Summary

Executive Summary
Table of Contents
E1. Introduction ............................................................................................................................................ 1

E1.1 Project Proponent .......................................................................................................................... 1
E1.2 Existing SMM Solomon Activities on Santa Isabel Island ................................................................. 3
E1.3 Environmental Impact Assessment Process ..................................................................................... 4
E1.4 Project Overview ........................................................................................................................... 5
E2. Project Need and Alternatives................................................................................................................. 7
E2.1 Project Justification and Benefits .................................................................................................... 7

E2.2 Project Alternatives ........................................................................................................................ 8
E3. Project Description ................................................................................................................................. 9
E3.1 Resources....................................................................................................................................... 9
E3.2 Mine Design ................................................................................................................................ 10
E3.3 Project Components ..................................................................................................................... 10
E3.4 Project Activities .......................................................................................................................... 11
E3.4.1 Construction....................................................................................................................... 11
E3.4.2 Operations ......................................................................................................................... 14
E3.4.3 Rehabilitation and closure .................................................................................................. 14
E4. Environmental Values and Management of Impacts .............................................................................. 14
E4.1 Weather and Climate ................................................................................................................... 14

E4.1.1 Weather ............................................................................................................................. 15
E4.1.2 Climatic Extremes ............................................................................................................... 15
E4.1.3 Climate and Climate Change .............................................................................................. 15
E4.2 Geology, Geohazards and Soils ................................................................................................... 15
E4.2.1 Existing Values ................................................................................................................... 15
E4.2.2 Potential Impacts ................................................................................................................ 16
E4.2.3 Mitigation and Management Measures ............................................................................... 16
E4.3 Water Quality and Flow ............................................................................................................... 17
E4.3.1 Environmental Values ......................................................................................................... 17
E4.4 Aquatic Ecology ........................................................................................................................... 19
E4.5 Terrestrial Ecology ........................................................................................................................ 21
E4.6 Air Quality ................................................................................................................................... 23
E4.7 Noise .......................................................................................................................................... 24
E4.8 Visual Amenity............................................................................................................................. 24
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E4.9 Waste Management ..................................................................................................................... 26
E4.10 Transportation .............................................................................................................................. 26
E4.11 Society and Community ............................................................................................................... 27
E4.12 Cultural Heritage .......................................................................................................................... 31
E4.12.3 Mitigations and Management Measures .............................................................................. 31
E4.13 Cumulative Impacts ..................................................................................................................... 31
E4.14 Conservation Strategy................................................................................................................... 31
E5. Project Commitments............................................................................................................................ 32
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E1. Introduction
An environmental impact assessment (EIA) has been undertaken of the activities proposed by SMM
Solomon Limited (SMM Solomon) on Santa Isabel Island in the Solomon Islands (refer to Figure E-1).
Mining and development of supporting infrastructure on Santa Isabel Island are part of the overall
Solomon Islands Nickel Project (the Project) which includes mining within other mining tenements
owned by SMM Solomon on Choiseul Island. Project activities on Choiseul Island are subject to a
separate EIA.
The purpose of the environmental impact statement (EIS) document is to present the information
gathered and assessed as part of the EIA process. This EIS meets the requirements of the Environment
Act 1998 (Part III, Article 23) relating to the content of an EIS. The requirement for a social impact
assessment (SIA) in accordance with The Environment Regulations 2008 (Regulation 5) is also
satisfied by this EIS.
This Executive Summary of the EIS presents information on the Project in terms of the proponent, the
environmental impact assessment process, project need and alternatives, environmental and social
values, potential impacts and mitigation measures. The structure of this Executive Summary follows
the structure of the EIS document.
E1.1 Project Proponent

The Project Proponent is SMM Solomon:
SMM Solomon Limited

PO Box 912
Mendana Avenue
Honiara, Solomon Islands
Telephone: (677) 27074; Fax: (677) 27075
Email: smmsecretary@solomon.com.sb
www.smm.co.jp/solomon
SMM Solomon is 100% owned by Sumiko Solomon Exploration Company Limited. Sumiko Solomon
Exploration Company Limited is in turn 70% owned by Sumitomo Metal Mining Company and 30%
owned by Japan Oil, Gas and Metals National Corporation. SMM Solomon operates as a subsidiary
of Sumitomo Metal Mining Company. Sumitomo Metal Mining Company is a global company
specialising in mining, smelting, refining and manufacturing of semiconductor and advanced
materials. It is one of 21 leading mining and metals companies that are members of the International
Council on Mining and Metals (ICMM). Members of ICMM are committed to the guiding principles
of the ICCM’s Sustainable Development Framework including:
• Integration of sustainable development considerations in all corporate decisions.
• Preservation of fundamental human rights and respecting cultures, customs and values in
dealings with employees and others who are affected by activities.
• Implementation of risk management strategies based on valid data and sound science.
• Continual improvement to environmental and health and safety performance.
• Conservation of biodiversity and integrated approaches to land use planning.
• Social, economic and institutional development of the communities in which they operate.
• Implementation of effective and transparent engagement, communication and independently

verified reporting arrangements with stakeholders.
PAGE 1
Figure E1-1 Location of Santa Isabel Exploration Tenement within the Solomon Islands
PAGE 2
Sumitomo Metal Mining Company has an extensive history in mining operations around the world.
The company successfully operates, or has equity in, mine and processing facilities throughout the
Asian, Australian/Pacific and Americas regions.
Sumitomo Metal Mining Company has experience in the development and operation of nickel
laterite mines and hydrometallurgical ore processing facilities having developed, and now currently
operating, the Coral Bay Nickel Project in the Philippines. A hydrometallurgical ore processing
facility is also currently under development by Sumitomo Metal Mining Company in Taganito,
Philippines.
SMM Solomon was established in 2005 to engage in the exploration and development of nickel ore
deposits within the Solomon Islands and is based in Honiara, Solomon Islands. The company is
committed to the implementation of the guiding principles of ICMM’s Sustainable Development
Framework as it applies to the Project.
E1.2 Existing SMM Solomon Activities on Santa Isabel Island

SMM Solomon holds a 100% interest in two Santa Isabel tenements, located in the southwestern
portion of Santa Isabel Island:
• Isabel Tenement D under Prospecting License no. PL-48/07, 115 km2 in area.
• Isabel Tenement E under Prospecting License no. PL-49/07, 15 km2 in area.
The Prospecting Licenses for nickel and cobalt were issued to SMM Solomon on 02 July 2007,
renewed in July 2010 and expire on 02 July 2012.
Exploration activities within Isabel Tenement D and Isabel Tenement E commenced in 2007 and
included the following activities:
• field reconnaissance
• geochemical sampling
• auger surveys
• core drilling
• environmental and social studies including implementation of monitoring programs
• mine planning study by Golder Associates
• facility scoping studies by Hatch and Aker Solutions.
SMM Solomon, based on the exploration, mine planning and scoping studies, are in the process of
applying under the Solomon Islands Mines and Minerals Act 1990 for Mining Leases to enable them
to mine the ore reserves identified within the Isabel Tenement D and Isabel Tenement E. The Mining
Leases will be the same area as the Prospecting Licenses. The EIS document for the proposed Project
is provided by SMM Solomon in partial fulfilment of the requirements for obtaining Mining Leases
for the tenements.
PAGE 3
E1.3 Environmental Impact Assessment Process
The EIA process undertaken for the Project EIS, outlined in the Environment Act 1998, provides a
mechanism to ensure environmental considerations are fully integrated into the decision making
process at the planning stage of the Project. The EIA process aims to:
• Inform decision making by:
 identifying existing values (ecological, social and cultural)
 identifying and assessing potential impacts (both positive and negative)
 proposing mitigation measures.
• Promote sustainable development by:
 identifying and minimising key risks and enhancing key opportunities
 developing effective environmental management plans to achieve risk reduction and

opportunity enhancement.
This approach allows for the mining of resources to contribute to sustainable socio-economic
development, maintain ecological systems and provide a responsible ongoing legacy for the people
of Santa Isabel Island and the Government of the Solomon Islands.
The objectives of the EIS are to:
• Identify and assess the environmental, social and economic impacts of the Project using best
practice methodology, standards and guidelines as applicable.
• Propose practical measures to prevent, minimise and/or mitigate identified negative impacts.
• Identify areas of high conservation significance for biophysical, cultural and social values.
• Inform an environmentally sound and sustainable engineering process.
• Provide credible information to the Solomon Islands Government for the purposes of making a
development approval decision and setting conditions of approval.
• Propose a plan to monitor and manage project implementation such that the Project is
sustainable and optimises natural resource use.
This EIS has been developed based on engineering studies by Hatch and Golder Associates,
completed for the Project facilities and mining of the ore deposits. The proposed footprint for the
Project identified through these engineering studies was used in specialist environmental and social
studies and impact assessment reports.
The Impact Assessment Reports were prepared by Hatch, AECOM, frc environmental and local
consultant N&S Consulting in collaboration with a number of local specialists. The Impact
Assessment Reports identified the environmental and social values and assessed the potential for
these values to be impacted by the proposed Project. Risk assessments were undertaken to determine
the significance of each potential impact based on a consequence and probability matrix, which
produced a low, medium or high significance level for each impact. Measures to prevent, minimise
or mitigate the impacts have been proposed using best management practices and industry standards
with the aim of reducing these risk levels.
PAGE 4
E1.4 Project Overview
The Isabel Tenement D and Isabel Tenement E are located in the southwestern portion of Santa
Isabel Island. The tenements are collectively referred to as the Project area for the purposes of this
EIS. Refer to Figure E-1-2.
The Project proposes to mine nickel laterite occurring in the ground as two distinct types, namely
higher quality saprolite ore and lower quality limonite ore (which has formed above the saprolite ore
zone).
The construction phase of the Project will require both early works and pre-production development
activities. Construction activities are anticipated to commence approximately 24 months prior to the
commencement of operations. The operations phase is planned based on a proposed mine life of 23
years. Following mine closure it is anticipated that a small team will remain on site for several years
to monitor the rehabilitation works.
PAGE 5
Figure E-1-2 Location of Project Area on Santa Isabel Island
PAGE 6
E2. Project Need and Alternatives
E2.1 Project Justification and Benefits
Nickel is used in the production of many different metal alloys for specialised use with stainless steel
being the largest industrial use. The main source of cobalt is as a by-product of copper and nickel
mining. It is used in the production of a number of alloys which are corrosion and wear-resistant.
Global demand for nickel has increased substantially over the last 20 years with China’s economic
development having driven much of this growth. Projected increases in global stainless steel
production and Chinese nickel pig iron are predicted to support nickel metal prices in the medium
term.
Nickel laterite ore occurs as limonite ore and saprolite ore. Saprolite is processed through a
pyrometallurgical process for market sale as nickel. Saprolite ore produced by the Project would
provide the Hyuga Nickel Smelter, located on the west coast of Kyushu, Japan and owned primarily
by the Sumitomo Metal Mining Company, with feedstock (i.e. high nickel and low iron content). This
smelter produces a ferronickel product (alloy made from iron and nickel) which is the main material
used in the production of stainless steel.
Limonite ore is processed for market sale as nickel product through hydrometallurgical processing.
The limonite ore produced by the Project would be treated by a Hydrometallurgical Process Plant
(HPP) either in the Philippines at Taganito or Coral Bay, or a new SMM Solomon HPP facility that
may be developed in the Solomon Islands.
The mineral resources of the Solomon Islands remain largely undeveloped. Development of the
Project would assist the Solomon Islands in realising their resource potential. The Project will
contribute to supporting and financing the development needs of the Solomon Islands resulting in
benefits to the local people through long-term revenue contributions to the economy. It is also
anticipated that the Project will generate local employment and small business development
opportunities on Santa Isabel Island and other Solomon Island locations.
SMM Solomon is committed to ensuring the mining of the nickel ore within Isabel Tenement D and
Isabel Tenement E is carried out efficiently, cost effectively, minimising negative environmental
impacts and providing the people and government of the Solomon Islands long term benefit for their
mineral resources.
The Project will provide a significant long-term economic contribution to the Solomon Islands in
general, and Santa Isabel Island in particular. Specific benefits may include:
• peak employment of up to 500 people during the construction of critical infrastructure over
approximately 24 months
• employment of up to 600 people to operate the Project over the 23 year mine life
• estimated contribution of between US$30 million and US$89 million in tax revenues to the
Government of the Solomon Islands over the life of the Project (depending on nickel and cobalt
commodity prices)
• increased opportunities for education and training of local people with the aim of employment
within the Project
• indirect employment and development opportunities for local residents such as purchase of
goods and services from local suppliers and small-scale development activities
PAGE 7
• other indirect benefits such as infrastructure (port, roads, power generation) which may relieve
local economic development constraints related to the lack of critical infrastructure
• benefits to the macro-economy including an increase in the Gross Domestic Product of an

average of 0.3% per year over the life of the Project depending on commodity prices
• contribution to increased household income within the Solomon Islands.
E2.2 Project Alternatives

Project alternatives were considered throughout the scoping phase of the Project, including
conceptual, technological and locality alternatives.
Table E-1 presents the conceptual options considered for the Solomon Islands Nickel Project.
Table E-1 Conceptual Project Options
Component Option 1 Option 2 Option 3 Option 4

(no project)
Mining Elsewhere Solomon Islands Solomon Islands Elsewhere
Processing Elsewhere Japan/Philippines Japan/Solomon Islands Japan/Solomon
Islands
Shipping Elsewhere Ore from Solomon Mixed sulphide Shipping ore into
Islands transported precipitate (processing and processed
to Philippines and plant product) product out of
Japan transported to Japan Solomon Islands
Option 3 is SMM Solomon’s preferred alternative for carrying out the Project in the long term. It is a
more integrated option for SMM Solomon and would involve the mining of all SMM Solomon
owned tenements (including those on Santa Isabel Island and Choiseul Island) and the processing of
limonite nickel ore within the Solomon Islands. High grade saprolite ore would be shipped to Japan
for processing at Sumitomo Metal Mining Company’s Hyuga Nickel Smelter in Japan. Option 3
would involve less shipping than the other options and the reliability of ore supply to processing
facilities could be better managed. The potential for localised impacts to the environment and
communities of Santa Isabel and Choiseul Islands is greater with this option. However, it could
potentially provide increased economic benefits for the people and government of the Solomon
Islands.
Current Project planning is based on implementation of Option 2. This is because there is insufficient
limonite in the current tenements (Isabel Tenement D and Isabel Tenement E) on Santa Isabel Island
and Choiseul Island to warrant the establishment of a new processing plant in the Solomon Islands.
Additional nickel resources in the Solomon Islands would be required before a processing plant
would be financially feasible.
The preferred location for each of the Project’s major facilities and infrastructure, including the Port
facilities and mine industrial area (MIA) was based on an analysis using four criteria namely:
environmental factors, socio-economic (community) aspects, constructability and operational factors.
PAGE 8
E3. Project Description
E3.1 Resources
Nickel laterites develop through enrichment of nickel in the soil above the ultramafic rocks. The
nickel laterite profile has two distinct zones:
• Limonite or upper oxide zone – comprised of ferruginous saprolite, limonite and a ferruginous
zone. This zone produces a lower quality nickel ore.
• Saprolite or lower silicate zone – comprised of saprolitic rock, rocky saprolite and saprolite. This
zone produces a higher quality nickel ore.
Figure E-3-1 presents a simplified soil profile. Approximately 9.6% of the proposed Mining Lease
areas are underlain by nickel ore (comprised of limonite and saprolite).
Figure E-3-1 Typical Siruka Ultramafic Soil Profile
The limonite resource estimate was identified as 38.9 million tonnes (Mt) at a 0.7% Nickel (Ni) cut-
off with a high grade saprolite resource of 3.0 Mt at a 1.6% Ni cut-off.
Note that ultramafic derived soil also presents with naturally enriched levels of iron, cadmium, and
cobalt. These elements are subject to the same primary processing as nickel. Cobalt can be
subsequently refined into market product/s and other elements are removed as waste product.
PAGE 9
E3.2 Mine Design
Nickel ore is located in numerous, relatively shallow, moderately small deposits throughout the
tenements. A number of mine areas (two to three) will be opened simultaneously throughout
operations to allow flexibility in the mining schedule and ensure annual production is achievable
and not affected by site conditions/situations. An estimated 60 ha (0.6 km2) will be mined annually.
This will result in the production of 2.05 dry million tonnes per annum (Mtpa) of nickel laterite ore
comprised of 1.8 Mtpa of limonite and 0.25 Mtpa of saprolite.
The total area of disturbance from mining operation activities is estimated to be 1,233 ha for mine
areas and a further 220 ha for primary haul and mine access roads.
A conventional strip mining system will be used to extract the ore resource. The majority of the areas
to be mined are located in rugged terrain (predominantly on ridge flanks). Mining activities will be
initiated at the highest topographical point on the bench with mining operations proceeding
progressively downhill in benches providing for enhanced slope stability. The mining is conducted
along benches which are 50 m wide horizontally and further divided into working panels (down
slope) measuring 50 m x 50 m.
The road infrastructure for the mining operations will consist of primary haul roads located along the
length of the tenement that are fed by a network of progressively smaller mine access roads leading
to the individual mine areas. Haul distances to the Port of up to 30 km will be required. Figure E-3-2
(Isabel Tenement D) and Figure E-3-3 (Isabel Tenement E) show the footprint of the mine, including
mine areas and Project roads.
E3.3 Project Components

The location of the main facilities and infrastructure of the Project are shown in Figure E-3-2 and
Figure E-3-3 and described below:
• The mine areas including sediment and erosion controls and structures, bench access and
temporary stockpile areas.
• The ore handling and transportation features include primary haul roads, temporary ore
stockpiles and general access roads to mining areas.
• To support the mining activities on the Isabel tenements, two ports are proposed along the south-
western coastline in the Thousands Ships Bay:
 Port-I1 – located near the mouth of Takata Bay, will be used for ore handling, general cargo,
fuel and personnel. Port facilities will include the following: ore screening area; stockpile
area; barge landing facility, transhipment and designated anchorage locations (off-shore);
ferry terminal; other moorings or landing facilities; and utilities infrastructure (water and
wastewater reticulation, waste management, power, telecommunications)
 Port-I2 – adjacent to Lepi Bay. Key product handling facilities and supporting infrastructure
will be similar at both ports however facilities for Port-I2 will be on a smaller scale.
• The Project general infrastructure areas include the:
 mine industrial area (MIA-I3) including workshop and vehicle maintenance areas; vehicle
wash areas; refuelling facilities; hazardous chemicals storage facility; and administration
buildings.
 facility and service roads
 accommodation camp (AC-I1)
PAGE 10
 borrow pits (if required)
 landfill site
 water storage facility (WSF-I1)
 general infrastructure for water and wastewater reticulation, waste management, power,
telecommunications.
E3.4 Project Activities

Project activities may be categorised into three phases: construction, operation and mine
rehabilitation and closure (decommissioning).
E3.4.1 Construction
The construction phase of the Project will include both early works and pre-production development
activities. The construction phase sequencing is as follows:
• implementation of sediment and erosion control measures
• clearing and grubbing of areas to be developed for Project facilities and infrastructure
• establishment of initial Port facilities
• establishment of temporary construction camp and associated infrastructure
• establishment of initial access roads to construction camp and MIA
• construction of accommodation camp, MIA and mine construction infrastructure
• establishment of initial mine areas and road sediment control and initial clearing and stockpiling
of the first areas to be mined.
PAGE 11
Figure E-3-2 Project Footprint on Isabel D
PAGE 12
Figure E-3-3 Project Footprint on Isabel
PAGE 13
E3.4.2 Operations
The operations phase is defined as the mining and transportation of the ore to the Ports, the loading
of barges and the transhipment of ore from barges to larger vessels. The operations phase of the
Project will be conducted in the following sequence:
• clearing and topsoil removal
• overburden removal
• limonite ore mining and saprolite ore mining
• transport and stockpiling of ore at port facilities
• loading onto barges and transfer offshore to ocean going vessels equivalent to Handymax sized
vessels.
Limonite and saprolite will be handled separately from mining activities through to loading of the
ocean going vessels.
E3.4.3 Rehabilitation and closure
The rehabilitation and closure process for the Project is planned in three distinct phases, progressive
rehabilitation, closure at the end of mine life and post-closure monitoring. The progressive planned
activities are:
• Progressive rehabilitation which will be conducted throughout the Project including after the
construction phase and during the operations phase. Rehabilitation will include:
 grading of completed mine areas and other areas no longer required to stabilise landform
and to resemble surrounding topography
 implementation of appropriate erosion and sediment control as required
 spreading of topsoil and application of soil treatment as required
 revegetation through natural regeneration, supplementary planting or provision of an area

suitable for agricultural activity.
• Project closure which will include removal of Project infrastructure and facilities (unless subject
to prior agreement), stabilisation of landforms and final rehabilitation of completed mine areas
and other areas no longer required.
• Post-closure maintenance of rehabilitated areas until surrender of mining tenements.
A conceptual Mine Rehabilitation and Closure Plan has been developed and will be updated as the
Project commences and progresses through construction and operation stages.
E4. Environmental Values and Management of Impacts

The assessment of potential impacts and associated mitigation measures are described for each of the
Project’s environmental and social elements.
E4.1 Weather and Climate

A description of the weather and climate has been provided to contextualise the proceeding
information on existing values and impacts.
PAGE 14
E4.1.1 Weather
The Solomon Islands, has a climate that is typical of most tropical areas. Air temperature is fairly
uniform with an average maximum temperature range of 30 - 32 ºC. The mean daily range of
temperature is approximately 7 ºC.
The Solomon Islands has two seasons – one which occurs from November to April and one which
occurs from May to October. These seasons are characterised by a change in the prevailing direction
of the trade winds. Localised rainfall distribution is affected by topography and can vary considerably
from one location to another. The average annual rainfall experienced is mostly within the range of
2,000 – 5,000 mm, with the majority of monthly rainfall totals in excess of 200 mm.
SMM Solomon has established three weather monitoring stations on Santa Isabel Island for the
purposes of recording local weather patterns. These local data were used in the preparation of the
EIS.
E4.1.2 Climatic Extremes
Countries in the Pacific region are frequently subject to climatic extremes. The most common natural
disasters are thunderstorms, tropical cyclones and low pressure systems, floods and droughts.
Thunderstorms frequently occur over mountainous islands like Santa Isabel Island, usually in the
period from December to March. Damage from thunderstorms usually results from strong downburst
winds and flash flooding associated with heavy precipitation.
Tropical low pressure areas frequently occur over the Solomon Islands but very few develop into
tropical cyclones. Tropical cyclones can occur from November to April, generally once or twice per
year.
Flooding is one of the effects of a tropical cyclone. Coastal flooding is a major problem for the small
and atoll islands and coastal areas of large islands, in the Solomon Islands. Drought, which is
influenced by the El Niño and La Niña phenomena, often occurs in the Solomon Islands. During the
1998 to 2001 La Niña event thousands of people experienced food and water shortages.
E4.1.3 Climate and Climate Change
The climate of the Solomon Islands is controlled by global and regional atmospheric wind circulation
patterns that influence both the ocean currents and the sea-surface temperatures. The ocean in turn
impacts the atmospheric winds, air temperatures and rainfall.
Climate variability and climate change have been a feature in the Solomon Islands region over long
time scales. Although climate variability and climate change have been driven by natural
mechanisms, more recent climate trends and the observed patterns of global warming are also
partially driven by human influences (BOM and CSIRO 2011a, IPCC 2007).
Changes to the climate of the Solomon Islands region which could potentially impact on the Project
include extreme weather events, sea level change, changes in surface air and sea-surface temperature
and ocean acidification.
E4.2 Geology, Geohazards and Soils

E4.2.1 Existing Values
E4.2.1.1 Geology, Geography, Geomorphology and Geohazards
The Solomon Islands is an archipelago comprised of six major islands forming a northwest-southeast
trending double chain of islands. Most of the islands and their corresponding geology are derived
from volcanic activities and crustal uplift due to collision between the Indo-Australian and Pacific
Tectonic Plates.
PAGE 15
Santa Isabel Island is characterised by moderately steep to steep narrow ridges with average
elevations of 250 m to 400 m. The ridges are generally aligned parallel to the orientation of Santa
Isabel Island. The ridges are incised by narrow river channels which abruptly terminate in the flat
coastal areas.
The most significant geological structure within the island is the Kia –Korigole-Kaipito Fault Zone
(KKKFZ). This fault zone separates the volcanic and sedimentary rocks northeast of the island from
the ultramafic rocks towards the west.
The inherent geohazards identified for the Project are, in order of decreasing probability, topsoil loss,
land use or geomorphologic change, slope failure, earthquake, tsunami, and volcanic activity.
E4.2.1.2 Soil Type and Characteristics
The soil profile of Santa Isabel Island is classified as three divisions namely laterite or limonitic zone,
saprolitic zone and basement rocks. Santa Isabel Island has 13 soil associations with eight of these
found in Isabel Tenement D and Isabel Tenement E. Soils that have the potential to become acid
sulphate soils are found in the coastal areas of Takata Bay.
Geo-accumulation of cadmium, chromium, copper, and iron has resulted in enrichment of soil
profiles in the area. Concentrations of other metals including arsenic, nickel and aluminium are
within their respective normal ranges.
The majority of the soil cover in Isabel Tenement D and Isabel Tenement E is unsuitable for
agriculture but can support forestry. Other soil associations found within the tenements result in
conditions that restrict the kind of vegetation that can be supported or require special conservation
practices.
Soil characteristics and geomorphologic features on the island indicate that most areas in Santa Isabel
Island are prone to erosion.
E4.2.2 Potential Impacts
The key potential impacts associated with land, geology, geohazards and soils in the Project area
were considered to include:
• temporary and permanent changes to landform or geomorphology
• loss of soil through erosion
• failure of soil structure including slope failure and landslides, particularly on high angle slopes
• contaminants entering the soil within the Project area, including hydrocarbons, industrial
materials and soil and liquid waste
• impacts associated with disturbance of soil that may become acid sulphate soil, including
pollution of groundwater and surface water, failure of soil structure and soil erosion and
corrosion of materials used for the construction of the port facility.
E4.2.3 Mitigation and Management Measures
Measures to reduce the risk of impacts include undertaking all reasonable and practicable measures
to minimise short and long-term soil erosion and the adverse effects of sediment transport;
progressively restoring disturbed land areas and slopes as close as possible to pre-mining conditions;
and engineering landslide and slope failure hazards so that the risk is minimised.
PAGE 16
E4.3 Water Quality and Flow
E4.3.1 Environmental Values
E4.3.1.1 Freshwaters
Isabel Tenement D is characterised by a central steep ridge. The southern side of the ridge is drained
by a number of rivers which flow to New Georgia Sound and Thousand Ships Bay. The northern side
of the ridge is drained by several large mountain streams, forming tributaries to the Kuakula River,
which in turn drains into the Pacific Ocean.
Isabel Tenement E is located on the southern side of a ridge drained by several small streams,
flowing to New Georgia Sound.
The quality of the freshwater surveyed was moderate to good. Several water quality parameters were
outside of the guideline ranges. However, most of the streams and rivers within the survey area
generally had clean and clear water which promotes the growth and health of aquatic plants.
Turbidity was consistently high in the Kaipito River and, on occasion, at several other sites. This is
likely to be linked to runoff following heavy rain and the proximity to cropped areas.
Significant variation in both flow velocity and volume observed during monitoring surveys was likely
due to the frequent intense rain events that occur on Santa Isabel Island.
Metals were detected in the water at all sites in varying concentrations. These metals concentrations
were naturally high due to the local geology.
Sediment quality within the freshwater survey area was generally good. The concentrations of metals
(with the exception of total chromium, copper and nickel) and major ions were generally low at most
sites. The relative concentration of metals, major ions and nutrients in the freshwater sediment at
each site are likely to be due to site-specific geology (i.e. mineral-rich soils in the relevant
catchment).
E4.3.1.2 Groundwater
The topography of the land defines the physical limit of groundwater resources for Santa Isabel
Island. The numerous ridges and network of rivers have contributed to the formation of
discontinuous (separate) aquifers. The steep gradient also contributes to fast groundwater flow and
groundwater lenses deep below the land’s surface.
The concentration of total dissolved solids was within the acceptable range for guidelines for
groundwater samples from all monitoring wells.
Concentrations of dissolved arsenic, barium, chromium, cobalt, copper, manganese, zinc and tin that
were detected in monitoring wells or spring samples were below guideline values. Concentrations of
dissolved boron, beryllium, molybdenum, selenium, vanadium and mercury were below the
laboratory limits of reporting at all sites (i.e., too low to detect).
None of the average concentrations of the parameters analysed exceeded guideline values except for
nickel. The high nickel concentrations are natural and characteristic of the baseline groundwater
conditions.
E4.3.1.3 Marine/Estuarine Waters
The marine waters surveyed included areas close to the proposed port facilities. The estuarine waters
surveyed were mostly located in areas potentially impacted by land-based Project activities including
estuarine reaches of the following rivers; Hugru River, Kaipito River, Kolongongoe River, Koloseeru
River, Kuakulu River, Laolonga River, Mablosi River and the Rotue River.
PAGE 17
The quality of marine and estuarine water was moderate to good and typical of tropical inshore
waters. Turbidity in marine waters was generally low during the baseline field survey except
following periods of heavy rainfall. Sediment-laden runoff from rivers was likely due to upstream
clearing for logging and agricultural uses.
Metals were detected in the water at all sites in varying concentrations. These metals are naturally
high due to the local geology.
The quality of the marine sediments within the survey area was generally good. However, sediment
quality was moderately poor at the following locations:
• Sites in Huali Bay and Takata Bay.
• Sites near the Koloseeru River mouth due to high concentrations of several metals. (Note that
river will not be directly impacted by the Project since it is located in a catchment remote from
the Project area.)
• At the Midoru logging camp due to high concentrations of nutrients and the presence of
petroleum hydrocarbons.
E4.3.1.4 Community Water
Community water is used mainly for domestic purposes including drinking water, cooking, washing,
laundry and sanitation. Water supplies are generally sourced from small streams located close to the
village, collected by a dam or weir and distributed to communal standpipes each shared by three to
five households. In some instances, community members fetch water in containers from these taps or
else from the stream directly.
Water becomes silty and turbid during and shortly after rainfall events. Suspended solids for most
samples were below the limit of reporting except for Lepi and on one occasion in Leleghia and
Midoru.
Escherichia coli and total coliforms were present in all water samples tested indicating faecal
contamination of drinking water sources. The World Health Organisation (WHO) guidelines for
drinking water quality indicate that E. coli must not be detectable in any 100 mL sample.
Chemical parameters such as dissolved metals, total metals, dissolved mercury, total recoverable
mercury, hexavalent chromium and total cyanide all fell below WHO 2011 guidelines.
The key potential impacts from the Project on surface water and consequently groundwater and
community include the following:
• Increased turbidity and sedimentation in marine/estuarine waters during port construction and
operation, and increased turbidity and sedimentation in freshwater and marine/estuarine waters
due to soil erosion from vegetation clearing and earthworks/mining.
• Loss of catchment area and changes to freshwater flow regimes due to construction and
operation of mine areas, the water storage facility, ponds for sediment capture and supporting
infrastructure (e.g. installation of waterway crossings).
• Accidental spills of hydrocarbons and other potential contaminants from the operation of
vehicles, mine machinery and port vessels.
• Nutrient enrichment of freshwater and marine waters through stormwater runoff, wastewater
discharge and by the disturbance of nutrient-rich marine sediment during the construction of port
facilities.
PAGE 18
• Disturbance of acid sulphate or potential acid-sulphate sediment or contaminated sediment
during construction of the port facilities.
• Altered marine hydrodynamics around the port areas and consequently altered flushing and
patterns of sediment deposition and erosion.
• Contamination of community water supply with faecal waste, litter, food scraps and other
wastes.
• Increased competition for water resources due to the water requirements for Project activities
and supporting infrastructure.
The key potential impacts to groundwater were identified as:
• Intrusion of contaminants of potential concern (e.g. hydrocarbons, industrial lubricants, reagents

and other wastes) potentially causing a decline in groundwater quality, altering flow, depth and
hydraulic conductivity.
• Alteration of groundwater flow may occur due to the stripping or removal of overburden and
topsoil and construction of Project facilities.
SMM Solomon will endeavour to minimise the impacts to surface water and groundwater quality
flow from the Project, and will ensure community water supply potentially affected by the Project be
maintained throughout the life of the Project.
All reasonable and practicable measures will be undertaken to minimise short and long-term soil
erosion and the adverse effects of sediment transport. This will include the staging of mining
activities and progressive rehabilitation of completed mine areas. Measures to reduce the risk of
impacts include the following recognised/standard practices for erosion and sediment control; spoil
handling activities; port design; construction and operation of the facilities and mine areas; fuel, oil
and chemical storage and handling; and ore handling. Spills of contaminants will be contained and
remediated to ensure no adverse impacts on waterways. Acid mine drainage is considered unlikely,
however mine drainage will be monitored and controlled where necessary.
E4.4 Aquatic Ecology

E4.4.1.1 Freshwater Ecology
Surface water ecosystems within the survey area support a high diversity of fauna, and are
characterised by a diverse range of aquatic habitats, intact riparian vegetation and limited erosion.
The value of these ecosystems is high; most streams have good environmental flow, water quality
and connectivity for the movement of aquatic biota along waterways. Nineteen species of
macrophytes were recorded. Aquatic macroinvertebrate communities of the Solomon Islands are
diverse, with many endemic species. Two species of freshwater fish, listed on the International
Union for Conservation of Nature (IUCN) Red List of Threatened Species, were caught in the survey
area:
• the spotted flagtail (Kuhlia marginata), listed as ‘lower risk/least concern’
• the spotted scat (Scatophagus argus), listed as ‘least concern’.
There are no protected areas that include freshwater habitats within the Project area. Local villagers
identified seven important areas utilised for fishing, within and downstream of the Project area.
PAGE 19
E4.4.1.2 Marine Ecology
Marine ecosystems of the survey area are dominated by extensive mangrove forests and coral reefs,
together with rocky and sandy shorelines, seagrass meadows and bare substrate. These marine
ecosystems support diverse floral and faunal communities and have high environmental value. The
condition of marine habitats (e.g. mangroves, seagrass, coral reefs) downstream of the Project area is
mostly good, with some degradation due to human influences (e.g. mangrove clearing and some
siltation of reefs due to sediment-laden run-off from rivers downstream of logging tracks). No known
exotic biota were identified.
There are at least 40 species of marine flora and fauna listed on the IUCN Red List of Threatened
Species that occur, or may occur on occasion, in the survey area, including:
• ten mangrove species
• eight seagrass species
• seven fish species important to local artisanal fisheries
• six mollusc species important to local artisanal fisheries
• six reptile species, including five turtle species and one crocodile species
• three marine mammal species, including two whale species and one dugong species.
A large number of the fish species occurring within the survey area are important to the local
artisanal fishery. Commonly collected marine/estuarine fishes included trevally (Carangoides spp),
coral trout (Plectropomus leopardus and other species of that genus), snapper (Lutjanus spp.),
emperor (Gymnocranius spp., Lethrinus spp.), sweetlips (Plectorhinchus spp.), scombrids (mackerel,
tuna and bonito) and mixed reef fish (e.g. parrotfish, wrasse, surgeonfish and soldierfish). A number
of invertebrate species are also collected for consumption. Several villages in the survey area
consume turtle meat and eggs. Villagers in one location reported hunting crocodiles for
consumption.
Concentrations of several metals, including aluminium, arsenic, chromium, cobalt, copper, iron,
molybdenum, tin and zinc were relatively high in the tissue of marine biota collected near several
waterways, compared to guidelines values (where available) and/or other sites.
The concentration of arsenic in the tissue of marine biota was high in most samples, compared to the
health and safety guidelines for aquatic foods. The high concentration of arsenic was found in tissues
of crayfish, mid crab and mudshell fish collected from several locations.
The concentration of arsenic, cobalt, zinc, chromium, nickel was relatively high in marine waters
and/or sediments, compared to guideline values (where available) and/or other sites, near the
proposed Port-I1 (Takata Bay).
Arsenic in marine sediment is likely to be associated with the local geology. It is considered unlikely
that the Project will increase concentrations of arsenic in the marine environment.
There are no protected areas that include marine habitats within the Project area. However, local
villagers identified an important fishing area adjacent to Isabel Tenement E; the Midoru Sea Fishing
Area, within Thousands Ships Bay.
PAGE 20
Potential impacts of the Project on freshwater and marine ecosystems were considered to include:
• Increased turbidity and subsequent sedimentation in aquatic habitats due to port construction,
vegetation clearing, earthworks and construction of waterway crossings.
• Direct loss of marine habitat through reclamation (and dredging if required) for the port facilities,
and indirect loss of marine habitats due to altered hydrodynamics in marine waters adjacent to
port facilities.
• Loss of catchment area and changes to flow regimes due to the construction of mine areas, water
storage facility, ponds for sediment capture and supporting infrastructure, including the
installation of waterway crossings and consequent impacts to aquatic fauna passage.
• Loss of freshwater habitats for aquatic fauna due to vegetation clearing and earthworks/mining.
• Spills of hydrocarbons and other potential contaminants from operation of vehicles, mine
machinery, and transport or handling of materials/substances (including nickel ore) into marine
or freshwaters.
• Increased noise, vibration and human activity within and around the port facilities.
• Introduction of marine pests through ballast water and hull fouling.
• Introduction of litter and waste into rivers, streams and marine waters, contributing to the
degradation of water quality and negatively impacting biota.
• Increased pressure on marine resources due to increased harvesting.

Mitigation measures to reduce the impacts to freshwater and marine ecosystems include taking all
reasonable and practicable measures to minimise short and long-term soil erosion and the adverse
effects of sediment transport, including staging mining activities and progressively rehabilitating
completed mine areas. Recognised/standard practices will be followed for port design; construction
and operation of facilities and mine areas; fuel, oil and chemical storage and handling; and ore
handling. Spills of contaminants will be contained and remediated to ensure no adverse impacts to
waterways. Acid mine drainage is considered unlikely, however mine drainage will be monitored
and controlled where necessary. The bulk of the produce required for the accommodation camp will
be sourced outside of Santa Isabel Island to ensure that local overharvesting of marine resources does
not occur.
E4.5 Terrestrial Ecology

E4.5.1.1 Flora
The vegetation within the Project area is relatively intact, with over 75% still covered with old
growth forest. Some parts of the Project area were, or are currently being, used by local village
communities for cropping (approximately1,681 ha) or commercial forestry (approximately 1,214 ha).
Two major vegetation communities occur within the Project area:
• Forest over ultrabasic/ultramafic rocks (i.e. ironwood forest) represents about 54% or 6,602 ha of
the total Project area. Xanthostemon melanoxylon (ironwood) is the dominant species within this
forest type.
PAGE 21
• Lowland rainforest occurs in flat areas along the Santa Isabel Island coast, extending to the
lowland ridges or hills (to 500 m above sea level). This forest type represents about 45% or
5,475 ha of the total Project area. Lowland rainforest predominantly comprises Astronidium sp.
and Finschia sp.
A total of 162 morpho-species of vascular plants were identified from the specimens collected within
the Project area. Only five of the species recorded are endemic to the Solomon Islands.
Three species recorded within the Project area (Calophyllum obscurum, Diospyros insularis and
Gonystylus macrophyllus) are listed on the 2011 IUCN Red List of Threatened Species. A possible
new species of mistletoe (Decaisnina sp.) collected from the Project area may prove completely new
to science.
E4.5.1.2 Fauna
The diversity of fauna within the Project area is relatively high with a total of 93 species recorded
(16 amphibians, 25 reptiles, 47 birds and five mammals). This represents at least 44% of the species
known to occur on Santa Isabel Island.
An overwhelming majority of recorded species (71 species) belong to one of the following sub-
categories: very common, common, fairly common, moderately common and abundant. Two
species recorded, Palmatorappia solomonis (Solomon Islands palm frog) and Nesasio solomonensis
(Fearful owl), are listed on the IUCN Red List of Threatened Species.
The Project area exhibits high endemicity, with 34 of the recorded species and three of the recorded
subspecies found only in the Solomon Islands. The remaining recorded species are native to the
Solomon Islands but are not endemics. One of the species recorded, Bufo marinus (marine toad), has
been introduced to the Solomon Islands.
E4.5.1.3 Protected Areas
There are three conservation areas in the vicinity of the Project area. These have not been officially
declared under National legislation and include:
• Kolarashu River Protected Area (219 ha), which is approximately 1.3 km from the nearest
boundary of Isabel Tenement D
• Janhana/Hohoqle River Protected Area (394 ha), which is approximately 2.3 km from Isabel
Tenement D
• Noihoi River Protected Area (25 ha), which is approximately 1.1 km from Isabel Tenement D.

The key impacts to terrestrial ecological values were considered to include:
• Habitat removal by vegetation clearing and excavation, resulting in habitat transformation and/or
loss.
• Habitat fragmentation, leading to crowding and increased competition among individuals and
species.
• Edge effects, such as microclimatic changes that can cause significant changes to the ecology of
an ecosystem patch.
• Pollution of local habitats (e.g. landfill, waste, sludge and discharge from water and sewage
treatment plants) leading to detrimental consequences for fauna and/or increased scavengers
(including introduced species).
• Overhunting and additional vegetation clearing as a result of population influx.
PAGE 22
• Indirect impacts from increased noise, artificial lights at night, vehicle strikes, fugitive dust
emissions, soil erosion and accidental introduction of invasive species, weeds, feral animals
and/or exotic species.
Mitigation measures to reduce the impacts to terrestrial ecosystems include minimising habitat
removal, modification and fragmentation; minimising indirect impacts from construction and
operation activities; and progressive rehabilitation of completed mine areas to restore ecosystem
function where possible. Large tracts of natural vegetation and habitat areas will be retained as
biodiversity refuges and ecological corridors.
E4.6 Air Quality

The Solomon Islands currently have relatively few sources of air pollution, the main source being
combustion emissions from the burning of solid fuels.
Sensitive receptors to air quality are those places where people work and/or live. The air quality
impact assessment considered 120 villages located within the proximity of the Project area.
The potential sources of airborne pollution, primarily dust, associated with the Project activities are
listed below:
• excavation and screening of ore
• stockpiling and stockpile management of soil and ore
• wind-generated dust from Project roads, exposed soil and ore stockpiles
• wheel-generated dust from Project roads
• loading ore for export.
The key impacts to sensitive receptors were considered to include:
• Amenity impacts from total suspended particles and dust. Preliminary modelling indicates one
exceedence of the amenity criteria being the village of Valaaroe.
• Health impacts due to exposure to fine particulate matter including respiratory problems (such as
coughing, aggravated asthma, chronic bronchitis) and non-fatal heart attacks. Modeling predicts
that three villages will experience cumulative dust concentrations higher than the impact
assessment criteria.
• Health impacts associated with exposure to heavy metals such as arsenic, copper, lead, zinc,
chromium, cadmium and nickel. No heavy metal concentrations are predicted to exceed the
impact assessment criteria.
It is estimated that the Project will contribute average yearly greenhouse gas emissions of
46,237 tCO2-e. This is estimated over a 45 year period to reflect changes to carbon stock during the
life of the Project plus the period required for rehabilitated areas to reach maturity.
Mitigation measures to reduce the impacts on sensitive receptors include minimising dust by
watering work surfaces, minimising the drop height of materials, erecting windbreaks and
maintaining ore moisture above the relevant Dust Extinction Moisture Level.
PAGE 23
Mitigation measures to reduce greenhouse gas emissions potentially include terrestrial and marine
carbon offsetting opportunities which may have positive flow on effects to local village communities.
E4.7 Noise
Sensitive receptors to noise in the vicinity of the Project are village dwellings and schools, places of
worship and medical facilities located in the villages. The existing noise environment in these
villages typically comprises natural noise sources such as birds, insects, human activity, domestic
animals and weather effects. Villages are also exposed to short periods of noise from boats and/or
helicopters accessing the village and the use of small diesel-powered generators. Background noise
levels are typically higher at night due to insect activity.
Noise emissions from mining operational activities are forecast to result in noise levels that exceed
the Project criteria (37 dB) at 28 sensitive receptors across Isabel Tenement D and Isabel Tenement E
over the life of the mine. The affected receptors typically lie within 1.5 km of the proposed
operations.
The most stringent mitigation measures would be required to reduce the acoustic impact from very
high to nil at six villages.
Noise management will be achieved by setting provisions for the selection of quiet equipment,
implementation of quiet engineering solutions and modification of the existing design.
E4.8 Visual Amenity

The existing character of the landscape on Santa Isabel Island in the proximity of the Project area
primarily comprises coastal forest, lowland communities and upslope rainforest. Almost all of the
upslope vegetation is old growth rainforest with tall (approximately 40 m) canopy species and a
dense understory of young trees, palms and ferns.
Sensitive receptors to changes in visual amenity in the vicinity of the Project are the local
communities. These vary in size from small settlements of up to 15 people, typically 3 or 4 family
groups, to comparatively large villages of more than 300 people.
The potential impacts associated with the Project relate to vegetation clearing, other landform
disturbance and the siting of major infrastructure. The visual impact of mine areas, Project
infrastructure and roads on villages will vary substantially according to their distance from these
Project components, the local topography and the extent of vegetation screening.
In the case of the ports, visual impacts may result from the movement and loading of barges and
ships and light spill during night operations.
The visual amenity impact in most village locations has been assessed to be low to moderate. An
exception is Kolomola, which although being situated in a river valley is located close to an ore
deposit that will be subject to mining at some future time.
Views from Takata Bay and Lepi Bay will be dominated by port infrastructure (Port-I1 and Port-I2,
respectively). The visual amenity impact on local people fishing or transiting the area by boat will be
very high but limited to the period of transit.
PAGE 24
Refer to Figure E-4-1 for a graphical illustration of the Project footprint on aerial view from Takata
Bay and Figure E-4-2 for a graphical illustration of the Project footprint from Lilihigna Island.
Strategies to mitigate the impact of the Project on visual amenity and protect landscape values
include minimisation the Project footprint wherever feasible, retaining vegetation to provide visual
screening, a staged mining plan which includes progressive rehabilitation of mine areas, landscaping,
selecting colour schemes for buildings and structures that blend into the natural landscape and low
impact lighting.
Figure E-4-1 Graphical Illustration of the Project Footprint on Aerial View from Takata Bay
Figure E-4-2 Graphical Illustration of the Project Footprint from Lilihigna Island
PAGE 25
E4.9 Waste Management
Waste can be characterised as any solid, liquid or hazardous material that is being discarded by
disposal, recycling, burning or incineration. Waste currently generated on Santa Isabel Island consists
mainly of food waste. Collection systems, recycling efforts and managed waste areas are limited.
Most households dispose of solid waste in their backyards or in the open sea. Waste is also disposed
of through burning.
Wastes generated during the construction and operation of Project may result in the following
potential key impacts to the environment:
• land and water contamination from non-hazardous and hazardous waste spills
• long term changes in land use due to landfill
• impacts to public health and safety from hazardous wastes
• impacts to visual amenity from litter pollution, waste storage facilities and landfill
• loss and disturbance of habitat for flora and fauna, and increase in pest species
• litter pollution, land and water contamination due to inappropriate handling, storage, transport
and disposal of wastes.
Waste will be managed according to the waste mitigation hierarchy, from most to least preferred:
prevention, reduction, re-use, recycling, energy recovery and disposal. A Waste Management Plan
and an Emergency Preparedness Plan will be implemented to ensure proper handling, storage,
transport and disposal of all wastes, and to ensure occupational health and safety issues are
addressed. Contaminant spills will be avoided through appropriate training and design measures,
with any spills immediately contained.
E4.10 Transportation
The existing transportation infrastructure on Santa Isabel Island consists of:
• A network of nearly 40 km of public road which is confined to the southeast part of the island.
Less than 24 km of this network is maintainable as engineered road and the balance is in poor
condition.
• Logging tracks which are relatively widespread across the island, but these are generally not well
constructed and are therefore subject to erosion and deterioration over time.
• Nine wharves, two of which are new and one of which is considered to be maintainable. The
remainder of the wharves are in need of repair or replacement.
• Solomon Airlines provides an air service from Honiara to Fera (Bula) and Suavanao on Santa
Isabel Island.
The construction and operation of the Project requires the movement of ore, goods and materials and
Project personnel. The proposed infrastructure for the Project will be comprised of the primary haul,
mine access, bench access, facility access and service road network and port facilities.
PAGE 26
The key potential impacts associated with the construction and operation of transportation
infrastructure were considered to include:
• Erosion of soil leading to sedimentation downslope of areas cleared for construction of roads.
• Impacts to air quality, visual amenity, vegetation and traffic safety due to vehicle exhaust
emissions and dust generated by the movement of vehicles and equipment.
• Impacts to communities, the workforce and local fauna from noise emissions due to vehicular
traffic and mining and port operations, particularly during night operations.
• Impacts to water quality, ecosystems and communities from hydrocarbon, nickel ore or other
contaminant spills during mining, haulage and shipping operations.
• Traffic conflicts involving vehicles and local pedestrians, or vehicles and fauna, or shipping
traffic.
• Loss of vegetation and fauna habitat from clearing for transport infrastructure.
• Introduction and spread of weeds and plant diseases due to movement of vehicles and
equipment.
• Positive improvements to linkages with air and sea transport.

Mitigation measures to reduce the impacts resulting from transportation infrastructure include
minimising vegetation loss by utilising (and improving) existing logging roads where available; taking
all reasonable and practicable measures to minimise short and long-term soil erosion; watering roads
to reduce dust; fitting vehicles with exhaust muffling devices to reduce noise emissions; provision of
containment and clean-up equipment and dispersing materials to deal with contaminant spills; and
quarantine procedures to prevent the introduction and spread of invasive species.
E4.11 Society and Community

E4.11.1.1 Community Services and Social Values
In 2009, Isabel Province had a total population of 26,158. The people of Isabel Province are largely
of Melanesian descent. They speak local languages which originate from the Austronesian language
family. Most people are multi-lingual; Cheke Holo is spoken by over half the population and while
English is the official national language, Solomon Islands Pijin is more widely spoken. The two main
religions in Isabel Province are Anglican and Episcopal.
Governance is provided through four social institutions; national and provincial government; Isabel
House of Chiefs; clan and village governance; and the church. Policing on Santa Isabel Island is
provided by 23 police officers stationed at the provincial capital of Buala, with some support from
the Regional Assistance Mission to the Solomon Islands (RAMSI).
Health services near the Project area are limited by a lack of medical supplies. More than half of
health workers on Santa Isabel Island (59 out of the 103) are concentrated in Buala hospital. Isolated
villages have difficulties accessing health care facilities due to transportation issues, bad weather and
poor road infrastructure.
Education facilities on the Island include 45 early childhood education centres, 25 primary schools,
three community high schools, two provincial secondary schools and three rural training centres.
Literacy assessments conducted in 2011 showed, of the respondents interviewed, 37.0% were non-
literate, 45.5% were semi-literate and only 17.5 % were literate.
PAGE 27
In rural parts of Santa Isabel Island, the cash economy is largely sustained through local market
trading, cash crop farming, local businesses (such as canteens, trade stores and petrol depots) and
employment in government and the forestry and mining sectors. Currently the cash economy assists
rural people to supplement their subsistence lifestyles and insulate themselves during periods of
economic hardship and poor crop yield.
E4.11.1.2 Land Use and Tenure
Land tenure is defined in terms of tribal or clan kinship and includes tribal and clan boundaries,
customary management of land and seas and the regulation and maintenance of these boundaries.
Land ownership in Santa Isabel Island is based on a matrilocal tenure and kinship system where the
ownership of land is transferred through women. Kastom dictates that tribal and clan boundaries are
defined by landmarks, geography and cultural heritage sites.
The introduction of logging and monetary compensation for the use of land and resources has
required tribes and clans to define their boundaries in terms of Western mapping and geospatial data,
and this need for clearly demarcated boundaries has precipitated inter-tribal and clan conflict. The
process of boundary delineation is currently underway in the Project area.
Customary land uses in Isabel Province include subsistence horticulture, hunting, gathering, fishing,
travel and land use for religious purposes. The main use of land within Isabel Tenement D and Isabel
Tenement E is for subsistence horticulture. The main crops grown include; taro, sweet potato, yam,
cassava, banana, pineapple, coconut, betel nut, peanut, rice, tobacco. The agricultural industry
within the Project area is made up by the cultivation of rice, tobacco, coffee, coconuts and the
processing of copra. There are a number of small plantations in the Project area with coconuts for the
production of copra, tobacco, betel nut, kava and sago plantations the most common.
Roads within the Project area consist of those constructed by logging companies, all weather roads
constructed by non-government organisations, gravel roads constructed through the Solomon Islands
Roads Project and bush tracks. Marine transportation is generally by outboard motor boats and
traditional canoes.
Isabel Province is the second largest producer of export logs in the Solomon Islands. Currently,
logging operations are being undertaken in Isabel Tenement D near Kosisi Village, in Isabel
Tenement E near Midoru Village and Lepi Village and elsewhere in the southeast of Santa Isabel
Island.
E4.11.1.3 Socio-Economic Status and Local Economy
The local economy on Santa Isabel Island is characterised by subsistence activities including farming
(gardening and coconut plantations), small-scale animal husbandry and fishing.
Whilst local people are increasingly engaging in the wage economy, employment levels are still low.
The average total income generated by villages consulted within or near to Isabel Tenement D
ranged from $SBD100 to $SBD5,000 per household per year.
A number of small to medium sized enterprises are operating on Santa Isabel Island including: retail
trade, rest houses, transport, and financial institutions. There are three companies run by the
Provincial Government: the Isabel Development Company (shipping services), the Isabel Timber
Company and the Isabel Development Authority (financial arm of the Province).
Agriculture provides employment mainly through copra plantations. There are seven copra buying
centres on the Island. Kolomola, a village located within Isabel Tenement D (central highlands)
produces coffee which is then shipped to Honiara for further processing. A commercial pineapple
crop has been recently introduced at Koghe near Isabel Tenement D.
PAGE 28
Forestry is also a source of employment; seven logging companies with at least 13 small-scale
sawmills were operating in 2000.
Tourism is in its infancy on Santa Isabel Island. It has much to offer in terms of environmental and
cultural diversity but is hampered by a lack of infrastructure (roads, power and telecommunication),
minimal accommodation options (mainly village stay or small retreats), lack of investment and
marketing.
Some of the main constraints on Isabel Province’s economic development are low literacy levels and
limited access to technical training and higher-level education; accessibility and transport to both
local and international markets; limited knowledge of how to add value to products; and limited
availability and access to financing arrangements.
E4.11.1.4 Public Health
The main health problems affecting villages within and around the Project area are acute respiratory
infection, skin disease, influenza, diarrhoea, malaria, asthma, high blood pressure and diabetes.
There is a hospital at Buala offering 24 hour medical services. Health services are also provided on
Santa Isabel Island through five area health centres, 11 rural health clinics, 14 nurse aid posts and
three school dispensaries.
The importance of safe and clean drinking water is emphasised as it is inextricably linked with the
control and management of water-borne diseases such as diarrhoea. The lack of sanitary toilet
facilities in most villages poses significant health risks.
E4.11.1.5 Workforce and Influx Management
The Project will result in the entry of up to 500 construction workers and up to 600 operational
workers, some of whom will come from overseas locations, as well as an influx of other support and
service personnel. This could result in a population in the Ward of Japuana in excess of 4,000.
The Project has the potential to increase the general standard of living for local residents through
improvements to transport options and linkages; increased training and educational opportunities
leading to the development of new skills; and increased employment, business opportunities and
household incomes. Increased expenditure on local infrastructure, services and programs will also
lead to the improvement of basic health facilities.
The key potential impacts to social values were considered to include:
• Disturbance to daily lives and activities of local villages including elevated levels of noise, dust,
vibration and light spill, and the associated impacts on their lifestyle, food security and long-term
health.
• Social inequality due to differences in compensation for landowners, and differences in earnings
for subsistence farmers and those engaged in wage employment.
• Gender inequality and gender imbalance in the population due to greater proportions of men
than women experiencing employment benefits from the Project.
• Loss of vegetation for social uses such as medicine, housing, craft and other socio-economic
activities.
• Population increase leading to overcrowding, temporary squatter settlements, increased demand

on infrastructure and community services, increased disease and social disharmony.
PAGE 29
• Increased anti-social behaviour, including increased incidences of crime, alcoholism, gambling,
prostitution, sexually transmitted diseases, fighting and other disorderly behaviours.
• Delayed or restricted access to local fishing grounds in the Port area.
The key potential impacts to existing land use and tenure were considered to include:
• Changes to tribe and clan systems and customary land ownership, potentially leading to
fragmentation of the society.
• Increased land disputes and compulsory land acquisition may lead to the dissolution of the
kastom land tenure system.
• Impacts to subsistence horticulture through loss of land area and decrease in soil quality.
• Impacts to hunting, fishing and shellfish gathering, including an increase in demand for fish and
shellfish resulting in a depletion of stocks.
The key potential impacts to socio-economic status and the local economy were considered to
include:
• Change to relative wages leading to increased competition for labour resources across all
industries, which may result in valuable human resources shifting away from forms of
employment which benefit the broader community (e.g., teaching, community services).
• Change to the structure of the local economy due to a shift towards a cash-based economy.
• Loss of area available for gardening or harvesting.

The key potential impacts to public health were considered to include:
• Increases in incidence of diseases resulting in increased demand for health services.
• Accidents and injuries and exposure of workers to solid, liquid and hazardous wastes.
• Health problems due to changes in traditional diet.

SMM Solomon will endeavour to minimise the impact of the Project on the social values, lifestyles
and social norms of the Isabel community and to facilitate the development of the Isabel community
through Project-related opportunities. The opportunities for local people to be trained and employed
by the Project will be optimised.
The impact of workforce influx will be managed by providing Project personnel with housing at the
accommodation camp as part of the Project infrastructure.
Potential adverse health impacts that may result from the Project will be mitigated by proactively
conducting health monitoring and implementing preventative measures for the Project workforce.
Drinking water supply will be provided at the accommodation camp and at staff facilities at the mine
and port areas.
SMM Solomon is committed to working with the government, traditional governance structures and
landowners to address informal influx issues and associated impacts. Collaborations will be
undertaken with relevant organisations including local churches and youth organisations to develop
strategies to minimise anti-social behaviour. The Project will also explore joint initiatives with
relevant organisations and local women to address gender inequality that might arise as a result of
lack of access to Project benefits for local women.
PAGE 30
E4.12 Cultural Heritage
The existing values for the cultural heritage of Isabel Tenement D and Isabel Tenement E include
values for tangible (archaeological) heritage and values for intangible (ethnographic) heritage. During
exploration within the Project area, potential sites of cultural heritage sites were identified but these
are yet to be formally verified. An archaeological survey has been carried out in Isabel Tenement E,
but archaeological survey in Isabel Tenement D has been delayed by issues amongst land owners.
An ethnographic survey is still to be undertaken for both Isabel Tenement D and Isabel Tenement E.
As such, cultural heritage values are not yet well defined.
The key potential impacts to cultural heritage were considered to include:
• irreversible damage of known cultural heritage
• irreversible damage or disturbance of unknown cultural heritage sites (chance finds).
E4.12.3 Mitigations and Management Measures

Mitigation measures to reduce the impacts resulting from loss of cultural heritage include:
• prevention of irreversible damage or disturbance of known cultural heritage sites through the
development of a site significance matrix. This will form the basis of site specific cultural heritage
management
• implementation of a monitoring program to ensure that chance finds are not irreversibly
damaged and/or disturbed as a result of the Project.
E4.13 Cumulative Impacts

The cumulative impact assessment considered the potential for compounding effects of the Project
and other current or proposed projects/activities/industries on the environment, the people and the
economy of Santa Isabel Island.
Three existing industries were identified as likely to produce cumulative impacts when assessed in
conjunction with the Project namely, agriculture, forestry and tourism. There is also the potential for
future nickel mining of mineralised areas located between Isabel Tenement D and Isabel Tenement E
and on the neighbouring San Jorge Island. The fishing industry was also considered in this study but
no cumulative impacts resulting from fishing were identified.
The key potential cumulative impacts (i.e. impacts of the Project combined with existing and future
industry developments) were assessed. These included both positive and negative impacts and
related to environment, social and economic impacts. The potential cumulative impacts are similar to
those considered for Project alone, but are discussed in detail together with relevant mitigation
measures, separately in the EIS.
E4.14 Conservation Strategy

The Project design has, wherever practical, attempted to balance the needs of the development with
conserving or enhancing existing social, cultural and ecological values within and around the Project
area.
SMM Solomon recognises the high conservation values of areas such as the Janhana/Hohogle River
Protected Area and other fishing and hunting grounds which may be potentially impacted indirectly
by Project activities occurring within the same (river) catchment. SMM Solomon is committed to
protecting such areas by:
PAGE 31
• avoiding disturbance to high conservation areas through mine planning
• implementing all practical measures to minimise potential impacts including minimising the area
disturbed by the Project at any one time
• designing progressive and final rehabilitation programs to offset potential impacts.
As more information becomes available, environmental offsets or conservation programs may be

used to address any remaining impacts to areas of high conservation value.
E5. Project Commitments

SMM Solomon, in carrying out the proposed development of mining and associated activities on
Santa Isabel Island for the Solomon Islands Nickel Project will undertake the following:
• Implementation of the mitigation measures, monitoring and reporting outlined in the

Environmental Management Plan (EMP). Refer to Chapter 5 of the EIS.
• Resourcing of the implementation of the EMP monitoring, auditing and reporting requirements.
• Conservation planning in collaboration with stakeholders throughout the Project planning and
development phases including discussion of offsetting measures for loss of fishing and hunting
resources and consideration of surrender of ore deposits if necessary.
• Implementation of erosion and sediment control measures before the commencement of any
construction or operation activities.
• Mining of the ore deposits using a methodology to allow for the commencement of progressive
rehabilitation of completed mine benches (immediately behind the bench currently being
mined).
• Continuous planning and implementation of rehabilitation and revegetation activities for

disturbed areas within the Mining Lease throughout the life of the Project.
• Where the revegetation of completed mine areas does not meet agreed biodiversity outcomes,
previously logged areas within the Mining Leases, of similar sized area, will be rehabilitated as a
biodiversity offset.
• Regular reviews and revision of the Mine Rehabilitation and Closure Plan.
• Ongoing community and stakeholder consultation and communication throughout the life of the
Project.
• Implementation of employee services such as health and education programs and commitment
to developing a training centre and health facilities for employees.
• Collaboration with stakeholders for development of key transport hubs to maximise potential
benefits to the community.
• Collaboration with government and non-government organisations on beneficial environmental

and social programs, where possible.
PAGE 32

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Executive Summary

E1. Introduction ............................................................................................................................................ 1

E2. Project Need and Alternatives................................................................................................................. 7

E2.1 Project Justification and Benefits .................................................................................................... 7

E3. Project Description ................................................................................................................................. 9

E4. Environmental Values and Management of Impacts .............................................................................. 14

E4.1 Weather and Climate ................................................................................................................... 14

E5. Project Commitments............................................................................................................................ 32

E1.1 Project Proponent

SMM Solomon Limited

• Integration of sustainable development considerations in all corporate decisions.

• Continual improvement to environmental and health and safety performance.

• Conservation of biodiversity and integrated approaches to land use planning.

• Implementation of effective and transparent engagement, communication and independently

E1.2 Existing SMM Solomon Activities on Santa Isabel Island

• Isabel Tenement E under Prospecting License no. PL-49/07, 15 km2 in area.

• environmental and social studies including implementation of monitoring programs

• mine planning study by Golder Associates

• facility scoping studies by Hatch and Aker Solutions.

• Inform decision making by:

 identifying existing values (ecological, social and cultural)

 identifying and assessing potential impacts (both positive and negative)

 proposing mitigation measures.

• Promote sustainable development by:

 identifying and minimising key risks and enhancing key opportunities

 developing effective environmental management plans to achieve risk reduction and

The objectives of the EIS are to:

• Inform an environmentally sound and sustainable engineering process.

• benefits to the macro-economy including an increase in the Gross Domestic Product of an

• contribution to increased household income within the Solomon Islands.

E2.2 Project Alternatives

Component Option 1 Option 2 Option 3 Option 4

Figure E-3-1 Typical Siruka Ultramafic Soil Profile

E3.3 Project Components

• The Project general infrastructure areas include the:

 facility and service roads

 accommodation camp (AC-I1)

 water storage facility (WSF-I1)

E3.4 Project Activities

• implementation of sediment and erosion control measures

• establishment of initial Port facilities

• establishment of temporary construction camp and associated infrastructure

• establishment of initial access roads to construction camp and MIA

• construction of accommodation camp, MIA and mine construction infrastructure

• clearing and topsoil removal

• limonite ore mining and saprolite ore mining

• transport and stockpiling of ore at port facilities

 implementation of appropriate erosion and sediment control as required

 spreading of topsoil and application of soil treatment as required

 revegetation through natural regeneration, supplementary planting or provision of an area

• Post-closure maintenance of rehabilitated areas until surrender of mining tenements.

E4. Environmental Values and Management of Impacts

E4.1 Weather and Climate

E4.2 Geology, Geohazards and Soils

• temporary and permanent changes to landform or geomorphology

• loss of soil through erosion

• Sites in Huali Bay and Takata Bay.

The key potential impacts to groundwater were identified as:

• Intrusion of contaminants of potential concern (e.g. hydrocarbons, industrial lubricants, reagents

E4.4 Aquatic Ecology

• the spotted flagtail (Kuhlia marginata), listed as ‘lower risk/least concern’

• the spotted scat (Scatophagus argus), listed as ‘least concern’.