MINE WATER

MANAGEMENT

Johan Wagner

Group Water Consultant

28 July 2016

Disclaimer

The information in this presentation may include forward-looking statements, which are based on current expectations and

projections about future events. These statements may include, without limitation, any statements preceded by, followed by or

including words such as “target,” “expect,” “may,” “anticipate,” “estimate,” “will,” and other words and terms of similar

meaning or the negative thereof. These forward-looking statements, as well as those included in any other material discussed

at the meeting, are subject to risks, uncertainties and assumptions, including, among other things, the development of

Sibanye’s business, general economic conditions and actions of regulators. In light of these risks, uncertainties and

assumptions, the events in the forward-looking statements may not occur. No representation or warranty is made that any

forward-looking statement will come to pass and no reliance should be placed on any forward-looking statement. No one

undertakes to publicly update or revise any such forward-looking statement.

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Mine water management

• Integrated water resource

management

• Dynamic water systems

management

• External and internal water

management issues

• Water management:

opportunities

3A complex and critical issue for the mining industry and the country

SibanyeAMANZI management strategy: background

• 2005 – 2012: Gold Fields Liquid Gold plan:

• 2013: SibanyeAMANZI strategy developed when Sibanye established

• 2014: Water Management Department (WMD), comprising a multi-disciplinary

team, set up with a mandate to deliver one-stop,

in-house, professional mine water management services

– unique in the mining industry

– cost saving

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SibanyeAMANZI: objectives and key results

• The SibanyeAMANZI programme actively delivers across

four critical functional areas:

• Ensuring water management COMPLIANCE and safety: water use licences (WULs), fit-for-purpose (based on water end use),

health, statutory, structural, routine monitoring, incident management,

closure

• Delivering INNOVATION and PROJECTS which deliver: cost reduction, value recovery, compliance and sustainability

• Supporting mining operations and maintenance:

– footprint: reductions in municipal water consumed, water pumped and solids discharged

– total cost of ownership: reduced cost – separation, pumping, energy, use of chemicals

• Developing a culture of water use awareness and stewardship: relationships and catchment management forums with key stakeholders

(government and communities), value adding third party mine visits

• Key differentiators are: innovation, business case driven, compliance re-engineering, decision support system (MEMDSS), regional integration

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Critical water concerns

• Acid mine drainage (AMD)

– current situation

– government solution

– the Sibanye alternative

• Compliance

– fair water use license

– administrative burden

– law vs regulator

• Water quality and quantity

– mine closure management

– data scarcity

– governmental infrastructure

constraints

– resource quality objectives

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Acid Mine Drainage

Problem

• Recognized as 2nd greatest environmental issue after global warming by the US Environmental Protection Agency

• Treatment of AMD declared an emergency in 2010 by DWS

• Short-term treatment has begun – are limitations

• Long-term solution suggested by DWS

– no technical solution as yet

– cost apportionment of 2/3rd to existing mines and 1/3rd to tax payers

– pump and treat into perpetuity – unsustainable

– treat only to potable standards – not fit-for-use

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Acid Mine Drainage

Sibanye solution

• Short-term treatment:

– lime dosing, precipitate and settling to

separate solids from compliant water

– high-rate settling as compared toother available technology

– improved cost-effective, environmental footprint

– can be treated to potable standards if

further treatment performed

• Long-term treatment:

– backfill the void with tailings residue

– allow flooding of the void to just below decant level

– treat decant on surface to drinking water standard using appropriate technology and

offset cost against cost of municipal supply

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Compliance

Problem

• The law (National Water Act (NWA)) vs regulations

• Obtaining a fair WUL on time

– sometimes unachievable conditions

– inconsistency of standards and requirements

– long application and amendment times

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Compliance

Sibanye solution

• Environmental decision support system

developed (MEMDSS)

• Implemented three sector compliance

management system (care, statutory and

structural)

• Monitoring use of in-house specialists

– reduce cost

– ability to react in real time

• Active consultation with the DWS

• Participation in decision-making

processes

– Sibanye participates in key

workshops, policy and strategy

sessions

– influences policies to ensure

they are practicable and

implementable

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Water quality and quantity

Problem

• South Africa has limited water

resources which are inequitably

distributed

• Sibanye has surplus water

• Governmental constraints on the

sale of water by private companies

• Minerals naturally associated with

metals and salts influences water

quality – metals and uranium

• Sewage and agricultural pollution are significant issues

– cross contamination

• Mine activities contaminate the

groundwater resource

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67%

18%

4%

5%2% 3% 1%

Contribution and current water needs

by major economic sector

Irrigation

Urban

Rural

Mining

Power generation

Afforestation

Transfer out

Water quality and quantity

Sibanye's solution

• Separate clean and dirty water from source:

– key principle of the NWA

– includes keeping clean water out of dirty areas, such as mine workings

• Treat underground water, mine water and AMD water for internal use

• Produce potable water through active treatment methods (e.g. water treatment plants) for external supply for closure (includes WRTRP)

– included as part of draft Integrated Water Quality Management Policy of

the Department of Water and Sanitation – Sibanye gave input

recommending the private sale of water to cover cost of treatment

– regional opportunities for use of resources

• Implement passive technologies for water treatment after closure (bioremediation e.g. wetlands and attenuation)

• Innovative metal s and uranium removal and recovery:

– projects being implemented and investigated

– will allow for recovery of metals

• Working with farmers and assisting municipalities to solve water issues

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