Witwatersrand AMD Parliamentary Portfolio Committee on Water & Environmental Affairs 28 th June 2011 Overview of Activities by Gold Mining Companies active in the West, Central and Eastern Basins 8 28 th June 2011 John Munro – Spokesperson for the active companies

History of Witwatersrand Basins AMD The Western Basin decants 120 years of underground mining stopped in 1990’s Workings filled with water - AMD decanted in 2002 Directives begin 2005 Attempts at apportionment failed 2005 to date Active mines directed to : – Install temporary treatment operations – Develop a long term sustainable solution Today 6 years later – AMD remains very serious in all basins Temporary operations continue by current companies Mines have proposed a Long Term Solution Central Basin is flooding->300m rise in under 2 years Eastern Basin is flooding

Page 3 Working collaboratively towards a solution WBECCBEC EBEC WBWC Voluntary associations, sect 21 companies Rand UraniumEast Rand Proprietary Mines Aurora ? Mintails SA /Mogale Gold Central Rand GoldERGO DRDGOLD /West Witwatersrand Gold Mines West Wits Mining Incorporated WUC

The Big Picture

The impact of AMD Unsaturated zone Water table Saturated zone Ground water Surface water Critical environmental zone Deep aquifer zone Up to 40 Ml/d untreated overflow

Overview of activities by active companies Premised that the AMD is essentially ownerless and is a legacy liability And In light of this, on DWA direction, various companies undertook, “without prejudice” to implement certain practical steps since 2005 : The Pragmatic approach: – Operate AMD partial treatment Plants, as a temporary measure – Support the development of a Sustainable Long Term Solution – Presented a Sustainable Long Term Solution to DWA and latterly the IMC- ToE – Worked extensively with Government, regulators and stakeholders on the problem since 2005 right up to date The Legal Approach – Each company has however a specific unique factual and legal position too. Companies have acted collaboratively where possible. – Extensive legal activity has proven fruitless so far.

Summary of Mining Company activities 2002 – AMD decant commenced WB–emergency containment measures 2004 – AMD Partial Treatment Plant commenced operations WB 2005 – DWA issues first AMD directive 2005 – Upgraded AMD Treatment Plant commenced operations WB 2006/7 – Cooperative bodies formed (WBEC, CBEC etc) 2007 – WUC mandated by WBEC/CBEC/EBEC established to develop long term solution 2007,8,9 – WUC undertakes extensive studies, piloting and wide consultation 2009 – DWA’s Water for Growth & Dev Document highlights WUC as “by far most attractive solution” – DWA takes lead in supporting WUC initiative – Government Task Team (GTT) provides “in principle” support for WUC – WUC submits Final scoping report- ready to submit WULA and Final EIA Mining companies engage DWA at high level on advancing Long Term Solution 2010 – Mining companies engage DWA on alternative solutions at Ministerial level 2010 – Mining Companies again propose Long Term Solution in revised submission to address perceived DWA objections Mining companies present proposals to IMC Technical Team – Emergency measures – Long Term Solution – Mining companies engage with DWA/TCTA post release of IMC report

The Challenge remains Large Scale AMD in the Central Wits goldfields – “AAA priority issue” - Hon Min Sonjica - March 2010 Legacy – The AMD is essentially ownerless – Litigation around apportionment and liabilities has been fruitless New Operators on the West and Central Basin – These Companies could not have created this problem – Burdening these companies with this legacy is unsustainable – Mining companies have and will continue to work and engage constructively Resolution is critical to the environment we share Resolution is critical to the recovery of mining in Gauteng A Solution has been presented by the mining companies and WUC – Presented to Government in 2009/2010 Economically viable and able to attract external funding – (reduces reliance on State and new mining companies) – Rejected by DWA and in IMC report – Government now in control – Opportunity for mines contribution diminishing