US$ 2.57 million has been estimated for the relocation of the military
depot currently located within the Project area. The cost estimate of land and assets to be
compensated in 2006 and 2007 have been calculated using the unit price which was issued in late
2004. These unit costs are being updated by the provincial authorities and as such, a contingency
of 15 percent has been applied to the compensation package. In addition, a 10 percent contingency
has also been applied to remaining items of the compensation and resettlement budget to allow for
potential unforeseen expenditures.




1Based on an exchange rate of VND 15,800 per USD.

Nuiphaovica, Vietnam                                                                      Page xxxii

Nui Phao Mining Project              Resettlement Action Plan                         Final 20-Jul-06



14. Conclusions

The Resettlement Action Plan for the Nui Phao Mining Project will evolve over the period of
implementation and in spite of a great deal of planning not everything can be known at this time.
Careful surveys have been conducted to determine the affect on the population concerned.
Relocation sites have been identified and screened and the first two sites are being planned.
Policies to deal fairly and equitably with the population involved have been adopted by the
province and Nuiphaovica. The commune leaders and residents have been in consultation since
the start of resettlement planning. Cost estimates have been prepared and institutional
arrangements are in place.

Nonetheless, the efforts required to compensate, relocate and rehabilitate the affected population
should not be underestimated. Experience has shown that resettlement is always difficult, time-
consuming, and stressful to the participants. The Nui Phao Mining Project will not be an
exception in this regard. Through the resettlement planning process and early implementation
efforts, Nuiphaovica has built sound relationships with the affected population, local, district and
regional authorities and other stakeholders. The Company aims to build on these relationships and
the affected population will continue to be meaningfully consulted and have opportunities to
provide input throughout the entire period of implementation.

This Resettlement Action Plan was prepared on the basis of the census and inventory of the
affected households and organisations in late 2004. The final number of the affected people,
organisations and their affected assets will only be fixed when the affected areas are clearly
marked on the ground. Therefore, the actual number of affected persons and organisations and
their affected land and assets may change slightly when the final Detail Measurement Survey for
each sub-compensation plan and area is completed.




Nuiphaovica, Vietnam                                                                      Page xxxiii

Nui Phao Mining Project               Resettlement Action Plan                        Final 20-Jul-06



                            CHAPTER 1.             INTRODUCTION

1.1 Background

The Nui Phao Tungsten, Flourite, Bismuth, Copper and Gold Mining Project (the Nui Phao
Mining Project or the Project) is a proposed open pit polymetallic mining project and mineral
processing operation in northern Vietnam. The Project is located within the Dai Tu district of Thai
Nguyen province. The site is approximately 80 km northwest of the capital Hanoi and about 150
km south of Vietnam's northern border with China. Figure 1.1 shows the approximate Project
location of the site in Vietnam.

Nuiphaovica plans to commence development activities in early 2007 in anticipation of ramping
up to full-scale mining operations in late 2008. As such, there has been a significant amount of
planning and engineering accomplished to date. Activities included in that planning were the
commencement of environmental and social baseline studies by Knight Piésold in 2001 (Knight
Piésold, 2002) and the development of a preliminary environmental impact assessment in 2003.
The Knight Piésold assessment established the basis for another environmental impact assessment
document that was prepared by the Vietnam Centre for Industrial Environment (Nuiphaovica,
2004), which was submitted to the Vietnamese government in 2004 and approved in February
2005. This approval allowed the issuance of the Mining License by the Ministry of Natural
Resources and Environment in June 2005. The Mining License gives Nuiphaovica the right to
mine the mineral resources at Nui Phao.

Nuiphaovica retained Aker Kvaerner in 2004 to develop a feasibility study to define the economic
viability of the Project based on the ongoing planning, engineering, and environmental efforts.
Inherent to the feasibility study process are the inevitable changes, updates, and improvements to
the engineering designs and plans. The Final Feasibility Study was completed in July 2005 (Aker
Kvaerner, 2005). At the same time, development of a Resettlement Action Plan (RAP) was
initiated by Nuiphaovica in 2003 and an interim Resettlement Action Plan was prepared in
October 2004 through extensive consultation with local and regional stakeholders. A final
Resettlement Action Plan was subsequently completed by Nuiphaovica and approved by the Thai
Nguyen authorities in September 2005.

With favourable feasibility study results and a valid Mining License, Nuiphaovica sought
financing for the Project in the international lending community and is seeking investment risk
guarantees from the Multilateral Investment Guarantee Agency (MIGA), a member of the World
Bank Group. The engineering and planning modifications that have occurred as the Project
evolved and the participation by new Project lenders and insurers resulted in the need to update
the environmental and social impact assessment and associated documentation that was approved
by the Vietnamese government.

This Resettlement Action Plan is a result of updates made to the approved documentation in mid
2006 to demonstrate Nuiphaovica's commitment to presenting an integrated assessment of


Nuiphaovica, Vietnam                                                                         Page 1

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



compensation and resettlement impacts, risks, proposed mitigation measures and action plans to
both national and international standards. It has been prepared to address World Bank Group
policies in conformance with the Extractive Industries Review process.

1.2 Nui Phao Mining Joint Venture Company

The Nui Phao Mining Project (the Project) will be owned and operated by the Nui Phao Mining
Joint Venture Company (Nuiphaovica). The Nui Phao Mining Joint Venture Company is
established pursuant to an investment license no. 2377/GP-BKH from the Ministry of Planning
and Investment (MPI), dated February 3, 2004. The parties to the joint venture Company are:
Tiberon Minerals Ltd. (Canada) and two provincial Vietnamese partners: Thai Nguyen Mineral
Company (TNMC), a state owned company, and Thai Nguyen Export-Import Investment
Company (INTRACO), a private Vietnamese Company. Tiberon has the majority ownership and
is the major investor in the joint venture.

Tiberon Minerals Limited is engaged in the business of exploration and mining of minerals in
Canada and Vietnam. Funds for project development and exploration are raised through equity
issuances of company shares in accordance with stock exchange and security regulations.

The Thai Nguyen Export-Import & Investment Company (INTRACO) is a limited liability
company with over two members. Its business registration certificate was granted on 10th July
2003 by the Thai Nguyen Department of Planning and Investment (DPI).

The Thai Nguyen Mineral Company is involved primarily in the mineral mining and
concentration business. It is a state owned company registered in Thai Nguyen province and under
the management of the Industrial Department of Thai Nguyen province. Business Certificate No.
110380 was granted on April 11, 1997 by the Thai Nguyen Department of Investment and
Planning. Nuiphaovica is registered in Thai Nguyen province with offices located near the mine
site in Dai Tu tow which is within Dai Tu district in Thai Nguyen province.




Nuiphaovica, Vietnam                                                                       Page 2

Nui Phao Mining Project    Resettlement Action Plan    Final 20-Jul-06



                                  Figure 1.1
                           Project Location Map




Nuiphaovica, Vietnam                                          Page 3

Nui Phao Mining Project                 Resettlement Action Plan                         Final 20-Jul-06



1.3 Project Description

The Nui Phao Mining Project will be an open pit mine producing tungsten and fluorspar
concentrate as primary products with copper concentrate together with a gold credit as a
secondary product. A bismuth concentrate will be produced as a minor product. The Project is a
conventional open pit mining and bulk flotation mineral processing circuit.

Major Project components include:

        · An open pit mine;

        · Waste rock disposal facilities;

        · Modern mine plant and facilities, including a crushing plant, grinding, thickening,
             flotation, and gravity recovery;

        · A tailings storage facility (TSF) with water management ponds; and

        · Ancillary facilities, including buffer zones, haul roads, accommodation facilities, and
             mine services, as well as relocation sites households affected by land acquisition.

The area required for the mine site and ancillary facilities is known as the `operational area',
consisting of 445 ha and made up of six operational sectors. The remaining area required for
Project development relates to the relocation sites for households affected by land acquisition.
Figure 1.2 shows the operational area, the main site components and the proposed relocation sites.

The Project area extends within the following communes in Dai Tu district:

        · Ha Thuong

        · Hung Son; and

        · Tan Linh.

Phuc Linh commune is immediately downstream of the Project and adjacent to some of the
facilities. In addition to the operational area required, there will be approximately five residential
relocation sites, including a market centre, agricultural and other areas (e.g. for cemetery re-
establishment and an army facility relocation site) within the district to accommodate those
households and public infrastructure required to move due to development of the mine. The
proposed relocation sites are located in Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu
communes. Key stakeholders include the residents and businesses of these communes, local
unions and associations and local, district and regional authorities.




Nuiphaovica, Vietnam                                                                            Page 4

Nui Phao Mining Project               Resettlement Action Plan                        Final 20-Jul-06



Some of the benefits expected from the Project include:

       · It will be recognised that Vietnam contains a world class metallic mineral deposit;

       · Vietnam will be recognised internationally as a leading supplier of tungsten and
            fluorspar;

       · The Nui Phao Mining Project has attracted a large international audience and its
            success will demonstrate to international mining companies that large-scale mining can
            be done in Vietnam;

       · More than 80% of the products will be exported to international markets;

       · Mining and metallurgical universities will be exposed to advanced and new
            technologies, benefiting education, training, and employment;

       · Downstream processing and spin-off industries related to the mine will be developed;

       · The Project will bring much needed sustainable economic development to one of the
            poorer and remote regions of North Vietnam;

       · The Project will be recognised as the largest Canadian investment to date in Vietnam;

       · Direct employment of approximately 450 Vietnamese people, mostly members of
            Project affected families;

       · Indirect employment generation and business opportunities for other local people;

       · Socio-economic development independent of the region and a contribution to Thai
            Nguyen province;

       · Project multipliers such as physical infrastructure and social services;

       · Potential to improve and expand the region's social, educational, and commercial base
            to assist the workforce and their families;

       · Creation of opportunities for local businesses during Project construction and during
            the sixteen years of production; and

       · Management of existing environmental contamination and wastes within the Project
            area.




Nuiphaovica, Vietnam                                                                         Page 5

Nui Phao Mining Project    Resettlement Action Plan     Final 20-Jul-06



                                     Figure 1.2
                            Project Operational Area




Nuiphaovica, Vietnam                                           Page 6

Nui Phao Mining Project               Resettlement Action Plan                         Final 20-Jul-06



1.4 Scope of this Document

This Resettlement Action Plan (this Plan) was specifically developed to demonstrate
Nuiphaovica's commitment to presenting and managing land acquisition and resettlement impacts
for the Nui Phao Mining Project. It includes commitments to engage affected communities
through effective public consultation and disclosure, and to manage and monitor implementation
of the resettlement program during relocation activities and for a reasonable time after economic
and livelihood restoration activities commence. This Plan has been developed by Nuiphaovica
with support provided by independent and international consultants. The compensation and
resettlement program process was initiated in 2003 and has been developed and updated to
incorporate ongoing Project development activities and changing local and national
circumstances.

Whilst the Resettlement Action Plan is considered a standalone document it is also included as
part of Nuiphaovica's Environmental and Social Action Plan as it acts as a `discipline specific'
action plan that takes the general plans presented for environmental and social management and
mitigation a step further by defining specific procedures, actions, and monitoring needed to
accomplish resettlement, compensation and associated tasks required by the Nui Phao Mining
Project. This Plan also defines the purpose, responsibilities, and the operational performance
criteria that are needed to monitor the effectiveness of its implementation. The commitments set
out in the Resettlement Action Plan are presented as follows:

        · Legal Framework, Policies and Entitlements;

        · Socio-Economic Conditions;

        · Census and Inventory of Land Acquisition Impacts;

        · Impacts on Vulnerable Groups and Special Programs;

        · Organisational Arrangements;

        · Relocation Site Development and Replacement of Public Works;

        · Economic and Livelihood Restoration Measures;

        · Consultation and Participation;

        · Complaints Settling;

        · Monitoring and Evaluation;

        · Implementation and Schedule; and

        · Costs and Budget.

Each of these topics is dicussed in greater detail throughout the remainder of the document.


Nuiphaovica, Vietnam                                                                          Page 7

Nui Phao Mining Project               Resettlement Action Plan                          Final 20-Jul-06



1.5 Time Frame for Construction and Operation of the Project

The proposed construction period for development of the Nui Phao Mining Project is
approximately 18 months (exclusive of resettlement related construction). Mine site construction
is scheduled to start in early 2007. An operational period of 16 years is ancitipated for the Project
scheduled to begin in late 2008 following successful plant commissioning and tailins dams
operations. More economically recoverable mineralisation may be defined during the life of the
mine as development and exploration work continues. Any expansion of the ore reserve would
extend the life of the mine and associated processing facilities.




Nuiphaovica, Vietnam                                                                           Page 8

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



CHAPTER 2.             LEGAL FRAMEWORK, POLICIES AND ENTITLEMENTS

2.1 Legal and Administrative Framework

This Resettlement Action Plan is prepared in accordance with the Project resettlement policies
and based on the relevant laws of Vietnam, the policies of Nuiphaovica and international
standards and guidelines on involuntary resettlement. Key laws, decrees of Government Circulars
of line Ministries and policies of the Thai Nguyen province on compensation, assistance and
relocation are as follows:

       · The Land Law of the Vietnamese Government, dated November 26, 2003;

       · Decree 181/2004/ND-CP of October 29, 2004 guiding the implementation of the Land
            Law 2003;

       · Decision No. 153/2004/QD-TTg of the Prime Minister dated August 17, 2004
            promulgating the strategy for sustainable development in Vietnam (Vietnam's Agenda
            21);

       · Decree 197/2004/ND-CP of December 03, 2004 on compensation, assistance and
            resettlement when land is recovered by the State;

       · Circular 116/2004/TT-BTC of December 7, 2004 guiding the implementation of
            Decree 197/2004/ND-CP on compensation, assistance and resettlement;

       · Decree 188/2004/ND-CP of November 16, 2004 on methods of determining land
            prices and assorted land price brackets;

       · Circular 114/2004/TT-BTC of November 26, 2004 guiding the implementation of
            Government Decree No. 188/2004/ND-CP on land prices and assorted land price
            brackets;

       · Decree 198/2004/ND-CP of December 3, 2004 on the collection of land use levies;

       · Decision No. 134/2004/QD-TTg of the Prime Minister on assistance policies to Ethnic
            Minorities; and

       · Compensation and resettlement policies of Thai Nguyen province namely:

            o Compensation unit costs for lands (Decision No. 2686/2004/QD-UB dated
                 November 14, 2004);

            o Compensation units cost for buildings (Decision No. 3234/2004/QD-UB dated
                 February December 24, 2004); and

            o Compensation units cost for trees and annual crops (Decision No. 2340/QD-UB
                 dated September 26, 2003; Decision No. 728/QD-UB dated April 13, 2004;


Nuiphaovica, Vietnam                                                                      Page 9

Nui Phao Mining Project                Resettlement Action Plan                          Final 20-Jul-06



                 Decision   No.   1290/HD-NN        dated    October   18,  2003;    Official   Letter
                 No. 238/VC-NN; Decision No. 701/QD-UB dated July 20, 1998; and Official
                 Letter No. 1036/HD-TCVG on guidance for implementing these decisions
                 2340/QD-UB).

In addition to the national legislation described, a number of key international standards and
directives related to resettlement and compensation have been considered for the Project.
Specifically, relevant policies and standards are those defined by the World Bank Group and also
the Equator Principles which in turn reference these standards:

        · World Bank Group Policies and Directives:

            o Operational Directive OP 4.12: Involuntary Resettlement;

            o Operational Directive OD 4.10: Indigenious People; and

            o Operational Policy Note OPN 11.03: Cultural Properties.

        · Equator Principles: voluntary principles that have been adopted by many private
            financial institutions to assess and manage environmental and social risk in project
            financing.

The pertinent elements of each of these legal instruments and standards is further described in the
following sections together with Nuiphaovica's corporate policies and in particular the
compensation and resettlement policies which were developed based on national and international
requirements in collaboration with Provincial and local authorities and stakeholders.

2.2 Land Law of the Vietnamese Government (2003)

A new Land Law was passed on November 26, 2003 by the XIth National Assembly of the
Socialist Republic of Vietnam at its 4th session. It became affective on July 01, 2004. A summary
of the articles most relevant to the Project are provided in box 2.1 below.


Box 2.1: Key Articles Related to Land Tenure and Transfer Systems under the Land Law

Article 5 - Land ownership

    1. Land belongs to the entire-people with the State acting as the owner's representative.

    2. The State exercises the right to dispose land as follows:

         a. To decide on land use purposes through deciding on, considering and approving land
             use plans (hereinafter referred collectively to as land use planning, plans);

         b. To stipulate land assignment norms and land use duration;

         c. To decide on land assignment, land lease, land recovery, and to permit the change of


Nuiphaovica, Vietnam                                                                           Page 10

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06




             land use purposes; and

         d. To set land prices.

    3. The State performs the regulation of benefit sources from land through land-related
        financial policies as follows:

         a. Collection of land use levies, and land rents;

         b. Collection of land use tax, tax on income from land use right transfer; and

         c. Regulation of land value increases not due to investment by land users.

    4. The State assigns land use rights to land users in the form of land assignment, land lease,
        recognition of land use rights for current stable land users; and prescribes the rights and
        obligations of land users.

Article 6 ­ State management over land

    1. The State performs the uniform management of land.

    2. The contents of the State management of land include:

         a. Promulgating legal documents on land management and use and organising the
             implementation thereof;

         b. Determining administrative boundaries, compiling and managing the administrative
             boundary dossiers, drawing administrative maps;

         c. Surveying measuring, evaluating and categorising land; drawing cadastral maps, land
             use status quo maps and land use planning maps;

         d. Managing land use planning and plans;

         e. Managing the land use assignment, land lease, land recovery, and change of land use
             purposes;

         f. Registering land use rights, compiling and managing cadastral dossiers, and granting
             land use right certificates (LURC);

         g. Making land statistics and inventories;

         h. Managing land-related finance;

         i. Managing and developing the land use right transfer market in the real estate market;

         j. Managing and supervising the performance of rights and obligations of land users;




Nuiphaovica, Vietnam                                                                         Page 11

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06




         k. Inspecting and examining the observance of law provisions on land and handling
             violations of land legislation;

         l. Settling land disputes; settling complaints and denunciations against violations in
             land management and use; and

         m. Managing land-related public service activities.

    3. The State adopts policies on investment in the performance of tasks of State management
        over land, builds up a modern and fully capable land management system, ensuring the
        effective and efficient management of land.

Article 7 ­ The State exercises the right of representing the entire-people-owner of land and
performs the uniform State management over land

    1. The National Assembly promulgates the Land Law, decides on land use planning and
        plans for the whole country; and exercises the supreme right to supervise the land
        management and use nationwide;

    2. The Government decides on land use planning and plans of the provinces and centrally-
        run cities and the plannings and plans on the use of land for defence and/or security
        purposes; and exercises the uniform State management over land throughout the country;

    3. The Ministry of Natural Resources and Environment (MONRE) is answerable to the
        Government for the State management over land;

    4. The People's Councils of all levels exercise the right to supervise the land management
        and use in their respective localities; and

    5. The People's Committees of all levels exercise the right to represent the land owner and
        perform the State management over land in their respective localities according to
        competence prescribed in this Law.

Article 8 ­ Rights and responsibilities of the Vietnam Fatherland Front, "the Front".



Land Ownership

There is no private land ownership in Vietnam as specified in the 2003 Land Law (including
Decree 181/2004/ND-CP guiding implementation of the land law). Land is the property of the
people as a whole and is managed by the government. Legal rights to land use are represented
through a land use right certificate known as a "red book." Residents of Vietnam can acquire the
certificate by purchasing it from other holders or through prolonged and continuous occupation
and use of land.




Nuiphaovica, Vietnam                                                                       Page 12

Nui Phao Mining Project                 Resettlement Action Plan                        Final 20-Jul-06



A foreign investor or company with foreign invested capital must procure a land use right by
formally leasing the land from the State. As such, while individuals and business entities do not
officially "own" the land, there is still a household wealth component on the land because the land
use certificates can be bought and sold as if it were the land title.

2.3 Decree 197/2004/ND-CP on Compensation, Assistance and Resettlement

Decree 197/2004/ND-CP of December 03, 2004 provides key articles on compensation, assistance
and resettlement when land is recovered by the State. A summary of the articles most relevant to
the Project are provided in box 2.2 below. Land acquisition for the Project will be achieved
through the mandated process for land recovery determined by the State.


Box 2.2: Key Articles Related to Compensation, Assistance and Resettlement

Article 4 ­ Resettlement of residences

Land users scheduled to have their land recovered by the State under the provisions of this
Decree must be resettled and compensated in one of the following ways:

    1. Compensation with dwelling house;

    2. Compensation with new residential land; and

    3. Compensation with money for acquiring new residences.

Article 6 (Item 2) ­ Persons who have land recovered shall be compensated with new land
having the same use purpose; if there is no land for compensation, they shall receive
compensation equal to the land use right value at the time of issuance of the recovery decisions;
in case of compensation with new land or houses, if there is any difference in value, such
difference shall be paid in cash.

Article 8 - Conditions for land compensation

Persons who have land recovered by the State shall receive compensation if they meet one of the
following conditions:

    1. People with the land use right certificates according to the provisions of land legislation;

    2. People with the land assignment decisions of competent state bodies according to the
         provisions of land legislation;

    3. Households or individuals that are using land in a stable manner, with certifications from
         the Peoples Committee of communes, wards or townships (hereinafter collectively
         referred to as commune-level People's Committees) that such land is dispute-free; and




Nuiphaovica, Vietnam                                                                          Page 13

Nui Phao Mining Project                 Resettlement Action Plan                        Final 20-Jul-06




    4. Population communities that are using land on which exist structures such as communal
        houses, temples, pagodas, shrines, ancestral worshiping halls or family line worshiping
        temples and have certifications from the commune-level People's Committees where such
        exists that such land is used commonly for the communities and dispute-free.

Article 9 - Land prices for compensation calculations and remaining expenses invested in land

Land prices for compensation calculations are land prices set for the purpose for which the land
in question is being used at the time of issuance of land recovery decisions and publicised by the
provincial-level People's Committees in accordance with the Government's regulations.

Compensation shall not be made according to the price of land set for the new purpose to be
shifted to.

Cases of delayed compensation are prescribed as follows:

        · If delays in compensation are caused by agencies or organisations responsible for
             compensation and the land prices at the time of compensation publicised by the
             provincial-level People's Committees are higher than those at the time of issuance of
             the recovery decisions, compensation shall be made at the land prices at the time of
             payment of compensation money; if the land prices at the time of compensation are
             lower than those at the time of issuance of the recovery decisions, compensation shall
             be made at the land prices at the time of issuance of the recovery decisions; and

        · For delays in compensation caused by persons who have land recovered, if the land
             prices at the time of compensation are lower than those at the time of issuance of the
             recovery decisions, compensation shall be made at the land prices at the time of
             compensation; if the land prices at the time of compensation are higher than those at
             the time of issuance of the recovery decisions, compensation shall be made at the land
             prices at the time of issuance of the recovery decisions.

Article 10 - Compensation, assistance for agricultural land of households and individuals

Households and individuals using agricultural land to be recovered by the State shall be
compensated with land with the same use purpose; if there is no land for compensation, they
shall receive monetary compensation calculated at the price of land having the same use purpose
as prescribed in Clause 1, Article 9 of this Decree (above).

For agricultural land lying intermixed with residential areas, and garden and pond land lying
adjacent to residential areas, apart from compensation at the price of agricultural land having the
same use purpose, monetary assistance is also provided; the prices for calculation of assistance
shall be equal to between 20% and 50% of the prices of adjacent residential land; the specific
assistance level shall be decided by the provincial-level People's Committee.




Nuiphaovica, Vietnam                                                                          Page 14

Nui Phao Mining Project               Resettlement Action Plan                         Final 20-Jul-06




Article 13 - Compensation for non-agricultural residential land

If users of residential land must be relocated when their land is recovered by the State, they shall
receive compensation with new residential land, dwelling houses in resettlement areas or
monetary compensation if they so request, as suitable to the local realities.

Article 18 - Principles for compensation of property

Owners of property attached to land which is recovered by the State shall receive compensation
when their property suffers from damage.

Owners of property attached to land which is recovered by the State but is not eligible for
compensation shall receive compensation or assistance for their property on a case-by-case basis.

Houses and other works attached to land, which are built after the land use planning plans are
publicised and without permission of competent state bodies, shall not be compensated. Houses
and other works attached to land, rebuilt after July 1, 2004 but which at the time of building, run
against the land use purpose determined in the approved land use planning plan, shall not be
compensated.

Article 19 ­ Compensation for houses and works built on land

For dwelling houses, works in service of the daily life of households or individuals,
compensation equal to the value of the newly built house or works with equivalent technical
standards promulgated by the Construction Ministry shall be paid. The value of newly
constructed houses or works shall be calculated by multiplying the construction acreage of
houses or works by the new construction unit prices, which are prescribed by the provincial-level
People's Committees according to the Government's regulations.

For houses and other construction works which have been dismantled in part with the remaining
part being unusable, compensation shall be paid for the whole houses or works; for houses and
other construction works which have been dismantled in part but still exist with the remaining
part being usable, compensation shall be paid for the value of the dismantled part and for
expenses for repair and improvement of the remaining part up to the technical standards of the
houses or works before being dismantled.

Article 20 - For houses and other works built on land failing to meet all compensation conditions
prescribed in Article 8 of this Decree and, at the time of building, competent State bodies already
issued notices banning such buildings, neither compensation nor assistance shall be provided;
persons having such illegally built works shall be forced to dismantle such works or bear
dismantlement expenses if competent agencies organise the dismantlement.




Nuiphaovica, Vietnam                                                                         Page 15

Nui Phao Mining Project                Resettlement Action Plan                           Final 20-Jul-06




Article 24 - Compensation for cultivated plants and reared animals

The level of compensation for annual trees shall be equal to the value of the output of their crop.
The value of the output of a crop shall be calculated on the basis of the productivity of the
biggest crop in the last three years of the major cultivated tree in the locality and the average
price at the time of land recovery.

The level of compensation for perennial trees shall be equal to the existing value (exclusive of
the land use right value) of the orchard, calculated at the local price at the time of land recovery.

Article 27 - Relocation assistance

If households must be relocated within a province or city or to another province or city when the
State recovers land, they shall each receive a maximum assistance of VND 3,000,000 or VND
5,000,000 respectively; the specific assistance level shall be prescribed by the provincial-level
People's Committees.

Article 28 - Assistance for life stabilisation and production stabilisation

When households or individuals directly engaged in agricultural production have over 30% of
their assigned agricultural land areas recovered, they shall receive life stabilisation assistance for
3 months if they must not be relocated and for 6 months if they must be relocated; where they
must be relocated to places with difficult or especially difficult socio-economic conditions, they
shall receive assistance for 12 months at most. The level of monetary assistance per household
member per month shall be equivalent to 30 kg of rice, calculated at the average local price.

Article 29 - Assistance for job change and job creation

If households or individuals directly engaged in agricultural production have over 30% of their
assigned agricultural land areas recovered, they shall receive assistances for job change if they
are still within the working age; the specific assistance levels shall be prescribed by the
provincial-level.

Article 34 - Resettlement arrangements

Agencies (or organisations) that are assigned by the provincial-level People's Committees to
arrange resettlement must inform every household that will have land recovered and must be
relocated of the tentative resettlement arrangement plans and publicly post up these plans at their
headquarters, at the offices of the commune-level People's Committees of the localities where the
land to be recovered exists and in the resettlement areas 20 days before such resettlement plans
are approved by competent State bodies.




Nuiphaovica, Vietnam                                                                            Page 16

Nui Phao Mining Project               Resettlement Action Plan                        Final 20-Jul-06




Article 35 - Compulsory conditions at resettlement areas

Before residential land is arranged for households or individuals, comprehensive infrastructure
must be built in the resettlement areas to ensure that users have the same or better conditions
compared with their old places of residence.

Article 36 - Measures to assist production and life in resettlement areas

Assistance to be provided may include plant seeds and animal breeds for the first agricultural
production crop, agricultural promotion, forestry promotion, plant protection, veterinary services,
cultivation, husbandry and professional techniques for production, business, industrial and
trading services.

Assistance for creating some trades and occupations in resettlement areas, which are suitable to
labourers, particularly female labourers should also be provided.

Article 37 - Rights and obligations of persons who have land recovered and who must be
relocated

Rights:
         · To register in writing to move to resettlement areas;

         · To be given priority to register the residence status for themselves and other family
             members who move to new residences and to transfer family members of school age
             to new schools;

         · To refuse to move to resettlement areas which fail to ensure the conditions already
             notified and publicly posted up; and

         · To be provided house design models free of charge.

Obligations:
         · To build houses or works according to planning and fulfil other obligations
             according to law provisions; and

         · To move to resettlement areas according to the deadline set by competent State
             bodies.




2.4 International Best Practice

This updated Resettlement Action Plan has been prepared to disclose the compensation and
resettlement impacts, mitigation measures and action plans based on the updated Project
information in a format that addresses World Bank Group, including the Multilateral Investment
Guarantee Agency (MIGA), policies and conforms to the Extractive Industries Review process. It


Nuiphaovica, Vietnam                                                                        Page 17

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



is noted that the International Finance Corporation (IFC) has adopted new policies on disclosure
and sustainability, and these new performance standards on sustainability were promulgated very
late in the Nui Phao development programme (30 April 2006). Consequently, the new IFC
policies are recognised, but do not establish the basis for conformance for this document.

2.4.1 Operational Directive OP 4.12: Involuntary Resettlement

The World Bank Group operational policy OP 4.12 on Involuntary Resettlement is applied as a
safeguard policy and its main provisions include the following:

       · All viable alternative project designs should be explored to avoid or minimise the need
            for resettlement and when it cannot be avoided, to minimise the scale and impacts of
            resettlement;

       · Resettlement measures are to be conceived and executed as development activities
            providing sufficient resources to give the persons displaced the opportunity to share in
            project benefits. Assistance should be given to the community in their efforts to
            improve former production levels, income earning capacity and living standards or at
            least restore them to the levels they would have been without the project;

       · Displaced persons should be:

            o Compensated at full replacement cost prior to the actual move;

            o Assisted with relocation; and

            o Assisted and supported during the transition period.

       · Particular attention should be given to vulnerable groups;

       · Communities should be given opportunities to participate in planning, implementing
            and monitoring their resettlement;

       · Resettlers should be helped with integration into their host community;

       · Resettlement should be linked to the main project implementation schedule, so that
            project affected people should be resettled and/or compensated before being affected
            by construction or other activities;

       · There should be adequate monitoring and evaluation;

       · The project sponsor should be encouraged to offer replacement land. Cash
            compensation may be appropriate when residual land holdings are economically
            viable. For households who lose assets and/or income large enough to make the
            remainder unviable, compensation should be provided as if entire holdings had been
            taken; and



Nuiphaovica, Vietnam                                                                         Page 18

Nui Phao Mining Project                Resettlement Action Plan                          Final 20-Jul-06



         · For losses that cannot easily be valued or compensated in monetary terms e.g. access
              to public services, customers or suppliers, fishing, grazing land or forests, attempts
              must be made to establish access to equivalent and culturally acceptable resources and
              earning opportunities.

The Nui Phao Mining Project will involve involuntary resettlement and this Resettlement Action
Plan has therefore been developed in accordance with Operational Directive OP 4.12: Involuntary
Resettlement.

2.4.2 Operational Directive OD 4.10: Indigenous People

The World Bank Group operational directive OD 4.10 on Indigenous People, is applied as a
safeguard policy and its main provision is to ensure the protection of traditional rights of
indigenous people. Indigenous peoples are defined as social groups with a social and cultural
identity distinct from the dominant society that makes them vulnerable to being disadvantaged in
the development process. Indigenous peoples can be identified by the presence in varying degrees
of the following characteristics:

         · A close attachment to ancestral territories and to the natural resources in these areas;

         · Self-identification and identification by others as members of a distinct cultural group

         · An indigenous language, often different from the national language;

         · Presence of customary social and political institutions; and

         · Primarily subsistence-oriented production.

The Directive sets out policy objectives, guidelines for the design and implementation of project
provisions and processing and documentation requirements if indigenous people are affected by a
project. The Nui Phao Mining Project involves resettlement of ethnic minority groups but after a
formal and independent assessment, these ethnic minority people have been determined not to
represent indigenous peoples under this described definition. Therefore, Operational Directive OD
4.10: Indigenous People is not triggered by the Project.

2.4.3 Operational Policy Note 11.03: Cultural Property

The Operational Policy on Cultural Property Management (OP 4.11) is in preparation; therefore
until it is issued the provisions of Operational Policy Note (OPN) 11.03 apply. It gives a definition
of cultural property as well as policy and procedural guidance. Cultural property is defined as
including sites having archaeological (prehistoric), paleontological, historical, religious and
unique natural values. Cultural property therefore encompasses both remains left by previous
human inhabitants and unique natural features such as canyons and waterfalls. The World Bank's
general policy regarding cultural properties is to assist in their preservation and to seek to avoid
their elimination. More specifically the Bank declines to finance projects that will significantly
damage non-replicable cultural property and will only assist those projects that are sited or


Nuiphaovica, Vietnam                                                                           Page 19

Nui Phao Mining Project               Resettlement Action Plan                          Final 20-Jul-06



designed so as to prevent such damage. The Bank will assist in the protection and enhancement of
cultural properties encountered, rather than leaving that to chance.

The OPN states that in some cases the project is best relocated in order that sites and structures
can be preserved, studied and restored intact in situ. In other cases, structures can be relocated,
preserved, studied and restored on alternate sites. Most such projects should include the
strengthening of institutions entrusted with safeguarding a nation's cultural patrimony. Deviations
from this policy may be justified only where the expected project benefits are great and the loss of
or damage to cultural property is judged by competent authorities to be unavoidable, minor or
otherwise acceptable.

The Nui Phao Mining Project does not involve cultural properties of regional, national or
international significance. However, it does involve sites of local significance (e.g. graves and
shrines) and therefore Operational Policy Note OPN 11.03: Cultural Properties has been
considered in the development of the Resettlement Action Plan.

Other World Bank Group Safeguard Policies are applicable to the Project although directly to the
compensation and resettlement program. Other policies are relevant to the Project are given in the
ESIA/ESAP (Knight Piésold, 2006).

2.4.4 Equator Principles

The Equator Principles represent an approach by financial institutions to assess and manage
environmental and social risk in project financing. The Principles were adopted in June 2003 by
ten of the world's leading financial institutions. Currently, some forty-one financial institutions in
fourteen countries are reported to have adopted the Principles.

The Principles are meant to ensure that projects are socially responsible and have sound
environmental management. Adopting institutions undertake not to loan to projects in which the
borrower will not, or is unable to, comply with the environmental and social policies and
processes outlined in the Principles. Compliance with host country legislation and relevant World
Bank Group policies, for projects in middle and low-income countries such as Vietnam is a pre-
requisite. Public consultation and disclosure requirements are also stipulated.

2.4.5 Comparison of Internal, National and International Practices

The main difference between Vietnamese legislation and World Bank Group policy is that
Vietnamese law is "asset-oriented", while the World Bank Group policy focuses on both assets as
well as livelihood restoration. Asset orientation focuses on compensation for lost assets and not
necessarily on restoring displaced people's ability to re-establish or improve their livelihood base.
In World Bank Group policy, a project cannot cause affected people to become "worse off". They
should preferably be better off than they were before displacement.

Emphasis, thus, is placed on a combination of compensation and on other kinds of assistance that
help people restore incomes and restore or improve their standard of living (such as helping


Nuiphaovica, Vietnam                                                                          Page 20

Nui Phao Mining Project               Resettlement Action Plan                         Final 20-Jul-06



people become competitive for employment or other income opportunities, improving agricultural
output or providing access to natural resources like wood or pasture. A summary comparison
between national requirements and international standards is shown in table 2.1.

Nuiphaovica's compensation and resettlement program is designed to meet Vietnamese legislation
and is also guided by the provisions of the World Bank Group policy and therefore, all differences
identified for this Project are bridged by the Company's compensation and resettlement policies.
In particular, Nuiphaovica's compensation and resettlement policies include provision for
compensation at "replacement cost" (see also Section 2.6.3) and also for providing financial and
technical assistance to affected people to support economic and livelihood restoration activities.




Nuiphaovica, Vietnam                                                                         Page 21

Nui Phao Mining Project                                                 Resettlement Action Plan                                                         Final 20-Jul-06



                                                                            Table 2.1
           The Main Differences between the OP 4.12 on Involuntary Resettlement and National Resettlement Policies and Legislation


      Item/Topic                    The World Bank Policy (OP 4.12)                              National Policies (Land Law 2003 and draft new Decree on
                                                                                                               Compensation and Resettlement).
Objectives              · Involuntary Resettlement should be avoided where               Offered the Project Affected People with allowances and subsidies and
                           feasible, or minimised.                                       request a special assistance for the poor and vulnerable groups and standards
                        · Resettlement activities should be conceived and                of resettlement site, but not clearly stated on the requirement of the
                           executed as sustainable development programs.                 livelihood restoration and improvement.
                        · Displaced Persons should have opportunities to
                           participate in planning and implementing resettlement
                           programs.
                        · Displaced persons should be assisted to improve their
                           livelihoods and standards of living or at least to restore
                           them to pre-project levels.
Impacts                 · Covers direct economic and social impact cause by (i)          Covered only for direct impact by taking land and other assets.
                           taking land and other assets; and (ii) restriction of
                           access to designated park and protected areas.                Does not require other social and economic impacts to be considered.
                        · It is not required to cover indirect social or economic
                           impacts, but it is good practice for the borrower to
                           undertake social assessment and implementation
                           measures to minimise adverse impacts, particularly
                           upon poor and vulnerable groups.
Compensation and        Ensure that Displace Persons (DP) are:                           Request that Displaced Persons are:
participation
                        · Informed about their options and right pertaining to            · Informed before the land recovered at least 90 days for the agricultural
                           resettlement.                                                       land and 180 days for the non-agricultural days.
                        · Consulted on, offered choices among, and provided               · Informed about resettlement sites within 20 days such as location,
                           with technically and economically feasible resettlement             number of plots available, cost of plots, new house, areas of
                           alternatives.                                                       agricultural land to be allocated to DPs etc.
                        · Provided with timely and relevant information to host
                           communities receiving resettlers.




Nuiphaovica, Vietnam                                                                                                                                           Page 22

Nui Phao Mining Project                                                   Resettlement Action Plan                                                          Final 20-Jul-06




      Item/Topic                      The World Bank Policy (OP 4.12)                             National Policies (Land Law 2003 and draft new Decree on
                                                                                                                Compensation and Resettlement).
Costs and               · Paid at full replacement cost for lost assets.                   Compensation only for buildings of households and individuals. Permit
compensation            · Particular attention to the needs of vulnerable groups           deduction of depreciation for affected buildings of non-households and
                            (those below poverty line, the elderly, women and              individuals (Article 27 of New Decree-Draft on Compensation and
                            children and ethnic minorities etc.)                           Resettlement).
                        · Recovery of land and other assets do not take place until
                            compensation is paid.                                          Compensation for land with the cost of land use right at the compensation
                                                                                           time. But in the case Displaced Persons are liable to the state financially the
                                                                                           compensation shall be reduced by cash amount of liability (Item 5 of Article
                                                                                           42 of land law and item 5 of Article 11 of New Decree-Draft).

                                                                                           Only special consideration for landless displaced persons (item 2 of Article
                                                                                           21 of New Decree-Draft). Other vulnerable groups not specified.

                                                                                           Resettlement sites have to be constructed prior to land recovery.
Eligibility for         Displaced Persons must occupy the project areas prior to a         Classified by different categories depend on the legal status and benchmarks
compensation and        cut-off date. The absence of legal title to land or other assets   of time (eg. prior and after to October 15, 1993 and July 01, 2004 etc.,).
benefits                is not, in itself, a bar to compensation for lost assets or other  Permit without compensation for building in some cases (Article 26 and 27
                        resettlement assistance.                                           of New Decree-Draft)
Monitoring and          Internal monitoring and external evaluation are required.          External evaluation is not required.
evaluation




Nuiphaovica, Vietnam                                                                                                                                              Page 23

Nui Phao Mining Project                 Resettlement Action Plan                       Final 20-Jul-06



2.5 Corporate Policies of Nuiphaovica

Nuiphaovica has established a corporate vision statement that commits to establishing the Project
as a showcase model for mining and mineral processing, operating in a manner which maximises
the sustainable benefits for all stakeholders and makes a positive contribution to the development
and prosperity of the Vietnamese people through employment and training opportunities. The
Company seeks to win global high regard for social and environmental compliance as well as
technical, safety, and human resources excellence.

Paramount to achieving the company vision is the consistent application of Nuiphaovica
Company Values and Policies in all business activities. The Nuiphaovica Company Values and
Policies are shown in box 2.3.


Box 2.3: The Nuiphaovica Values and Key Company Policies

The Nuiphaovica company values are:

       · Complying with all applicable laws of Vietnam and the highest international ethical
            business standards;

       · Honesty, fairness, and genuine goodwill in all interactions with our host community
            including District, Provincial, and other Vietnamese stakeholder groups;

       · Utilising the most appropriate technologies for the timely and satisfactory delivery of
            production commitments to investors and customers;

       · Responsible stewardship of the natural environment in all project sites and the
            minimisation of adverse impacts in areas of operations;

       · Providing a healthy and safe environment for employees, contractors, and visitors at
            all project sites; and

       · Creating a corporate culture that supports the development of mutually rewarding
            employment relationships and achievement of employee professional and personal
            goals.

Nuiphaovica has established some fundamental principles for managing its regulatory,
consultation, resettlement, environmental management, health and safety, labour, gender equity,
corporate responsibility, capacity building, and community development objectives. In
implementing these objectives, Nuiphaovica has established specific policies that clearly define
its overall corporate commitments:

       · Community Relations and Development Policy ­ Commits to developing a
            beneficial partnership with the local community that maximises the sustainable
            benefits of the Project for all stakeholders;



Nuiphaovica, Vietnam                                                                         Page 24

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06




        · Environment Policy ­ Commits to responsible stewardship of the natural
            environment in all areas of Project operations and the minimisation of pollution and
            adverse environmental impacts;

        · Occupational Health and Safety Policy ­ Commits to safeguarding employees,
            contractors, visitors, and community members against adverse health and safety risks
            associated with all aspects and phases of Project operations; and

        · Human Resources Policy ­ Commits to creating a work environment that is
            responsive to employees' personal and professional goals, offering fair and equitable
            employment opportunities and preferential recruitment for qualifying local residents.

These policies are presented in the Nuiphaovica ESIA/ESAP documentation (Knight Piésold,
2006) and combine to establish the goals against which Nuiphaovica will measure its
environmental, social, health, and safety performance for the Project.



2.6 Project Compensation and Resettlement Policies

The Project compensation and resettlement policies were developed by Nuiphaovica in close
consultation with key stakeholders. Many meetings and workshops were held to discuss a draft
`Resettlement Policy' framework for the Nui Phao Mining Project. Based on feedback from key
stakeholders, Nuiphaovica revised the Project Resettlement Policy documentation and it was then
countersigned by Nuiphaovica, and the Departments of Finance, Construction and the
Environment and Natural Resources of the Thai Nguyen province. The policy documentation was
submitted to the Thai Nguyen Provincial People's Committee (TNPPC) and it was approved on
March 22, 2005 (Decision No. 435/QD-UB).

2.6.1 Compensation and Resettlement Objectives

The key objectives of the Nuiphaovica resettlement policies are:

     (i)    The Company and the Thai Nguyen People's Committee have agreed to cooperate in
            dealing with the social impact of the Project in a just and fair manner in accordance
            with the laws of Vietnam and the policies of the Company;

    (ii)    In the technical design of the mining and processing facilities, every effort will be
            made to minimise resettlement, displacement and the use of productive land. Where it
            is not feasible to avoid resettlement, resettlement activities will be conceived and
            executed as sustainable development programs, providing sufficient investment
            resources to enable Project Affected Persons and Organisations (PAPs) to share in the
            Project benefits;




Nuiphaovica, Vietnam                                                                        Page 25

Nui Phao Mining Project                   Resettlement Action Plan                                   Final 20-Jul-06



    (iii)   Project Affected Persons and Organisations (see below) should be meaningfully
            consulted and should have opportunities to participate in planning and implementing
            the compensation and resettlement programs; and

    (iv)    Project Affected Persons and Organisations will be assisted in their efforts to improve
            their livelihood and standard of living or at least to restore such to pre-displacement
            levels or to levels prevailing prior to the beginning of Project implementation,
            whichever is higher.

2.6.2 Project Affected Persons and Organisations (PAPs)

Project Affected Persons and Organisations include the following:

            a. Persons whose houses and/or property are in part or in total affected by the Project;

            b. Persons whose agricultural and/or residential land are in part or in total affected
                 (permanently or temporarily) by the Project;

            c. Persons whose crops (annual or perennial) and trees are affected in part or in total
                 by the Project;

            d. Persons whose transportation network has been disrupted as a result of the Project;

            e. Persons at relocation sites and on relocated roads, including those outside the
                 Project Operational Area; and

            f. Public and private organisations and affected businesses in the operational area and
                 at relocation sites.

For specific details on the Project Affected Persons and Organisations for this Nui Phao Mining
Project see Section 4.3.

2.6.3 Land and Asset Acquisition Principles

The acquisition of land and other assets and resettlement of persons will be minimised as much as
possible. All affected people residing, operating, working or cultivating land (or with other
productive assets) in the Project Operational Area (the area required to implement the Project) as
of May 12, 2004 (the `Cut-Off Date')2 are entitled to compensation, restoration and rehabilitation
measures sufficient to assist them to at least restore or otherwise improve their pre-Project living
standards, income earning capacity and production levels. Lack of legal rights or documentation
will not bar affected people from entitlement to such measures.

The compensation measures to be provided by Nuiphaovica include in both cash and/or in kind
compensation for houses and other structures at full replacement costs acceptable to all affected




212 May 2004 is the Cut-Off Date adopted for the Project. See Definition of Key Terms for further information.

Nuiphaovica, Vietnam                                                                                       Page 26

Nui Phao Mining Project                   Resettlement Action Plan                          Final 20-Jul-06



households. For the purposes of this Project, the definition of "Replacement Cost" in OP 4.12 of
the World Bank policy on involuntary resettlement is adopted and as shown in box 2.4.

Box 2.4: OP 4.12 Definition of Replacement Cost

"With regard to land and structures, "replacement cost" is defined as follows: For agricultural
land, it is the pre-project or pre-displacement, whichever is higher, market value of land of equal
productive potential or use located in the vicinity of the affected land, plus the cost of preparing
the land to levels similar to those of the affected land, plus the cost of any registration and
transfer taxes. For land in urban areas, it is the pre-displacement market value of land of equal
size and use, with similar or improved public infrastructure facilities and services and located in
the vicinity of the affected land, plus the cost of any registration and transfer taxes. For houses
and other structures, it is market cost of the materials to build a replacement structure with an
area and quality similar to or better than those of the affected structure, or to repair a partially
affected structure, plus the cost of transporting building materials to the construction site, plus the
cost of any labour and contractors' fees, plus the cost of any registration and transfer taxes. In
determining the replacement cost, depreciation of the asset and the value of salvage materials are
not taken into account, nor is the value of benefits to be derived from the project deducted from
the valuation of an affected asset. Where domestic law does not meet the standard of
compensation at full replacement cost, compensation under domestic law is supplemented by
additional measures so as to meet the replacement cost standard. Such additional assistance is
distinct from resettlement measures to be proved under clauses in OP 4.12, para.6".

Specifically, the following compensation and associated provisions will be provided:

     (i)     Agricultural land-for-land replacement of equal productive capacity acceptable to the
             affected people will be provided, or cash equivalent at full replacement cost if there is
             no agricultural land available;

     (ii)    Replacement of residential land of equal size acceptable to the affected households, or
             cash equivalent;

    (iii)    Cash compensation for renters, crops, trees and other productive assets lost due to the
             Project;

    (iv)     Cash compensation for grave removal and relocation;

     (v)     Replacement or re-installation of utilities and facilities, such as water metres,
             sanitation facilities, electricity metres, telephone lines, and road networks; and

    (vi)     Cash compensation for relocation of public works and other collective assets or in-kind
             replacement of structures to equivalent or higher standard.




Nuiphaovica, Vietnam                                                                              Page 27

Nui Phao Mining Project                  Resettlement Action Plan                      Final 20-Jul-06



The restoration and rehabilitation measures to be provided include:

            a. Stabilisation and transport allowances for all affected people temporarily or
                 permanently displaced;

            b. Resources or other economic and livelihood development programs (such as land
                 development, access to credit, training for non-farm income) to assist the full
                 restoration of income earning capacity of the affected people;

            c. Employment by the Project for a number of affected people, carefully selected and
                 trained, to satisfy the employee profile and requirements of the Company;

            d. Small and medium enterprise opportunities to provide selected goods and services
                 to the Project and in support of new business creation as part of economic
                 restoration activities;

            e. Special cash allowances and other assistance to vulnerable groups;

            f. Minimising the resettlement transition period;

            g. The previous level of community infrastructure and social services will be
                 maintained or improved at relocation sites;

            h. Financial and physical resources for resettlement and rehabilitation will be made
                 available as and when required;

            i. Comprehensive and accessible complaints management process; and

            j. Organisational arrangements to ensure effective preparation and implementation of
                 the Resettlement Action Plan.

Ongoing monitoring and evaluation of the implementation of this Plan will be carried out in order
to ensure that compensation and resettlement activities and tasks will be implemented effectively.

2.7 Eligibility

2.7.1 Eligibility of Project Affected Persons

PAPs eligible for compensation and rehabilitation will include:

            a. Those who have formal legal rights to land or other assets;

            b. Those who initially do not have formal legal rights to land or other assets but have
                 a claim to legal rights based upon the laws of the country, upon the possession of
                 documents such as land tax receipts and residence certificates or upon permission
                 of local authorities to occupy or use the Project affected plots;




Nuiphaovica, Vietnam                                                                         Page 28

Nui Phao Mining Project                 Resettlement Action Plan                             Final 20-Jul-06



            c. Those who have no recognisable legal right or claim to the land they are
                 occupying; and

Persons covered under (a) and (b) are provided compensation for the land they lose, and other
assistance. Persons covered under (c) are provided resettlement assistance, in lieu of
compensation for the land they occupy, and other assistance, as necessary, to achieve the
objectives set out in this Plan.

In order to be eligible under (a), (b) or (c) above, persons must occupy the land prior to May 12,
2004, the Cut-Off Date, which is the date by which the mandatory dissemination of Directive No.:
07/2004/CT-UB of the Dai Tu District People's Committee (DTDPC) to all affected communes
and wards has been properly completed. Persons who encroach on the areas after the Cut-Off Date
are not entitled to compensation or any other form of resettlement assistance, nor will they be
entitled to permanent or temporary occupancy in the area. Eligible Persons are classified in box
2.5 below.


Box 2.5: Classification of Eligibility

A. Operational          A1     All those living in the operational area as of 12 May 2004 (the "Cut-Off
Area (sectors)                 Date") and those subsequently born to those living in the operational area.


                        A2     All those not living in the operational area, but owning land or other
                               productive assets in the operational area.


                        A3     All those living in the surrounding area of the affected areas that are
                               adversely affected by the Project.


Nuiphaovica conducted a Detailed Measurement Survey in August and September 2004 for residential
assets. All those registered as affected households at that time are deemed to have satisfied eligibility
criteria A1.


The landowners in category A2 will be registered after the boundaries of the operational area have been
staked and the Detailed Measurement Survey for those assets can be confirmed.


Households and/or landowners that fall into category A3 have been assessed through the Environmental
and Social Impact Assessment and any potential impacts on those living in surrounding areas will be
minimised in accordance with the Company's Environmental and Social Action Plan. Actual eligibility for
compensation or special assistance by the Project will be determined on a case by case basis.


B. Relocation Site B1          All those living in the relocation site areas at the time each area is
Areas                          designated by the Provincial and District Governments.


                        B2     All those not living in the relocation sites areas that have lands in the
                               relocation areas.


A Detailed Measurement Survey of designated relocation site areas will be conducted according to the
Project Implementation Schedule to register eligible and affected persons.



Nuiphaovica, Vietnam                                                                                Page 29

Nui Phao Mining Project                  Resettlement Action Plan                               Final 20-Jul-06




Box 2.5 continued

Note: A final Detailed Measurement Survey will be completed for all land and assets for both categories A
and B in order to confirm and calculate actual compensation packages and other allowances. This process
was initiated in November 2005 and is ongoing (see also Section 4.8.1).


C. Other Areas                 All those who consider themselves adversely affected by the construction
                               and operation of the Project facilities, either through loss of land and
                               infrastructure, economic loss or disturbance, or loss of access, are entitled to
                               make a claim in writing to Nuiphaovica and in particular the designated
                               Complaints Officer.


D. Community                   All community infrastructure and public works affected by the Project are
Infrastructure                 eligible; inventories will be provided by the communes and provincial
                               departments.


2.7.2 Eligibility Register

The relocation associated with the Project will be carried out in stages and according to the
requirements of the Project Implementation Schedule. Therefore, not all households will need to
be relocated in the same year.

There will be opportunities for some households to continue working their lands in the operational
area after they have been compensated and relocated to new sites, however, these lands may be
required at a later stage.

Before the actual relocation of affected households takes place, the Dai Tu District Compensation,
Assistance and Resettlement Committee (DDCARC) will verify and update the Eligibility
Register in conjunction with Nuiphaovica, to ensure that all persons entitled to compensation
under the resettlement program and relevant policies receive their entitlements. The DDCARC
will amend the register to reflect the natural growth of the registered households (including
children in registered households who may have formed new families after the initial registration).

The DDCARC shall register persons who move into the Operational Area and relocation site areas
and purchase property which has already been registered as affected property in the name of
someone else, provided the buyer and the seller advise the DDCARC of the transfer.

The register will be the basis of eligibility for Project Affected Persons to be compensated in
accordance with the Project Resettlement Policy and relevant regulations.

The register shall be kept at the DDCARC in both electronic and paper format.

2.8 Entitlements

The entitlements presented in box 2.6 will be provided to those eligible in the categories stated
previously in Section 2.7.1. The entitlements described below should be read in conjunction with
the classifications of eligibility shown in box 2.5 (above).


Nuiphaovica, Vietnam                                                                                  Page 30

Nui Phao Mining Project                    Resettlement Action Plan                               Final 20-Jul-06




Box 2.6: Entitlement Policy

A1 and B1 Categories
1. Houses

                    (i)    The construction materials that can be salvaged upon dismantling of existing
                           house. Salvaging shall cover limited removal of items like doors, windows,
                           wooden floors etc and there may be restrictions on salvage of house walls and
                           other such items.

                   (ii)    Transportation of salvaged housing materials and household belongings to the
                           relocation site if requested by household (in this case, no removal allowance is
                           paid under item 6).

                  (iii)    Compensation for the existing house based on full replacement cost.

                  (iv)     Upon request: construction of new house for vulnerable households at
                           appropriate size and standard (minimum house area not less than 50 m2) with no
                           compensation for the existing house (a house for house or cash equivalent).

                   (v)     Households with 7 or more persons containing two married families or with
                           unmarried sons over 20 years of age, have the option to have two plots allocated,
                           but will only be compensated for the one existing house.

                  (vi)     Construction and other permits provided at no cost to household (including
                           building ownership documentation).

2. Agricultural Land and Assets on Land

Compensation for agricultural land at market value if no replacement land can be offered or the offered
land is not acceptable to the household.

                    (i)    Replacement land to be of similar productive capacity; if not, cash adjustments or
                           additional land can be provided.

                   (ii)    Market value to be determined based on Provincial and District conditions in
                           accordance with the provisions of the Land Law (2003) and acceptable to the
                           household. If 25 percent or more of the household's land is required by the
                           Project and the remaining area is not economically viable, the affected household
                           has the option to sell the entire land to the Project and receive compensation in
                           cash at market value.

                  (iii)    If less than 25 percent of the land is required the affected person will receive cash
                           compensation at market value for the land required.

                  (iv)     The replacement value of the land is the market value of the land in the year the
                           compensation is paid.

                   (v)     Replacement land will be provided with Land Use Rights Certificate (LURC) at
                           no cost to the household. Compensation will be paid for fruit trees, standing
                           crops lost and any kind of investments on land at the prevailing District market
                           value.

                  (vi)     Households with land in Sector 6 (the area considered as a safety area) will also
                           be compensated and relocated. After compensation, Nuiphaovica will have the
                           rights for land use; the Company may let households continue using the land for
                           farming. However, Nuiphaovica has the right to reclaim land in this area at any
                           time for its own purpose.



Nuiphaovica, Vietnam                                                                                    Page 31

Nui Phao Mining Project                 Resettlement Action Plan                               Final 20-Jul-06




3. Residential House Plot in Relocation Site

                    (i) According to the suggestion of the District and relevant Provincial departments,
                        the sites close to Dai Tu will be no less than 125 m2, while for sites further away
                        from Dai Tu town and therefore in more rural areas, the plot size will be no less
                        than 300 m2.

                   (ii) Land will be provided with a boundary survey permit, and joint title provided to
                        the husband and wife (or equivalent).

                  (iii) Plots are to be prepared for house construction (the household is not required to
                        move if the plot and infrastructure are not ready).

                  (iv)  Infrastructure at relocation sites is to be in place before the households are
                        required to move to site.

                   (v)  Every effort will be made to relocate those now living along National Road No.
                        37 to the new section of National Road No. 37.

                  (vi)  The allocation of plots will be according to the commune or District
                        Compensation, Assistance and Resettlement Committee approved allocation
                        process and Nuiphaovica policy (see also Section 7.7.1).

                  (vii) Site planning for relocation sites should initially attempt to incorporate the
                        existing houses into the new site plan giving these owners first priority to select a
                        new plot. This is related to displaced households at relocation sites who will be
                        rearranged

                 (viii) Residential land for land compensation will be provided according to the
                        following rules:

                        · If compensation value of original plot is equal or less than the cost of the new
                            plot, the household will receive the new plot at no additional cost to the
                            household;

                        · If compensation value of the original plot is higher than the cost of the new
                            plot, the household will receive the new plot at no cost to the household and
                            the difference in cash;

                        · The cost of the new plot at the relocation site does not include the cost of
                            earth works and providing community infrastructure (on and off site-
                            infrastructure) or any social services which are borne by the Company;

                        · Some affected families will be allocated more than one plot (depending on
                            the area of original residential land lost and if there are more 7 persons or one
                            family living in one affected household or the household has unmarried sons
                            over 20 years of age); and

                        · All households affected by residential land aquisition with or without a
                            building on the land (either in the Project operational area or in the relocation
                            sites) will be entitled to plots at the relocation site or cash compensation at
                            full replacement cost according to their choice.

4. Relocation Site Infrastructure

                    (i) Year-round potable water supply, by community piped system if size of site
                        warrants or otherwise well or similar source;

                   (ii) Drainage system;

                  (iii) Electricity to the house;



Nuiphaovica, Vietnam                                                                                 Page 32

Nui Phao Mining Project                  Resettlement Action Plan                             Final 20-Jul-06




                  (iv)    Road access to house;

                   (v)    Telecommunication cable;

                  (vi)    Elementary school access within 3 km;

                  (vii)   Health clinic access within 5 km;

                 (viii)   Site layout to have some open spaces; and

                  (ix)    Solid waste disposal area.
5. Services

                    (i)   Transportation of household assets to relocation site if requested by household
                          (in which case no moving allowance under item 6 is provided).

                   (ii)   Health checks of all household members prior to and after the move.

                  (iii)   Access to community liaison and compensation and resettlement staff for advice.

                  (iv)    Access to the Nuiphaovica Project Information Centre and designated
                          Complaints Officer for complaints.

No fees are to be charged for services described above.

6. Transition and other Cash Allowances

                    (i)   Transportation allowance at VND 3 million per household to be relocated within
                          Thai Nguyen Province and VND 5 million per household to be relocated out of
                          Thai Nguyen Province.

                   (ii)   Timely moving allowance for moving on time of VND 5 million per household.

                  (iii)   Stabilisation allowance in a transition period of VND 900,000 per person
                          (calculated from VND 150,000 per month for 06 months).

                  (iv)    Transition allowances may be extended beyond the initial 6 month period but
                          will be determined on a case by case basis. Nuiphaovica will monitor affected
                          households during and after resettlement and any cases of hardship (e.g. inability
                          to re-establish income levels and livelihoods to pre-Project levels) will be
                          addressed accordingly.

                   (v)    Vulnerable group / special allowances, including:

                          · Allowance for veteran households receiving social welfare from the
                              government (as defined by authorities) of VND 1 million;

                          · Landless allowance for affected households and those with house values less
                              than 50m2 with a value of VND 10,000,000;

                          · Women headed households and poor families as defined by government
                              (those under the Ministry of Labour, Invalids and Social Affairs).

                  See Section 5.4 for further definition of vulnerable groups and assistance proposed to
                  support these groups.

7. Income and Production Measures for those who will lose Agricultural Land as their Main
Source of Income

                    (i)   Employment opportunities in the construction and operation of the Project for
                          selected qualified and interested persons of both genders and within working age.



Nuiphaovica, Vietnam                                                                                Page 33

Nui Phao Mining Project                 Resettlement Action Plan                             Final 20-Jul-06




                   (ii) Assistance with the development of feasible production, employment and income
                        generating opportunities endorsed by the Province and District; pilot start-up of
                        selected projects.

                  (iii) Skills training programs for all persons wishing to receive training; allowance to
                        the person taking the training will be VND 3.0 million, with another VND 2.0
                        million estimated for the person providing the training and VND 1.0 million for
                        mobilising employment. This equates to a total of VND 6.0 million for an
                        economic and livelihood restoration program of the affected persons choice.

                  (iv)  Income and social assistance programs for vulnerable households during
                        transition period of VND 5 million per household.

                   (v)  Provision of a central market building in Dai Tu for independent stall-holders,
                        and for establishment of other economic restoration activities, such as handicraft
                        manufacturing (this will be built by Nuiphaovica at the Hung Son 2 relocation
                        site).

                  (vi)  Eligibility for economic restoration for affected households (e.g. how many
                        affected people are eligible) is based on productive land and/or income loss.

8. Self-Relocation

                    (i) Those wishing not to move to a relocation site but instead prefer to look after
                        their own physical relocation will receive an additional one-time allowance of
                        VND 40 million per household upon the recommendation of the Dai Tu District
                        Compensation, Assistance and Resettlement Committee, and according to the
                        regulations. These households will not be allocated a plot in a relocation site, but
                        will receive compensation in cash for their affected land and other assets. All
                        provisions as stated above (except those under items 3 and 4) would apply.

                   (ii) The additional allowance for self-relocation is provided so that households can
                        invest in physical or social infrastructure and services (e.g. water or electricity
                        conditions) that will not necessarily be available at their new location, and that
                        would normally be provided at Company established relocation sites.

                  (iii) A mechanism of payment and assistance to households will be developed to
                        make sure that they can obtain land, build their house and restore their
                        livelihoods. Self-relocation will be also subject to monitoring to ensure the self-
                        relocation arrangements are adequate.



A2 & B2 CATEGORIES

9. Households with Operational Area Agricultural Land or Relocation
Site Agricultural Land only (not physically displaced)

These households will receive:

                    (i) Cash compensation for the lost land;

                   (ii) Compensation will be made under the same conditions for other agricultural land
                        loss (item 2 of A1 and B1);

                  (iii) Other applicable and

                  (iv)  Production assistance and stabilisation allowance (items 6 and 7 of A1 and B1).



Nuiphaovica, Vietnam                                                                               Page 34

Nui Phao Mining Project                  Resettlement Action Plan                          Final 20-Jul-06




A3 & C CATEGORIES

10. Other Households

These households will receive compensation according to their losses as claimed by them and approved by
the Dai Tu District Compensation, Assistance and Resettlement Committee.

D CATEGORY

Community Infrastructure and Public Works

These works will be replaced to an as-before or higher standard. Alternatively, cash compensation will be
paid at full replacement cost, without deduction for depreciation to the owners.




Entitlements for different affected categories are summarised in table 2.2.




Nuiphaovica, Vietnam                                                                             Page 35

 Nui Phao Mining Project                                                 Resettlement Action Plan                                                       Final 20-Jul-06



                                                                              Table 2.2
                                                 Entitlement Matrix for the Different Affected Categories


Affected category            Legal status                                    Entitlement policy                                    Implementation measures

1. Houses and        All affected persons       Fully affected houses:                                                        Affected households can opt to
other fixed assets   having certificate of land · The construction materials that can be salvaged upon dismantling of         construct   houses    themselves     or
                     occupancy and house            existing house.                                                           choose houses built by DDCARC and
                     ownership or, in absence   · Transportation of salvaged housing materials to relocation site if          Nuiphaovica.
                     of it, affected persons        requested by household (in which case no moving allowance in cash is      Other allowances and subsidies will
                     recognised as stable           paid).                                                                    be provided to PAP at least one
                     occupants by the           · Compensation for existing house based on full replacement cost.             month prior to displacement.
                     communal authority or
                     simply affected persons    · Construction of new house for vulnerable households at appropriate
                                                                                                                              Clearly inform affected households
                     included in the inventory.     size and standard (minimum house area not less than 50 m2), with no
                                                    compensation for existing house involves (house for house).               and commune authorities about site

                                                · Allowances and subsidies and economic restoration programs.                 development        and       relocation
                                                                                                                              schedules.

                                                Partially affected houses:
                                                Cash compensation for repairing affected part of the house.                   The replacement value of the house
                                                                                                                              and other fixed assets in the year the
                                                                                                                              compensation is paid.

2. Agricultural      All affected persons       · Compensation for agricultural land at market value if no replacement        Replacement land will be allocated at
Land                 having certificate of land     land can be offered or the offered land is not acceptable to the          least 2 months prior to land clearance
                     occupancy or, in absence       household.                                                                for the Project. Land must be ready
                     of it, affected persons    · Replacement land to be of similar productive capacity; if not, cash         for farming.
                     recognised as stable           adjustments or additional land can be provided.
                     occupants by neighbours,   · If 25 percent or more of the land is required by the Project, the           Clearly inform affected persons and
                     or simply affected             affected person has the option to sell the entire land to the Project and commune authorities about site
                     persons included in the        receive compensation in cash at market value. If less than 25 percent     development and land allocation
                     inventory.                     of the land is required the affected person will receive cash             schedules and regulations.
                                                    compensation for the land required at market value.



 Nuiphaovica, Vietnam                                                                                                                                         Page 36

 Nui Phao Mining Project                                                  Resettlement Action Plan                                                       Final 20-Jul-06




Affected category            Legal status                                     Entitlement policy                                  Implementation measures

                                                · Replacement land will be provided with Land Use Rights Certificate         If compensation in cash for land, the
                                                    (LURC) at no cost to the household                                       replacement value of the land is the
                                                · Compensation for fruit trees, standing crops lost and any kinds of         market value of the land in the year
                                                    investments on land at District prevailing market prices or replacement  the compensation is paid.
                                                    costs.
                                                · Economic and livelihood restoration programs.

3. Residential       All affected persons       Fully affected residential land (land for land compensation):                Plot at relocation sites will be ready
land                 having certificate of land                                                                              and households will be compensated
                     occupancy or, in absence   · For sites close to Dai Tu, the plot size no less than 200 m2, while for    in cash or by way of replacement
                     of it, affected persons        sites further away from Dai Tu (more than 3 km), the plot size no less   plots and to the extent practical will
                     recognised as stable           than 300 m2.                                                             be made available at least 3 months
                     occupants by neighbours,   · Land provided with survey, permit, and joint title to husband and wife     prior to land clearance for the Project.
                     or simply affected             (or equivalent).
                     persons included in the                                                                                 Other allowances will be paid to
                     inventory.                 · Plots to be ready for house construction (household not required to
                                                    move if plot and infrastructure not ready).                              affected households at least one

                                                · Allocation of plots according to commune approved allocation method        month prior to displacement.

                                                    and Nuiphaovica policies.
                                                · Site planning for relocation sites should attempt to incorporate the       Clearly inform affected persons and

                                                    existing houses into the new site plan; alternatively, these owners will commune authorities about site

                                                    have first priority to select a new plot at the relocation site.         development and relocation

                                                · Land for land compensation, according to these rules:                      schedules.

                                                    a) If compensation value of old plot is equal or less than area of new
                                                        plot, household receives new plot at no additional cost.             The replacement value of residential

                                                    b) If compensation value of old plot is larger than area of new plot,    land in the year the compensation is

                                                        household receives new plot at no cost, and the difference in area   paid.

                                                        in cash at the compensation rate of the old plot.
                                                    c) The cost of the new plot will be the cost of site development and
                                                        infrastructure, expressed on per m2 basis and to be approved by



 Nuiphaovica, Vietnam                                                                                                                                          Page 37

 Nui Phao Mining Project                                                 Resettlement Action Plan                                                      Final 20-Jul-06




Affected category           Legal status                                     Entitlement policy                                   Implementation measures

                                                         competent authorities of Thai Nguyen.
                                                    d) There are standard plots with areas no less than 125 m2 that will be
                                                         developed for landless affected people or for affected households
                                                         losing a small area of residential land.
                                               Affected households can opt for self relocation and will receive an
                                               additional amount of VND 40,000,000 per household.
                                               Partially affected on residential land:
                                               Cash compensation for affected area at replacement cost.

4. Trees and         All affected persons      Compensation at replacement cost for trees.                                  To the extent practical, provide
annual crops         affected trees and annual Compensation at market price for annual crops                                compensation to affected persons at
                     crops                                                                                                  least one month prior to the land
                                                                                                                            clearance for the Project.
                                                                                                                            The replacement or market value of
                                                                                                                            trees, annual crops in the year the
                                                                                                                            compensation is paid.

5. Impacts on        All affected persons who  Replacement measures.                                                        Consultation with affected persons,
business             are running their own      Additional assistance to restore the livelihoods through economic           local authorities and unions,
                     businesses                 restoration programs.                                                       associations and NGOs for proposed
                                                                                                                            programs / activities.

6. Temporarily       All    affected    persons Cash compensation for a period of acquiring land and impact on              Preparing land as the old status before
impact on land       occupying      land   and businesses                                                                   it is handed over to affected
and business         running businesses                                                                                     households.


7. Community         Owners of public works    These works will be replaced to an as-before or higher standard.             DDCARC and Nuiphaovica to
Infrastructure                                 Alternatively, compensation will be paid at full replacement cost, without   discuss with owners of public works
and Public Works                               allowance for depreciation.                                                  for the compensation alternatives and
                                                                                                                            coordinate for realignment and re-
                                                                                                                            establishment activities.



 Nuiphaovica, Vietnam                                                                                                                                        Page 38

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06



                 CHAPTER 3.             SOCIO-ECONOMIC CONDITIONS

3.1 Methodology of the Socio-Economic Baseline Studies

A comprehensive Socio-Economic Baseline Survey (SEBS) was undertaken to gather social and
economic baseline information on the affected population. This survey was carried out from early
August, 2004 to approximately the end of September, 2004. The socio-economic baseline survey
was carried out by Thang Long Infrastructure Development Ltd in conjunction with Nuiphaovica.

The SEBS was conducted specifically to provide relevant data and information for development
of the resettlement program and prepration of the Resettlement Action Plan. The SEBS had the
following primary objectives:

        · To provide a description and assessment of the current and potential socio-economic
            issues in the study area, including education, occupations, living conditions, food
            availability, water sources, fuel sources, health and diseases, infrastructure, land use,
            income sources and expenditure, social infrastructure, gender issues, subdivision of
            work, etc;

        · To conduct an opinion poll on stakeholders regarding the Nui Phao Mining Project, in
            particular their attitude and preparedness towards the Project, concerns and preferences
            regarding their relocation and resettlement and other positive and negative impacts of
            the Project, and to discover the objective and subjective causes leading to such
            attitudes, concerns and preferences; and

        · To recommend measures to be taken in order to ensure successful preparation and
            implementation of the RAP, including complying with Vietnamese and international
            practices on involuntary resettlement.

The SEBS process included the following steps:

     (i)    Consultants and Nuiphaovica drafted questionnaires and discussed them with the
            DDCARC, commune authorities and then tested them on some of the affected
            households;

    (ii)    Questionnaires were modified based on the comments of the DDCARC and local
            authorities and through example interviews with affected households;

    (iii)   A manual was prepared of proposals for the survey (purpose, methodology,
            institutional arrangements, expected outcomes, deliverables, time frame etc.);

    (iv)    Training of surveyors;

     (v)    Meetings were held with all affected communities to explain the purpose of the survey
            and requested coordination from local authorities and the affected people;



Nuiphaovica, Vietnam                                                                     Page 39

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06



    (vi)    Consultants together with the commune working groups carried out surveys under the
            supervision of Nuiphaovica; and

   (vii)    Preparation of a stand-alone report by consultants for Nuiphaovica and the Thai
            Nguyen authorities.

The SEBS adopted qualitative and quantitative methods including:

     (i)    Review of existing documents;

    (ii)    Pre-coded questionnaire surveys (on 1048 households, including 1002 households in
            and around the operational area in Ha Thuong, Hung Son, Tan Linh and Phuc Linh and
            46 households in proposed resettlement areas in Hung Son, Binh Thuan, Tien Hoi and
            Cat Ne);

    (iii)   Interviews with key authorities (28 officials representing various branches of the
            district and related communes);

    (iv)    Focus group discussions in three communes: Ha Thuong, Hung Son and Tan Linh;

     (v)    Data compilation and analysis; and

    (vi)    Second interviews to verify information and confirm income ranges by occupation.

The number of interviewees in each commune is shown below in table 3.1.

                                              Table 3.1
  Number of Households Surveyed in the Affected Villages and Proposed Relocation Sites


                   Village / site                       Number of interviewed affected households

Ha Thuong Commune (sub-total)                                             638

Village no. 1                                                             136

Village no. 2                                                             165

Village no. 3                                                             63

Village no. 4                                                             124

Village no. 5                                                             80

Village no. 6                                                             53

Village no. 7 and 9                                                       17

Hung Son Commune (sub-total)                                              292

Village no. 1                                                             245

Village no. 2                                                             47

Tan Linh Commune (sub-total)                                              69

Phuc Linh Commune (sub-total)                                             03

Proposed relocation sites (sub-total)                                     46

TOTAL number of interviewees                                             1,048


Nuiphaovica, Vietnam                                                                          Page 40

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



The survey of households was conducted by an experienced team together with commune
officials under the supervision of Nuiphaovica. The information gathered included:

        · Ethnicity, religion and occupation of members of the household;

        · Skills and education of members of the household;

        · Household income levels and sources of income and expenditure;

        · Health aspects of the household;

        · Social infrastructure available to the affected communities, at resettlement sites and
            communities receiving relocated settlers

        · Identification of vulnerability issues and groups, including gender and ethnic aspects;

        · Opinions of households as to their needs and wants; and

        · Other general data and information.

A stand-alone Socio-Economic Survey Report was prepared in both Vietnamese and English and
is available at the offices of Nuiphaovica in Hanoi and Dai Tu District. A summary of key results
from this report are summarised in the following sections. In addition to the data and information
gathered from the survey, regional statistics and information were also obtained from discussions
with relevant authorities, key policy documents, regional statistical reports (particularly the Dai
Tu district report of 2003) and economic ethnographic materials. Regional and other information
is presented as appropriate to provide context and comparison with the Project area baseline
conditions. See the Environmental and Social Impact Assessment (Knight Piésold, 2006), for
further details on socio-economic studies conducted for the Project and associated baseline data.

3.2 Regional Socio-Economic Conditions ­ An Overview

3.2.1 Thai Nguyen Province

The Nui Phao Mining Project is located in the Dai Tu district of Thai Nguyen province,
approximately 20 km northeast of Thai Nguyen city (Figure 1.2).

Thai Nguyen province is located in the foothills of the Northern Mountains between the wealthier
delta provinces surrounding Hanoi and the impoverished and remote provinces of the far north.
Rates of growth, poverty levels, and inequality reflect this geographical position. The province
has   enjoyed      a   relatively high   economic      growth  rate   (8.53   percent    in     2004,
www.thainguyen.gov.vn) but still suffers problems of rural poverty. The province's national
poverty ranking was 26 out of 61 provinces in 2003.

Thai Nguyen has nine districts and covers a natural area of 3541.1 km2 which accounts for 1.1%
of the whole country. Its population is about 1,061,700 people accounting for 1.35% of Vietnam's
population. The population density of 299.8 people / km2 is nearly 1.3 times the country average.


Nuiphaovica, Vietnam                                                                     Page 41

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



Thai Nguyen is a multi-ethnic province, there are 44 ethnic groups, of these, Kinh people account
for 75.2%; Tay 10.2%; Nung 5.2%; San Diu 3.6%; San Chay 2.8%; Dao 2.1% and the remaining
0.9% are of 38 other ethnic groups (see also Section 3.6).

The majority of the population in the Thai Nguyen region depend on their own farms for their
livelihoods, but farmers are increasingly growing crops for the market. Tea is the most important
cash crop in the province, and Thai Nguyen is famous for its tea, exporting both nationally and
internationally. In 2001, Thai Nguyen province produced 62,000 tonnes of tea with production
objectives for 136,000 tons per year by 2010 (www.thainguyen.gov.vn).

The largest area of employment growth in Thai Nguyen has been in the private informal sector.
Rural areas have seen a shift toward informal wage labour, particularly among men. Small-scale
private industries, such as artisanal mining and construction, account for much of the work.
Mining is a major industry in the province and generates extensive informal employment through
associated processing and extraction activities. Thai Nguyen is considered to have the second
largest coal reserves in the country and has four large state-owned coal mines. Iron ore and tin are
also major resources for the area (www.thainguyen.gov.vn).

3.2.2 Dai Tu District

Dai Tu district is situated in the northwest of Thai Nguyen province and has a natural area of
578.9 km2. According to the district's statistical analysis of 2003, there were 163,637 people and a
population density of 282.7 people/ km2. The male population is 81,494 and female is 82,647
showing a near 1:1 gender ratio. The district has shown an average population growth of about
10% in recent years.

The district has twenty-nine communes, with 95% of the population living in rural areas. Dai Tu
has about 10 ethnic groups including Kinh (78.0%), Tay (7.7%), Nung (6.9%), Dao (2%), San
Diu (1.9%), Cao Lan, San Chay (2.8%) and others (5.2%).

Dai Tu is an agricultural district, where agricultural labour accounts for about 80,231 people; or
94.0% of the total district workforce (85,360 people). Major cereal crops are rice and maize and
according to statistical source of 2001, output was 58,648 tons in a total cultivated area of about
13,143 hectares. Average cereal output per capita in 2001 was 365.7 kg. Tea is the main cash
crop with an output in 2001 of 19,169 tonnes on a total cultivated area of 3,249 ha. Major
industrial products of Dai Tu include coal, metallic ores, and bricks and in 2001, Dai Tu
reportedly exploited of about 1,500 tonnes of coal and 100 tonnes of metallic ores.

3.2.3 General Conditions

Education

Dai Tu has achieved universal primary education and illiteracy eradication since 1993. However,
overall education levels remain relatively low with most people over 30 years not having
completed high school. The district now has 35 primary schools, 30 secondary schools and two


Nuiphaovica, Vietnam                                                                      Page 42

Nui Phao Mining Project                 Resettlement Action Plan                        Final 20-Jul-06



high schools. All communes have primary and secondary schools. Thai Nguyen city has ten
registered universities and trade schools.

Communications

Basic telephone, mail and newspaper services are available to all communes in the district. In
June 2004, the telephone ratio in the district was 1.7 telephones per 100 people. Telephones are
well established in Dai Tu town with direct dial and fax availability both nationally and
internationally. A mobile phone service is also available. Other services include internet and
express mail.

Electricity

Electricity is provided mainly from the national power grid and managed by the provincial power
authority. The electricity system in Dai Tu town is supplied by a 110 kV single power line from
Thac Ba Power Plant which located in Yen Bai province.

Roads and Transport

Roads leading to communes are connected with National Road No. 37 (Thai Nguyen-Dai Tu-
Tuyen Quang) and National Road No. 38 (Pho Yen- Cat Ne- Dai Tu- Ban Ngoai- Quang Nap)
that cross Dai Tu. Less than 1% of roads in the district are reportedly sealed. Local transportation
is mostly via bicycles and motorbikes while the majority of trucking activity is from local mining,
light industrial activities and the agricultural sector for materials transport within the district.

There is also Quan Trieu-Nui Hong Railway (transporting coal) and other transport networks
connecting the district centre to all communes and from Dai Tu district to Thai Nguyen city and to
adjacent districts and provinces.

Health Care Services

The district has a public health care system with three levels: hamlet (or village), commune and
district. There are private health clinics and drug vendors that can meet the basic health care needs
of people in the district. Services provided include disease prevention and mother and child health
care. Thai Nguyen city has seven hospitals and medical facilities are considered adequate for
emergency medicine and some major surgeries. Dai Tu town has a hospital with approximately 80
beds and over 80 staff. Facilities are considered limited with no capacity to perform major
medical surgeries or urgent care.




Nuiphaovica, Vietnam                                                                          Page 43

Nui Phao Mining Project                    Resettlement Action Plan                             Final 20-Jul-06



3.3 Socio-Economic Conditions at the Project Area

Socio-economic data was gathered within the four communes where the Project facilities will be
established, which are Ha Thuong; Hung Son; Tan Linh; and Phuc Linh3. The key features of
these communes are shown in table 3.2.



                                                    Table 3.2
                 Key Characteristics of the Four Communes in the Project Area


        Criteria                Unit           Ha Thuong         Hung Son           Phuc Linh        Tan Linh

 Natural Area                   Km2                15.3             12.5               14.2             23.8

 Average Population            Person              5,913            8,820              6,821           5,497

 Population Density          Person/km2            385.5            705.6              481.7           231.0



The nearest urban area to the Project is Dai Tu town, which is located within Hung Son commune
and has a population of 4,042.

3.3.1 Settlement History

The majority of the population consists of people who migrated from other provinces; most of
them have been living in the Dai Tu district since 1940. Between 50 to 70 percent of the current
population in the communes migrated to the area since 1960. The analysis of the settlement years
of households in the Project area is shown in table 3.3.

                                                    Table 3.3
                                            Periods of Settlement


                                     Ha Thuong                     Hung Son                    Tan Linh

Before 1940                              263                          61                           11

                                       41.2%                         20.9%                       15.9%

1940-1959                                 48                          42                            1

                                        7.5%                         14.4%                        1.5%

1960-1979                                106                          91                           45

                                       16.6%                         31.2%                       65.2%

1980-now                                 221                          98                           12

                                       34.6%                         33.6%                       17.4%

Total                                    638                          292                          69




3Phuc Linh commune is downstream of the Project area and was therefore surveyed accordingly (see Table 3.1).
Unless otherwise shown data is presented for the group of surveyed households in all communes. In some cases the
socio-economic conditions of the three main communes are highlighted exclusive of Phuc Linh.

Nuiphaovica, Vietnam                                                                                  Page 44

Nui Phao Mining Project               Resettlement Action Plan                  Final 20-Jul-06



3.3.2 Demography

The demographic structures of studied households are given in table 3.4. The average number of
people per household in the communes is four.

                                              Table 3.4
                                   Size of Surveyed Households


 Number of People in HH        Ha Thuong         Hung Son         Tan Linh        Phuc Linh


01 person                         18                  6               2                0


02-04 persons                     429               192              41                2


05-08 persons                     190                91              26                1


Over 08 persons                    1                  3               0                0




Age distribution is shown in table 3.5. Approximately 32% of the population in the area is under
18 years of age. Sixty percent of people are aged between 18 to 60 years, and 8 percent of the
population is over 60 years of age.

                                              Table 3.5
                           Age Distribution of the Surveyed Population


      Age               Total        Ha Thuong         Hung Son      Tan Linh      Phuc Linh

Under 7            403 (10.0%)     251 (9.93%)      122 (10.14%)  29 (10.14%)   01 (8.33%)

From 7 to 18       881 (21.87%)    569 (22.52%)     249 (20.70%)  59 (20.63%)   04 (33.33%)

From 18 to 60      2,430 (60.33%)  1,515 (59.95%)   734 (61.01%)  176 (61.54%)  05 (41.67%)

Over 60            314 (7.80%)     192 (7.60%)      98 (8.15%)    22 (7.69%)    02 (16.67%)



Marital status was also analysed and the results are shown in table 3.6. The majority of
households (over 87 percent) are headed by married couples.




Nuiphaovica, Vietnam                                                                  Page 45

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



                                              Table 3.6
                                   Marital Status of Households


        HH status         Total       Ha Thuong         Hung Son     Tan Linh       Phuc Linh


    Single               23 (2.3%)         14               8           1                0


    Married             875 (87.3%)       550              265          58              02


    Divorced             26 (2.6%)         18               5           03               0


    Widowed              78 (7.8%)         56              14           07              01




Kinh people are the major ethnic group and account for 85.5% of the total population in the
Project area. The remaining population consists of other ethnic groups including Dao, Nung, Xan
Chi, Cao Lan, Tay etc. Table 3.7 below shows the statistics on ethnicity in the Project area.

                                              Table 3.7
                                     Ethnicity (Unit = person)

          Ethnicity           Total      Ha Thuong         Hung Son     Tan Linh      Phuc Linh

   Kinh                       3,445         2,033             1,135        277             0

                             85.5%          80.5%            94.3%        96.9%           0%
   Nung                        103            89               14           0              0

                             2.56%          3.52%            1.16%        0.00%           0%

   Dao                         13              0                9           4              0
                             0.32%          0.00%            0.75%        1.40%           0%

   Xan chi                     11              7                3           1              0

                             0.27%          0.28%            0.25%        0.35%           0%

   Cao lan                     323            294              13           4              12
                             8.02%         11.63%            1.08%        1.40%          100%

                                1              1                0           0              0
   Tho

                             0.02%          0.04%            0.00%        0.00%           0%

   Tay                         126            102              24           0              0
                             3.13%          4.04%            2.00%        0.00%           0%

   Others                       6              1                5           0              0
                             0.15%          0.04%            0.42%        0.00%           0%
   Total                      4,028         2,527             1,203        286             12



This data represents the ethnicity of the sureveyed population and does not necessarily account for
all ethnic people living in and around the Project area. Further detailed analysis and discussion on
ethnic minority groups in the Project area is provided in Section 3.6.


Nuiphaovica, Vietnam                                                                      Page 46

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06



Christians in the Project area number a reported 659 people and are mainly concentrated in Ha
Thuong commune. There are 125 Christian households with 518 people in Ha Thuong commune,
accounting for 79% of the Christian population; 12 households with 44 people in Tan Linh
commune, accounting for 15.38% of the Christian population and 19 households in Hung Son
commune with 97 people, accounting for 8.06% of the Christian population. The statistical
analysis of people with different religions is shown in table 3.8.

                                              Table 3.8
                                       Religious Affiliations

    Religion          Total     Ha Thuong           Hung Son        Tan Linh      Phuc Linh
Christian              659          518                 97             44             0
                     16.36%       20.50%             8.06%           15.38%          0%
Buddhism                25           13                  6              6             0
                     0.62%         0.51%             0.50%           2.10%           0%
Others                  4             0                  0              4             0
                     0.10%          0%                  0%           1.40%           0%
None                  3,340        1,996              1,100           232            12
                     82.92%       78.99%             91.44%          81.12%         100%



3.3.3 Education

All communes have achieved universal primary education and are trying to attain universal
secondary education. Schools are in good condition and some secondary schools meet the national
standards. Very few children of school going age have to leave school (only about 8.1%);
however, overall education levels remain low and most people over 30 years of age only complete
primary school or half of secondary school. Commune officials usually complete secondary
school and some finished half of their high school education. There are very few trained people
working in the locality. The ratio of illiterate people is about 4.94% of the total population. A
summary of training qualifications is given in table 3.9.

                                              Table 3.9
                                    Education Levels Attained


  Training Qualification    Unit       Total      Ha Thuong     Hung Son    Tan Linh     Phuc Linh

Specialised High School    People       122             22         82          18            0
                                       3.03%         0.87%       6.82%       6.29%         0.00%
College                    People        28             4          16          8             0
                                       0.70%         0.16%       1.33%       2.80%         0.00%
University, Post-graduate  People        46             3          41          2             0
                                       1.14%         0.12%       3.41%       0.70%         0.00%
Primary Training Course    People        13             2          11          0             0
                                       0.32%         0.08%       0.91%       0.00%         0.00%




Nuiphaovica, Vietnam                                                                     Page 47

Nui Phao Mining Project                      Resettlement Action Plan               Final 20-Jul-06



Table 3.9 illustrates that the majority of the population has a low level of overall education and a
low ratio of the population have a highly skilled qualification. Adaptability to complicated tasks is
low and this will be one of the challenges regarding off-farm employment for people in the
Project area. All communes have primary and secondary schools.




    Existing Primary School in Ha Thuong commune




3.3.4 Language

Vietnamese is the national language of Vietnam and is spoken by the majority of the national
population. Each of the 53 ethnic minority groups has their own distinct language or dialect.
Ethnic languages are often spoken within local ethnic communities (Ministry of Foreign Affairs,
http://www.mofa.gov.vn). In the Project area all residents speak Vietnamese, including those of
ethnic origin.

3.3.5 Occupations and Livelihoods

Most people in the communes are farmers. The main farm crops include rice cultivation,
vegetables, tea and short-term commercial crops such as peanuts and beans. Non-agricultural
employment consists of trading, services, civil servants and other employment in the private
sector. The results of the occupational survey are shown in tables 3.10 and 3.11 below.



Nuiphaovica, Vietnam                                                                      Page 48

Nui Phao Mining Project              Resettlement Action Plan                  Final 20-Jul-06



                                            Table 3.10
                                       Main Occupations


           Main job              Unit           Total        Ha Thuong Hung Son      Tan Linh

Farmer                          People          681             462       162           57
                                               68.2%          72.4%      55.5%        82.6%
Handcrafter                     People           23              12         9            2
                                                2.3%           1.9%      3.1%          2.9%
Worker                          People           39              23        15            1
                                                3.9%           3.6%      5.1%          1.4%
State cadre                     People           50              28        20            2
                                                5.0%           4.4%      6.8%          2.9%
Commerce, service, farm         People           80              30        48            2
product processing                              8.0%           4.70%    16.40%        2.90%
Police, Soldier                 People           24              21         3            0
                                                2.4%           3.30%     1.00%        0.00%
Other employment                People           29              16        13            0
                                                2.9%           2.50%     4.50%        0.00%
Not working but of              People           73              46        22            5
working ability                                 7.3%           7.20%     7.50%        7.20%



                                            Table 3.11
                                    Secondary Occupations


         Second jobs           Unit          Total         Ha Thuong   Hung Son      Tan Linh

Farmer                        People          68               24         38             6
                                             14.8%           7.8%       31.1%         20.0%
Handcrafter                   People          21               6          9              6
                                             4.6%            2.0%       7.4%          20.0%
Worker                        People           1               0          1              0
                                             0.2%            0.0%       0.8%          0.0%
Commerce, service, farm       People          234             183         40            11
product processing                           51.1%           59.8%      32.8%         36.7%
Police, Soldier               People           4               2          1              1
                                             0.9%            0.7%       0.8%          3.3%
Other employment              People          130              91         33             6
                                             28.4%           29.7%      27.0%         20.0%
Total                         People          458             306        122            30
                                            100.0%           100.0%     100.0%       100.0%



Other employment categories include those working in mining and mineral processing, small
business owners, carpentry, construction and motor-bike taxi. Small scale mining activities are
considerable in and around the Project area and inclue tin mining, iron ore and other mineral
extraction and brick making. Nearly all households surveyed participate in other employment
activities in addition to agriculture, consistent with a national trend towards increasing job



Nuiphaovica, Vietnam                                                                 Page 49

Nui Phao Mining Project              Resettlement Action Plan                      Final 20-Jul-06



creation. For further details on income generation and other economic activities in the wider area
see the ESIA/ESAP (Knight Piésold, 2006).

Occupations and livelihoods related to agricultural and forestry are further analysed and described
in Section 3.3.10 on Agriculture and Forestry.

3.3.6 Natural Resource Use

Water Resources for Domestic Consumption

Most residents are using hand dug wells (96.2%), whilst the remaining are using water from
drilled wells or other resources such as rivers, streams, ponds and lakes. Drilled wells are mostly
concentrated in Ha Thuong while there are none in Tan Linh or Phuc Linh communes. Domestic
water supply in the area is summarised in table 3.12.

                                            Table 3.12
                                    Domestic Water Resources


 Water resources         Unit         Total      Ha Thuong    Hung Son      Tan Linh     Phuc Linh

Drilled Well           Household       20             19          1             0             0
                                      2.0%           3.0%       0.3%          0.0%          0.0%
Dug Well               Household       964           606         289           66             3
                                     96.2%          95.0%       99.0%         95.7%       100.0%
Others                 Household       18             13          2             3             0
                                      1.8%           2.0%       0.7%          4.3%          0.0%
Total                  Household      1002           638         292           69             3
                                     100.0%         100.0%     100.0%        100.0%       100.0%



Water Quality

According to environmental baseline studies, surface and ground water resources vary in quality
and are often polluted due to naturally occurring arsenic in soils, rudimentary mining activities,
sewage and the uncontrolled disposal of fertilisers. For futher details on background
environmental and other conditions see the ESIA/ESAP (Knight Piésold, 2006).

Fuel Resources

The main fuel resources used by residents are firewood and coal. Although many residents along
National Road No. 37 and in Dai Tu town use gas and coal, the majority of village people use
firewood.

3.3.7 Health Issues

Dai Tu is a mountainous district with a harsh climate. In recent years, the development of the
economy and health-care services has significantly helped to improve the health of the local
residents. Malnutrition and mortality rates in children under 5 years old have been greatly
reduced. An Expanded Program on Immunisation (EPI) and communicable disease prevention

Nuiphaovica, Vietnam                                                                     Page 50

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



programs have helped to establish a good control of diseases such as measles, whooping cough,
diphtheria, tetanus, polio, and tuberculosis (TB) amongst children, as well as other diseases such
as malaria, goitre, leprosy and other communicable diseases.

According to the statistics of Dai Tu health clinics, the most common diseases in recent years are
parasitical worms, colds and flu, respiratory infections, digestion diseases, trachoma, stomach and
duodenum diseases, liver and gall cancers, child malnutrition, and urinary infections. Social-evil
related diseases such as drug addiction, sexually transmitted diseases (STD's) including
HIV/AIDS, neural diseases and suicide etc., are also reportedly increasing. The recent increase of
traffic accidents is considered to be a major factor affecting the health of the local population.

A survey of community health also shows common diseases in the area are skin-related diseases,
fungus under the nails and on the skin (increasing three times in the past 10 years), lung disease,
headache, neural diseases, cancer and stomach diseases. These diseases are mainly related to
environmental pollution caused by pesticides, insecticides and heavy metals in the environment.
Further details on this community health study and other human health statistics relevant to the
population are provided in the ESIA/ESAP (Knight Piésold, 2006).

Tea planting has led to a large demand for plant protection chemicals. There are many pesticide-
poisoning cases, and for example many miscarriages in women are attributed to the high content
of lead and arsenic in the environment. The common diseases reported in the communes are
shown in table 3.13.

                                              Table 3.13
                                         Common Diseases


 Common Diseases           Total      Ha Thuong          Hung Son        Tan Linh         Phuc Linh

                      Q'ty     Ratio Q'ty     Ratio    Q'ty    Ratio   Q'ty    Ratio     Q'ty     Ratio

Cold, flu
Often                  100    10.0%   80     12.5%      19     6.5%     1      1.4%       0        0.0%
Sometimes              392    39.1%   258    40.4%      107    36.6%    27     39.1%      0        0.0%
Total                  492    49.1%   338    53.0%      126    43.2%    28     40.6%      0        0.0%
Respiratory diseases
Often                   55     5.5%   34      5.3%      18     6.2%     3      4.3%       0        0.0%
Sometimes               71     7.1%   55      8.6%      13     4.5%     3      4.3%       0        0.0%
Total                  126    12.6%   89     13.9%      31     10.6%    6      8.7%       0        0.0%
Digestion diseases
Often                   77     7.7%   50      7.8%      24     8.2%     3      4.3%       0        0.0%
Sometimes               40     4.0%   27      4.2%       9     3.1%     4      5.8%       0        0.0%
Total                  117    11.7%   77     12.1%      33     11.3%    7      10.1%      0        0.0%
Arthritis and Bone-related diseases
Often                  123    12.3%   81     12.7%      30     10.3%    12     17.4%      0        0.0%
Sometimes               81     8.1%   54      8.5%      21     7.2%     6      8.7%       0        0.0%
Total                  204    20.4%   135    21.2%      51     17.5%    18     26.1%      0        0.0%
Skin-related diseases
Often                   14     1.4%    7      1.1%       6     2.1%     1      1.4%       0        0.0%
Sometimes               12     1.2%   10      1.6%       0     0.0%     2      2.9%       0        0.0%


Nuiphaovica, Vietnam                                                                         Page 51

Nui Phao Mining Project                Resettlement Action Plan                         Final 20-Jul-06




 Common Diseases          Total       Ha Thuong          Hung Son           Tan Linh       Phuc Linh

                      Q'ty   Ratio  Q'ty      Ratio    Q'ty     Ratio     Q'ty   Ratio    Q'ty     Ratio
Total                  26     2.6%   17       2.7%       6      2.1%       3     4.3%      0        0.0%
Neural Diseases
Often                  109  10.9%   73     11.4%     27       9.2%     8     11.6%      1        33.3%
Sometimes              124  12.4%   85     13.3%     29       9.9%    10     14.5%      0        0.0%
Total                  233  23.3%  158     24.8%     56      19.2%    18     26.1%      1        33.3%



Survey results show people do not clearly understand the cause of disease. When they were asked
about the causes of the above diseases, "other causes" (weather mainly) and "don't know"
answers were the main responses (59% for respiratory diseases and 73% for cold and flu). The
results of this question are shown in table 3.14.

                                              Table 3.14
                          Causes of Diseases According to Respondents


 Causes of Diseases    Cold, flu  Respiratory     Digestion     Arthritis and Skin-related     Neural
                                                                Bone-related
                     Q'ty Ratio Q'ty Ratio Q'ty Ratio Q'ty Ratio Q'ty Ratio Q'ty Ratio

Polluted               88  15.4%   34   26.8%     15    12.4%    12    6.2%     5   17.2%     28    12.2%
Environment

Bad Health             27   4.7%   11   8.7%      13    10.7%    19     9.8%    1    3.4%     26    11.4%

Don't know how to      13   2.3%   0    0.0%      1     0.8%      2    1.0%     1    3.4%     1      0.4%
prevent diseases

Old Age                24   4.2%   7    5.5%      10    8.3%     33    17.0%    1    3.4%     25    10.9%

Others                264  46.1%   36   28.3%     28    23.1%    55    28.4%    6   20.7%     62    27.1%

Don't know            157  27.4%   39   30.7%     54    44.6%    73    37.6%    15  51.7%     87    38.0%

Total                 573    100  127    100     121     100     194    100     29    100    229     100



Health Care

Each commune in the Project area has a communal clinic providing services for primary health
care, except for the clinic in Tan Linh, as they have equipment donated by UNICEF and UNFPA
and can provide some additional services. While medical facilities are reportedly adequate for
many minor health problems, there is a lack of capacity for locally available health services to
adequately address many major health issues, due to both limitations of technical capacity and
available facilities. The methods for the treatment of diseases are shown in tables 3.15 and 3.16
below.




Nuiphaovica, Vietnam                                                                          Page 52

Nui Phao Mining Project                          Resettlement Action Plan                        Final 20-Jul-06



                                                        Table 3.15
                                                 Treatment of Diseases

 Health Care            Cold, flu         Respiratory    Digestion     Arthritis and Skin-related      Neural
     Places                                                            Bone-related
                     Q'ty       Ratio     Q'ty  Ratio   Q'ty   Ratio    Q'ty  Ratio  Q'ty  Ratio   Q'ty    Ratio
Self-treatment        486       86.5%       50  39.7%    35   29.4%      91   44.6%  12    41.4%    138    59.5%
Commune Clinic         43        7.7%       17  13.5%    7     5.9%      15    7.4%   1     3.4%    16      6.9%
District Clinic        18        3.2%      25   19.8%    28   23.5%      39   19.1%   7    24.1%    22     9.5%
Provincial/             3        0.5%      19   15.1%    42   35.3%      39   19.1%   6    20.7%    36     15.5%
Center Hospital
Others (private        12        2.1%      15   11.9%    7     5.9%      20    9.8%   3    10.3%    20      8.6%
doctors)
Total                 562         100      126   100    119    100      204     100  29      100    232      100



                                                        Table 3.16
                                       Public and Private Health Care Services

                                                                       Arthritis and
  Health Care           Cold, flu         Respiratory    Digestion      bone-related Skin-related      Neural
     Places
                     Q'ty       Ratio     Q'ty  Ratio   Q'ty   Ratio    Q'ty  Ratio  Q'ty  Ratio   Q'ty    Ratio
Public Clinics             64 84.2%           61 80.3%     77 88.5%        93 82.3%     14 82.4%       138 59.5%
Private Clinics            12 15.8%           15 19.7%      7   8.0%       20 17.7%      3 17.6%        16   6.9%
Total                      76       100       76   100     84 96.6%       113    100    17     100      22   9.5%



According to district health officials, about 80% of the population use state health care services
(public clinics) available in the communes, districts and province. Households typically use
government hospitals and clinics for child delivery, first aid care, health checks, vaccinations, and
serious illnesses. Other common sources of health treatment include private doctors, physician
assistants, nurses, and herbalists.




 Existing health care facility in Tan Linh commune




Nuiphaovica, Vietnam                                                                                   Page 53

Nui Phao Mining Project              Resettlement Action Plan                   Final 20-Jul-06



3.3.8 Infrastructure and Services

Electricity

Households with electricity in Ha Thuong were reported at 92.2%; 100% in Hung Son and 98.6%
in Tan Linh. The ratio of households using electricity supplied by mining companies which is
often more expensive than the state selling price to farmers is 6.7% in Ha Thuong and 1.4% in
Tan Linh communes. All households surveyed in Phuc Linh reportedly use electricity supplied
from KV3 (the army). Sources of electricity are shown in table 3.17 below.

                                            Table 3.17
                                     Sources of Electricity


 Electricity Supplies  Unit      Total       Ha Thuong       Hung Son   Tan Linh     Phuc Linh
Power Grid             HH         948            588           292         68             0
                                 94.6%          92.2%        100.0%      98.6%          0.0%
Mining                 HH         44             43             0           1             0
Companies                        4.4%           6.7%          0.0%        1.4%          0.0%
Others                 HH          3              0             0           0             3
                                 0.3%           0.0%          0.0%        0.0%         100.0%
No answer              HH          7              7             0           0             0
                                 0.7%           1.1%          0.0%        0.0%          0.0%
Total                  HH        1002            638           292         69             3



Transport

The Project area lies along National Road No. 37 (a single lane road connecting Dai Tu district
and Thai Nguyen city). There is also a private railway mainly used for the transportation of coal
running sub-parallel to National Highway No. 37. The access roads to the communes are
aggregate roads and roads to villages and residential houses are simple pathways. Travelling to
remote communities is difficult, especially in the rainy seasons.

Communications

The basic communication services which are telephones, mail and newspapers are currently
provided to all communes in the district. Many households living along National Road No. 37
have telephone services. Dai Tu town is accessible for express mail services and has mobile
phone coverage.

Household radios are a common asset and an important source of local information. Loudspeaker
systems throughout the area provide government news and announcements to the general public.

Irrigation

Small dams, pump stations and on-farm canal systems for irrigation to service rice and vegetable
cultivation areas have been built and are maintained regularly in Hung Son and Ha Thuong
Communes.


Nuiphaovica, Vietnam                                                                  Page 54

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



3.3.9 Land Use

The Project area is primarily barren mountains and hills with cultivated rice and subsistence crops
of mixed vegetables in the valley bottoms. Approximately half of Ha Thuong commune is
currently used for raising forest products and other agricultural purposes, including eucalyptus
trees, acacia trees, and tea plantations that dominate the foothills. Flat valley bottoms are
primarily used for rice and subsistence crops such as corn, cassava, sweet potato, and spinach.
Additional uses include residential housing, small industry including mining, government and
public facilities, roads, aquaculture, and livestock grazing lands. Dai Tu town is the nearest urban
locale to the Project area. Table 3.18 provides the status of land use in the Dai Tu district
according to the Economic Report of Communes in Dai Tu district in 2003.

                                              Table 3.18
                                   Land Use in the Project Area


   District /     Area     Forest     Cultivated   Residential Land Land for Specific    Remaining
  Communes        (ha)      (ha)        Land              (ha)          Purposes             (ha)
                                        (ha)      Urban       Rural       (ha)


Dai Tu           57,790    24,960      14,729       67        1,881      4,130              12,388
Hung Son          1,250     230          663        none       78         180                 99
Ha Thuong         1,488     435          341        none       58         272                382
Tan Linh          2,344     376          836        none       47          43               1,042
Phuc Linh         1,416     154          530        none       59         180                494




Nuiphaovica, Vietnam                                                                       Page 55

Nui Phao Mining Project                           Resettlement Action Plan    Final 20-Jul-06




     Existing health care facility in Tan Linh commune




Nuiphaovica, Vietnam                                                                Page 56

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06



Specifically within the land acquisition boundary (the operational area), tea cultivation occurs on
approximately 40 percent, rice is grown on 11 percent, reforestation and forest products comprise
18.5 percent and residential land cover 15 percent. All other land uses in the area comprise less
than 5 percent individually and make up the remainder (ESIA/ESAP, Knight Piésold, 2006).

Army Facilities

The People's Army of Vietnam has two military sites located within and near the Project area.
"K10" is located at the head of the proposed tailings facility in Doi Ba valley. It is comprised of
approximately 130 ha of agricultural and forested land and extends from Ha Thuong to Tan Thai
commune. This area is used primarily for weapons and explosives storage, although food (rice
and grain) have also been stored in the area for military use in the event of shortage. It has been
maintained as a secretive area but it is known that both weapons and explosives that have become
unsafe have been destroyed in the area through burning or explosion. Nuiphaovica has only
recently been allowed on the property and a detailed measurement survey of this site is ongoing
(see also Section 7.8.7).

"KV3" is located mainly in Phuc Linh commune northeast of the Project, with in the Lower Thuy
Tinh basin and is used as a military camp and training area. This area has not been surveyed as it
is beyond the Project area (ESIA/ESAP, Knight Piésold, 2006). The K10 site is under the
management of the KV3 unit.

3.3.10 Agriculture and Forestry

Agriculture dominates the economy in the Project area. Most households are engaged in farming
with agricultural labourers accounting from 40% to 66% of the total agricultural people. The main
cultivated crops consist of tea, rice, maize, banana, cassava, peanuts and beans. People are rearing
animals such as chickens, ducks, pigs, buffalos, cows and goats etc. A detailed analysis of
farming and forestry activities is given in table 3.19.




Nuiphaovica, Vietnam                                                                     Page 57

Nui Phao Mining Project                    Resettlement Action Plan                 Final 20-Jul-06



                                                  Table 3.19
                     Economic Activities of Households in Project Communes


 No.                  Criteria                     Unit     Ha Thuong Hung Son Tan Linh    Phuc Linh
1     Number of Agricultural Households        Household       1,619    2,137   1,307        1,546
2     Number of Agricultural Labourers            Person       2,919    4,220   2,124        4,148
3     Paddy area                                   Ha          247.1    465.3   163.3        525.3
4     Average per HH                               Ha            0.15   0.22    0.12          0.34
5     Annual rice productivity                    ton/ha         4.7     5.2     5.2          5.1
6     Annual rice output                           ton           115    239      84           266
7     Annual maise area                            Ha            61.3   98.4     7.4          58.6
8     Average per HH                               Ha            0.04   0.06    0.006        0.038
9     Annual maise productivity                   ton/ha          4      4.2     3.9            4
10    Annual maise output                          ton           24.4   41.3     2.9          23.2
11    Annual sweet potato area                     Ha            24.9    70     17.1         105.8
12    Average per HH                               Ha          0.015    0.003   0.013        0.068
13    Annual sweet potato productivity            ton/ha         6.5     7.3     5.7          6.5
14    Annual sweet potato output                   ton           16.2   51.1    97..9          69
15    Annual cassava area                          Ha             7       0       5           71.6
16    Average per HH                               Ha          0.018    0.025   0.013        0.046
17    Annual cassava productivity                 ton/ha         73       -      73            72
18    Annual cassava output                        ton           5.1      -      3.6          51.5
19    Annual vegetable area                        Ha            29.3   54.2    16.6          34.4
20    Average per HH                               Ha          0.0008   0.004  0.0008        0.022
21    Annual bean area                             Ha            4.7     11       1
22    Annual peanut area                           Ha            1.3     8.8     1.1          2.3
23    Average per HH                               Ha          0.065    0.117   0.555        0.0015
24    Tea area                                     Ha            106    250      726
25    Average per HH                               Ha          0.029    0.44    0.71

26    Annual tea output                           ton/ha         6.5     6.5     6.5
27    Buffalo                                     Buffalo        379    352      273          643
28    Pig                                          Pig          1851    4127    1235          5807
29    Number of agricultural enterprises        Enterprise       24     197       4           120
30    No. of labourers working for enterprises    Person         34     227       6           275



According to a separate rapid biodiversity assessment undertaken for Nuiphaovica, the Project
area vegetation has been severely disturbed in recent decades by artisanal mining, human
settlement, fires, and earlier mining exploration activities. Almost all of the original vegetation
was cleared in association with these anthropogenic activities. Clearing was conducted to open
sites for mining pits as well as for the harvesting of fuel-wood and construction materials
(ESIA/ESAP, Knight Piésold, 2006).

Reforestation started approximately 10 years ago with national programs such as Programs "327"
and "661" for 5 million ha of reforestation, developed in conjunction with the United Nations




Nuiphaovica, Vietnam                                                                      Page 58

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



World Food Programme Reforestation Project. Residents were assisted with seedlings and capital
to plant trees covering bare soil and were then offered forest protection contracts.

3.3.11 Income and Expenditure

Income

Currently, the economic development in the Project area is mainly based on farming and animal
husbandry. It is estimated that the income from tea is roughly 70% of the total income of the local
people. Tea from of the Dai Tu district is of high quality and well-known nationwide.

Studies and interviews to get information on net income (investment and expenditures for all
economic activities) are always difficult, especially in rural areas and survey errors are sometimes
unavoidable because respondents might not provide or cannot remember how much they invested
and/or spent on each economic activity such as planting and harvesting (seedlings, labour,
fertiliser, irrigation etc.). However, tables 3.20 and 3.21 show the results of the income sources
reported during the socio-economic baseline survey.

                                              Table 3.20
                                    Monthly Income Per Capita


Monthly Income          Ha Thuong           Hung Son              Tan Linh              Total

 (million VND) Number of       Ratio  Number of     Ratio     Number of  Ratio  Number of      Ratio
                      HH                 HH                     HH                  HH

< 0.3                  30      5.3%       15        5.6%        17      27.0%       62         6.9%

0.3- 0.5              124      21.7%      31        11.6%       29      46.0%       184        20.4%

0.5-0.7               130      22.8%      50        18.7%       9       14.3%       189        21.0%

0.7-1                 127      22.2%      71        26.6%       7       11.1%       205        22.8%

>1                    160      28.0%     100        37.5%       1        1.6%       261        29.0%



Average household incomes reportedly range from below US $18 per month to in excess of US
$60 per month in Project area. According to Dai Tu district statistics, the average household
income is approximately US $324 per year (Dai Tu district, 2003). In contrast, Dai Tu town is
primarily non-farming and has a higher average household income of US $372 per year.




Nuiphaovica, Vietnam                                                                       Page 59

Nui Phao Mining Project                        Resettlement Action Plan                 Final 20-Jul-06



                                                      Table 3.21
                              Annual Household Income and Main Activities

             Income Sources                        Ha Thuong            Hung Son         Tan Linh

 Rice           No. of Households                      528                 175                6

                Average Income                     3.83 million         2.98 million     2.8 million

 Pig            No. of Households                      430                 101                14

                Average Income                     7.1 million          9.21 million     2.6 million

 Tea            No. of Households                      527                 225                68

                Average Income                     13.8 million         23.7 million    11.7 million

 Maise          No. of Households                      273                  29                3

                Average Income                     2.78 million         0.92 million    0. 63 million

 Other          No. of Households                      213                  46                2
 plants         Average Income                     2.36 million         1.81 million    0.85 million

 Fruits         No. of Households                      354                 105                27

                Average Income                     3.64 million         2.38 million    2.14 millions
Note: Average income is annual and reported in VND.

The results from surveyed households confirm that rice and tea are important sources of income
for Ha Thuong and Hung Son communes. Tea and fruit crops were reported as the most
significant sources of agricultural income for Tan Linh commune whilst animal husbandary
(particularly pigs) was reported as an income source in all communes. Income levels from tea
cultivation are clearly the highest in comparison to income levels from other agricultural
activities.

In general, the months of November through March are typically the most financially difficult
months for people in the study area because their overall household income is lower during the
dry season and expenses are higher. This period is particularly difficult for women, who lack
labour opportunities during the dry season. The highest period of household income is generally
June to October due to income from tea and rice harvests.

Expenditure

The socio-economic survey also recorded different expenditure of households and the main
expenses of respondents are shown in table 3.22.




Nuiphaovica, Vietnam                                                                          Page 60

Nui Phao Mining Project                      Resettlement Action Plan                Final 20-Jul-06



                                                    Table 3.22
                                        Annual Average Expenditure

                 Expenses                           Ha Thuong          Hung Son      Tan Linh
                                                      (VND)             (VND)          (VND)

 Electricity                                         556,000            854,500      1,715,900

 Fuel                                                1,354,000         1,117,000     1,211,000

 Meals                                              10,605,800         11,450,000    8,570,000

 Education                                           1,823,000         2,655,000     1,621,200

 Travel                                              1,213,000         2,638,000     1,018,000

 Beverage (tea/ beer/ alcohol) and cigarettes        815,000           1,266,800       852,900

 Securities                                          626,800            714,700        593,500

 Medical treatment                                   1,017,600         1,053,000     1,151,300

 Marriages and funerals                              1,119,000         1,784,000     1,100,000



Monthly expenditures range from approximately US$6.5/month to US$139/month. Food was the
most common household expenditure accounting for an average of 50 percent of total
expenditures. Other important expenditures are children's' tuition fees, farming expenses
including pesticides and fertilisers, electricity/gasoline, medicine, and husbandry. Other
significant monthly expenditures included club and union membership fees, brick making costs
(Phuc Linh), shaker table running costs (Ha Thuong), and small businesses. The highest period for
household expenditure is January because weddings are commonly scheduled at this time, and
expenses are high during Tet (Vietnamese New Year) celebrations.

Loans

Dai Tu is a mountainous district and therefore, it is subject to preferential loan policies from the
Bank for Social Policy, the Bank for Agriculture and Rural Development (BARD) and other
sources of special assistance such as the Central Government who have special schemes for the
mountainous region and for ethnic minority people (see also Section 5.1). Most households in the
Project area have loans from BARD with an average amount of more than one million VND and
an interest rate from 0.75% to 1.15%. The purpose of the loans is often to promote tea production
and animal husbandry. Because of the limitation on loans from the Banks, people also borrow
money from friends or relatives for economic development purposes. The borrowing and loans
status of households is summarised in table 3.23.




Nuiphaovica, Vietnam                                                                       Page 61

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



                                              Table 3.23
                    Borrowing and Loan Status of Households in the Project Area

       Criteria            Total         Ha Thuong         Hung Son    Tan Linh         Phuc Linh
                       Number   %     Number    %      Number    %   Number     %    Number      %

No. of households       486    48.5    307     48.1      132    45.2  45      65.2      2        66.7
with loans
Main Purposes
For living expenses      45    7.6      32      8.5      11      6.6   2       4.2      0        0.0

For living facilities    24    4.0      13      3.5       7      4.2   4       8.3      0        0.0
Economic                463    78.1    299     79.5      125    74.9  38      79.2      1        50.0
development
Other                    61    10.3     32      8.5      24     14.4   4       8.3      1        50.0

Loan Size
< 1 million VND          31    5.3      23      6.2       3      1.9   5      10.4      0        0.0

1-2 million VND          77    13.3     66     17.9       8      4.9   3       6.3      0        0.0

2-3 million VND         118    20.3     95     25.7      18     11.1   4       8.3      1        50.0

 3 million VND          355    61.1    185     50.1      133    82.1  36      75.0      1        50.0

Maturity
< 1 month                9     1.6       6      1.8       2      1.3   0       0.0      1        50.0

1-3 months               5     0.9       4      1.2       1      0.6   0       0.0      0        0.0

3-6 months               10    1.8       5      1.5       4      2.5   1       2.1      0        0.0

6-12 months              22    4.0      13      3.8       7      4.4   2       4.2      0        0.0

> 12 months             494    89.5    309     90.4      140    87.5  44      91.7      1        50.0

No time limit            12    2.2       5      1.5       6      3.8   1       2.1      0        0.0

Loan Sources
Form friends             54    9.5      39     10.6      13      8.4   2       4.3      0        0.0

From relatives           88    15.4     63     17.1      18     11.6   7      15.2      0        0.0

From Lenders             14    2.5       7      1.9       7      4.5   0       0.0      0        0.0

From Women's Union       42    7.4      10      2.7      31     20.0   1       2.2      0        0.0
From Farmer              15    2.6       7      1.9       7      4.5   1       2.2      0        0.0
Association
From BARD               286    50.1    180     48.9      72     46.5  33      71.7      1        50.0
From Bank for Social     28    4.9      24      6.5       2      1.3   1       2.2      1        50.0
Policy
Other                    44    7.7      38     10.3       5      3.2   1       2.2      0        0.0



3.3.12 Gender issues

Women are dominant in most agricultural activities. The Women's Unions and Farmer's
Associations have implemented a number of activities to help women who have difficulty in
accessing and effectively using loans. Survey results show the ratio of woman headed households
is less than one-third from the total interviewed households. The results of this analysis are shown
in table 3.24.




Nuiphaovica, Vietnam                                                                      Page 62

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



                                              Table 3.24
                               Male and Female Headed Households

    Sex             Total         Ha Thuong          Hung Son         Tan Linh          Phuc Linh

             Number      %     Number     %     Number        %    Number    %      Number        %

Male           729       72.8    448     70.2      220        75.3   60      87.0       1        33.3

Female         273       27.2    190     29.8       72        24.7    9      13.0       2        66.7

Total          1002     100.0    638     100.0     292       100.0   69     100.0       3       100.0



Leaders of the Women's Union in the communes commented that women would experience more
difficulties in relocating to new sites, and especially woman headed households. They
recommended some special care and assistance for these families. A gender survey conducted in
the area by specialists from the University of Calgary and Mount Royal College (Havers and
Giancarlo, 2004) also suggests that because women often work in agricultural areas, their income
security is particularly vulnerable to changes in agricultural conditions such as loss of land or land
contamination. Women generally rely on agriculture for their income that is limited during dry
season. Additionally, women tend to have less access to education and training opportunities.
Women of reproductive age, in particular, have been identified as a vulnerable group by
government officials due to a high rate of reproductive health problems within this age bracket in
the area.

3.4 Socioeconomic Conditions at the Relocation Sites

A sample survey of forty-six households from the proposed relocation sites was also conducted as
part of the socio-economic baseline survey (see Table 3.1). Residents from Xom Trai (in Binh
Thuan commune); Nam Song Cong (in Tien Hoi commune and Hung Son commune); Hung Son
no.2 and Hung Son no. 3 (in Hung Son commune); Lang Cam and Khe Thuy Tinh (in Ha Thuong
commune); Khe Vay (in Tan Linh commune) and Tan Lap site (in Cat Ne commune) were
surveyed and interviewed. Each of these communes is also located in Dai Tu district and
therefore the district level data and much of the commune-wide information is relevant to these
residents. Nonetheless, specific information drawn from the results of the survey are presented
for the relocation site areas to provide context and confirm the overall socio-economic conditions
in the area.

3.4.1 Demography

The year of settlement into these areas varies largely among those interviewed, however the
majority of households moved to Dai Tu district before the 1950s (more than 50%). The analysis
by communes and migration periods is given in table 3.25 below.




Nuiphaovica, Vietnam                                                                       Page 63

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



                                             Table 3.25
                              Period of Settlement in Dai Tu District


        Year           Total Number    Binh Thuan         Tien Hoi       Hung Son       Cat Ne
                       of Households

 Before 1950                 25             6                 2            15              2

 1950-1960                   3              1                 1            1               0

 1960-1970                   1              1                 0            0               0

 1970-1980                   1              0                 0            0               1

 1980-1990                   8              1                 0            6               1

 After 1990                  7              1                 0            3               3

 No answer                   1              0                 0            1               0



Analysis on distribution of ages is given in table 3.26. This data shows consistency between the
households in the Project area and the proposed relocation sites.

                                             Table 3.26
                             Age Distribution of Surveyed Population


                                    Total
     Age           Unit                                Binh       Tien Hoi  Hung Son      Cat Ne
                             Number        %          Thuan

 Under 7          Person       13         6.0            4           0          4            5

 7-18             Person       49         22.5          11           3         28            7

 18-60            Person       130        59.6          25          10         82           13

 Over 60          Person       26         11.9           3           1         15            7

 Total            Person       218       100.0          43          14         129          32



3.4.2 Education

In general, residents in these areas also have a low education levels, consistent with those in the
Project area however, nobody under 18 years of age reportedly leaves school. Results of the
analysis are shown in tables 3.27 below.




Nuiphaovica, Vietnam                                                                    Page 64

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06



                                               Table 3.27
                                   Education and Training Levels


      Educational level            Total         Binh Thuan      Tien Hoi  Hung Son        Cat Ne

                           Number        %

 Illiterate                    9        4.1            1            0          5              3

 Primary School               42        19.3          10            2          20             10

 Secondary School             81        37.2          15            7          50             9

 High School                  60        27.5          14            5          41             0

 Under school age             26        11.9           3            0          13            10

 Specialised High School       4          0            1            3          0              0

 College                       2          0            0            2          0              0

 University, Post-graduate     7          0            0            7          0              0

 Primary Training Course       2          0            0            2          0              0



Some households in Cat Ne are in a remote area from the commune centre. The closest primary
and secondary schools are 3 km away and the high school is about 15 km from their homes, thus,
it is not easy for their children to continue with high school education. Overall education levels in
these communes are considered similar to those of the other communes.

3.4.3 Occupations and Livelihoods

Most people are farmers and very few reported working and earning an income from other
sources. There are 38 household heads having a main job in agriculture, three other household
heads reported being state cadres, and three were in other employment. Two household heads
have no working ability. Among the 46 households, only 14 household heads have second jobs
and these jobs include trading, services and agricultural processing (five people), farming (three
people), hired jobs (four people) and handicraft (one person) and one person is a commune
policeman. The results of the survey on employment and livelihoods for households at relocation
sites are shown in table 3.28.




Nuiphaovica, Vietnam                                                                      Page 65

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



                                             Table 3.28
               Main and Secondary Occupation of Interviewed Household Heads


 Main and Secondary Job of    Unit     Total    Binh Thuan     Tien Hoi   Hung Son       Cat Ne
    Head of Households

1. Main jobs                 Person      38            8          3          20             7
Farmer

Handicrafter                 Person      0             0          0           0             0

Worker                       Person      1             0          0           1             0

State cadre                  Person      3             0          0           3             0

Commerce, service, farm      Person      1             0          0           1             0
product processing

Police, Soldier              Person      0             0          0           0             0

Other employment             Person      1             1          0           0             0

Not working                  Person      2             1          0           1             0

2. Secondary jobs            Person      3             0          0           3             0
Farmer

Handicrafter                 Person      1             0          0           1             0

Worker                       Person      0             0          0           0             0

Commerce, service, farm      Person      5             0          0           5             0
product processing

Police, Soldier              Person      1             0          0           1             0

Other employment             Person      4             2          1           0             1



Farmer is the primary occupation for approximately 80 percent of surveyed households in the
relocation site communes, which is consistent with other communes where farming is from
approximately 50 percent to over 80 percent likely to be the primary household occupation.

3.4.4 Other Conditions

Water and Fuel Resources

All forty-six households use manually dug wells. Two households in Cat Ne and one in Hung Son
specifically reported that their well water was turbid and dirty and one household in Binh Thuan
commented that their well water was of poor quality. Generally, other residents reported that their
well water was pure and of good quality. Water shortages are reportedly rare in these areas except
during the dry season.

The main fuel resources which local people have been using are firewood and coal. Only a few
households can afford to use gas.




Nuiphaovica, Vietnam                                                                    Page 66

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



Diseases and Health Care

A breakdown of the most common diseases is shown in table 3.29 below, it shows colds and
neural conditions appear to be more frequent than other illnesses.

                                             Table 3.29
                                   Common Disease Frequency


            Common Diseases                     Frequency                 Number of People

Cold, flu                                          Often                          6

                                                Sometimes                         8

                                                   Total                         14

Respiratory diseases                               Often                          1

                                                Sometimes                         2

                                                   Total                          3

Digestion diseases                                 Often                          7

                                                Sometimes                         0

                                                   Total                          7

Arthritis and Bone-related diseases                Often                          4

                                                Sometimes                         4

                                                   Total                          8

Skin-related diseases                              Often                          1

                                                Sometimes                         1

                                                   Total                          2

Neural Diseases                                    Often                          2

                                                Sometimes                         7

                                                   Total                         10



The following specific conditions were reported in the communes: Binh Thuan: there were neural
diseases, cancers, backache, deaf-and-dumb and deformed children; Tien Hoi: None
communicable diseases were reported; Hung Son: Japanese encephalitis, toothache, neural
diseases, cancers, B hepatitis, diarrhoea, backache, deformed children and micro-bacteria fevers;
and Cat Ne: arthritis, toothache, headache, neural diseases, cancers, malaria, B hepatitis, sore
eyes, diarrhea and stomachache.

There is a clinic in each commune and there are some villages with a health-care worker. People
commented that health-care services are still not very good and need to be improved. Health
conditions and health care arrangements are considered similar to those of other communes.




Nuiphaovica, Vietnam                                                                    Page 67

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



Electricity, Road, Communication and Irrigation Networks

All surveyed households have electricity and 42 households reportedly get their power supply
from the national grid and 4 households in Cat Ne use their own mini hydropower generators
located in streams near their houses.

Access roads to the centres of communes are aggregate roads and roads to villages are in a poor
condition making access difficult in the rainy season, as is similar in other communes. Basic
communication services such as telephone, mail and newspapers are currently provided to the
commune centres. Among the 46 households interviewed only 6 households in Hung Son
commune have telephones.

Farm irrigation systems are present in some areas but they do not generally work effectively
because of poor management and lack of budget for maintenance. Some low areas along the Cong
River are frequently flooded in the rainy seasons.

Income and Expenditure

The average income for households in Cat Ne commune is VND 206,100 per head per month
which is the lowest, while income of households in Hung Son is the highest at approximately
VND 439,700 (per head per month). With an average of one to two household members operating
in some form of income generating activity these figures are consistent with other communes,
although do indicate potentially low incomes in some of the areas. Most interviewed households
had loans either for economic development or family expenditures. A summary of income,
expenditure and loan data for residents at the proposed relocation sites is shown in tables 3.30,
3.31 and 3.32.

                                             Table 3.30
               Average Income Per Capita per Month of Interviewed Households


            Income             Unit      Total        Cat Ne    Tien Hoi  Hung Son      Binh Thuan

Average per capita per month   VND      368,500      206,100    299,000     439,700      318,100

Average higher income group    VND     1,000,000     320,000    410,000    1000,000      550,000




Nuiphaovica, Vietnam                                                                    Page 68

Nui Phao Mining Project                     Resettlement Action Plan                  Final 20-Jul-06



                                                   Table 3.31
                              Average Expenses of Interviewed Households


                        Expenses                                         Amount (VND)

Electricity bill                                                           470,217

Fuel bill                                                                  647,826

Meals                                                                      9,732,174

Education fees                                                             1,514,565

Travel fees                                                                756,522

Beverage (tea/ beer/ alcohol) and cigarettes                               658,478

Other monthly expenses                                                     307,391

Health care expenses                                                       678,261

Marriages and funerals                                                     1,020,652

Total                                                                     15,786,087



                                                   Table 3.32
                  Borrowing and Loan Status of Households at Relocation Sites


      Details           Total     Friends   Relatives   Lenders Women's Bank for Bank for     Others
                                                                    Union  ARD      Social
                                                                                    Policy

Number of loans          34          1          8           2        3       13      3           4

Purposes

Living expenses          3            0         2           0        0       0       0           1

Buying things            1           0          0           1        0       0       0           0

Production               28          1          6           1        2       13      2           3
investment

Others                   2           0          0           0        1       0       1           0

Loan Size

< 1 million VND          2            0         0           0        0       2       0           0

1-2 million VND          1           0          0           0        0       0       1           0

2-3 million VND          8           1          2           1        0       3       0           1

 3 million VND           22          0          6           1        3       8       1           3

Maturity

< 1 month                0           0          0           0        0       0       0           0

1-3 months               0           0          0           0        0       0       0           0

3-6 months               1           0          0           0        0       1       0           0

6-12 months              1           0          0           1        0       0       0           0

> 12 months              30          1          7           1        3       12      2           4

No time limit            1           0          1           0        0       0       0           0




Nuiphaovica, Vietnam                                                                        Page 69

Nui Phao Mining Project                 Resettlement Action Plan                        Final 20-Jul-06



These households are also located within Dai Tu district and therefore subject to preferential loan
policies as described previously. From the surveyed households, 34 reported having a loan of one
type or another.

3.5 Businesses in the Project Area

A number of small businesses are located along National Road No. 37 and thirty-seven businesses
were identified within the proposed Project area. These businesses are small retail outlets offering
refreshments such as drinks, snacks and some groceries. All 37 families operating these
businesses have other income sources, mostly agricultural activities. One commercial business is
also located in the Project area. This business was owned by INTRACO but is no longer in
operation. INTRACO is a Nuiphaovica joint venture partner (see also Section 1.1).

3.6 Ethnic Minority Groups ­ a Specific Socio-Economic Assessment

Nuiphaovica contracted the Development Research and Consultancy Centre (DRCC) an
organisation experienced with World Bank policies and social safeguards, to study the Ethnic
Minority People in the area to determine if the World Bank policy on Indigenous Peoples (OP
4.10) would be triggered. The DRCC carried out the study in September, 2005 and prepared a
stand alone report (DRCC, 2005).

According to OP 4.10 on Indigenous Peoples, the term of "Indigenous Peoples" may be referred
to in different countries by such terms as "Indigenous Ethnic Minorities"; "aboriginals"; hill
tribes"; "minority nationalities" etc. The purpose of the policy is to refer to a distinct, vulnerable,
social and cultural group posessing the following characteristics in varying degrees:

        · Self-identification as members of a distinct indigenous cultural group and recognition
             of this identity by others;

        · Collective attachment to geographically distinct habitats or ancestral territories in the
             project area and to the natural resources in these habitats and territories;

        · Customary cultural, economic, social, or political institutions that are separate from
             those of the dominant society and culture; and

        · An indigenous language, often different from the official language of the country or
             region.

A group that has lost collective attachment to geographically distinct habitats or ancestral
territories in the project area because of forced severance remains eligible for coverage under this
policy. As such, Policy OP 4.10 will be triggered if:

        · The project will cause adverse effects to Communities of Indigenous Ethnic Minorities
             (individuals not to be considered);

        · There are Indigenous Ethnic Minorities living in the project areas; and


Nuiphaovica, Vietnam                                                                          Page 70

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06



        · The Indigenous Ethnic Minorities are vulnerable.

The DRCC carried out its study by reviewing the documents listed below and conducting a site
visit (including meetings and interviews with local people and authorities):

        · Special reports on socioeconomic surveys, and results from the census and inventory
            which were completed by consultants in 2004 for Nuiphaovica;

        · The Project Resettlement Policy; and

        · The interim and final Resettlement Action Plans.

The site visit included meetings with local authorities and local Ethnic Minorities (EM). In-depth
interviews were conducted with 30 families including 15 ethnic minority families (05 in Ha
Thuong; 05 in Hung Son and 05 in Tan Linh) and 15 Kinh families (05 in Ha Thuong; 05 in Hung
Son and 05 in Tan Linh) to compare and analyse similarities and differences.

The general conclusions and recommendations of the DRCC are summarised below, together with
a socio-economic comparison between ethnic minority groups and the majority population.

3.6.1 Overview of Ethnic Minorities Conditions

The Ethnic Minorities in the Project area include Cao Lan, Tay and Nung people who are mainly
concentrated in villages 1, 2, 3, 4, 5, and 6 of Ha Thung commune. A few families are living in
Village 1 of Hung Son commune and only two families live in Tan Linh commune.

Most ethnic minority families moved from Northern mountainous provinces (eg. Lang Son, Cao
Bang, etc.) to the Project area around the 1940's. The Kinh people moved from the delta regions
to Dai Tu district a little later (Cao Lan people moved into the area with Kinh people around
1940's) other groups such as Tay and Nung recently migrated to Dai Tu district after the 1940's
(from Cao Bang and Lang Son provinces and in fact, they were individually moved to the Project
region).

The Ethnic Minorities in the Project area live together (integrated) with Kinh people and there is
no village housing a single ethnic minority group. Therefore, all the Ethnic Minority People in the
Project area can speak fluent Vietnamese, they do not have their scripts and their children study in
the same schools as the Kinh pupils and all speak Vietnamese. In fact most young people of
ethnic minorities cannot speak their ancestral language.

Observations show it is difficult to identify differences between Ethnic minorities and Kinh
people in the Project area (both have the same type of housing, clothes, economic activities etc.).
The subject ethnic minority groups do not have any collective attachment to geographically
distinct habitats or ancestral territories in the Project area. They do not have economic, social or
political institutions that are separate from those of the dominant society and culture. They earn
their living using the same economic activities as the Kinh people (tea planting, rice growing,



Nuiphaovica, Vietnam                                                                      Page 71

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



husbandry and operating small businesses etc.) and have the same level of income as Kinh people
(approximately VND 8.5 million per capita annually).

The ratio of households living below the poverty line is low. Close observation of the ethnic
minorities living in the Project area reveal they are well developed and their living standards are
at the same level as Kinh people.

As with Kinh families, the ethnic minorities have been granted Land Use Right Certificates (red
book) and on average each family was allocated approximately 1,000m2 of low agricultural land
for rice growing, 1,000m2 of hilly land for cash crops and about 500m2 for residential and garden
land. The ethnic minorities have access to all the social services of the community such as health
care, schools, irrigation systems, markets, community hall etc. and have access to loans from the
Government for the purpose of poverty reduction. Ethnic Minority People are often leaders of
their commune, for example the commune party leader of Ha Thuong is from an ethnic minority
group.

The investigation also revealed that the ethnic minority population who complete primary school
level is 13.3% (Kinh is 13.3%); who complete secondary school level is 46.7% (Kinh is 60%);
and who complete high school level is 6.7% (Kinh is 6.7%).

Table 3.33 below provides details of the number of ethnic minority households living in the
Project area and at proposed relocation sites and gives a comparison between ethnic minorities
and the total population for key socio-economic statistics. This comparison supports the socio-
economic conditions noted in the DRCC study.




Nuiphaovica, Vietnam                                                                     Page 72

Nui Phao Mining Project                         Resettlement Action Plan                               Final 20-Jul-06



                                                        Table 3.33
      Key Information and Comparison of the Ethnic Minorities versus Total Population


                    Item                                     Total               Hung Son     Ha Thuong      Tan Linh

Number of Ethnic Minorities affected HH:                      103                     24          77              2
- In the Project area                                         77                      10          65              2
- At the proposed relocation sites                            26                      14          12              0

Average family size                                      EM = 3.61
                                                     Total Pop. = 4.02

Number EM with agricultural land                              75                      6           67              2

Number EM with residential land/building                      58                      11          45              2

Families with children in primary school                      35                      24           9              2

Families with children in secondary school                    36                      2           32              2

Families with children in high school                         30                      8           22              0

Children stopping schooling                             EM = 0.9%                     0            1              0
                                                    Total Pop. = 8.1%

Average annual income per capita                      EM = 8,500,000             10,200,000    6,800,000     6,750,000
                                                  Total Pop. = 8,400,000         10,270,000    6,600,000     6,680,000

Average agricultural land holding                     Hectare per HH
                                                                        EM          6,568        4,065         11,780
                                                     Total Population               2,560        2,494          2,770

Average residential land holding                              m2
                                                                        EM          1,038         344            710
                                                     Total Population                680          619            651

Families under the poverty line (MOLISA               EM = 9 (8.7%)                   3            6              0
criteria)                                          Tot. Pop = 65 (5.7%)               19          40              6

Families that have a television                      EM = 101 (98%)              22 (91.6%)   77 (100%)       2 (100%)
                                                  Tot Pop = 992 (86%).          301 (91.7%)   598 (83.8%)    93 (84.5%)

Families that have a motorbike                       EM = 60 (59.2%)             24 (100%)    36 (46.8%)          0
                                                 Tot. Pop = 758 (65.8%)          262 (80%)    414 (58%)      82 (74.5%)

Families with electricity                           EM = 103 (100%)                   24          77              2
                                                 Tot. Pop = 1,153 (100%)             329          714            110

Families with domestic water (drilled well,           EM = 98 (95%)                   24          72              2
tube wells etc)                                  Tot. Pop = 1,106 (96%)              316          680            110

Notes: EM is Ethnic Minority. Unless otherwise stated data is presented for household/family.




Nuiphaovica, Vietnam                                                                                         Page 73

Nui Phao Mining Project               Resettlement Action Plan                       Final 20-Jul-06



3.6.2 General Conclusions and Recommendations

The DRCC report made the following general conclusions about ethnic minorities within the
Project area and the Nuiphaovica activities and management of related socio-economic issues
during the resettlement and relocation process:

       · Nuiphaovica and its consultants have carried out a substantial amount of work on
            social and environmental screening, consulted with local unions/NGOs and local
            people and different ethnic minority groups, as well as encouraged them to participate
            in the many different programs and plans;

       · Ethnic Minorities in the Project area are living together with Kinh people and their
            economic status, educational level, cultural identities etc. as well as physical
            infrastructure and access to social services are not substantially different to that of the
            neighbouring Kinh people;

       · As with the majority of people the Ethnic Minorities in the Project area will mainly be
            affected by land acquisition. Ethnic Minorities will be affected by land acquisition, but
            individually they will not be affected when it comes to a question of impact on
            ancestral resourses and ancestral rights;

       · Ethnic Minorities in the Project area are not considered a specific vulnerable group
            although experience from previous World Bank financed projects in Viet Nam (e.g.
            Rural Energy No.2; Me Kong Transport Project) shows it is good practice to
            specifically assess Ethnic Minorities and their particular socio-economic conditions
            and needs.

       · Nuiphaovica has set out detailed proposals for activities and programs which will be
            developed during the resettlement program implementation phase for Ethnic
            Minorities based on consultation with the Women's Union of Dai Tu district, affected
            communities, ethnic minority groups and other key stakeholders. An amount of VND
            750,000,000 has been reserved for Ethnic Minority Development Programs which will
            be further developed as the Project progresses (see also Section 5.4).

Consultation with Ethnic Minority People are documented by Nuiphaovica and in general ethnic
minorities expressed their support for the Project but requested assistance from local authorities
and the Company to help them quickly restore and improve their livelihoods after relocation. The
DRCC recommends that any Ethnic Minority programs continue to be developed based on
consultation with, and participation of Ethnic Minorities, local unions and local authorities. It is
also suggested that a relevant anthropologist be utilised by Nuiphaovica for the development of
such programs. The plans should be monitored and evaluated by an independent monitoring
agency. In addition, Nuiphaovica public consultation and disclosure activities should contain
specific actions relevant to Ethnic Minorities.



Nuiphaovica, Vietnam                                                                       Page 74

Nui Phao Mining Project                Resettlement Action Plan                   Final 20-Jul-06



The resettlement and compensation program should be implemented in accordance with the
policies set forth in this Resettlement Action Plan and should be carefully monitored to make sure
that affected Ethnic Minorities as well as other affected persons will not be worse off after
relocation.




Nuiphaovica, Vietnam                                                                    Page 75

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



  CHAPTER 4.              CENSUS AND INVENTORY OF LAND ACQUISITION
                                                         IMPACTS

4.1 Census and Inventory Process

A census and inventory on land acquisition impacts to categorise impacts, determine entitlements
and prepare cost estimates and schedules was conducted in August to September 2004 by
Mapping Enterprise No.1, who are managed under the Ministry for Agriculture and Rural
Development (MARD). The census and inventory was conducted in conjunction with the Socio-
Economic Baseline Survey (see Section 3.1).

Data for the census and inventory were collected at the household level for the resettlement
programme and included details on affected land and assets, household structures and basic socio-
economic status for each household (e.g. household size, age, gender, relationships etc). The
census and inventory was conducted by visiting every affected household and administering
surveys and individual discussions. The census and inventory was conducted for households with
houses and land located in the operational area and at proposed relocation sites and farm fields
located in these areas but with people who reside elsewhere. The team performed a cadastral
survey of all land in the operational areas and at proposed relocation sites for agricultural land and
associated assets. Teams demarcated residential and garden lands in the presence of affected
households and recorded the presence and status of any buildings.

A separate Census and Inventory Report was prepared by the consultants and this report has been
used to compile a database of impacts for each affected household. The database also contains
detailed information about affected public works and infrastructure. This database is used as the
baseline for the Detailed Measurement Survey which will be completed for all affected
households, public infrastructure and other assets to determine final compensation packages,
entitlements and eligibility to various allowances and programs (see also Section 4.8). A summary
of key results from the census and inventory are summarised in the following sections.

4.2 Efforts to Minimise Land Acquisition and Resettlement

Nuiphaovica has minimised the scope of physical and economic displacement associated with the
Project through a number of actions, including:

       · Minimising the size of Project components and the distances between them;

       · Minimising buffer zones around Project components without comprising safety and
            other factors;

       · Restricting the land acquisition boundary to only the area directly required for mine
            operations; and

       · Encouraging relocation site options located in less populated areas.




Nuiphaovica, Vietnam                                                                      Page 76

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



The Company has an investment license with a total land lease area of 921.3 ha, however after
efforts to minimise land acquisition and other potentially adverse impacts, the Project will only
acquire land for the direct operational area required for the mine and facilities which is about 445
ha. Therefore, persons who have land and other assets in the 445 ha operational area will be
affected and the residents will have to be relocated to new areas. As a result of a reduced
operational area, requirements for land at relocation sites have also been reduced. Farming is
likely to be able to be continued on approximately 140 ha of the operational area as only about
305 ha is directly required for the operation. The current land requirement for relocation sites is
approximately 56 ha.

The amount of land to be acquired has been reduced in several steps during the design of the
Project. Initially the area was reduced from 921.3 ha to 640 ha (calculated in September, 2004)
then a further reduction to 593 ha was proposed (calculated in October, 2004). Final design and
engineering studies as detailed in the updated Feasibility Study (Aker Kvaerner, 2005) completed
in July 2005, has subsequently reduced the operational area to 445 ha.

With these efforts, the total number of affected households has been reduced from 1,556
households (with the original land lease area) to 1,153 households (with the new operational
area). The number of households who will physically be relocated from the operational area has
been reduced from 1,091 to 793 households.

4.3 Summary of Impacts

4.3.1 Project Affected Communities

The communes of Ha Thuong, Hung Son and Tan Linh are partially affected by the mine
footprint, known as the operational area. The commune of Ha Thuong is most severely affected,
followed by Hung Son and then Tan Linh. Phuc Linh commune is located downstream of the
operational area and may be affected as a result of neighbouring Project activities.

The communes of Ha Thuong, Hung Son, Tien Hoi, Cat Ne and Quan Chu are affected by
proposed relocation sites. It is noted that the proposed relocation site of Xom Trai (see Section
7.8.2) is located in Bin Thuan commune, however at the time of writing it is unlikely that this site
will be developed due to lack of interest from affected households. These communes are all
located within Dai Tu district. Figure 1.2 shows the commune boundaries, proposed relocation
sites and the Project operational area.

4.3.2 Project Affected Households

The Project will cause impacts not only on physical displacement but also on economic activities
and income generation, especially when acquiring productive land for the Project. Land will be
acquired for the "operational area" and for proposed "relocation sites". Affected households can
therefore be classified as "resident households" including those whose residential land and
structures are affected and "non-resident households" that are impacted by agricultural land only
but are not physically displaced.

Nuiphaovica, Vietnam                                                                     Page 77

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06



Resident Households

Resident households are those owning houses in the operational area or at relocation sites that
were built on or before 12 May 2004 (the "Cut-Off Date"). These households will be physically
and economically displaced and are eligible for compensation and resettlement assistance.
Affected households typically include residential structures, their non-residential annexes, a yard
and possibly a garden. These households are also generally affected by loss of associated
agricultural land.

The majority of resident households that are required to move reside in the operational area. Most
of the relocation sites are located on existing agricultural land and those households who do have
residences that will be affected at relocation sites will be rearranged within the existing location
and will not be required to move to a new area.

The total number of affected residential structures is 884. This comprises 793 houses located
within the operational area and 91 houses affected at relocation sites.

Non-resident Households

Non-resident households are those residing outside the operational area or relocation sites but that
possess land, usage rights or businesses within these locations. These households are
economically displaced by the Project and are eligible for compensation and resettlement
assistance. The total number of households affected by loss of productive land only is 1,026
households.

Therefore, the total number of households affected by residential land and structures and/or
agricultural land loss is 1,910 households with a population of 7,464 persons.

4.3.3 Land, Structures and People

In addition to the impacts on residences and agricultural land, some public works and
infrastructure will also be affected by Project development. The different impacts to people, land
and structures as they are estimated in May 2006 are summarised in table 4.1.




Nuiphaovica, Vietnam                                                                    Page 78

Nui Phao Mining Project                         Resettlement Action Plan                                     Final 20-Jul-06



                                                         Table 4.1
                            Summary of Project Impacts due to Land Acquisition


            Affected Category                      No.                              Summary of impacts

 Total number of households affected by     1, 910 households Number of households affected by agricultural and residential
 land acquisition (resident and non-                          land and assets
 resident households)

 Number of households who are affected       884 households   Number of households that are affected by residential land and
 by residential land (resident                                will be physically displaced. Note: Of these 884 households
 households)                                                  only 793 are physically required to move

 Number of households who are affected      1,026 households  Number of households who own or occupy land in the affected
 by agricultural land only (non-resident                      areas but who reside elsewhere
 households)

 Area of agricultural land impacted by           347 ha       The current inventory of agricultural / productive land to be
 the Project footprint and relocation sites                   acquired for the Project

 Total area of land impacted for the mine        445 ha       Area of land required to develop the Project mine and
 footprint (operational area)                                 associated facilities including a safety/buffer zone.

 Area of land impacted for residential            56 ha       Area of land that has been identified for development of
 relocation sites                                             relocation sites (residential and a site for economic restoration
                                                              programs).

 Impacted public facilities and                  Various      Local commune and village infrastructure affected by the
 infrastructure                                               resettlement programme, e.g. village halls, schools and health
                                                              clinics etc.

 Impacted prayer house and cemetries           2 cemetries    A prayer house located in Ha Thuong commune will be
                                             1 prayer house   impacted by Project development.Two cemetries, one in Ha
                                                              Thuong commune and one in Hung Son commune will also be
                                                              affected.

 Number of businesses affected                     37         Thirty-seven small roadside businesses will be affected by
                                                              realignment of a segment of National Road No. 37.



Further details on impacts for the operational area and at relocation sites are provided in the
following sections. Data is broken down by communes, locations and other key indicators.

4.4 Impacts of Land Acquisition in the Operational Area (445 ha)

The total number of affected households in the 445 ha operational area is about 1,153 households
with population of 4,276 persons. The number of households that have to be physically relocated
is about 793 households with a population of 2,942 persons. Analysis of the census and
inventory by each operational sector and administrative unit is shown in the following tables 4.2,
4.3 and 4.4.




Nuiphaovica, Vietnam                                                                                              Page 79

Nui Phao Mining Project                      Resettlement Action Plan                            Final 20-Jul-06



                                                    Table 4.2
                   Households and their Assets in the Operational Area by Sector


                      Item                      Ha Thuong          Hung Son        Tan Linh             Total

          Total number of HH/Head                714 / 2,592       329 / 1,225     110 / 459         1,153 / 4,276

Sector 1: Realignments of road, rail-way

·    Total number of HH/Head                        43/172           43/173     not applicable to       86/345
·    Number of HH affected on residential land      30/116           36/147        this sector          66/263
     with houses to be relocated
·    Total house area (m2)                          2,149            3,347                              5,496
·    Number of HH with residential land              1/3              5/18                               6/21
     without house on land/Head
·    Residential land area (m2)                     25,649           26,619                             52,268
·    Number of HH affected agricultural             36/138           31/138                             67/276

     land/Head
·    Agricultural land area (m2)                    54,145           58,829                            112,974

·    Number of PAP affected on trees and            43/172           43/173                             86/345

     annual crop


Sector 2: Plant site

·    Total number of HH/Head                       208/664           27/112     not applicable to      235/776
·    Number of HH affected on residential land     148/476           10/37         this sector         158/513
     with houses to be relocated
·    Total house area (m2)                          10,892            919                               11,811
·    Number of HH with residential land             31/69             1/6                               32/75
     without house on land/Head.
·    Residential land area (m2)                     99,945           10,359                            110,304
·    Number of HH affected agricultural            127/490           28/120                            155/610

     land/Head
·    Agricultural land area (m2)                   148,147           28,421                            176,568

·    Number of PAP affected on trees and           208/664           27/112                            235/776

     annual crop

Sector 3: Pit and waste areas

·    Total number of HH/Head                      319/1,224          19/69           17/73             355/1,366
·    Number of HH affected on residential land     241/934           11/40           13/56             265/1030
     with houses to be relocated.
·    Total house area (m2)                          20,846            984            1,297              23,127
·    Number of HH with residential land             21/70             3/9             1/4               25/83
     without house on land/Head
·    Residential land area (m2)                    218,891           6,372          25,910             251,173
·    Number of HH affected agricultural           307/1,215          28/128           9/41             344/1,384

     land/Head
·    Agricultural land area (m2)                   932,265           38,184         16,163             986,612

·    Number of PAP affected on trees and          319/1,224          19/69           17/73             355/1,366

     annual crop




Nuiphaovica, Vietnam                                                                                  Page 80

Nui Phao Mining Project                      Resettlement Action Plan                               Final 20-Jul-06



                      Item                      Ha Thuong          Hung Son           Tan Linh              Total

Sector 4: Tailings dams

·    Total number of HH/Head                        50/204       not applicable to not applicable to       50/204
·    Number of HH affected on residential land      19/64           this sector       this sector           19/64
     with houses to be relocated
·    Total house area (m2)                          1,433                                                   1,433
·    Number of HH with residential land               0                                                       0
     without house on land/Head
·    Residential land area (m2)                     17,326                                                 17,326
·    Number of HH affected agricultural             96/377                                                 96/377

     land/Head
·    Agricultural land area (m2)                   212,478                                                212,478

·    Number of PAP affected on trees and            50/204                                                 50/204

     annual crop

Sector 5: Tailings area

·    Total number of HH/Head                        76/260       not applicable to not applicable to       76/260
·    Number of HH affected on residential land      50/166          this sector       this sector          50/166
     with houses houses to be relocated
·    Total house area (m2)                          4,364                                                   4,364
·    Number of HH with residential land              4/7                                                     4/7
     without house on land/Head
·    Residential land area (m2)                     65,560                                                 65,560
·    Number of HH affected agricultural            102/376                                                102/376

     land/Head
·    Agricultural land area (m2)                   351,782                                                351,782

·    Number of PAP affected on trees and            76/260                                                 76/260

     annual crop


Sector 6: Pit extension and safety area

·    Total number of HH/Head                        18/68            240/871           93/386             351/1,325
·    Number of HH affected on residential land       7/30            200/762           28/114             235/906
     with houses to be relocated
·    Total house area (m2)                           605             20,603             2,540              23,748
·    Number of HH with residential land              4/11             20/42                0                24/53
     without house on land/Head.
·    Residential land area (m2)                     15,012           180,626           46,053             241,691
·    Number of HH affected agricultural             29/122           175/681           78/334             282/1,137

     land/Head
·    Agricultural land area (m2)                    81,658           717,010           288,550            1,087,218

·    Number of PAP affected on trees and            18/68            240/871           93/386             351/1,325

     annual crop




Nuiphaovica, Vietnam                                                                                     Page 81

Nui Phao Mining Project                  Resettlement Action Plan                         Final 20-Jul-06



                                                 Table 4.3
                 Summary of Households and their Assets in the Operational Area


Sector     Total   Total HH affected     Residential  HH affected   House area   HH affected    Agricultural
           PAP      head      by          land area        by         (m2)            by         land area
           (HH)           residential       (m2)      residential                agricultural      (m2)
                          land (with                  land (with                     land
                         and without                   houses on
                          houses on                       land)
                            land)

   1        86      345       72           52,268          66         5,496           67          112,974

   2        235     776      190           110,034         158       11,811          155          176,568

   3        355    1,366     290           251,173         265       23,127          344          986,612

   4        50      204       19           17,326          19         1,433           96          212,478

   5        76      260       54           65,560          50         4,364          102          351,782

   6        351    1,325     259           241,691         235       23,748          282         1,087,218

Total      1,153   4,276     884           738,335         793       69,979         1,046        2,927,632




                                                 Table 4.4
                       Impacts on Land by Administrative Units (Communes)


       Commune           Sector    Total Number of   Total Number of       Affected            Affected
                                     Affected HH           Head        Residential Land   Agricultural Land
                                                                             (m2)                (m2)

                           1             43                 172             25,649              54,145

                           2             208                664             99,945             148,147

                           3             319               1,224            218,891            932,265
Ha Thuong
                           4             50                 204             17,326             212,478

                           5             76                 260             65,560             351,782

                           6             18                  68             15,012              81,658

Sub-total (Ha Thuong)                    714               2,592            442,383           1,780,475

                           1             43                 173             26,619              58,829

                           2             27                 112             10,359              28,421

                           3             19                  69              6,372              38,184
Hung Son
                           4              0                  0                 0                  0

                           5              0                  0                 0                  0

                           6             240                871             180,626            717,010

Sub-total (Hung Son)                     329               1,225            223,976            842,444

                           1              0                  0                 0                  0

                           2              0                  0                 0                  0

                           3             17                  73             25,910              16,163
Tan Linh
                           4              0                  0                 0                  0

                           5              0                  0                 0                  0

                           6             93                 386             46,053             288,550

Sub-total (Tan Linh)                     110                459             71,963             304,713

Grand-total                             1,153              4,276            738,335           2,927,632


Nuiphaovica, Vietnam                                                                           Page 82

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



4.5 Impacts of Land Acquisition at Proposed Relocation Sites

The number of households affected by the acquisition of land for the residential relocation sites
and the market centre site is 637 households with a population of 2,600 persons, of which 83
households with 331 people will lose land and a house, while the balance will lose agricultural
land only.

The number of households affected by land acquisition for the new cemeteries and for the army
facilities at the Tan Lap site is 120 housesholds with a population of 588 persons, of which and
estimated 8 households will have their buildings affected. Land acquisition impacts by proposed
relocation sites are summarised in table 4.5. See Section 7.8 for further details on the proposed
relocation sites.




Nuiphaovica, Vietnam                                                                   Page 83

Nui Phao Mining Project                                          Resettlement Action Plan                                             Final 20-Jul-06




                                                                     Table 4.5
                       Land Acquisition Impacts by Proposed Relocation Sites, New Site For Army Facilities and New Cemeteries


           Site              Commune          Total HH    Total    HH affected on     Residential land  House area HH affected  Agricultural land
                                                          Person   residential land        area           (m2)         on             area
                                                                   (with houses on         (m2)                    agricultural       (m2)
                                                                        land)                                         land

 Nam Song Cong                   P1: Hung Son   224       1,034          36                9,328          2,725        224          148,661
 (Phase 1 & 2)                   P2: Tien Hoi

 Xom Trai                         Binh Thuan    167        835           25                8,366          1,250        167           75,294

 Hung Son 2                          Hung Son   108        415           17                4,155          745          108           50,245

 Market Centre and                   Hung Son    60         32            0                  0              0          60            26,761
 Handicraft Workshop

 Hung Son 3                          Hung Son    33        115            5                2,100          570          33            72,100

 Khe Thuy Tinh                     Ha Thuong     45        169            0                  0              0          45           165,837

 Tan Lap site for army                Cat Ne    112        560            8                  0            215          112          1,300,000
 facilities                         Quan Chu

 New cemeteries                    Ha Thuong     8          28            0                  0              0           8            30,700
                                     Hung Son

 Total                                          757       3,188          91               23,949          5,505        757          1,869,598



There are no common property natural resources within the Project area where people can derive their livelihood and sustenance, nor non-title based
systems such as fishing, grazing and/or the use of forest areas. Illegal mining operations by individuals will be documented during the Detailed
Measurement Survey (see Section 4.8.1) for each sector.




Nuiphaovica, Vietnam                                                                                                                          Page 84

Nui Phao Mining Project                     Resettlement Action Plan                  Final 20-Jul-06



4.6 Affected Institutions and Public Infrastructure

Public works and social infrastructure will also be affected by Project development. Collective
assets and public works which will be affected in the Project operational area are shown in table
4.6 below. So far no pubic works or associated infrastructure is expected to be affected at
proposed relocation sites.

                                                   Table 4.6
                               Affected Public Works and Collective Assets


                              Details                                 Location         Quantity

 National Road No.37                                                 Sectors 2,3,6      2.64 km

 Railway to Nui Hong                                                 Sectors 2,3,6       2.7 km

 Power transmission line 35 kv                                       Sectors 2,3,6       2.5 km

 Power transmission line 0.4 kv                                      Sectors 2,3,6      6.64 km

 Substations                                                         Sectors 2,3,6         03

 TELECOM (overhead)                                                  Sectors 2,3,6       5.2 km

 TELECOM (underground)                                               Sectors 2,3,6       3.5 km

 Intraco asset (private business)                                     Sector 2              -

 Community hall, village 1-Ha Thuong                                  Sector 2           106m2

 House for hearse cart, village 1-Ha Thuong                           Sector 2           62 m2

 Cemetery, village 1-Ha Thuong                                        Sector 2          8,597 m2

 Community hall, village 3-Ha Thuong                                  Sector 2           70 m2

 Community hall and Primary School, village 4-Ha Thuong               Sector 2          128 m2

 Community hall, Kindergarten , village 2-Ha Thuong                   Sector 3           88 m2

 Storage building, village 2-Ha Thuong                                Sector 3           87 m2

 Prayer house, village 2-Ha Thuong                                    Sector 3          158 m2

 Controlling house of railway, village 2-Ha Thuong                    Sector 3           61 m2

 Temple, village 5-Ha Thuong                                          Sector 4           90 m2

 Army facility-K10, village 5-Ha Thuong                               Sector 4          2,973 m2

 Community hall, village 5-Ha Thuong                                  Sector 5           60 m2

 Community hall, village 1-Hung Son                                   Sector 6          130 m2

 Treo Market, village 1-Hung Son                                      Sector 6          130 m2

 Cemetery, village 1-Hung Son                                         Sector 6          4,120 m2

 On farm irrigation system                                             Various          9,300 m




Nuiphaovica, Vietnam                                                                        Page 85

Nui Phao Mining Project                      Resettlement Action Plan    Final 20-Jul-06




 AffectedCommunity Hall in Hamlet 1 ­ Hung Son commune




 Affected prayer house



Nuiphaovica, Vietnam                                                           Page 86

Nui Phao Mining Project                   Resettlement Action Plan                Final 20-Jul-06




 Affected Naational Road No. 37 section               Affected railway line




4.7 Impacts on Affected Businesses

Thirty-seven small businesses are affected in the Project area, and no businesses are impacted by
relocation site development. These businesses are all located along National Road No. 37 and are
small retail outlets offering refreshments such as drinks, snacks and some groceries. All 37
families operating these businesses have other income sources, mostly from farming/agricultural
activities and as such income from these businesses is generally a moderate proportion of total
household income.

4.8 Accuracy of the Census and Inventory and Follow up Steps

At the time of the census and inventory in late 2004, detailed measurements were only completed
for residential land, garden land and assets on these lands. Assessment of productive land and
other associated assets in the operational area and at each proposed relocation site were
determined (estimated) by using cadastral maps and other survey data. Therefore, after the initial
census and inventory was completed, only sixteen (16) concrete benchmarks were placed on the
ground (at all corners of demarcation lines) as a boundary for the Project area and proposed
relocation sites.

More recently, with the permission of the Thai Nguyen authorities, the boundaries of the six
operational sectors and the Nam Song Cong relocation site were marked (with about 400 beacons)
on the ground and minutes of boundary demarcation were singed by all relevant parties on
September 14, 2005 (for the six operational sectors) and on October 27, 2005 (for the Nam Song
Cong site). The remaining relocation sites will be marked on the ground as soon as detailed
planning is approved by Thai Nguyen People's Committee.

4.8.1 Detailed Measurement Survey

Based on the existing demarcations, a Detailed Measurement Survey (DMS) will be completed
separately for every household and for public works and infrastructure in accordance with the
schedule for Project implementation. The DMS will be used to update and confirm previous
estimates and will be the basis for compensation calculations. For this reason, the numbers of




Nuiphaovica, Vietnam                                                                    Page 87

Nui Phao Mining Project              Resettlement Action Plan                    Final 20-Jul-06



affected people, land, and assets may be adjusted during the resettlement program implementation
phase.

The DMS is conducted jointly by Nuiphaovica, the DDCARC and a team of experienced
surveyors. The detailed survey will confirm information from the census and inventory for
compensation purposes, including:

       · Number of persons in each household, by age and sex;

       · Number, type and area of house(s) to be acquired;

       · Number and area of residential plot(s) to be acquired;

       · Number, category and area of agricultural plot(s) to be acquired;

       · Quantity and types of crops and trees acquired; and

       · Quantity and category of other fixed assets affected by the Project.

The Detailed Measurement Survey commenced in November 2005 for various operational sectors
and relocation sites and the survey process is ongoing. As at June 2006 the status of the detailed
measurement survey process is shown in table 4.7.

                                            Table 4.7
                        June 2006 Status of Detailed Measurement Survey

          Sector/Site                 Total               To Date       Completion

          Sector 1                           86                 7            8%
          Sector 2                           235               47           20%
          Sector 3                           365               35           10%
          Sectors 4 and 5                    126                0            0%
          Sector 6                           351              132           38%
          Nam Song Cong                      320              320           100%
          (Phase 1 and 2)
          Hung Son 2                         75                75           100%
          Cat Ne                                                            100%
          K10 army facility                                                 100%


Upon completion of the survey for each affected household a Detailed Measurement Survey form
is prepared and reviewed by relevant parties, including the affected household members. Once
agreement is reached on the inventory the completed form is counter signed by the affected
household, village leader/representative, commune leader/representative, the DDCARC and
Nuiphaovica. Final details are incorporated into the existing Nuiphaovica database to confirm the
inventory and finalise compensation packages.




Nuiphaovica, Vietnam                                                                   Page 88

Nui Phao Mining Project             Resettlement Action Plan                   Final 20-Jul-06



In addition to the data obtained through the detailed measurement survey, other relevant socio-
economic baseline data will be updated overtime for households in order to adequately develop
economic restoration programs and monitor progress of income restoration activities (see also
Section 8.3).




Nuiphaovica, Vietnam                                                                 Page 89

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



 CHAPTER 5.              IMPACTS ON VULNERABLE GROUPS AND SPECIAL
                                                       PROGRAMS

5.1 Vulnerability in the Project Affected Areas

5.1.1 Ethnic Minorities

In Vietnam, ethnic minorities are disproportionately at risk of poverty ­ they represent 14 percent
of the population but account for 29 percent of poor people. In part because the regions in which
they live feature the slowest economic growth, their proportion among Vietnam's poor is expected
to rise to over one third by 2010 (www.ausaid.gov.au).

Ethnic minorities within the Project area have settled there recently and are integrated into the
local community. As such, ethnic minority groups in the area do not represent indigenous peoples
under the definition set out in World Bank Group Policy OP4.10: Indigenous Peoples (see also
Section 3.6). Ethnic minorities in the Project area include Cao Lan, Tay, Dao and Nung people
who are concentrated in the villages 1, 2, 3, 4, 5 and 6 of Ha Thuong commune, with a few
families living in village 1 of Hung Son commune and two ethnic minority families also live in
Tan Linh commune. The Cao Lan ethnic minority group account for approximately 78% of the
total number of affected ethnic minorities and they are mainly concentrated in Ha Thuong
commune. Ethnic minorities in the Project area are living together with Kinh people in villages
and their economic status, educational level, cultural identities etc. as well as physical
infrastructure and social services of communities are not significantly different to the Kinh
people.

Whilst social baseline data indicates that the ethnic minority groups in the Project area are socially
integrated with the wider population, their position must be considered within the larger national
context and they are therefore identified for special assistance programmes within this
resettlement programme.

Specific legislation exists that identifies ethnic minorities as vulnerable people and special
assistance is mandated under this legislation to assist ethnic minority communities and
individuals. Under Decision No. 134/2004/QD-TTg on assistance policies for Ethnic Minorities a
range of special support is available. For example, ethnic minority children are provided with
assistance to attend university (i.e. reduced entrance criteria and fees), schools and other physical
infrastructure in ethnic minority communities are improved and should be of suitable quality and
so on.

5.1.2 Poor Families

A key vulnerable group or groups are the poor and in particular the extreme poor. There are three
vulnerable groups identified in the Project area which are related to economic poverty. These
include those that fall under the poverty line of the Ministry of Labour, Invalids and Social Affairs
(MOLISA), families with low-value houses, and war veteran's households who receive social
welfare payments from the government.

Nuiphaovica, Vietnam                                                                       Page 90

Nui Phao Mining Project                 Resettlement Action Plan                        Final 20-Jul-06



The poor lack savings or assets that assist in coping through hardships. Therefore, it is the poor
who are particularly vulnerable to changes such as natural disasters (floods), market crashes (tea,
minerals), and loss of land or employment opportunities. The poor tend to be more severely
impacted by these changes and take longer to recover. While there are a variety of programmes
run by local government and unions to address poverty, the extreme poor are generally excluded
from loan and credit schemes due to a lack of assets that are necessary to qualify for these
programmes.

As local communities have become increasingly reliant on the cash economy, households have
become vulnerable to changes in market prices of both key agricultural commodities (tea) and
other products (minerals). While risks are inevitable in any agricultural or commercial activity,
losses incurred as a result of changes in prices are a particular burden on the poor. Poor
households lack the financial buffer to carry their families through difficult periods and are
therefore more likely to resort to marginal activities, sell vital assets, or incur debt.

Families classified by MOLISA are officially recognised as poor households and receive a
certificate/card verifying their status.      These families receive special assistance from the
government in the form of subsidies, no school fees for children, reduced medical costs and
various other supports. Veterans and their families are also formally recognised and receive a
regular social welfare allowance from the government as well as support with special assistance
programs.

5.1.3 Women and Women Headed Households

Women are typically more vulnerable to livelihood changes due to fewer available employment
opportunities and a higher reliance on agricultural activities. Additionally, women tend to have
less access to education and training opportunities.

Women of reproductive age, in particular, have been identified as a vulnerable group by
government officials due to a high rate of reproductive health problems within this age bracket in
the Project area. The Dai Tu Women's Union reports that domestic violence, rape, and sexual
assault are present in the area, but that these issues are both under reported and under prosecuted.

Women headed households are considered a vulnerable group for special consideration within this
resettlement programme. A considerable number of households have been identified as single
female headed households and the majority of these families are also poor, relying on government
assistance and often with a high number of dependent children.

5.1.4 Elderly, Infirm, and Disabled

Human health is an important issue for the Project area, and a tenth of the population are aged 60
years or over. Although no specific disabled persons were indicated during the socio-economic
survey, it is known that some are present. The majority of economic activities are physical,
relying heavily on good human health. Programmes or provisions to compensate for sick periods
are few, and health facilities lack the capacity to address major local health issues.

Nuiphaovica, Vietnam                                                                          Page 91

Nui Phao Mining Project                           Resettlement Action Plan                                        Final 20-Jul-06



Poor health impacts on livelihoods include the inability to provide labour and the financial burden
of medical treatment. Sixteen percent of households listed medical treatment as one of their three
highest monthly expenditures. The elderly, infirm, and disabled are particularly vulnerable to
changes in livelihood activities that involve the loss of either land tenure or land access and
increased reliance on the wage labour sector.

5.2 Impacts on Vulnerable Groups

A summary of impacts on vulnerable groups for both the Project operational area and at relocation
sites is provided in tables 5.1 and 5.2.

                                                           Table 5.1
                       Vulnerable Groups Affected by the Project Operational Area


         Vulnerable groups                 Number of         Number of         Ha Thuong            Hung Son             Tan Linh
                                               HH               heads              (HH)                (HH)                (HH)

 Ethnic minorities                              77               283                 65                  10                   2

 Woman headed households                        53               163                 35                  13                   5

 Poor families                                  65               229                 40                  19                   6
 (under poverty line of MOLISA)

 Families with poor existing                   134               605                 91                  35                   8
 house (house value less than
 value of house with Class 4 and
 area of 50 m2)

 Veteran households receiving                   57               232                 29                  20                   8
 social welfare from Government

 Total                                         386              2,187               260                  97                  29
Notes: 1. A Class 4 house type is a definition provided by the Provincial authorities and relates to the size, structure, and quality of
the house according to defined criteria; and 2. some families can fall into a number of the abovementioned categories as the
classifications are not mutually exclusive.

                                                           Table 5.2
                                Vulnerable Groups Affected by Relocation Sites


  Vulnerable Groups              Ethnic          Woman Headed          Poor Family           Poor Existing            Veteran HH
                               Minorities          Household          (under poverty         House (House           Receiving Social
                                                                     line of MOLISA)       Value Less Than           Welfare From
                                                                                             Value of House          Government
                                                                                            with Class 4 and
                                                                                            Area Of 50 M2)

 Nam Song Cong                     4                    32                   17                      1                     13

 Hung Son 2                        0                    14                    2                      0                      3

 Hung Son 3                        0                    13                    2                      0                      4

 Xom Trai                          10                   17                    5                      2                      5

 Khe Thuy Tinh                     12                   9                     0                      3                      3

 Cat Ne - Tan Lap site             0                    2                     8                      0                      0
 (for Army)

 Total                             26                   87                   34                      6                     28




Nuiphaovica, Vietnam                                                                                                     Page 92

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06



Physical displacement and loss of land and productive assets could result in impacts to vulnerable
people, including:

       · Loss of accommodation, particularly for those who do not own property or land,
            and/or those that have poor existing housing quality and are therefore eligible for
            limited compensation for existing assets;

       · Loss of source of livelihood, particularly for those who may be unable to fully access
            off-farm employment opportunities, such as the elderly, women headed households
            and the ill or disabled; and

       · Weakening or loss of support networks, particularly where vulnerable people move
            away from some of their formal or informal support channels.

Vulnerable people can also feel a general sense of loss of well-being as a result of resettlement
and measures to prevent impacts are important to enhance self-sufficiency and to the extent
practical improve the livelihoods of already impoverished or disadvantaged groups.

5.3 Consultation with Local Authorities and Local Unions and Associations

Several sessions of consultation were conducted by Nuiphaovica with local people, local
authorities and local unions and associations to discuss potentially vulnerable group issues. Many
meetings have been held to discuss the necessity and proposals for programs and activities in
order to help vulnerable groups and affected communities of ethnic minorities to improve their
income generation and livelihoods after relocation. A summary of meetings held specifically to
discuss these topics is provided in table 5.3 below.




Nuiphaovica, Vietnam                                                                     Page 93

Nui Phao Mining Project                      Resettlement Action Plan                                 Final 20-Jul-06



                                                     Table 5.3
             Meetings with Key Stakeholders for Affected Vulnerable Group Issues


     Date                 Meeting                    Venue                                 Contents

 27/12/2004     Hung Son Women's Union       Office of Hung Son    Determined the role of the Women's Union and
                                             People's Committee    current activities run by women.

 29/12/2004     Leaders of Ha Thuong         Office of Ha Thuong   Determined the role of the Women's Union, current
                Commune PC and Commune       People's Committee    activities. Difficulties of vulnerable groups and
                Women's Union                                      living conditions of Ethnic Minority people.


 30/12/2004     Leaders of Ha Thuong         Office of Tan Linh    Determined the role of the Women's Union and
                Commune PC and Commune       People's Committee    current activities run by women.
                Women's Union

 01/01/2005     Women's Union of Dai Tu      Women's Union         Roles of District authorities and the Women's Union
                district                     Office of Dai Tu      and discussed activities and programs for women
                                             district              who will be affected by the Project and other
                                                                   proposed activities for women.

 06/01/2005     Directoral Board of Tien     Thanh Oai- Ha Tay     Discussed cooperation with respect to handicraft
                Dong CO. Ltd.                province              manufacturing, employment generation for project
                                                                   affected people, and especially for women.

 06/01/2005     Collective of teeth and      Quoc Oai- Ha Tay      Discussed cooperation for employment generation
                incense stick making                               for project affected women.

 07/01/2005     Van Loc handicraft Co.Ltd.   Gia Lam- Hanoi        Discussed cooperation for employment generation
                                                                   for project affected women.

 14/01/2005     Tan Linh Women's Union       Office of Tan Linh    Discussed ethnic minorities and gender issues and
                and Farther Front            People's Committee    proposed activities

 14/01/2005     Hung Son Women's Union       Office of Hung Son    Discussed ethnic minorities and gender issues and
                and Farther front            People's Committee    proposed activities

 25/01/2005;    Directoral Board of Tien     Thanh Oai- Ha Tay     Pilot programs (handicraft manufacturing)
 07/03 and      Dong CO. Ltd.                province
 14/03/2005

 29/03/2005     Nurses of Tan Linh           Tan Linh health care  Discussed health issues of communities, women and
                                             station               their needs.

 29/03/2005     Principal of primary school, Office of Tan Linh    Discussed the needs of pupils and especially girl
                Women's Union, Youth of      People's Committee    students.
                Tan Linh commune

 29/03/2005     Principal of primary school, Office of Ha Thuong   Discussed the needs of pupils and especially the
                Women's Union, Youth of      People's Committee    Ethnic Minority students.
                Ha Thuong commune

 29/03/2005     Doctors and Nurses of Ha     Ha Thuong health      Discussed health issues of communities, women and
                Thuong commune               care station          their needs.

 30/03/2005     Rep representatives of Cao   Community hall of     Discussed ethnic Minority issues and proposed
                Lan people in Ha Thuong      village 5-Ha Thuong   activities/programs.



Affected people attended these meetings through their participation in the various unions and
associations that were present at each of the events. As most affected people participate in at least
one or more unions or associations a high proportion of affected families were represented.




Nuiphaovica, Vietnam                                                                                          Page 94

Nui Phao Mining Project                         Resettlement Action Plan                             Final 20-Jul-06




  Meeting for upgrading a primary school in Ha Thuong commune as part of an ethnic minority program




 Meeting about gender issues and special programs in Tan Linh commune



5.4 Activities and Programs to Assist Vulnerable Groups

Nuiphaovica's policy for vulnerable groups aims to complement the provisions of Vietnamese
legislation and the responsibilities of the district and commune People's Committees, where they
may be inadequate and/or where persons or households are at risk to be further impoverished by
displacement.

To meet the objectives and principles set forth in the Project resettlement policies, special
financial assistance for vulnerable groups are proposed as shown in table 5.4.




Nuiphaovica, Vietnam                                                                                       Page 95

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06



                                               Table 5.4
                     Financial and Other Assistance for the Vulnerable Families


               Details                Unit (HH)        Unit cost (VND)           Total (VND)

 Assistance to poor families (under    99 HH               5,000,000             495,000,000
 the poverty line of MOLISA)

 Assistance to veteran families        85 HH               1,000,000             85,000,000
 receiving social welfare from
 Government

 Land less and families with poor      140 HH             10,000,000            1,400,000,000
 houses (value of existing houses
 less than value of house class 4 and
 with 50 m2)

 Woman headed HH                       164 HH              5,000,000             820,000,000

 Total                                  488                                     2,800,000,000



This assistance will be provided to vulnerable families in addition to the assistance set out in the
entitlements (see Section 2.8). Vulnerable families will receive this assistance in addition to the
overall compensation and resettlement package for structures, land, productive assets and other
assistance to be provided to all affected households based on their entitlements.

These amounts will be paid to each vulnerable family in cash. However, to help them use their
money wisely, economic and livelihood restoration programs (e.g. vocational training,
agricultural extension training, non-farm based activities etc.) will be offered. These programs
are clearly described in CHAPTER 8 which provides details for potential economic and livelihood
restoration programs for affected persons. Support will also be provided by the Company and its
partners for all cash compensation payments in the form of money management advice and
assistance.

Employment

Nuiphaovica has made a commitment to give preference for employment and business
opportunities to persons from affected households and communities. Nuiphaovica's Human
Resources Department will set up a registration and screening system for job applications. In
particular, Nuiphaovica will fast track for special consideration all those persons on the list of
vulnerable people who are employable. Hiring will remain subject to Nuiphaovica's operational
requirements and selection criteria. Employment policies will be clearly described and widely
publicised.

Special Assistance Programs

Activities and programs for vulnerable groups will be focused on better facilities for primary
schools, knowledge, scholarships for students of poor families; healthcare services, and the
protection of cultural and traditional entities of ethnic minorities. Nuiphaovica will aim to work
with organisations responsible for such activities within the community to enhance existing social


Nuiphaovica, Vietnam                                                                      Page 96

Nui Phao Mining Project                 Resettlement Action Plan                              Final 20-Jul-06



welfare programs. Initial activities and programs for a number of key vulnerable groups have
been identified and these are shown in table 5.5. An initial cost estimate for these programs is also
provided.

                                                 Table 5.5
               Initial Proposed Special Assistance Programs for Vulnerable Groups


          Activity/programs           Unit cost        Total                        Remarks
                                      VND (M)         VND (M)

 Gender programs                         50             150       Programs will be implemented by Dai Tu
 (health care for women, micro                                    district and commune Women's Unions
 finance management training, and
 awareness of relevant laws and
 programs for the advance of women
 etc.)

 Programs for Ethnic Minorities            -            750       Information on education, policies for
 and affected communities                                         environment, rural development, Ethnic
 (upgrade primary schools in Ha                                   Minorities and People who living in remote
 Thuong and Tan Linh, protection of                               and mountainous areas available on
 cultural and customary identities;                               computer.
 computer to be installed at primary
 and secondary schools with
 electronic library etc.)

 Priority recruiting members of       Number to be recruited from affected families will depend on capacity and
 vulnerable families to work for the  available positions
 Project

 Total                                     -           900



These initial ideas for special programs are based on consultation with the Women's Union,
leaders of affected communes, the National Centre of Science and Technology under the Ministry
of Science and Technology as well as affected vulnerable people in Ha Thuong and Hung Son and
Tan Linh communes.

The detailed proposals for these activities will be developed during implementation of the
resettlement program and based on further consultation with unions, affected communities, ethnic
minority groups and other key stakeholders. Detailed proposals will include the following:

      (i)     Purpose and need of the proposed programs;

     (ii)     Specific tasks involved in each proposed program;

    (iii)     Institutional arrangements (individuals and institutions involved to implement
              programs, activities and respective responsibilities);

    (iv)      Implementation arrangements (progress report on supervising, implementation and
              evaluating the project within a time frame); and

     (v)      Cost estimate (break-down of costs for each task).



Nuiphaovica, Vietnam                                                                                Page 97

Nui Phao Mining Project                         Resettlement Action Plan          Final 20-Jul-06



Initial programs have been discussed between the various stakeholders and these include: extra
assistance with the logistics of resettlement; resettlement near family, friends, neighbours and
social and political infrastructure and networks to improve vulnerable families' access to these
supports; targeted training programs for vulnerable people to maximise their chance of
participation in direct and indirect employment opportunities; and upgrading of ethnic minority
village infrastructure.




 Discussing ethnic minority issues and programs in Ha Thuong commune


In addition to the programs described above, Nuiphaovica is currently assisting affected
communes by providing cash to some poor families according to a suggestion from the Women's
Union. The Company also purchased a hearse and procured ping pong tables for Ha Thuong
commune, and purchased 90 chairs for communal halls of three affected communes. Further
special assistance programs for other vulnerable groups are likely to be identified and developed
during the implementation of the resettlement program. Vulnerable groups will be a key focus of
Nuiphaovica's community development program and vulnerable people will be specifically
monitored by Nuiphaovica throughout implementation of the resettlement program.




Nuiphaovica, Vietnam                                                                    Page 98

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



             CHAPTER 6.            ORGANISATIONAL ARRANGEMENTS

Nuiphaovica is responsible for preparing and implementing the Resettlement Action Plan in
conjunction with the Dai Tu District Compensation, Assistance and Resettlement Committee
(DDCARC) and with the cooperation of key government authorites in particular, the Thai Nguyen
Provincial People's Committee (TNPPC) and its local authorities from district to commune level.

Institutional arrangements for the Company and local authorities have been established and co-
ordination between the different parties is central to ensuring effective implementation of the
compensation and resettlement program. Figure 6.1 shows the relationships between the key
parties involved and each of the groups is described in detail in the following sections.

6.1 Nuiphaovica

Nuiphaovica provides its own staff, consultants and resources to implement the Resettlement
Action Plan. The Compensation and Resettlement Unit of Nuiphaovica was formed in June, 2004
with six experienced staff in the fields of communication skills, site development, public works,
social services, economic rehabilitation and cost estimation.

This team is led by the External Relations Manager, who is a senior resettlement specialist with
experience in involuntary resettlement from various departments of the government and the
World Bank in development projects for the rural, urban, energy and transport sectors.

This compensation and resettlement team is working under the supervision of the General
Director of Nuiphaovica and is advised by a number of international resettlement and social
development specialists.

Nuiphaovica's key responsibilities include:

     (i)    Drafting the project resettlement policies and entitlements;

     (ii)   Together with the DDCARC and affected communes:

            a. Organise surveys on socio-economic conditions;

            b. Conduct the census and inventory of affected land and assets;

            c. Organise participation of key stakeholders throughout the entire RAP preparation
                 and implementation process;

            d. Prepare the interim and final Resettlement Action Plans, and have them approved
                 by the Board of Management of Nuiphaovica and TNPPC; and

            e. Implement the RAP including their involvement to redress complaints and internal
                 monitoring.




Nuiphaovica, Vietnam                                                                       Page 99

Nui Phao Mining Project                 Resettlement Action Plan                      Final 20-Jul-06



To implement the RAP successfully, Nuiphaovica intends to recruit more staff and/or consultants
as required to continuously develop the capacity of the team. Specifically, the following positions
have been identified for additional recruitment:

            a. Training coordinator; and

            b. Two construction engineers to review the cost of site development proposed by
                 contractors and to supervise the relocation site construction.

The compensation and resettlement team is also supported by other departments and staff within
Nuiphaovica and relies on others to provide specialist assistance.

Liaison with Other Nuiphaovica Teams

The Nui Phao Mining Project is supported by a dedicated community liaison team that also report
to the External Relations Manager and who manage all aspects of consultation and disclosure
efforts for the Project. The community liaison team works in close collaboration with the
compensation and resettlement team for all related interactions with the communities and other
local stakeholders.

The External Relations Manager and team also liaise with other departments, including the
Environment Department which is responsible for environmental permitting and other
environmental issues related to relocation site development and construction activities.

6.2 Thai Nguyen Provincial People's Committee (TNPPC)

The TNPPC is responsible for adopting the Project resettlement policies, endorsing the RAP and
its sub-compensation plans for each sector, directing responsibilities to its relevant departments or
institutions and overseeing the implementation of the RAP for the Project Affected Persons.

It is also responsible for establishing the Compensation Oversight Board (COB), the provincial
advisory team and the DDCARC as well as approving regulations on the operations of the COB
and allocating responsibilities to its members.

The TNPPC is specifically responsible for approving:

      (i)   The unit costs of compensation for land and other affected assets and allowances and
            subsidies to the Project Affected Persons; and

     (ii)   Sites for relocation, site planning, detailed designs and bidding documents of
            relocation sites as well as results of bidding evaluations and selection of contractors for
            site construction.

The TNPPC must also redress complaints and grievances at the provincial level (third level) of the
complaint mechanism set forth for the Project (see CHAPTER 10).




Nuiphaovica, Vietnam                                                                       Page 100

Nui Phao Mining Project               Resettlement Action Plan                  Final 20-Jul-06



6.2.1 Key Provincial Departments

A number of key provincial Departments such as the Department of Finance (DOF), Department
of Construction (DOC), Department of Natural Resources and Environment (DONRE), and
Department of Agricultural and Rural Development (DARD) etc. also have responsibilities
including:

     (i)    Reviewing the current compensation unit costs and revising them (if necessary) to
            meet with current replacement values and submitting these to the TNPPC for the
            approval;

     (ii)   Reviewing the draft resettlement policy, the RAP and providing comments and
            feedback to Nuiphaovica for improving and finalising these documents;

    (iii)   Reviewing the proposed relocation sites, their planning, detailed designs, and then
            providing advice to the TNPPC to assist in its decision making; and

    (iv)    Coordinating with Nuiphaovica as relevant to their Department in organising surveys,
            and conducting activities for RAP preparation and implementation.

6.2.2 The Compensation Oversight Board (COB) and Provincial Advisory Team

The COB was established according to Decision No. 944/QD-UB dated May 05, 2004 of TNPPC.
It is headed by a Vice Chair of the TNPPC and the Director of DONRE and comprises 20
members who are representatives of:

        · Key Provincial Departments;

        · Local Unions / NGOs (e.g. Women's Unions, Farmer's Associations, the Public
            Relations Service etc.);

        · Thai Nguyen Newspaper and Broadcasting Services;

        · Religious Boards;

        · Dai Tu People's Committee; and

        · Nuiphaovica.

The advisory team comprises nine members from DONRE, the Department of Finance,
Construction Department, TNPPC officers and Nuiphaovica. All of the COB members are either
governmental officials or Nuiphaovica staff. Therefore, with the exception of Nuiphaovica staff,
the members of the COB are and will be working only part time (on this Project).

Regulations for the COB and detailed responsibilities of each member were also prepared and
approved by the TNPPC (Decision No. 1705/QD-UB; dated July 20, 2004). The COB and
advisory team hold meetings periodically to review the RAP preparation and implementation



Nuiphaovica, Vietnam                                                                 Page 101

Nui Phao Mining Project                   Resettlement Action Plan                    Final 20-Jul-06



status and propose solutions for coming activities. As described in the regulations, the COB and
advisory team are mainly responsible for:

    (i)      Assisting the TNPPC in coordination with Nuiphaovica to mobilise and implement the
             Project, including all relevant aspects of the RAP to make sure that affected person can
             at least restore their livelihoods and access benefits from the Project;

    (ii)     Organising the participation of key stakeholders during RAP preparation and
             implementation;

    (iii)    Implementing the RAP effectively together with all relevant parties;

    (iv)     Monitoring and evaluating the results of ongoing RAP implementation; and

    (v)      Redressing complaints at the provincial level.

6.3 Dai Tu District People's Committee (DTDPC)

The DTDPC is responsible for directing its DDCARC and Nuiphaovica on all resettlement
activities, including:

    (ii)     Announcement of the cut-off date and counselling of people in the Project area not to
             build new houses or plant new perennial trees and crops;

    (iii)    Directing relevant departments and affected communes to closely coordinate with
             Nuiphaovica, in:

             a. Carrying out the socio-economic survey and the census and inventory for affected
                 households and properties; and

             b. Seeking replacement land for relocation of the PAP and land for farming;

    (iv)     Proposing solutions for employment generation and economic rehabilitation for
             severely affected PAP;

     (v)     Reviewing and approving relocation sites and plans for compensating and relocating
             PAP;

    (vi)     Granting land use right certificates and building ownership to PAP at new sites; and

   (vii)     Addressing complaints at the district level (second level) of the complaint mechanism
             set forth for the Project (see CHAPTER 10).




Nuiphaovica, Vietnam                                                                       Page 102

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06



6.4 Dai Tu District Compensation, Assistance and Resettlement Committee
     (DDCARC)

The DDCARC was established according to Decision No. 1505/QD-UB of the TNPPC dated June
28, 2004. It is composed of 15 members from key district departments, leaders of the affected
communes and resettlement managers of Nuiphaovica. Except for staff of Nuiphaovica, remaining
members of the DDCARC are working for district departments and therefore, they will work part
time for the DDCARC.

The DDCARC will play the main role in implementing RAP together with Nuiphaovica and is
responsible for day to day activities and tasks. In coordination with Nuiphaovica and consultants,
the DDCARC will:

     (i)    Review and give feedback on the draft resettlement policies;

    (ii)    Carry out socioeconomic surveys and census and inventory of affected households and
            properties;

    (iii)   Seek replacement land for relocation sites and review planning and detailed designs of
            the sites before submitting it to the TNPPC for their appraisal and approval;

    (iv)    Organise consultation with and participation of all key stakeholders for the RAP
            preparation and implementation;

     (v)    Review the compensation unit costs and recommend adjustments to the TNPPC (if
            necessary) to make sure that the compensation unit costs are equal to replacement
            values;

    (vi)    Finalise entitlement forms for the Detailed Measurement Survey (DMS) see also
            Section 4.8.1, according to entitlement policies set forth in the RAP.

   (vii)    Prepare a sub-compensation plans for each operational sector, arrange for them to be
            approved by the TNPPC, and then pay entitlements to each PAP as per the schedule
            proposed;

  (viii)    Distribute information to key stakeholders on the resettlement policies and make these
            available at the offices of the district and affected communes;

    (ix)    Address complaints together with commune, district and provincial People's
            Committees, and

     (x)    Internally monitor implementation of the RAP together with affected households.




Nuiphaovica, Vietnam                                                                     Page 103

Nui Phao Mining Project                 Resettlement Action Plan                   Final 20-Jul-06



6.5 Commune People's Committees

The People's Committees of affected communes and their working groups will be specifically
responsible for:

     (i)    Day to day contact with their people and attending to their concerns relating to
            compensation and relocation;

    (ii)    Helping the DDCARC, Nuiphaovica and its consultants carry out all activities such as:

            a. Consultation with PAP, information campaigns, socio-economic surveys, and the
                 census and inventory of assets for households and properties;

            b. Seeking land for relocation sites and farming, delivering entitlements to the PAP
                 and assisting them with moving to relocation sites; and

            c. Implementing economic and livelihood restoration programs as well as programs
                 and activities for vulnerable groups.

    (iii)   Redressing complaints at the commune level (first level) of the complaint mechanism
            set forth for the Project (see CHAPTER 10); and

    (iv)    Participating in monitoring aspects of RAP implementation with affected households
            such as compensation delivery, relocation site development, and evaluation of the
            restoration of livelihoods after relocation.

Commune Working Groups have been established for the Nui Phao Mining Project in order to
ensure that commune representatives can actively participate in resettlement program
development and implementation. For example, working groups have been established for the
detailed measurement survey whereby working group members participate in the asset and
inventory process for affected households with Nuiphaovica and their consultants. Working
group members are chosen from affected households and other representatives by commune
leaders together with Nuiphaovica.

6.6 Project Affected Persons (PAPs)

Project Affected Persons are responsible for:

     (i)    Coordinating with the survey team in carefully checking and signing off their affected
            lands and other assets as well as their entitlements;

    (ii)    Participating in all phases of RAP preparation and implementation;

    (iii)   Providing feedback on improving the quality of the RAP and suggesting solutions for
            its effective implementation and

    (iv)    Moving to new sites in a timely manner after receiving full entitlements.


Nuiphaovica, Vietnam                                                                    Page 104

Nui Phao Mining Project                      Resettlement Action Plan                            Final 20-Jul-06



Project Affected Persons are also responsible for using the designated complaint mechanism set
forth for the Project (see CHAPTER 10), for submitting and making complaints or grievances.

6.7 Key Responsibilities

Key activities for development and preparation of the resettlement program are summarised in
table 6.1 together with group or groups responsible for each activity.

                                                    Table 6.1
                             Key Activities and Responsible Organisations

 No.                         Activity                                            Responsibility

  1.   Institutional arrangements for the compensation and     All People's Committees from provincial to district
       resettlement program                                    levels and Nuiphaovica

  2.   Identification of operational areas and proposed        Nuiphaovica, DONRE and DDCARC
       relocation sites and establishing bench marks on the
       ground

  3.   Announcement of the cut-off date to relevant            Dai Tu District and affected commune People's
       stakeholders (May 12, 2004)                             Committees

  4.   Ensuring that PAP do not build new houses and           Nuiphaovica and affected commune authorities
       plant new long term trees, fruit trees etc

  5.   Socio-economic survey, census and inventory of          Dai Tu District and affected communes People's
       impacted assets, including survey impacts by land       Committees, Nuiphaovica and its consultants
       acquisition for relocation sites (two phases)

  6.   Prepare a draft Resettlement Policy Framework           Nuiphaovica


  7.   Review and give feedback for final resettlement         COB, unions and associations, Dai Tu District and
       policies                                                affected communes People's Committees, affected
                                                               households and people

  8.   Finalise resettlement policies and have them            Department of Finance, DONRE, Department of
       approved by TNPPC                                       Construction, Dai Tu District People's Committee
                                                               and Nuiphaovica.

  9.   Prepare an interim and then final RAP and ensure its    Nuiphaovica and DDCARC
       approval by TNPPC and the Board of Management
       of Nuiphaovica

 10.   Prepare terms of reference, surveys, planning and       Nuiphaovica, DDCARC and consultants
       detailed design, bidding documents for relocation
       sites. Bidding evaluation, selecting contractors for
       site construction etc

 11.   Supervise construction of relocation sites and          DDCARC, Nuiphaovica, Commune authorities and
       compensation payments                                   affected household representatives

 12.   Implementation of the RAP and subsequent                COB, DDCARC, Nuiphaovica, commune
       monitoring and evaluation                               authorities, PAP and independent monitoring
                                                               evaluation aagency/ies.



6.8 Staff Resources

The main experience that local authorities and the Dai Tu District Compensation, Assistance and
Resettlement Committee have with regards to involuntary resettlement is in the implementation of


Nuiphaovica, Vietnam                                                                                  Page 105

Nui Phao Mining Project                Resettlement Action Plan                          Final 20-Jul-06



`national' policies where, there is less involvement of key stakeholders and host communities in
the planning and implementation of such policies.

This is the first time these authorities will be involved with an involuntary resettlement program
designed in accordance with `international standards' and guidance will be required. Nuiphaovica
will prepare implementation arrangements and plan public consultation and information
disclosure sessions with the local authorities and key stakeholders to ensure they clearly
understand the Project, the resettlement policies and the requirements of the Resettlement Action
Plan.

To prepare and implement the RAP effectively, adequate arrangement of human resources,
working facilities and budget are required. Table 6.2 summarises human resources and working
facilities allocated for RAP preparation and implementation.

                                               Table 6.2
                     Staffing and Working Facilities for RAP Implementation

 No     Organisations/                   Number of Members                          Working Facility
          Institutions
                           Total      Full Time                Part Time

  1    COB                  21             01                       20             Office at Thai Nguyen
                                  (Nuiphaovica staff)      (Provincial Officials)          DONRE
                                                                                       - 01 computer
                                                                                       - 01 photocopy
                                                                                   - 01 fax and telephone
                                                                                   - Mobile phone cards
  2    DDCARC               15             04                       11                 - 03 computers
                                 (Nuiphaovica staff and     (District Officials)         - 01 Printer
                                   District Officials)                                   - 06 desks
  3    Nuiphaovica          10             10                    Varying          Offices in Dai and HaNoi
                                                                                       - 06 computers
                                                                                           - 01 car
                                                                                      - 02 motorbikes
  4    Provincial Advisory  08             01                       07               Operating from the
       Team                       (Nuiphaovica staff)      (Provincial Officials)  Provincial offices and
                                                                                       their resources
  5    Commune Working      24           None                       24             06 desks and 06 chairs
       Groups                                              (Commune Cadres)



Costs for the COB and DDCARC activities and allowances for working groups are included in the
Nuiphaovica cost estimate (see CHAPTER 13).




Nuiphaovica, Vietnam                                                                          Page 106

Nui Phao Mining Project                                               Resettlement Action Plan                                                             Final 20-Jul-06



                                                                              Figure 6.1
                                                                          Institutional Chart


                                            Nuiphaovica                                                        Thai Nguyen Provincial
                                               (Board)                                                       People's Committee (TNPPC)



                                         Compensation and                                                      Compensation Oversight
                                         Resettlement Unit                                                           Board (COB)



                     Resettlement        External Relations                                             Dai Tu District Compensation, Assistance
                       Advisers               Manager                                                   and Resettlement Committee (DDCARC)




                                                                                                                                         Ha Thuong People's
           Manager                Manager                    Manager               Resettlement           Training                            Committee
         Survey, Data,       Economic Restoration,       Relocation Sites &         Facilitator          Coordinator
         Cost Estimate           Public Works              Supervision

                                                                                                                                          Hung Son People's
                                                                                                                                              Committee


                                                   Resettlement
                                                    Assistants                                                                            Tan Linh People's
                                                                                                                                              Committee

                                                                                   Unions, Associations and
                                                                                      Non-Governmental
                                                                                        Organisations                                       Other People's
                                                                                                                                       Committee (as relevant)




Nuiphaovica, Vietnam                                                                                                                                               Page 107

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06




CHAPTER 7.              RELOCATION SITES AND REPLACEMENT OF PUBLIC
                                                           WORKS


7.1 Summary of Relocation Site Requirements and Impacts

Development of the Project will involve acquisition of both residential land and agricultural land.
According to the census and inventory there are 1,153 households that will be affected by 445 ha
acquired for the Project operational area. The number of people living in these households is
4,276 persons. From these 1,153 households the number that need to be physically relocated is
somewhat smaller at 793 households, with 2,942 persons.

The total area of land to be acquired for the residential relocation sites and the market
centre/handicraft workshop site is approximately 56 ha. The number of households affected by
the acquisition of these sites is 637 households with a population of 2,600 persons. An estimated
83 households with 331 persons will lose land and houses, while the balance will lose
agricultural land only. Almost all of the land for the relocation sites is agricultural land, for which
compensation will be paid on the same basis as the land acquired for the Project operations. There
are also 8 households whose residential land and houses will be affected by land acquisition at
the Tan Lap site (Cat Ne/Quan Chu communes), which is designated for relocating the army
facilities.

Therefore, the total number of households to be relocated or rearranged at the relocation sites
is 884 households. The total number of affected households is 1,910 households with a
population of 7,464 persons.

7.2 Resettlement and Relocation Site Principles

The guiding principles of the Resettlement Action Plan on resettlement and relocation due to loss
of residential and/or agricultural land include the following:

        · Owers of properties located in the land acquisition areas are eligible to compensation.
            Properties of Project Affected Persons include residential land and associated
            buildings and agricultural land.

        · Eligible Project Affected Persons receive compensation against the replacement value
            of their affected property, at a level intended to allow them to replace their property
            with a similar one or an improved structure, particularly for people with poor existing
            houses.

        · Eligible Project Affected Persons can either use this compensation to relocate to a site
            developed by Nuiphaovica or receive the compensation in cash and resettle themselves
            by purchasing a replacement property in a location of their choice (self-relocation).




Nuiphaovica, Vietnam                                                                        Page 108

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06




        · The property of eligible Project Affected Persons is valued and compensated following
            the same rules whether they choose to resettle or self-relocate.

        · Project Affected Persons choosing to relocate to a Nuiphaovica relocation site have the
            option to build their replacement housing themselves on a designated location or they
            can opt to have Nuiphaovica build their replacement house for them at the designated
            site.

        · Project Affected Persons who lose agricultural land due to Project development have
            the option for obtaining in-kind land for land at replacement value that has been
            identified by the Company. However, replacement agricultural land is scarce in the
            nearby Project area and therefore Nuiphaovica can only offer replacement agricultural
            land far from the existing area (approximately 16 km).

        · Affected infrastructure and services and other public facilities will be re-established at
            the relocation sites or compensated in cash and will depend on the level of people who
            choose to relocate to the various sites.

        · Different types of replacement house models are proposed and offered at relocation
            sites including various cost structures to match the different compensation packages of
            Project Affected Persons.

        · Nuiphaovica provides assistance in the design of replacement house options and will
            provide technical and supervisory support to Project Affected Persons who determine
            to build their own house at the designated relocation sites.

        · The Company will provide various types of assistance and training to help affected
            people restore their income generating capacity and livelihoods at their new locations
            (see also Section CHAPTER 8).

7.3 Process of Seeking and Approving the Relocation Sites

Nuiphaovica together with affected communes and the Dai Tu district authorities have been
seeking land for replacement since 1 June 2004. The process has involved seeking potential sites
for both agricultural and residential land.

Nuiphaovica staff and local authorities surveyed the local area for potential sites and the options
identified are summarised in table 7.1.




Nuiphaovica, Vietnam                                                                    Page 109

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06




                                                Table 7.1
                              Potential Sites Surveyed for Relocation


              Name                Location        Total area (m2)    Standard plot   Number of plot
                                 (commune)                               (m2)

Hung Son village no.2             Hung Son             54,400            300               125

Hung Son village no.3             Hung Son             74,200            300               112

Khe Thuy Tinh                     Ha Thuong           165,837             80               400

Xom Trai                          Binh Thuan           83,662            300               200

Nam Song Cong                     Hung Son            157,989            125               500


Lang Cam                          Ha Thuong            22,800            400               50
(agricultural)

Khe Vey                           Tan Linh             70,000            400               25
(agricultural)

Long Lanh                           Cat Ne            1,750,000          400               50
(agricultural)

Tan Lap (army facilities)           Cat Ne            1,300,000           n/a              n/a

Cemetery no.1                 Ha Thuong (Village       11,670             n/a              n/a
                                      3)

Cemetery no.2                 Ha Thuong (Village       17,950             n/a              n/a
                                     12)

Cemetery no.3                     Hung Son              1,080             n/a              n/a
                                 (Tao Village)


The first six sites are very close to the existing places of affected communities, but Khe Vey and
Cat Ne are far from Dai Tu town (about 15 km).

Many meetings were held with the authorities of Dai Tu district and relevant communes, local
unions and affected people to obtain their suggestions and feedback on the proposed sites. The
process of seeking replacement land is summarised as in table 7.2 below.




Nuiphaovica, Vietnam                                                                     Page 110

Nui Phao Mining Project                        Resettlement Action Plan                                    Final 20-Jul-06




                                                          Table 7.2
                     Meetings and Site Visits Concerning Replacement of Land


    Date                            Participant                                              Content

 11-12/06/04   Nuiphaovica      staff, Leaders    of   Hung   Son  Review land use status and availability of land for
               commune and leaders of villages no.2 and no.3.      relocation in Hung Son. Two sites were proposed by local
               Site visit to proposed relocation sites of Hung Son authorities: 1-Hung Son 2 (in village 2) and 2-Hung Son 3
               2 and Hung Son 3.                                   (in village 3).

 11/08/04      Leaders of Hung Son and its People's Council.       Discuss and approve for proposed relocation sites in Hung
                                                                   Son commune.

 16/06/04      Nuiphaovica staff and Leaders of Ha Thuong          Site visit to affected cemeteries and proposed new
               commune.                                            cemetery locations.

 17-22/06/04   Leaders of affected villages and Nuiphaovica        Visit affected community halls, other public works and
               staff.                                              two proposed relocation sites: Lang Cam and Khe Thuy
                                                                   Tinh.

 09/08/04      Leaders of Ha Thuong and its People's Council       Discuss and approve for proposed relocation sites.



 07/07/04      Nuiphaovica staff, leaders of Tan Linh commune,     Review land use status and availability of land for
               Directorial Board of Dai Tu Forestry Enterprise.    relocation in Tan Linh commune.
                                                                   Site visit to Khe Vay proposed relocation site.

 02/08/04      Nuiphaovica staff and Directorial Board of Dai      Discuss availability of land at Khe Vey site for residential
               Tu forestry Enterprise.                             land and the number of households that would be offered
                                                                   with contracts of forest protection after relocation.

 08-23/08/04   Nuiphaovica staff, leaders of Dai Tu district, Tien Discuss and visit to the Nam Song Cong and Xom Trai
               Hoi, Binh Thuan and Hung Son commune                proposed relocation sites.
               authorities.

 08-10/08/04   Nuiphaovica, leaders of Dai Tu district, Tien Hoi,  Finalise selection of Nam Song Cong and Xom Trai
               Binh Thuan and Hung Son commune authorities.        proposed relocation sites.

 05/08/04      Nuiphaovica staff, leaders of Dai Tu district and   Meeting with Cat Ne authorities, visit to proposed sites in
               representatives of the army KV3, KV10.              Cat Ne (for relocation of army facilities and agricultural
                                                                   replacement land).

 08/09/04      Nuiphaovica staff, leaders of Dai Tu district,      Visit two proposed sites (Tham Thinh and Tan Lap) for
               representatives of the army KV3, KV 10 and          relocating army facilities and agreed that Tan Lap site is
               leaders of Cat Ne commune.                          more suitable due to less impacts on individuals located in
                                                                   the area.

 12/11/04      Nuiphaovica staff, leaders of Cat Ne commune.       Visit Long Lanh site (site proposed for a combination of
                                                                   agricultural and residential land) and agreed that more
                                                                   than 100 ha in this site could be used for relocating of
                                                                   affected people who prefer to continue with farming.

 06/01/05      Nuiphaovica staff, leaders of Cat Ne commune        Review of land management between Cat Ne commune
               and Director of Tea Stock Company of Quan           and Tea Stock Company of Quan Chu and current land
               Chu.                                                use status.

 08/03/05      Nuiphaovica staff, leaders Dai Tu district, Cat Ne  Discuss about land availability for relocation of
               commune and Director of Tea Stock Company of        agricultural activities and agreed that about 175 ha of
               Quan Chu.                                           agricultural land in this site would be available for people
                                                                   affected by the Nui Phao Mining Project.



Based on the above agenda, the Dai Tu People's Committee, the Dai Tu People's Council and the
Party of the district approved these proposed sites and submitted their proposal to the Provincial
Construction Department for their approval (letter no. 998/TT-UB; DATED 07/12/2004). After
their consideration the Department of Construction agreed and submitted its proposal for 08 sites



Nuiphaovica, Vietnam                                                                                             Page 111

Nui Phao Mining Project                  Resettlement Action Plan                   Final 20-Jul-06




(letter no. 615/QH-XD; DATED 09/12/2004) to the Thai Nguyen Provincial People's Committee
for final approval.

7.4 Agricultural/Productive Land Loss and Potential of Replacement Land

Replacement agricultural land is scarce in the near vicinity of the Project area. Nevertheless,
Nuiphaovica together with local authorities has sought to find replacement agricultural land or
offer the opportunity for re-establishment of agricultural activities on land acquired by the Project
in order provide as much land for land compensation as possible to affected households.

The agricultural land acquired for the Project operational area is approximately 292.8 ha plus 54
ha for feasible relocation sites. Nuiphaovica has developed the following options to offer the
opportunity for affected households to continue agricultural or similar activities:

        · Agricultural land in Sector 6-safety area (approximately 110 ha) is intended to be
            made available for affected households to continue farming. As negotiated with
            relevant authorities, land owners in this area will compensated and relocated, but then
            as part of economic restoration programs be permitted to continue with agricultural
            activities throughout development of the mine and in accordance with relevant safety
            precautions and requirements as the pit is excavated.

        · An estimated 85 ha of land (agricultural and forestry land) at the existing site of the
            K10 army facilities will be allocated to affected families (after relocation of the army
            facilities). The land currently occupied by the army will be purchased by Nuiphaovica
            although not all of this land is likely to be required for Project operational activities
            and the Company to the extent practical will allocate this to affected households.

        · Agricultural land (more than 175 ha) has been identified and will be available at the
            Long Lanh (in Cat Ne/Quan Chu commune) and Khe Vey sites (Tan Linh commune)
            for the remainder of affected households if they would prefer to continue farming.
            These sites are both at more than 15km from the existing affected areas.

        · A small parcel of agricultural land, an estimated 11.3 ha, is also available at the Khe
            Thuy Tinh residential relocation site that can be allocated to affected households who
            opt to relocate to this site.

Agricultural land plots sizes will be determined based on the number of affected families wanting
replacement land in the different areas where it is available. Agricultural plots will be allocated
based on the amount of productive land loss of each affected household. For example, at the Khe
Thuy Tinh site agricultural land will be divided into plots and allocated to eligible households
once it is confirmed what number of affected families will opt to reside at the Khe Thuy Tinh site.
At the same time, affected families that opt to receive replacement land at the Long Lanh site are
likely to be allocated with land equivalent to their total agricultural land loss as greater land is
available at this site.

Nuiphaovica, Vietnam                                                                     Page 112

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06




7.5 Consultation and Participation for Proposed Relocation Sites

Two rounds of consultation were carried out by Nuiphaovica in the period from June 2004 to
April 2005 for the Resettlement Action Plan preparation phase (see also CHAPTER 9).
Consultations were conducted using different methods, such as meetings, questionnaires, direct
interviews with affected people and group discussions. There were 60 representatives of affected
villages taken to the proposed relocation sites and many meetings were held with local authorities
from provincial to village levels and local unions (such as the Women's Union, Farmer's
Association, Veteran Association and the youth etc.). Meetings also involved direct participation
of more than 1,000 people in all affected villages (see Table 7.2).

During these site visits, meetings and other activities, Nuiphaovica clearly informed local
authorities, affected people and other key stakeholders of the characteristics of the proposed sites.
They were informed of the physical infrastructure and social services that would be developed at
each site, the principles of compensation, proposed plot allocation and the procedures for
relocating to the sites. Details of these meetings are described in CHAPTER 9 on public
consultation and participation.

In addition to seeking input about relocation sites during face to face meetings and site visits,
Nuiphaovica sought to obtain specific preferences of affected people for proposed relocation site
options using a consultation questionnaire. Consultation questionnaires were distributed to each
affected household and these questionnaires included key information on each relocation site, the
compensation policies of the Company and requested affected households to provide their choices
of compensation mode (plot at the proposed relocation sites or cash for land plus bonus for self-
relocation) and preferred relocation site option. An example of one of the questionnaires used for
the survey is provided in Annex A.

The first survey was conducted in August/September 2004 and involved sending the questionnaire
to 876 households. All questionnaires were collected from households although some surveys
were completed partially with answers provided to only some questions. A further survey of 854
households was completed during the second round of consultation activities in April 2005 and a
total of 465 households submitted their feedback to Nuiphaovica. The remaining households did
not return the questionnaires and therefore did not provide their preferences regarding relocation
mode and site options. Nuiphaovica continues to try to obtain feedback from all affected families
and engages daily with households on their opinions and choices on a range of different
proposals. However, the Company recognises that some affected people may not formally provide
their preferences or confirm their choices until later in the resettlement program.

The key results from the survey related to relocation site options and proposals are provided in
tables 7.3, 7.4 and 7.5.




Nuiphaovica, Vietnam                                                                     Page 113

Nui Phao Mining Project                    Resettlement Action Plan                    Final 20-Jul-06




                                                   Table 7.3
                             Residential Land Compensation Preferences


             Choice of Affected Households                   Total    Ha Thuong Hung Son     Tan Linh

 Households who prefer residential land for land             406         203       169          34

                                                             100%       50%       41.6%       8.4%

 Households who prefer cash for residential land             207         151        39          17

                                                             100%       72.9%     18.8%       8.3%

 Households who prefer either land or cash for land           91         55         32           4

                                                             100%       60.4%     35.2%       4.4%

 Households who gave no decision                             294         229        52          13

                                                             100%       77.9%     17.7%       4.4%



Table 7.3 illustrates that approximately 20% of households prefer cash for land and will manage
their own self-relocation.

                                                   Table 7.4
             Agricultural Land Compensation Preferences of Affected Households


      Agricultural Land             Total         Ha Thuong       Hung Son    Tan Linh    Phuc Linh

 No. of households that can          558             323            178          55             2
 buy land themselves
                                   55.69%          50.63%          60.96%      79.71%        66.67%

 No. of households that cannot       155             126             23           5             1
 buy land themselves               15.47%          19.75%          7.88%       7.25%         33.33%

 No answer                           289             189             91           9             0

                                   28.84%          29.62%          31.16%      13.04%        0.00%



The figures in this table indicate that about 50% of affected households believe that they could
purchase agricultural land themselves.




Nuiphaovica, Vietnam                                                                        Page 114

Nui Phao Mining Project                Resettlement Action Plan                  Final 20-Jul-06




                                              Table 7.5
                           Affected Households' Choice of Relocation Sites


 Relocation site       Priority       Ha Thuong         Hung Son     Tan Linh           Total


 Nam Song Cong     First priority         74               242          39              355

                   Second priority        11                 3          0                14

 Xom Trai          First priority         1                  0          0                 1

                   Second priority        2                  1          0                 2

 Hung Son 2        First priority         5                  14         15               34

                   Second priority        13                 43         0                56

 Hung Son 3        First priority         3                  0          1                 4

                   Second priority        14                 5          0                19

 Khe Vay           First priority         0                  0          0                 0

                   Second priority        0                  0          0                 0

 Khe Thuy Tinh     First priority         7                  0          0                 7

                   Second priority        1                  0          0                 1

 Lang Cam          First priority         0                  0          0                 0

                   Second priority        0                  0          0                 0

 Long Lanh- Cat    First priority         0                  0          1                 1
 Ne
                   Second priority        0                  0          0                 0

 Self-relocation   First priority         21                 17         14               52

                   Second priority        16                 16         0                32

 No choice given   -                     123                 0          0               123



The results in table 7.5 indicate that approximately 6% of affected households would opt to self-
relocate and the majority of households who will move to relocation sites are likely to opt for the
Nam Song Cong and Hung Son 2 sites. Less than three households opted for the Xom Trai
residential site. Nobody opted for land at the Khe Vey site, while only one household showed
interest in agricultural land at the Long Lanh site.

A more recent review of affected households and their choice for relocation sites indicates that
357 households have nominated to go to Nam Song Cong and 3 households to Hung Song 3,
giving a total of 360 households. In addition, 44 households from Hung Son commune and 24
households from Ha Thong commune have advised that they wish to self relocate, giving a total
of 68 households. This represents a total of 428 households for which nominations have been
received, representing approximately 50% of the total number of affected people with residential
land and house plots. These nominations are not fixed and may change in the future.




Nuiphaovica, Vietnam                                                                  Page 115

Nui Phao Mining Project                   Resettlement Action Plan                   Final 20-Jul-06




This uncertainty makes it difficult to establish priorities for development of relocation sites,
however recent experience indicates that as land is required for acquisition by the Project, affected
people are more willing to express and confirm their choice. Ongoing sessions of consultation are
held during the implementation phase to confirm the choices of relocation mode and preferences
for relocation sites.

7.6 Relocation Site Selection

From the results of consultation described above and to balance the requirements for land with
availability, the following sites were selected for relocation/replacement options:

        · Site #1 Nam Song Cong (residential site);

        · Site #2 Hung Son 2 (market centre and other economic restoration activities);

        · Site #3 Hung Son 3 (residential site);

        · Site #4 Xom Trai (residential site);

        · Site #5 Khe Thuy Tinh (residential site, with limited agricultural land available);

        · Site #6 Long Lanh (agricultural land);

        · Site #7 Khe Vey (agricultural land); and

        · Site #8 Army facilities relocation site.

There are four proposed residential relocation sites, one site for economic restoration activities
and three other sites (two for agricultural land and one site for the relocation of the army
facilities). There is also a site for resettlement of the cemetery areas in Ha Thuong commune.

Long Lanh and Khe Vey sites (agricultural) are held in reserve for affected households that may
choose to opt for replacement land instead of cash compensation as the resettlement
implementation phase progresses (see also Section 7.4). Nuiphaovica and local authorities will
help any affected household who wishes to purchase land at these sites. Every effort will also be
made to allow affected households now living along National Road No. 37 to move along the new
section of road after realignment (see below).

7.7 Residential Plots

The Company has designed plots in consultation with local authorities and affected households.
Plot sizes at the different relocation sites are based on the types of land available at each of the
sites, the zoning requirements and recommendations of district authorities (e.g., Nam Song Cong
is in a more urban area and plots are therefore smaller than for some other sites). According to
the suggestion of the District and relevant Provincial departments, the sites close to Dai Tu will be
no less than 125 m2, while for sites further away from Dai Tu town and therefore in more rural


Nuiphaovica, Vietnam                                                                      Page 116

Nui Phao Mining Project                  Resettlement Action Plan                     Final 20-Jul-06




areas the plot size will be no less than 300 m2. The number and size of plots available at
proposed relocation sites are shown in table 7.6.

                                                 Table 7.6
                   Residential Plots Available at the Selected Sites for Relocation


 Site No              Name               Location      Total area (m2)  Standard plot  Number of plots
             (in a priority ranking)    (commune)                           (m2)

    1.    Nam Song Cong (phase 1)        Hung Son           157,989         125              500
          Nam Song Cong (phase 2)        Tien Hoi           90,211          125              300

    3.    Hung Son village no.3          Hung Son           74,200          300              112

    4.    Xom Trai                      Binh Thuan          83,662          300              200

    2.    Hung Son village no.2          Hung Son           54,400          300              125

    5.    Khe Thuy Tinh                 Ha Thuong           165,837         400               80

                                Totals       -              626,299          -               1,317




The total number of available plots from these sites is about 1,317 and the number of affected
plots is approximately 975 and thus availability and requirements for relocation site plots are met.
However, approximately 20% of households are likely to be allocated two plots in the Nam Song
Cong site, and therefore the number of plots required is increased. At the same time, there are
additional options for residential plots along the new section of the realigned National Road No.
37.

The number of plots required by affected households is also impacted by self-relocation and/or
cash compensation preferences of some households.               According to consultation results and
ongoing discussions with affected people approximately 10% of households in the Project
operational area prefer self-relocation or cash compensation for residential plots (without
buildings). Eight households affected in Tan Lap site (Cat Ne and Quan Chu communes) also
prefer cash compensation with a bonus for self-relocation.

From the above analysis and in combination with the topographical and geological conditions at
the proposed relocation sites, three sites (Nam Song Cong and Hung Son 3) will be given priority
and developed in 2006 and 2007, while the remaining sites will be developed later based on the
remaining number of households who still need residential plots and their preference for the
remaining sites. At the time of writing it is likely that the Xom Trai site may not be developed
due to sufficient capacity in the other sites and lack of interest from affected households (see
Section 7.8 below).

7.7.1 Allocation of Residential Plots

Residential plots within the relocation sites are allocated to resettling households according to
their preference and their existing affected plot. The allocation of plots will be according to the
DDCARC approved allocation processes and Nuiphaovica policies. Specifically, plots will be
allocated with the following considerations:

Nuiphaovica, Vietnam                                                                       Page 117

Nui Phao Mining Project                  Resettlement Action Plan                       Final 20-Jul-06




     (i)    Land will be provided with a boundary survey permit, and joint title provided to the
            husband and wife (or equivalent).

    (ii)    Plots are to be prepared for house construction (the household is not required to move
            if plot and infrastructure are not ready).

    (iii)   Infrastructure at relocation sites is to be in place before the households are required to
            move to site.

    (iv)    Every effort will be made to relocate those now living along National Road No. 37 to
            the new section of National Road No. 37.

     (v)    Site planning for relocation sites should initially attempt to incorporate the existing
            houses into the new site plan giving these owners first priority to select a new plot.
            This is related to displaced households at relocation sites who will be rearranged.

    (vi)    Residential land for land compensation will be provided according to the following
            rules:

            a. If compensation value of original plot is equal or less than cost of new plot, the
                 household will receive the new plot at no additional cost to the household;

            b. If compensation value of original plot is higher than cost of new plot, the
                 household will receive the new plot at no cost to the household and the difference
                 in cash;

            c. The cost of the new plot will be the compensation for land at the relocation site and
                 the cost for site physical infrastructure. The cost does not include the cost of earth
                 works and providing community infrastructure (on and off site-infrastructure) or
                 any social services;

            d. Some affected families will be allocated more than one plot (depending on the area
                 of original residential land lost and if there are more 7 persons or one family living
                 in one affected household or the household has unmarried sons over 20 years of
                 age); and

            e. All households affected by residential land aquisition with or without a building on
                 the land (either in the Project operational area or in the relocation sites) will be
                 entitled to plots at the relocation site or cash compensation at full replacement cost
                 according to their choice.

Family, neighbours, social groups and networks can request to be kept together and Nuiphaovica
will make every effort to accommodate such requests. For example, the Catholic community in
Ha Thuong Commune have requested to be relocated together and Nuiphaovica is committed to
seeking appropriate locations for this community to remain together.


Nuiphaovica, Vietnam                                                                         Page 118

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06




Based on consultation results Nuiphaovica does not forecast issues with affected households
competing for the same plots as most families have indicated a preference for the Nam Song Cong
site, which if fully developed, has sufficient capacity to accommodate all affected households.

7.7.2 Affordability Analysis on Purchasing Plots at Relocation Sites

The Resettlement Action Plan has been developed on the principle of `replacement cost' and as
such affected people will not have to pay any additional costs for a residential plot at any of the
relocation sites. Nevertheless, Nuiphaovica has completed an affordability analysis to ensure that
most of the affected households can buy plots at the relocation sites with their compensation for
affected residential land. According to initial planning and analysis, unit cost estimates for
relocation site plots (not including the cost of providing earth works and community infrastructure
and social services) are within the range of compensation payments for affected residential land.
Example cost estimates for residential land at the relocation sites are as follows:

        · VND 650,000/ m2 for the Nam Song Cong site;

        · VND 200,000/ m2 for the Xom Trai site;

        · VND 200,000/m2 for the Hung Son No.2 site;

        · VND 150,000/m2 for the Hung Son No. 3 site; and

        · VND 60,000 for Khe Thuy Tinh site.

These costs are based on a preliminary assessment undertaken by Nuiphaovica and its consultants
and consider recent land transactions in the different localities.        Actual unit costs will be
calculated after receiving the estimates for detailed planning of relocation sites and will be
officially decided (approved) by the Thai Nguyen Provincial Peoples' Committee (see also
Section 13.3). Compensation unit costs for residential land will vary based on the location of the
affected areas and according to the unit costs issued by the TNPPC (Decisions no. 2686/2004/QD-
UB dated November 14, 2004).

According to the inventory of affected residential land, approximately 123 households will be
compensated a unit cost of VND 700,000 VND/m2; 196 households will be compensated at VND
400,000 VND/m2; and the remaining households will be compensated at VND 130,000 VND/m2.
Thus, all of the affected households will be able to purchase plots at relocation sites.

7.8 Site Planning and Development

7.8.1 Nam Song Cong Relocation Site

The Nam Song Cong site is proposed to be developed in two phases. The land for phase 1 of the
Nam Song Cong site belongs to Hung Son commune and is very close to Dai Tu town. The total
area is about 157,989 m2. It will be divided into 500 standard plots with an area of 125 m2 each.
The land for phase 2 of the Nam Song Cong site belongs to Tien Hoi commune and is adjacent to


Nuiphaovica, Vietnam                                                                      Page 119

Nui Phao Mining Project                 Resettlement Action Plan                    Final 20-Jul-06




the Hung Son land. The total area is about 90,211 m2 and will be divided into approximately 300
standard plots also with an area of 125 m2 each. The proposed physical and social infrastructure
includes:

        · Main road 10.5 m wide with asphalt pavement and with sidewalk of 0.5 m width each
            side.

        · Lighting and drainage systems.

        · Water supplies (drilled wells) and water quality treatment systems.

        · Social services such as one health care centre (1,500 m2); infant school and two
            kindergartens (4,500 m2); one primary school with five classrooms of 50 m2 each.

Households affected with more than 200 m2 of existing residential land will be eligible for two
plots at Nam Song Cong as plots offered are smaller in size due to the urban location of this site.

7.8.2 Xom Trai Relocation Site

Xom Trai site belongs to Binh Thuan commune and is about one km from Dai Tu town. The total
area of this site is about 83,662 m2 it will be divided into 200 plots each with an area of 300 m2.
The proposed physical and social infrastructure includes:

        · Main road 06 m wide with asphalt pavement and with sidewalk of 2 m width each
            side.

        · Inter-roads of 3 m wide with asphalt pavement and with sidewalk 1.5 m width each
            side.

        · Lighting with a transformer, drainage, water supply (drilled wells) and water quality
            treatment systems.

        · Social services such as one health care centre (1,500 m2); an infant school and two
            kindergartens (4,500 m2); primary school with five classrooms of 50 m2 each; and a
            community hall.

To date, limited interest (less than three families) has been shown in the Xom Trai relocation site
and therefore this site is held in reserve and its development potential remains unknown.

7.8.3 Hung Son No.3 Relocation Site

This site belongs to Hung Son commune and the total area is about 74,200 m2. The site will be
divided into 112 plots of 300 m2 each. This site is close to an existing primary school with 16
classrooms and 489 pupils and some other social services. The proposed physical and social
infrastructure includes:




Nuiphaovica, Vietnam                                                                     Page 120

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06




       · Main road of 6 m wide with asphalt pavement and with sidewalk of 2 m width each
            side.

       · Inter-roads 3.5 m wide with asphalt pavement and with sidewalk 1.5 m width each
            side.

       · Lighting with a transformer, drainage, water supply (drilled wells) and water quality
            treatment systems.

       · Social services such as health care centre (1,000 m2); infant school kindergarten (3,000
            m2); upgrading of an existing primary school with four new classrooms and
            community hall (500 m2).

7.8.4 Hung Son No.2 Relocation Site

This site belongs to Hung Son commune located at the corner of National Road No. 37 and the
road to Nui Coc (tourist area). This site has been designated for economic restoration programs
including a market centre, mushroom farming workshop and handicraft, garment and toothpick
manufacturing.

The total area of this site is about 54,400 m2 and it will be divided into 125 plots of 300 m2 each.
The proposed physical and social infrastructure includes:

       · Main road of 6 m wide with asphalt pavement and with sidewalk of 2 m width each
            side.

       · Inter-roads 3.5 m wide with asphalt pavement and with sidewalk 1.5 m width each
            side.

       · Lighting with a transformer, drainage, water supply (drilled wells) and water quality
            treatment systems.

       · Social services such as infant school and kindergarten (800 m2).

       · Market centre and workshop for handicraft manufacturing are also to be constructed
            on this site.




Nuiphaovica, Vietnam                                                                     Page 121

Nui Phao Mining Project               Resettlement Action Plan    Final 20-Jul-06




     Nam Song Cong relocation site




    Hung Son 3 relocation site




Nuiphaovica, Vietnam                                                   Page 122

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06




7.8.5 Khe Thuy Tinh Relocation Site

This site belongs to Ha Thuong commune and is about 1.5 km from National Road No. 37. The
total area of this site is about 165,837 m2 and it will be divided into approximately 80 plots of 400
m2 while the remaining land will be allocated to affected households for farming (an estimated
112, 938 m2). The proposed physical and social infrastructure includes:

        · Access road, 3 m wide with tar mac and pavement.

        · Transmission line to the site with one substation, water supply (drilled wells) and
            water quality treatment systems.

        · Social services such as health care centre, infant school kindergarten and primary
            school.

7.8.6 Long Lanh and Khe Vey Agricultural Sites (reserved)

The Long Lanh site is located in Cat Ne commune, approximately 15 km from Dai Tu town,
while the Khe Vey site is located in Tan Linh commune and is also approximately 15 km from the
Project area.     After two rounds of consultation, only one household opted for replacement
agricultural land within the Long Lanh site and no affected families showed interest in the Khe
Vey site. Notwithstanding, experience in Vietnam shows that affected people may change their
preference during the period of resettlement implementation, especially farmers, as they consider
land for land is always the best way to avoid risks in generating income after relocation. Thus,
these sites are reserved in case affected households choose to opt for land for land compensation
rather than cash for land, in which case they would be assisted by Nuiphaovica and local
authorities to purchase land at these locations.

Affected households can also choose to build houses at these sites if they opt for agricultural land,
however this would be on a `self-relocation' basis as the Company is not planning to build
residential sites at these locations.

7.8.7 Army Facilities Relocation Site (Tan Lap site)

The total area of the K10 army facility is currently under management of KV3 and the
replacement land for these facilities will be in Cat Ne and Quan Chu communes (Tan Lap site).
The Tan Lap site is approximately 130 ha (equivalent to the affected area) and is currently being
used for agricultural activities, in particular tea plantations. Development of this site will be the
responsibility of KV3.

Potential Use of the Army Facilities (land) After Relocation

According to the Feasibility Study (Aker Kvaerner, 2005), out of the 130 ha of K10 to be
acquired, only about 20 ha would be needed for the Project operations. Out of the remaining 110
ha, 29 ha could be used for tea plantations and 56 ha could be reallocated to affected households
for a forest protection program. This land would be allocated to the affected people in Ha Thuong

Nuiphaovica, Vietnam                                                                     Page 123

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06




commune for farming, commercial forestation or a forest protection program. This site would be
available after the relocation of the army facilities (about the third quarter of 2006). The final area
and land types at this site that could be allocated to affected people will be reviewed by
Nuiphaovica, the DDCARC and Ha Thuong commune authorities after relocation of the army
facilities.

Options for land use on this site will be discussed with the people of Ha Thuong commune and
will be based on regulations relating to land use in this area. Affected households who prefer
agricultural land at this site would be allocated land according to the approved regulations and
their compensation package will be adjusted according to the value of land allocated.

7.8.8 Re-Arrangement of Households along New Segment of Road No. 37

Every effort will be made to relocate those now living along existing National Road No. 37 to the
new segment of National Road No. 37. Currently, the design of realignment for the new segment
of road is being studied and therefore, the potential for plots along this new section are not yet
known. Once the alternative realignment has been through detailed engineering and design, a
survey to determine the number of plots available for allocation to affected households will be
completed.

7.9 Detailed Design and Construction Progress

Nuiphaovica has signed contracts with consultants in Thai Nguyen (Stock Company of
Investment & Construction and Centre for Planning & Construction) to do surveys and detailed
planning for the Nam Song Cong site and the Hung Son 2 site, incorporating the market centre
and workshop for handicrafts manufacturing. On April 07, 2005, consultants presented their first
draft plan to the District and Hung Son commune authorities and Nuiphaovica for comments.
Detailed planning was completed by the end of 2005.

The Nam Song Cong site, and the market centre, and the workshop for handicraft manufacturing
will be developed first which will then be available to receive more than 200 households relocated
from Sectors 1 and 2 of the Project operational area. Initial land clearing activities and civil
works are scheduled to begin on the Nam Song Cong site in mid 2006 and the Hung Son 2 site
shortly thereafter. Detailed design activities for other relocation sites will be developed as the
Project progresses, preferences are confirmed from affected households and ongoing needs are
assessed after development of these initial sites.

7.10Housing and Design

Affected households who are eligible and choose to move to a designated relocation site have the
option to build their own house or to purchase a house that will be built by Nuiphaovica's
approved construction teams.




Nuiphaovica, Vietnam                                                                       Page 124

Nui Phao Mining Project               Resettlement Action Plan                       Final 20-Jul-06




7.10.1 Company Built Housing

Nuiphaovica has developed in consultation with affected people and local authorities, a series of
proposed house designs to be built at the different relocation sites. A total of seventeen (17) house
designs have been prepared by Nuiphaovica and their architects and construction and planning
consultants. The different designs have been developed with the following considerations:

       · Suitability for different plot sizes at the various relocation sites;

       · Design and layout of existing structures;

       · Size of existing structures and other local residences in the area;

       · Use of high quality materials for house construction; and

       · A range of cost options in accordance with replacement values of existing structures.

The different house designs proposed therefore represent a range of options that include:

       · Different costs: costs range from approximately VND110 million to over VND400
            million;

       · Multiple storey designs: both one and two storey house designs are offered;

       · Varying floor space: houses with floor space of between 100m2 to over 300m2 are
            available; and

       · Finishes and fittings: a range of exterior/interior finishes and fittings can be chosen
            within the different options proposed.

Each of the proposed designs includes minimum fixtures and fittings and a summary of common
house characteristics are provided in table 7.7.




Nuiphaovica, Vietnam                                                                      Page 125

Nui Phao Mining Project               Resettlement Action Plan                         Final 20-Jul-06




                                             Table 7.7
                    Common Basic Characteristics of Different House Designs


                     Components                           Common Characteristics

         Walls / structure                    Brick walls
                                              Concrete frames
                                              Concrete foundations
                                              Concrete floor slabs

         Roof                                 Tiled roof

         Floors                               Floor tiles to suit different room types

         Water, drainage and sanitary         Potable water facilities
         facilities                           Septic tank and associated infrastructure
                                              Drainage systems

         Kitchen facilities                   Sink
                                              Area for cooking (facility to be decided by
                                              owner)

         Bathroom                             Sink
                                              Shower
                                              Toilet



The proposed pricing matrix for resettlement houses and plots is presented in table 7.8. Each of
these designs represents a different configuration of house design and the different options are
suited specifically to different plot sizes available at the different relocation sites. Figure 7.1
shows some examples of the proposed designs on offer to affected households.




Nuiphaovica, Vietnam                                                                        Page 126

Nui Phao Mining Project                         Resettlement Action Plan                        Final 20-Jul-06




                                                         Table 7.8
                   Estimated Pricing Matrix for Different Housing Options Offered


 No.         Plot size           Name             Floors          Floor          Unit cost/m2   Total cost
                                                                  space               (VND)       (VND)
                                                                   (m2)

  1     125 m2                  CL1-01            1 floor           100            1,500,000   205,999,304

  2                             CL1-02            1 floor           100            1,500,000   171,501,230

  3                             CL1-03            1 floor           100            1,500,000   198,467,877

  4                             CL1-04            1 floor           100            1,500,000   237,882,914

  5                             CL2-05           2 floors           200            1,500,000   323,854,556

  6                             CL2-06           2 floors           200            1,500,000   270,103,986

  7                             CL2-07           2 floors           200            1,500,000   328,364,993

  8                             CL2-08           2 floors           200            1,500,000   391,642,807

  9     300 ­ 400 m2           NV1-09             1 floor           150            1,500,000   206,707,381

  10                           NV1-10             1 floor           150            1,500,000   115,871,960

  11                           NV1-11             1 floor           150            1,500,000   209,749,547

  12                           NV2-12            2 floors           300            1,500,000   324,325,677

  13                           NV2-13            2 floors           300            1,500,000   254,518,078

  14                           NV2-14            2 floors           300            1,500,000   414,842,818

  15                           NV2-15            2 floors           300            1,500,000   376,557,348

  16    Low cost                CL1-16            1 floor           100            1,000,000   112,663,013

  17    options                 CL2-17           2 floors           200            1,000,000   204,854,219
Note: costs provided by Nuiphaovica's construction and planning consultants and architects.

This matrix will be used for affected households to compare the compensation packages that they
will be entitled to receive for their old property with replacement house options. Nuiphaovica will
provide additional details and assist affected households to make a full comparison and informed
choice for a replacement house. Prices are estimated based on basic construction with minimum
finishes.




Nuiphaovica, Vietnam                                                                                 Page 127

Nui Phao Mining Project             Resettlement Action Plan               Final 20-Jul-06




                                        Figure 7.1
                    Example of Proposed House Designs at Relocation Sites




Example CL1 one and two-storey house design components


Nuiphaovica, Vietnam                                                            Page 128

Nui Phao Mining Project             Resettlement Action Plan               Final 20-Jul-06




                                    Figure 7.1 (Cont.)
                    Example of Proposed House Designs at Relocation Sites




        Example CL1 one and two-storey house design components


Nuiphaovica, Vietnam                                                            Page 129

Nui Phao Mining Project             Resettlement Action Plan               Final 20-Jul-06




                                    Figure 7.1 (Cont.)
                    Example of Proposed House Designs at Relocation Sites




Example NV2 two-storey house and NV1 one-storey house design components (respectively)


Nuiphaovica, Vietnam                                                            Page 130

Nui Phao Mining Project             Resettlement Action Plan                Final 20-Jul-06



                                      Figure 7.1 (Cont.)
                      Example of Proposed House Designs at Relocation Sites




Nuiphaovica, Vietnam                                                             Page 131

Nui Phao Mining Project               Resettlement Action Plan                       Final 20-Jul-06



7.10.2 Self-Built House Construction

Consultation with affected families has indicated that most households would prefer to build new
houses themselves as shown in table 7.9. Nuiphaovica continues to engage with affected families
to confirm their preferences as the resettlement program is implemented.

                                             Table 7.9
                                 House Construction Preferences


     Household            Total        Ha Thuong          Hung Son       Tan Linh        Phuc Linh
     Preference
                       Q'ty    %      Q'ty     %        Q'ty    %      Q'ty     %      Q'ty       %

Self-built house        485   96.2     229    94.6      219    98.6     36     92.3      1       100.0

House built by the
project developer       19     3.8     13      5.4        3     1.4     3       7.7      0        0.0


Total                   504    100     242     100      222     100     39     100       1       100.0




Where families do opt to construct their own houses they will still be able to use the house
designs developed by Nuiphaovica and other relevant support (if they choose) that would be
offered to households who opt for Company built houses.

Nuiphaovica has assessed the possibility of local organisations providing services for site
planning, detailed design as well as the supply of construction materials, contractors, workers, and
construction supervisors for relocation site development and housing. According to this study, in
three affected communes (Ha Thuong, Hung Son and Tan Linh) and Dai Tu town, there are
eighteen (18) construction teams with about 270 workers and ten (10) businesses selling
construction materials. These construction teams and resources are considered to have sufficient
capcity to build approximately 1,000 houses at any one time.

Meetings will be held with key stakeholders before construction to conclude the solutions for
house construction, as well as the responsibilities of various parties to make sure the construction
and completion of houses is implemented in a timely manner. To ensure that affected families
construct their houses and move in a timely manner, compensation in cash for their buildings and
other assets will be disbursed in instalments based on the progress of construction of their new
house. A timely moving allowance of VND 5 million will alsp be provided to households who
move on time (see also Section 2.8). Supervision will be by Nuiphaovica staff and the Dai Tu
District Compensation, Assistance and Resettlement Committee. To track the construction and
other progress a resettlement card will be used with a format similar to that set out below.




Nuiphaovica, Vietnam                                                                      Page 132

Nui Phao Mining Project                 Resettlement Action Plan                      Final 20-Jul-06



The Proposed Resettlement Card


1 Name of householder:

2 Address: Village                        Commune                    District

3 Affected sector:

4 Time of plot allocation to the family                Date         Month          year

5 Time to complete construction                        Date         Month          year

6 Deadline to move out of the affected sector          Date         Month          year

7 Cash compensation and other relocation assistance

      First payment:        Items

                  Amount                              Date          Signature

      Second payment:       Items

                  Amount                              Date          Signature

      Third payment:        Items

                  Amount                              Date          Signature



A similar process will be applied to the affected households who opt for self relocation where
they will build their own house. This would not apply to those households that self-relocate far
away and/or choose another compensation option such as moving in with relatives.

7.11Land Use Right Certificates and Building Ownership

Over time, the households living at the relocation sites are at liberty to sell their plots and houses
to others at the going rates. The Land Use Right Certificate and Building Ownership will be
granted to the PAP as soon as a plot is allocated and the construction of housing completed. The
fees for these certificates will be paid by the Project Developer.

7.12Process of Compensation, Site Development and Allocation of Plots

Nuiphaovica together with local authorities has established a systematic process for
implementation of compensation procedures, site development and allocation of plots to affected
households. The following steps are administered:

       1. Communes and Dai Tu district, Nuiphaovica and the affected families and institutions
            to agree on the selection of proposed sites (Completed April to November, 2004).

       2. Relevant provincial departments (Departments of Construction, Investment &
            Planning and Environment & Natural Resources) review and recommend to the Thai

Nuiphaovica, Vietnam                                                                       Page 133

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



            Nguyen Provincial People's Committee to approve the selection of relocation sites
            (Completed November, 2004).

       3. Tendering, review and selection of consultants for site planning will be completed by
            Nuiphaovica (Completed for some sites and ongoing for others).

       4. Site planning to begin for the relocation sites for affected households living in the first
            operational sectors required for mine development.

       5. Compensation payments for buildings and other affected assets of the affected
            households at the relocation sites and in the relevant operational sectors (about five
            months prior to the land clearance for the civil works).

       6. Detailed design of the relocation sites, bidding documents, bidding evaluations and
            selection of contractors for site construction. Bidding evaluation and selection of
            contractors will be completed by Nuiphaovica and the Dai Tu District Compensation,
            Assistance and Resettlement Committee.

       7. Construction of relocation sites by selected contractors and supervised by
            Nuiphaovica, Dai Tu District Compensation, Assistance and Resettlement Committee,
            representatives of the affected households and officials of affected communes.

       8. The site will be ready and plots allocated to the affected households at least four
            months prior to land clearance of the affected area for the Project.

       9. Plots will be allocated as soon as possible after compensation has been paid in order to
            provide households with sufficient planning and organisation time to prepare for house
            construction.

       10. Transfer of affected people to relocation sites and other relevant assistance to quickly
            restore their livelihoods.

       11. Land use right certificates and building ownership arranged for all affected households
            with the fees paid by Nuiphaovica.

       12. Compensation for public land will be paid directly to the relevant government
            authorities.

       13. Compensation in cash for community affected assets will be paid to the affected
            communes/communities.

       14. The use of buildings on the existing army facilities (after relocation) will be discussed
            later between Nuiphaovica and key stakeholders.




Nuiphaovica, Vietnam                                                                     Page 134

Nui Phao Mining Project               Resettlement Action Plan                       Final 20-Jul-06



Figure 7.2 shows the establishment of a new resettlement site and the relationship between all the
major activities, while Figure 7.3 shows the process for the compensation of affected households
and their transfer from the Project operational area (sectors) to the new relocation site.

                                             Figure 7.2
                              Relocation Site Development Process




Nuiphaovica, Vietnam                                                                      Page 135

Nui Phao Mining Project             Resettlement Action Plan                       Final 20-Jul-06



                                           Figure 7.3
                      Compensation Process and Transfer to Relocation Sites




These diagrams represent the major activities to be completed as part of the resettlement program.
There are a considerable number of complex sub-activities that require to be completed in order to
achieve these processes.




Nuiphaovica, Vietnam                                                                    Page 136

Nui Phao Mining Project                     Resettlement Action Plan                           Final 20-Jul-06



7.13Implementation Details for Relocation Site Development

Implementation details for development of relocation sites, compensation and allocation of plots
have been estimated for each of the main proposed options. Tables 7.10, 7.11 and 7.12 show the
key activities required for to develop the sites and to provide an indicative timeframe required to
complete the main tasks.

                                                    Table 7.10
 Schedule for Nam Song Cong Site 500 Standard Plots At 125 m2 Each, Market Centre, and
                    a Workshop for Handicraft Manufacturing In Hung Son 2


    No.                                         Activities                                    Time Required

    1       Detailed site planning and related activities                                       1.5 months

    2       Consultation and revision of the draft planning                                      0.5 month

    3       Submission to the appraisal committee of Thai Nguyen Province for review             0.5 month
            and comments

    4       Revision and submission of final plans to Thai Nguyen People's Committee for         01 month
            approval

    5       Decision of People's Committee on land acquisition for the Project and putting       0.5 month
            bench marks of the site on the ground

    6       Detail Measurement Survey for land and other affected assets, preparation of         01 month
            sub-compensation plans for the site, and obtain approvals from the Peoples'
            Committee. Subsequent payment of compensation to affected families.

    7       Detailed designs for physical infrastructure and social services, and associated     01 month
            bidding documents and activities

    8       Submit detailed designs to the People's Committee for approval                       01 month

    9       Invitations to bid, bidding evaluation and selection of contractors for various      03 months
            packages (land levelling, physical infrastructures and social services).
            Approval by relevant authorities for various bidding evaluations

    10      Awarding of contracts to successful contractors                                  Varies for different
                                                                                                 packages

    11      Site construction under supervision of Nuiphaovica and local authorities             05 months
            Seventy (70) plots to be ready for housing the affected households

    12      Cash compensation for buildings to the affected households, housing and              05 months
            moving to the site by affected people from Sector 1
            Subsequent hand over of the Sector 1 area for Project development civil works

    13      Completion of site construction plots ready for the affected households from         04 months
            Sector 2 and other sectors. Then repeat relevant steps.




Nuiphaovica, Vietnam                                                                                Page 137

Nui Phao Mining Project                     Resettlement Action Plan                          Final 20-Jul-06



                                                   Table 7.11
    Schedule for Hung Son 3 (roughly 112 standard plots of 300 m2 each) and Xom Trai
                                    (around 200 plots of 300 m2 each)


    No.                                        Activities                                    Time Required

    1       Detailed site planning and related activities                                        01 month

    2       Consultation and revision of the draft planning                                      0.5 month

    3       Submission to the appraisal committee of Thai Nguyen Province for review             1.5 month
            and comments

    4       Revision and submission of final plans to Thai Nguyen People's Committee for         01 month
            approval

    5       Decision of People's Committee on land acquisition for the Project and putting       01 month
            bench marks of the site on the ground

    6       Detail Measurement Survey for land and other affected assets, preparation of        02 months
            sub-compensation plans for the site, and obtain approvals from the Peoples'
            Committee. Subsequent payment of compensation to affected families.

    7       Detailed designs for physical infrastructure and social services, and associated     01 month
            bidding documents and activities

    8       Submit detailed designs to the People's Committee for approval                       01 month

    9       Invitations to bid, bidding evaluation and selection of contractors for various     3.5 months
            packages (land levelling, physical infrastructures and social services).
            Approval by relevant authorities for various bidding evaluations

    10      Awarding of contracts to successful contractors                                  Varies for different
                                                                                                 packages

    11      Starting of construction and supervision by Nuiphaovica and local authorities       04 months


    12      Cash compensation for buildings to the affected households, housing and             05 months
            moving to the site by affected people from relevant sectors
            Subsequent hand over of the sector areas for Project development civil works

    13      Completion of site construction plots ready for the affected households from        04 months
            sectors. Then repeat relevant steps.




Nuiphaovica, Vietnam                                                                                Page 138

Nui Phao Mining Project                     Resettlement Action Plan                          Final 20-Jul-06



                                                   Table 7.12
  Schedules for Khe Thuy Tinh (around 80 standard plots of 400 m2 each and Hung Son 2
                              (roughly 125 standard plots of 300 m2 each)


    No.                                        Activities                                    Time Required

     1      Detailed site planning and related activities                                       1.5 months

     2      Consultation and revision of the draft planning                                      0.5 month

     3      Submission to the appraisal committee of Thai Nguyen Province for review             01 month
            and comments

     4      Revision and submission of final plans to Thai Nguyen People's Committee for        1.5 months
            approval

     5      Decision of People's Committee on land acquisition for the Project and putting       01 month
            bench marks of the site on the ground

     6      Detail Measurement Survey for land and other affected assets, preparation of        03 months
            sub-compensation plans for the site, and obtain approvals from the Peoples'
            Committee. Subsequent payment of compensation to affected families.

     7      Detailed designs for physical infrastructure and social services, and associated    02 months
            bidding documents and activities

     8      Submit detailed designs to the People's Committee for approval                      02 months

     9      Invitations to bid, bidding evaluation and selection of contractors for various     04 months
            packages (land levelling, physical infrastructures and social services).
            Approval by relevant authorities for various bidding evaluations

    10      Awarding of contracts to successful contractors                                  Varies for different
                                                                                                 packages

    11      Starting of construction and supervision by Nuiphaovica and local authorities       06 months


    12      Cash compensation for buildings to the affected households, housing and             05 months
            moving to the site by affected people from relevant sectors
            Subsequent hand over of the sector areas for Project development civil works

    13      Completion of site construction plots ready for the affected households from        04 months
            sectors. Then repeat relevant steps.



7.14Realignment and Replacement of Public Works and Affected Assets

Nuiphaovica has contacted all the owners of affected public works and social services and
requested them to coordinate cost estimates for compensation of these affected assets. Physical
infrastructure and social services of affected communes such as inter-roads, kindergartens, infant
schools, electricity/power infrastructure, community halls and cemeteries etc will mostly be
compensated "in kind" as the structures will be reconstructed at the relocation sites and in
communities receiving the resettlers (see also Section 7.8). Some affected public works will be
compensated in cash to their owners.

Affected public works and social services which will be compensated and/or reconstructed are
listed in table 7.13 below.




Nuiphaovica, Vietnam                                                                                Page 139

Nui Phao Mining Project                Resettlement Action Plan                             Final 20-Jul-066



                                              Table 7.13
                Public Works and Social Services to be Compensated/Reconstructed


          Name               Sector/s  Quantity  Compensation mode                       Notes

National Road No.37           2,3,6    2.64 km        Realignment     Cost of civil works is not included in
                                                                      resettlement/relocation costs but rather in
                                                                      feasibility study estimates

Railway to Nui Hong           2,3,6     2.7 km        Realignment     -ditto-

Power T/L 35 kv               2,3,6     2.5 km       Cash to owner    -ditto-

Power T/L 0.4 kv              2,3,6    6.64 km       Cash to owner    -ditto-

Substations                   2,3,6       03         Cash to owner    -ditto-

TELECOM (overhead)            2,3,6     5.2 km       Cash to owner    -ditto-

TELECOM (underground)         2,3,6     3.5 km       Cash to owner    -ditto-

Controlling house of            3       61 m2      In the package for -ditto-
railway of village 2-Ha                           railway realignment
Thuong

Community hall of village       2       106m2           In kind       Likely to be constructed in Hung Son
1-Ha Thuong                                                           relocation site

House for hearse cart of        2       62 m2       Cash to affected  -
village 1-Ha Thuong                                   community

Cemetery of village 1-Ha        2      8,597 m2     Reconstruction    -
Thuong

Community hall of village       2       70 m2       Cash to affected  -
3-Ha Thuong                                           community

Community hall and              2       128 m2      Cash to affected  -
Primary school of village                             community
4-Ha Thuong.

Community hall and              3       88 m2           In kind       More class rooms will be constructed in
kindergarten of village 2-                                            an existing primary school in Ha Thuong
Ha Thuong

Storage building of village     3       87 m2       Cash to affected  -
2-Ha Thuong                                           community

Prayer house of village 2-      3       158 m2   Land and in kind for To be constructed at a new site to be
Ha Thuong                                                house        decided by local people later.

Temple of village 5-Ha          4       90 m2           In kind       -
Thuong

Army facility-K10 in            4      2,973 m2    Land for land and  -
village 5-Ha Thuong                                cash for buildings
                                                    and other assets

Community hall of village       5       60 m2           In kind       To be constructed in Nam Song Cong
5-Ha Thuong                                                           site.

Community hall of village       6       130 m2          In kind       -
1-Hung Son

Treo Market of village 1-       6       130 m2          In kind       To be constructed in Hung Son 2 site
Hung Son

Cemetery of village 1-          6      4,120 m2         In kind       -
Hung Son.

On farm irrigation systems   Various   9,300 m      Cash to affected  -
                                                       communes




Nuiphaovica, Vietnam                                                                               Page 140

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-066



Nuiphaovica and its main Construction Contractor will work with owners of the public assets
(items from 1 to 7) to survey, design and re-construct the infrastructure in accordance with Project
scheduling and other requirements. Nuiphaovica will undertake to ensure that works will be
completed by approved engineers and contractors and the costs for these works are taken into
account in civil works budgets that form part of the overall Project development costs.

Assessment of the loss and compensation costs for INTRACO assets will be conducted by
independent consultants and are excluded from the resettlement program cost estimate. Costs of
compensation for land and commune level assets are incorpored into the resettlement program
cost estimate (see CHAPTER 13).

7.15Environmental and Other Conditions at Relocation Sites

7.15.1 Background

All candidate relocation sites are located in areas that are characteristically similar to those from
which the affected households will be moving from and therefore, the general environmental,
physical and social conditions are expected to be similar. Nuiphaovica is committed to providing
safe living conditions to all resettled households and to ensuring that the environmental impacts
associated with the new development sites are minimised to the maximum practical extent.

The Project is located in a region where elevated concentrations of arsenic and some heavy metals
occur naturally in local soils. This arsenic concentration is associated with the natural surface
soils and is generally not linked with the geochemistry of the ore deposit. Baseline studies in the
Project area have documented elevated concentrations of arsenic, lead, and boron to be naturally
present in certain areas at levels that could pose health risks to local residents. Because these
natural contaminants are associated with surficial soils and not the ore mineralisation, each
candidate resettlement site has the potential to have elevated concentrations of naturally occurring
contaminants in the soil.

Residential occupation and food production on these naturally contaminated soils is an important
consideration for the Project. While Nuiphaovica holds no authority or responsibility with regard
to the food that people grow and eat from the land outside the Project footprint or from where
they may acquire their food in general, the Company will implement measures directed at
educating local residents on the risk of arsenic exposure and controlling the quality of food served
to Project staff onsite. Nuiphaovica will also implement a soil cleanup programme within the
Project footprint where soils exceeding an established threshold value will be excavated and
moved in an engineered facility so that the remaining soils in work areas do not represent an
unacceptable arsenic exposure risk.

Nuiphaovica will complete an environmental and social assessment of each proposed relocation
site to ensure that site conditions are suitable for residential and/or agricultural development from
both the arsenic risk exposure and environmental impact perspectives. These evaluations will
include due consideration for air, water, and soil quality issues as they may affect relocated


Nuiphaovica, Vietnam                                                                        Page 141

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-066



individuals. Also, Nuiphaovica will provide its assistance to the local Vietnamese authorities in
educating local residents on how to reduce their risk of arsenic exposure to the maximum practical
extent as part of its community development initiatives.

For each relocation site Nuiphaovica will provide housing, green space and community facilities.
All households in the new resettlement sites will be provided a suitable fresh water supply and
will be equipped with appropriate wastewater treatment systems meeting local and international
standards to ensure a healthy environment and minimal impact on the environment.

7.15.2 Environmental Impact Assessment

Prior to final acceptance of any relocation site, an Environmental Impact Assessment (EIA) will
be completed to ensure safe living conditions and no significant impacts on the environment.
Each EIA must be submitted to the provincial Department of Natural Resources and Environment
(DONRE) where it is reviewed and commented on by Commune, District and Provincial officials
before the relocation site can be approved for construction.

Objectives for Preparing the Environmental Impact Assessment (EIA)

The EIA is used by the regulators as a scientific and technical document to analyze, evaluate and
forecast any adverse, direct or indirect, short or long-term impacts that may be caused by each
project, including:

       · Socio-economic impacts on agriculture and the development of business enterprises;

       · Environmental impacts;

       · Health care impacts;

       · Culture impacts;

       · National defence impacts; and

       · Other areas as may arise.

The EIA has become a legal and technical tool for environmental management and appraisal for
projects in Vietnam.

Legal Basis

Environmental Impact Assessments will be conducted for each relocation site based on
requirements under:

       · Law on Environment Protection passed by Vietnam National Assembly on December
            27, 1993 and the Ordinance signed by the President and issued on January 10, 1994;

       · Decree No. 175/CP dated October 18, 1994 of the Government concerning the
            guidance for implementation of the Law on Environment Protection;


Nuiphaovica, Vietnam                                                                    Page 142

Nui Phao Mining Project                 Resettlement Action Plan               Final 20-Jul-066



        · Circular No. 490/TT-BKHCNMT dated April 29, 1998 concerning guidance for
            preparation and appraisal of Registration applications for environment standards of
            project owners;

        · Decree No. 143/2004/ND-CP dated July 12, 2004 of the Government concerning the
            amendment and supplement of Article 14, Decree No. 175/CP dated January 18, 1994
            concerning the guidance for implementation of the Law on Environment Protection;

        · Regulations on environment protection in construction sector as promulgated together
            with Decision No. 29/1999/QD-UB dated October 22, 1999 of the Minister of
            Construction;

        · Regulations on Environment Protection of Thai Nguyen PC as enclosed with Decision
            No. 1593/2002/QD-UB dated June 04, 2002 of Thai Nguyen PC;

        · Instruction No. 36/CT-TW dated June 25, 1998 of the Politburo concerning
            strengthening environment protection during the industrialization and modernization
            process; and

        · Standards of Vietnam on environment, TCVN 1995, TCVN 2000 and TCVN 2001.

Assessment Content

The basic content of each relocation site EIA includes:

        · Project description (of relocation site development);

        · Baseline conditions;

        · Environmental and sociological impacts;

        · Mitigation measures;

        · Environment monitoring program; and

        · Conclusions.

Initial assessment and monitoring of each proposed resettlement location is conducted on noise
levels, air quality, soil arsenic and metal concentrations, surface and ground water quality and
land elevation relative to the risk of flooding (summarised below).

7.15.3 Key Monitoring Parameters

Air Quality

Air monitoring data for total suspended particulates (dust), carbon monoxide, sulphur oxides,
nitrogen oxides, hydrogen sulphide, and noise levels are collected to measure existing conditions




Nuiphaovica, Vietnam                                                                 Page 143

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-066



in the relocation area. Calculations are then done to estimate future conditions based on the
number of people and vehicles expected during the construction period and thereafter.

Soils

Soil quality at relocation sites needs to be of a standard that is acceptable for residential use.
Sampling is undertaken to assess arsenic and metal concentrations in soils. Prevailing conditions
in the area include locally elevated levels of naturally occurring arsenic and some existing
contamination due to commercial activities, including artisanal mining and agriculture.

A risk assessment was carried out by Pottinger Gaherty Environmental Consultants Ltd. (March
2006) to quantify the human health risks associated with the existing site conditions. The study
found that arsenic concentrations in local soils below 50 mg/kg posed an acceptable human health
risk for long-term residential and agricultural use (see below). Where arsenic concentrations
exceed this value, Nuiphaovica will remove the contaminated soil, as per local requirements, and
replace the material with fill. To this end, clean material is being sought for those locations where
elevated contaminant levels are identified.

Water

Both surface and ground water are assessed to determine potential water supplies at the proposed
relocation sites. Nuiphaovica will ensure that potable water meeting Vietnamese and International
drinking water quality guidelines is provided to households at all relocation sites.

Flood Elevations

All relocation sites are designed to safeguard against the flooding that will result from a 25-
year/24-hour precipitation event. Land surveys will be accomplished at each relocation site to
establish the maximum flood level and that level then correlated to the locations of the new home
sites. Where development areas are below the flood level, clean fill will be placed to where the
home site foundation is at or above the maximum flood elevation.

7.15.4 Treatment Facilities

Nuiphaovica will ensure that all relocation sites receive an adequate supply of potable water and
an appropriate treatment system for sanitary wastes. While the water treatment plant at Nam Song
Cong is being built by the local District, Nuiphaovica will also build water treatment facilities
where necessary for the other sites in close cooperation with the local government officials. Once
built, Nuiphaovica will donate the new treatment facilities to the local government agencies,
which will maintain and operate them at their expense. Nuiphaovica will monitor the quality of
the drinking water supplies and of sewage treatment effluent to document that proper treatment is
occurring and will provide assistance as needed if remedial measures are required.




Nuiphaovica, Vietnam                                                                      Page 144

Nui Phao Mining Project                Resettlement Action Plan                   Final 20-Jul-066



Wastewater Treatment

It is planned that each house being built will be equipped with a septic tank to remove solids and
trap oils and grease. Liquids will flow from the septic tanks to a waste treatment facility, where
further sedimentation will occur and the effluent will be aerated to reduce the biological oxygen
demand (BOD). After aeration and further settling of solids, the effluent will be chlorinated and
discharged into the receiving environment. Alternatively, for some relocation areas, houses may
be connected to municipal water treatment systems.

Water Treatment

Nuiphaovica will provide a suitable potable water drinking source to all resettled households.
Baseline water characterisation indicates that most of the contaminants in local water sources are
present as suspended solids and that dissolved arsenic (the primary contaminant of concern) is
generally below acceptable drinking water guidelines. Water treatment will include filtration of
suspended solids and chlorination to reduce bacterial counts to acceptable levels. Water quality
analyses will be conducted on a regular basis to document that drinking water supplies meet
applicable Vietnamese and World Health Organisation drinking water standards.

7.15.5 Key Results of EIAs Completed to Date

At the time of writing, three EIAs had been completed for the Nam Song Cong, Hung Son 2 and
Hung Son 3 sites, with more planned for each resettlement location. Nuiphaovica has been
utilising the services of the Centre of Environment Monitoring and Protection (CEMP), located in
Thai Nguyen City, to conduct the environmental assessments.

Key results from the EIAs completed include:

        · Average arsenic concentrations are typical for the area with relocation sites averaging
            between 4.1 mg/kg (Nam Song Cong) to 24 mg/kg (Hung Son 3). These values are
            well below the acceptable long-term risk for residential and agricultural soil
            concentration of 50 mg/kg level as determined by the human health risk assessment.

        · Air quality at the sites remains fairly good as each location is in a predominantly
            agricultural area and not as likely to be impacted by commercial and other activities
            that affect some areas in the region.

        · Relocation site design includes filling the area to above the flood level resulting from
            the 25-year/24-hour precipitation event to safeguard households from regular flooding.

        · Both surface and shallow ground water analytical results indicate elevated coliform
            bacteria counts at almost all locations; however, with chlorination treatment, safe
            drinking water supplies can be provided at the relocation sites. Arsenic and metal
            levels have been found to meet drinking water standards when the suspended solids are
            removed through filtration.


Nuiphaovica, Vietnam                                                                    Page 145

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-066



Baseline data for key monitoring parameters are provided in the separate and standalone EIA
reports held by Nuiphaovica at their offices.

7.15.6 Risk Assessment Summary

As previously mentioned, Nuiphaovica retained Pottinger Gaherty Environmental Consultants
Ltd. to assess the cancer and non-cancer risks to human health in the general Project area. The
risk assessment evaluated the existing conditions in the Project site area from the worker safety
perspective and also from a residential and agricultural perspective post closure. It also evaluated
the Nam Song Cong relocation site. The findings of the risk assessment show:

        · Current Site Risks (baseline condition): There are certain areas in the Project vicinity
            where arsenic concentrations in soil exceed international non-cancer and cancer risk
            objectives.

        · Non-cancer risks for children (Hazard Quotient = 5.12) and adults (Hazard Quotient =
            2.42) exceed the risk objective of 1.0. Incremental lifetime cancer risk for an adult is
            4.7x10-4 (approximately 5 in 10,000). Most human health risk assessments establish
            the upper boundary for acceptable risk at between 1x10-4 and 1x10-6 depending on site-
            specific conditions.

        · Resettlement Risks: Soils in the Nam Song Cong resettlement site have been sampled,
            analysed and found to have considerably less arsenic and other contaminants present
            than soils in the general Project area. Cancer and non-cancer risks to children and
            adults who are relocated from the Project area to Nam Song Cong are reduced ten-fold
            to within acceptable risk objectives.

        · Offsite Receptors: Nuiphaovica will undertake a soil remediation programme within
            the Project area boundary. The risk to offsite residents and farmers living and/or
            working near the clean-up area boundary from the inhalation of fugitive dust is 8.2x10-
            7, well within acceptable risk objectives (less than 1x10-4 to 1x10-6 depending on site-
            specific objectives).

The arsenic risk studies accomplished to date clearly demonstrates that Nuiphaovica's plan for
rehabilitating the land results in environmental improvement and reduced risk to workers, the
resettled people and local community members.

7.16Cost of Relocation Site Development

Cost estimates for relocation site development and compensation of public works are summarised
in CHAPTER 13.




Nuiphaovica, Vietnam                                                                     Page 146

Nui Phao Mining Project              Resettlement Action Plan                       Final 20-Jul-06



      CHAPTER 8.             ECONOMIC AND LIVELIHOOD RESTORATION
                                                      MEASURES

8.1 Background

Experience indicates that involuntary resettlement under development projects, if unmitigated,
often gives rise to severe economic, social, and environmental risks: production systems are
dismantled, people face impoverishment when their productive assets or income sources are lost,
people are relocated to environments where their productive skills may be less applicable and the
competition for resources is often greater. Community institutions and social networks can be
weakened, kin groups dispersed, while cultural identity, traditional authority, and the potential for
mutual help may be diminished or lost. Involuntary resettlement may cause severe long-term
hardship, impoverishment, and environmental damage unless appropriate economic and
livelihood restoration measures are carefully planned and carried out.

The Nui Phao Mining Project will cause impacts not only on physical displacement but also on
economic activities and income generation, especially when acquiring productive land for the
Project (in the operational areas and in relocation sites). Unfortunately replacement land for
farming is generally available far from the affected sites and replacement areas are often much
smaller than the areas of land loss.

The total number of affected households is 1,910 households, with a population of 7,464
persons. Even with great efforts to minimise land acquisition for the Project, land acquisition and
physical relocation in some areas is unavoidable and therefore, this Resettlement Action Plan is
developed in order to harmonise economic, social and environmental development and provide
measures to assist affected people to restore their livelihoods in a sustainable manner through
long-term income generation activities and associated measures. Effective economic and
livelihoods restoration is key to ensuring that this resettlement program is developed in a
sustainable manner to safeguard people from becoming worse off than before their displacement
and to maximise their benefits from the Project and, wherever possible, improve their livelihoods
after Project implementation.

8.2 Summary of Key Economic Activities and Associated Impacts

In order to provide context for the economic and livelihood restoration strategy and programs set
out in this chapter, summary details of impacts on land use, income generation and other activities
is provided in the following sections. A summary of the status of agricultural land use of people
who are living in the Project area and from the annual report on land use status of Dai Tu district
is shown in table 8.1 below.

Note: the data provided in the following tables represents commune level information and not
only data for affected households in order to provide an overview of the agricultural activities,
land use status and income generation in the area.



Nuiphaovica, Vietnam                                                                     Page 147

Nui Phao Mining Project              Resettlement Action Plan                Final 20-Jul-06



                                            Table 8.1
                    Land Use Status in the Main Project Affected Communes


 No.           Criteria             Unit           Ha Thuong     Hung Son         Tan Linh

  1   Number of Agricultural     Household            1,619        2,137            1,307
      Households

  2   Paddy area                    Ha                247.1                         163.3
                                                                   465.3

      Average per household         Ha                 0.15        0.22             0.12

  3   Annual maise area             Ha                 61.3        98.4              7.4

      Average per household         Ha                 0.04        0.06             0.006

  4   Annual sweet potato area      Ha                 24.9         70               17.1

      Average per household         Ha                0.015        0.003            0.013

  5   Annual cassava area           Ha                   7           0                5

      Average per household         Ha                0.018        0.025            0.013

  6   Annual vegetable area         Ha                 29.3        54.2             16.6

      Average per household         Ha                0.0008       0.004            0.0008

  7   Annual peanut area            Ha                  1.3         8.8               1.1

      Average per household         Ha                0.065        0.117            0.555

  8   Tea area                      Ha                 106         250               726

      Average per household         Ha                0.029        0.44             0.71



Table 8.1 illustrates how people in Ha Thuong commune are mainly growing rice while people in
Hung Son and Tan Linh communes grow tea for cash crops. From the census and inventory of
affected land and assets, productive land impacts have also been analysed and summarised in
tables 8.2 and 8.3.




Nuiphaovica, Vietnam                                                              Page 148

Nui Phao Mining Project                   Resettlement Action Plan                           Final 20-Jul-06



                                                  Table 8.2
               Impact on Productive Land in the Project Affected Area and at the
                                       Proposed Relocation Sites


   Impact on Agricultural Land in         Impact on Agricultural Land in Five                  Total
         Operational Areas                     Residential Relocation Sites

  Commune        Area       Total HH         Site        Area (ha)     Households     Area (ha)     Total HH
                  (ha)      Affected                                   Affected                     Affected

 Ha Thuong       178.05       697      Khe Thuy Tinh       16.60          45           194.65          742



 Hung Son                                Hung Son 2        5.02          108

                 84.24        262        Hung Son 3         7.2           33

                                         Nam Song          14.88         224            29.77          656
                                            Cong

                                        Market centre
                                        and handicraft     2.68           60

                                          workshop

 Tan Linh        30.47         87             -               -            -            24.5           78

 Binh Thuan                               Xom Trai          7.5          167             7.5           167

 Total           292.76      1,046            -            53.88         637           346.63         1,643




                                                  Table 8.3
                    Affected Land in the Project Operational Area (by sectors)


  Sector       Total Affected      Total Persons        Households       Agricultural Land   Average Area per
                 Households           (head)            Affected on            Area             Household
                                                      Agricultural Land        (m2)                (m2)

     1               86                345                   67               112,974              1,686

     2              235                776                  155               176,568              1,139

     3              355               1,366                 344               986,612              2,868

     4               50                204                   96               212,478              2,213

     5               76                260                  102               351,782              3,448

     6              351               1,325                 282              1,087,218             3,855

 Total             1,153              4,276                1,046             2,927,632             2,841



Tables 8.2 and 8.3 show that on average 0.21 ha will be acquired from each family, or 0.18 ha per
household at relocation sites and 0.28 ha per household in the Project operational area.

Nuiphaovica's studies of net income from tea and annual crop production (rice, sweet potatoes
etc.) derived from interviews with 15 families in Ha Thuong, Hung Son and Tan Linh (07 men
and 08 women) and with leaders of affected communes shows that, on average, net income from
tea is about VND 51,000,000 and from annual crops is about VND 15,000,000 per ha per
household annually. Therefore, by losing an average of 0.21 ha each affected households will be

Nuiphaovica, Vietnam                                                                              Page 149

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



on average subject to losses of       approximnately VND 10 million per year as a result of
agricultural land acquisition.

Economic development in the Project area is mainly based on farming and animal husbandry.
Table 8.4 below shows a summary of the different income levels for people in the affected
communes.

                                              Table 8.4
                          Monthly Income per Head in the Project Area


    Income           Ha Thuong            Hung Son              Tan Linh               Total

(million VND) Number of     Percent Number of    Ratio      Number of  Ratio   Number of       Ratio
                    HH                  HH                     HH                  HH

< 0.3               30       5.3%       15       5.6%          17      27.0%       62          6.9%

0.3- 0.5            124      21.7%      31       11.6%         29      46.0%       184        20.4%

0.5-0.7             130      22.8%      50       18.7%         9       14.3%       189        21.0%

0.7-1               127      22.2%      71       26.6%         7       11.1%       205        22.7%

>1                  160      28.0%      100      37.5%         1       1.6%        261        29.0%



Table 8.4 shows that about 70% of people generate an income of less than VND 1,000,000 per
year. This is considerably lower than those few families who earn upwards of VND 15,00,000 for
annual crops or tea cultivation.

8.3 Eligibility and Entitlements for Restoration Programs

The guiding principles of the Resettlement Action Plan on economic and livelihoods restoration
due to loss of productive assets and income generation opportunities include the following:

        · Individuals and households affected either by land acquisition at the Project
            operational area or at the relocation sites will be eligible to receive an allowance for
            economic and livelihoods restoration/re-establishment activities.

        · Eligibility for each household is based on the extent of loss of income (from
            productive land or businesses) and priority is given to severely affected people.

        · Severely affected people are those whose permanent loss is equal to or more than 30%
            of their existing income source and will be mostly those households who have more
            than 30% of their productive land permanently affected (especially those groups who
            cannot continue farming in Sectors 1, 2, 3, and 5, as well as those at proposed
            relocation sites and families who have businesses that will be affected).

        · Affected people that lose less than 30% of their land and/or productive assets but
            whose remaining 70% is not considered economically viable will also be classified as
            severely affected.


Nuiphaovica, Vietnam                                                                      Page 150

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



       · Nuiphaovica assigns to severly affected persons who are eligible a minimum of VND
            6 million towards the cost of one or more designated vocational training and income
            generation programs of their choice. The level of allowance for other affected
            households is based on their estimated loss of income.

       · The number of eligible persons of each household depends on the severity of affected
            productive assets. The average family will have from one to two persons eligible for
            these economic and livelihood restoration programs.

       · For households that can continue farming in Sector 6-safety area and in an existing
            area of the K10 army facility, or are allocated land elsewhere, one person will be
            assisted with economic and livelihood restoration assistance.

       · Eligible persons can choose to receive a cash allowance rather than participate in a
            Nuiphaovica designed program or activity, although these people will remain subject
            to monitoring by Nuiphaovica to assess their post-relocation income levels and
            livelihood status.

Based on the above principles it is estimated that there are approximately 3,000 affected people in
need of income generation and livelihood restoration assistance.

8.4 Consultation and Identifying Potential Activities and Program

Two rounds of consultation for economic restoration programs have been conducted by
Nuiphaovica in the period from June 2004 to April 2005. Many meetings and discussions were
held with key stakeholders (local authorities, affected people, local unions etc.) to find solutions
for generating employment and income for affected people after land acquisition and relocation.

Consultation and information dissemination related to economic restoration activities has been
achieved through various channels and instruments similar to those described for consultation on
proposed relocation site options (see Section 8.4). Key results of this engagement with affected
people are summarised in tables 8.5, 8.6 and 8.7.




Nuiphaovica, Vietnam                                                                    Page 151

Nui Phao Mining Project                          Resettlement Action Plan                  Final 20-Jul-06



                                                        Table 8.5
                  Options for Off-Farm Activities and Affected Households' Choices


                 Activity                          Total          Ha Thuong     Hung Son       Tan Linh


Construction material production                   142                 60           62             20

Animal breeding and food processing                262                 160          75             27

Tea planting and processing                        289                 177          83             29


Commercial services                                252                 152          78             22

Working for Nuiphaovica                            427                 299          90             38

Other kinds of businesses                          133                 71           46             16

No proposed preference                             310                 198          94             18



                                                        Table 8.6
                                     Preference for Other Kinds of Assistance


              Assistance type                      Total          Ha Thuong     Hung Son       Tan Linh

Loan                                               182                 128          47              7

Technical assistance (training)                    234                 151          58             25

Other                                              39                  15           19              5

Both loan and technical assistance                 224                 124          82             18



                                                        Table 8.7
                   Results of Second Round of Consultation (In Order of Preference)


                    PAPs' Option                        Priority   Ha Thuong Hung Son  Tan Linh      Total

Cash assistance for self-economic development              1           50      89      16         155
                                                           2           14      35      0           49

                                                           3                   23      0           29
Vocational training and working for Nuiphaovica            1           40      48      12         100

                                                           2            5      8                      13

                                                           3            1      2                       3

Driver (car, truck, bulldozer etc.)                        1           23      38        12           73

                                                           2           17      15        0            32

                                                           3            3      12        0            15
Training for repairing motorbike, cars                     1            8      21        8            37

                                                           2            9      8         0            17

                                                           3            4      1         0             5

Training for sewing and laundry                            1            4      14        6            22

                                                           2            1      11        0            12

                                                           3            1      5         0             6
Training to be electrician, repair washing machine,        1            7      10        2            19


Nuiphaovica, Vietnam                                                                            Page 152

Nui Phao Mining Project                         Resettlement Action Plan                 Final 20-Jul-06



                   PAPs' Option                        Priority   Ha Thuong Hung Son Tan Linh      Total

refrigerator etc.                                         2            2      15                    17

                                                          3            3      3                      6
Canteen and restaurant services                           1            2      11       6            19

                                                          2            5      12       0            17

                                                          3            2      8        0            10
Basic business management                                 1            5      6        4            15

                                                          2            9      11       0            20

                                                          3            7      11       0            18

Handicraft manufacturing                                  1            2      2        10           14
                                                          2            7      2        0             9

                                                          3            2      4        0             6
Vocational training for labour export                     1            7      5        0            12

                                                          2            0      0                      0

                                                          3            0      0                      0

Training to be nurses                                     1            2      6        3            11

                                                          2            3      2        0             5

                                                          3            0      1        0             1
Basic IT                                                  1            4      4        3            11

                                                          2            0      5        0             5

                                                          3            2      2        0             4

Mechanical Training                                       1            1      7        2            10

                                                          2            4      6        0            10

                                                          3            0      4        0             4
Foreign languages                                         1            1      4        2             7

                                                          2            3      5        0             8

                                                          3            2      3        0             5
Construction services and furniture manufacturing         1            3      1        2             6

                                                          2            2      7        0             9

                                                          3            1      2        0             3
Raising husbandry                                         1            1      2        1             4

                                                          2            3      5        0             8

                                                          3            2      7        0             9

Agricultural extension                                    1            0      0        4             4

                                                          2            2      2        0             4

                                                          3            2      2        0             4
Administration skills                                     1            0      1        0             1

                                                          2            3      6        0             9

                                                          3            1      0        0             1



These results are indicative of the likely preferences of affected people for economic and
livelihood restoration assistance. However, many affected households have not provided a
preferred option as they would rather wait until closer to the time when their land will be acquired
and compensation payments made. Nuiphaovica encourages early involvement of affected people
in a program of their choice. Experience so far shows that as land is required by the Project,



Nuiphaovica, Vietnam                                                                          Page 153

Nui Phao Mining Project                          Resettlement Action Plan                              Final 20-Jul-06



affected families are opting to access one or more of the Nuiphaovica designed economic and
livelihood restoration activities.

8.4.1 Initial Proposed Program Options for Economic Restoration

As a result of ongoing consultation with affected people and other stakeholders, and background
research on the feasibility of different programs, a list of proposed options for income generation
are shown in table 8.8. Since many affected households are yet to confirm their preferred strategy
for economic and livelihood restoration, the numbers provided are indicative only. Nuiphaovica
remains flexible in developing programs to suit the evolving preferences and needs of affected
people. As further consultation is completed during the early stages of the Resettlement Action
Plan implementation, the specific economic restoration activities and the proposed number of
participants will be confirmed.

                                                         Table 8.8
                  The Proposed Programs for Economic Restoration/Rehabilitation


   No                                  Activities                                    Number of Trainees/Participants

   01     Training to work for Nuiphaovica                                                         400

   02     Vocational training for handicraft manufacturing                                        1,450

   04     Business in market centre and training in business anagement                             100
          and regulations of the market centre.

   05     Vocational training for working in foreign countries (labour                             200
          export)

   06     Garment industry training and employment                                                 250

   07     Nurse                                                                                    50

   08     Tire repair shop                                                                         50

   09     Mechanical service                                                                       50

   10     Laundry service                                                                          50

   11     Electrician                                                                              50

   12     Driver                                                                                   50

   13     Restaurant (cooking, management)                                                         50

   14     Administrative staff                                                                     50

   15     Information technology/computer skills (basic level)                                     50

   16     Hairdresser                                                                              50

   17     Agricultural extension/animal husbandry programs                                         50

   18     Construction services and making furniture                                               50

          Total                                                                                   3,000
Note: these figures are estimates provided by Nuiphaovica however as described above this will be modified and updated as
affected people confirm their preferences for economic and livelihood restoration opportunities.

The diversification of non-farm income generating activities as well as agriculture growth in the
area is necessary to ensure food security, especially of the vulnerable relocated or resettled
populations, and is critical to the enhancement of rural livelihoods and community resiliency.


Nuiphaovica, Vietnam                                                                                        Page 154

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



Unless there are rapid improvements in agricultural productivity as well as alternative livelihood
creation and efficiencies, those displaced by the Project will remain vulnerable and impoverished.

To diversify and increase income, the Nuiphaovica economic and livelihood restoration programs
will promote income-generating activities and provide vocational and technical skills training in,
for example, driving, mechanical repairs, laundry service, catering, food processing and value
added technologies, and training in small- and medium-sized enterprise creation and expansion to
encourage development of viable businesses.

Nuiphaovica through its programs will provide business development services to the existing
businesses identified in the census and inventory, as well as facilitate the creation of new small-
and medium-sized enterprises. These new small- and medium-sized enterprises will be created to
support some of the services and needs that will arise out of a population influx into the
community due to the Project. These include businesses such as tailoring for mine worker
uniforms, block-making for construction, high value vegetable and fruit production, livestock /
meat production, and transportation services.

To support small- and medium-sized enterprise creation and expansion, Nuiphaovica will also
consider the development of a revolving micro-credit and education scheme, targeting both farmer
and business groups. This program would likely be established under the Nuiphaovica community
development program (see also Section 0).

Consultation and information dissemination for affected people on economic restoration programs
is central to the ongoing development of activities by Nuiphaovica and its partners. Annex B
provides and example poster that describes the different economic and livelihood restoration
programs currently proposed by the Company, the eligibility criteria and some lessons learnt from
different pilot programs that have already been implemented, such as mushroom growing and
garment manufacturing.

8.5 Detailed Planning for Economic Restoration Activities

Nuiphaovica's aim is to identify and develop economic and livelihood restoration activities and
programs that help affected persons and households to re-establish their livelihoods or create new
ones that are long-term and can provide sustainable and secure income sources. The Company
develops its programs based on the following principles:

       · Vocational training is central to most of the activities and programs developed by
            Nuiphaovica. Training and skills enhancement are essential for affected persons to
            obtain the necessary tools to change livelihood strategies and develop long-term and
            stable income sources.

       · Nuiphaovica seeks to work with partners who can offer an actual employment or
            business opportunity after vocational training is completed. Contracts include written
            requirements for service providers to either directly employ individuals after their


Nuiphaovica, Vietnam                                                                     Page 155

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



            vocational training is completed or in the case of other income generating activities, to
            provide a guarantee of finding buyers for products, such as mushrooms or handicrafts.

       · Nuiphaovica requires service providers to incorporate supervision and support for
            people as they are getting started in their business venture or new job, to ensure that
            programs are implemented effectively and that affected people have access to any
            ongoing technical support they may require.

       · Employment conditions must meet labour standards for Vietnam and Nuiphaovica
            visits all potential locations of employment and requires written guarantee of
            acceptable conditions.

       · Nuiphaovica together with its partners and service providers, undertake extensive
            background research on each employment or income generating activity that is
            proposed.     For example, for garment manufacturing, the research would involve
            assessment of the types of positions available and job tasks, salary levels and
            conditions, locations of proposed employment and so on. Whereas for handicraft
            manufacturing, market research would be conducted and include where to buy bamboo
            and at what prices, what materials and equipment would be required, where the
            products could be sold and the expected income from handicraft sales.

       · Nuiphaovica provides detailed information to affected people about each program or
            employment opportunity to enable them to make fully informed decisions about their
            preferred livelihood restoration option. Company staff has daily contact with affected
            families.

Box 8.1 provides a case study of mushroom farming initiatives currently being undertaken by
Nuiphaovica with a number of affected people.

Box 8.1 CASE STUDY: Mushroom Growing Economic Restoration Program

Nuiphaovica has developed a mushroom growing/farming initiative for affected people that is
designed to provide families with an alternative income source and livelihood strategy following
land acquisition and displacement as part of Nui Phao resettlement program.

Partner: Institute for Agriculture, Genetics and the Centre for Plant Biotechnology (under the
Ministry of Agriculture and Rural Development). The Institute was contracted to provide market
analysis, vocational training and ongoing support to participants to establish a mushroom growing
enterprise. Vocational training requires approximately one week and ongoing support and
supervision is initially for 3 months.




Nuiphaovica, Vietnam                                                                    Page 156

Nui Phao Mining Project               Resettlement Action Plan                   Final 20-Jul-06



Box 8.1 continued

Participants: Thirty (30) families are currently participating in the program from Nam Song
Cong. These families are some of the first households to be affected through loss of agricultural
land required for the relocation site development. One of the participants was identified as a
candidate to be the `seed bank' and Nuiphaovica nad its partner worked to establish this family as
a separate business to supply and sell seeds to the mushroom growers.

Investment required: Approximately VND 2 million per vocational training course and for 3-
months support and supervision from the Institute. A further VND 5 million is required to buy
seeds and equipment. The total investment per family is therefore approximately VND 7 million.
These costs are paid by Nuiphaovica for each family involved as part of their designated
economic and livelihood restoration allowance.

Income potential: Based on the research undertaken the average income potential is estimated at
80,000 ­ 100,000 VND per day (per family). Currently, families are actually able to obtain
considerably higher prices as local demand is high, although people are aware that as more
growers are introduced prices are likely to stabilise to these estimates.

Key background features and market research results:

A survey of restaurants and local markets was conduced to estimate the quantity of mushrooms
that are currently available and purchased in the local area. For example, a total of sixteen
restaurants were surveyed in Dai Tu town and Thai Nguyen city. In Dai Tu town surveyed
restaurants reported using between 50 kg ­ 300 kg per month of mushrooms and in Thai Nguyen
city restaurants reported using between 85 kg ­ 170 kg per month.

Market research identified that local demand would be sufficient to support the quantity of
mushrooms provided by these growers in the foreseeable future. However, in addition, the
Company also identified other markets in Thai Nguyen province, Ho Chi Minh City and
internationally in China. Nuiphaovica negotiated as part of its contract a guarantee from the
Institute to directly purchase mushrooms produced from these 30 families for up to 5 years (if
local demand becomes low or better prices can be obtained). The Institute has various long-
standing trading arrangements with China (approximately 1,000 tonnes per year exported) and
other markets, and is therefore able to provide this guarantee.

Lessons learned: Nuiphaovica continually monitors the progress of each mushroom growing
businesss and collects and collates lessons learned to share with other affected people. Early
results and findings from the mushroom growing program have been displayed in the Project
Information Centre, within village halls and disseminated to affected households through the
`Local Information Network'. Currently, each family is producing approximately 03 kg of
mushrooms per day and this supply is being readily taken up by local people themselves who at
the moment buy direct from the mushroom growers.



Nuiphaovica, Vietnam                                                                  Page 157

Nui Phao Mining Project                Resettlement Action Plan                      Final 20-Jul-06



The process for developing economic and livelihood restoration programs includes the following
steps:

     (i)    Prepare a draft framework for each activity and program including key information on
            income potential, training requirements, selection criteria (if any) and other data.

    (ii)    Present the details for different programs and options to affected persons, consult with
            them on the draft framework and make amendments or modifications as required.

    (iii)   Develop detailed implementation plans for each program based on the interest shown
            and preference of affected persons.

    (iv)    Arrange contract with service providers/employers and schedule vocational training
            and program implementation in accordance with the schedule of land acquisition and
            compensation.

     (v)    Implement vocational training and subsequent program activities and provide intensive
            ongoing support to affected people during early implementation.

    (vi)    Monitor implementation of program activities by affected people, whether they are in a
            salaried position, undertaking a small business enterprise or an agricultural extension
            program. Monitoring will include comparison of pre and post resettlement income
            levels for affected households.

   (vii)    Report on monitoring and lessons learned and prepare results and findings to consider
            in future program design. Disseminate findings and results from programs to other
            affected families to assist them in decision-making about their future livelihood
            restoration options.

8.6 Land-Based Programs and Initiatives

8.6.1 Re-establishment of Agricultural Activities

The total area of agricultural land acquired for the Project operational area and relocation sites is
about 347 ha affecting approximately 1,643 households. However, Sector 6 is considered as a
safety area for the operations and can therefore continue to be used (with appropriate precautions
and/or restrictions) even though the affected people will be compensated for land and buildings.
Houses will be removed in this area but agricultural activity in the sector (about 110 ha) can
continue for about 282 housesholds. Thus, the actual area of agricultural land to be taken out of
productive use by the Project operational areas is about 183.8 ha.

The total area of K10 army facilities is about 130 ha and it is estimated that approximately 85 ha
could be allocated to affected families (about 80 households) in Ha Thuong commune for
farming, commercial forestation or forest protection as an economic restoration program. Land
use rights in this area will belong to Nuiphaovica once the army facilities have been relocated.
The actual area of land that can be used for farming will be reviewed by Nuiphaovica and Ha


Nuiphaovica, Vietnam                                                                      Page 158

Nui Phao Mining Project                 Resettlement Action Plan                   Final 20-Jul-06



Thuong commune authorities at that time, and affected people in Ha Thuong will be further
consulted on their ideas and preference for land use at this site.

The Khe Thuy Tinh site is also being developed to allow for approximately 11 ha of farming for
affected households who choose to relocate to this site.

Agricultural extension programs and associated activities will be available to eligible affected
people to assist those that continue with farming activities to achieve accelerated growth and
intensification to improve agricultural outputs (see below).

8.6.2 Agricultural Extension and Related Programs

In the past, agriculture growth has been achieved through expanding cultivation, but the land
available for new farming is limited, a situation compounded by the land take associated with the
Project. In order to alleviate this, accelerated growth must involve a transition to more intensive
farming and improved husbandry, applying increased inputs to farms, promoting livestock / crop
integration, increasing crop diversification, and improving access to technical expertise, inputs,
agricultural technology and credit.

The economic and livelihood restoration program will address food security and vulnerability
factors, and provide training in areas such as improved farming techniques, soil fertility, natural
resource management, participatory farm management, marketing, seed production and integrated
pest management in order to increase food production and productivity for farmers.

For cash crops, in particular tea, programs will aim at improving the economic and social well-
being of smallholder tea farmers and the environmental sustainability of tea farming. This will be
achieved by transfer of production technologies and development of trade and market information
systems around tea. These key activities will be executed by conducting capacity needs
assessment of producer organisations, delivering targeted training to improve capacity of
individuals/organisations, training farmers in improved tea cropping systems using discovery
based learning approaches, and studying internal tea marketing to identify weakness and design
interventions to make the market more efficient.

Currently, specific programs related to these objectives include:

        · Agricultural intensification programs: A pilot program for thirty people will start at
            in June 2006. The aim of this program is to improve sustainable tea production among
            tea producing farmers. Activities include training in sustainable crop production
            systems and tea farm management and provision and facilitation of access to
            agricultural inputs, equipment and tools. Initial investment for training and
            implementation is approximately VND 1 million with approximately VND 5 million
            required for fertiliser and equipment.

            Other agricultural extension programs will be developed for different food and cash
            crops as economic and livelihood restoration plans develop.


Nuiphaovica, Vietnam                                                                    Page 159

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



       · Animal husbandry programs: Animal husbandry has also been identified as a
            suitable income generation activity for affected people who wish to choose this option.
            In particular, animal husbandry has been idenfied by Nuiphaovica and local
            stakeholders as a feasible income generation option for elderly affected people and
            youth, who may have fewer opportunities to participate in other employment or
            business activities. The aim of the animal husbandry program will be to support
            affected households to participate in animal husbandry as a food source and as a
            primary or secondary income source. Activities will include training and advice on
            how best to purchase, raise, feed and breed animals as well as opportunities available
            to sell products locally.

An initial study on income generation in the Project area shows that an annual income from
husbandry of about VND 8,500,000 per household could be achieved.

8.7 Employment and Procurement Opportunities

Nuiphaovica has publicly committed to employing as many local people as possible at all stages
of the Project in order to ensure maximum local capture of the economic benefits of the Project.
The Company's hiring policy is aimed at giving preference to hiring Project Affected Persons and
at minimising influx of non-local job seekers.

Nuiphaovica has established a system that gives first order preference to people directly affected
by resettlement activities, second order preference to the government-recognised residents of the
seven host communes (those communes where the Project area is located and where relocation
sites will be developed), and next order preference to district and provincial residents. Procedures
for identifying and verifying where applicants live will be carried out in conjunction with local
authorities.

Employment policies aim to be appropriate to local capacity and maximise opportunities for local
employment. This includes graded requirements for skilled, semi-skilled, and unskilled positions,
and appropriate training opportunities (see below). All employees will be subject to an
employment agreement and Nuiphaovica has established wage rates at least equal to the rates
published for Foreign Invested Enterprises.

During the construction phase numbers are estimated at 1500 to 2000 people, with a peak period
lasting five to six months. The level of potential local jobs has not yet been formally estimated
and will be assessed by Nuiphaovica and its Construction Contractor. Jobs during the construction
phase will be predominantly temporary although the Project intends to retain construction phase
employees wherever possible into the operations phase of the mine. During the operations phase,
the workforce is expected to comprise of approximately 450 local staff in a range of
predominantly unskilled and semi-skilled positions.

Nuiphaovica and its contractors will require numerous vendors and service providers to meet the
daily operating needs of the Project and also the domestic needs of its employees. Project


Nuiphaovica, Vietnam                                                                     Page 160

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



employees will likely enjoy a higher disposable income level than they have prior to the Project
which will add to the demand for local products and services.

Nuiphaovica has a procurement policy that commits the Company and its main contractors
(including the Construction Contractor) to procure goods and services as much as is feasible from
locally and regionally based companies and suppliers. Currently, for example, the Company has
utilised a local business to design and construct the new cemetery site in Ha Thuong commune,
and various small businesses provide daily operating products to the Dai Tu office and staff.

8.8 Skills Enhancement and Training Activities

Skills enhancement is central to the Nuiphaovica economic and livelihoods restoration programs
for Project Affected Persons. The Company recognises the need to provide affected people with
skills and resources to participate in employment generation and other opportunities that will
provide a sustainable source of income and livelihood security.

Nuiphaovica has identified that a proportion of funds for economic restoration measures need to
be allocated to skills enhancement and vocational training to help the restoration of livelihoods for
relocated/resettled persons whose productive skills may be less applicable in their new situation.
The objectives of Nuiphaovica skills enhancement and training programs is to provide affected
household members with education and training support to improve their socio-economic
opportunities, help them to participate in Nuiphaovica's operations and income generation
programs, and to improve their overall vocational skills.

To increase opportunities for local people to be selected for employment in the new plant and
mine, the Company will organise training courses, including English language training for people
affected by the resettlement program and host commune residents.             In many cases, skills
enhancement programs will also be directly linked to the various income generation and
agricultural extension activities undertaken by the Company. Nuiphaovica plans to identify and
provide skills training that will lead to practical employment and/or business opportunities for
affected people. To this end, the Company seeks partnerships with training and service providers
who can also offer employment or business opportunities to affected people at the end of their
training activites (see Section 8.5).

8.9 Assistance for Small and Medium Enterprises

There are thirty seven small businesses operating along the segment of National Road No. 37 that
will be realigned as a result of Project development. These businesses only provide a portion of
the household income for their owners who also participate in other income generating activities,
usually farming. These businesses will be offered first preference to relocate along the new
segment of the road after realignment and/or will be offered a stall at the Market Centre to be built
at Hung Son 2 relocation site.




Nuiphaovica, Vietnam                                                                     Page 161

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



The Market Centre at Hung Son 2 will have an area to accommodate approximately 100 stalls and
there will therefore be small business opportunities for other Project Affected Persons to operate
at the Centre. The Market Centre is on a main road and very close to Dai Tu town (less than a
kilometre) with good access to passing traffic and townspeople.

Affected people will not have to use their economic and livelihoods restoration allowance on
obtaining stall facilities as Nuiphaovica will invest in the civil works to build the stalls and
provide necessary common infrastructure. Nuiphaovica intends to provide stall owners and other
small business operators with business management training as part of their designated allowance
for economic and livelihood restoration which would also involve assisting small business
operators in buying products and equipment to operate their stalls. Thirty participants will take
part in the first round of business management training in July 2006 and further courses are
expected to follow based on affected people's preferences for training and income generation
opportunities.

An area of the Hung Son 2 site is also being allocated for manufacturing and other activities, and
is likely to include handicraft manufacturing, garment manufacturing and mushroom growing and
sales (see below).

8.10Off-Farm Income Generation Activities

A range of off-farm income generation activities have been identified as potential new livelihood
strategies for affected people. Off-farm employment and business opportunities are important for
affected people to enhance community resiliency and minimise dependency on agricultural
livelihoods that are vulnerable to scarce land availability and shocks such as land degradation and
seasonal conditions. Several of the off-farm programs proposed to date are discussed in the
following sections. Further programs will be developed as the Project progresses and additional
families are in need of support and assistance.

8.10.3 Garment Manufacturing

Employment opportunities in garment manufacturing were identified by Nuiphaovica and local
stakeholders as a potential income generating opportunity for some affected people, particularly
women and young people. Nuiphaovica has sought several opportunities for employment of
affected people with garment factories in Ha Noi and regionally in Thai Nguyen city.

In mid 2005 the Garment Industry Company No. 10 in Ha Noi was contracted by Nuiphaovica to
provide vocational training to affected people who were interested in an employment opportunity
in the garment industry. Twenty five affected people expressed interest in this program and were
provided with 05 months of vocational training at the factory. It was a condition of the agreement
with the garment factory that they would offer employment to all trainees who successfully
completed the training course. Nuiphaovica covered accommodation and other costs for trainees
during the training period as part of the allowance for economic and livelihood restoratio.



Nuiphaovica, Vietnam                                                                     Page 162

Nui Phao Mining Project                Resettlement Action Plan                     Final 20-Jul-06



Nine trainees accepted jobs and are now working in the factory. Average salaries are
approximately VND 700,000 per month. Remaining trainees preferred to obtain a job in a
regional area such as Thai Nguyen and seek job opportunities for themselves.

As a result of interest in garment manufacturing after this initial program and a desire of many
affected people to remain within the vicinity of the district, Nuiphaovica sought other
opportunities within the province. The Thai Nguyen Garment Stock Company will provide
vocational training to thirty affected people beginning in July 2006. This training will also last for
05 months and trainees who complete the course successfully will be offered jobs in the garment
company.

Nuiphaovica visits each garment factory and it is a written contract condition that employment
conditions must meet the labour standards of Vietnam. Nuiphaovica also requires regular reports
on each trainee and undertakes supervision of the affected people during the vocational training
period and afterwards if they accept employment with a company.

Other employment opportunities in garment factories will be sought by Nuiphaovica as the
economic and livelihood restoration program develops and affected people express interest in
these opportunities.

8.10.4 Programs for Handicraft Manufacturing

Handicraft making has been identified as an income generating activity that could be well suited
to the local area and in particular affected women. Nuiphaovica has conducted significant
research into the potential for handicraft manufacturing options and has sought companies who
could help affected people and communities in implementing this type of business.

Two companies were selected to help affected people to generate income after relocation by
creating and selling handicraft products. They are Tien Dong Co. Ltd., (in Ha Tay province) and
Van Loc Co. Ltd., (in Gia Lam district, Hanoi capital). These companies have been operating for
the past ten years and have assisted many local people to earn an income from handicraft
manufacturing. Initially a program for about 1,500 people is proposed and will be divided into
two steps.

       Step 1: a pilot program for approximately 250 people; and

       Step 2: expansion of the program to more than 1,000 Project affected people.

Experience from two handicraft manufacturing companies is that workers could earn from VND
600,000 to 800,000 per month in handicraft manufacturing and therefore if two members from
one household could participate in a handicraft program the familiy income would be about VND
14 million per year.




Nuiphaovica, Vietnam                                                                     Page 163

Nui Phao Mining Project                          Resettlement Action Plan                       Final 20-Jul-06



Pilot Handicrafts Program for 250 People

Nuiphaovica reached an agreement with Tien Dong Co. Ltd to assist in the implementation of a
pilot program to train approximately 250 people to make different types of products from bamboo
such as baskets, curtains, tables, and chairs. The main activities and responsibilities are described
in table 8.9.

                                                         Table 8.9
       Main Activities and Responsibility for a Pilot Handicrafts Program for 250 people


  No.                 Activity                           Responsibility            Status / Indicative Schedule

    1      Site selection for workshop      Local authorities and Nuiphaovica.    Done

    2      Survey and site planning         Consultants selected by Nuiphaovica   Done

    3      Land acquisition and             Awaiting approval from Thai Nguyen    Done
           approval for the Hung Son        People's Committee
           2 site

    4      Inventory of affected land       Local authorities and Nuiphaovica and April, 06
           and assets                       consultants

    5      Detail design and approval       Consultants selected by Nuiphaovica   May to June, 06

    6      Land levelling                   Contractors selected by Nuiphaovica   August, 06
                                            and DDCARC.

    7      Workshop construction            Contractors selected by Nuiphaovica   September, 06
                                            and DDCARC.

    9      Training                         Tien Dong Co., Ltd.                   October to November, 06

   10      Mobilising of                    Tien Dong Co., Ltd., Nuiphaovica and  December, 06 to February, 07
           manufacturing                    local authorities.


This pilot program is scheduled for implementation during late 2006 to coincide with
development of the Hung Son 2 market centre and manufacturing workshop.




Visiting a handicraft manufacturing workshop in Ha Dong
for employment generation programs




Nuiphaovica, Vietnam                                                                                 Page 164

Nui Phao Mining Project                          Resettlement Action Plan                           Final 20-Jul-06



Pilot Toothpick Manufacturing Program for 18 People

In addition to handicraft manufacturing, Nuiphaovica also developed a pilot program for
toothpick manufacturing. The Company signed a contract with Van Loc Co. Ltd. on April 08,
2005 for training (in making toothpicks) and quality testing of trainee's products. The training
was implemented for two months in Gia Lam district of Hanoi capital. There are 18 people from
three affected communes (08 from Ha Thuong commune, 05 from Hung Son commune and 05
from Tan Linh commune) that were selected for this pilot program. The program started on April
15, 2005 and was completed on June 15, 2005. Nuiphaovica provided approximately VND
1,060,000 to cover all expenses such as accommodation, meals, fees and training etc. The main
activities and responsibilities are described in table 8.10.

                                                         Table 8.10
               Main Activities and Responsibilities for a Pilot Program for 18 People


  No.                              Activity                                          Responsibility

   1      Discuss with three communes and select people for           Nuiphaovica and leaders of three affected
          training                                                    communes.

   2      Draft, negotiate and sign contact for a pilot program       Nuiphaovica and Van Loc Co., Ltd.

   3      Arrange for accommodation, meals, training                  Van Loc Co., Ltd.

   4      Monitoring and evaluation of training                       Nuiphaovica and Van Loc Co., Ltd.

   5      Making productive after training                            Trainees

   6      Verify the productive and determine salary for the          Van Loc Co., Ltd.
          first month after training.

   7      Lessons learned and recommendation to local people,         Nuiphaovica and Van Loc Co., Ltd.
          local authorities and management Board of
          Nuiphaovica.


                                                                        Further activities to build on this pilot
                                                                        programme are planned for early to mid
                                                                        2006 in conjunction with business
                                                                        management training initiatives and
                                                                        development of the Hung Son 2 market
                                                                        centre and manufacturing workshop.




 Eighteen people from 03 affected communes were trained for
 toothpick manufacturing in Gia Lam ­ Ha Noi (pilot program)




Nuiphaovica, Vietnam                                                                                      Page 165

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



8.11 Money Management

Nuiphaovica is delivering a series of money management seminars and training courses for
affected households. These seminars and courses are designed to help impacted people to apply
compensation payments appropriately in support of sustainable livelihoods. To prepare for the
seminars and provide focused information and advice, Nuiphaovica first conducts individual
interviews with affected households in the target villages to assess the current level of
understanding about money management and gather ideas for how affected households could best
be supported by various money management initiatives.

To date, fifteen interviews with individual households and other stakeholders have been held in
Hung Son commune. A subsequent seminar with twenty households was then conducted by
Nuiphaovica staff and various partners (see below) in the commune. This seminar was conducted
for households who have received advanced compensation payments as part of the Nam Song
Cong relocation site development. At the seminar Nuiphaovica coordinated discussions on:

       · Strengths, weaknesses, opportunities and threats related to money management for
            affected people and in particular related to their compensation payments;

       · Resources and assistance available from the different partners and Nuiphaovica to
            support improved money management initiatives and activities; and

       · Proposals and ideas of the affected households.

Current partners working with Nuiphaovica on these seminars include:

       · The Bank for Agriculture and Rural Development;

       · The Business Association of Dai Tu district;

       · A local tea company;

       · The Small and Medium Enterprises Association of Thai Nguyen province;

       · The Department of Agricultural Extension of Thai Nguyen province;

       · Local authorities and relevant department representatives; and

       · Local associations and unions.

A number of these partners made presentations during the seminars to present different options
and resources to the affected families. As a result of the seminar affected people have access to a
range of resources and Nuiphaovica also intends to engage its various partners to provide
workshops and training courses on specific topics such as money control, savings and investment
and household economic models. Similar processes will be developed for other affected families
as the program is rolled out to the various villages and communes. To support small- and
medium-sized enterprise creation and expansion, Nuiphaovica will also consider the development


Nuiphaovica, Vietnam                                                                    Page 166

Nui Phao Mining Project             Resettlement Action Plan                    Final 20-Jul-06



of a revolving micro-credit and education scheme, targeting both farmer and business groups.
This program would likely be established under the Nuiphaovica community development
program.

In addition to these money management seminars Nuiphaovica has made an agreement with the
Bank for Agriculture and Rural Development to support its compensation payment process. The
Bank is responsible for arranging cash for compensation payments for Nuiphaovica and attends
all compensation payment transactions. Nuiphaovica informs the Bank of compensation payments
to be made on a given day and the Bank prepares the funds to be disbursed. A representative
from the Bank attends the designated village/commune with Nuiphaovica and local authorities.

In advance of all compensation payments Nuiphaovica distributes details and information about
savings and other banking options to affected households. At the time of compensation payments,
the Bank representative brings along `savings books' for affected families should they choose to
deposit part or all of their compensation payments with the Bank. No fees are associated with
opening a savings account and Nuiphaovica encourages households to use this service to securely
manage their compensation payments.       To date, approximately 50% of total compensation
payments made have been deposited in savings accounts with the Bank.

8.12 Cost of Economic and Livelihood Restoration Programs

Costs for economic and livelihood restoration programs are incorporated into the resettlement
program cost estimate (see CHAPTER 13).




Nuiphaovica, Vietnam                                                                 Page 167

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



            CHAPTER 9.            CONSULTATION AND PARTICIPATION

9.1 Objectives

Nuiphaovica has established a consultation and disclosure program for the Project which includes
a suite of stakeholder consultation, disclosure activities, engagement exercises and media
interactions. The consultation and disclosure program strategy requires that the Project:

        · Provide real opportunities for stakeholders to actively contribute to Project
            development;

        · Help to minimise any potentially negative impacts and strengthen the Project's
            benefits; and

        · Ensure that stakeholder involvement is monitored and evaluated to enable continuous
            improvement in the program.

Consultation and participation with affected people and key stakeholders on compensation and
resettlement will assist to:

     (i)    Reduce potential of conflicts;

    (ii)    Minimise the risk of Project delays; and

    (iii)   Enable the Project to design the resettlement and restoration programs as a
            comprehensive development program that fits the needs and priorities of the affected
            people, thereby maximising the economic and social benefits of the Project
            investment.

The objectives of the program related to compensation and resettlement include to:

        · Share information about the Project with affected people;

        · Obtain information about the needs and priorities of affected people as well as
            obtaining their reactions and feedback to the proposed resettlement policies and other
            relevant activities;

        · Obtain the cooperation and participation of affected people and host communes
            through all phases of resettlement planning and implementation; and

        · Ensure transparency in all activities related to land acquisition, resettlement and
            economic and livelihoods restoration.

Nuiphaovica has developed a Public Consultation and Disclosure Plan to implement this strategy
and achieve its stated objectives.




Nuiphaovica, Vietnam                                                                    Page 168

Nui Phao Mining Project                Resettlement Action Plan                       Final 20-Jul-06



9.2 Public Consultation and Disclosure Plan

The Company has produced and is in the process of implementing a comprehensive Public
Consultation and Disclosure Plan (Nuiphaovica, 2006), the goal of which is to improve Company
decision-making through dialogue with individuals, groups and organisations having a legitimate
interest in the Project. Nuiphaovica aims for effective public consultation and disclosure with
Project Affected Persons and other stakeholders, to establish sound relationships with its host
communities and to build broad community support for the Project through ongoing dialogue and
meaningful participation.

The Plan describes the Company-wide activities related to interaction with its host communities
and in particular, people affected by the land acquisition and the resettlement program. It also
provides methods and tools for effective two-way communications, describes and sets out the
Nuiphaovica complaints mechanism and contains details on past and future community liaison
and associated activities for the Project.

A summary of key consultation and participation activites related to compensation and
resettlement are summarised in the following sections, whilst some details of meetings and
associated activities are provided throughout other relevant chapters of the RAP.

9.3 Resettlement Action Plan Development Consultation

9.3.1 Phase I: During Surveys for the Interim Resettlement Action Plan

From May to October 2004, many meetings and discussions were held between Nuiphaovica and
key stakeholders (local authorities, affected people, local unions etc) on a draft resettlement policy
framework, seeking land for relocation, solutions for employment generation, special
requirements for vulnerable groups and other relevant topics. Information dissemination and
consultation was conducted using a number of different channels and instruments, such as
surveys, questionnaires and public and focus group meetings.

The socio-economic baseline survey (see CHAPTER 3) and the census and inventory of land
acquisition impacts (see CHAPTER 4) conducted in mid to late 2004 initiated the engagement
process with local people and those potentially affected by land acquisition. At the same time a
series of meetings were initiated with a range of different stakeholders including the provincial,
district and commune leaders and their key departments; local unions e.g., Women's Unions,
Farmer's Association, Farther Front, Veteran's Association, religious boards etc; and affected
villages and special groups, such as the catholic community in Ha Thuong.

A summary of key meeting activities for this phase of compensation and resettlement consultation
is provided in table 9.1.




Nuiphaovica, Vietnam                                                                       Page 169

Nui Phao Mining Project                         Resettlement Action Plan                                   Final 20-Jul-06



                                                         Table 9.1
      Meetings with Key Stakeholders for the Development Phase of the Compensation
                                            and Resettlement Program


 No.                    Meeting / Activity                                           Topics Discussed
  1    June 28, 2004: First meeting of Compensation            Draft regulation for COB members and answers for PAP
       Oversight Board (COB).                                  questions related to land acquisition and its implementation
                                                               schedule.
  2    July 08, 2004: Meeting with Chairman of Dai Tu          Proposed resettlement sites, progress report/status and
       Compensation Committee and four chairmen of             proposed economic rehabilitation programs.
       communes in the project land lease area.
  3    July 21, 2004: Meeting with party and district leaders  Resettlement sites and economic rehabilitation programs.
       of Dai Tu.
  4    July 25, 2004: Meeting with all leaders and other key   Mobilising for socio-economic survey and census and assets
       stakeholders of Tan Linh communes (Party, Women's       survey.
       Union, Veteran, Youth, Farmer Association etc.)
  5    July 28, 2004: Meeting with 85 PAP of villages 12, 13   Mobilizing socio-economic survey and census and assets
       and 14 of Tan Linh Commune.                             survey.
  6    July 30, 04: Meeting with 18 participants of Hung Son   Introduce PAP to the project, purpose of survey and its
       (leaders of Commune, Party, Women's union, veteran,     schedule; key principle of compensation and resettlement;
       Youth, Farmer Association; and leaders of villages      proposed relocation sites. Answer questions.
       etc.)
  7    July 31, 2004 (Morning): Meeting with 37 participants   Mobilising socio-economic survey and census and assets
       (leaders of Ha Thuong; leaders of villages no.          survey.
       1,2,3,4,5,6,7; Women's Union, Veteran Association,
       Youth, Farmer Association; Elderly Association and
       Father Front).
  8    July 31, 2004 (Afternoon): Meeting with 195 PAP of      Mobilising socio-economic survey and census and assets
       village no.1- Hung Son. Meeting with thon 1 Ha          survey.
       Thuong on August 02, 04 (Morning). 135 PAP.
  9    August 02, 2004: Meeting 310 PAP of villages no.2       Introduce PAP to the project, purpose of survey and its
       and no. 3 (catholic community) of Ha Thuong             schedule; key principle of compensation and resettlement;
       commune and representatives of provincial religious     proposed relocation sites. Answer questions from PAP.
       Board and Thai Nguyen newspaper.
 10    August 03, 2004: Meeting with 192 PAP of village no.    As above
       4 of Ha Thuong commune.
 11    August 04, 2004: Meeting with 161 PAP of villages       As above
       no.5 and no. 6 of Ha Thuong commune.
 12    August 05, 2004: Meeting with Chairman of               As above
       DDCSRC and leaders of Cat Ne commune, KV3 of
       army.
 13    August 13, 2004: Meeting with 121 PAP of village        Relocation sites for army facilities.
       no.2 of Hung Son commune.
 14    August 17, 2004 and August 23, 04: Meeting with         Introduce PAPs to the project, purpose of survey and its
       Director and Heads of Departments of Dai Tu Forestry    schedule; key principles of compensation and resettlement;
       Enterprise.                                             proposed relocation sites. Answer questions from PAP.
 15    August 24 and 27, 2004: Bring 61 representatives of     Possibility to arrange lands (residential and agricultural) for
       PAP to visit the proposed relocation sites. Map of the  PAP in Khe Vay.
       project and proposed relocation sites were sent to all
       affected villages.
 16    August 28, 2004: Meeting with 11 representatives of     Presenting to leaders of Party about proposed relocation sites
       army and deputy chair of Dai Tu district.               and economic restoration programs. Special assistance to
                                                               vulnerable groups.
 17    September 03, 2004: Meeting with leaders of Dai Tu,     Discuss the proposed relocation sites and physical
       representatives from army different departments of      infrastructures, social services required in each sites.
       Thai Nguyen Province.
 18    September 04, 2004: Workshop in Do Son with more        Selecting relocation site for army facilities and cost estimate
       than 50 participants from all affected communes,        for movement to Cat Ne site.
       provincial and district departments, local unions.
 19    September 14, 2004 : Meeting with PAP in village no.    Discuss the draft resettlement policy, relocation sites, and
       7 of Ha Thuong; 69 participants with 41 women.          economic restoration programs.

 20    October 10, 2004: Meeting with standing party           Present resettlement policy and proposed relocation sites.
       committee of Dai Tu.



Nuiphaovica, Vietnam                                                                                             Page 170

Nui Phao Mining Project                       Resettlement Action Plan                               Final 20-Jul-06



  No.                   Meeting / Activity                                        Topics Discussed
  21    October 12, 2004: Meeting with Leaders of Thai      Brief on the activities completed by Nuiphaovica
        Nguyen PPC and COB members.                         Compensation & Resesttlement Unit.
  22    Meeting with all owners of public works such as     Cost estimate for realignments.
        power lines, TELECOM lines.



A Consultation Questionnaire (Annex A) regarding household preferences for proposed
relocation sites, modes of compensation "land for land" or "cash for land", and proposals for
economic restoration activities was also issued during this phase to affected households. The first
survey was conducted in August/September 2004 and involved sending the questionnaire to 876
households. All questionnaires were collected from households although some surveys were
completed partially with answers provided to only some questions. Results from this
questionnaire have been described throughout the various sections of the RAP.

Overview of consultation results

This phase of local consultation allowed issues to be identified and discussed with a wide range of
stakeholders, predominantly focused on compensation and resettlement issues but also on broader
Project development topics. As a result of this first series of consultation Nuiphaovica together
with relevant authorities developed the Project resettlement policies and the interim RAP.

Local people generally reported that they were in support of the Project because they believe that
it will have a significant contribution to economic development for Thai Nguyen province and
Dai Tu district. Some concerns were also expressed and these included the following areas:

        · Replacement costs: the need for compensation at replacement costs to allow affected
            households to purchase other houses, land and associated assets.

        · Relocation/resettlement assistance: Nuiphaovica was requested to provide assistance
            during the transition period and especially for restoration of livelihoods when
            households convert from farm to non-farm activities.

        · Quality of infrastructure: quality of new infrastructure and expectations that good
            physical infrastructure and social services will be provided at relocation sites.

        · Employment opportunities: maximisation of their opportunity to work for the Project
            and to get other benefits from the Project.

        · Consultation and disclosure: requested to be provided with timely information about
            compensation unit costs; resettlement policies; relocation site planning; detailed
            implementation schedule; mechanisms for delivering compensation; and managing
            complaints.




Nuiphaovica, Vietnam                                                                                      Page 171

Nui Phao Mining Project                        Resettlement Action Plan                                  Final 20-Jul-06




 Consultation workshop with stakeholders in Do Son
 Hai Phong on 04/09/04




9.3.2 Phase II: For final RAP (November 2004 to April, 2005)

During the second phase of consultation, ongoing meetings were held with further affected
households and other key stakeholders and consultation questionnaires were again disseminated to
households to get their feedback on a range of proposals on compensation and resettlement. A
total of 854 households were surveyed using the questionnaire during the second round of
consultation and 465 households submitted their completed surveys to Nuiphaovica. Nuiphaovica
continues to try to obtain feedback from all affected families and has discussed with all
households their opinions and choices on a range of different proposals. However, the Company
recognises that some affected people may not formally provide their preferences until later in the
resettlement program.

In addition to meetings and surveys, information was also disclosed to stakeholders related to the
interim RAP including unit costs for land and other assets and Nuiphaovica's proposed
resettlement policies. A summary of activities for this phase of consultation is provided in
table 9.2.

                                                        Table 9.2
        Second Round of Compensation and Resettlement Consultation and Disclosure

  No.                        Meeting/Activity                                         Topics Discussed
   1     January 18, 2005: Meeting with provincial Departments of    Finalising the project resettlement policy and
         Finance, Construction, Environmental and Natural            countersigning by government Departments and
         Resources and Dai Tu district.                              Nuiphaovica.
   2     March 02 to 07, 2005: Meeting with Leaders of three         Disseminate consultation questionnaire to PAP.
         affected communes.
   3     March 08, 2005: Meeting with Dai Tu district, Cat Ne        Study about land use status at Long Lanh site.
         commune, Cat Ne forestry stock company.
   4     March 09 to 20, 2005: Meeting with PAP in three affected    Inform the PAP about the project resettlement policies
         communes.                                                   (approved by the People's Committee of Thai
                                                                     Nguyen). Discussed with the PAP contents and
                                                                     purpose of the second round of consultation.
   5     Information Disclosure: Disseminate resettlement policies
         and compensation unit costs for land and other assets that
         were issued by People's Committee of Thai Nguyen to all
         affected villages.



Nuiphaovica, Vietnam                                                                                           Page 172

Nui Phao Mining Project                          Resettlement Action Plan           Final 20-Jul-06




       Meeting with affected families and local authorities in Ha Thuong commune



Consultation with vulnerable groups (with local authorities and unions)

Several rounds of consultation were conducted with local people, local authorities and local
unions to discuss proposals and programs for potentially vulnerable groups. The primary aim of
these meetings was to discuss particular issues and concerns of these groups in affected
communities in order to develop mitigation measures to improve their income generation and
livelihoods after relocation. A summary of meetings with various representatives and groups is
provided in table 5.3.

Consultation for seeking replacement land and approving relocation sites

Nuiphaovica together with affected commune and Dai Tu district authorities started its efforts to
seek land for replacement residential and agricultural lands from June 2004. Many meetings have
been held with authorities and relevant communes, local unions and affected households to obtain
their suggestions and feedback on the proposed sites. The process for seeking replacement land
and associated community participation is summarised in table 7.2.

Replacement of public works, affected assets of institutions

Nuiphaovica has contacted all the owners of affected public works and social services and
requested them to coordinate for cost estimates on compensation for these affected assets.

Physical infrastructure and social services of affected communes such as inter-roads,
kindergartens, infant schools, power grids, community halls, cemeteries etc. will be mostly
compensated through in kind compensation and are to be re-constructed at the relocation sites and
in communities receiving resettlers. Some affected public works will be compensation in cash to



Nuiphaovica, Vietnam                                                                     Page 173

Nui Phao Mining Project                    Resettlement Action Plan                             Final 20-Jul-06



their owners. These activities have been completed as part of the overall phases of consultation
described above.

9.4 Ongoing Compensation and Resettlement Activities

Public consultation has been at the heart of stakeholder involvement in development of the
resettlement program for the Project. Extensive consultation and disclosure activities are ongoing
and Nuiphaovica has daily interaction with Project Affected Persons, local authorities and
associated public and private institutions. Now that the approval of the Mining License has
occurred, specific land acquisition details have been formally defined and as such the detailed
measurement survey for all affected assets has begun.

A summary of public participation activities undertaken since mid 2005 until early 2006 is
provided in tables 9.3 and 9.4.

                                                    Table 9.3
       Summary of Compensation and Resettlement Public meetings to the End of 2005

   Date                            Meeting                                      Topics Discussed
            May
 21st       Meeting with 13 participants from Office of         Discussed RAP implementation.
            Provincial People's Committee (PPC) & Council,
            provincial departments, District People's
            Committee (DPC) and leader of Nui Hong coal
            mine.
            June
 29th       Meeting with 14 participants from District and      Discussed draft planning for Nam Song Cong
            Construction & Consultant Joint-Stock Co.           (NSC) site.
            July
 28th       Meeting with 27 participants of District mass       Finalised detailed panning for NSC and
            organizations.                                      discussed approvals for this planning.
            August
 5th        Meeting with 10 participants from Provincial and    Presentation by Nuiphaovica on the RAP and
            District People's Committees and District Party     discussion by participants.
            Committee.
            September
 01st       Meeting with 13 participants from Provincial        Getting feedback for RAP.
            Departments and DPC.
 13th       Project field visit with DONRE, DPC, Ha Thuong,     Hand over landmark of Nui Phao Project areas
            Hung Son, Tan Linh, and Phuc Linh People's          and signed minutes of the site demarcation
            Committees and Compensation Oversight Board         documents.
            (13 persons).
            October
 04th       Meeting with 18 participants from district Party    Inform participants about the approval by the
            Committee, People's Council, DPC,                   Province of the RAP and disseminate
            Compensation Oversight Board (COB).                 resettlement and compensation booklet to all.
 11th       Meeting with 50 participants from DPC and Tan       -ditto-
            Linh Commune.
 11th       Meeting with 80 PAPs of Tan Linh Hamlet 13.         -ditto-
 12th       Meeting with leaders of DPC, Hung Son People's
            Committee (56 participants).                        -ditto-

 12th       Meeting with 245 PAPs of Hung Son Hamlet 1.         -ditto-
 13th       Meeting with leaders of Thai Nguyen Export          Discuss about vocational training for PAPs.
            Garment Company.


Nuiphaovica, Vietnam                                                                                 Page 174

Nui Phao Mining Project                    Resettlement Action Plan                            Final 20-Jul-06



   Date                            Meeting                                     Topics Discussed
19th        Meeting with 20 leaders of Ha Thuong People's       Inform participants about the approval by the
            Committee and affected hamlets.                     Province of the RAP and disseminate
                                                                resettlement and compensation booklet to all.
20th        Nuiphaovica took 30 representatives of PAPs to      Introduce mushroom growing models to PAPs.
            visit mushroom planting models in Ninh Binh
            Province, Soc Son District of Ha Noi and
            Biological Technology Center Head Quarters
            under MARD.
28th        Meeting with 172 Party members of Ha Thuong         Inform participants about the approval by the
            Commune and leaders of the DPC.                     Province of the RAP and disseminate
                                                                resettlement and compensation booklet to all.

            November
01st        Meeting with leaders of District mass
            organisations (24 participants)                     -ditto-

02nd        District staff, affected commune leaders and        Training on the Detailed Measurement Survey
            commune officials                                   (DMS).
03rd        Meeting with the COB and District officials (30     Discussed the DMS schedule as well as
            persons)                                            economic restoration programs.
06th        Meeting with 232 members of Hung Son Party          Discussed the DMS schedule as well as
            Committee.                                          economic restoration programs.
07th        Meeting with 81 PAPs Hung Son Hamlet 16.            Disseminate compensation and resettlement
                                                                policies of Nuiphaovica and discussed the DMS
                                                                schedule as well as economic restoration
                                                                programs.
08th        Meeting with 114 PAPs Hung Son Hamlet 4.            -ditto-
09th        Meeting with 152 PAPs Hung Son Hamlet 15            -ditto-
21st        Meeting with 98 participants from mass              -ditto-
            organisations and affected hamlets in Ha Thuong
            Commune.

22nd        Meeting with 74 PAPs Ha Thuong Hamlet 5.            -ditto-
22nd        Meeting with 61 PAPs Ha Thuong Hamlet 3.            -ditto-
23rd        Meeting with 148 PAPs Ha Thuong Hamlet 1.           -ditto-
23rd        Meeting with 148 PAPs Ha Thuong Hamlet 6.           -ditto-
            December
08th        Meeting with 186 PAPs Ha Thuong Hamlet 2.           -ditto-
19th        Meeting with 18 participants from Hung Son          Discussed planning for Hung Son Hamlet 2 area
            People's Committee.                                 (Market Centre).
22nd        Meeting with 18 participants from Hung Son          Second discussion on abovementioned topic.
            People's Committee.




Nuiphaovica, Vietnam                                                                                Page 175

Nui Phao Mining Project                     Resettlement Action Plan                              Final 20-Jul-06



                                                     Table 9.4
         Summary of Compensation and Resettlement Public Meetings to Date 2006

   Date                           Meeting                                         Topics Discussed
            January: non activities
            February
 14th       Training course for network members of affected       Disseminate Compensation and resettlement
            hamlets (30 participants).                            policies of Nuiphaovica to participants.
 16th       Meeting with Leaders and members of Party             -ditto-
            Committee in Ha Thuong Commune (76
            participants).
 17th       Meeting with Leaders and members of Party             -ditto-
            Committee in Ha Thuong commune (50
            participants).
 17th       Meeting with leader of Garment Company and            Course-ending ceremony at No. 10 Garment
            trainees (35 participants).                           Company in Ha Noi.
 18h        Workshop in Dai Tu with 140 participants from         Summarised mushroom pilot program for the
            District Party Committee, DPC, district mass          first 21 affected households participating in
            organisations, affected hamlets, district television, economic restoration programs.
            the provincial center for botanic biological
            technology.
 21st       Meeting with 102 PAPs of Ha Thuong Hamlet 2.          Announced compensation and resettlement
                                                                  policies and provided document (Decision 2044,
                                                                  197, 1932 and consultation questionnaire....).
 22nd       Meeting with 168 PAPs of Hung Son Hamlet 2.           -ditto-
            March
 2nd        Meeting with 17 participants from Provincial and      Discussed compensation implementation
            District People's Committees.                         progress.
 8th        Meeting with 14 participants from District            Discussed compensation issues.
            Compensation Committee.
 16th       Meeting with 220 PAPs in Cat Ne Comune.               Announced compensation and resettlement
                                                                  policies and provided document (Decision 2044,
                                                                  197, 1932 and consultation questionnaire....).
 20th       117 persons from local mass organisations, local      A rapid assessment on community training needs.
            authorities and affected households
 27th       Meeting with 226 PAPs of Ha Thuong Hamlet 2.          -ditto-
            April
 13rd       A half day training course for 22 members of          Discussed Nuiphaovica's policies for economic
            NUIPHAOVICA's information network                     restoration programs.
 19th       Meeting with 279 PAPs of Hung Son Hamlet 2.           -ditto-

 21st       Meeting with 83 PAPs of Hung Son Hamlet 16.           Discussed about giving PAPs advance payment
                                                                  for compensation.
 27th       Meeting with 12 participants from District            Discussed about hastening the Detailed
            Compensation Committee and COB.                       Measurement Survey and compensation process.



9.4.1 Project Brochures and Information Booklets

A Project Information Booklet was prepared by Nuiphaovica in early 2006 to outline the current
progress of Project activities and to notify a wide range of stakeholders about key events such as
the opening of the Project Information Centre and to provide an overview of the Project to
stakeholders that may have otherwise had limited information about the Company or its activities.
Importantly, the Booklet describes the availability of a complaints mechanism for local people
and where to go for further information. The booklet is available in Vietnamese and English.



Nuiphaovica, Vietnam                                                                                   Page 176

Nui Phao Mining Project                 Resettlement Action Plan                      Final 20-Jul-06



Preparation of a Resettlement Information Booklet was completed in late 2005 and provided to all
Project affected households. The Resettlement Information Booklet contained the following key
information:

        · General information about the Project and Nuiphaovica;

        · The main policies for compensation and resettlement;

        · Indicative schedule on compensation payments and land acquisition activities;

        · Schedule for construction of relocation sites; and

        · Details on the complaints mechanism for affected people.

Nuiphaovica has also developed a Compensation Payment Procedure for households affected by
the resettlement program to simply and concisely explain the compensation process to local
people.      A copy of the Compensation Payment Procedure leaflet is provided in
Annex C. The Public Consultation and Disclosure Plan also contains a copy of other relevant
disclosure materials and a development of information is ongoing.

9.4.2 Other Consultation and Disclosure Mechanisms

A number of other mechanisms and programs have been set up as part of the Nuiphaovica
consultation and disclosure program that directly support the compensation and resettlement
activities.

        · A Project Information Centre was opened in January 2006 in Dai Tu town, next to
            the current Nuiphaovica offices. The Project Information Centre is open daily during
            weekdays. The Centre is permanently staffed by a member of the community liaison
            team and is a central repository for all Nuiphaovica communication materials,
            consultation and disclosure materials and associated records. Relevant compensation
            and resettlement information is posted in the centre and affected people can directly
            raise questions, concerns and complaints. Copies of the Resettlement Action Plan and
            associated documentation are available at the Project Information Centre.

        · In addition to the Project Information Centre a system of "Local Information
            Corners" has been set up in local villages. By mid 2006 approximately 30 corners
            had been set up in village halls, schools, kindergartens and local government buildings
            throughout the Project area. Brochures, copies of question forms, complaint forms and
            other materials are posted at the Information Corners and managed by members of the
            community liaison team and designated local people. Materials are regularly updated
            to ensure that information is current and relevant to current Project activities. The
            main aim of the Information Corners is to bring as much information as possible
            directly to local residents to make it easily accessible and readily available.




Nuiphaovica, Vietnam                                                                       Page 177

Nui Phao Mining Project                       Resettlement Action Plan                           Final 20-Jul-06




                       Inside the Nuiphaovica Project Information Centre, Dai Tu town




         Nuiphaovica community liaison staff member and visitor at a Local Information Corner



       · The Nuiphaovica community liaison team established a Local Information Network
            group in February 2006. This group is comprised of local residents of Nuiphaovica's
            host communities and is predominantly comprised of people affected by land
            acquisition and resettlement.              The group is intended to assist in building sound
            relationships with local people, and ensuring that methods and channels to provide and


Nuiphaovica, Vietnam                                                                                  Page 178

Nui Phao Mining Project               Resettlement Action Plan                     Final 20-Jul-06



            receive community input and comments are extensive and readily accessible at the
            local level. The Local Information Network group meets regularly with Nuiphaovica
            staff and is tasked with a range of activities to promote consultation and disclosure
            between the Company and local residents.

       · The community liaison team set up a Question and Answer system (`Frequently
            Asked Questions') including a Question Form that has been widely publicised and
            distributed to local residents in all host communes. Nuiphaovica uses the Local
            Information Network group to receive completed Question Forms and also receives the
            forms directly when working in the communities and at the Project Information
            Centre. Stakeholder questions are also collated from meeting minutes, other
            correspondence received by Nuiphaovica and direct feedback from the community
            liaison team. Responses are provided in a regular publication (at least monthly) and
            posted in relevant locations including the Project Information Centre and Local
            Information Corners. To date the majority of questions received relate to compensation
            and resettlement issues.

For full details on these and other mechanisms that have been and are being implemented by the
Company, see the Public Consultation and Disclosure Plan (Nuiphaovica, 2006).




Nuiphaovica, Vietnam                                                                    Page 179

Nui Phao Mining Project                Resettlement Action Plan                        Final 20-Jul-06



                       CHAPTER 10.           COMPLAINTS SETTLING

Nuiphaovica is committed to addressing stakeholder concerns, complaints and grievances
regarding resettlement. For compensation and resettlement complaints Nuiphaovica will work
closely with commune, district and provincial authorities. Relevant authorities will be made aware
of all resettlement and compensation complaints and as such these parties will then work together to
resolve the issue.     A specific three step process is in place to deal with compensation and
resettlement complaints.

First Step

If any person is aggrieved by any aspect of the resettlement and compensation program, he/she can
lodge an oral or written grievance with Ward/Commune authorities. The People's Committee of the
Ward/Commune is required to work with Nuiphaovica to resolve the issue within fifteen days.

Second Step

If any aggrieved person is not satisfied with the decision in Step 1, he/she can bring the grievance to
the District People's Committee or District Compensation, Assistance and Resettlement Committee
(DDCARC) within fifteen days from the date of the receipt of the decision in Step 1. The District
People's Committee or District Compensation, Assistance and Resettlement Committee will reach a
decision on the complaint within fifteen days.

Third Step

If PAPs are still not satisfied with the decision at District level, he/she can appeal to the Provincial
People's Committee (PPC) or Dai Tu District Court within fifteen days of receiving the decision of
the DDCARC. The PPC or Dai Tu District Court will reach a decision on the complaint within
fifteen days.

All PAPs will be exempted from all administrative fees in connection with the above processes, and
are entitled to recover any legal fees.

Nuiphaovica will assign its staff to follow up with all steps of grievance settling and always as a
member of complaint settling teams at the Dai Tu District and Commune levels. For further details
on the resettlement and compensation grievance mechanism, see the Resettlement Action Plan
(Nuiphaovica, 2006).

The receipt of complaints will include of the following information:

      (i)    Name of complainant;

     (ii)    Address;

    (iii)    Complaint issues;

    (iv)     Date of receipt;

Nuiphaovica, Vietnam                                                                        Page 180

Nui Phao Mining Project                Resettlement Action Plan                    Final 20-Jul-06



     (v)    Appointment date for a solution; and

    (vi)    Signature of the complaint receiver.

Solution for the complaint should at least include of the following information:

     (i)    Name of complainant;

    (ii)    Address;

    (iii)   Complaint issues;

    (iv)    Solutions and legal documents to be applied for the proposed solutions;

     (v)    Date of issuing the solutions to the complainant; and

    (vi)    Signatures of responsible persons.

An example Complaint Action Form is provided in Annex D. This form will be used Company
wide to capture complaints for the Project including resettlement and compensation complaints.

10.1 Disclosure of Complaints Procedures

Complaint procedures have been disclosed to local stakeholders in a relevant format.
Nuiphaovica has prepared a range of information materials to explain its complaints procedures
and    an    example    of   a   simplified    complaints      procedure poster  is   provided    in
Annex E. Complaint Action Forms are also made available in accessible locations within host
communities and at public locations.

Nuiphaovica has Complaint Action Forms and other information materials available at the
Information Corners it has established in local village halls (approx. 30 village halls) and various
other locations including the Project Information Centre and in several government buildings.

Nuiphaovica also utilises their "Local Information Network" group to receive completed
Complaint Action Forms and pass these to the Nuipahovica community liaison team. The
Nuiphaovica Local Information Network members are trained in completing Complaint Action
Forms.

For further information on the Company-wide complaints system that this resettlement process
forms part of, see the Public Consultation and Disclosure Plan (Nuiphaovica, 2006).




Nuiphaovica, Vietnam                                                                     Page 181

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



CHAPTER 11.            MONITORING AND EVALUATION

11.1 Objectives

Monitoring and evaluation are key components of the Resettlement Action Plan and have the
following general objectives:

         · Monitoring: Monitoring of specific situations or difficulties arising during
            implementation, and of the compliance of implementation with objectives and
            metholds set out in the RAP; and

         · Evaluation: Evaluating emergent, mid- and long-term impacts of the Project on the
            welfare of impacted households, communities, environment and local government and
            capacities.

Monitoring aims at correcting implementation methods during the course of resettlement program
implementation as required, while evaluation is intended at providing lessons learnt for amending
strategies and implementation in the longer term.

Monitoring and evaluation will also provide a picture of socio-economic status of Project
Affected Persons after relocation and if required, propose necessary solutions for solving
outstanding issues. Monitoring will be essentially an internal function whereas evaluation will
generally by external.

11.2 Internal Monitoring

11.2.1 Monitoring Methodology and Process

Day to day implementation of the RAP will be monitored by Nuiphaovica and the DDCARC.
Monitoring will be undertaken under the direction and responsibility of the External Relations
Manager. The monitoring process will be designed to:

     (i)    Verify the provision of compensation and other entitlements being carried out in
            accordance with the provisions of the RAP; to this end, a database will be set up and
            shared by the DDCARC, and Nuiphaovica;

     (ii)   Verify that funds for implementing the RAP have been provided in a timely manner,
            that the amounts are sufficient for their purpose, and that such funds have been used in
            accordance with the provisions of the RAP;

    (iii)   Track progress against the schedule for implementing the RAP to ensure it is being
            met;

    (iv)    Track any complaints from the affected people and that these have been addressed on
            time and according to the proposed mechanism for complaints;




Nuiphaovica, Vietnam                                                                     Page 182

Nui Phao Mining Project                Resettlement Action Plan                              Final 20-Jul-06



     (v)    Determine if the objectives of the resettlement project are being met in terms of
            livelihood and income being restored and improved.

    (vi)    Determine whether the procedures for delivery of compensation and other
            rehabilitation entitlements to affected people and organisations have been carried out
            in accordance with the provisions of the RAP;

   (vii)    Gather quantitative and qualitative information of the social and economic impact of
            the Project on the livelihoods of affected households and the wider host communities
            including Dai Tu district.

  (viii)    Suggest mitigation measures and modifications to achieve the principles and
            objectives of the RAP including the Project resettlement policies.

11.2.2 Indicators and Information Management

Monitoring will be based on indicators of change relevant to the compensation and resettlement
process and will be based as much as is possible on participation with affected households and
communities. Table 11.1 provides a summary of potential monitoring areas on which indicators
will be based.

                                               Table 11.2
                               Monitoring Aspects and Indicator Areas

Overall social and economic status  Social and economic status of households, villages and communes
                                    Reestablishment of agriculture
                                    Actions targeting vulnerable groups
                                    Access to employment and business opportunities
Compensation and negotiations       Compensation payments made, timing of such payments
                                    Detailed Measurement Surveys completed
                                    Negotiation process and conclusion of sale/purchase agreements
                                    Contracts and associated arrangements
Resettlement                        Resettlement options finalized
                                    Self-relocation statistics
                                    Accommodations at relocation sites (house types, costs, facilities etc)
                                    Relocation site development progress (status of construction works, testing
                                    and commissioning of housing, schedules etc)
Economic restoration activities and Economic restoration programs implemented
measures                            Resettlers participating in assisted programs
                                    Business re-establishment and assistance
                                    Skills enhancement programs and activities
                                    Small loans components
Consultation & disclosure           Perception of resettlement program
                                    Satisfaction with compensation and other assistance
                                    Information provided to affected households, villages and other
                                    stakeholders

Complaints/grievances               Number, type and cause of complaints/grievances
                                    Resolution rates and effectiveness of complaints settling
Implementation organisation         Staff and other changes compared to previous periods




Nuiphaovica, Vietnam                                                                               Page 183

Nui Phao Mining Project                Resettlement Action Plan                   Final 20-Jul-06



Monitoring is by its very nature a long-term and potentially open ended activity. The Company,
relevant authorities and the community will work to define end-points and year on year goals to
enable targeted and effective monitoring. This approach is intended to allow monitoring to be
reduced in areas where activities have been completed and goals achieved while maintaining
focus on problematic issues.

Nuiphaovica has a well established data base and relevant ancillary hard copy archives that
contain all data on entitlements, compensation payments, socio-economic status of affected
households and so on. The data base is always being expanded to cover additional data and
statistics as RAP implementation progresses.

11.2.3 Monitoring Reports

The Thai Nguyen People's Committee and the Compensation Oversight Board will be provided
with a monitoring report prepared by Nuiphaovica every three months. These reports will evaluate
the implementation status and include suggestions to improve implementation and intended
outcomes.     The monitoring reports will be available in Vietnamese and English and made
available in Vietnamese at the Project Information Centre in Dai Tu town and other locations as
relevant.

11.3 Independent Evaluation

11.3.1 Evaluation Methodology and Process

Evaluation will be conducted to:

     (i)    Assess the compliance of the implementation of the RAP with objectives and methods
            set out in this document;

     (ii)   Assess the compliance of implementation of the RAP with laws, regulations and
            safeguard policies;

    (iii)   Evaluate the implementation of the RAP to achieve its objectives in particular "to
            improve or at least maintain the income and living conditions of the affected
            households after the resettlement process"; and

    (iv)    Identify actions to be part of the ongoing monitoring process to improve the positive
            impacts of the program and to mitigate any possible negative impacts.

Specifically, the independent evaluation team will be responsible to include, but not be limited by
the the following tasks:

     (i)    Review the Resettlement Action Plan and associated studies and efforts;

     (ii)   Review unit costs of compensation applied in the RAP and check at the site to ensure
            the compensation costs are at replacement value;



Nuiphaovica, Vietnam                                                                   Page 184

Nui Phao Mining Project               Resettlement Action Plan                    Final 20-Jul-06



    (iii)   Review consultation activities, information campaigns and disclosures;

    (iv)    Evaluate the progress of the Detailed Measurement Survey (DMS) and entitlements
            calculated for the PAPs;

     (v)    Evaluate socio-economic impacts of the Project on the PAP;

    (vi)    Assess compensation and resettlement procedures including:

            · Compensation payments and delivery in a timely manner;

            · Relocation site development and the allocation of plots to the affected households;
                 and

            · Livelihood status of self-relocating affected households.

   (vii)    Assess the progress of relevant programs such as those for economic restoration,
            gender programs, and programs for vulnerable groups etc.

  (viii)    Offer suggestions on how to improve RAP implementation; and

    (ix)    Evaluate complaints and grievances.

Terms of Reference (TOR) for independent evaluation have been prepared by Nuiphaovica and
include:

     (i)    The Project details and background;

    (ii)    Purpose and objectives of evaluation;

    (iii)   Scope of services required;

    (iv)    Description of evaluation tasks;

     (v)    Hiring and qualifications of the consultant/s;

    (vi)    Mode of operation;

   (vii)    Reporting and deliverables;

  (viii)    Inputs available;

    (ix)    Timing and schedules;

     (x)    Location of work; and

    (xi)    Type of contract proposed.

The schedule for independent evaluation will include a mission/visit at least twice a year during
implementation and then once a year after operations begin for at least 2 years.


Nuiphaovica, Vietnam                                                                   Page 185

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



From time to time the Company may initiate its own internal evaluations to support or supplement
the external review process. This program would be initiated on an as needed basis. Reference
documentation for the evaluation will include the following:

       · This Resettlement Action Plan and associated source documents;

       · Vietnamese laws and regulations as described herein; and

       · The applicable World Bank Group safeguard policies, i.e. OP 4.12 "Involuntary
            Resettlement".

Other reference documents may include relevant materials and information developed and
disseminated for local residents and internal monitoring reports when these are available.

11.3.2 Auditors

The auditor/s will be an independent consultant/s or NGO with experience in resettlement
program design and practical implementation, and with no previous involvement with the Project.
An independent Panel of Experts (POE) who has been engaged by Nuiphaovica will initially
provide this evaluation function for the Project. The POE is scheduled to undertake their first
independent review in mid 2006. Nuiphaovica will offer unrestricted access to its internal
documentation to the evaluation team.

11.3.3 Evaluation Reports

Evaluation reports will be completed by the independent evaluation team after each review
mission. Evaluation reports will be publicly released and will also be available locally at the
Project Information Centre in Dai Tu town and other relevant locations.

In addition to the evaluation reports that will be prepared after each review, the evaluation team
will be expected to produce a completion report which is to be prepared six months after the
completion of the entire resettlement program. This document shall provide detailed evaluation of
the RAP and its implementation. It shall also report the outcome of interviews with the affected
households on their situation and their opinions after they have been resettled and compensated.




Nuiphaovica, Vietnam                                                                     Page 186

Nui Phao Mining Project                      Resettlement Action Plan                         Final 20-Jul-06



               CHAPTER 12.                 IMPLEMENTATION AND SCHEDULE

Resettlement implementation continues to parallel negotiations with affected people and local
authorities. The main activities and associated implementation schedule for the preparation and
implementation of the Resettlement Action Plan is provided in table 12.1.

                                                    Table 12.1
            Schedule for Resettlement Action Plan Preparation and Implementation

No.                      Activity                             Schedule                  Responsibility
PREPARATION PHASE                                   May 01, 04 to April 30, 05
 1   Announcement of the cut- off date to all                May 12, 04        COB, Dai Tu district and
     communes and affected people                                              affected communes
 2   Prepare questionnaire and carry out for the              June 1 to        Nuiphaovica, consultants and
     socioeconomic survey, census and inventory         September 30, 2004     commune officials
     of affected land and assets
 3   Site survey, site selection, planning and               August 1 to       Nuiphaovica, District and
     preliminary survey for affected land and           September 15, 2004     commune officials
     other assets in proposed relocation sites
 4   Carry out for the first round of formal                 August 1 to       Nuiphaovica, consultants and
     consultation program for resettlement and          September 30, 2004.    commune officials
     compensation proposals
 5   Prepare a Draft Interim Resettlement Action             August 1 to       Nuiphaovica
     Plan                                                 October 31, 2004
 6   Adoption and approval of the proposed             November 1, 2004 to     Dai Tu district People's
     relocation sites                                      April 30, 2005      Committee and Provincial
                                                                               Department of Construction
 7   Approval of the Project resettlement policy             March 2005        Thai Nguyen People's
     framework                                                                 Committee
 8   Survey and site planning for Nam Song            April to September 2005  Nuiphaovica, consultants and
     Cong, Hung Son 2, market centre and                                       commune officials of Hung Son
     handicraft workshops
 9   Second round of formal consultation and            March to April 2005    Nuiphaovica, officials of Hung
     information dissemination (including                                      Son, Ha Thuong and Tan Linh
     resettlement policies, compensation unit                                  communes.
     costs) to all affected communes and villages
 10 Prepare the Final Resettlement Action Plan         November 01, 2004 to    Nuiphaovica
     for approval by relevant authorities.                 April 30, 2005
IMPLEMENTATION PHASE                                May 15, 2005 to June, 2008
 11 Review and approval of the Resettlement               May to June 2005     Board of Nuiphaovica and Thai
     Action Plan                                                               Nguyen People's Committee
 12 Information campaign and ongoing                   May 2005 to ongoing     Nuiphaovica, officials of Hung
     consultation and negotiations                                             Son, Ha Thuong and Tan Linh
                                                                               communes.
 13 Demarcation of project affected areas and            September 2005 to     Nuiphaovica, consultants and
     relocation sites, the Detailed Measurement           December 2006        relevant local authorities.
     Survey (DMS) and individual area
     compensation plans
 14 Update of the Resettlement Action Plan for            April to June 2006   Nuiphaovica, consultants.
     public disclosure with the ESIA/ESAP
     documentation




Nuiphaovica, Vietnam                                                                               Page 187

Nui Phao Mining Project                   Resettlement Action Plan                           Final 20-Jul-06



No.                    Activity                            Schedule                   Responsibility
 15 Relocation site construction and associated           July 2006 to       Nuiphaovica, consultants and the
     works                                              December 2007        Dai Tu District Compensation,
                                                                             Assistance and Resettlement
                                                                             Committee (DDCARC)
 16 Economic and livelihood restoration          April 15, 2005 to December, Nuiphaovica
     programs including programs and activities  2007
     for vulnerable groups
 17 Monitoring and evaluation for resettlement   November, 2005 to June,     Nuiphaovica and independent
     program implementation                      2008.                       auditors (e.g. the Panel of
                                                                             Experts for resettlement program
                                                                             evaluation)


12.1 Procedures of Compensation and Relocation

In order to carry out the necessary activities and tasks in accordance with Project implementation
requirements and schedules, a number of procedures have been established to guide the process.
The key steps of compensation and resettlement are summarised in the following procedures.

12.1.1 Procedure of Compensation

Step 1:   Ground demarcation of the affected sectors and areas.

Step 2:   Carry out Detailed Measurement Survey for each affected household in each
          sector/area.

Step 3:   Distribute survey and entitlement forms to each affected household for their
          approval and signature.

Step 4:   Prepare a sub-compensation plan for each sector and obtain approval from the TNPPC.

Step 5:   Prepare a compensation and resettlement card for each affected person.

Step 6:   Inform the affected household of the date, time and venue of compensation
          payment.

Step 7:   Completion and final delivery to the affected household with representatives of
          DDCARC, Nuiphaovica, communes and villages in attendance. The affected
          household/person will sign on the compensation card and copies of receipt will be kept
          by relevant parties.

12.1.2 Procedure of Resettlement to New Relocation Sites

Step 1:   Ground demarcation of the site, a survey and detailed planning report, detailed design
          and bidding documents for the site with stamped approval by the relevant authorities.

Step 2:   Decision on land recovery for developing the relocation site by TNPPC.

Step 3:   Carry out Detailed Measurement Survey and prepare sub-compensation plan for the
          site.


Nuiphaovica, Vietnam                                                                              Page 188

Nui Phao Mining Project                 Resettlement Action Plan                       Final 20-Jul-06



Step 4:   Approval of sub-compensation plan for the site and pay compensation to the affected
          households.

Step 5:   Finalise the list of families to be relocated to the site and locations of their plots.

Step 6:   Inform the affected households about the number of plots they will be allocated.

Step 7:   Select contractor and site construction and supervisor of the construction site.

Step 8:   Allocation of plots to the affected households.

Step 9:   Housing and supervision of construction progress according to the proposed schedule
          Resettlement Action Plan.         Confirm that affected households will supervise the
          construction of their house in a timely manner. Nuiphaovica and local authorities will
          closely supervise this progress and compensation for building will be paid in
          instalments based on the quantity of civil work completed.

Step 10: Verification of site construction and transfer the affected households to the site.

Step 11: Monitoring the livelihood restoration at the new site.

12.1.3 Procedure of Self-Relocation

Step 1:   Consultation on affected household's options and finalise the list of the households who
          prefer to opt for self-relocation.

Step 2:   Together with local authorities and independent monitor's pay compensation to the
          affected households for residential land acquired by the Company, and if necessary
          assist the households in purchasing new residential land.

Step 3:   Monitoring of housing and transfer of the affected families to their new residential
          area.

Step 4:   Monitoring the livelihood restoration at the new site.

Step 5:   Monitoring the livelihood restoration at the new site.




Nuiphaovica, Vietnam                                                                         Page 189

Nui Phao Mining Project                  Resettlement Action Plan               Final 20-Jul-06



                         CHAPTER 13.             COSTS AND BUDGET

13.1 Overview

The total cost for developing and implementing the Resettlement Action Plan is estimated to be
VND 413,502,796,189 which is equivalent to US$26.75 million4 (including a 3.15 million
contingency for unforeseen expenditures). This cost estimate includes the replacement cost of
compensation for land and structures, economic rehabilitation measures, relocation site
development, transition period allowances. Resettlement costs account for approximately 15
percent of the total Project costs.

The compensation and resettlement program costs in US dollars by broad categories are as
follows:

      · Boundary demarcation and detailed measurement surveys                   0.06 million

      · Compensation for residential land                                       6.92 million

      · Compensation for agricultural land                                      3.56 million

      · Compensation for houses and other fixed assets                          3.86 million

      · Compensation for crops, fruit trees and other trees                     1.47 million

      · Acquisition and development of relocation sites                         3.40 million

      · Replacement of public infrastructure and cemeteries                     0.58 million

      · Economic rehabilitation/restoration programs                            2.37 million

      · Transition allowances and special assistance programs                   1.20 million

      · Local government management (excl. of Nuiphaovica costs)                0.18 million

      · Contingency costs                                                       3.15 million

                                                                    Total      26.75 million


Additionally, a cost of US$ 2.57 million has been estimated for the relocation of the military
depot currently located within the Project area.

13.2 Legal Basis

The cost estimate for this Resettlement Action Plan is based on the following:

     (i)    Results of census and inventory prepared by Nuiphaovica;

    (ii)    Decree 197/2004/ND-CP of December 03, 2004 on compensation, assistance and
            resettlement when land is recovered by the state;



4Based on an exchange rate of VND 15,800 per USD.

Nuiphaovica, Vietnam                                                                 Page 190

Nui Phao Mining Project               Resettlement Action Plan                      Final 20-Jul-06



    (iii)   Decree 188/2004/ND-CP of November 16, 2004 on methods of determining land
            prices and assorted land price brackets;

    (iv)    Circular 116/2004/TT-BTC of December 7, 2004 guiding the implementation of
            December 03, 2004 on compensation, assistance and resettlement when land is
            recovered by the state;

     (v)    Circular 114/2004/TT-BTC of November 26, 2004 guiding the implementation of the
            Government's Decree No. 188/2004/ND-CP on methods of determining land prices
            and assorted land price brackets; and

    (vi)    Decision of Thai Nguyen Provincial Committee on compensation unit costs for land
            (Decisions no. 2686/2004/QD-UB dated November 14, 2004); compensation units cost
            for building (Decision no. 3234/2004/QD-UB dated February December 24, 2004);
            and compensation units costs for trees and annual crops (Decision no. 2340/QD-UB
            dated September 26, 2003.

13.3 Calculation of Costs and Compensation

Compensation calculations and the overall cost estimate are based on the principle of
"replacement value" for residential and garden land, agricultural land, crops and trees, houses and
other structures and associated assets. "Unit costs" are the rates determined for land, assets and
other structures by the provincial level government. These rates are based on surveys conducted
by the provincial authorities in Thai Nguyen. Surveys involve various teams of assessors that
determine unit costs based on the current `market value' for such lands, assets and other materials.

The provincial survey process is particularly important for land evaluation as Viet Nam does not
have a formal market for land and according to the land law, the Government use the land value
on transferring land use rights (land belongs to the State and people have the land use right only).
These values are considered to be in accordance with market values as the methodology for
determining land price is to survey the area regarding the price at which people sell or buy land
and through review of auction processes in the locality. Nuiphaovica has worked closely with
district and provincial authorities and affected people to ensure that unit costs are reflective of
current values and costs for the time at which compensation plan is approved (see also Section
13.5).

Compensation for Structures

For house structures and associated assets, replacement costs are based on the categorisation of
buildings according to the standards of Vietnam (with different categories of building). Example
unit costs for different house classes are provided in table 13.1. No deduction is made for
depreciation and rates also include the cost of design, materials, labour and other fees for building
ownership.




Nuiphaovica, Vietnam                                                                     Page 191

Nui Phao Mining Project                           Resettlement Action Plan                                    Final 20-Jul-06



                                                           Table 13.1
                                          Unit Prices for Houses (by Class)

                                  House Class                  Unit               Unit Cost
                                                                                (1000 / VND)
                          Class 1                                m2                   828
                          Class 2                                m2                 1,747
                          Class 3                                m2                   884
                          Class 4                                m2                 1,887
                          Class 5                                m2                   486
                          Class 6                                m2                   423
                          Class 7                                m2                   175
                          Class 8                                m2                   140
                          Class 9                                m2                   201
                          Class 10                               m2                   167
                          House on stilts                        m2                   339
                          Temporary structure                    m2                   140

Note: house class is defined by the type and nature of the structure as determined by the Ministry of Construction.


Table 13.2 also provides example unit costs for other assets or sub-components associated with
residential structures.

                                                           Table 13.2
                                 Unit Price Examples for Miscellaneous Assets

                             Component / Structure                Unit             Unit Cost
                                                                                 (1000 / VND)
                          Dug wells                           Unit                     115
                          Brick water tank                         m3                  600
                          Sanitation on tank                       m3                  600
                          Yard
                             Brick                                 m2                   29
                             Cement sand                           m2                   19
                             Concrete                              m2                  451
                          Allay
                             Brick                                 m2                   29
                             Cement sand                           m2                   19
                             Concrete                              m2                  451
                          Brick stanchion                          m3                  397
                          Concrete stanchion                       m3                 3,253
                          Telephone                               Unit                 550
                          Power meter                             Unit                 574
                          Fish pond                                m2                   31
                          Graves
                             Brick reburied                                           1,148
                             Earth not reburied                                       1,313
                          Bridge
                             Floor                                 m2                  155
                             Abutment                              m3                  312
                             Girder                                m3                 2,491




Nuiphaovica, Vietnam                                                                                               Page 192

Nui Phao Mining Project                 Resettlement Action Plan                   Final 20-Jul-06



Compensation for Land and Associated Assets

Table 13.3 provides the unit costs for residential land as calculated for the different communes.
Unit costs vary within the different communes depending mainly on location.

                                                Table 13.3
                         Unit Prices for Residential and Garden Land

          Commune                     Land Type                 Unit     Unit Cost
                                                                       (1000 / VND)
       Hung Son         Residential land
                           Located in other sites                m2         130
                           Located by the road 37                m2         700
                        Garden land                              m2      88.3~89.5
                        Fish pond                                m2      82.7~89.5
                        Road No. 37 corridor                     m2         95.5
       Ha Thuong        Residential land
                           Located in other sites                m2         130
                           Located by the road 37                m2         400
                        Garden land                              m2       92~92.5
                        Fish pond                                m2       90.8~92
                        Road No. 37 corridor                     m2       95.5~96
       Tan Linh         Residential land                         m2
                           Located in other sites                m2         130
                           Located by the road No. 37            m2         700
                        Garden land                              m2         91.4
                        Fish pond                                m2         n/a
                        Road No. 37 corridor                     m2         95.5



Productive land e.g. agricultural land is classified depending on its productive purpose and
capacity. The compensation value of agricultural land is the replacement value, crops on land will
be compensated separately. Table 13.4 provides example unit costs for agricultural land types in
each of the different communes. Unit costs vary within the different communes but mainly
depend on the land type and purposes of land use.




Nuiphaovica, Vietnam                                                                    Page 193

Nui Phao Mining Project                  Resettlement Action Plan                   Final 20-Jul-06



                                                 Table 13.4
                       Unit Prices for Agricultural Land, Crops and Trees

          Commune                    Land Type                 Unit      Unit Cost
                                                                        (1000/ VND)
        Hung Son         Affected annual crop land              m2     24,374~25,405
                         Affected perennial tree land           m2     18,538~19,702
                         Affected fish pond land                m2     15,800~16,978
                         Affected forestry land                 m2      2,300~ 8,300
        Ha Thuong        Affected annual crop                   m2     25,165 ~ 28,938
                         Affected perennial tree land           m2     16,597~22,944
                         Affected fish pond land                m2     18,318~19,265
                         Affected forestry land                 m2      2,585~8,300
        Tan Linh         Affected annual crop                   m2         26,500
                         Affected perennial tree land           m2         23,290
                         Affected fish pond land                m2         16,748
                         Affected forestry land                 m2         5,278



The rates for residential and agricultural land as well as buildings and other structures presented
above, are costs for 2004 and have recently been reviewed and updated by the Thai Nguyen
provincial authorities. Updated rates for 2006 will be used by Nuiphaovica to make final
calculations for compensation packages to affected households, since it is Company policy to pay
at the most current rates at the time compensation is made to affected households (see also
Section 13.5).

13.4 Detailed Cost Estimate

The detailed cost estimate has been broken down into different operational sectors, affected areas
and also for each affected commune. The following costs are excluded from the resettlement
program budget:

     (i)    Costs for reconstruction of public works such as National Road No.37; the realignment
            of the railway, TELECOMs and power transmission line systems;

    (ii)    Cost for land clearance in the Project area (such as demolishing houses, cutting trees
            etc);

    (iii)   Cost for staff of Nuiphaovica and associated expenditures;

    (iv)    Costs incurred in the resettlement program preparation phases such as the socio-
            economic and asset surveys, meetings etc; and

     (v)    Cost of INTRACO assets.

Costs for these items are incorporated into civil works and construction budgets and Nuiphaovica
operating costs for mine development.




Nuiphaovica, Vietnam                                                                     Page 194

Nui Phao Mining Project                 Resettlement Action Plan                   Final 20-Jul-06



Costs for compensation and resettlement including costs for Resettlement Action Plan
preparation, implementation, administration and management costs, are inclusive of the following
costs:

       · Compensation costs for affected land and other assets in the Project operational areas
            and for all relocation sites.

       · Relocation site development (resettlement and agricultural sites).

       · Social services and infrastructure to be upgraded or newly constructed for
            communities receiving re-settlers.

       · Cemetery development and construction.

       · The market centre and handicraft workshops.

       · Economic rehabilitation programs and special assistance to vulnerable groups (ethnic
            minorities, women headed households, mentally and physically disabled people,
            landless households, and poor families etc.).

       · Allowances and subsidies for additional assistance during relocation and the transition
            period.

       · Bonuses and incentives/additional assistance for self-relocation and for affected
            households who move themselves out of the affected area in a timely manner.

       · Running costs for the Compensation Oversight Board, the Dai Tu District
            Compensation, Assistance and Resettlement Committee.

       · Allowances for local officials who will be working on Resettlement Action Plan
            implementation and training costs for capacity building and skills development.

       · Costs for independent monitoring of the compensation and resettlement program.

The detailed cost estimate is provided in table 13.5 and presents costs for each key component of
the program. Costs are estimated based on current understandings and assumptions and will be
evaluated further as the detailed measurement survey is completed and land acquisition impacts
are finalised.




Nuiphaovica, Vietnam                                                                    Page 195

Nui Phao Mining Project                       Resettlement Action Plan                      Final 20-Jul-06



                                                     Table 13.5
          Summary of the Cost Estimate for the Nuiphaovica Resettlement Program


                                                                            Exchange rate: VND 15,800 per USD

                                                                             Total           Total
 No.                   Item                      Unit          Quantity
                                                                            (VND)            (USD)

  1    Boundary demarcation and detailed measurement survey

       Marking affected areas of operational
 1.1   area and remaining operational sectors     Pile            202     101,000,000         6,392
       (including labour and installation)

       Detailed measurement survey for

 1.2   affected land and assets in accordance
       with proposed land acquisition              HH           1,910     859,500,000        54,399

       schedule

                                  1. Sub-total                            960,500,000        60,791

  2    Compensation costs

 2.1   For residential land (and garden land)

       2.1.1 Sector 1                                           52,268   6,866,503,000       434,589

       Ha Thuong                                   m2           25,649   3,309,722,000       209,476

       Hung Son                                    m2           26,619   3,556,781,000       225,113

       Tan Linh                                    m2              0                            0

       2.1.2 Sector 2                                          110,304   18,656,842,000     1,180,813

       Ha Thuong                                   m2           99,945   16,641,140,000     1,053,237

       Hung Son                                    m2           10,359   2,015,702,000       127,576

       Tan Linh                                    m2              0                            0

       2.1.3 Sector 3                                          251,173   33,263,223,500     2,105,267

       Ha Thuong                                   m2          218,891   29,050,075,000     1,838,612

       Hung Son                                    m2           6,372    1,292,514,000       81,805

       Tan Linh                                    m2           25,910   2,920,634,500       184,850

       2.1.4 Sector 4                                           17,326   1,896,640,000       120,041

       Ha Thuong                                   m2           17,326   1,896,640,000       120,041

       Hung Son                                    m2              0           0                0

       Tan Linh                                    m2              0           0                0

       2.1.5 Sector 5                                           65,560   6,812,129,500       431,147

       Ha Thuong                                   m2           65,560   6,812,129,500       431,147

       Hung Son                                    m2              0           0                0

       Tan Linh                                    m2              0           0                0

       2.1.6 Sector 6                                          241,691   41,917,999,450     2,653,038

       Ha Thuong                                   m2           15,012   3,211,743,000       203,275

       Hung Son                                    m2          180,683   34,082,006,950     2,157,089


Nuiphaovica, Vietnam                                                                             Page 196

Nui Phao Mining Project                      Resettlement Action Plan                                Final 20-Jul-06



                                                                                   Total               Total
 No.                  Item                        Unit          Quantity
                                                                                   (VND)              (USD)

       Tan Linh                                    m2             45,996        4,624,249,500        292,674

                               2.1 sub-total                      738,335     109,413,337,450        6,924,895

 2.2   For non-residential land (agricultural and other land)

       2.2.1 Sector 1                              m2             112,974       2,457,240,700        155,522

       Ha Thuong                                   m2             54,145        1,332,418,300         84,330

       Hung Son                                    m2             58,829        1,124,822,400         71,191

       Tan Linh                                    m2                0                0                  0

       2.2.2 Sector 2                                             176,568       3,640,589,080        230,417

       Ha Thuong                                   m2             148,147       3,082,009,800        195,064

       Hung Son                                    m2             28,421         558,579,280          35,353

       Tan Linh                                    m2                0                0                  0

       2.2.3 Sector 3                              m2             986,612      21,875,816,900        1,384,545

       Ha Thuong                                   m2             932,265      20,799,596,100        1,316,430

       Hung Son                                    m2             38,184         742,456,200          46,991

       Tan Linh                                    m2             16,163         333,764,600          21,124

       2.2.4 Sector 4                                             212,478       3,321,212,400        210,203

       Ha Thuong                                   m2             212,478       3,321,212,400        210,203

       Hung Son                                    m2                0                0                  0

       Tan Linh                                    m2                0                0                  0

       2.2.5 Sector 5                                             351,782       4,879,103,600        308,804

       Ha Thuong                                   m2             351,782       4,879,103,600        308,804

       Hung Son                                    m2                0                0                  0

       Tan Linh                                    m2                0                0                  0

       2.2.6 Sector 6                                           1,087,218      20,012,788,060        1,266,632

       Ha Thuong                                   m2             81,658        1,701,146,900        107,668

       Hung Son                                    m2             717,010      12,469,750,660        789,225

       Tan Linh                                    m2             288,550       5,841,890,500        369,740

                               2.2 sub-total                    2,927,632      56,186,750,740        3,556,123

 2.3   For buildings and other substructures (grave, well, fence, yard, kitchen, water meter, power meter etc.)

       2.3.1 Sector 1                                              5,496        3,913,298,177        247,677

       Ha Thuong                                   m2              2,149        1,857,587,604        117,569

       Hung Son                                    m2              3,347        2,055,710,572        130,108

       Tan Linh                                    m2                0                0                  0

       2.3.2 Sector 2                                             11,811       11,462,590,343        725,480

       Ha Thuong                                   m2             10,892       10,437,195,015        660,582



Nuiphaovica, Vietnam                                                                                       Page 197

Nui Phao Mining Project                      Resettlement Action Plan                    Final 20-Jul-06



                                                                            Total         Total
 No.                  Item                        Unit        Quantity
                                                                           (VND)          (USD)

       Hung Son                                   m2             919    1,025,395,328     64,898

       Tan Linh                                   m2              0                          0

       2.3.3 Sector 3                                          23,127   19,491,480,896   1,233,638

       Ha Thuong                                  m2           20,846   17,476,505,803   1,106,108

       Hung Son                                   m2             984    1,070,576,760     67,758

       Tan Linh                                   m2           1,297     944,398,333      59,772

       2.3.4 Sector 4                                          1,433    1,180,478,732     74,714

       Ha Thuong                                  m2           1,433    1,180,478,732     74,714

       Hung Son                                   m2              0                          0

       Tan Linh                                   m2              0                          0

       2.3.5 Sector 5                                          4,364    4,311,068,100    272,852

       Ha Thuong                                  m2           4,364    4,311,068,100    272,852

       Hung Son                                   m2              0                          0

       Tan Linh                                   m2              0                          0

       2.3.6 Sector 6                                          23,748   20,761,674,297   1,314,030

       Ha Thuong                                  m2             605     519,966,854      32,909

       Hung Son                                   m2           20,603   18,678,561,132   1,182,187

       Tan Linh                                   m2           2,540    1,563,146,311     98,933

                               2.3 sub-total                   69,979   61,120,590,544   3,868,392

 2.4   For trees, annual crops and reserve for annual crops

       2.4.1 Sector 1                                         119,434    941,470,259      59,587

       Ha Thuong                                  Tree         57,674    454,628,229      28,774

       Hung Son                                   Tree         61,760    486,842,030      30,813

       Tan Linh                                   Tree           0                          0

       2.4.2 Sector 2                                         207,347   1,634,460,102    103,447

                                                                       1,413,510,1
       Ha Thuong                                  Tree        179,317        22           89,463

       Hung Son                                   Tree         28,030    220,949,980      13,984

       Tan Linh                                   Tree           0                          0

       2.4.3 Sector 3                                         894,649   7,052,309,733    446,349

       Ha Thuong                                  Tree        832,035   6,558,738,927    415,110

       Hung Son                                   Tree         32,204    253,858,879      16,067

       Tan Linh                                   Tree         30,410    239,711,927      15,172

       2.4.4 Sector 4                                         166,098   1,309,313,803     82,868

       Ha Thuong                                  Tree        166,098   1,309,313,803     82,868

       Hung Son                                   Tree            0                          0



Nuiphaovica, Vietnam                                                                          Page 198

Nui Phao Mining Project                       Resettlement Action Plan                             Final 20-Jul-06



                                                                                 Total               Total
 No.                    Item                     Unit          Quantity
                                                                                (VND)                (USD)

       Tan Linh                                   Tree             0                                    0

       2.4.5 Sector 5                                           301,647      2,377,816,057          150,495

       Ha Thuong                                  Tree          301,647      2,377,816,057          150,495

       Hung Son                                   Tree             0                                    0

       Tan Linh                                   Tree             0                                    0

       2.4.6 Sector 6                                           960,512      7,571,490,909          479,208

       Ha Thuong                                  Tree          69,871        550,779,644            34,859

       Hung Son                                   Tree          648,837      5,114,627,404          323,711

       Tan Linh                                   Tree          241,804      1,906,083,861          120,638

                                 2.4 sub-total                               20,886,860,865        1,466,719

 2.5   Annual crops (reserved)                    HH             1,910       2,287,301,000          144,766

                                  2. Sub-total                              249,894,840,599        15,816,129

  3    Compensation and survey, planning, design and construction for 05 relocation sites

 3.1   Relocation site at Nam Song Cong            m2           157,989      64,306,760,500        4,070,048

 3.2   Relocation site at Hung Son No.2            m2           83,662       20,795,961,850        1,316,200

 3.3   Relocation site at Hung Son No.3            m2           54,400       12,984,259,500         821,789

 3.4   Relocation site at Xom Trai                 m2           74,200       19,075,823,080        1,207,331

 3.5   Relocation site at Khe Thuy Tinh            m2           165,837      4,701,186,300          297,543

                                  3. Sub-total     m2           536,088     121,863,991,230        7,712,911

  4    New cemetery development

                                  4. Sub-total     m2           30,700       2,005,412,000          126,925

  5    Compensation and construction of a segment of affected inter-road in Sector 3

                                  5. Sub-total    Km               6         5,616,083,000          355,448

  6    Compensation for land and other assets affected by realignment of public works and affected assets of
       institutions

                                  6. Sub-total                               3,508,481,900          222,056

  7    Economic restoration programs

 7.1   Employment generation                     Person          3,000       18,000,000,000        1,139,241

 7.2   Construction of market centre              M2             5,347       3,874,102,600          245,196

 7.3   Handicraft workshops                       M2            21,230       15,500,390,500         981,037

                                  7. Sub-total                               37,374,493,100        2,365,474

  8    Allowances and subsidies


 8.1   Relocation/transition allowance         HH/Person      844 / 3,305    2,974,500,000          188,259


 8.2   Transport allowance to new sites            HH             844        2,532,000,000          160,253

 8.3   Incentive for timely moving                 HH             844        4,220,000,000          267,089

 8.4   Bonus for physical self relocation
       (assumed)                                   HH             100        4,000,000,000          253,165



Nuiphaovica, Vietnam                                                                                      Page 199

Nui Phao Mining Project                          Resettlement Action Plan                           Final 20-Jul-06



                                                                                      Total          Total
 No.                   Item                            Unit         Quantity
                                                                                      (VND)          (USD)

 8.5   Health check before and after
       relocation                                     Person           3,305       330,500,000       20,918


 8.6   Compensation for economic
       disturbance (reserved)                          HH               403       1,209,000,000      76,519

                                   8. Sub-total                                   15,266,000,000    966,203

  9    Special assistance to the vulnerable groups

 9.1   Poor HH according to MOLISA
       criteria                                        HH               99         495,000,000       31,329


 9.2   Families receiving social welfare from
       Government                                      HH               85          85,000,000        5,380

       Landless PAP and PAP with affected
 9.3   household values less than value of 50          HH               140       1,400,000,000      88,608
       m (reserved)
         2


 9.4   Women headed households                         HH               164        820,000,000       51,899


 9.5   Gender programs (health care, micro
       finance for women ...)                                                      150,000,000        9,494


 9.6   Programs for Ethnic Minorities and
       affected communities                                                        750,000,000       47,468


                                   9. Sub-total                                   3,700,000,000     234,177

 A     SUBTOTAL (1-9)                                                             440,189,801,829  27,860,114

 10    Administrative and implementation costs

10.1   Cost for COB                                                               1,200,000,000      75,949


10.2   Cost for DDCARC and commune
       working groups                                                              900,000,000       56,962


10.3   Cost for independent monitoring                                             400,000,000       25,316

10.4   Training for RAP implementation                                             300,000,000       18,987

                                 10. Sub-total                                    2,800,000,000     177,215

 B     SUBTOTAL (10)                                                              2,800,000,000     177,215

 C     TOTAL (A+B)                                                                442,989,801,829  28,037,329

 11    Land for land compensation                                                 70,077,857,000    4,435,307

 D     ACTUAL COST (C-11)                                                         372,911,944,829  23,602,022

 12    Contingency

12.1   Contingency for compensation
       package (15%)                                                              37,484,226,090    2,372,419

12.2   Contingency of remaining items (10%)                                       37,291,194,483    778,589

                                 12. Sub-total                                    74,775,420,573    3,151,009

 E     GRAND TOTAL (D+12)                                                         447,687,365,401  26,753,030
Notes: HH is household
       MOLISA is the Ministry of Labour, Invalides and Social Affairs
       COB is the Compensation Oversight Board
       DDCARC is the Dai Tu District Compensation, Assistance and Resettlement Committee
       Sectors relate to different operational areas required for mine development



Nuiphaovica, Vietnam                                                                                     Page 200

Nui Phao Mining Project             Resettlement Action Plan                      Final 20-Jul-06



13.5 Contingency Allowance

According to the Vietnamese Land Law (2003), every January each Provincial People's
Committee must update and issue new unit costs for land, assets, materials and labour costs.
Experience has shown that in most cases the value of land has increased annually, especially for
residential land.

The cost estimate of land and assets to be compensated in 2006 and 2007 have been calculated
using the unit price which was issued in late 2004. Therefore, a contingency of 15 percent has
been applied to the compensation package. This contingency allows for future increases in unit
prices that may occur between the time of this cost estimate and payments to affected people.

In addition, a 10 percent contingency has also been applied to remaining items of the
compensation and resettlement budget to allow for potential unforeseen expenditures.




Nuiphaovica, Vietnam                                                                   Page 201

Nui Phao Mining Project    Resettlement Action Plan    Final 20-Jul-06




                            ANNEXES




Nuiphaovica, Vietnam                                          Page 202

Nui Phao Mining Project    Resettlement Action Plan    Final 20-Jul-06




                         ANNEXES




Nuiphaovica, Vietnam                                         Page A1

Nui Phao Mining Project                        Resettlement Action Plan                             Final 20-Jul-06


                                                      ANNEX A
                       EXAMPLE CONSULTATION QUESTIONNAIRE

  Nui Phao Mining Joint Venture Company                                 Socialist Republic of Viet Nam
                                                                     Independent-Freedom-Happiness


                         CONSULTATION QUESTIONNAIRE
  (for registration of vocational training programs and other economic restoration programs
                                         and location for resettlement)

I ­ General information of HHs:
Householders' full name                          DOB:             Sex: male/female
Ethnicity:           religion                  current occupation                             .
                  Name of village               Commune                             Dai Tu district

                  Total No. of members in family:           Persons, No. of person(s) in labouring
                  age:              .

                  (Number of member aged: 18 - 35:                         ; aged: 36 - 60)


No. of person(s) currently working for government organizations/company:                .

2 ­ Affected categories:
Total productive land area:           m2; Total area lost by the project:               m2
Affected category (see attached policies): Category 1:                     Category 2  Category 3 
Relocation:

3- Occupational and other economic restoration program registration
I certify that, vocational training policies, information on economic restoration programs are thoroughly studied
and the following member(s) of my family would like to participate in the Nuiphaovica economic restoration
programs


 Name of participants                     Sex      DOB        Educational level     Title          of
                                                                                    occupation         Signature

 1.

 2.

 3.

 4.

 5.
Note: The following papers are attached with this questionnaire: (a). vocational training policies of Nuiphaovica,
      (b) List of suggested occupations and (c) Materials and information on vocational training centres. A
      detailed schedule of training and economic restoration programs is going to be informed to householders
      after consultation questionnaire analysis is completed.

4. Householder's commitments:
         I commit that I would comply with regulations of economic restoration programs of Nuiphaovica.
         I also commit that I would fully participate in offered programs if I decide to register.

                                                            Date,....../....../.2005
                                                            Signature of householder




Nuiphaovica, Vietnam                                                                                       Page A2

 Nui Phao Mining Project                                                                Resettlement Action Plan                                                                              Final 20-Jul-06



                                                  INFORMATION ON THE PROPOSED RELOCATION SITES FOR FAMILIES' CHOICES

 Commune................                                                               Village.......................


No.    Name of Site           Commune               Plot area (proposed)                  Plots              Proposed technical                                                                    Household's
                                                                                                                infrastructures               Proposed social infrastructure buildings               decision

                                           5m x 25m= 125m2                                           -    Main road with asphalt pavement.   -     A new community meeting hall, a nursery

1   Nam Song Cong              Hung Son                                                              -    Lighting, electricity network.           school, kindergarten and commune health
                                Tien Hoi   Estimated price: 800.000 ­ 1.000.000vnd         822
                                           per 1m2                                                   -    Water supply and drainage                station.
                                                                                                                                             -     Some new class-rooms for primary school.
                                                                                                     -    Main road with asphalt pavement.   -     A new community meeting hall, a nursery

2   Xom Trai                  Binh Thuan   12m x 25m=300m2                                           -    Lighting, electricity.                   school, kindergarten and commune health
                                           Estimated price: 400.000vnd per 1m2             200       -    Water supply and drainage                station.
                                                                                                                                             -     Some new class-rooms for primary school.
                                                                                                     -    Main road with asphalt pavement.   -     A new community meeting hall, a nursery
                                                                                                     -    Lighting, electricity network.           school, a kindergarten and a commune health
3   Xom 3 (Ham Rong)           Hung Son    12m x 25m=300m2
                                           Estimated price: 400.000vnd per 1m2             149       -    Water supply and drainage                station.
                                                                                                                                             -     Some new class-rooms of Hung Son Primary
                                                                                                                                                   School 1.
                                                                                                     -    -Maintain inter-roads.             -     Health station.
4   Khe Thuy Tinh              Ha Thuong   16m x 25m=400m2                                 80        -    Electricity                        -     Infant school, kindergarten.
                                                                                                     -    Water supply and drainage

                                                                                                     -    Electricity
6   Military K10 store         Ha Thuong   Currently, this area has 100 ha of trees and              -    Upgrade current road
                                           tea planted                                               -    Building a new irrigation dam

                                           An area of 400m2 residential land will be                 -    Electricity                        -     A small nursery school and a kindergarten

                                           available to each HH (for purchase).                      -    Other services as relevant               will be able to built if at least 20 HHs move

    Long Lanh                              Additionally, 5,000m2 land for tea                             depending on level of relocation         to this site

5   (16 km from Dai              Cat Ne    planting & 2 ha-4 ha of forestry land are    Approx. 50        and/or land purchasing at these    -     A small health care station.

    Tu)                                    also available. Estimated price: 80,000 -       plots          sites
                                           100,000 VND per 1 m2 for residential
                                           land.

7            For HHs who do not want to move to suggested relocation sites, they will be supported with an additional amount of 40 million VND. This amount is not inclusive of compensation, vocational training
             expenses, cost of 6 months food.


 HHs who wish to build house by themselves:                                                                  HHs trusts Nuiphaovica to build house:
                                                                                                                                      Signature of Householder (sign and write full name)
 Date: ............./........../2006                                                                                              We discussed, agreed upon and confirm our choices




 Nuiphaovica, Vietnam                                                                                                                                                                             Page A3

Nui Phao Mining Project    Resettlement Action Plan    Final 20-Jul-06

                                ANNEX B
             POSTER ON ECONOMIC RESTORATION PROGRAMS




Nuiphaovica, Vietnam                                    Page A4

Nui Phao Mining Project    Resettlement Action Plan    Final 20-Jul-06



                            ANNEX C

          COMPENSATION PAYMENT PROCEDURE LEAFLET




Nuiphaovica, Vietnam                                         Page A5

Nui Phao Mining Project           Resettlement Action Plan             Final 20-Jul-06



                                    ANNEX D

                        COMPLAINT ACTION FORM




                         COMPLAINT ACTION FORM

PART 1                                 CONTACT AND REGISTRATION DETAILS

COMPLAINT REGISTRATION NUMBER:_____________________
(Number to be taken from the Complaint Log)

DATE RECEIVED: ___________________________________


                                                        TO BE COMPLETED BY COMPANY



LOCATION: __________________________________
(Community/general area)

Complainant: (Name, Surname)__________________________________

Telephone Number: ______________________________________

Address:____________________________________________


                                                   TO BE COMPLETED BY COMPLAINANT

PART 2                                                   COMPLAINT DESCRIPTION




                                                   TO BE COMPLETED BY COMPLAINANT


PART 3                          PROPOSED RESPONSE/CORRECTIVE ACTION




Nuiphaovica, Vietnam                                                         Page A6

Nui Phao Mining Project            Resettlement Action Plan              Final 20-Jul-06




                            COMPLAINT ACTION FORM

Immediate Action:                                               Date for Completion:



Responsible Person:
Signature:
Date:
Long Term Action:                                               Date for Completion:



Responsible Person:
Signature:
Date:
                                                         TO BE COMPLETED BY COMPANY




Other Resolution Details


PART 4                                 VERIFICATION OF CORRECTIVE ACTION
                                Follow-up Details:


Closed Out:_____________________________________


Signature:______________________________________

                      (Date)

                                                         TO BE COMPLETED BY COMPANY


Attach additional pages as necessary




Nuiphaovica, Vietnam                                                           Page A7

Nui Phao Mining Project       Resettlement Action Plan    Final 20-Jul-06

                                   ANNEX E

                       COMPLAINTS PROCEDURE POSTER




Nuiphaovica, Vietnam                                             Page A8