Mkhombi Mining (Pty) Ltd The Cascades Iron Ore Mining Project Environmental Impact Assessment – Public Meeting 20 May 2014 Reedbuck Forest Lake Retreat
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
Mkhombi Mining (Pty) Ltd
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
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
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
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
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
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
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
Summary of issues identified …
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
Summary of issues identified …
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
Summary of issues identified …
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
Summary of issues identified …
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;
Specialist Studies …
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
Specialist Studies …
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
Specialist Studies …
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
Specialist Studies …
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