8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Risk – Based Solutions cc Risk – Based Solutions cc Mining and the Environment in Namibia Dr. Sindila Mwiya PhD, PG Cert, BEng (Hons), FGS, CEng, Pr. Eng PhD, PG Cert, BEng (Hons), FGS, CEng, Pr. Eng Technical Consultant or the Consulting Arm of Foresight Group Namibia (PTY) LTD

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Overview Background to Exploration and Mining Stakeholders and Challenges Current Legal Provisions for Mine Closure Current Major Legal Gap Future Solutions Knowledge-Based Approach – Legal and Technical Alignment Successful Mine Closure Plan Conclusions

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Climatic Setting

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Vegetation Zone

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ;

Background to Exploration and Mining Project Identification Apply for an Exclusive prospecting License (EPL) Scoping and Pre-Feasibility Studies Feasibility Studies: Economic resources modeling ongoing - EIA, EMP and Other Specialist Studies Apply for Mining License and if Granted Start with Construction and Development Operation: Mining, Ongoing Exploration, Ongoing Rehabilitation and Monitoring Closure, Final Rehabilitation and Monitoring Aftercare and Ongoing Monitoring Mining License (ML) Ongoing and Future Mining and Further Exploration [Open Pit Mining and Possible Underground, Blasting, Crushing, Screening and Processing with Further Mapping, Sampling and Drilling For Additional Resources Delineations – Ongoing Exploration, Rehabilitation, Monitoring and Mine Closure with Aftercare Plan] Reconnaissance License of Exclusive Prospecting License (EPL) Reconnaissance and Exploration [Review of Historical Data Sets, Ongoing, Field Mapping, Sampling, Initial Resources Evaluation, Further Drilling, Final Resources Evaluation

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Stakeholders and Challenges Stakeholders have different objectives: STATE: minimize exposure to long term risk MINES: minimize expenditure and walk away LABOUR: prevent /delay closure, no job losses COMMUNITIES & NGOs etc: preserve viable society Major technical stumbling blocks: Dealing with historical issues dues to old mines Confidence in predictions of long term impacts (Real and Perceived Impacts) Legal and Financing for post-closure management Often starting preparation for closure too late

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Current Legal Provisions for Mine Closure In accordance with provisions of the Minerals Act, Act No. 33 of 1992, operator informs MME the intention to cease operation in accordance with the provisions of the Minerals Act, Section 99 (Notice of cessation of mining operations). Undertake EA to review / adapt the existing EMP with respect to rehabilitation: Set closure objectives through consultative process Predict long term impacts using acceptable techniques Develop and implement rehabilitation process in accordance with the provisions of Sections 128 (Removal of Property) and 130 (Environmental liability during the course of the operation), finish the rehabilitation if money is still there and leave after inspection and approval by MME

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Current Major Legal Gap Operator may NOT be held liable for managing long term impacts during aftercare and after the completion of rehabilitation and approval by the State (THIS MUST BE PREVENTED AT ALL COSTS) In some cases a company may go into insolvency even before proper rehabilitation can be undertaken such that the STATE on behalf of the tax payers only takes-over both short and long term environmental liabilities which in some instances and overtime may negate all the positive economic and social gains made during the mine operations. (THIS MUST BE PREVENTED AT ALL COSTS)

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Future Solutions Through the development of effective regulations in consultations with all the stakeholders and within the provisions of the Environmental Management Act, (Act No. 7 of 2007) as well as amendments to the Minerals Act, the legal gap is likely to be closed through environmental certification of not more than 3 years as well as the requirements for financial guarantee in case of bankruptcies / lack of funding during rehabilitation and aftercare stages

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Knowledge-Based Approach – Legal and Technical Alignment Project Concept / Identification (Greenfield Project) ScopingPre-FeasibilityFeasibilityDesign Construction/ Operation/ Maintenance Closure / Decommissioning and Aftercare 1. Project Concept / Identification 2. Appoint an Environmental Practitioner 3. Develop Proposal through consultation 4. Determination of proposal / Renewal (Baseline Report Prepared) 5. Application with Baseline Report and Draft Environmental Management Plan for no Formal EIA Process 6. Notification with Baseline Report and Terms of Reference for full EIA 7. Review of Applications / Registrations 8. Full investigation, EIA Repot and Draft Environmental Management Plan (Mitigation Plan) 9. Application with Full EIA and Draft Environmental Management Plan 10. Record of Decisions 11. Conditions of Approval (May include financial Guarantee) 12. Appeal 13. Implementation of proposal 14. Monitoring, auditing and ongoing mitigations 15. Renewal every less than three (3) years with final revaluation at closure / Decommissioning 16. Define an Aftercare Timeframe (Some Sort of Guarantee to Engineering Systems done during Rehabilitation) with Certification at the end of the Aftercare Period The Environmental Impact Assessment (EIA) Procedure – The Gateway to Environmental Sustainability Exclusive Prospecting License (EPL) Mining License (ML)

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Successful Mine Closure Plan Undertaken according to a predefined schedule over life of mine Effective begetting and financial provisions through regular Environmental Assessment and adjustment of the budgeting process Adapted a Risk-Based Approach (Source - Pathway - Target Chain) Mine closure not considered a site greening but long-term Environmental Management Proactively identified and implemented pollution prevention measures through effective monitoring

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; Conclusions Mine closure and aftercare should be a logical, scheduled process incorporating all stakeholders with the State giving a clear guidance. Its important to adopt appropriate methodologies such as Risk and Knowledge-Based Approaches in Environmental Assessment for Mine Closure and Aftercare Management. The focus must be for the management of long-term environmental liabilities of which upon closure of the operating company must be transferrable to a technically sound entity together with the accumulated financial resources for the aftercare stage. Need to resolve outstanding issues such as financial provisions / guarantee beyond the life of a mine and the closure of the company that operated the mine

8 th Floor Capital Centre Building Levinson Arcade WINDHOEK CBD; Global Office http// ; ; End and Thank You Risk – Based Solutions (RBS) cc Risk – Based Solutions (RBS) cc The Consulting Arm of Foresight Group Namibia (PTY) LTD