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Mkhombi Mining (Pty) Ltd

The Cascades Iron Ore Mining Project Environmental Impact Assessment – Public Meeting

20 May 2014

Reedbuck Forest Lake Retreat

Introductions

The Mining Right Application


Represented by: Jimmy Shiganga

Environmental Impact Assessment

Ethical Exchange Sustainability Services (Pty) Ltd

Represented by: Mari Wolmarans

Wim Schroeder

Agenda

Registration, Welcome and Introductions (Ethical Exchange) 14:00 – 14:20

Purpose of the Meeting (Ethical Exchange) 14:20 – 14:30

Description of the Proposed Project (Mkhombi Mining) 14:30 – 15:00

Environmental Legal Requirements (Ethical Exchange) 15:00 – 15:10

Results of Scoping and Way Forward for EIA (Ethical Exchange) 15:10 – 15:20

Questions and Open Discussions (Ethical Exchange & Mkhombi Mining) 15:20 – 16:00

Purpose of the Meeting

Inform the public about the mining right application and environmental impact assessment process

Discuss how the process works

Discuss work undertaken to date

Confirm the next steps in the process

Opportunity for public input into the process

Identify new IAP’s

PROJECT DESCRIPTION

Jimmy Shiganga


Location

Between Amsterdam and Piet Retief along the R33

Mining Right Application covers 3 farms:

R/E of Farm Cascade 442 IT

Portion 1 – 9 and R/E of Farm Ishelo 441 IT

Portion 4 and R/E of Farm Haarlem 443 IT

History of the Project

Mkhombi Mining held prospecting rights over the area:

1594 PR, 1111 PR, 4429 PR, 1112 PR, 4430 PR, 4990PR, 4991PR, 4992PR

Prospecting rights are only valid for a set period of time, after which a mining right has to be submitted to secure and maintain the rights to a mineral resource.

Mkhombi Mining completed a conceptual mine planning process in 2012

Mkhombi Mining submitted a mining right application in 2013, before the prospecting rights expired

DMR accepted the mining right application in March 2014

Environmental impact assessment (EIA) started in April 2014

Project Overview

The mining right application covers approx. 8,000 ha in extent

Opencast mining operation

Potential 2 Mtpa rail capacity on the coal line to Richards Bay and access to facilities at the port of Richards Bay to export iron ore pellets

Iron ore concentrate output of 2 Mtpa design

Life of mine more than 20 years

3 distinct blocks of iron ore bearing magnetite on The Cascades

SR Figure 2: Conceptual Mining Plan (based on 2012 conceptual mine planning study) (not to scale)

Conceptual Mining Plan (based on 2012 conceptual mine planning study)

Conceptual Mine Study

6 Mtpa of run-off-ore will be mined per annum

120.5 million tonnes from the open pits over 20 years

Waste to ore strip ratio of 1.61:1

194 Mtpa of waste will have to be mined to access all the ore

There is no free dig material. All material will be drilled and

blasted from the start of mining

Envisaged overall process from Pit to Port

Processing of ore on-site to produce fine concentrate

Slurry transported, via pipeline, from the mining area to the

existing Wildrand rail siding

Dewatering of the concentrate at the rail siding

Pelletising of the concentrate at the rail siding

Storage transport to Richards Bay Port

Storage and handling of the pellets onto vessels for export

Associated Surface Infrastructure

Offices

Stores

Roads

Refuelling bays

Service vehicles

Sewerage management

Bioremediation facility

Electrical infrastructure

Potable water supply and management

Storm water management

Dirty water management

Change houses

Security

Fire prevention

Waste disposal

Salvage yard

Plant workshop

Concentrator Plant

SR Figure 4: Concentrator Plant Flow Diagram

Tailings Storage Facility

Will be constructed with a clay under-liner, to prevent seepage of

water associated with the tailings into the groundwater

Return water will be decanted via a penstock system to the return

water dams prior to being returned to the plant for reuse

Likely cyclone deposition system will be employed, allowing the coarse

size fraction in the tailings to be used for wall construction

Construction method will be confirmed during the feasibility study

Tailings Storage Facility …

Based on the design parameters, the tailings storage facility will have a

final height of 35 m

Area required for TSF - 180 hectares (1298 x 1388 metres), which

includes the tailings dam, the external paddocks, solution trench, road

around the TSF and the return water dam

It has been assumed that suitable clay will be sourced in the vicinity of

the mining lease area

Water

No hydrogeological study work has been done on this project to date

Based on observations no major groundwater inflow is expected into

the mine working areas

The mine and plant will be designed to reclaim as much water as

possible from each process stage

If, as is intended, the concentrate is pumped to a pelletizing plant as a

slurry, then the filtrate will be returned back to the mine

Water …

The expected make-up water requirement for the plant to produce 2

Mtpa of concentrate, is about 2,000,000 m3/annum

Mining operations will require a further 300,000 m3/annum,

The estimated total is 2,300,000 m³/annum

Exploratory discussions with DWA indicated no significant supplies of

water available from existing storage sources in the area

Options for building new storage dams in one of the local catchment

areas is being considered

SR Figure 28: Location of Major Dams and Protected Areas in the Region

SR Figure 22: Land Form (showing rivers)

Electricity Supply

Total power requirements for this phase of the project (to produce 2 Mtpa of pellets) is estimated at 35 MVA

Initial discussions indicate that the local area distribution network would not be able to supply this requirement

Various power supply options are being investigated, such as:

supply from the nearby the 400 kV transmission line to Mozambique

supply from the Camden Power Station some 80 km away

locally generated power

Pelletising Plant

Four options near Wildrand siding

Project Layout Map (based on 2012 conceptual mine plan) 012 conceptual mine plan) (not to scale)

Pelletising Plant Process Flow Diagram

Pelletising Plant Option 1

Wildrand Siding - West End

Wildrand Siding

Wildrand Siding – West End Wagon Loading Facility

Bankable Feasibility Study

Mkhombi Mining will undertake a bankable feasibility study

Detailed mine plan

Evaluate options and confirm water supply, energy supply, etc.

Detailed designs of all infrastructure

A bankable feasibility study typically takes 12 to 18 months from start to finish

ENVIRONMENTAL IMPACT ASSESSMENT

Mari Wolmarans

Ethical Exchange Sustainability Services (Pty) Ltd

MPRDA Timeframes for EIA

MPRDA timeframes for the scoping report, consultation process, and EIA and EMP

Environmental Study Component Timeframe for Submission

to DMR

1 Submit an environmental scoping study (initial phase

of the EIA).

On or before 2 May 2014

2 Notify in writing and consult with the landowners or

lawful occupiers, the surrounding community

members, and affected parties and submit results.

On or before 2 May 2014

3 Consult with IAP’s and submit an EIA report and

environmental management programme (EMP), with

input from the public.

On or before 24 October 2014

Key environmental authorisations and approvals Required

Key environmental authorisations and approvals that will, or is likely to be required before the project can be implemented

1. Approval of Environmental Management Programme by the DMR in terms of the MPRDA – THIS PROCESS

2. Environmental authorisation in terms of the National Environmental Management Act (NEMA).

3. Approval of an integrated water use license, in terms of the National Water Act (DWA)

4. Approval of a waste management license (WML), in terms of the National Environmental Management: Waste Act (NEMWA)

5. The South African Heritage Resources Agency needs to approve a heritage assessment, to be conducted as part of the overall EIA process, in terms of National Heritage Resources Act (NHRA)

6. Should protected species be affected, permits will have to be obtained for their removal, relocation or destruction in terms of National Environmental Management: Biodiversity Act (NEMBA)

EIA (Scoping) Process to Date

Consultation Process

Identification of and initial contact with landowners, IAP’s and relevant authorities

Dissemination of information based on Mkhombi Mining’s 2012 conceptual mine planning

Record comments received

Comment and response report (CRR)

Technical and Scientific Studies

Research on characteristics and state of environment

Input from environmental specialists

Plan of Study for the EIA Phase

Scoping Report

SR Figure 23: Contour Map

SR Figure 22: Land Form (showing rivers)

Rivers and wetlands

Land Cover Map

Mpumalanga Biodiversity Assessment and Ecological Corridors

Mpumalanga Biodiversity Assessment and Ecological Corridors (Detailed View of Project Area)

Regional Vegetation Map

Mpumalanga Protected Areas Expansion Areas

Strategy

SR Figure 20: Mkhondo Local Municipality Draft Integrated Development Plan, 2011 – 2012

SR Figure 21: Surface Right Owners

Summary of issues identified

Summary of issues identified

Water

ground water and surface water pollution, acid mine drainage, concerns over

dam safety, concerns over availability of water

Air Quality

light and air pollution, people and animals health being impacted

Noise, blasting and vibration

noise pollution, damage to nearby infrastructure due to blasting

Summary of issues identified …

Ecology and Biodiversity

effluent and waste from mine and pellet plant, pollution will destroy the

environment, animals will lose their habitat, threaten lives of endangered flora

and fauna species, impact on commercial farming

Closure and rehabilitation

what is the rehabilitation plan, how will it be financed

Pollution (General)

Chemicals and hydrocarbons


Socio-economics

profits to go overseas, no compensation has been offered, loss of crops and

tourism, impact on community relocation, loss of income, where is the labour

force to come from, what size labour force is needed, will white and black RSA

citizens be employed according to knowledge and capacity, businesses in area to

be given preferential procurement, intimidation to people, strikes, safety

concerns

Heritage

SAHRA report for historical or grave sites on properties


Property, land, forestry and agriculture

aesthetics of the area, security, arson, theft, veld fires, community issues

Roads and transport

increased traffic, rail & road infrastructure concerns, concerns regarding access to farms

Infrastructure, developments, land uses

adventure estate has been developed, a number of erven sold on the farm Cascades, houses and

conference centre on Cascades,

will a railway siding be built at option 2/3 or 4, concerns over infrastructure i.e. pipe lines, power lines,

electricity supply,

housing for miners,

shopping infrastructure


Public participation process

not sufficient information in the BID, too little detail on infrastructure, no

engagement with the community, mine to carry all costs of meeting,

fundamental rights of IAP’s to be taken into account

Safety and Security

safety of property and livestock, health risk concerns,

International

concerns over Swaziland

International river systems


EIA and EMP authorisation process

please supply full mining right application with maps and other documentation,

copy of acceptance letter from DMR, full copy of water use license, full copy of

social & labour plan, feedback from MTPA regarding conservation area, copies of

specialist studies, proposed structure of your environmental assessment report,

details of mine engineer, details of directors of company, when will prospecting

rights be terminated, right of access to land is reserved

Next Step in the Process …

Submit IAP comments on EIA and EMP Report and CRR Version 04 to DMR

DMR review of EIA and EMP Report

Update EIA and EMP Report based on DMR comments

DMR Decision (IAPs will be notified about the DMR decision, and the subsequent appeal process)

Appeal Process

Specialist Studies

Surface Water Assessment

The potential impact of the proposed project on the surface water quality during the construction and operational phases will be assessed

Potential mitigation measures for each of the identified impacts will be determined and alternative options for the will also be assessed

Groundwater Impact Assessment

Evaluation of potential inflows into the proposed mining area

Evaluation of the impact of mining on the ground water system

Recommendation and implementation of a monitoring system

Specialist Studies …

Soil and Agricultural Impact Assessment

Based on the soil study, an analysis will be made on the following:

Present land uses

Land use suitability (potential)

Income potential from farming

Assess impacts and identify sensitivity, constraints, possible impacts on development potential in terms of present land use legislation in Act 70 of 1970, NEMA and others

Wetland Impact Assessment

A desktop review of legislation to ascertain licensing requirements

Potential impacts on the wetlands that may arise from any development or associated infrastructure will be identified and assessed

Recommendations for mitigation of negative impacts will be provided;


Terrestrial Ecological Impact Assessment

A desktop review of legislation to ascertain licensing and permitting requirements, including the Mpumalanga Nature Conservation Act, 1998 (Act 10 of 1998)

Cultural Specialist Study (Heritage Impact Assessment)

On site investigation to ascertain if there are any archaeological or heritage resources

e.g. burial grounds & graves, built environment & landscape features within the project area


Aquatic Ecological Impact Assessment

Undertake field survey in the Hlelo River, Tweelingspruit and Swartwaterspruit

Habitat quality will be

Habitat Integrity will be assessed using a rapid visual assessment protocol

Benthic diatoms typically reflect water quality in the short-term (days) and are useful biological indicators of overall water quality

Aquatic macro invertebrates typically reflect water quality and in-stream habitat conditions in the medium-term (weeks), and can be useful biological indicators in perennial streams and rivers

Fish typically reflect water quality and in-stream habitat conditions over the past six months, and can be useful biological indicators in the medium-term

Specialist Studies … Economic Impact Assessment

Model development and impact assessment: The purpose of this step is to develop and calibrate an econometric impact model and simulate the economic effect of the proposed project

Direct impact: The direct impact is calculated from macro-economic aggregates occurring as a direct result of the project

Induced impacts: The induced impacts are the impacts on goods and services demanded due to increased expenditure by households from income earned due at the project

Construction and maintenance spending impact: Short-term economic impacts associated with the construction of facilities and services/infrastructure can also be recognised, as well as other long-term economic impacts associated with maintenance and operation of facilities and services

Implications, recommendations and mitigation: Interpreted results to ensure sustainable development of the proposed project and to provide input to the various land development processes


Social Impact Assessment

The Social Impact Assessment Report will focus on current conditions

Each category will discuss the current state of affairs, but also investigate the possible impacts that might occur in future

Will have a participatory focus => focus strongly on including the local community and key stakeholders

The public consultation process needs to feed into the Social Impact Assessment

Impacts will be rated according to the prescribed impact tables

Visual Impact Assessment

Modelling techniques that establish visual intrusion, visibility and visual exposure of the project components

The significance of the impact will be determined

Cumulative impacts as well as the impacts of all project phases will be assessed

Specialist Studies … Traffic Impact Assessment

road-based traffic is expected to be limited to construction vehicles and employee traffic

run-of-mine product will be slurry pumped to the pelletising plant where it will be transported by rail => no significant amount of heavy vehicle trips after construction

data from visual inspections will be used for the preliminary assessment of the existing road pavement and its ability to handle the estimated heavy loads during the construction phase

recommendations will be made to mitigate the impact of the construction of the proposed mine on the road pavement, as well as on the capacity of the roads and intersections in the vicinity of the mine

The requirements for the access to the mine will be assessed in terms of capacity and geometric layout

Schools have been identified along the R33 in the vicinity of the mine site. The impact of the proposed mine on the road safety, especially during the construction phase, will be address

Measures to improve the safety of scholars and / or pedestrians along the R33 will be recommended


Noise Impact Assessment

Using project data, model the generation and atmospheric propagation of noise from future operations

Use the model to determine the expected noise footprint of the project

Assess the noise impact on noise-sensitive receptors in the external surroundings ito criteria outlined in the relevant Noise Regulations and SANS 10103

Consider options for mitigation and management of excessive noise impact

Air Quality Impact Assessment

compile an emissions inventory for the project, comprising the identification & quantification of all potential routine sources of emission

Atmospheric dispersion modelling

evaluation of potential for human health and environmental air quality impacts

Next Step in the Process

ASSESS ALL COMMENTS RECEIVED

CONDUCT SPECIALIST STUDIES

DRAFT EIA

FINAL EIA

Next Step in the Process

Assess all comments received

Conduct specialist studies

Draft EIA

Final EIA to DMR

Next Step in the Process …

Draft Report and make available to IAPs (40 days) August to September 2014 – results of specialist studies (WORK IN PROGRESS)

EIA phase public meeting September 2014

Consult with IAP’s and submit an EIA and EMP report and environmental management programme, with input from the public on or before the 24 October 2014

Make EIA and EMP Report available for review by IAP’s, stakeholders, authorities, and relevant state departments and organs of state 40 days, from 25 October 2014

Environmental Management Programme

An Environmental Management Programme (EMP)

all commitments in terms of environmental management monitoring, research, consultation and reporting over the life of the proposed project; including:

Construction Phase (including planning, design and pre-construction)

Operational Phase

Decommissioning and Closure Phase

Post Closure

Future Studies

Bankable Feasibility Study

Detailed planning of mine and associated Activities

Environmental Studies

Environmental authorisation in terms of the National Environmental Management Act (NEMA).

Approval of an integrated water use license, in terms of the National Water Act (DWA)

Approval of a waste management license (WML), in terms of the National Environmental Management: Waste Act (NEMWA)

The South African Heritage Resources Agency needs to approve a heritage assessment, to be conducted as part of the overall EIA process, in terms of National Heritage Resources Act (NHRA)

Should protected species be affected, permits will have to be obtained for their removal, relocation or destruction in terms of National Environmental Management: Biodiversity Act (NEMBA)

QUESTIONS

The Scoping Reports and all future reports available from:

w.ethicx.co.za/mkhombi-mining-downloads

For Queries and further information contact: [email protected] / 041 823 9010

http://www.ethicx.co.za/mkhombi-mining-downloads








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Surface Right Owners

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