PLATINUM

Regional Partnership in Water

DevelopmentA Case Study

26th October 2012

Bertus Bierman

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Context

1. Background2. Dilemma3. Olifants River Reconciliation Strategy4. Collaboration options

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Background

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De Hoop DamDe Hoop Dam

Witbank Dam

Loskop DamLoskop Dam

Middelburg DamMiddelburg Dam

GEOGRAPHICAL ORIENTATION

MogalakwenaMogalakwena

Northern LimbNorthern Limb

Eastern LimbEastern Limb

SteelpoortSteelpoort

Highveld Coal FieldsHighveld Coal Fields

Flag Boshielo DamFlag Boshielo Dam

PolokwanePolokwane

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4

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50.00

100.00

150.00

200.00

250.00

300.00

350.00

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450.00

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

URBAN & RURAL REQUIREMENTS (2009) MINING (2012)

NEW WATER DEMANDS E & N LIMBS

PLATINUMHIGHVELD MINE WATER

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Current 2015 2020 2030 Closure

Mine water flows (m3 per day)

Mine water recharge volume Water Reclamation Plant Capacity

Included in Recon

Strategy

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Dilemma

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DILEMMA

1. Without adequate water in the Northern and Eastern Limbs of the BIC:

– Social demands can’t be met in Mogalakwena and Polokwane

– Economic development of Limpopo will not happen (DWA study indicated a growth of 9%/a vs 2%/a)

2. Environmental risk of more AMD decanting or maximum storage in underground workings (potential groundwater contamination)

3. Minimum treatment of AMD

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Olifants River Recon Strategy

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OLIFANTS RIVER RECONCILIATION STRATEGY

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WATER RECONCILIATION ACTIONS

WC/WDM Irrigation9%

WC/WDM Urban and towns10%

WC/WDM Mining3%

Curb unlawful water use4%

Dam releases of small floods33%

Coal mine water decants/discharge

11%

Groundwater development

18%

Removal of invasive alien vegetation

6%

Reuse of sewage effluents

6%

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CURRENT AND PLANNED

HIGHVELD MINE WATER RECLAMATION PLANTS

EXISTING AND PLANNED (2012)

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Collaboration Options

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PLATINUMThe Joint Water Forum

Dean Pelser

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List of JWF Members1. Anglo Operations Limited

2. Akanani Mining (Pty) Limited

3. ASA Metals (Pty) Limited

4. Assmang Limited (Dwarsrivier Mine)

5. Barplats Mines Limited (Rhodium Reefs)

6. Boynton Investments (Pty) Limited

7. Chromex Mining (Pty) Limited

8. Nkwe Platinum Ltd

9. Northam Platinum Limited

10. Plateau Resources (Pty) Limited

11. Platreef Resources (Pty) Limited

12. Anglo American Platinum

13. Samancor Chrome Limited

14. Tamboti Platinum Ltd

15. Tjate Platinum Ltd

16. Two Rivers Platinum (Pty) Limited

17. Veremo Holdings Limited

18. Western Platinum Limited (On behalf of

Messina Platinum Mines Limited)

19. Xstrata South Africa (Pty) Limited

20. Umnotho weSizwe Investment Holdings (Pty)

21. Sishen Iron Ore Company (Pty) Ltd

22. Smokey Hills Pty Ltd

23. Corridor Mining Resources (Pty) Limited

24. Eastern Platinum Limited

25. Impala Platinum Limited

26. Modikwa Platinum Mine Joint Venture

PLATINUMThe Collaborative Approach

Drafting & signing a Memorandum of AgreementMay 2008

§ DWA undertook to develop water resources to support mining development;

§Mines exchanged commitment to take and pay – once conditions set by mines

have been fulfilled;

§ Project funding for Phase 2A was approved – basis that mines’ will repay their

share of Phase 2A – when subsequent Phase is declared operational and

thereafter tariff on each Phase declared operational

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Coal mines cooperation models

• JIA

• Chamber of mines –Colliers Committee

• Strategic Water Partnership Network–Eskom drives the effluent working group

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International models

• Germany–Aachen region

–Groundwater curtains–Injection wells, stream releases and potable water

• USA –Super fund–$ 1.00 per ton from existing mines to fund rehabilitation of defunct mines

PLATINUMORMWS PORTFOLIO STRUCTURE

19

PILLAR

1

PILLAR

2

PILLAR

3

PILLAR

4

PORTFOLIO

PROGRAMME

PROJECT –ASSET & BUSINESS ENTITY

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MINE WATER AS A RESOURCE – OPTIONS

• Base case option – business as usual

• Project option – Treat and discharge to the main stems of the Olifants River and Klein Olifants River

• Project option – Treat and supply potable water to towns and communities with compensation releases from dams

PLATINUMPROJECT OPTION – TREAT AND DISCHARGE

PLATINUMPROJECT OPTION – TREAT AND SUPPLY TO TOWNS

PLATINUMIMPACT ON WATER RECONCILIATION ACTIONS

WC/WDM Irrigation5%

WC/WDM Urban and towns

5%WC/WDM Mining

1%

Curb unlawful water use2%

Dam releases of small floods33%

Coal mine water decants/discharge

27%

Groundwater development

18%

Removal of invasive alien

vegetation3%

Reuse of sewage effluents

6%

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Institutional Structures

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Witbank DamWitbank Dam

Loskop Dam

Loskop Dam

Middelburg Dam

Middelburg Dam

MogalakwenaMogalakwenaNorthern LimbNorthern Limb

Eastern LimbEastern Limb

SteelpoortSteelpoort

Highveld Coal FieldsHighveld Coal Fields

PolokwanePolokwane

Flag BoshieloDam

Flag BoshieloDam

De Hoop DamDe Hoop DamCatchment Management

Entity

Water Management

Entity

Water Management

Entity

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Benefits

• Part of a Sustainable solution

• Benefits of scale – shared costs

• Reputational benefits

PLATINUMWay Forward

•All mines in the Olifants River Catchment Area need to participate in an Olifants River Reclaimed Mine Water Scheme comprising;

− The reclaimed Highveld coal mine water treatment scheme;

− Establishing an Olifants River Catchment Management Agency;

− Establish WUA’s or similar institutions to manage water treatment and distribution

− Supporting bulk infrastructure distribution system;