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Long-Term Solution to Acid Mine Drainage (AMD) in the Western, Central, and Eastern Basin

This presentation provides an overview of the long-term solution to address acid mine drainage in the Western, Central, and Eastern Basin. It covers the timeline of events from 1998 to 2011, collaboration between organizations, the establishment of the Water Utilities Company (WUC), the development of a regional closure strategy, and the financial aspects of the project.

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Long-Term Solution to Acid Mine Drainage (AMD) in the Western, Central, and Eastern Basin

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  1. Presentation to Parliament Portfolio Committee on Water and Environmental Affairs on the Western, Central and Eastern Basin LONG TERM SOLUTION TO AMD Presentation to Parliamenton theWestern, Central and Eastern Basin Long Term Solution to AMD 28 June 2011 Jaco Schoeman 28 June 2011

  2. LookingBack13 Years: 1998 - 2011 2007 WBEC, WUC sign Heads of Agreement CBEC and EBEC formed WUC raises R60 million to execute PFS/DFS/Pilots WUC completed pilot plants, engineering designs 1998 Wits Basin de-watering stops 1998 - 2002 Western Basin flooding 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2002 First AMD decants at BRI – Harmony implement emergency measures 2008 WUC completes Pre-Feasibility Study On going pilot work 2005 DWAF issues Directive enforcing co-operative agreement between mines to find solution to AMD 2009 WUC completes Definitive Feasibility Study WUC submits Basic Information Document, engages Public through Open House and Public Participation, and submit s Final Scoping Report (All part of EIA) Objections raised by DWA High level engagement with DWA at DDG level 2006 WBEC formed 2006 DWAF provides mine with permission to establish Water Service Provider company 2010 Feb 2010 Industry submits first Long Term Self Sustainable Solution after further engagement July 2010 Industry re-submits proposal based on discussions with DWA at Ministerial level on their preferences

  3. DWAF Mandate to the Mines • Find a Long Term Solution for AMD – June 2005 • Mines received legal advice • Not responsible for legacy issues • State owns significant portion due to ownerless / abandoned mines • “The Pragmatic Approach” • Establish Section 21 companies • Develop Regional Closure Strategy in line with DME • Contract WUC to develop solution (R65million)

  4. Excerpt from DWA Letter of Recognition Issued in 2006 – Page 1 Note: Specific reference is made to the following two highlighted paragraphs in the DWA letter : “Re: Directive in terms of Section 19 (3) of the National Water Act of 1998, Act 36 of 1998, regarding the establishment of a Water Utilities Company (WUC) and clarity on the pricing structure to be imposed on the WUC” “A. authorisation is required for the establishment of a Water Utilities Company (WUC) for the purpose of treating Acid Mine Drainage (AMD) which is decanting from Black Reef Include Shaft in the Tweelopies Spruit, and ...”

  5. Excerpt from DWA Letter of Recognition Issued in 2006 – Page 2 Excerpt of DWAF Letter of Recognition Page 2 … Note: Specific reference to highlightedparagraphs A. and 1.

  6. Proposed Project : Regional Closure

  7. Scope of the Proposal : Interim Solution

  8. Approach to Development of a Solution • Industry directed by DWA in 2005 to develop a Long Term Solution • First Class Feasibility Study and Stakeholder Engagement • Definition of the scale of the AMD problem – qualities and quantities • Multiple Options considered • Detailed Feasibility Study undertaken • Risk Assessments • Extensive Regulator and Public engagement • Permitting advanced to approval of Final Scoping- E.I.A Report • WULA ready for submission • DWA was involved throughout this process in open forum • Offtake and structural issues still open

  9. Financials • Notes: • Before mine or Govt contribution • Plant Opex alone R3.10/m3

  10. Current Situation • Final Scoping Report (FSR) approval received on 14 Dec 2009 • Environmental Impact Report (EIR) ready for submission • Includes 14 Specialist Studies • Definitive Feasibility Study has proven project viability • Project finance via private sector (R1,52 billion) • Regional Closure Strategy in line with DMR objectives • Industry has submitted formal proposals • 11 November 2009 (original proposal) • 13 July 2010 (amended proposal based on DWA comments and interactions with mines at DDG/DG/Ministerial level) • DWA has formally rejected these proposals(IMC report) and decided to engage TCTA as their preferred option

  11. Key Attributes of our Proposal • Sound Governance - Public Private Partnership • Regional Scale Solution • Regional Impact - Vaal River salt load • Material to future Vaal strategies • Stageable • Economically viable and externally financeable • Significant BEE opportunity • “Blue Print” for other mining regions • Ready to go!

  12. Conclusion • We’ve done what you asked us . . . • Regional scale solution - regional significance • Sustainable • Economically viable & financeable • Structurally sound • WUC is the solution proposed by the mines in a response to the DWA directive in 2005 • The Solution is commercially viable, which means neither the state nor the current companies, neither of who created this, have to fund it.

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