The proposed AlloyStream Manganese Project at Metalloys, Samancor Meyerton Works. Reference Number: GAUT 002/07-08/N0553

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1 Aim f the Prject The prpsed AllyStream Manganese Prject at Metallys, Samancr Meyertn Wrks. Reference Number: GAUT 002/07-08/N0553 The prpnent applying fr the Envirnmental Impact Assessment (EIA) authrisatin is Samancr Manganese (Pty) Ltd (Metallys). Samancr Manganese (Pty) Ltd in cnjunctin with Exxar Resurces (Pty) Ltd have frmed a jint venture (AllyStream Manganese Jint Venture) in rder t cnstruct and perate an AllyStream TM technlgy furnace t prduce manganese ally cmmercially. The AllyStream Manganese Plant will be an 8.5 MVA gas / inductin furnace that will prduce manganese ally. In terms f the Natinal Envirnmental Management Act (N 107 f 1998) Regulatin N. R. 386 & 387 (21 April 2006) and thrugh cnsultatin with the Gauteng Department f Agriculture, Cnservatin and Envirnment (GDACE) the prject requires an Envirnmental Impact Assessment (EIA) t btain envirnmental authrisatin. Cymbian Envir-Scial Cnsulting Services have been appinted as the independent envirnmental cnsultant, t manage the Envirnmental Authrisatin Prcess. This prcess includes the cnsultatin with parties that may be affected by, r have an interest, in the prject. Purpse f this dcument: Prvide Backgrund Infrmatin regarding the prject. Prvide an utline f the prcess being fllwed in cnducting the Envirnmental Impact Assessment (EIA) Prcedure. Infrm members f the public f their rights and respnsibilities regarding participatin in certain parts f the EIA Prcedure. Infrm the public f the bjective evidence surrunding the perceived impacts f the prpsed prject. Assist the public t frmulate their cmments in a manner that will ensure that they can be affrded due attentin in certain parts f the EIA prcedure. Kindly cmplete the attached frm and return it t the relevant Cymbian Envir-Scial Cnsulting Services representative befre the 30 th September 2007: Cymbian Envir-Scial Cnsulting Services Knrad Kruger P.O. Bx 1676, Cresta, 2118 Jhannesburg, Suth Africa Tel : (011) Fax : knrad@cymbian.c.za Backgrund Infrmatin Lcatin Metallys, Samancr Meyertn Wrks, is lcated near the twn f Meyertn in the Vaal Triangle, apprximately 70km suth f the Jhannesburg Central Business District. The prpsed AllyStream Manganese Plant will be lcated within the Samancr Meyertn Wrks, immediately west f the R59. The plant culd be lcated n either Prtin 4, 15, 63 r 74 f the farm Kkfntein 545 IQ and can be reached frm the R551, ff the R59. The Samancr Meyertn Wrks falls within the jurisdictin f the Midvaal Lcal Municipality, which frms part f the greater Sedibeng District Municipality. Fr the lcatin f Samancr Meyertn Wrks, including the alternative furnace lcatins, refer t Figure 2. Existing Land Use The current land use f the Samancr Meyertn Wrks is heavy industrial. Surrunding Land Uses The land use surrunding Samancr Meyertn Wrks is industrial, agricultural and residential. Alternative Lcatins As part f the Scping and EIA investigatins five site alternatives are being investigated fr the prpsed plant. Please refer t Figure 2 fr a lcality map f the different site alternatives. AllyStream Manganese Plant - Backgrund Infrmatin Dcument Cymbian Envir Scial Cnsulting Services 1

2 What des the prject entail? The prject will entail the cnstructin and peratin f the AllyStream Manganese Plant and will cmprise f: Raw Materials Handling equipment. An 8.5 MVA gas / inductin furnace. A delivery system, including: Metal & Slag handling. Off-Gas handling system. Secndary dust and fume handling system. Service equipment, such as: Cling water system. Electrical supply system. Cntrl system. Prcess verview The AllyStream Manganese Plant utilises the AllyStream pyr-metallurgical technlgy t prduce manganese ally frm manganese re fines. AllyStream is nt cmpeting with the existing manganese ally smelting technlgy, but rather cmplements these plants. It is expected t make a ntable cntributin twards the imprved utilisatin f Suth Africa s mineral wealth by allwing the beneficiatin f res that previusly had limited use in traditinal smelting technlgies. The feed materials fr the AllyStream prcess cmprise f re, cal and flux. The feed material is fed t the furnace similar t the methd used by the established manganese ally submerged arc furnace industry. The main difference between AllyStream and ther technlgies is that AllyStream can prcess previusly unused resurces. Inside the furnace the re, cal and flux is heated. Carbn frm the cal reacts with the irn and manganese xides t frm the manganese ally. The gangue in the feed material melts t frm liquid slag. Metal and slag is tapped frm the furnace while gas and dust is cntinuusly extracted and cleaned with an ff-gas bag filter. Heat fr this high temperature prcess is supplied as a cmbinatin f electrical energy and chemical energy. Prcess gasses are cmbusted inside the furnace t ptimise energy utilisatin and t ensure that prduct gas frm the prcess has the minimum impact n the envirnment. Prcess t be fllwed In terms f Gvernment Ntice Regulatin 387 f the Envirnmental Impact Assessment (EIA) Regulatins (2006), prmulgated in terms f Sectin 24(5) f the Natinal Envirnmental Management Act (N. 107 f 1998), the prpsed develpment is subject t a Scping and EIA Prcedure, which entails the fllwing: Public Participatin Prcess as described in Regulatin 56 f the EIA Regulatins, 2006; Identificatin f ptential envirnmental impacts; Cmpilatin f a Scping Reprt in accrdance with Regulatin 29 f the EIA Regulatins, 2006; Cmpilatin f an Envirnmental Impact Assessment Reprt in accrdance with Regulatin 32 f the EIA Regulatins, 2006; Undertaking f Specialist Studies Reprt in accrdance with Regulatin 33 f the EIA Regulatins, 2006; and The cmpilatin f an Envirnmental Management Plan (EMP) in accrdance with Regulatin 34 f the EIA Regulatins, The final EIA reprt will include details n all specialist studies undertaken. This reprt will prvide sufficient infrmatin t facilitate decisin-making by the designated Authrity. Prcess flw diagram f the furnace is shwn in Figure 1. AllyStream Manganese Plant - Backgrund Infrmatin Dcument Cymbian Envir Scial Cnsulting Services 2

3 Authrity Pre-cnsultatin A pre-cnsultatin meeting will be arranged with all relevant authrities. The purpse f the meeting will be t cmmunicate the nature f the prject, and btain guidance frm Authrities in terms f the prject prcess and deliverables. Stakehlder Engagement Initiatin Phase During this phase stakehlder engagement activities will cmmence. This will include the cmpilatin f necessary Backgrund Infrmatin Dcuments (BID s), advertisements, site ntices, and ntificatin letters. The issues raised during this phase will be cllated int a stakehlder database and an issues reprt will be generated. Scping Phase The Scping Phase brings tgether the issues received during stakehlder engagement, and the planning phases f the Envirnment Impact Assessment. During this phase all issues and cmments identified are evaluated, and the Scpe f further studies is determined. The Scping Reprt will describe the stakehlder engagement prcess and will have the Issues Reprt attached fr review by the Authrities. In additin, the Scping Reprt will: Describe the prpsed develpment and reasnable alternatives; Describe the prperty n which the activity is prpsed t take place; Describe the envirnment (at a screening level) that may be affected by the activity and the manner in which the physical, bilgical, scial, ecnmic and cultural aspects f the envirnment that may be affected by the prpsed activity; Identify all legislatin and guidelines that have been cnsidered in the preparatin f the Scping Reprt; Describe the envirnmental issues and ptential impacts that have been identified; Indicate the methdlgy that will be adpted in assessing the ptential impacts that have been identified, including any specialist studies r specialised prcesses that will be undertaken; Detail the stakehlder engagement prcess; and Include all prf f stakehlder engagement. A draft cpy f the Scping Reprt will be made available fr stakehlder review, prir t finalisatin and submissin f the reprt. Envirnmental Impact Assessment The EIA Reprt will include: A detailed descriptin f the prpsed develpment; A descriptin f the need and desirability f the prpsed develpment and the identified ptential alternatives t the prpsed activity; A descriptin f the envirnment that may be affected by the activity and the manner in which physical, bilgical, scial, ecnmic and cultural aspects f the envirnment may be affected by the prpsed develpment; A summary f the findings f the specialist studies; A summary f the methdlgy used in determining the significance f ptential impacts; A detailed assessment f all identified ptential impacts, including a cmparative assessment f identified land use and develpment alternatives; Identified mitigatin measures; Cpies f all specialist reprts will be appended t the EIA reprt; and Any further infrmatin that will assist in decisin making by the Authrities. Specialist Studies The fllwing specialist studies have been identified thus far: Traffic impact assessment; Air quality impact assessment; Health risk assessment; Technical Review; and Nise Impact Assessment. Envirnmental Management Plan (EMP) The EMP will cntain the fllwing infrmatin: Infrmatin n the prpsed management r mitigatin measures that will be undertaken t address the envirnmental impacts that have been identified in the EIA Reprt, including envirnmental impacts r bjectives f: Planning and design; Pre-cnstructin and cnstructin activities; Operatin r undertaking f the activity; Rehabilitatin f the envirnment; and Clsure, where relevant. AllyStream Manganese Plant - Backgrund Infrmatin Dcument Cymbian Envir Scial Cnsulting Services 3

4 A detailed descriptin f the aspects f the activity; An identificatin f the persns wh will be respnsible fr the implementatin f the EMP; Where apprpriate, time perids within which the measures in the EMP must be implemented; and Prpsed mechanisms fr mnitring cmpliance with the EMP and reprting theren. Stakehlder Review prir t Submissin Once cmpleted, the draft reprt including the envirnmental impact assessment and management prgramme, will be made available at public places fr stakehlder review. Cmments frm stakehlders will be utilised t finalise the reprt fr submissin t Authrities. Submissin and Decisin-making The reprt will be finalised and submitted t the varius Authrities fr decisin-making. Their decisin will be prvided in a written Recrd f Decisin (ROD). Once the ROD has been received, an advertisement will be placed in a lcal newspaper, ntifying the public f the ROD and where it will be available t view. Relevant Authrities The authrities respnsible fr administering and implementatin f the abve legislatin are: The Gauteng Department f Agriculture, Cnservatin and Envirnment; The Midvaal Lcal Municipality The Sedibeng District Municipality Department Envirnmental Affairs and Turism; and The Department f Water Affairs and Frestry. Hw can yu get invlved? Register as an Interested and Affected Party by cmpleting the attached cmment respnse frm; Prpse ideas t slve prblems that arise during the cnsultatin prcess; Vice yur cncerns abut prpsals and their ptential impact; and Assist with infrmatin that will cntribute t a thrugh study. The Rles and Respnsibilities f the Stakehlder Registered stakehlders have the right t bring t the attentin f the cmpetent authrity any issues that they believe may be f significance t the cnsideratin f the applicatin. The rights f stakehlder are qualified by certain bligatins, namely: 1. Stakehlders must ensure that their cmments are submitted within the timeframes that have been apprved by the GDACE, r within any extensin f a timeframe agreed by the applicant r Envirnmental Assessment Practitiner (EAP); 2. A cpy f cmments submitted directly t the cmpetent authrity must be served n the applicant r EAP; and 3. Any direct business, financial, persnal r ther interest that they might have in the apprval r refusal f the applicatin must be disclsed. The rles f stakehlders in a public participatin prcess usually include ne r mre f the fllwing: Assisting in the identificatin and priritisatin f issues that need t be investigated; Making suggestins n alternatives and means f preventing, minimising and managing negative impacts and enhancing prject benefits; Assisting in r cmmenting n the develpment f mutually acceptable criteria fr the evaluatin f decisin ptins; Cntributing infrmatin n public needs, values and expectatins; Cntributing lcal and traditinal knwledge; and Verifying that their issues have been cnsidered. In rder t participate effectively, stakehlders shuld: Becme invlved in the prcess as early as pssible; Register as a stakehlder; Advise the EAP f ther stakehlders wh shuld be cnsulted; Cntribute twards the design f the public participatin prcess (including timeframes) t ensure that it is acceptable t all stakehlders; Fllw the prcess nce it has been accepted; Read the material prvided and actively seek t understand the issues invlved; Give timeus respnses t crrespndence; Be respectful and curteus twards ther stakehlders; Refrain frm making subjective, unfunded r ill-infrmed statements; and Recgnise that the prcess is cnfined t issues that are directly relevant t the applicatin. AllyStream Manganese Plant - Backgrund Infrmatin Dcument Cymbian Envir Scial Cnsulting Services 4

5 Figure 2: Lcatin f the prpsed Alternative AllyStream Manganese Prject Sites

6 REGISTRATION / COMMENT FORM PROJECT REFERENCE NO: ESC 167 AllyStream Manganese Plant - EIA PLEASE COMPLETE AND RETURN THIS FORM SO THAT WE HAVE YOUR COMPLETE CONTACT DETAILS Name Pstal Address Street Address: Tel: Cell: Language Preference Clsing date fr cmments: 30 th September 2007 PARTICULARS OF STAKEHOLDER Pst cde: Pst cde Fax DATE: COMMENTS If yu are aware f any peple wh shuld be cntacted in this prcess, please prvide their details here: Please add additinal pages if required. Return t: Knrad Kruger Cymbian Envir Scial Cnsulting Services PO Bx 1676 Cresta 2118 Tel : (011) Fax : (086) knrad@cymbian.c.za