PROGRESS REPORT

1. PROGRESS REPORT THE MANAGEMENT OFACID MINE DRAINAGE (AMD) IN THE WITWATERSRAND MINING REGIONPortfolio Committee:Water and Environment Cape Town, May 2012

2. Content of Presentation Background / Introduction Current Mine Water Status Per Basin Ingress Management Technical solutions and Progress Public Participation and EIA Process Budget and Funding Linking Short and Long Term Solutions The Way Forward

3. 1. Background / Introduction • Inter-Ministerial Committee (IMC) on AMD first convened on 1 Sep 2010 • DWA and DMR DGs co-chaired a Team of Experts (DWA, DMR, CGS, CSIR, WRC, MINTEK and, academic reviewers) to conduct a situation assessment • ToE findings in Report: ”Mine Water Management in the Witwatersrand Gold Fields with Special Emphasis on Acid Mine Drainage” (IMC AMD Report) accepted by IMC • Cabinet approved IMC AMD Report on 9 Feb 2011 • DWA tasked to implement certain recommendations in IMC AMD Report • DWA appointed TCTA as Implementing Agent on 6 Apr 2011 • TCTA appointed PSPs to undertake Due Diligence on Wits AMD – report finalized on 7 July 2011

4. TCTA Directive • Ministerial directive – 6 April 2011 • Emergency works in Witwatersrand gold fields comprising: • Installation of pumps • Construction of water treatment plants • Release treated water into river system • Obtain environmental and regulatory approvals • Funding from DWA via National Treasury • Advise and assist DWA with O&M model • Minister may direct to do more

5. Locality

7. 2. Current Mine Water Status Per Basin

10. 3. Ingress Management

11. Prevention of Ingress DMR appointed Council for Geoscience to: • Identify and stop ingress in 7 Basins, including the Western, Central and Eastern • Construct the Florida canal to prevent ingress into the Central Basin • Investigate the feasibility of additional ingress control measures in the Central Basin • Investigate the role of mine residue deposits and open pits as sources of ingress (Western Basin)

14. 4. Technical Solutions and Progress

15. Design Philosophy Design lifespan: 30 to 50 years – concrete structures High-quality submersible pumps and pipe-work: low maintenance, 30 year lifespan Short-term solution to serve as first phase of long-term solution Plant capacity: ECL maintained even during high inflows Site selection: taking long-term solution into account

16. Immediate Actions: Western Basin Implementation of Immediate Solution Upgrade Rand Uranium treatment plant - cater for up to 36Ml/d Implementation agreement with RU Target date – May 2012 Discharge treated water to Tweelopiespruit Co-disposal of sludge to Wes Wits Pit Operating rule: solo until June 2013 then parallel with short-term solution until ECL

17. Technical Solution: Western Basin Implementation of short term solution New HDS plant to be erected on Rand Uranium property – capacity 35 ml/d Installation of new pumps and pipe work in Rand Uranium Shaft 8 Treated water transferred by pipeline to Tweelopiespruit Sludge disposal at West Wits Pit - duel pipeline Commissioning date – June 2013 ECL level 165 m – February 2014

18. Technical Solution: Central Basin New HDS plant next to South West Vertical Shaft – capacity 84 Ml/pd CRG Ritz pumps Treated water transferred pipeline to Elsburg Spruit Sludge co-disposal with DRD Gold Commissioning date – April 2013 ECL level 174 m/400

19. Technical Solution: Eastern Basin New HDS plant at Grootvlei – 110 Ml/pd Installation of new pumps and pipe work Treated water transferred to Blesbok Spruit Sludge co-disposal at Daggafontein TSF via duel lines Commissioning date – June 2014 ECL level 290m/ mines ?

20. What will the treated water quality be?

21. 5. Public Participation and EIA Process

22. Public Participation Process Public meeting notices advertised in newspapers: 3-22 Feb 2012 Site notices: 14-15 Feb 2012 14 Feb 2012 - Authorities forum meeting 22 Feb 2012 - Key Stakeholders Meeting Open days: 25 Feb, 3 March, 10 March 2012 Ongoing one-on-one consultations with downstream landowners and elected community representatives

23. EIA Process EIA will be required in terms of the National Environmental Management Act A waste licence is required in terms of National Environmental Management: Waste Act An integrated application has been made to DEA in terms of section 24L of NEMA and section 44 of the Waste Act

24. EIA Process 3 February 2012 18 October 2011 • EIA application was submitted • Ref #: DEA/EIA/0000498/2011 & 12/12/20/2403 • Meeting held with DEA to clarify the process • Authorities Site Visit 12 December 2011

25. EIA Process November 25 Feb – 10 Mar 2012 • Scoping Report for public review • EIA Interest Group meeting • EIA for Review • Public Open Days: • 25 February 2012 – WB • 3 March 2012 – CB • 10 March 2012 - EB April 22 February 2012

26. 6. Budget and Funding

27. Budget and Funding

28. Project Cost Budget

29. 7. Linking Short-term Solution with Long-term Solution

30. Feasibility Study for AMD Long Term-Solution • A Feasibility Study (FS) was another recommendation by the ToE, with objective being: • Investigate and recommend a feasible long-term solution to the AMD problems emerging in the study area, in order to ensure long term water supply security and continuous fitness for use of Vaal River water • The FS will therefore assess suitability of the short-term measures, & in what way they can be incorporated or adapted into long-term solution 30

31. Progress on the Feasibility Study • PSP team appointed in January 2012. • Contract period 13 Months until 28 February 2013. • Study registered with National Treasury’s PPP unit. • Processes followed to allow conventional implementation as well as implementation through Public Private Partnership or Public-Public Partnership.

32. Long-term feasibility study (continue) • Study status: • Team with expertise mobilised. • Data collection continuing. • Key stakeholders Identified & engagement well in advance. • Two Study management meetings held. • Consultative meetings held with individual key stakeholders e.g. Federation for Sustainable Environment, Universities, Rand Water, Treasury, etc. • Stakeholder workshop held on 2 & 3 May 2012. 32

33. Long-term feasibility study (continue) • Initial findings regarding Implementation: • Serious risk that Vaal River requirement will not be met if Conventional project implementation processes are followed after the completion of the Feasibility Study. • Alternate Implementation methods are being considered: • e.g. parallel activities such as EIA, Request for Proposals (RFP), etc. are being looked into. • Close coordination with National Treasury will be required for any PPP processes 33

34. Long-term feasibility study (continue) • First steps for Request for Proposals: • Call for registration is in the process of being issued in order to enable possible service providers to register interest of providing services so that: • Possible Treatment Technologies/Options are captured, • Process is transparent for all interested & with solutions, • Possible capital & operational financial models can start being conceptualised • Possible management institutional models can start being imagined • Care is taken that this call for registration will not compromise prescribed procurement processes. 34

35. Long-term feasibility study (continue) Status of deliverables: First drafts of reports submitted for consideration by Project Management: • Inception Report. • Assessment of water Quality and Quantity Trends of the Wits Mine voids. • Report on the current status of the Management of AMD. The Feasibility Study’s progress in relation to the ToR, is on track 35

36. 8. The Way Forward • Monitoring of water quality and quantity on surface and in basins should be upgraded to ensure better decision-making • Implementation of all short term solutions should be executed strictly according to agreed timelines • Budget constraints will have to be addressed with urgency: bridging the short- and long-term solutions to create acceptable business model • Request for Proposals and Feasibility Study will be expedited