BACKGROUND INFORMATION DOCUMENT SEPTEMBER 2014 MDEDET REF NUMBER: 17/2/3N-389

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1 ENVIRONMENTAL AUTHORISATION PROCESS AND APPLICATION FOR REQUIRED LICENCES FOR THE PHOLA COAL PROCESSING PLANT, EMALAHLENI LOCAL MUNICIPALITY, MPUMALANGA PROVINCE BACKGROUND INFORMATION DOCUMENT SEPTEMBER 2014 MDEDET REF NUMBER: 17/2/3N-389 What does this document tell you? This document provides Interested and Affected Parties (I&APs) with information on the environmental authorisation process, and the necessary licenses required for the Phola Coal Processing Plant. You are encouraged to read this document carefully as it provides you with information relating to: Background of the Phola Coal Processing Plant, The required environmental authorisations and licenses; Phola Coal Processing Plant is an existing coal washing facility located approximately 2 km west of Ogies within emalahleni Local Municipality, Nkangala District in Mpumalanga Province. (Refer to the attached locality map). Phola Coal Processing Plant was constructed in 2009 as a joint venture between Billiton Energy Coal South Africa (BECSA) and Anglo American Thermal Coal (AATC) to wash and sort coal from the Klipspruit and Zibulo Collieries. The washed coal from the plant is transported by truck, overland coal conveyor or rail to its next destination either for exporting or in future to the Kusile power station. The plant has a capacity to wash approximately 16 million tons of coal per annum. Phola Coal Processing Plant has been registered as a separate land management area and a business entity which will is wholly owned by Phola Coal (Pty) Ltd (Phola Coal). The current services offered by the Phola Coal Processing Plant will remain the same. The change of ownership of the plant was completed on 17 July The Public Participation Process to be undertaken; and How you can become involved as an Interested and Affected Party for the Phola Coal Processing Plant. PUBLIC PARTICIPATION ENQUIRIES: Anelle Lötter or Sibongile Bambisa PO Box 1434 Rivonia 2128 Tel: , Fax: anelle@jaws.co.za/ What is a coal processing plant? A coal processing plant is a facility that washes coal of soil and rock thus preparing it for the end user or for a coal fired power station. 1

2 As part of the process of becoming an independent business entity, Phola Coal has to ensure that all the required environmental authorisations and licenses are transferred to the new entity and that any new activities are authorised in order to operate legally. Due to the previous business arrangement, Phola s operations were authorised and licensed under that of either AATC or BECSA. Phola Coal now intends to extract all Phola Coal related information from the Klipspruit Mine Environmental Management Programme (EMP) and Integrated Water Use License Application (IWULA) (License No, dated the 12/04/2006) in order to compile a standalone EMP and an IWULA for its operations, as well as amending the authorisations to include new infrastructure. The additional infrastructure required at the plant comprises the following activities: New sewage treatment facility; Increased number of buildings including a Thickener and a Flotation Plant; Interface with New Largo/ Kusile overland conveyor project; Borehole for emergency potable water storage; Potential Silt Trap; and On Klipspruit property: North Dam closure and new dam to accommodate storm water. The above mentioned activities require the necessary environmental authorisation and licenses. As such, Phola Coal has appointed Jones & Wagener (Pty) Ltd as an independent Environmental Assessment Practitioner (EAP) to conduct the amendment of the existing authorisations and the necessary public participation process. The required environmental applications have been submitted to the relevant authorities. Amending existing environmental authorisations for the Phola Coal processing plant and constructing additional infrastructure triggers several requirements of legislation, these are summarised below. In an aim to reduce stakeholder fatigue, the legal processes will be undertaken concurrently and an integrated public participation process will be conducted. The following legal processes will be undertaken for Phola Coal: Amendment of the approved IWULA in terms of the National Water Act, (Act No.36 of 1998) (NWA); and Conducting a Scoping and Environmental Impact Assessment (S&EIR) in relation to triggered activities listed under Listing Notices 1 and 2 of the National Environmental Management Act, (Act No 107 of 1998) (NEMA). The feasibility of a dedicated plant silt trap will be investigated as part of this process. If the silt trap is proven feasible, this activity will trigger activities published in terms of the NEM:WA. This will be confirmed by the end of the Scoping Phase. NATIONAL WATER ACT (NWA) Klipspruit mine has an approved IWUL that includes components of the Phola Coal Processing Plant, which need to be transferred into a standalone Phola Coal IWUL. As such, the Klipspruit IWUL will be amended to include information relevant to Phola Coal. In addition, all the proposed expansion activities that trigger an IWUL will also be included in the amendment process. The construction of 2

3 some additional infrastructure will trigger activities listed under Section 21 of the NWA. Refer to Table 1 below for the proposed activities that will require licensing: Table 1: Activities that require licensing in terms of the NWA Section 21 Water Use Section 21 (a) - Taking water from a water source. Section 21 (b) - Storage of water. Section 21(c): Impeding or diverting the flow of water in a watercourse; and Section21 (i): Altering the bed, banks, course or characteristics of a watercourse. Section 21(g): Disposing of waste in a manner which may detrimentally impact on a water resource Description Abstraction from a borehole for emergency potable water. With regards to the existing balancing dam, the pollution control dam, the storm water dam, the South silt dam, the clarifier tank and the thickener/slurry dams on-site. Increasing number of buildings. Additional thickener and Interface with New Largo. Also regarding the pollution control dam and the thickener/slurry dams. NATIONAL ENVIRONMENTAL MANAGEMENT ACT (NEMA) Although additional proposed activities for Phola Coal are included in the EMP amendment process, certain activities trigger listed activities in terms of the NEMA EIA regulations. The proposed construction of additional infrastructure at Phola Coal will trigger a Scoping and Environmental Impact Asessment (S&EIR) process. Refer to Table 2 for triggered activities in terms of NEMA. Table 2: Listed activities as per NEMA EIA regulations No. & date of the relevant Activity notice number Description of listed activity No. 544 of June The construction of facilities or infrastructure exceeding metres in length for the bulk transportation of water, sewage or storm water- (i) with an internal diameter of 0,36 metres or more; or (ii) with a peak throughput of 120 litres per second or more, excluding where: (a) such facilities or infrastructure are for bulk transportation of water, sewage or storm water or storm water drainage inside a road reserve; or (b) where such construction will occur within urban areas but further than 32 metres from a watercourse, measured from the edge of the watercourse. No. 544 of June (ii) The construction of channels where such construction occurs within a watercourse or within 32 metres of a watercourse, measured from the edge of a watercourse, excluding where such construction will occur behind the development setback line. No. 544 of June The construction of facilities or infrastructure for the off-stream storage of water, including dams and reservoirs, with a combined capacity of cubic metres or more, unless such storage falls within the ambit of activity 19 of Notice 545 of No. 544 of June (ii) The construction of a road, outside urban areas where no reserve exists where the road is wider than 8 metres. No. 544 of June The expansion of existing facilities for any process or activity where such expansion will result in the need for a new, or amendment of, an existing permit or license in terms of national or provincial legislation governing the release of emissions or pollution, excluding where the facility, process or activity is included in the list of waste management activities published in terms of section 19 of the National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) in which case that Act will apply. This activity is triggered due to the amendment of the IWUL No. 544 of June (ii) The widening of a road by more than 6 metres, or the lengthening of a road by more than 1 kilometre where no reserve exists, where the 3

4 No. & date of the relevant notice Activity number Description of listed activity existing road is wider than 8 metres, excluding widening or lengthening occurring inside urban areas No. 545 of June The construction of facilities or infrastructure for any process or activity which requires a permit or license in terms of national or provincial legislation governing the generation or release of emissions, pollution or effluent and which is not identified in Notice 544 of 2010 or included in the list of waste management activities published in terms of section 19 of the national Environmental Management: Waste Act, 2008 (Act 59 of 2008) in which case that act will apply. No. 545 of June The construction of railway lines, stations or shunting yards, excluding- (i) railways lines, shunting yards and railway stations in industrial complexes or zones; (ii) underground railway lines in a mining area; and (iii) additional railway lines within the reserve of an existing railway line. No. 545 of June Physical alteration of undeveloped vacant or derelict land for residential, retail, commercial, recreational, industrial or institutional use where the total area to be transformed is 20 hectares or more, except where such physical alteration takes place for: (i) linear development activities; or (ii) agriculture or afforestation where activity 16 in this Schedule will apply. No. 545 of June The construction of a dam, where the highest part of the dam wall, as measured from the outside toe of the wall to the highest part of the wall, is 5 metres or higher or where the high-water mark of the dam covers an area of 10 hectares or more. STUDIES The intention is to apply for the above authorisations and licences in an integrated manner using stakeholder inputs and existing specialist studies for the various applications. Several specialist studies have been undertaken in the study area and will be used to determine the status of the existing environment and to assess the potential impacts associated with the proposed activities for Phola Coal. Specialist studies include: Conceptual Engineering Design of new facilities; Geohydrological studies; Updating of the Surface water study; Updated Water Balance; and Existing Wetland and Biodiversity baseline assessment. PUBLIC PROCESS The public participation process is an integral part of the environmental authorisations for the proposed activities for the Phola coal processing plant. It is through the public participation process that I&APs are afforded with an opportunity to participate in a meaningful way. I&APs will receive project information for review and comments. Comments will be considered and responded to as the study progresses. Figure 1 on the next page, illustrates the public participation steps that will be undertaken in support of the above mentioned legal processes for the Phola coal processing plant. 4

5 Figure 1: Technical and public participation steps to be undetaken in support of the environmental authorisations and licences for the Phola coal processing plant Technical Process Public Participation Process Submission of Application Forms to MDEDET, DEA & DWA and obtain reference numbers Compile Draft EIA Report, and possibly a Waste Management Licence (WML) Report Identify I&APs and key stakeholders and develop a stakeholder register Announce the project with: BID; Adverts; and Site notices Collate comments in Comments and Response Report (CRR) Submit Final EIA Report, EMP and WML Report to DEA and MDEDET. Notify I&APs of the availability of the Draft Scoping report, EIA Report and WML Report for their comments Update CRR with comments Compile draft Water Use Licence Application Report and make available for public comment Notify I&APs of the availability of the Final Scoping, EIA, EMP and WML Reports as well as the Draft IWULA Report Submit Final Water Use Licence Application Report to DWA Notification of I&APs of the authorities decision via fax, letters and s Your comments and registration as an interested and affected party are important The purpose of an EIA and the associated licensing processes is to provide the decision-making authorities with sufficient information on which to base their decision to grant or refuse an environmental authorisation and if, granted to define conditions for the development. The contributions made by stakeholders from all sectors of society will ensure informed decision-making. You are invited to participate freely and to submit any comments or information you feel may be useful to the EIA process. Registered interested and affected parties (I&APs) are entitled to comment, in writing, on all written submissions and to bring to the attention of the public participation office and the competent authority, any issues which the party believes may be of significance to the consideration of the application. You have to register as an I&AP to receive further notices about public meetings and details of public review of reports produced as part of the EIA and license application processes. Public review of draft Water Use Licence Application Report and notification of authorities decision 5

6 REGISTRATION AND COMMENT FORM APPLICATION FOR AN ENVIRONMENTAL AUTHORISATION PROCESS AND APPLICATION FOR REQUIRED LICENCES FOR THE PHOLA COAL PROCESSING PLANT, EMALAHLENI LOCAL MUNICIPALITY, MPUMALANGA PROVINCE emalahleni Local Municipality, Mpumalanga Province MDEDET REF NUMBER: 17/2/3N-389 Please complete this form and return it to Jones & Wagener to ensure that you are registered as an Interested and Affected Party. By answering the questions below you will assist us in developing a better understanding of your information requirements and concerns regarding the proposed project. Additional pages may be attached to the registration form should this be required. Personal information First Name and Surname: Please indicate whether you are registering as a Community / Organisation / Farm or Business and provide the name: Physical address: Telephone: Cell: General interest in the project Do you have any specific comments regarding the proposed project? Do you have any specific concerns associated with this project (for example: water, soil, pollution, cultural or historical)? If you know of anyone who should be informed about the proposed project, please provide their contact details: First Name and Surname: Community / Organisation / Farm: Address: Method of correspondence Telephone: Fax: Cell: What is your preferred method of correspondence Post Fax Kindly complete this form and return to: Jones & Wagener (Pty) Ltd Engineering and Environmental Consultants Sibongile Bambisa / Anelle Lötter, P O Box 1434, Rivonia, 2128, Tel: (012) , Fax: (012) , sibongile@jaws.com /anelle@jaws.co.za 6

7 29 0'0"E Phola Coal 29 0'0"E J&W JOB NUMBER: D 586 REV NO Ver 1 DATE DRAWN: 28/07/2014 AUTHOR: K. Kruger PROJECTION WGS 84 LO 29 Phola Coal Site Meters : ²