SADC Industrialisation Week Mine Water Coordinating Body 1 August 2017
Mining Industry In 2015, the South African mining industry contributed: 7.7% to GDP Around 15% to FDI 20% of private investment 1,4 million jobs 25% of exports Sector contributions to mining minerals exports in SA (2014) Source: Chamber of Mines estimates, StatsSA
Coal Mining in South Africa South Africa is home to 3.5% of the world s coal resources 3.3% of the world s annual total production Contributes 6% of global exports Ranked 6th in the list of coal-exporting nations In 2014, South Africa produced 260Mt ROM coal Local sales - 182.7Mt Exports sale - 69.6Mt, Coal provides 81% of the power generated within SA Sasol mines approximately 40Mt of coal a year for liquid fuels and petrochemicals industries (not included in the above figures)
Challenges Activities of the mining sector can have serious environmental consequences Mine water management Open pit rehabilitation In areas of concentrated mining activities There are cumulative impacts such as pollution Regional impact rather than a single operation e.g. Mpumalanga Coalfields, Wits Goldfields Stricter mine closure legislation
Collaborative Platform Establishment of public-private collaborative platform Opportunity to address long-term mine water management and closure challenges Environmental, social and economic challenges Initial focus on the Mpumalanga Coalfields 30-40 years remaining Life of Mine DWS see this as a model for other mining regions in SA, if proven successful
How can sustainable mine closure be achieved?
Production Re-industrialisation Time
Mpumalanga Coalfields Existing Infrastructure road, rail and power Existing towns and labour force Supporting industries Proximity to markets Large tracts of available land Water availability
Existing infrastructure Road, rail and power Roads Extensive road networks linking the various mines, local industry and towns N4 (Pretoria and Mozambique) N12 (Johannesburg) Rail Extensive rail linking mining operations Main rail to Richards Bay port Along main line between Gauteng and Mpumalanga
Existing infrastructure Power Main Eskom 400 kv line Extensive network of powerlines for mine operational needs 22 kv and 6KV lines ideal for heavy industry
Infrastructure opportunities New Power Generation Location of main source of national grid Possible opportunity for alternative energy generation to feed into grid
Buildings and infrastructure Extensive buildings currently used by mining operations e.g. office blocks, workshops, process plants etc. Can be repurposed
Existing towns Established towns - Emalahleni and Middelburg Existing municipal infrastructure Can be easily expanded Available housing for labour force
Labour Force Existing skilled to unskilled labour force Reskilling will form part of closure requirements Social & Labour Plans Easily attract required skilled labour
Supporting industries Existing industry and businesses that serve the mining industry and towns Able to provide necessary resources and inputs e.g. Steel manufacturing and light industry
Proximity to markets Johannesburg & Pretoria Mbombela (Nelspruit) Mozambique
Land The mining industry, cumulatively, owns thousands of hectares of land Various potential land uses High quality agricultural to industrial uses Green Engine Project
Water South Africa is a water scarce country Mpumalanga coalfields have excess mine water Quality ranges from: slightly contaminated (elevated salts e.g. SO4) to Highly contaminated (low ph, high metals and salts) Potential to use existing qualities for agricultural and industrial uses in some cases Mine water for Irrigation Project Regional water treatment schemes will treat water to potable standards Arnot Water Scheme
Conclusion Collaboration between the mining industry and potential future industries Mine closure does not mark the end, but rather the beginning of new opportunities