Rehabilitation of historical source areas and future mitigation projects December 2014

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ENVIRONMENTAL MANAGEMENT Vanderbijlpark Works Rehabilitation of historical source areas and future mitigation projects December 2014 1 1

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3 Air Quality Emission reductions from point sources

Air Quality Emission reductions Projects implemented regarding emission reduction of 82% 2005 to 2006: The reduction from 2005 was as a result of the stoppage of dosing with Spent Pickling Liquor (SPL) at the Sinter Plant in 2006. 2006 to 2007: Increase in total emissions due to introduction of Direct Reduction, Kilns 5 and 6. 2007 to 2008: The slight variation between 2007 and 2008 is attributed to plant operations and improved quantification of emissions. The coke oven stack emissions were, for example, monitored in opacity percentages which were converted to mg/nm 3 readings in the inventory. The conversion factor influences the calculation significantly and was refined from 2008 onwards. 2008 to 2009: This reduction was mainly due to the reduction of Sinter plant dust emissions (operational changes), taking out of operation Coke Battery #1, general improvement in performance of abatement equipment, and lower production levels due to the global economic recession. 2009 to 2011: Increased production from 2009 2011 constituted the slight increase of total dust emissions. 2010: The Coke Oven Clean Gas and Water project was implemented 2011 to 2012: The Sinter bag house is one of various projects that were commissioned in 2012 as part of our planned improvements. The particulate emissions from the Sinter main stack were the single biggest point source on site. The installation of abatement equipment to capture emissions from the stack was finalized and commissioned in October 2012. This project reduced the dust load for the Sinter plant by 93%. 2012: Installation of bag house at the Foundry to supplement removal of particulates from emissions 2012 to 2013: Lower emissions due to: Shut-down of Coke Battery #3; reduced production due to the OSM fire; BF D off due to OSM fire, EAF only operational for 45 days in 2013 4

Air Quality Focus areas Fugitive Emissions Raw material handling Tippler stations investigate enclosure of areas and improve extraction system Sinter mixing bed investigating to spray cover layer onto bed Conveyer systems minimise upset condition to prevent spillages Waste handling enclosed tanker has been delivered. Subsequent to investigation the conversion of railway wagons into tanker principle. Upgrade pugmills and install socks at discharge points Unpaved roads (160 000m 2 ) Investigate two possibilities to improve dust suppression: Dust suppression onto roads project completed BOF/Kiln dust as a concrete for unpaved roads Paved roads ongoing sweeping with vacuum machine Install curbing alongside paved roads Open areas Have vegetated approx. 470 hectares of open areas Plant fugitive dust improve dust extraction points and efficiency 5

General focus points continue Waste Management Reduction of disposal cost to Holfontein 2012 12465 tons 2013 6632 tons (R 7 582 900 saving) 2014 5451 tons (R 1 653 400 saving) Other waste minimisation projects BOF/DR waste streams to be converted into concrete for road application BOF E & F reclamation Investigate briquetting for recycling of waste as a input material Ground water management Remediation of groundwater impact sources (Maturation ponds, CETP, old Disposal site) Continue to pump and treat through seepage drains Seepage drains at the old disposal site and south eastern corner. Cost effective remediation Storm water management Busy with Water Use License Review Finalising cleaning and sloping of areas to improve storm water flow management Process water management Addressing non Zero Effluent discharge status 6

4. Environmental impact areas associated timeframes with Risk Assessment Report 2003 Management area Time schedule Current status quo Perimeter & surrounding areas 2005 Some cleanups Ongoing Target date (depending on funds approval) Existing disposal site 2018 80% completed Final phase 2017 and completion 2018 Dam 10 2010 Completed in 2012. Deviated from MP original suggestion. Completed 2012 S/E slag and open veld areas 2013 Completed 80%. Cleared southern site area and removed historical ramp 2013. 2014 delay due to reusable material still lying in area Overall CRMF 2013 Completed 2014. Completed X Rietkuilspruit & Rietspruit canal 2012 Completed 2011 Ongoing erosion management Maturation ponds 2017 Total dam area - 80% completed. Dam 2 & 3 completed. TETP & MTP area 2007 Completed 2005. Ongoing challenges to maintain Zero Effluent Discharge Dams 1-4 2020 Dam dried out. Groundwater assessment completed. Revised remediation plan to be implemented 2015 CPA 2020 Closure of plant Blast furnace dams 2020 Completed 2012 as part of phase 2 old disposal site. Dam 1-2015 2015 upgrade of MTP 2015 awaiting MTP upgrade Completed 7

4. Environmental impact areas associated timeframes with Risk Assessment Report 2003 cont. Management area Time schedule Current status quo Sludge dams 2018 CETP dam 2 completed 2013 CETP dam 1 20% completed Target date (depending on funds approval) Scheduled for 2015 S/W slag area 2016 Busy with clearing of material (skulls) Re-lined area during 2015/2016 Dam 11 2023 10% completed re storm water management. Bust with slag removal to be sold. Scheduled for 2016 Processed material stockpiles 2015 Busy with construction of lined area 1 st Quarter 2015 Raw materials stockpiles 2014 Completed Kiewiet area 2020 Stopped activity. Sloping scheduled for 2015. Exclude possible remediation. Strategy needs to be confirmed after proper assessment. 8