N O N - T E C H N I C A L S U M M A R Y

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1 PROPOSED LUBE OIL BLENDING PLANT AT MAURITIUS FREEPORT DEVELOPMENT ZONE, MER ROUGE, PORT LOUIS N O N - T E C H N I C A L S U M M A R Y Project Promoter The project proponent, Sivoko Lubes Ltd, is a private company, registered and incorporated in Mauritius on the 09 th December Sivoko Lubes Ltd is a subsidiary of Sivoko Group which is a world-class manufacturer of automotive springs, bolts and related products. Project Scope The project initiated by the promoter consists of the setting up a lubricant oil or lube oil blending plant, with a capacity of up to 3, 000, 000litres (3, 000m 3 ) of blended oil per annum, within the Mauritius Freeport Zone situated at Mer Rouge, Port Louis. Since the proposed project will be located within the Freeport Zone, it will benefit from all logistics services such as transport, container handling, customs brokering facilities, storage facilities. Project Site The lube oil blending plant will be located within an existing reinforced concrete ndustrial building of area 1500m 2, previously occupied by Innodis Group. The private industrial unit within the Freeport Area is already equipped with logistics, services and back-up facilities such as: (a) (b) (c) (d) (e) (f) (g) (h) water supply domestic sewage disposal electricity supply telecommunications fire-fighting system access loading and unloading areas offices The proposed project is thus ideally located within the Mauritius Freeport Development (MFD) which is largest logistics centre in the Indian Ocean and offers world-class and cost-effective supply chain solutions through a comprehensive range of equipment and facilities which comply with the highest standards in the industry namely EU, HACCP and ISO. I

2 The proposed plant will occupy an area of 1500m 2 within the premises of the MFD which extends over an area of 20, 000m 2. Thus it can be seen that the blending plant will occupy 7.5% of the site. Project Process Description Lubricant oil or Lube oil blending involves mixing and blending of base mineral oil with additives to produce blended lubricating oil such as engine oil and gear oil. A typical lubricating oil product essentially contains 90% - 97% base oil and 3-10% additives. Blending is a batch process which carried out at atmospheric pressure where heating is applied, when required, to increase the miscibility of the base oil and the additives used for the blending process. The temperature is normally raised to about 60 o C to induce the optimum blending. The time taken for a blending process to be complete depends on the product specification and the size of the blend. Incoming base oil for blending is stored in bulk storage tanks within the designated tank area. Base oils are transferred via piping and the blending/mixing process is carried out in various blending kettles located in the Blending Plant. After blending, the lube oil products are filled in pail, drums and bottles. The whole process can be summarized below: Raw Material Logistics: raw materials comprising of base oil and additives are imported from South Africa, United Arab Emirates, China by ship to Port Louis, Mauritius. Storage: the raw material is stored in base oil storage tanks situated immediately outside the plant building, additives are stored in drums inside the premises. Processing: base oil and additives are blended at 60 0 C in blending kettles Quality Testing: quality of lube oil samples are tested and checked at the laboratory Filling and Storage: the quality monitored blended lube oil is filled in different packaging size i.e. bottles, pails or drums and stored Product Logistics: the packed lube oil is then exported as well as supplied to local market Hence the proposed lube blending process can be considered to be a light-industrial activity; it moreover does not involve the utilisation of water for its process. It is thus termed a dry process, and does not generate industrial waste water. Project Size The proposed plant of Sivoko Lubes Ltd. will be designed to produce 10,000 litres of engine oils or hydraulic oil per daily shift of 8 hours and 6,000 litres of gear oil per daily shift of 8 hours. The plant will run on one shift per day and each shift will last for 8 hours. The plant shall therefore have an annual production capacity of 3,000,000 litres of engine oil per annum and 1,800,000 of gear oil per annum. Notwithstanding the above, depending on the actual demand for the products, either locally or overseas, the number of working shifts may be increased. II

3 Project Justification Sivoko Lubes Ltd is a subsidiary of Sivoko Group which is manufacturer of automotive springs, bolts and related products. With the proposed lube blending oil plant, the promoter intends to implement its first plant in Mauritius with the aim of opening up to and accessing the African market. Given the facilities and incentives offered by the MFD as well as its strategic location in the Indian Ocean, the promoter wishes to invest in Mauritius being given that Mauritius has been categorized as being the best country for business and first African country for ease doing business. Most importantly, as per the regional and international trade agreements of COMESA, SADEC, COI offered by MFD, the promoter sees a golden opportunity to facilitate access and export over Africa which is promising market. Project Compliance The promoter will apply for all the required statutory licences and clearances from the different Organisations and Institutions prior to start of operations at the lube oil blending plant. An EIA Licence as defined in the First Schedule (Section 15 (2) Part B Item 4) of the Environment Protection Act (2002) as subsequently amended in Government Notice No 142 of 2006 under the heading Bulk Processing, Storage and Handling of Petroleum Products, Liquefied Gas, Coal and Petro-Chemical Products is thus hereby being applied for. In this respect, an Environmental Impact Assessment of the proposed lube oil blending plant project has been prepared in compliance with the requirements of the Environment Protection Act 2002; it has addressed all the relevant environmental issues which have been duly predicted and evaluated, including the socio-economic factors. Mitigative measures have been proposed to ensure an environmentally-sustainable friendly development and positive impacts have been highlighted. The Freeport Licence will be applied as soon as EIA Licence from the Department of Environment is obtained. Project Impacts The EIA has predicted and identified the following environmental impacts for which the mitigative measures have been discussed and addressed either qualitatively or quantitatively wherever it is meaningful to do so. An environmental matrix is accordingly reproduced hereunder. III

4 Environmental Parameter Prediction of Impacts Mitigation Measure 1. Fire Destruction of Plant, building, equipment Source of physical and bodily damages Provision of fire-fighting equipment Safe and speedy evacuation for workforce. Emergency system will be put in place. Air Emission Fugitive fumes from vehicles exhausts and under wheel action Boiler fumes Fugitive Vapour Minimal From leaks in storage tanks piping Proper vehicle maintenance Regular cleaning of access roads Stack 3 metres higher than building for adequate dispersion Guidelines for air quality to be respected. Regular maintenance Frequency of lid openings at top of tanks kept to a minimum. Noise From construction equipment Limited to working hours only Workers during operational phase Health and safety equipment to workers Water Supply Minimal 0.6m 3 /day Will be readily supplied by MFD from its network Only domestic Health and Safety Impact on workers and personnel Ensurance of safe working conditions Appropriate signage Compliance with MFD health and safety protocol Sensitive Ecological Receptors (River Terre Rouge Estuary Bird Sanctuary) Impacts on migrating birds Process is enclosed Adequate buffer - 70 metres > statutory 30 metres Not in prevailing wind direction Boiler Boiler fumes Provision of stack for dispersion of fumes. Dispersion away from bird sanctuary. IV

5 Climate Change Carbon footprint No requirement for additional land presently under cultivation. No carbon footprint impact. Diesel Storage Accidental spills Damage to tarmac area Immediate detection possible. Diesel tank placed on concrete tray enables immediate leak detection. Flora and Fauna Not significant No special mitigation measure Geology Insignificant No special measure Hydrology and Hydrogeology Impact on bird sanctuary wetland Otherwise no river or marshy land Blending process fully enclosed Buffer of 30 metres respected Climatology Impact on climatological parameters of MFD site negligible Land-based activity Solid Waste Minimal from office use mainly Possibly rejected containers Waste Water Minimal 0.5 m 3 /day Only domestic Security Of high importance to workers and installations Electricity May cause fire hazards May cause electrocution Site Drainage Necessary to avoid flooding of premises No special mitigative measure SETW blow any from bird sanctuary. Readily disposable within MFD solid waste facilities. No on-site manufacture of containers Reject containers will be returned to supplier/manufacturer. Readily dischargeable into MFD sewage network. Provided by MFD MFD Freeport is a restricted area, controlled by security officers. Necessary circuit breakers will be provided Electrical earthing will be provided. MFD storm-water network adequate. V

6 EIA Report This EIA addresses all the required environmental issues pertinent to this project, namely: (i) The environmental aspects of the site [Section 3] (ii) The functional aspects the industrial building and their compliance with prevailing PPG [Section 4] (iii) The technical characteristics of the lube oil blending plant [Section 5] (iv) (v) The provision of utility services (water, electricity, access, site drainage, wastewater treatment and disposal, solid waste management) [Section 6] The prediction and mitigation of the relevant environmental parameters, considered impactful enough to be addressed [Section 7] (vi) The socio-economic aspects of the project [Section 8] (vii) The environmental management and post-project monitoring [Section 9] In the light of evidence compiled above, it can be concluded that the proposed lube oil blending plant will be environmentally compliant and sustainable. Hence, it is expected that the Department of Environment will grant the EIA Licence within the statutory lead-time. VI