Mrima Hill Niobium and Associated Rare Earth Mining Project – ESIA clarifications

NEMA Technical Meetings

24th October 2012

NEMA HQ office Nairobi

Summary

Introductions

Meeting Objectives

NEMA Technical Issues

EIA Project Team

Technical Responses

Other Issues and TAC

Questions and Answers

Meeting Objectives

1. To discuss technical response and clarification re NEMA’s Eight questions (letter 19th July 2012)

2. To answer any other technical questions from NEMA

3. To be advised by NEMA of recent feedback from public

4. To respond to reports in the media

5. To assist TAC in their review

The ESIA Project Team Client - Cortec Mining Kenya (6 years of

consultations)

International and Local Team of EIA experts

32 contributors 30 BSc, 8 MSc, 5 PhD or Post Grads

8 NEMA Registered Experts

Subject Expertise including:

Geology, Mining, Forestry, Ecology,

Flora/Fauna, Water, Waste, Social,

Radiation, Archaeology, Public Awareness

Ken Wade ESIA Team Leader

35 years experience in Environment Profession

15 years Regulator 20 years EIA Expert

Global experience on major development projects for Government and Private Sectors

Published Technical Papers - Nature Conservation and Environmental Pollution Assessment

Equator Principles compliant projects to date exceed U$50 billion and advisor for new cities

Member of WWF for > 50 years – NEMA Expert

NEMA Points of Clarification

1. Study Report of Colobus monkeys

2. Archaeological Report in conjunction with NMK

3. Radiation Survey Report

4. Evidence of Public participation including Kwale County Council

5. Environmental Public Education Programme

6. Evidence of degazettment notices

7. Evidence of Prospecting License including Mrima Hill

Colobus Survey Report (Q1)

Published Survey Report by Dr Jane Anderson of the Zoological Society of London showed the following:

•Transect surveys undertaken - 123 coastal forest patches

•Colobus found in 54 of the forest patches

•>10% found alongside rivers, mangroves, plantations

•Threats – agriculture, settlements, logging, tourism

•Mrima accounted for 2% of the total no of groups

•Mrima accounted for 2.5% of the total no of individuals

•Survey Results quoted on Colobus Trust website Oct 2012

Kenya Southern Coastal Forests

Forest Fragmentation (Q1)

Effects of Forest Fragmentation Report by Dr Jane Anderson of the Zoological Society of London based on the following:

•Colobus occurrence and abundance patterns studied in 46 coastal forest areas

•Study areas from 1ha to >1400 ha (Mrima 382 ha)

•Mrima habitat is <1.8% of Kenya’s coastal forests

•14 tree species linked to >75% Colobus feeding records

•Positive habitat attributes i) closed canopy and ii) density of major food trees

•ESIA (2011) provides survey data on Colobus habitat

Colobus Habitat Mrima Hill (Q1)

Forest Sweep Survey of Colobus on Mrima Hill (August 2012) overseen by KFS using local community volunteers:

•Sweep survey approach from around base of hill

•Locations marked on sketch map and show most sightings on mid to lower slopes of the hill (few on the summit)

•Mrima Population estimates 20 groups and 270 individuals

•ESIA Vegetation Survey (May 2011) • 8 tree species (preferred food) on lower slopes • 3 trees species (preferred food) in upper “mining zone”

•CONCLUSIONS – Habitat on lower slopes already ensures that Colobus rarely encountered in mining zone

Colobus Survey August 2012 (Q1)

Colobus Report Conclusions (Q1)

Proposed mining plans and restoration of forest will have positive effect on Mrima Colobus population:

1.Mrima Hill provides <1.8% of the coastal forest habitat and < 2.5% of the population groups (Anderson et al 2007)

2.Closed forest canopy and preferred foods (14 trees) are the two most important attributes affecting Colobus

3.Reforestation will lead to replanting of preferred food sources and closing canopy in existing open spaces.

4.ESIA Vegetation survey has demonstrated that most preferred food sources for Colobus are on lower slopes outside the mineralized zone).

Archaeological Report (Q2)

Prepared by Dr Christine Ogola of NMK (August 2011)

“ A systematic survey was conducted by a team of well-trained archaeologists from the National Museums of Kenya with a wealth of knowledge and experience in identifying archaeological remains”

“No cultural materials were identified on the cleared surfaces for the drill sites”

“The evidence for human activity here presents a picture of extensive past land-use, most likely by the modern communities and (potentially) earlier older Bantu farming groups”

Archaeological Actions (Q2)

Summary by Dr Christine Ogola of NMK (August 2012)

A shift in emphasis in summary although “possible antiquity is something which has not been confirmed”

No shift in commitment by Cortec to survey areas of historical or cultural significance……. However:

1.Further survey without vegetation clearance pointless

2.Watching Brief is clearly stated in ESIA reports (2011)

3.Clearance of selected areas of high significance will be provide by Cortec after operations have commenced

4.The mining will NOT impact upon the Kaya site which will have a defined buffer zone established by CMK in consultation with NMK.

Radiation Survey 2012 (Q3)

Survey of 43 sites of naturally occurring gamma radiation undertaken by expert Nick Tsurikov (Member of RCWA, ARPS, SPERA, CRCPD, AICD):

Results indicate levels of 1 to 3 micro Sieverts/hour on Mrima Hill and 0.3 to 0.6 uSv/h on surrounding roads

By comparison naturally occurring radiation in highly populated areas in:Brazil 1.96 – 63uSv/h; France up to 7uSv/h; Iran up to 11.9 uSv/h

To set this in context a 5 hour plane journey is equivalent to a dose of 3uSv i.e 0.6 uSv/h

Radiation levels have previously been measured in all exploratory samples collected from Mrima Hill and these meet International safety standards

Radiation Survey 2012 (Q3)

Survey of naturally occurring gamma radiation undertaken by expert Nick Tsurikov at 43 sites

CONCLUSION remains the same as in ESIA submitted to NEMA (October 2011)

i.e. there is no cause for alarm from any survey results either on Mrima Hill or in the surrounding area, but in line with the precautionary principle further testing will be undertaken during the early phase of the set-up for mining operations to provide reassurance of compliance with international safety standards.

Public/County Participation (Q4)

4 Public Consultation meetings have been held between June-August 2011 with >2,000 attendees from local communities, government officials, councillors and NGOs;

Regular meetings held with Kwale Councillors 2012;

Public meetings minuted and signed off by Area Chief;

6th June 2011 Mwbovo7th June 2011 Mrima TM20th July 2011 Mangweli Primary School18th August 2011 Methodist Church Mamba Village16th June 2012 NEMA Public Hearing

Public Education Programme (Q5)

Public Education Programme provision for local communities:

1. Public Consultations with > 2,000 local people2. Poster boards describing the project since June 20113. Physical Model of the hillside to explain operations since June

20124. Poster Boards showing Mining areas and Reforestation

Programme5. Ongoing boards will describe the following:

1.Radiation and Health issues;2.Reforestation proposals;3.Archaeology (protection of cultural/historical sites and

artifacts)4.Colobus habitat and protection5.Employment and training (micro-economy)

Public Education Programme (Q5)

Public Support has been provided to the communities:1. Cortec has been working with the communities since 20062. Agro farming projects and training3. Local employment and training4. Support for new schools projects5. New water supply wells for local community6. New guardhouse and security gate for KFS to protect Mrima

Forest 7. Proposed Healthcare facility

Sources/Quantity of Water (Q6)

Preliminary assessment of water use issues has already been undertaken including a specialist study in 2011. However:

Water is not a significant issue for the mining operations on the hill. Usage will be minimal and supplied by bowser

The Processing Plant will be subject to a separate ESIA study

The location of the Processing Plant has not been confirmed although water supply will not conflict with potable water supplies for local communities

The Plant may use brackish water subject to technical design:

Mrima Hill Degazettment (Q7)

Mrima Hill Degazettment (Q7)

Mrima Hill SPL 256 (Q8)

Exploratory License SPL 256 in Kwale CountySPL 256 issued on the 4th April 2008 (1180km2)

SPL 256 renewed 1st December 2011 (2 years) (50%)

All fees paid according to license requirements

All cores samples are divided to provide Mines & Geology with every borehole sample taken to date

Examples of SPL 256 Technical Reports provided to NEMA

Mrima Hill Map of SPL 256 (Q8)

Mrima Hill Map of SPL 256 (Q8)

Misconceptions

Misconceptions have been aired about the project including : 40,000 people will need to be moved away – FALSE

Open cast mining will destroy the forest – FALSE

The Kaya will be destroyed – FALSE

Community water supplies will be affected – FALSE

Radiation levels unsafe for communities – FALSE

Cortec has found diamonds – FALSE

Cortec has started mining – FALSE

Thank You

Niobium Mining Phases (1-16 years+)

Niobium Pit Location 3-D and Design

Post Year 16 100% Reforestation

Thank You