PROGRESS REPORT THE MANAGEMENT OF ACID MINE DRAINAGE (AMD) IN THE WITWATERSRAND MINING REGION Portfolio Committee: Water and Environment Cape Town, May 2012

2 Content of Presentation 1.Background / Introduction 2.Current Mine Water Status Per Basin 3.Ingress Management 4.Technical solutions and Progress 5.Public Participation and EIA Process 6.Budget and Funding 7.Linking Short and Long Term Solutions 8.The Way Forward

3 1. Background / Introduction Inter-Ministerial Committee (IMC) on AMD first convened on 1 Sep 2010 DWA and DMR DGs co-chaired a Team of Experts (DWA, DMR, CGS, CSIR, WRC, MINTEK and, academic reviewers) to conduct a situation assessment ToE findings in Report: ”Mine Water Management in the Witwatersrand Gold Fields with Special Emphasis on Acid Mine Drainage” (IMC AMD Report) accepted by IMC Cabinet approved IMC AMD Report on 9 Feb 2011 DWA tasked to implement certain recommendations in IMC AMD Report DWA appointed TCTA as Implementing Agent on 6 Apr 2011 TCTA appointed PSPs to undertake Due Diligence on Wits AMD – report finalized on 7 July 2011

Ministerial directive – 6 April 2011 Emergency works in Witwatersrand gold fields comprising:  Installation of pumps  Construction of water treatment plants  Release treated water into river system Obtain environmental and regulatory approvals Funding from DWA via National Treasury Advise and assist DWA with O&M model Minister may direct to do more

7 2. Current Mine Water Status Per Basin Basin Mine water level (mbs) ECL (mbs)Est. date to ECL EasternApr 2012 = Jun 2014 CentralMarch 2012 = (400)?Jun-Jul 2013 WesternAt surface160 ECL currently breached resulting in surface decant

3. Ingress Management

Prevention of Ingress DMR appointed Council for Geoscience to: Identify and stop ingress in 7 Basins, including the Western, Central and Eastern Construct the Florida canal to prevent ingress into the Central Basin Investigate the feasibility of additional ingress control measures in the Central Basin Investigate the role of mine residue deposits and open pits as sources of ingress (Western Basin)

4. Technical Solutions and Progress

Design lifespan: 30 to 50 years – concrete structures High-quality submersible pumps and pipe-work: low maintenance, 30 year lifespan Short-term solution to serve as first phase of long-term solution Plant capacity: ECL maintained even during high inflows Site selection: taking long-term solution into account

Implementation of Immediate Solution Upgrade Rand Uranium treatment plant - cater for up to 36Ml/d Implementation agreement with RU Target date – May 2012 Discharge treated water to Tweelopiespruit Co-disposal of sludge to Wes Wits Pit Operating rule: solo until June 2013 then parallel with short-term solution until ECL

Implementation of short term solution New HDS plant to be erected on Rand Uranium property – capacity 35 ml/d Installation of new pumps and pipe work in Rand Uranium Shaft 8 Treated water transferred by pipeline to Tweelopiespruit Sludge disposal at West Wits Pit - duel pipeline Commissioning date – June 2013 ECL level 165 m – February 2014

New HDS plant next to South West Vertical Shaft – capacity 84 Ml/pd CRG Ritz pumps Treated water transferred pipeline to Elsburg Spruit Sludge co-disposal with DRD Gold Commissioning date – April 2013 ECL level 174 m/400

New HDS plant at Grootvlei – 110 Ml/pd Installation of new pumps and pipe work Treated water transferred to Blesbok Spruit Sludge co-disposal at Daggafontein TSF via duel lines Commissioning date – June 2014 ECL level 290m/ mines ?

Water Quality Variable Average water quality across all three Basins HDS plant effluent standard Sulphates4344 mg/ℓ2400 mg/ℓ pH46-9 Iron768 mg/ℓ<1 mg/ℓ Aluminium35 mg/ℓ<1 mg/ℓ Manganese127 mg/ℓ<3 mg/ℓ Uranium0.2 mg/ℓ0.05 mg/ℓ

5. Public Participation and EIA Process

Public meeting notices advertised in newspapers: 3-22 Feb 2012 Site notices: Feb Feb Authorities forum meeting 22 Feb Key Stakeholders Meeting Open days: 25 Feb, 3 March, 10 March 2012 Ongoing one-on-one consultations with downstream landowners and elected community representatives

EIA will be required in terms of the National Environmental Management Act A waste licence is required in terms of National Environmental Management: Waste Act An integrated application has been made to DEA in terms of section 24L of NEMA and section 44 of the Waste Act

Meeting held with DEA to clarify the process 18 October 2011 EIA application was submitted Ref #: DEA/EIA/ /201 1 & 12/12/20/ December 2011 Authorities Site Visit 3 February 2012

EIA Interest Group meeting 22 February 2012 Public Open Days: 25 February 2012 – WB 3 March 2012 – CB 10 March EB 25 Feb – 10 Mar 2012 Scoping Report for public review April EIA for Review November

6. Budget and Funding

AMD1 Operation & Maintenance Cost Description Base Dated - July'11 MonthlyAnnual (R'million) * Western Basin: Immediate (15 months)5 Western Basin: Short Term448 Central Basin: Short Term781 Eastern Basin: Short Term781 Operations & Maintenance22210 * Note: Pumping at the Immediate Solution will cease after 15 months once the ECL level has been reached.

7. Linking Short-term Solution with Long-term Solution

30 Feasibility Study for AMD Long Term- Solution A Feasibility Study (FS) was another recommendation by the ToE, with objective being: Investigate and recommend a feasible long-term solution to the AMD problems emerging in the study area, in order to ensure long term water supply security and continuous fitness for use of Vaal River water The FS will therefore assess suitability of the short-term measures, & in what way they can be incorporated or adapted into long-term solution

31 Progress on the Feasibility Study PSP team appointed in January Contract period 13 Months until 28 February Study registered with National Treasury’s PPP unit. Processes followed to allow conventional implementation as well as implementation through Public Private Partnership or Public- Public Partnership.

32 Long-term feasibility study (continue) Study status: o Team with expertise mobilised. o Data collection continuing. o Key stakeholders Identified & engagement well in advance. o Two Study management meetings held. o Consultative meetings held with individual key stakeholders e.g. Federation for Sustainable Environment, Universities, Rand Water, Treasury, etc. o Stakeholder workshop held on 2 & 3 May 2012.

33 Long-term feasibility study (continue) Initial findings regarding Implementation: Serious risk that Vaal River requirement will not be met if Conventional project implementation processes are followed after the completion of the Feasibility Study. Alternate Implementation methods are being considered: o e.g. parallel activities such as EIA, Request for Proposals (RFP), etc. are being looked into. Close coordination with National Treasury will be required for any PPP processes

34 Long-term feasibility study (continue) First steps for Request for Proposals: Call for registration is in the process of being issued in order to enable possible service providers to register interest of providing services so that: o Possible Treatment Technologies/Options are captured, o Process is transparent for all interested & with solutions, o Possible capital & operational financial models can start being conceptualised o Possible management institutional models can start being imagined Care is taken that this call for registration will not compromise prescribed procurement processes.

35 Long-term feasibility study (continue) Status of deliverables: First drafts of reports submitted for consideration by Project Management: – Inception Report. – Assessment of water Quality and Quantity Trends of the Wits Mine voids. – Report on the current status of the Management of AMD. The Feasibility Study’s progress in relation to the ToR, is on track

Monitoring of water quality and quantity on surface and in basins should be upgraded to ensure better decision-making Implementation of all short term solutions should be executed strictly according to agreed timelines Budget constraints will have to be addressed with urgency: bridging the short- and long-term solutions to create acceptable business model Request for Proposals and Feasibility Study will be expedited 8. The Way Forward