1 CONCISE UPDATE ON ACID MINE DRAINAGE IN THE WITWATERSRAND April 2012 UPDATE BY Mr. MARIUS KEET

2 Background / Introduction Inter-Ministerial Committee (IMC) on AMD first convened on 1 Sep 2010 DWA and DMR DGs appointed a Team of Experts (DWA, DMR, CGS, CSIR, WRC, MINTEK and academic reviewers) to conduct a situation assessment Team of Experts (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

3 Background / Introduction DWA appointed TCTA as Implementing Agent on 6 Apr 2011 to: Install pumps for mine water extraction Construction of on-site treatment plants with option to refurbish existing plants Convey treated water to nearby watercourse Facilitate operation of pumps and treatment plants TCTA appointed PSPs to undertake Due Diligence on Wits AMD Due Diligence report finalized on 7 July specified immediate and short-term solutions for Wits AMD

4 Immediate solution Construction works nearing completion Stage 1 commissioning of treatment plant by 20 April 2012: increase treatment capacity from 12 to 24 ML/day Stage 2 commissioning by end-April 2012: achieve maximum capacity of ~35 ML/day Agreements with Rand Uranium (treatment plant) and Mogale Gold (sludge disposal) to be finalised by end-April 2012

5 Short-term solution Four (4) bids for short-term solution received by the TCTA Evaluation of bids to be finalized by 20 April 2012 TCTA to follow internal bid adjudication approval processes Based on current funding (R433 million), TCTA will recommend plausible options to DWA Current funding limitations may imply a phased (modular) implementation of short-term solution TCTA intend to award bid by mid-May 2012 Construction projected to commence by end-May 2012

6 Long-term feasibility study PSP team appointed in January Contract period 13 Months until 28 February Study objective: o 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. Study registered with National Treasury’s PPP unit. Processes followed is flexible and will enable conventional implementation as well as implementation through Public Private Partnership or Public-Public Partnership.

7 Long-term feasibility study (continue) Study status: o Team mobilised. o Data collection continuous. o Key stakeholders Identified: engagement well advanced. o Two Study management meetings held. o Meetings held with key stakeholders for eg. Federation for Sustainable Environment, Universities, Rand Water, Treasury, etc. o Study Stakeholder Committee meeting scheduled for early May and members invited.

8 Long-term feasibility study (continue) Initial findings regarding Implementation: Urgency of implementation of desalination of AMD is driven by the possible reduced assurance of supply in the Vaal River System by 2014/15 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 will be needed: o ie parallel activities such as EIA, and rapid Procurement procedures, etc. will be required. Dedicated project officer unit in DWA to be considered to coordinate different activities during rapid implementation. Close coordination with National Treasury will be required for any PPP processes

9 Long-term feasibility study (continue) First steps for Request for Proposals: Call for registration is in the process to be issued in order to enable possible service providers to register interest in providing services such as: o Technology solutions, o Funding for implementation, o Providing Treatment processing Plant o Providing Operations and Maintenance of AMD infrastructure Care is taken that this call for registration will not compromise prescribed procurement processes.

10 Current Mine Water Status Basin Mine water level (metres below surface) [mbs] Environmental critical level (ECL) (mbs) Est. date to ECL EasternFeb 2012=588290Jun 2014 CentralMarch 2012=353174Jun-Jul 2013 WesternAt surface160 ECL currently breached resulting in surface decant ECL – The highest level that mine water can be allowed to rise in the mine void before adverse environmental impacts can be detected