Linking Large Extractive Industries To Sustainable Development of Rural

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Resources Policy 81 (2023) 103322

Contents lists available at ScienceDirect

Resources Policy
journal homepage: www.elsevier.com/locate/resourpol

Linking large extractive industries to sustainable development of rural


communities at mining sites in Africa: Challenges and pathways
Fabien Muhirwa a, b, c, d, Lei Shen a, b, c, e, *, Ayman Elshkaki a, b, c, e, Hubert Hirwa b, f,
Gloriose Umuziranenge d, Kgosietsile Velempini g
a
Key Laboratory for Resource Use and Environmental Remediation, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences,
Beijing, 100101, China
b
University of Chinese Academy of Sciences, Beijing, 100049, China
c
China-Pakistan Joint Research Center on Earth Sciences, CAS-HEC, Islamabad 45320, Pakistan
d
Department of Natural Resources and Environmental Management, Protestant Institute of Arts and Social Sciences, Rwanda
e
Key Laboratory of Carrying Capacity Assessment for Resource and Environment, Ministry of Natural Resources, Beijing, 101149, China
f
State Key Laboratory of Ecosystem Network Observation and Modeling, Chinese Academy of Sciences, Beijing, 100101, China
g
Environmental Education Unit, Faculty of Education, University of Botswana, Botswana

A R T I C L E I N F O A B S T R A C T

Keywords: Even though large-scale extractive industries contribute significantly to revenues in mineral-rich African coun­
Local communities tries, little is known about their effectiveness, and better approaches could align their contribution to the sus­
African governments tainable development of local communities and the environment around their mining sites. This study critically
Sustainable development
reviews the literature on large-scale extractive investments in Africa published between 2000 and 2022 to un­
Extractive industries
derstand their current contribution, challenges, and approaches used to support community development and
then proposes new pathways for better engagement. Findings show that the offer of large extractive industries to
communities is still low, and some are declining over time as technology advances. In many mineral-rich African
countries, the government’s plans to develop local value and diversify economic sources around mining sites
have been ignored or excluded livelihoods for many years and must change. Collaboration, policy coherence,
sustainable investment, and diversification of rural economic sources are proposed as pathways that provide the
necessary bridge to link extractive industry actors to the sustainable development of surrounding rural com­
munities. For this to happen, the efforts of the African countries and related stakeholders are needed to help local
communities to achieve some basic SDGs such as increasing affordable energy (SDG 7), micro-industries, and
innovation (SDG 9), diverse employment (SDG 8), improving knowledge to bring local solutions, and creating
self-sustaining mining systems (SDG 4). The mining companies must also maintain health and safety of com­
munity during and after mining by protecting their land (SDG 15), water quality (SDG 6), life below the earth’s
surface (SDG 14), climate change (SDG 13), and peace and justice (SDG 16).

1. Introduction 30–60% of total exports, up to 20% of government revenues, and up to


10% of national income, which might govern many things in achieving
In the last decade, the large mining industries’ investments have these countries’ SDGs (Hilson and Maconachie, 2020). Collaboration
increased significantly in Africa by international and transnational with large mining companies has shown to be more beneficial in
corporations, and literature confirmed that 58% of new large mines have boosting the economies of mineral-rich African countries than small and
been opened and old mines have been expanded, attracting numerous artisanal mining. One of the advantages is that governments can control
international partnerships and investments (Ahmed et al., 2021; Kimani, this sector’s activities, investments, and taxes and conduct comprehen­
2009). In many low- and middle-income countries, large extractive in­ sive permitting processes before start-ups that are friendly to environ­
vestment already accounts for 60–90% of foreign direct investment, mental protection (Atakhanova, 2021; Hamann, 2003). This contrasts

* Corresponding author. Key Laboratory for Resource Use and Environmental Remediation, Institute of Geographic Sciences and Natural Resources Research,
Chinese Academy of Sciences, Beijing 100101, China.
E-mail address: Shenl@igsnrr.ac.cn (L. Shen).

https://doi.org/10.1016/j.resourpol.2023.103322
Received 26 July 2021; Received in revised form 10 November 2022; Accepted 13 January 2023
Available online 21 January 2023
0301-4207/© 2023 Elsevier Ltd. All rights reserved.
F. Muhirwa et al. Resources Policy 81 (2023) 103322

with small-scale mines, which mostly operate informally and often have Moonsammy, 2021).
operational health and safety deficits that can negatively impact the Mining sector actors in African countries are failing to convert their
health of those involved and are difficult to control (Hilson and Maco­ natural resource endowments into positive and sustainable development
nachie, 2020; Laing and Moonsammy, 2021). outcomes. Much controversy and criticism surround each party’s
In recent years, studies linking extractive industries to the sustain­ inability to deal with mining activities and some have stated that the
able development of rural communities in Africa have largely focused on challenges go beyond the extractive industries themselves (AfDB et al.,
artisanal and small-scale mining activities, with very limited interest in 2017). There is a lack of clear collaboration among mineral stakeholders
the activities of large extractive industries (Hilson and Maconachie, and effective government guidelines. Indeed, attaining sustainable
2020; Nel, 2018). The necessity for extractive companies to the local development requires financially viable, technically feasible, environ­
communities surrounding their mining sites has been highlighted in mentally sound, and socially accountable (Dora et al., 2017). It should
studies and various multi-national agreements (Shen and also demand additional effort, resources, and capacity, all of which are
Andrews-Speed, 2001; Shen et al., 2009). Some existing studies have expected to be provided by the extractive industries. This has sparked
highlighted the need to conduct multiple and varied impact assessments discussion about how mining companies can better align their opera­
prior to permitting mining projects in order to improve current and tions with the Sustainable Development Goals (Lee, 2015a). Several
future practices of these projects and further minimize potential environmental degradation issues (air, water, land, and crop pollution)
long-term impacts on surface and subsurface ecosystems critical to the and health impacts associated with extractive industry activities un­
lives of the surrounding community (Leuenberger et al., 2019; Thondoo dermine the achievement of the Sustainable Development Goals and
and Gupta, 2021). Some of these are Environmental Impact Assessments expose mining areas to pollution issues that must be aligned with spe­
(EIAs) or Health Impact Assessments (HIAs) which have shown their cific engagement activities, assessments, and investments (Leuenberger
effectiveness in aligning the mining sector towards specific SDGs which et al., 2022; Mancini and Sala, 2018).
have shown their effectiveness in aligning mining sectors with certain In general, the absence of effective guidelines and knowledge that
SDGs, such as promoting health (SDG 3), protecting their lands (SDG clearly illustrate the paths that extractive industries should take in terms
15), improving water quality (SDG 6), protecting life below the earth’s of priorities and possible collaboration among all relevant stakeholders
surface (SDG 14), and combating climate change (SDG 13) (Leuenberger is particularly challenging for the contribution that mining should make
et al., 2022; Watt and Lochner, 2021). Many other literature sugges­ to society. Research findings mention that a better understanding of
tions, approaches, and programs are proposed, such as corporate social operational efficiency, practical operations, and collaborative guidance
responsibility (CSR), social licenses to operate (SLO), and sustainable is needed to encourage these extractive industries’ contributions to the
development licenses to operate (SDLO) studies. The SLO and CSR local community’s development goal (Lee, 2015a). Also, other research
programs or approaches help mining investors be aware of their obli­ findings show that there is limited innovation in aligning the contribu­
gations in host partner countries, including the welfare of their sur­ tions of extractive industries. Hallstedt et al. (2013) propose a three-step
rounding communities, and to compensate for any damage their process for integrating sustainability into mining operations: first,
activities cause to the environment or communities (Mbilima, 2021; develop a shared understanding of sustainability; second, coordinate
Raufflet et al., 2013). and integrate sustainability tools and methods into the overall
In recent years, the SDLO has extended CSR and SLO concepts, decision-making process; and third, combine widely used initiatives to
focusing mostly on environmental and sustainable development at aid companies in their sustainability efforts.
various geographical, transgenerational, and spatial levels of areas An analysis of how large mining companies contribute to the Sus­
where mining investments operate (Nyamrunda, 2017; Wostyn, 2019). tainable Development Goals in Sub-Saharan Africa revealed the need for
To date, the SDLO approach has only been studied in a limited number of strong stakeholders’ collaboration, management, and investment pol­
cases. Some interesting studies on the context of the extractive sector in icies and defined the priorities and engagement for everyone (Hilson and
SDLOs and the SDGs have been conducted by UN organizations, such as Maconachie, 2020). Large-scale mining industries are currently being
UNDP’s Mining Mapping 2016 and UNEP, 2019. These studies highlight recognized as models for developing future self-sustaining mining sys­
the potential for large-scale mining investments to contribute to SDG 1 tems for African artisanal and small-scale mining operations. Most of the
(Poverty Eradication), SDG 3 (Good Health and Well-being), SDG 8 current literature focuses on small-scale mining investments rather than
(Decent Work and Economic Growth), SDG 15 (Life on Earth), and SDG large-scale investments, leading to a lack of comprehensive analysis of
16 (Peace and Justice; Strong) (UNDP, 2016; UNEP, 2019). the practices and contributions of large-scale extractive industries to the
Furthermore, the studies that followed these earlier ones call atten­ sustainable development and livelihoods of mineral-rich African coun­
tion to some of their shortcomings in order to paint a clearer picture of tries. This study aimed to assess the current status and challenges of
how mining investors might engage beyond existing practices and large extractive industries’ contributions to the socio-economic and
evaluate the practicality of the proposed SDLO approach and other as­ sustainable development of their surrounding local communities. The
sessments (Idemudia et al., 2022; Laing and Moonsammy, 2021). The study also identifies the interventions and responsibilities of mining
extractive industry began community-supportive commitment several investors, African governments, and other stakeholders in promoting the
years ago, yet not much change has been observed in mineral-rich sustainable development of local communities surrounding mining sites
countries (Lee, 2015b). Many years ago, people continued to face poor and the challenges faced. This study also outlines fundamental pathways
planning of what they expected, a lack of entrepreneurial skills, and of integrating the large mining industry into the Sustainable Develop­
limited participation in these projects based on their land (Franks, 2019; ment Goal (SDG) implementation process in a more effective and rele­
Hilson, 2003). Research shows limited innovation in aligning extractive vant context for African countries by expanding the SDLO approach
industries with socio-economic goals since they have been doing the proposed by the United Nations Environment Programme. (IRP et al.,
same things (building roads, bridges, schools, and other common 2020).
infrastructure) since the 19th century (Selmier and Newenham-Kahindi,
2021). The commitment of large mining investors appears to be volun­ 2. Methodology
tary rather than accountable, resulting in informal agreements. More­
over, both governments and communities hosting these mining The study used the socio-economic benefit-sharing channels illus­
investments often value them based on direct benefits during operation trated in the World Bank study to highlight the benefits the surrounding
with limited predictive analysis of degradation, future community in­ community should receive from the mining investment (Fig. 1).
come sources, job creation, and environmental remediation costs after The systematic review was undertaken to understand the status,
the end of mining activities (Hilson and Maconachie, 2020; Laing and challenges, and potential of large extractive industries for communities

2
F. Muhirwa et al. Resources Policy 81 (2023) 103322

Fig. 1. Socio-economic-benefits sharing mining channels to the community, edited from (Elizabeth Wall, 2011).

around mining activities. The data used was collected from three sour­ and called for poverty reduction and sustainable community develop­
ces, specifically scholarly publications from 2000 to 2022, a strategic ment. In addition, data on the major mining industries operating in
period characterized by numerous global initiatives to promote com­ Africa and their contributions to sustainable community development
munity well-being and the Sustainable Development Goals. These were collected from the Africa Mining website (https://miningafrica.
include the Millennium Development Goals (MDGs) in 2000, the African net). The Mining Africa platform contains updated information on the
Mining Vision in 2009, and the SDGs in 2015, all of which focused on major mining companies operating in Africa, their activities, the

Fig. 2. The primary minerals resources exploited by leading global extractive companies in Africa-rich minerals countries. Source of data: (MA, 2021).

3
F. Muhirwa et al. Resources Policy 81 (2023) 103322

countries in which they operate, and mining discoveries in Africa. Table 1


Overall, 30 companies out of the 40 mentioned were selected based on An overview of research selected for further analysis.
the fact that they are in operation, have more recent programs Author’s name & Year Summary of key Countries Some Extractive
contributing to surrounding communities, and are referenced in some of of publication elements industries
the case studies on major mining investments in Africa (Fig. 2). Lee (2015a) Mususa Projects South Africa, Anglo Gold
Furthermore, the African Mining Law Atlas (AMA) was used to un­ (2012), Barlow Infrastructure Ghana, DRC, Ashanti, PMC
derstand existing community development policies aligned with African (2020), Naumann Sustainable Botswana, parabola
mining sectors (AMLA, 2019). During the selection of published litera­ and Greiner (2017) development, rural Tanzania, GLENCORE,
Jønsson and economy Nigeria Anglo
ture, the Scopus and Web of Science databases were used to consider Bryceson (2017) transaction, rural American’s Plc
documents containing titles related to mining, mineral resources, and Obi-Ani and Isiani transformation,
Africa, which initially included 285 documents. Additionally, to ensure (2020) Marais et al. township
the relevance of documents that are relevant to the study objectives, the (2020) Marais et al.
(2018) Admiraal
selection criteria were rigorously reviewed for documents containing
et al. (2017) Bloch
terms such as “rural communities,” “rural areas,” “large-scale mining,” and Owusu (2012)
“sustainable development,” or “rural utility” in their titles, abstracts, or Gapa (2016) Gwebu Community Botswana, DEBEERS,
keywords, resulting in 57 documents for further analysis (see Table 1). (2012) Kansake investment and Ghana, South Anglo Gold
In the next step, the data was analyzed using MAXQDA software, et al. (2019); Lawer stakeholders’ Africa Ashanti, Rio
et al. (2017) van der participation Tinto
which allows systematic and qualitative analysis of the collected data Merwe (2011)
and exploration of content analysis of text passages relevant to the Mnwana (2014)
reviewed documents (Oliveira et al., 2013). This was done by coding the Mbilima (2021)
key elements of the benefit-sharing channel shown in Fig. 1 in two ways: Dora et al. (2017)
Maponga and Musa
one for automatic coding that aimed to analyze and determine the fre­
(2021)
quency of each key element that expressed its relative importance in the Hilson et al. (2019), Employment DRC, Anglo-American
total of all assessed documents (Muhirwa et al., 2022). A second analysis Chanakira et al. Tanzania, gold, Rio Tinto’s
was performed with manual coding, reading each publication’s abstract, (2019), Mtero African
findings, debates, and conclusions to get the explicit contents of the (2017) Amusa and countries,
Abimbola (2019) Zimbabwe,
message from the reviewed authors (Muhirwa et al., 2022). A content
Botswana
analysis was conducted on this occasion, with special attention given to Sovacool (2019), Revenue sharing, Ghana, DRC Newmont
coding information displaying the authors’ benefits, efforts, experi­ Aragón and Rud Land resettlement Company and
ences, difficulties, policies, and recommendations to the mining (2016), Asuah and and compensation, Anglo-Gold,
Ankoye (2016) Ashanti
industry.
Garvin et al. (2009)
The arrows and words in green show the direct positive impacts of Leuenberger et al.
mining investments on the community, the words in black show some (2021b)
indirect positive impacts, while the words in red show the negative Claasen and Roloff Capacity, building, South Africa, Rio Tinto,
impacts caused by large extractive industries investments on commu­ (2012), Leeuwerik Implying socio- Ghana, DEBEERS
et al. (2021), economic and Namibia
nities and the environment in rural African countries (see Fig. 3).
Littlewood and community-based
Russon (2017), principles
3. Findings & discussion Kapelus (2002),
Abraham et al.
(2018) Dino et al.
3.1. Reviewed research characteristics
(2022) Musiyarira
et al. (2021) Laterza
The results presented in Table 2 demonstrate the characteristics of and Sharp (2017)
the 57 articles reviewed in this study in three different variables: the Afrane and Appah
methods applied, the countries of the case studies, and the main content (2016)
Tirima et al. (2018) Mining and DRC, Nigeria, GLENCORE
of the study. The study results show that South Africa is the dominant Edwards et al. Environmental Africa
country in research of large extractive studies, accounting for 25% of all (2014) Antwi et al. Management
studies reviewed in Africa. Ghana, Tanzania, Nigeria, and DRC are also (2017) Sesele et al.
among the top five countries, with 18%, 8%, and 7%, respectively. The (2021) Huizenga
(2019) Atal (2017)
results also showed that 33 out of 57 studies (58%) are conceptual, while
Tarras-Wahlberg
the remaining 24 are empirical studies 42%. et al. (2017) Spiegel
In addition, many case studies were also conducted through ques­ (2009)
tionnaires, interviews, and focus group discussions to better understand Sovacool (2021) Mining and DRC, Nigeria, GLENCORE, Rio
the views of the community, policymakers, and investors on the rela­ Dooyema et al. Occupational East and Tinto, Qaondo,
(2012) Wilson et al. health and safety Southern Anglo-Gold,
tionship between large mining company investments and local com­ (2020) Obiri et al. issues of employees Africa, Ghana Ashanti
munity support. Very few experimental or laboratory-published studies (2006), Anaf et al.
are recorded in the large extractive activities in Africa. Only two case (2019) Rice et al.
studies were reported; one examines the impact of mining waste on (2022) Leuenberger
et al. (2021b)
human health and the other on improving the quality of mineral pro­
Leuenberger et al.
duction processing in Africa (Barlow, 2020; Obiri et al., 2006). The re­ (2022)
sults on the content and main objectives of the studies show that the Sovacool (2021) Governance, DRC, DEBEERS,
largest number of studies (21 cases) were conducted on governance is­ Dooyema et al. insecurity & Zimbabwe, GLENCORE,
sues; other cases, such as health, employment, and SDGs, have also been (2012) Wilson et al. conflict, corruption Botswana, DEBSWANA,
(2020) Obiri et al. Policy Africa, Ghana AngloGold
of great concern with 13, 8, and 5 case studies, respectively. For (2006), Tetteh et al. management Ashanti’s
instance, two case studies focus on environmental and ecosystem issues. (2015) Watt and
The approach to integrating the mining sector into the SDG process was (continued on next page)
also discussed in two case studies, given the necessary policy, including

4
F. Muhirwa et al. Resources Policy 81 (2023) 103322

Table 1 (continued ) community expects from the large mining sector. Positive experiences
Author’s name & Year Summary of key Countries Some Extractive with the role of the mining industry in employment interventions have
of publication elements industries been observed around mining sites in Botswana, where the sector has
Lochner (2021)
been able to generate one in twenty jobs (RIIA, 2015). Tanzania’s
Campbell et al. mining sector has successfully employed many local communities, set up
(2017) Dauda revenue sharing for the community living areas adjacent to the mining
(2020) Marais operations, hired 7000 workers directly from mining companies, and
(2013)
also influenced the community to create more than 1000 jobs related to
services needed by workers (Hilson et al., 2019). In South Africa, a study
Marais (2013) study on operationalizing mine closure with sustainable showed that Anglo-American mining companies had helped 1885
development initiatives. Predictive analysis of future rehabilitation companies employing over 38,000 people and small citizen investors
costs, environmental and health issues in the community, alternative job build their own successful small to medium-sized enterprises (SMEs)
creation, and infrastructure investments at mined sites also showed over the past 15 years (Hilson and Maconachie, 2020).
critical areas of research (Sesele et al., 2021, 2021van der Merwe, 2011). The statistic from 2017 showed that African countries are among the
Furthermore, quantitative coding of topics of benefit-sharing chan­ top global countries benefiting from mining sector activities in terms of
nel words (Fig. 4) showed that employment has the highest frequency of job creation. For example, a study showed that the Democratic Republic
115 times in the document corpus we analyzed. of Congo, Ethiopia, Ghana, Burkina Faso, Zimbabwe, Sudan, and
Scholarly perceptions of government accountability for community Tanzania were ranked in the top 10 countries with a large number of
support are also critical, with frequency highlighted 96 times. Almost all employees in the mining sector, after India, China, and Indonesia in
documents reviewed mention project infrastructure and support for 2017 (Delve, 2020). The study shows that 8.9% of people in the Dem­
local investments, capacity building, and offsets. Despite the positive ocratic Republic of the Congo depend directly on mining employment
effects, academics expressed the points of increasing violence, envi­ for their income (Delve, 2020). The DRC employs more than 20 leading
ronmental issues, and health issues, which appeared 144 times, 92 global companies, and more than 14 mineral resources and oil are
times, and 61 times, respectively, in the total word corpus of the exploited across the country (Kyba et al., 2019). In one region of
documents. Mozambique, more than 3000 direct and indirect jobs, of which at least
50% were for women and 25% for young men, were created by the
extractive sector in the mining areas (SAIIA, 2021).
3.2. The author’s views on the benefits channels from large extractive Other than the positive impact of large-scale mining investments,
industries compared to small-scale mining and artisanal employment, large-scale
mining investments generate very few direct benefits for local commu­
The results revealed numerous benefits, responsibilities and chal­ nities, particularly job creation, despite increased community benefits
lenges that large mining industries could bring to the community and (Hilson and Maconachie, 2020) (see Table 3). Statistics, for instance,
their environment based on those shown in Figs. 1 and 4. showed that large mining investments provided jobs for 7 million people
directly and 35 million indirectly, while small mining and artisanal in­
3.2.1. Employment benefits channel dustries provided jobs for 44 million people directly and 150 million
The employment benefits sector is well known as the main benefit indirectly worldwide, with the majority of the jobs being in African
expected by the community surrounding the mine sites. Eight manu­ countries (IGF, 2018). In some cases, the local community explained
scripts were discussed in the context of employment-related contribu­ that most small-scale artisanal mines are owned by themselves or by
tions and challenges. In Fig. 4, the automatic coding of frequent words community cooperatives, but large-scale foreign mining investments
presents employment as the main benefit that the surrounding mining

Fig. 3. Framework of the impact of large-scale mining companies on the development of surrounding local communities.

5
F. Muhirwa et al. Resources Policy 81 (2023) 103322

Table 2 investment, while these large-scale mines, with their efficient use of
Contexts, methods, and themes extracted from articles reviewed. technology, are leading to a decline in employment and hiring condi­
Country Case studies Percentage tions. The issue of job decline in large extractive industries is dominant
in Ghana; a study showed that companies such as Newmont reduced and
South Africa 18 25
Ghana 13 18 cut 600 jobs in 2019, and many employees lost their jobs in Ghana’s
Tanzania 6 8 mining industry from 2013 to 2016, from 21,103 employers to 12,382 in
Nigeria 5 7 2019 (Hilson et al., 2019). AngloGold Ashanti’s 6500 employees lost
DRC 5 7 their jobs in Obuasi (Ghanaweb, 2015). The government also reported
Mozambique 3 4
Botswana 3 4
declining employment in the sector, saying that more than 10,000
Southern Africa 3 4 miners, particularly Ghanaians, had lost their jobs (Hilson et al., 2019).
Sub-Saharan 3 4
Namibia 3 4
Zambia 2 3
Africa 2 3
East Africa 1 1
West Africa 1 1 Table 3
Zimbabwe 1 1 An overview of large mining industries versus artisanal and small mining op­
Cameroon 1 1 portunities sectors.
Gabon 1 1
Burkina Faso 1 1 Sectors Artisanal & Small Mining Large Extractive Industries
opportunities
Method Case studies
Conceptual 33 58 Investments Low investment dominated by High capital with modern
Empirical 24 42 traditional level easy to assess investment
Qualitative 9 8 for the local community
Quantitative 12 11 Creating jobs High benefits for the Minimal jobs offering and
Mixed 11 10 community with all skills level focused on skilled people
Revised literature 25 22 Land Demand Low demand for land, high risk High demand for land, high
of environmental degradation deforestation, and substantial
Mains Content environmental degradation in
Governance 21 37 some countries with weak
Employment 8 14 governance
Economic diversification 3 5 Licensing/ Mostly informal Fully licensed
Environment 2 4 Legal status
Health 13 23 Workplace Critical and dangerous Improved working
Prediction 3 5 environment
SDGs 5 9 Conflicts Limited conflicts between Many conflicts with investors
Implementation process 2 4 Environment community Poor Large degraded environment,
environmental management toxic waste but monitored by
and pollution and hard to governments and other experts
prevent them from freely accessing their resources, causing a significant control, and no established and improved post-mining
loss of jobs and more conflict and aggression between the community measure for post-mining land land-used
use
and the mining investors (Bezzola et al., 2022).
Revenue to Very low and inconsistent High revenue
The communities are concerned about the increased policing and Government revenue
burning of artisanal mining sites in favor of increased foreign

Fig. 4. The frequency of the top words in the document corpus for the benefit channels and challenges of large mining investments to the community.

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F. Muhirwa et al. Resources Policy 81 (2023) 103322

3.2.2. Projects infrastructures, capacity building, local beneficiations and Table 4


compensations channels Contributions of large Extractive Industries to community development in
Over time, since the 1980s, mining projects in Africa have developed Africa.
the infrastructure necessary to develop local communities, creating Extractive Mining areas Some areas Year Implication
many typical mining towns or sometimes towns open to non-mining Industries Supported
residents. This settlement system was dominant until the early 2000s, British Cape South Africa Regional 1882 Kimberly rural
with high-density complexes for black miners (Marais et al., 2020). Colony Electricity transformation
Along with the increased mobility of people, some companies are and the first
African city with
helping countries and communities strengthen their labor markets,
electric street
particularly in communities living near mining sites (Amusa and lights
Abimbola, 2019; IMF, 2018). For many years local communities living Canadian gold Local Buy buying goods
near mining sites have benefited from the mining industry’s investors in mining production community and services in
multiple ways (see Table 4). company facilities in sellers, rural sellers. Link
West Africa, cooperatives with TFO Canada
Numerous municipalities have constructed many storage facilities, (a non-profit
warehouses, machinery, hotels, restaurants, and businesses for selling export promoter)
and purchasing (Hilson et al., 2019). With mineral resource potential teaching on how
and investment, railways and modern roads are becoming more acces­ to make soaps
London-based Health issues Support
sible and connecting many towns, such as Kathu in South Africa,
companies during the medicine,
Katanga in the DRC, and Mapela in Botswana (Parida, 2014). The rural operating Ebola pandemic vehicles, and
lifestyle has improved in many regions of the African mining sites with trained
the establishment of commercial stores and banks, and many artisans, employees
such as bicycle repair shops, auto mechanics, and photographers, have the German Sierra Leone Education 2012 Established a
Development TVET program
found work (Gwebu, 2012; Hilson et al., 2019). For example, in
Corporation and promote
Tanzania, especially in the mineral-rich regions of Geita, Mwanza, (GIZ) citizens people
Ruvuma, and Shinyanga, women are opening restaurants and growing partnered graduated to that
small businesses, including craft (Jønsson and Bryceson, 2017). In with London programmer to
Mining become senior
Nigeria, the discovery of coal deposits brought local and international
staff of mining
immigrants to many rural areas, which were transformed into townships activities of the
as a result of mining activities, such as Port Harcourt, Enugu, and Kadun countries
after the discovery of coal at Udi Hill in 1909 (Obi-Ani and Isiani, 2020). Anglo- In South support to build 2012 Supported 1885
Many capacity-building initiatives have been established, such as American Africa of their own companies are
Mining successful small employing over
Newmont Goldcorp, Goldfields, and AngloGold Ashanti have trained
companies to medium 38,000 people in
their employees in various skills, hoping they will be able to use them enterprises the last 15 years.
once the mining project is completed (Oppong and Andrews, 2020). In (SME.)
Tanzania, extractive investors have helped foster local food procure­ Vale and Mitsui Mozambique Infrastructure Railway tracks
coal mining and constructs
ment through a coal mining project in Ruvuma province. Studies gave an
help transport
example of Canadian companies deciding to buy some of the basic companies’ coal,
products and services needed for their operations from nearby local and different
businesses and vendors and teach soap-making to the local community national goods,
as part of building capacity. Some studies have shown that the inter­ including
agriculture
vention of mining industries in communities by strengthening their
productive of
health infrastructure and protection capacity has transformed their rural people
health, economic and environmental development (Leuenberger et al., De Beers’ Botswana Business and 2011 By adding
2019, 2021a). London- Economy professionals,
based rough skills, equipment
Mining investors also recognize that once the community is resettled
diamond and Technology
with adequate and fair compensation, it can help improve their lives. For to the diamonds
example, in many countries where the Anglo-American gold industry resources of
operates, it has agreed to pay the equivalent compensation and add Botswana added
other funds to the local government to encourage local investment. This $6 billion
annually in 2014
company has also been willing to purchase local mine site products and
from $ 1 billion
provide support services that help people living near mine sites stay before
healthy (Kimani, 2009). Similarly, the Newmont Company and GLENCORE DRC Limit Illegal 2017 Supporting local
Anglo-Gold Ashanti spent large amounts of money not only to resettle (Coal, copper, artisanal cooperatives for
people but also to help them maintain their livelihoods by providing Gold, mining sustainable
aluminum activities development
seeds, fertilizers, and other agricultural products, as well as supporting etc). income (Krutikov,
infrastructure, commercial houses, and schools in Ghana (Ashanti, 2014; 2017)
Hilson et al., 2019). AngloGold Ashanti adheres to the reclamation se­ Harmony Gold South Africa Health cares 2020 Deliver 2900 food
curity agreement signed with the Environmental Protection Agency Mining about COVID- parcels, 6750
Company 19 “care kits,” and
(EPA) and agrees with community about procedures and processes in the
6750 face masks
company’s activities that may support them in mitigating some mining distributed in 7
impacts by developing strong infrastructure (Tetteh et al., 2015). municipalities in
three host
3.2.3. Government support and responsibilities channel provinces (
Harmony, 2020).
The implications of African governments’ actions on the sustainable Zimbabwe 2019
development efforts of their communities around mining sites are dis­
(continued on next page)
cussed in more than 18 case studies. In particular, the findings remind

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Table 4 (continued ) Table 5


Extractive Mining areas Some areas Year Implication
A view of community development policies established in some of the richest
Industries Supported mineral countries in Africa.

ZIMPLATES Disaster/ Assistance to the No Country Policies related to community development


Company Cyclone, Health cyclone-affected 1 Algeria For surface tax payment into the local authorities’
and the fight common fund and the communes’ benefit and fix
against cholera related rates of these quotas (Art.142)
and the 2 Democratic Republic Define socio-economic and industrial development
refurbishment of of Congo projects for the local communities affected by the
the Kadoma mining activities based on the living conditions of the
General Hospital ( communities and approved by the provincial
MA, 2021) government after advice from the technical services
(Art. 285).
3 Ghana Designate that area for small-scale mining operations
decision-makers of their responsibility and obligation to protect the and specify the mineral to be mined. Established in
health, welfare, and environment of communities living near mine sites. every designated area Mining Committee that
The study showed the need for the collaboration of mines and local effectively monitors promotes, and develops mining
operations in the designated area (Chapt 12).
governments to align the social and labor plans (SLPs) of mining com­ 4 Guinea Develop an agreement between the mining investor
panies with the integrated development plans of municipalities and local and the local community residing on or near their
content requirements (Watt and Lochner, 2021). A study also demon­ mining title or concession. Protect the environment,
strated that governments are required to align extractive mining in­ the health of the population, and the development
processes of socially oriented projects. Support local
vestments with policies envisaged on direct or indirect impacts from
development funds and all local community
extractive activities through empowering impact assessment procedures development agreements (Art.130).
and monitoring platforms (Cossa et al., 2022). For example, EIA and HIA 5 Nigeria Ensure the social and economic benefits transfer to
have been shown to have positive impacts on the sustainable develop­ the community (educational scholarship,
ment of communities in mining areas by enhancing synergies for the apprenticeship, technical training, and employment
opportunities for indigenes of the communities).
environment and health of the ecosystem surrounding mining sites and Assist the community in developing and supporting
reducing trade-offs in the expected socio-economic and environmental small-scale and micro enterprises and agricultural
benefits to the community of mining sites (Leuenberger et al., 2021b). product marketing (Chapt 4).
The Moffat Kieren et al. (2016) study suggests that the permitting 6 South Africa Expand opportunities for the local community,
including women and communities, to actively
process for extractive industry projects should assess the nature of the
participate in the mineral and petroleum industry
projects, the post-project objectives and impacts, the people involved in and benefit from exploiting the country’s mineral and
the permitting assessment, the implementation commitments, and the petroleum resources (chapter 2).
monitoring put in place for the projects until completion. Along with 7 Zambia Engage in the implementation of the local business
policy needs, the development of new government policies and laws development covenant attached to the mining permit
and promptly pay the owner or user fair and
must promote the productivity of mining revenues in the national reasonable compensation for any interference with
economy and the well-being of communities (Yager, 2015). In Table 5, the owner’s or user’s rights and any damage caused
for example, the new mining law of March 9, 2018 (No. 18/001) in the to the land surface by the added operations (part 15)
DRC shows some interest in how the surrounding communities should 8 Zimbabwe Requiring each miner at a registered mine site, or
class of miners, to pay a specified amount at specified
benefit from or support achieving the SDGs. Ghana’s mining laws for
intervals to a local authority where the registered
2018 reflect an intention to link local and domestic mining sectors with mine site is located. Payment of a lump sum or a
foreign mining to increase knowledge and technology (Ananeh-­ percentage of the production value from the mine site
Frempong, 2021). for community revenue sharing (Part 15).
The Amusa and Abimbola (2019) study in Botswana shows that the Source: Atlas of African Mining Legislation (AMLA, 2019)
government is aligned with increasing the effectiveness of public in­
vestment in economic growth. In South Africa, legislation requires
transparency in the mining sector and positively contribute to the
mining companies to produce Social and Labour Plans to address local
community (UNDP&UNEP, 2018).
developmental concerns (Marais, 2013). Most of the reviewed studies
highlighted sustainable programs proposed to contribute to the equi­
3.3. Challenges of large extractive industries investment to the local
table management of mining activities as voluntary initiatives that do
community
not always fit the agenda of mining companies and require revised
government policies to strengthen (Marais, 2013). Keeping this in mind,
Despite the benefits that local communities derive from mining, they
the government needs to clarify these community support programs and
are also more likely to face the challenges posed by large-scale extractive
standardize their implementation processes, assessment procedures, and
industries, such as loss of community land ownership, conflict, and the
incentives (Hilson, 2012; Idemudia et al., 2022). An extractive
environment, than by small-scale and artisanal mining (et al., 2017;
industry-led development manifesto has been released as part of the
Hilson and Maconachie, 2020). Challenges that affect community life,
Africa Mining Vision (Hilson, 2020).
the environment, and the ecosystem around extractive operations are
The Global Extractive Industries Support Program (GESP) also em­
paramount challenges during and after the end of mining investments.
phasizes the need for mineral-rich governments in developing countries
The results show that conflict and violence, environmental degradation,
to ensure that tax revenues generated by mining are used appropriately
and health problems are the main challenges cited in all the papers
to create alternative sources of income for communities surrounded by
reviewed 144 times, 92 times, and 61 times respectively (Fig. 4). Many
mining activities rather than making them solely dependent on these
researchers have shown how mineral-rich countries faced critical so­
activities (Busia and Akong, 2017). Research on transparency and pol­
ciopolitical challenges, which impacted more local communities living
itics in Ghana’s extractive industries concluded that achieving sustain­
near mining sites. These include conflict and violence, deprivation,
ability and transparency is fundamental to reducing corruption, conflict,
emotional stability and abuse, public destruction, dislocation, an in­
and illicit mining (Oppong and Andrews, 2020). On the other hand, the
crease in several diseases that worsen the situation of most local com­
capacity building of government institutions should promote
munities due to high healthcare costs, and persistent poverty (Maier

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et al., 2014; Magombeyi and Odhiambo, 2018). (Leuenberger et al., 2021b; Rice et al., 2022).
The insecurity challenges are prevalent in most rich mineral African Large mining companies use extensive land extraction, resulting in
countries, and most of these countries are classified in a red zone of land loss and agricultural productivity loss for communities. A study of
conflict-affected and high-risk areas (CAHRAs) facing armed crises, the impact of large mining industries on the agricultural production
widespread conflicts, or other harmful threats to the community function found that farmers near mines experienced a relative decline in
(Fayiah, 2020). The poor implementations of different supporting total factor productivity of almost 40% in recent years in Ghana (Aragón
community programs such as EITI, CSR, SDLO, SLO, and local content and Rud, 2016). The need for land is enormous, and studies have shown
requirements (LCRs) are questionable and highlight the source of con­ that one large-scale mining project in Ghana could displace more than
flicts. For example, a more recent study found that many mining-related 3301 people. (Udelsmann Rodrigues, 2017). Large-scale extractive in­
conflicts in Africa are more prevalent in areas where social-economic dustries are causing a greater amount of forest loss than small-scale
mining programs are implemented than in areas where they are not. mining, and some countries, such as the Democratic Republic of the
(Bezzola et al., 2022). In some cases, this is caused by delayed imple­ Congo and Zambia, are more vulnerable to mining-related deforestation
mentation of measures, poorly implemented policies, or a lack of local (Dauda, 2020). Also, large extractive investors offer very few jobs
community involvement and participation. The results revealed some compared to the small, artisanal mining industry, especially for un­
critical challenges faced by the local community, such as unequal skilled rural communities living near their mining sites. This was
accessibility to development, a lack of affordability capacity, and poor approved in many studies reviewed, including studies such as IGF
sharing of revenue from mining, which provoked conflicts and the (2018) Bezzola et al. (2022) or other case studies such as a study by Shen
establishment of some army groups (Eze, 2021; Obi-Ani and Isiani, and Gunson (2006) on the role of small mining in China or global studies
2020). (Sidorenko et al., 2020).
Furthermore, challenges are observed in the economic benefits of
mining activities to the local community, which are minimal, increasing 3.4. Proposing sustainable development pathways
even in the periods surrounding the start-up phase and then decreasing
by the day, while the negative externalities continue to increase (Chu­ 3.4.1. Sustainable development from cooperation and policy coherence
han-Pole et al., 2017). This is the case for the South African mining In the following session, propose some possible sustainable devel­
towns of Gamagara, Ga-Segonyana, Lephalale, Matjhabeng, and Rus­ opment pathways that can overcome the challenges of large-scale
tenburg regions, which were established in the early 1990s and expe­ extracted investments discussed in the previous parts by considering
rienced a sharp increase in population density as economic growth rates three possible pathways of cooperation and policy coherence, sustain­
were volatile over time, and later people failed to keep maintaining the able investment, and diversification of rural economic sources away
viability of these towns while the mining projects ended (Marais et al., from extractive activities. The cooperation and policy coherence for
2018, 2020). Also, research findings mentioned the moral will of sustainable development was developed along with the proposed Sus­
extractive industries to implement decisions that are not in the interest tainable Development License to Operate (SDLO) framework of the In­
of their shareholders (Kapelus, 2002). ternational Resource Panel and the United Nations Environment
Environmental and human health issues also pose considerable Programme (UNEP) (IRP et al., 2020). This SDLO was designed as a
challenges for the large African extractive industries, particularly when normative point of reference for the multiple actors involved in the
practitioners reject policies to enforce strict environmental and health extractive sector to support their efforts to work together in a way that is
regulations and assessments (Anaf et al., 2019; Leuenberger et al., consistent with the SDGs (Fig. 5).
2021b). The mining activities have potential negative impacts on the The new approach proposed in Fig. 6 responds to the lack of
natural environment, whether large-scale industrial or small-scale arti­ awareness among stakeholders of the priority SDLO goals, activities, and
sanal mining, which are extreme and keep increasing based on the size commitments that they should incorporate into their community con­
of the operation and the infrastructure required to extract and transport tributions and support them in achieving the SDGs. At this point, Fig. 6
the potential minerals. Some environmental issues are reviewed; for shows that the public sector has a more significant role in redesigning
example, air pollution in the vicinity of the mining industries in Ghana policies to support individual stakeholder contributions and partner­
has increased the incidence of cough diseases in the nearby community ships among different stakeholders by aligning different stakeholders
(Aragón and Rud, 2016). More than 100,000 workers in gold mines in into the same understanding of policy coherence and global partnership
Ghana showed in 2006 that they were likely to have contracted or been (SDG 17). Participation of stakeholders in a benefit-sharing channel is
exposed to cancer through oral or skin contact from AngloGold Ashanti oriented around two dimensions: enhancing community development
mining activities (Obiri et al., 2006). Another study in South Africa and mitigating mining-related negative impacts.
showed that women miners died at a significantly younger age on For enhancing engagement, actions or agendas of all stakeholders are
average (44 years) than all women and male miners (Wilson et al., welcome to be aligned with specific SDGs related to promoting decent
2020). work, especially in ways that indirectly raise investments in multiple
A subsequent study of 800 mines in 44 developing countries domi­ sectors (SDG 8), which are shrinking over time in local communities that
nated by African countries found a 3–10% increase in anemia and live near large mining investments. The strengthening of common eco­
stunting in women and children living in mining communities (Von der nomic infrastructure (SDG 9) is also noted with an emphasis on the
Goltz Jan, 2019). Dooyema et al. (2012) and Tirima et al. (2018) studies affordability and sustainability of economic, environmental, and social
have shown an outbreak of lead poisoning that has killed 400–500 infrastructures that may keep supporting the community even after the
children and affected thousands more due to food contamination with completion of projects. In Fig. 6, the enhancement of engagement of the
chemical waste from artisanal gold mines processed by households in SDGs mentioned is in line with several studies reviewed on the impor­
Nigeria. Children as young as five (mostly boys) work in African mines tance of promoting infrastructure that promotes water, energy, and food
instead of joining school; for example, in Sierra Leone, many children security (SDGs 6 and 7) in the rural community (Leuenberger et al.,
die in accidents every year due to a lack of safety standards (Fayiah, 2022; Watt and Lochner, 2021). The enhancement of engagement is also
2020; Kouame et al., 2015). Pollution of soil quality, water, and biodi­ shown in capacity building, which helps communities gain knowledge in
versity living on and beneath the planet’s surface is common in mining natural resource management and other sciences, including health sci­
site environments. The challenges of community health issues around ences (SDG 4). The study found that the potential for developing the skill
mining companies are observed in many parts of Africa, such as HIV, set required for future mining operations, the knowledge that brings
tuberculosis (TB), and substance abuse, which were found to overlap in local solutions, and self-sustaining mining systems that improve the
the study communities in terms of risk, burden, and underlying factors productivity, safety, and efficiency of mining in these countries has yet

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Fig. 5. The SDLO Framework, modified from the International Resource Panel, United Nations Environment Programme (UNEP) report (IRP et al., 2020).

to be defined in many African countries (Kansake et al., 2019). activities resulted in high rehabilitation costs that were close to the same
Fig. 6 also indicates the many tasks that stakeholders should engage profit earned during mining, which suggests the mining investors take
in for mitigation activities that can affect land, water, climate, com­ on the risk of their damage (Diogo et al., 2017).
munity peace, production, and consumption from mining activities. It is On the other hand, many studies, including those of the Africa
encouraged that stakeholders collaborate to reduce wastewater gener­ Development Bank, mentioned that Africa’s mining-rich countries failed
ated by mining activities by supporting various water resources man­ to transform their natural resource endowment into positive and sus­
agement activities (SDG 6). The threats to aquatic biodiversity (SDG 14), tainable development outcomes (AfDB, 2017; Campbell, 2010). Thus,
greenhouse gas emissions and the resulting climate change (SDG 13), governments are required to use mining revenue to integrate multiple
conflict and violence (SDG 16), and the waste of natural resources need economic sectors and build capacity, as well as invest in mine sites with
strong networks and investment from large extractive sector stake­ a focus on developing infrastructure, utilities, and economic activities
holders. The outcome of aligning stakeholders’ engagement in that can support non-mining employment or livelihood opportunities for
enhancement and mitigation activities can ensure the community re­ the surrounding community after mine closure investment rather than
duces poverty and hunger, promotes health, and increases the economy waiting for investor contributions (Fig. 7).
to achieve sustainable development goals in Africa. Besides that, a partnership is needed between the government,
mining investors, and other stakeholders to ensure sustainable
3.4.2. Applying a sustainable investment pathway employment, transparency, security, and fairness in the mining sectors.
The practicality of the framework illustrated in Fig. 6 is also sup­ The ability to cope with the ongoing stress and recover from post-mining
ported by the additional proposal for accountability of key stakeholders activities seems daunting, as the community has not been built in a state
illustrated in Fig. 7. Fig. 7 shows that mining companies and govern­ that would allow it to recover quickly from the damage caused by
ments need to invest more holistically, taking into account negative mining activities (Asuah and Ankoye, 2016). It is also needed between
impacts and addressing socio-economic issues that promote the well- the government, mining investors, and other stakeholders to ensure
being of the surrounding community. Fig. 4 shows the responsibilities sustainable employment, transparency, security, and fairness in the
allocation that mining companies must invest in the health, safety, and mining sectors. The ability to cope with the ongoing stress and recover
environment of local communities and workers. It is in line with some from post-mining activities seems daunting, as the community has not
suggestive studies, such as Rice et al. (2022) which emphasize the built the capacity that would allow it to recover quickly from the
importance of identifying local health needs, prioritizing SDG 3 and damage caused by mining activities (Hilson et al., 2019).
environmental goals, and intervening in climate action. Also, a study in
the East African region on colt mine rehabilitation found that mining

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Fig. 6. Proposed framework for integrating large mining industries into cooperation and policy coherence in SDGs.

Fig. 7. Applying sustainable investment pathway between government and mining investors.

3.5. Local economic diversification pathway and economic transformation should consider the rural-urban relation­
ship in investment and treatment. This study recommends a rural
Lastly, local value and investment diversification are critical path­ transformation model that could help the local community develop
ways (Bloch and Owusu, 2012). The achievement of rural development businesses or projects that could grow faster than others through three

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F. Muhirwa et al. Resources Policy 81 (2023) 103322

sub-pathways. growing environmental and health problems. Similarly, the pathways


proposed can help policymakers identify the most effective types or
• Promotes and ensures people’s food availability, taking agriculture’s categories of economic activities that may quickly intervene in rural
primary importance in the rural economy into account (SDG 2). economies surrounding mining sites. Given the need to integrate
extractive industries into community development in African commu­
This sub-pathway places farming activities at the center and works to nities, it is imperative to remember that this engagement is complex and
achieve various objectives, such as food productivity, rural trans­ requires a platform of more accurate indicators, studies, negotiation,
formation, farmers’ income, and resource protection, through common and global patronage. The exciting areas of research that require
agricultural policy guidance and to enhance renewable energy in their considerable effort are the study and analysis of the predicted impact of
agriculture system for irrigation, storage, and processing (Hodge, 2008). mining activities on the land being mined, the surrounding commu­
nities, and the countries that will depend on these non-renewable re­
• Multi-sectorial sub-pathway: diversify income source opportunities sources in the future.
and acknowledge the limitation of one sector’s dependability, either
agriculture or mining, then promote diversification of employment Author statement
and economic activities that may help local people get many alter­
native occupations. Fabien Muhirwa, Lei Shen and Ayman Elshkaki; Conceptualization,
• Hence, the territorial approach intervenes in specific projects and Methodology and formal analysis writing—original draft preparation.
moves towards a broader analysis of conditions within particular Kgosietsile Velempini, Hubert Hirwa and Gloriose Umuziranenge; wri­
areas. It also aims to make these rural areas attractive through new ting—review and editing. Lei Shen and Ayman Elshkaki: Supervise the
economic activities, new businesses, and new types of employment work.
(Murdoch, 2000). Lei Shen: Project administration and funding acquisition.

In this process, the government must foster an enabling environment Funding


for extractive industries to assess the natural resource chain, clarify
contracting and licensing processes, and regulate and oversee This study was supported by the Third Xinjiang Scientific Expedition,
operations. Grant No. 2022xjkk0803; National Natural Science Foundation of
China, Grant No. 42071281.
4. Concluding remarks
Acknowledgments
This paper critically examines the contributions, challenges, and
pathways of large-scale mining investments in African countries, The first author acknowledges the sponsorship of the Chinese
focusing on the benefits and challenges they bring to communities near Academy of Science (CAS) - The World Academy of Sciences (TWAS)
mining sites and some existing policies and pathways. The study President’s Fellowship Programme for his PhD studies at the University
embarked on the challenge of linking local communities to mining of Chinese Academy of Sciences. A special acknowledgement should be
companies that go beyond them and need strong collaboration between expressed to China-Pakistan Joint Research Center on Earth Sciences
mining stakeholders and a lack of government guidance. The direct that supported the implementation of this study. All the authors have
mining benefits the community gained from large extractive industries read and agreed to the published version of the manuscript and authors
are questionable, and it is feared that in the future, African communities declare that there are no competing interests along this article.
living near mining sites will suffer from dependence on mining activities
unless governments develop many alternative sources of income. References
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