Anglo Operations (Pty) Ltd Setlabotsha Project Scoping meeting for Mining Right Application 10 November 2016 This title slide contains elements to hide the master slide default elements. It uses a rectangle with gradient fill in the background and a 100% black PNG image with transparent background. To cover both these elements, a black rectangle is placed in the footer area with the logo inserted on top of that. The vertical rule and heading are also added on top.

WELCOME AND INTRODUCTION Stakeholders/Interested and Affected Parties Anglo Operations (Pty) Ltd (AOL) SRK Consulting Project Proponent Independent Environmental Assessment Practitioner

AGENDA Welcome and introductions Purpose of meeting Background Project description Legislative requirements Project timeframes and stakeholder engagement Questions and comments Way forward Contact details

PURPOSE OF MEETING Re-introduce Setlabotsha project Explain the reason for the Mining Right Application in addition to the S102 application Share technical information about the project Present alternatives Explain the environmental authorisation process Explain how stakeholders can participate Gather comments from stakeholders

BACKGROUND TO SECTION 102 Proposed underground coal mine near Standerton, Mpumalanga Section 102 process: merge 4 prospecting rights into existing New Denmark mining right. Application lodged Feb 2016 Environmental authorisation also commenced in Feb 2016, although stakeholder engagement started in Dec 2015 Environmental Impact Assessment / Environmental Management Programme (EIA / EMP) submitted to Dept. Mineral Resources (DMR): 18 August 2016

BACKGROUND TO MINING RIGHT APPLICATION (MRA) In addition to the current S102 application, AOL has submitted a stand-alone Mining Right Application (MRA) on 21 October 2016 for the same 4 prospecting rights This a back-up option to ensure the security of the Setlabotsha rights in case the Section 102 application is delayed or not approved Should the Section 102 be granted, the mining right application (MRA) will be withdrawn and this process terminated

BACKGROUND TO MINING RIGHT APPLICATION (MRA) Legal opinion suggested AOL’s rights are at risk if the S102 is not approved – an alternative company may secure the rights AOL thus submitted its own alternative application – “in pending”, as a back-up Cannot submit another S102; MRA was the only option

BACKGROUND TO MINING RIGHT APPLICATION (MRA) MRA requires a stand-alone mine and implies immediate operation (12 months), hence we must include the conveyor route – however, it remains AOL’s intention to merge with existing New Denmark Colliery, even if we pursue this option MRA and S102 are completely separate applications and separate processes. Extremely important to keep them separate – in terms of appeals All stakeholder comments raised during the Section 102 application will be included in the MRA process And all new stakeholder comments will be recorded in the MRA process

LOCALITY MAP

PROJECT DESCRIPTION Underground mining of No. 4 coal seam, average depth 196m Access to coal seam by two shaft complexes Incline shaft (material and coal) and vertical shaft (personnel, small material and ventilation) Associated infrastructure (overburden stockpile, PCD, silo, sewage treatment plant) Mining method: a combination of bord and pillar using continuous miners and longwall mining An options of a new overland conveyor of 32km to New Denmark Colliery Life of mine: ~40 years

LOCALITY MAP

BORD AND PILLAR

LONGWALL MINING

CONVEYOR BELT

LEGISLATIVE REQUIREMENTS Environmental authorisation New NEMA regulations has been promulgated on 8 December 2014 Integrated process between Mineral and Petroleum Resources Development Act (MPRDA), National Environmental Management Act (NEMA) and National Environmental Management: Waste Act NEM:WA Competent authority: Department of Mineral Resources (DMR)

TIMEFRAMES Decision on scope of work,update of stakeholder information Inclusion of proposed se in application form Submission of environmental authorisation application 21 October 2016 October 2016   Announce project and availability of Scoping Report for public comment Update comment and responses report Update scoping report Submission of Scoping Report to competent authority December 2016 30 days for public to comment 28 October – 29 November 2016 Availability of Environmental Impact Assessment and Management Progamme (EIA/EMP) for public comment Feedback meetings with stakeholders Update EIA/EMP February / March 2017  April / May 2017  Inform stakeholders on record of decision and the appeals process August 2017  Pre-application Scoping Impact Assessment Decision making We are here Submission of EIA/EMP to competent authority

SPECIALIST STUDIES No specialist studies are required as these have been completed during the Section 102 application and included the conveyor route

QUESTIONS/COMMENTS?

WAY FORWARD Scoping Report available for public review from 28 October – 29 November 2016 Standerton Public Library New Denmark Colliery Platkop PGK SRK website Capturing comments and responses during comment period Submission of Scoping Report to DMR

CONTACT DETAILS Lysette Rothmann-Guest SRK Consulting PO Box 55291, Northlands, 2115 lrothmann-guest@srk.co.za 011 441 1111