Ecosystems and quarry rehabilitation: CSI experience

1. Ecosystems and quarry rehabilitation:CSI experience CSI Forum 2009

2. ‘Local Impacts on Land and Communities’ Key work area identified in CSI Agenda for Action (2009) Remit of Task Force 5, includes Biodiversity Working Group Basic principles: Cement companies become part of local community when exploitation begins Companies must maintain ‘license to operate’ ‘CSI members are committed to ‘a business model that respects, appreciates and cares for both local landscapes and the people who live in them’

3. Stakeholder engagement: Communication Guidebook for Cement Plant Managers (2002) Local impacts: development of ESIA (2005) Biodiversity: development of 2 KPIs on biodiversity (2008) CSI TF5: work to date

4. Environmental and Social Impact Assessment (ESIA) (2005) CSI tool for: Understanding and managing impacts of a site Developing effective options for dealing with impacts For new limestone quarries For cement plant sites: almost impossible to plan ahead for rehabilitation, due to land use changes. Therefore plant site plans need to be developed near closure date Note: companies to look at sites on case-by-case basis

5. Outline Roles and responsibilities Scoping phase / Greenfield site assessment (stakeholder mapping, land use, social structure and population, public health, biodiversity and ecosystems, cultural heritage and landscapes, alternatives) Construction phase (environmental and social impacts, health and safety) Operations phase (environmental and social impacts, occupational health and safety, monitoring and reporting) Site closure (community involvement, future site use, rehabilitation, employment, social structure, post-closure monitoring) Environmental and Social Impact Assessment (ESIA) (2005)

6. ESIA recommendations Rehabilitation plans are most effective when: based on scientific analysis and stakeholder engagement drawn up as early as possible in site development process in conjunction with relevant local stakeholders reviewed periodically

7. Key Performance Indicators Reporting for 2006: Biodiversity KPI updated 2009 (divided into 2): KPI 1: Number of active quarries within, containing or adjacent to areas designated for their high biodiversity value (as defined by GRI EN11) KPI 2: % of sites with high biodiversity value (according to KPI 1) where biodiversity management plans are actively implemented

8. Performance over time CSI members adopting KPI over time Reporting shows improvements over time

9. Key Performance Indicators

10. CSI quarry rehabilitation case studies 21 case studies Reviewed by external experts Published online Links made with UEPG, UNEP, CEMBUREAU

11. Case studies: available online CSI website (www.wbcsdcement.org): Quarry rehabilitation

12. Case studies: available online WBCSD website (www.wbcsd.org) Quarry rehabilitation

13. Votorantim ExperiencesQuarry RehabilitationPlanning Ahead September 1, 2009 Ronaldo Dos Santos - VCNA Joe Horton - VCNA Note: some photos shown on this presentation have the only objective to illustrate the concepts developed.

14. OVERVIEW As previously mentioned quarry rehabilitation plans are most effective for sustainability when developed as early as possible. For existing quarries this presents many constraints and challenges to the planning of this reclamation/rehabilitation and can lead to extreme operational costs, capital expenditures and process issues. However, with early planning quarry rehabilitation can not only lead to improved biodiversity and community welfare but can also provide operational and cost savings both in the near term and future when incorporated into a global Mine Plan. This is most evident in a Greenfield quarry. The following outlines one Case Study of such a Greenfield and the advantages of Planning Ahead.

15. Houston American Cement BACKGROUND • Houston American Cement (HAC) is a Joint-Venture Company managed by Votornatim Cimentos North American (VCNA) a part of Votorantim Cimentos. • HAC is a Greenfeild Project located in the State of Georgia in the United States. Currently HAC has not begun mining but has obtained its necessary licenses for Construction of the Plant.

16. BACKGROUND • Mining activities for this Project were governed by the State of Georgia. Georgia regulations, which requires mines to have a Reclemation Plan and Financial Assurances for the Reclemation Plan. • VCNA approached the Reclamation Plan with a plan of progressive reclamation. This include the input of all stakeholders and focused on the following key objectives: • Meeting and exceeding Regulatory Requirements • Positive and supportive relationship with local community for mining activies • Minimizing environmental risks • Minimizing operational costs, capital costs, and operational issues for the quarry • This process lead to the creation of the HAC progressive reclamation plan (PRP), a result of the combination of the HAC Operational Mine Plan and the proposed reclamation strategies which also aligned with defined site licensing requirements. • This presentation shows the main operational activities for the PRP as outlined below and the benefits each brings to both Sustainabiity and Operations: • Backfilling • Grading and slope stability • Drainage and water management • Revegetation associated with the HAC PRP.

17. SITE CHARACTERISTICS • A key feature of the HAC site as well as a major constraint in the development of the PRP is the occurrence of a large amount of overburden as compared to the relatively thin layer of limestone resulting in a high stripping ratio (averaging 1.7 across the entire mine).

18. SITE CHARACTERISTICS • Although this overburden (twiggs clay) is suitable to be used as a filling material, superficial water management and re-handing issues are important factors of the PRP and its effectiviness. • Approximately seventy years of proven limestone reserves have been quantified on nearly 1,940 acres associated with the mining operations. • The Mining Operations is scheduled to produce the following in the first 10 years: - 1,200,000 t of limestone - 60,000 t of clay - 900,000 t of overburden to be disposed according the PRP. • Walker Pond Stream, the primary stream that bisects the site, and its tributaries and related wetland are to be relocated as mining and reclamation activities progress. HAC Site : Pit A & Pit B

19. BACKFILLING ACTIVITY • Using a method of backfilling known as Castback Backfilling, which allows reclamation to remain concurrent with active mining. This practice of mining and backfilling is both economical and environmentally compatible. The overburden is handled only once during the stripping and reclamation process. This results in an economical method of mining. • Backfilled material will be used to contour the previous phase of mined area per the PRP concurrently with the current active phase of mining or stripping area. • This results in an a minimal incremental cost for the reclemation and the benefits of having reclaimed areas immediately. • Wherever possible, soils should be moved directly from areas being stripped to areas being restored, negating the necessitate for double handling.

20. BACKFILLING ACTIVITY • The PRP was developed in phases in order to accomodate progressive stripping ratios; minimize material re-handling as well as faciliatate activities associated with the relocation of the superficial streams. Mining Sequencing : 0 - 10 years Plan HAC Progressive Reclamation Plan – Phasing Overview

21. BACKFILLING ACTIVITY • A continuous re-habilitation process was also established, as excess overburden from the development of the future mine areas shall be utilized according to the PSP into the previously mined areas.

22. GRADING AND SLOPE STABILITY • Final slopes and surface contours will approximate native gradients and will blend with adjacent topography to minimize impacts to existing land use characteristics. Main aspects of this process are overall landcaping, erosion control and soil infiltration characteristics. HAC Final Grading – Master Plan HAC proposed channels - Profile Design

23. GRADING AND SLOPE STABILITY • Mine operations will utilize dozers, excavators and graders for these activities. An important feature of the PRP is the coordination with the previous backfilling operation and ongoing active stipping area in order to minimize input as well as to provide proper workable material to areas being actively reclaimed. HAC Engineering Guidance - Sloping Design

24. DRAINAGE AND WATER MANAGEMENT • Surface water flow will be re-established in the backfilled phases via the countering with the grading and sloping. • Ephemeral channels to be impacted by the mining activity will be temporarily directed around active mining stages and recreated in the backfill phases to re-establish pre-mining habitats. • Channel design for both temporary and permanent diversions were desinged to enhence the final reclamation phase to reduce the cost of reclemation. • This approach assists in reducing ongoing operational costs for water management by minimizing the active area of water management and the volumes of water handled.

25. DRAINAGE AND WATER MANAGEMENT • The routes of the proposed channels in the PSP were based on hydrologic, environmental, safety and logistic considerations. The stability of the stream and potential flooding are two additional factors evaulated in design of channel routes. • Development of the mine areas included additional aspects of water management in order enhence operational conditions as well as enhance the reclamation effort.

26. DRAINAGE AND WATER MANAGEMENT Quarry would generate excess overburden that would be used to reclaim the mine site to ridges and streams that would adequately convey surface water across the site. • The PSP approached surface water with a plan for sequentially relocating the streams and channels as equivalently as possible to the original locations as the active mine progresses. • With this approach, the disruption to the streams is minimized while also relocating the streams and channels to reclaimed areas near their original location. Log structures such as log vanes and root wads add woody debris to the stream, enhancing habitat and having as main goals: Maintenance of a stable width-to-depth ratio; Reductions in near-bank velocity; Reductions in erosion potential and sediment deposition; Improvements in fish habitat; Visual compatibility with natural channels of the region;

27. REVEGETATION • Progressive reclamation reduces the need for topsoil storage, but this may still be required for part of a site. • Revegetation procedures will begin following contouring and topsoiling of the disturbed areas. Revegetation enhances site stabilization and erosion control while restoring natural habitat in a more timely manner. This process has also a direct impact on minimizing mine requirements associated with dewatering and dust control activities. • Ascetic benefits for community are also improved.

28. REVEGETATION • Permanent vegetation will be installed as soon as the mining and stockpiling activities cease in an area. Temporary ditches will be grassed with temporary and permanent grassing. • Topsoil will be directly on leveled area. The seeding process will use broadcast seeder and hydro-seeding when feasible. Several tree establishment techniques will be also implemented, especially within slope areas and floodplains. Importance of the proper revegetation and grade design specially along the water streams.

29. OTHER COST • Each completed phase of mining that is reclaimed via these methods adds the advantage of experince for enhanced knowledge for reclemation of future phases. This allows for optimization of these methods for further reduced cost in future reclamation. • Additional cost savings occur in the following areas: • Implementation cost (shared resources with the mine operations: equipments, trained personnel, supervision, power, communications, staff support, etc.) • Active Mine Auxiliary cost (dewatering, dust control, erosion control, etc.) • This also reduces outstanding cost associated with future liabilitis such as Finacial Assurances required for reclemation.

30. OVERALL COST EVALUATION “True magnitude of reclamation and closure cost liabilities are often initially unknown…externally and internally”. So, good practices in planning, cost management and its proper record can bring financial incentives. Regulatory “Financial Assurances” can be beneficial Source: MINISTRY OF ENERGY AND MINES Mining and Minerals Division, British Columbia - Canada “MINE RECLAMATION COSTING AND SPREADSHEET” 2006 Source: Boxill, Lois, AMEC “Reclamation and Closure Cost Planning and Estimation and the Mining Life Cycle”

31. Votorantim Experiences:Decomissioning Plansfor Itaú de Minasand Rio Branco September 1, 2009 Patrícia Monteiro Montenegro

32. Itaú de Minas Local scale Open quarry Industrial Area Adm. area

33. Labels Sterile deposits Plants Adm. instalations Rented limestone quarry Active clay quarry Inactive clay quarry Active limestone quarry Inactive limestone quarry Rio Branco do Sul Cava de argila ativa Poligonal DNPM

34. Methodology Roadmap X Enterprise Diagnosis/ Prognosis Environmental/ Social Survey and Assessment Guidelines Environmental Business Plan Aptitudes/Restrictions Threats/ Opportunities Legislation/ Land Use Processes Local Vocation GOLDER METHODOLOGY Community Expectations + + PROPOSAL OF ALTERNATIVES / SCENARIOS FOR POST-CLOSURE USE Filters / Guidelines Participation/Interaction: C.S.I VCB Corp. Votorantim Guidelines Production Plants SELECTION OF CONCEPTUAL SCENARIOS FOR DECOMISSIONING

35. Concepts and Guidelines • Local/Regional Perspectives and Vocations; • Applicable National and International Legislation; • National and International Experiences; • Technical-Scientific Literature about decomissioning from the most recent forums and seminars; • Guidelines and Protocols from Environmental and Social-Economical Multilateral agencies; • Especial Focus on CSI Guidelines; • Gain of financial trust through actions of Social-Environmental responsibility linked to the decomissioning;

36. Example of Alternatives Operational Areas and Proposed Alternatives • AAA Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5 Alternative 6 Public supply center + Multiple uses for leisure and tourism Open quarry Public water supply center Multiple uses for leisure and tourism Fish culture Real estate incorporation + diverse farming including country tourism Real estate incorporation + agro-forest use Recovery of natural ecosystem Forest units Keep agro-forest usage Diverse farming usage Real estate incorporation Center for small furniture or manufacturing businesses Keep/adjust existing structure Complete demolition of structure Adm. area Cultural station Wood warehouse + small industrial district for furniture or manufacture Management of cement production with imported clinker from anther plant Small industrial district for furniture or manufacture Commercial production of electricity (biomass) Recovery of natural ecosystem (total deactivation of structures) Industrial area Wood warehouse Supply energy to the National Grid System Small Hydro Power Supply energy to the complex Complete Deactivation

37. Alternatives Assessment Each alternative for each operational area is assessed according to the different types and degrees of intervention predicted, considering the restrictions and potentials of the following aspects: Physical and biotic environment • Geotechnical and hydrological integrity of the containment • Potential Impacts to the aquatic, terrestrial, atmospheric environments Social-economical aspects • Economical scenarios of the region • Political and Institutional Contexts • Impacts on the social-territorial restructure • Levels of social perception and support Viability of execution • Complexity of monitoring, cost and duration of plan • Population access and exposition • Reuse of existing infra-structure • Risk of failure

38. Proposal of scenarios According to the previous assessment, some of the alternatives are chosen and combined into four different scenarios: • Sustainable use of water resources and promotion of cultural and socio-economic activities • Industrial adjustment to the local social-economic vocations (partial decommissioning) • Social-economic and cultural diversification aligned to the local vocations • Total rehabilitation of impacted areas and strict adjustments for tourism, leisure and culture

39. Scenarios for Itaú de Minas 1 Sustainable use of water resources and promotion of cultural and socio-economic activities Operational or Interest Areas Pretended Future Use Decomissioning Actions • Specific studies for: determination of the water level after closure, water quality of the future lake and storage capacity of the quarry. • Enclosure of the quarry • Demolition of the structures surrounding the quarry • Re-vegetation of the area surrounding the quarry • Monitoring Open quarry Public water supply center Keep agro-forest usage Forest units • Re-vegetation of the piles • Adequate buildings. • Re-vegetation of courtyard areas (pet coke, wood). • Monitoring. Adm. area Cultural station • Disassembly of equipments and demolition of structures (70% clinker and cement, 100% aggregates). • Re-vegetation of degraded areas. • Monitoring. • Disassembly of crushing and grinding equipments. Small industrial district for furniture or manufacture Industrial area Small Hydro Power Supply energy to the complex None

40. Scenarios for Itaú de Minas 2 Industrial adjustment to the local social-economic vocations (partial decommissioning) Operational or Interest Areas Pretended Future Use Decomissioning Actions • Specific studies for: determination of the water level after closure, water quality of the future lake and storage capacity of the quarry • Geotechnical studies for slope stability and enclosure of quarry; Demolition of the structures surrounding the quarry • Re-vegetation of the area surrounding the quarry • Monitoring Multiple uses for tourism and leisure Open quarry Keep agro-forest usage Forest units • Re-vegetation of the piles area • Re-vegetation of courtyard areas (pet coke, wood). Keep/ Adequate existing structure Adm. area • Disassembly of equipments and demolition of structures (70% clinker and cement, 100% aggregates). • Re-vegetation of degraded areas. • Monitoring. • Disassembly of crushing and grinding equipments. Management of cement production with imported clinker from anther plant Industrial area Small Hydro Power Supply energy to the complex None

41. Scenarios for Itaú de Minas 3 Social-economic and cultural diversification aligned to the local vocations Operational or Interest Areas Pretended Future Use Decomissioning Actions • Specific studies for: determination of the water level after closure, water quality of the future lake and storage capacity of the quarry • Geotechnical studies for slope stability and enclosure of quarry; • Demolition of the structures surrounding the quarry • Re-vegetation of the area surrounding the quarry • Monitoring Multiple uses for tourism and leisure Open quarry Keep agro-forest usage Forest units • Re-sloping/ re-vegetation of the piles • Adequate buildings. • Re-vegetation of courtyard areas (pet coke, wood). • Monitoring. Cultural station Adm. area • Disassembly of equipments and demolition of structures (70% clinker and cement, 100% aggregates). • Re-vegetation of degraded areas. • Monitoring. • Disassembly of crushing and grinding equipments. Management of cement production with imported clinker from anther plant Industrial area Small Hydro Power Supply energy to the complex None

42. Scenarios for Itaú de Minas 4 Total rehabilitation of impacted areas and strict adjustments for tourism, leisure and culture Operational or Interest Areas Pretended Future Use Decomissioning Actions • Specific studies for: determination of the water level after closure, water quality of the future lake and storage capacity of the quarry • Demolition of the structures surrounding the quarry • Re-vegetation of the area surrounding the quarry Incorporation to the natural surrounding ecosystem Open quarry Incorporation to the natural surrounding ecosystem • Re-vegetation of the whole area with native species • Re-sloping/ re-vegetation of the piles Forest units • Adequate buildings. • Re-vegetation of courtyard areas (pet coke, wood). • Monitoring. Adm. area Cultural station • Disassembly of equipments and demolition of structures (70% clinker and cement, 100% aggregates). • Re-vegetation of degraded areas. • Monitoring. • Disassembly of crushing and grinding equipments. Incorporation to the natural surrounding ecosystem (total deactivation of strictures) Industrial area Supply energy to the national grid system Small Hydro Power • Construct new transmission lines

43. Upcoming issues How to communicate decomissioning plans with local communities without raising any rumors? How can the cement industry prepare the local community for active participation on the decomissioning plan? How to conciliate recovery of biodiversity with economical / social impact on the community when choosing options for decomissioning? Is biodiversity impact from emissions becoming a focus for your local policy-makers?

44. Upcoming issues How can the CSI companies evaluate the biodiversity lost due to mining activity? What future regulations regarding quarry decomissioning do you see arising from policy markers? Is your company aware of any new technologies or methods for reclamation? Is there opportunities to work with or learn from other mining industries? What future issues around ecosystems do you see? Is there any recommendations from your country concerning the life time of the mine?