COMMENT AND RESPONSE REPORT (CRR) VERSION 2

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1 APPLICATION FOR ENVIRONMENTAL AUTHORISATION, AN AMENDMENT OF AN ENVIRONMENTAL MANAGEMENT PROGRAMME AND AN INTEGRATED WATER USE LICENCE APPLICATION ON BEHALF OF BHP BILLITON ENERGY COAL SOUTH AFRICA (PTY) LIMITED FOR THE PROPOSED EXTENSION OF KLIPFONTEIN OPENCAST OPERATIONS AND ASSOCIATED CLOSURE OF A SECTION OF THE D253 ROAD STEVE TSHWETE LOCAL MUNICIPALITY, MPUMALANGA PROVINCE MDEDET REFERENCE NUMBER: 17/2/3N-349 COMMENT AND RESPONSE REPORT (CRR) VERSION 2 OCTOBER 2014 This Comment and Response Report was compiled through comments received from stakeholders in response to the following: - Registered notifications to landowners on March 2014; - Background Information Documents ed and posted on March 2014; - Site Notices placed on 19 March 2014; - Advertisements placed in the Middelburg Observer and the Witbank News in March 2014; - Personal visits on 9 April 2014 to landowners who may be directly affected by the proposed project; and - Review period of the Draft Scoping Report, including a public meeting held on 27 September Proposed partial road closure and deviation 1 The potential impacts of air, water, soil pollution have to be assessed. Mr Solly Links, Nkangala District Municipality Registration and Comment Form which was distributed with the BID March These potential impacts will be assessed during the impact assessment phase of the project (Please refer to Section , Section and Section of the FSR). 2 The map provided in the Background Information Mr PR Schoeman, Christo Letter in response to the BID and The comment was noted and

2 Document (BID) does not include the Pullens Hope gravel road. notification of potentially directly affected landowners, 20 March 2014 as well as a personal visit on 9 April the map was updated to include the road (Please refer to Appendix B-2 of the FSR). 3 Attention was drawn to a specific road in the area where road alternatives could be identified. Six chicken houses are situated next to the specific road. Should this private road be used as an alternative, the following would impact chicken farming in the area: - The dust and increased traffic volumes will affect the growth and quality of the chickens. 4 A gravel road will be preferred to a tar road as the tar damages the wheels of tractors and other implements. Some of the tractors do not have wheels but tracks and may legally not use tar roads. 5 Who will maintain the proposed new alternative road? The existing road has been maintained by the farmers. The farmers do not want to maintain the road again. It is strongly suggested that if the mine wants to relocate the road that the mine should maintain the road until the existing D253 road can be rehabilitated. Mr PR Schoeman, Christo Mr PR Schoeman, Christo Mr Jannie Schoeman (Snr), Sancor landowner (Wolvenfontein 471 JS Re 7) Mr PR Schoeman, Christo Mr Jannie Schoeman (Snr), Sancor Mr Solly and Desmond landowner Letter in response to the BID and notification of potentially directly affected landowners, 20 March 2014 as well as a personal visit on 9 April Letter in response to the BID and notification of potentially directly affected landowners, 20 March 2014 as well as a personal visit on 9 April 2014 and again mentioned at the public meeting held on 27 September Personal visit on 9 April 2014 and also at a public meeting held on 27 September Thank you for the comment, this will be taken into consideration in the assessment of alternatives (Please refer to Section 5.3of the FSR). BECSA is aware of the challenges that are posed by a tar road with regards to farming vehicles and tractors. The principle is that the deviated road will have to be similar to the rest of the D253 road. BECSA made a commitment that the road will not be tarred (Please refer to Section 5.3of the FSR). The D253 is a provincial road that has to be maintained by the province. The mine will not make use of any roads outside the mine boundary for hauling coal (Please refer to Section 3.6.4of the FSR). Mr Peter J Masilela, Steve Tshwete Local Municipality 6 A tarred road would be preferred to a gravel road. Mr Solly and Desmond Please refer to response

3 provided in point 4 above (Please also refer to Section 5.3of the FSR). Mr Solly and Desmond Personal visit on 9 April An alternative to the existing D253 road will have the following impacts on their farming operations and personal lives: - Since the alternative will be further removed from the existing road, it will consume more time in travelling, - Higher cost involved for employees to get to and back from work, - Higher cost involved in farming operations. The above will affect them in terms of: a. Transporting 4000 ton of animal feed a month via this route, b. Transporting 600 head of cattle a week on this route, c. Independent customers who collect 70 head per week on this route, d. Market x 10 kg pockets of potatoes on this route, e. Main thoroughfare to Middelburg and beyond, f. Customers collect seed potatoes, x 25kg over a 5 month period, g. Store x 25 kg of seed for 3rd parties over a 6 month period, h. All fertilizer, liquid and dry, gets delivered on this route. We are looking at serious extra km s per month should an alternative route have to be constructed. 8 We would like to be compensated for the additional kilometers travelled. Leasing of land from the mine at a fixed price for ten years (with the option to renew the lease) was mentioned as reasonable compensation. Mr Solly and Desmond Thank you for your comments, these will be taken into consideration during the impact assessment phase. A social impact undertaken to determine the impact on directly and indirectly affected parties in the area (Please refer to Section 5.3 and Section of the FSR). Thank you for your comment. This has been forwarded to the relevant representative from BECSA who will enter into negotiations, where necessary, at the appropriate

4 time (Please refer to Section of the FSR). 9 I need access from and to my farm to the proposed new alternative. Should the alternative be close to the Spookspruit (alternative B4, B5 or B6) I would need proper access with my implements to cross the spruit. 10 Anglo is planning on constructing a shaft on my farm keep in mind that these proposed plans could impact the proposed road alternatives. 11 Concerned about the carbon footprint that the use of the road may have on farming operations. 12 How will we be compensated for the extra time and money for additional kilometers of a new alternative route? Leasing of land from the mine at a fixed price for ten years (with the option to renew the lease) was mentioned as reasonable compensation. 13 The proposed project may affect the following transmission lines: landowner (Wolvenfontein 471 JS Re 7) landowner (Wolvenfontein 471 JS Re 7) Mr Desmond Hyman, SIS Farming Group Mr Jannie Schoeman (Snr), Sancor Adv Ntika Maake and Ms Lungile Motsisi, Eskom Personal visit on 9 April 2014 and telephone call on 10 April Personal visit on 9 April 2014 and written submission on 19 March Written correspondence in response to the distribution of the BID March Thank you for your comment, these will be taken into consideration during the impact assessment phase. A social impact assessment is will be undertaken to determine the impact on directly and indirectly affected parties in the area (Please refer to Section 5.3 and Section of the FSR). Thank you for your comment, BECSA is in contact with Anglo to ensure that both parties are aware of the others current and proposed operations and developments in the area (Please refer to Section 5.3 and Section of the FSR). This will be taken into consideration in the impact assessment phase of the project. An air quality impact undertaken (Please refer to Section of the FSR). Please refer to point 8 above. Noted with thanks. (Please refer to Section 3.4of the

5 Tx s Hendrina Kriel 400kV power line, Distribution FSR). Tx s Hendrina Vulcan 400kV power line. Eskom has no objection against the project provided that the Eskom transmission servitude rights and services are acknowledged and respected at all times. Correspondence explaining the understanding of such rights was provided. 14 How will the road (D253) be diverted? Mrs Dalene Koen, representatives of SIS Farming Public meeting, 27 September The area to the north and west of the proposed extended mining area is currently being considered for alternatives for the road diversion. I&APs are requested to provide their inputs as to what they believe would be the most suitable alternative. Alternatives may involve upgrading of existing roads or the construction of new roads. Alternatives are determined based on the findings of specialist studies this may include engineering feasibility, stability and biophysical assessments. The proposed alternatives will be presented as part of the Draft Environmental Impact Assessment Report (Please refer to Section 5.3 of the FSR). 15 How will the proposed diversion of the road and river diversion affect Anglo American who plans to mine adjacent at the Brown Shaft? Mr Hugo Janse van Rensburg, Goedehoop Colliery (Anglo American) Public meeting, 27 September BECSA will make an appointment to see the relevant people at Anglo American to discuss the proposed plans (Please refer to Section 5.3 and Section

6 3.6.1 of the FSR). Mr Klaas Mashiloane, SIS Public meeting, 27 September Farming Group 16 Should the existing road be closed, how will people staying on the farm be able to travel to Middelburg? Most people on the farm make use of taxi services. The road will only be partially closed and diverted, thus there will always be a road for people to travel on. The diverted option may just be longer (Please refer to Section 5.3 and Section of the FSR). Proposed mine extension Water related matters 1 The quality and quantity of our drinking water on Wolvenfontein 471 RE 7 is critically important to us. Our farm workers drink directly from the fountains on the farm. 2 Mining activities will decrease the quality, quantity and strength of our boreholes and groundwater, including fountains. landowner (Wolvenfontein 471 JS Re 7) Mr PR Schoeman, Christo Letter in response to the BID and notification of potentially directly affected landowners, 20 March 2014 as well as a personal visit on 9 April Thank you for your comment, a Surface and Groundwater undertaken in the impact assessment phase of this project. The findings of these studies will be available as part of the Environmental Impact Report which will also be made available for I&AP comment (Please refer to Section and Section of the FSR). Thank you for your comment, a Surface and Groundwater undertaken in the impact assessment phase of this project. The findings of these studies will be available as part of the Environmental Impact Report which will also be made available for I&AP comment (Please refer to

7 Section , Section , Section and Section of the FSR). 3 It is assumed that the proposed mining activities will destroy the pan (Laastepan) which is still of high quality. Could it be investigated from where the pan is fed and what the pan requires to remain healthy? Mr Jannie Schoeman, Sancor Public meeting, 27 September Specialist assessments will be conducted to determine what the potential impact on the pan will be. The findings of the studies will be made available in the Draft Environmental Impact Assessment Report (Please refer to Section , Section , Section and Section of the FSR). Infrastructure, blasting and vibrations 1 Existing blasting has an influence on buildings. We have a seismograph at our offices, but we are not sure that it is still in working condition. 2 We would like a blasting schedule please let us know when and where you will be blasting to ensure safety and security of our employees. Mr Solly and Desmond Mr Solly and Desmond Thank you for your comment. A Blasting and Vibrations undertaken in the impact assessment phase of the project. These findings will be made available to I&APs in the Environmental Impact Report (Please refer to Section of the FSR). Please also refer to response provided in point 6 below. Blasting will only take place during the day between 11:00 and 13:00. A blasting schedule will be made available should I&APs be interested to know when blasting will take place. The BECSA operations landowner

8 liaison representative will also be in touch and will share all relevant information. All landowners that are affected directly are encouraged to get the contact details for this representative and feel free to contact him with all queries and complaints as soon as any arise. BECSA strives to continue to build and maintain relationships with its neighbours (Please refer to Section of the FSR). 3 Mining activities will damage the chicken houses in such a way that it will have to be replaced. Mr PR Schoeman, Christo 4 What will be the blasting schedule? Mr Peter J Masilela, Steve Tshwete Local Municipality 5 What is the blasting radius? Mr Peter J Masilela, Steve Tshwete Local Municipality 6 At properties on SIS Farming s land the residents can feel the vibrations and they noted that their houses are cracking. Mr Klaas Mashiloane, SIS Farming Group and Dalene and John Koen, SIS Farming Group Letter in response to the BID and notification of potentially directly affected landowners, 20 March 2014 as well as a personal visit on 9 April Public meeting, 27 September Public meeting, 27 September Public meeting, 27 September Thank you for your comment. A Blasting and Vibrations undertaken in the impact assessment phase of the project. These findings will be made available to I&APs in the Environmental Impact Report (Please refer to Section of the FSR). Please refer to response provided in point 2 above. The official legal blasting radius is 500 meters (Please refer to Section of the FSR). The contact details of Mr Christian Peter (BECSA) were made available to the I&APs for further discussion. They were requested to contact Mr Peter as soon as possible for a meeting. They were also

9 requested to write down the dates and times when vibrations / cracking was experienced. A blasting and vibration specialist study will be conducted in the Impact Assessment phase. This study will provide information on the existing status as well as on the potential impacts that future blasting may have (Please refer to Section of the FSR). Dust and fly-rock 1 Berms to protect us from fly-rock and dust are required between our farms and the mining operations. We are already experiencing problems with damage to our tractors because of the fly-rock. In addition to the berms, Bluegum (Eucalyptus) or Karee trees could be planted to reduce dust. 2 Has BECSA done any investigations with regards to the impact of dust on crops? If not, please investigate the matter. Refer to investigations done by Dr Rickus Klopper (Pannar). Mr Jannie Schoeman (Snr and junior), Sancor landowner (Wolvenfontein 471 JS Re 7) Thank you for your comment. These will be taken into consideration during the impact assessment phase where mitigation measures will be proposed to reduce and minimize negative impacts (Please refer to Section and Section of the FSR). Mr Jannie Schoeman, Sancor Public meeting, 27 September Blasting causes huge incidents of dust and BECSA is aware of previous similar complaints from farmers about dust. Mr Schoeman was requested to liaise with Mr Mzwakhe Skosana of BECSA who has previously been involved with similar complaints. An Air Quality undertaken to assess potential dust impacts.

10 Continuous monitoring is done by BECSA to determine potential air pollution (Please refer to Section and Section of the FSR). General 1 When does BECSA plan to commence mining in the proposed extended area? 2 We experience huge problems with theft and an increased mining footprint may even amplify the problem. Mr Hugo Janse van Rensburg, Goedehoop Colliery (Anglo American) Mr Jannie Schoeman (Snr), Sancor. Public meeting, 27 September Pending the required authorisations and applications, the proposal is to begin mid 2016 (Please refer to Section of the FSR). Thank you for your comment. A Social Impact Assessment will be undertaken in the impact assessment phase of the project where current and potential future theft associated with the project will be investigated (Please refer to Section of the FSR).