LIMPOPO COAL COMPANY

(PTY) LTD

VELE COLLIERY Environmental Authorisation

Amendment in terms of the

National Environmental

Management Act, 1998

FINAL REPORT

LIMPOPO COAL COMPANY (PTY) LTD

VELE COLLIERY

Environmental Authorisation Amendment in terms of

the National Environmental Management Act, 1998

(Act 107 of 1998)

Compiled by:

Jacana Environmentals cc

PO Box 31675, Superbia, Polokwane, 0759

Tel: (015) 291 4015; Fax: (015) 291 5035

Email: Marietjie@jacanacc.co.za

TABLE OF CONTENTS

TABLE OF CONTENTS ....................................................................................................... 2

LIST OF TABLES ................................................................................................................. 3

LIST OF FIGURES ............................................................................................................... 4

1 INTRODUCTION ........................................................................................................... 1

1.1 Background and purpose ........................................................................................................... 1

1.2 The project proponent ................................................................................................................ 1

1.3 The Environmental Assessment Practitioner (EAP) .................................................................. 1

2 PROJECT OVERVIEW .................................................................................................. 2

2.1 Location ...................................................................................................................................... 2

2.2 Project Description ..................................................................................................................... 4

2.3 Scope of Amendment to the Environmental Authorisation ........................................................ 5

3 DESCRIPTION OF AMENDED LISTED ACTIVITIES .................................................... 9

3.1 GNR 386 Listed Activity 15 ........................................................................................................ 9

3.2 GNR 386 Listed Activity 12 ...................................................................................................... 11

3.3 The Need and Desirability of the Activities .............................................................................. 12

3.4 Environmental Policy, Commitment and Resources ................................................................ 13

4 DESCRIPTION OF THE RECEIVING ENVIRONMENT ............................................... 15

4.1 Biophysical Environment .......................................................................................................... 15

4.2 Cultural and Heritage Resources ............................................................................................. 26

4.3 Ecological Sensitivity ................................................................................................................ 27

4.4 Regional Socio-Economic Structure ........................................................................................ 29

5 PUBLIC PARTICIPATION PROCESS ......................................................................... 34

5.1 Interested and Affected Party Database .................................................................................. 34

5.2 Public Participation Notifications .............................................................................................. 35

5.3 Engagement Sessions ............................................................................................................. 35

5.4 Availability of the Draft and Final Report .................................................................................. 36

6 SUMMARIES OF SPECIALIST STUDIES ................................................................... 38

6.1 Biophysical Environment .......................................................................................................... 39

7 ENVIRONMENTAL IMPACT ASSESSMENT .............................................................. 49

7.1 Identified Environmental Impacts ............................................................................................. 49

7.2 Methodology of assessing the impacts .................................................................................... 50

7.3 Environmental Impact Evaluation and Rating .......................................................................... 52

8 ENVIRONMENTAL MANAGEMENT PLAN ................................................................ 66

8.1 Detailed Environmental Management Plan ............................................................................. 67

8.2 Environmental Monitoring Programme .................................................................................... 72

8.3 Environmental Awareness Plan ............................................................................................... 75

8.4 Closure Objectives ................................................................................................................... 76

8.5 Financial Liability ...................................................................................................................... 77

9 CONCLUSIONS AND RECOMMENDATIONS BY EAP .............................................. 78

10 REFERENCE LIST .................................................................................................. 79

11 LIST OF ANNEXURES ........................................................................................... 80

LIST OF TABLES

Table 1: Properties associated with Vele Colliery mining right .............................................................. 3

Table 2: Scope of Amendment to Environmental Authorisation ............................................................ 7

Table 3: Breakdown of vegetation clearance required for life of mine ................................................. 11

Table 4: Summary of Specialist Studies conducted in 2008 and 2009 ............................................... 38

Table 5: Identified Environmental Impacts ........................................................................................... 49

Table 6: Assessment Criteria ............................................................................................................... 51

Table 7: Construction Phase ................................................................................................................ 53

Table 8: Operational Phase ................................................................................................................. 57

Table 9: Decommissioning or Closure Phase ...................................................................................... 62

Table 10: Post Closure Phase ............................................................................................................. 64

Table 11: Cumulative Impacts.............................................................................................................. 65

Table 12: Environmental Management Plan ........................................................................................ 67

Table 13: Environmental Monitoring Programme ................................................................................ 72

LIST OF FIGURES

Figure 1: Locality Map ............................................................................................................................ 2

Figure 2: Vele Colliery mining right area ................................................................................................ 3

Figure 3: Vele Colliery mine plan over next 16 years ............................................................................ 4

Figure 4: Vele Colliery Plant Modification Project - Existing and Future Plant Configuration ................ 6

Figure 5: Vele Colliery access road route .............................................................................................. 9

Figure 6: Detail of haul road extension ................................................................................................ 10

Figure 7: Topography ........................................................................................................................... 16

Figure 8: Geological Map ..................................................................................................................... 17

Figure 9: Land Use at Vele Colliery (prior to mining) ........................................................................... 19

Figure 10: Conservation areas in the vicinity of Vele Colliery.............................................................. 20

Figure 11: Vele project area drainages ................................................................................................ 22

Figure 12: Surface water monitoring points ......................................................................................... 23

Figure 13: Macro chemical analysis of secondary aquifers ................................................................. 24

Figure 14: Groundwater monitoring points ........................................................................................... 24

Figure 15: Record of dust fallout at Vele Colliery ................................................................................ 25

Figure 16: Mapungubwe National Park Buffer Zone ............................................................................ 27

Figure 17: Vele Colliery in relation to the proposed TFCA .................................................................. 28

Figure 18: Musina Local Municipality Map ........................................................................................... 29

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1 INTRODUCTION

1.1 Background and purpose

Vele Colliery was granted its New Order Mining Right (NOMR) on 19 March 2010 on the farms

Overvlakte 125 MS (Ptn 3, 4, 5, 6, 13, 14 and RE), Bergen Op Zoom 124 MS, Semple 155 MS and

Voorspoed 836 MS.

Limpopo Coal Company (Pty) Ltd (LCC) applied for rectification in terms of Section 24G of the

National Environmental Management Act (NEMA), 1998 (Act 107 of 1998) for activities that

commenced without environmental authorization on Portions 3, 4 and 5 of the farm Overvlakte 125

MS, Bergen op Zoom 124 MS and Erfrust 123 MS. LCC was granted the Environmental Authorisation

in terms of Section 24G of NEMA in July and October 2011.

The Company seeks to amend certain approved activities, and has submitted applications in this

regard to the Department of Environmental Affairs (DEA).

1.2 The project proponent

LCC is a wholly owned subsidiary of Coal of Africa Limited (CoAL). CoAL is an emerging developer of

high-quality thermal and coking coal, with its assets located primarily in the Limpopo Province of

South Africa.

The company is listed on the Johannesburg Stock Exchange (JSE), Alternative Investment Market

(AIM) in the UK and the Australian Stock Exchange.

1.3 The Environmental Assessment Practitioner (EAP)

Jacana Environmentals cc has been appointed as the independent Environmental Assessment

Practitioner (EAP) to assist LCC with the compilation of the amendment to the Environmental

Authorisation for Vele Colliery. The Public Participation Process will be undertaken by Naledi

Development Restructured (Pty) Ltd (Naledi) under the appointed EAP.

Refer to ANNEX-A for the Curriculum Vitae of the responsible persons.

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2 PROJECT OVERVIEW

2.1 Location

The Vele Colliery is situated in the magisterial district of Musina in the Limpopo Province of South

Africa. The project area is bounded in the north by the Limpopo River, which defines the

international border with Zimbabwe. The easternmost boundary of Mapungubwe National Park is

situated approximately 5 km to the west of the westernmost boundary of the Vele project area. The

mining area for the next sixteen years is situated approximately 14 km from the Mapungubwe

National Park eastern boundary. The Mapungubwe World Heritage Site (Mapungubwe Hill) is

situated approximately 20 km to the west of the westernmost boundary of the Vele project Area.

The nearest town is Musina, situated approximately 40 km to the southeast of the Vele project area.

Figure 1: Locality Map

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The extent of the mining right area is 8 663 hectares. The properties associated with the mining

development are listed in Table 1 and presented in Figure 2.

Table 1: Properties associated with Vele Colliery mining right

FARM NAME SURFACE OWNER SIZE (ha) TITLE DEED

Overvlakte 125 MS Ptn 3 Harrisia Investment Holdings (Pty) Ltd 342.6128 T44946/2009

Overvlakte 125 MS Ptn 4 Harrisia Investment Holdings (Pty) Ltd 842.2097 T44946/2009

Overvlakte 125 MS Ptn 5 Harrisia Investment Holdings (Pty) Ltd 842.2117 T22619/2009

Overvlakte 125 MS Ptn 6 Overvlakte No 6 (Pty) Ltd 219.0000 T74891/1990

Overvlakte 125 MS Ptn 13 Kelkiewyn Landgoed (Pty) Ltd 268.8496 T58674/2003

Overvlakte 125 MS Ptn 14 Limpopo Trust 416.3760 T42510/1994

Overvlakte 125 MS RE Overvlakte Eiendom (Pty) Ltd 623.2108 T78260/1989

Semple 155 MS Semple Eiendom (Pty) Ltd 942.9147 T89069/1996

Bergen Op Zoom 124 MS Harrisia Investment Holdings (Pty) Ltd 2078.1327 T12375/2009

Voorspoed 836 MS Factaprops128 (Pty) Ltd 2087.2216 T97196/1997

TOTAL 8662.7396

Figure 2: Vele Colliery mining right area

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2.2 Project Description

Vele Colliery started production of thermal coal in January 2012, producing 697 953 tonnes of Run-

of-Mine (ROM) coal, yielding 195 756 tonnes of export quality coal up to June 2013.

Extensive product quality testing of the coking coal commenced in August 2013, after the approval

of the Plant Modification Project (PMP) concept by the CoAL board. The product testing confirmed

the quality of the coal, and the Collierys ability to produce both Semi Soft Coking Coal (SSCC) and a

range of thermal products. The current single stage processing plant would require modification to

a two stage processing plant, enabling the production of three products: SSCC, Eskom thermal coal

and sized thermal coal. All modifications are situated within the existing plant footprint and

therefore covered by the existing specialist studies and Environmental Authorisations. The Colliery

was placed under care and maintenance in preparation for the implementation of the PMP.

2.2.1 Mining Development

Vele Colliery is currently mining its East Pit opencast. The mine planning over the next 16 years is

shown in Figure 3. Mining operations over the next 16 years will be centred around the East Pit as

approved in the Environmental Management Programme (EMP). No underground mining is planned

during this period.

Figure 3: Vele Colliery mine plan over next 16 years

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2.2.2 Project Infrastructure

The Vele Colliery currently consists of opencast mining operations, associated workshops and stores

and a coal beneficiation plant. Other facilities at the mine include the following:

Topsoil and overburden stockpiles

ROM coal storage areas

ROM coal crushing plant (primary, secondary and tertiary crusher)

Associated conveyors from the crusher to storage stockpiles and from the washing plan to

the product storage stockpiles

Product stockpile areas

Haul roads and service roads

Change-houses and offices

Clean water management infrastructure, including:

o Storm water canals

o Flood protection berms

o Surface water dam

o Abstraction boreholes and reticulation system, including clean water storage dam

Dirty water management infrastructure, including:

o Dirty water dams

o Sewage treatment facility

Temporary slimes dam

Discard stockpile

The current and proposed plant configurations are illustrated in Figure 4.

2.3 Scope of Amendment to the Environmental Authorisation

The scope of this amendment to the Environmental Authorisation (EA) is summarised in Table 2 and

described in detail in Chapter 3 of this report.

The Environmental Impact Assessment (EIA) and associated specialist studies performed in 2008 as

part of the mining right application is still applicable as the footprint of the specialist investigations

included all existing and future (amended) listed activities. Declarations by the specialists to confirm

this is included in ANNEX-B.

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Figure 4: Vele Colliery Plant Modification Project - Existing and proposed Future Plant Configuration

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Table 2: Scope of Amendment to Environmental Authorisation

Current Environmental Authorisation Amendment applied for

GNR 387 Listed Activity 6: The construction of a dam where the highest part of the dam wall, as measured from the outside toe of the wall to the highest part of the wall, is 5 metres or higher or where the high-water mark of the dam covers an area of 10 hectares or more

The construction of a slurry dam covering a total area of 5.17 ha on the farm Bergen op Zoom 124 MS. The dam is required for slurry material (to be processed). The height of the dam is 7.4 metres. The dam is lined with 1.5mm HDPE plastic liner over 50mm of compacted material. The bulk material was compacted to a 90% density. When completed, the total capacity of the slurry dam will be 132 440 cm3 and planned to store 120 000 m3 of slurry material.

The amendment is sought to rectify the typographical error in the EA, 132 440 cm3 must be amended to 132 440 m3.

The EA, dated 5 July 2011 and 30 October 2011 provides for the constructed infrastructure to include Pollution Control Dams (PCDs).

There are currently only two PCDs in use at Vele Colliery with the following capacity:

One PCD for a maximum quantity of 15 500 m into the opencast dirty water dam; and

A second PCD for a maximum quantity of 23 250 m into the process dirty water dam.

A third PCD with a 10 000m capacity and not exceeding the 5m wall height will be constructed within the mining area. The combined quantity of the current two PCDs plus the additional PCD will be 48 750m3, which will fall below the limit that triggers a new listed activity. This therefore does not require an amendment, but is for information purposes only.

The life of mine operations indicates that a third PCD will ensure compliance with sound environment practice in terms of dirty water management and pollution prevention.

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Current Environmental Authorisation Amendment applied for

GNR 386 Listed Activity 15: The construction of a road that is wider than 4 metres or that has a reserve wider than 6 metres, excluding roads that fall within the ambit of another listed activity or which are access roads of less than 30 metres long

Haul Road: The haul road network links the open cast pit area with the modular processing plant and the workshop area. LCC intend to use the road to transport ore from the open pit to the modular processing plant by haul trucks and other heavy machinery, during the operational phase of the mine. The haul road traverses the farms Bergen of Zoom 124 MS and Overvlakte 125 MS in a north-easterly and easterly directions. The haul road is 55 m wide (to accommodate large trucks), 2.89 km and covers an area of 15.97 ha.

This application seeks to amend this provision. This haul road is to be extended by an additional 3 km of which 1.3 km is a re-routing of the approved road to accommodate future mine activities.

Access Road: The haul road network includes the new access road constructed within the licensed mining area and covers an extent of 6.3ha and is 4.8 km in length. The road runs in a north-south direction and traverses the farm Bergen Op Zoom, the road is planned to link Vele Colliery with the main R572.

This application seeks to provide for the intention as noted in the current EA i.e. the plan to link the Vele Colliery with the main R572. The access road is to be extended to 10.14 km in length, covering an area of 14.5 ha. The EA failed to include the connection of the road within the mining area to the main R572 despite this being highlighted in the main report and the specialist studies submitted. Final extent will consist of an area of 14.5 ha and will be 10.14 km in length.

GNR 386 Listed Activity 12:The transformation or removal of indigenous vegetation of 3 hectares or more or of any size where the transformation or removal would occur within a critically endangered or an endangered ecosystem listed in terms of section 52 of the National Environmental

Management: Biodiversity Act, 2004 (Ac No. 10 of 2004)

The total area of indigenous vegetation cleared for construction and development is 109.12 ha. The description as detailed in the EA only includes the indigenous vegetation (ha) that was disturbed at the time of the Section 24G application.

The current EA does not include the full scope of work over the life of mine. The amendment seeks to address the omission, and applies for a total area of 502.2 ha.

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3 DESCRIPTION OF AMENDED LISTED ACTIVITIES

3.1 GNR 386 Listed Activity 15

3.1.1 Access Road

Figure 5: Vele Colliery access road route

At the time of the Section 24G application to rectify listed activities that commenced without

authorisation, only the portion of the access road situated within the mining right area was

constructed partially. In order to link the coal processing plant situated on the farm Bergen op Zoom

124 MS to the provincial road R572, the partially constructed access road must be extended over the

farm Erfrust 123 MS as shown in Figure 5. The full extent of the access road will cover an area of

14.5 ha, and 10.14 km in length.

The approved EA failed to include the connection of the road within the mining area to the main

R572 despite this being highlighted in the Section 24G application report and the specialist studies

submitted.

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A Basic Environmental Impact Assessment (EIA), inclusive of a heritage impact assessment and the

evaluation of alternative route options, was conducted for the access road in 2009 by Dubel

Integrated Environmental Services and is attached as ANNEX-C.

3.1.2 Haul Road

The existing haul road transverses the farms Bergen op Zoom 124 MS and Overvlakte 125 MS in a

north-easterly and easterly direction, and links the coal processing plant with the opencast pits. The

haul road is 55m wide to accommodate the large size trucks, 2.89 km long and covers a total area of

15.97 ha.

In order to facilitate the mining plan going forward, this haul road needs to be extended by an

additional 3 km of which 1.3 km is a re-routing of the approved road to accommodate future mine

activities. Refer to Figure 6.

Figure 6: Detail of haul road extension

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3.2 GNR 386 Listed Activity 12

3.2.1 Vegetation Clearance

A total area of 109.12 ha of indigenous vegetation, mostly indigenous Mopane (Colophosspermum

mopane) vegetation has been cleared prior to the Section 24G application as part of site preparation

to facilitate the construction and development of the required mine infrastructure. The breakdown

is provided in Table 3.

The current Environmental Authorisation only provided for the areas disturbed prior to the Section

24G and does not include the full scope of work over the life of mine. To provide for the additional

mining and infrastructure requirements for the East Pit operations over the next 16 years and

associated infrastructure requirements, an additional area of 393.08 ha will be disturbed and cleared

of vegetation. In total an area of 502.2 ha will be disturbed for this phase of the operation.

Table 3: Breakdown of vegetation clearance required for life of mine

Infrastructure Current

Environmental Authorisation (ha)

Amendment to Environmental

Authorisation (ha)

Opencast dump area 17.07 26

Haul roads 15.97 25

Modular processing plant 24.79 36

Workshop area 11.73 14

Access road (existing servitude road) 2.17 3

Water control trench - 1.2

Airstrip access road 0.81 1

New access road within the mining area 6.43 14.5

Access road on Erfrust - 15

River diversion Eastern - 1.5

River diversion - Central - 1

Opencast pit East 26.65 70

Opencast pit North - 290

Pipeline 3.5 4

Total 109.12 502.2

To date, prior to any vegetation clearance, the areas were surveyed and inspected by an

independent vegetation specialist to identify protected plants that require to be rescued and/or

transplanted. In instances where protected plant species were identified, the plants were

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incorporated in the plant rescue and relocation plan. The plants were relocated prior to the

clearance under the supervision of an independent plant ecologist, after the necessary

authorizations were obtained from the regulating authorities for protected plant species. This

process will be implemented throughout the life of mine as detailed in the Vele Colliery EMP.

3.3 The Need and Desirability of the Activities

The activities may be small in number compared to the mining activities making up the Vele Colliery

project, but have a significant contribution to make to the total mining component and should not

be viewed individually, but in the context of the entire Vele Colliery mining project. Within that

context, mining in general has transformed South Africas economic and social landscapes. Currently,

mining contributes an average of 20% to South Africas Gross Domestic Product (GDP), of which

about 50% is contributed directly. Furthermore, mining employs about half a million people and

contributes over R330 billion of the countrys total annual income. In 2007, the South African

Chamber of Mines (SACM) established that nearly 58 000 people were directly employed in coal

mining alone (which is 13% of the mining sectors workforce). The SACM estimated that the numbers

could be more if those employed in coal-fired electricity generation; liquid fuel production and

distribution are included.

Vele Colliery is located in the Limpopo Coalfield that forms part of the greater Tuli Block Coalfield,

and is represented in South Africa by very narrow deposit of the Karoo Sequence rocks of the

southern bank of the Limpopo River. The mineral resource is estimated to contain 720.847 million

(in-situ) tons of coking coal.

The area Vele Colliery intends to mine has an economically viable coal reserve estimated to be at

more than 441 million tons. The mine development process has been extended for a 3-year period

with an approximate capital investment of R2.5 billion. At full production, annual costs associated

with the mining activities are estimated to be in the order of R525 million of which R103 million is

direct labour costs.

Coal is vital for economic development. It is important for electricity generation and a vital input into

steel production. Over the past 30 years, coal has been the indispensable driver for economic and

social development and around 40% of the worlds electricity is produced using coal. Coal will have a

major role in meeting the future energy needs and the demand for coal and its vital role in the

worlds energy system is set to continue, as strong competitive forces continue to drive coal market

prices.

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The estimated total Gross Domestic Product (GDP) that LCC will contribute during its operational

phase of the project is expected to contribute R 7.6 billion per annum to the GDP of the country, and

two thirds i.e. R 4.9 billion of the amount will be contributed to the GDP of Limpopo Province.

During the construction phase of the PMP, contractor labour numbers will peak at approximately

350 with a large percentage drawn from the local area. During the operational phase the project will

employ approximately 450 permanent employees with varying skills, thus impacting directly on

livelihoods of approximately 810 people. The mine closure operation will provide employment for

between 200 and 450 people, declining over the five year period.

Two options were evaluated for housing of employees, namely building of housing facilities on site

or at adjacent land, and encouraging permanent employees to reside in Musina, with a housing

allowance provided as part of the remuneration package. The latter option has been considered to

facilitate contribution to the LED programmes in Musina, and would be beneficial for the employees

in the longer term due to the investment in properties.

3.4 Environmental Policy, Commitment and Resources

LCC has committed to implement feasible biodiversity offsets and rehabilitation programmes at

Vele. In addition, the company has committed to appoint permanent environmental personnel on

site and other relevant specialists to oversee the implementation of environmental plans and

facilitate compliance with environmental statutes.

The Company has committed to comply with environmental legislation and undertake all future

developments that fall within the ambit of the EIA Regulations, 2010 in accordance with the

prescribed legal framework. The following progress has been made regarding the implementation of

the biodiversity offset and rehabilitation programmes by LCC:

Commenced with the plant moisture stress (PMS) monitoring. The monitoring data is used

to detect early changes in the riparian vegetation i.e. Croton megalabothrys along the

Limpopo River on the farm Overvlakte 125 MS. The PMS continue to be used to detect

imbalances in the plant water status to determine the degree of moisture stress under

different conditions. The information gathered will be valuable in the long-term

rehabilitation of the riverine forest.

Completed a baseline study for the restoration of the riparian floodplains, as the initial step

that forms part of LCCs commitment to rehabilitate the Limpopo riverine forest along

Limpopo River on LCC property at the farm Overvlakte 125 MS.

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Initiated negotiations with SANParks to establish a Herbarium and an indigenous plant

nursery within the Mapungubwe National Park, including appointment of a service provider

to compile a rehabilitation strategy for the Vele project.

Biodiversity offset agreement The principles of the Biodiversity offset agreement have

been agreed to by the three signatories to the Memorandum of Agreement signed in

September 2011. Signature of the agreement is expected shortly.

It is stated in LCCs management documentation that the Board is committed to administering

policies and procedures with openness and integrity, pursuing the true spirit of corporate

governance commensurate with the Company's needs. LCC states that one of the categories of risk is

the environment and that any risk that could have a material impact on its business should be

included in its risk profile and this is considered in the Companys Safety, Health and Environmental

Policy. The Company and its board have committed to has committed to:

sustainable business models for all stakeholders, including shareholders, employees,

communities and the environment;

compliance with all applicable environmental legislation and environmental best practice;

adherence to first world standards, restoration and rehabilitation of affected areas; and

establishment of appropriate and effective mitigation measures and conducting progressive

and innovative programmes to minimize environmental impacts.

The significance of an Environmental Policy is that it sets the stage for all of the other elements of

the companys Environmental Management System (EMS). It provides a unifying environmental

management vision for the company and establishes goals for environmental performance against

which the effectiveness of its management system will be judged.

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4 DESCRIPTION OF THE RECEIVING ENVIRONMENT

This section of the report provides summary baseline information on the biophysical, socio-

economic, and cultural and heritage environment at the project area, taking cognizance of the

nature, extent and significance of the impacts and the mitigation measures. Please note that this

baseline information is prior to any mining taking place and is based on the specialist work

performed during 2008 as part of the NOMR application process. No additional specialist work is

required.

4.1 Biophysical Environment

4.1.1 Climate

The climate of the project area is semi-arid with a mean annual rainfall ranging from 285 - 440 mm.

Rainfall is highly variable and usually falls during the summer months. Extended periods of below

average rainfall occur, with an average of ten rainy days per annum. Temperatures sometimes rise

to 45C in summer. The winters are mild and frost occurs very seldom. The mean annual rainfall is

approximately 348 mm per annum. The mean annual rainfall as recorded over 30 years for the

Dongolakop weather station is 278 mm with a potential minimum of 154 mm during dry years and a

potential maximum of 451 mm per annum during wet years.

Air temperatures across the Limpopo basin show a marked seasonal cycle, with highest

temperatures recorded during the early summer months and lowest temperatures during the cool,

dry winter months. Rainfall is also highly seasonal, falling predominantly as intense convective

thunderstorms during the warmer summer months. The severe droughts observed during the early

1990s and the exceptional floods during 2000 in the Limpopo valley illustrate the extreme variability

of rainfall and runoff in the basin. This variation has significant effects on aquifer recharge.

The rainy season is predominantly from November to March when about 83% of the total annual

rainfall occurs. The driest months are from May to September, when less than 7 mm of rain per

month is recorded. The minimum monthly mean temperature does not dip below 6C, while the

maximum mean temperature reaches a high of 33.4C in January, even in the winter months; the

mean daily maximum temperature is well above 20C.

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4.1.2 Topography

Figure 7: Topography

The Limpopo River valley area consists mostly of extremely irregular plains. The altitude of the

project area range from 484 mamsl at the Limpopo River to 598 mamsl on the undulating terrain in

the south-eastern areas of the farm Bergen op Zoom, an increase of 114 m over a distance of almost

7 km.

The topography of the area is fairly flat in the northern, western and central areas but undulating

hills and rocky outcrops is typical of the north-eastern, eastern and south-eastern areas. The highest

point in the area is Dongola hill in the south-western corner of the farm Petershof (to the southwest

of the mining development area), measuring 896 mamsl.

4.1.3 Geology

The stratigraphy of the study area consists of 3 major geological entities. From oldest to youngest

these are the Limpopo Mobile Belt basement (3.4 2.0 Billion years); the Karoo Sequence (240 to

160 million years) and Quaternary deposits (< 10 million years). The Limpopo Mobile Belt (LMB)

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basement is a zone of intense deformation and metamorphism caused by the collision of the

Kaapvaal Craton with the Zimbabwean Craton and is exposed in the south eastern two thirds of the

study area. Karoo Sequence strata overlies a third of the study area to the NW and is represented by

the Tshidzi, Madzaringwe, Mikambeni, Fripp Sandstone, Solitude, Bosbokpoort, Clarens and the

Letaba formations. The Quaternary Deposits comprise mature alluvium consisting of alluvial sand

pebbles and mud lenses within the flood plain attaining thicknesses in excess of 25m and immature

alluvial gravels, sheet wash on the upper slopes of the Limpopo catchment area and between the

hills.

Figure 8: Geological Map

Three coal horizons have been delineated namely the Top, Middle and Bottom Coal Horizons. All

three coal horizons are interbedded coal and clastic units with varying coal percentages. The Bottom

Coal seam is consistently of the highest grade (coking coal). It is 3-4m thick and will be mined in both

o/c and u/g workings. The Middle Coal seam will be mined only in the open cast operation. South of

the mining area are two major ENE trending faults, bisecting Erfrust and clipping the SE corner of

Bergen op Zoom. Two interconnected faults of lesser strike length, striking NE and EW in the Karoo

through to basement occur on the farm Overvlakte. The NE shear zone is water bearing as evidenced

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by a high yielding borehole drilled on Overvlakte Ptn 3 although the main strike is within the gneisses

below the Karoo.

4.1.4 Soils

Soil structure ranges from apedal (rarely single grain) to weak blocky for the majority of top soils and

sub-soils. However, the structured broad soil group displays moderate to strong blocky structure in

the pedocutanic subsoils, while the vertic and prismacutanic broad soil groups display strong blocky

structure in the top soils and sub-soils.

All of the soils have a high base status (calcareous = extremely poorly leached; or eutrophic = very

poorly leached), given the interaction of the low mean annual precipitation (approximately 348

mm), the high mean annual temperature, and the low to high base reserve of the parent materials in

the area.

The pH of the majority of the soil forms (and thus broad soil groups) which occur in the project area

is problematic since it is high (7.4-7.8: mildly alkaline; 7.9-8.4: moderately alkaline - majority; or 8.5-

9.0: strongly alkaline). However, a limited number of broad soil groups (particularly red apedal/red

structured, and yellow-brown apedal) display a pH which is ideal (6.6-7.3: neutral) to slightly acid

(6.1-6.5: slightly acid rarely).

4.1.5 Land Use

The land uses in the area prior to mining were residential, wilderness, educational, tourism and

game farming. The majority of the sites neighbouring the mining activities are comprised of Mopani

veld. However, limited areas (majority cleared) of riverine forest occur along the Limpopo River. Dry

land farming activities are not suitable for the area due to low mean annual precipitation, a high

evaporation rate, high mean annual temperature, long dry season, occasionally moderately saline

sub-soils and marginally non-sodic sub-soils.

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Figure 9: Land Use at Vele Colliery (prior to mining)

The farmers are leasing the farms from LCC through a lease agreement. A high level of

farming/irrigation planning and management has been required in order to successfully cultivate the

soils in the area. This was done due to both the moderate to high salinity levels of the soils which

naturally occur in the area, as well as the generally moderate to poor quality water which is

available. Agricultural produce includes citrus, wheat, cotton, onions, butternut, tomatoes and

maize (occasionally). These areas are irrigated with water derived from screened sand points

(boreholes) which are located in the Limpopo River bed and stored in dams and ponds.

A number of private nature reserves were proclaimed in and adjacent to the development area i.e.

Sighetti Private Nature Reserve (in 1965) at Overvlakte 125 MS, Skuldwater Ranch at Alyth 118 MS

and Verheul Ranch at Beskow 126 MS. LCC initiated a process to deproclaim the nature reserve

Sighetti Private Nature Reserve at Overvlakte 125 MS and a Government Notice 420 of 2010 was

published in the Provincial Gazette on 24 December 2010 in terms of the National Environmental

Management: Protected Areas Act, 2003 by the MEC deproclaiming Sighetti as a Private Nature

Reserve.

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Figure 10: Conservation areas in the vicinity of Vele Colliery

4.1.6 Natural Vegetation

The vegetation of the project area belongs to the broad vegetation group of the Savannah Biome.

The Savannah Biome, being the largest biome in Southern Africa, occupies 46% of the project area,

and over one-third of South Africas land cover. It is well developed over the Lowveld and Kalahari

region of South Africa and is also the dominant vegetation in neighbouring countries of Botswana,

Namibia and Zimbabwe.

A grassy ground layer and a distinct upper layer of woody plants (trees and shrubs) are characteristic

of the Savannah Biome. Where this upper layer is near the ground (low growing) the vegetation may

be referred to as shrub veld, where it is tall and dense, as Woodland, and the intermediate stages

are locally known as Bushveld. A major factor delimiting the biome is the lack of sufficient rainfall,

which prevents the upper (tree and shrub) layer from dominating, coupled with fires and grazing,

which keep the grass layer dominant. Summer rainfall is essential for the grass dominance, which,

with its fine material, fuels near-annual fires. In fact, almost all species are adapted to survive fires,

usually with less than 10% of plants, both in the grass and tree layer, killed by fire. Even with severe

burning, most species can re-sprout from the stem bases.

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The area is dominated by tree and shrub forms of C. mopane, T. prunoides, Commiphora, Grewia

species and the grasses A. congesta, E. cenchroides and B. deflexa. A large portion of the study area,

adjacent to the Limpopo River, has totally been transformed through agricultural practices.

4.1.6.1 Protected plant species

A high diversity of protected species (22), occur in and adjacent to the study area. Twelve (12) of

these species are known and have been confirmed to occur in the study area. Species in study area

include; Aloe littoralis (Sa), Apple-leaf (Sa), Baobab (Sa), Devils Claw (Sa), Hoodia corrorii subsp.

Lugardii (Sa), Impala lily (Sa), Leadwood (Sa), Marula (Sa), Peristrophe cliffordii (Sa), Peristrophe

gillilandiorum (Sa), Shepherd's tree (Sa), and Stapelia spp (all species) (Sa). Species in

region/adjacent farms include Barleria holubii (R), Hibiscus waterbergensis (R), Huernia (R)

adjacent farms, Orbea (R) adjacent farms, Orbea maculate ssp. maculate (R), Otholobium

polyphyllum (R), Plinthus rehmanni (R), Psoralea repens (R), Tavaresia spp (all species) (R), and

Torchwood (R).

4.1.7 Animal life

The diversity of faunal species associated with Mopane veld areas is lower in the project area in

comparison with many other areas within the veld type due to low rainfall and shallow rocky sandy

soils that result in poorer nutritional status of the veld. Habitat degradation, mainly due to

agricultural practices and long-term overgrazing, also had an influence on the natural distribution

patterns of many faunal species in these areas. The development of the game farm industry (hunting

industry) over the past 30-40 years also influenced the occurrence and distribution of many faunal

species in these areas, especially antelope species and predators. In the past, many antelope species

were introduced or reintroduced; some outside of their natural distribution range and predators

have been earmarked as problem animals and subsequently removed on many farms.

Typical management actions associated with game or livestock farming, such as the provision and

increase in the distribution of permanent water, resulted in an increase in the availability of water in

these arid areas. A critical limiting factor that determined the occurrence and distribution of many

faunal species has been eliminated as a result and habitat suitability for many species increased. This

alteration of the functioning of the ecosystem did not only influence the occurrence of large

mammal species, but also small mammals, reptiles, birds etc.

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4.1.7.1 Protected Fauna species

A high diversity of protected species (46), occur in and adjacent to the study area. Twenty (20) of

these species are known and have been confirmed to occur in the study area. Only one (1) bullfrog

species (Pyxice phalusedulis) has been confirmed to occur in the study area. Studies have confirmed

the absence of Pyxice phalusadspersu.

4.1.8 Surface water

The mine is situated along the southern bank of the Limpopo River within quaternary sub-catchment

A71L. The catchment area considered for the hydro-geological evaluation is A71L, sub-catchments a,

b and c. The mining development site encompasses 4.9% of the total quaternary catchment area of

1,765 km. The naturalized Mean Annual Runoff is 3.2 mm. Figure 11 shows the drainage lines in and

around the Vele project area.

Figure 11: Vele project area drainages

There is no afforestation or other substantial direct uses of the runoff that occurs, except for the off-

channel storage irrigation dams. The quaternary catchment area has the lowest rainfall and highest

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Mean Annual Evaporation of all of the catchments in the tertiary catchment area. Figure 12 shows

the positions of the existing surface water monitoring points.

Figure 12: Surface water monitoring points

4.1.9 Groundwater

A borehole census was conducted on the farms Katina, Alyth, Semple, Overvlakte, Beskow,

Newmark, and Voorspoed, Bergen op Zoom, Amersham, Chatsworth, Erfrus and Petershof. The

project area is represented by two aquifers, the primary and secondary aquifers.

The primary aquifer of the Limpopo River consists of unconsolidated alluvial pebbles within the

channel and along the banks in excess of 25 m depth and over 2 km wide in places. Historically,

many borehole and/or abstraction points have been developed along the river banks and within the

channel. The alluvium consists of coarse sands with intermittent pebble horizons and clay lenses.

The water held in alluvial sands is mostly saline, resulting in abstraction limited to the river bank

fringes and in the river channel were river flow is abstracted via the sand. Figure 13 shows a

representation of the macro chemical analysis of the secondary aquifer prior commencement of

activities.

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Figure 13: Macro chemical analysis of secondary aquifers

Figure 14: Groundwater monitoring points

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The secondary aquifers are associated with water located in faults zones, dykes or a combination

within the consolidated rocks. The stratified rocks of the Karoo can be regarded as being of low

groundwater potential. The water levels for the primary aquifer can vary between 0-10 mbgl and

reflect the level of the river relative to the surface, whilst the secondary aquifer can vary

considerably for a number of reasons ranging between 5-30 mbgl. Figure 14 shows the positions of

the groundwater monitoring points.

4.1.10 Air Quality

A detailed emissions inventory for the project area has not been undertaken. Based on site visits,

aerial photos and site descriptions, the following sources of air pollution have been identified, being:

vehicle entrainment and exhaust gas emissions; veld fires; agricultural activities; and mining

activities on the northern side of the Limpopo River (in Zimbabwean).

Figure 15 shows a record of the dust fallout levels for the ambient air quality monitoring that

commenced on site on September 2009. A combination single and four buckets system is used for

monthly dust sampling. Samples are analysed by an independent SANAS accredited laboratory. The

dust fallout levels recorded between September 2009 and August 2010 for certain dust monitoring

stations exceeded the residential limit of 600 mg/m/day, prior to the commencement of mining

activities as a result of agricultural practices in the area. The dust fallout levels shows a decline in

May 2009, and this can be attributed to the commenced dust suppression measures on site.

Figure 15: Record of dust fallout at Vele Colliery

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4.1.11 Noise

Prior to mining the noise climate in the project area was typical of a rural/residential environment as

defined in SANS 10103, 2008: The Measurement and Rating of Environmental Noise with respect to

Annoyance and Speech Communication i.e. areas where the ambient noise levels generally do not

exceed 45 dBA during the day and 35 dBA during the night. The noise climate alongside Road R572 is

degraded and residences or farmsteads in some areas are negatively impacted from traffic noise,

particularly at night, for distances up to 1 000 m from the road.

4.2 Cultural and Heritage Resources

The project area falls within the Mapungubwe Cultural Landscape. The core area of the

Mapungubwe Landscape to the west has been intensively studied for a few decades with emphasis

at the core area on the farm Greefswald and to a certain extent the neighbouring farms of Samaria

and Schroda. The areas to the west and south of Mapungubwe have also been systematically

surveyed. The first Early Iron Age farmers in this part of the Limpopo Valley were the Kalundu

Tradition (the western stream migration into South Africa), known as Happy Rest dating back to 5th-

7th centuries AD. From about AD 700 to 900 the climate became colder and drier and no Early Iron

Age sites from this period have been recorded in the Shashe-Limpopo basin.

Khami sites dated to after AD 1450 are also found in the basin. Prior to this and shortly after the

demicive Mapungubwe, the first Sotho/Tswana people moved into this part of the interior from East

Africa. This early fancies of pottery tradition is called icon after the farm south west of

Mapungubwe. Icon pottery occurs on Khaki sites north of the Zoutpansberg and similarly Khami

pottery occurs on Icon sites. The project area seems to fall within a region where evidence suggest

that Early Stone Age, Middle Stone Age and Late Stone Age occupations occurred in the area, with

Middle Stone Age being most visible. There were no specific concentrations recorded to date, but

isolated and scatters Middle Stone Age material was found over most of the project area.

A number of Iron Age sites were also recorded in the area. Many sites were identified by a small

number of pottery fragments and the particular open nature of the terrain, which was probably

induced by human occupation. Others sites contain clear deposits and or grain bin stands. There are

no fossil ferrous material found in situ in the outcrop or weathered out in the alluvium below the

outcrop, mainly because most of the layers are presently covered by alluvium and no-fossil ferrous

geological strata. However, previous studies confirmed the presence of vertebrate fossils in the Tuli

Block. Thus when the soil cover is stripped in the area, these formations and vertebrate fossils may

be exposed.

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4.3 Ecological Sensitivity

The ecological sensitivity analysis, based on the landscape-vegetation communities revealed that,

the floodplains, Limpopo Riverine forest, rivers, rocky outcrops, pans and springs are considered to

be of high conservation value. The sandstone ridges and plateaus are considered as unique habitats

in this Mopane Veld because it provides diversity and have higher species diversity than other areas

in the study area.

The riparian wetlands in the area are regarded as the most sensitive areas and have a unique species

composition and ecosystem functioning. These systems provide habitat for several amphibious,

invertebrate, flora and other fauna species. The two (2) permanent springs on Bergen Op Zoom also

provide a critical source of drinking water for all fauna species during the dry winter months.

Together with the depressions (pans), these water bodies fulfil a critical role in thermoregulation of

fauna species during the hot summer months.

Although degraded, alluvial areas in agricultural areas can be classified and are regarded as part of

the riparian wetland system. These areas are also specifically delineated in the capability soil class

classification as riparian areas. These areas are important for rehabilitation in terms of functioning of

the sensitive river and riparian ecosystem.

Figure 16: Mapungubwe National Park Buffer Zone

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The sensitive landscapes in the project area include Mapungubwe National Park and World Heritage

site, which was declared by UNESCO in 2003. This was due to the containment interchangeable

human, cultural and social values, considered at the time. It was the largest kingdom in the African

subcontinent, regarded as a powerful state trading through the East African ports and Arabia.

Mapungubwe landscape is therefore highly significant and could have stretched as far as east of

Musina town, although little is known about the landscape east of the core area. Figure 16 shows

the Mapungubwe National Park Buffer Zone.

The Limpopo-Shashe Transfrontier Conservation Area (TFCA) has been drawn up with the objective

of establishing a conservation area of 5040km, between Botswana, South Africa and Zimbabwe. The

TFCA would also serve as a buffer zone for the Mapungubwe Cultural Landscape. However, it should

be noted that the proposed Vele Colliery falls outside the proposed TFCA (Figure 17).

Figure 17: Vele Colliery in relation to the proposed TFCA

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4.4 Regional Socio-Economic Structure

The project area is situated within the Musina Local Municipality, of Vhembe District in the Northern

part of Limpopo Province, sharing borders with Zimbabwe in the north. The Vhembe District is

composed of four local municipalities, namely Makhado, Musina, Thulamela and Mutale and covers

a total area of 21,407 km with a population estimated at over 1.1 million living in approximately

274,480 households.

The Musina Local Municipality is located in the very north of the Vhembe District, covering an area

of approximately 757 829 ha. The Municipality is made up of five municipal wards, of which three

falls within the urban centre of Musina. Ward one stretches from the western boundary of Musina.

The area is characterized by a relatively equal urban-rural population split with nearly half of the

population in Musina Municipality residing in the urban areas centred on Musina town. Commercial

activities are also almost exclusively concentrated in town.

Figure 18: Musina Local Municipality Map

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The Municipality also boasts a number of unique tourism attractions, based mainly on natural

beauty, wildlife conservation and hunting and the cultural heritage of the region related to the

people of Mapungubwe. The Mapungubwe site, declared a world heritage site, forms the anchor

attraction to the Municipality, with a number of rock art sites and private game farms and lodges

complementing this attraction. These attractions, if marketed effectively, create opportunities for

increased tourism flows to the Municipality. The strong tourism sector in the Municipality also

creates opportunities for the development of locally produced arts and crafts.

4.4.1 Population and Gender distribution

Musina Municipality had a population of over 42,000 people in 2004 with a comparatively higher

average per annum growth rate (3%) than that of the District (1.5%), the Province (1.3%) and South

Africa as a whole. The higher population growth could most probably be linked directly to the large

influx of people being experienced from neighbouring countries such as Zimbabwe. This might

create a problem as it will put pressure on all services as well as have an influence on

unemployment. The influx of these people might increase in future but to predict to what extend

numbers will decrease or increase is difficult to determine, making future planning problematic.

Population growth is, however, affected by the HIV/AIDS prevalence in the area and it is thus

important to take the HIV/AIDS prevalence into consideration when population projections are

made.

Approximately 12% of the total population in the Musina Municipality is HIV positive or has AIDS.

The highest HIV/AIDS prevalence is found in the ages between 15 and 64, which also make up the

potentially economically active group of the population. The HIV/AIDS prevalence rate in the 15-64

(17%) age category is also shown to be higher than the Municipalitys (12%) overall total. This is

problematic in that the high HIV/Aids prevalence in the potentially economically active age group

could negatively affect the Municipalities economic performance in the future. It will also put strain

on existing healthcare facilities.

The prevalence rate is lowest among the elderly members of the population, that is those who are

65 years and older. HIV/AIDS prevalence has been significantly increasing from 1995 to 2004. The

implication of the high prevalence rate in the 15-64 year age group is a decrease in the labour force

and an increase in child-headed homes. In 1995, the HIV/AIDS prevalence rate was below 5% for

both the overall total in Musina Municipality and the 15-64 year age category. The HIV/AIDS

prevalence started to rise speedily from 1997 to 2004.

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There are slightly more women (52%) than men (48%) in South Africa, and the male and female

proportions have remained relatively equal for the years 2001 and 2004. The Provincial, District and

Municipal gender distributions are relatively in line with National trends. In the Musina Municipality

there were slightly more women than men in 2001 (52% female and 48% male), while in 2004 the

male female distribution was equal.

4.4.2 Age and Gender distribution

The Musina Municipality has the highest percentage of people who are potentially economically

active (70%), higher than the District (57%) and the National (58%) percentages. This might indicate

an influx of people into the area in search of employment, suggesting a lack of employment

opportunities elsewhere. This could also mean that the area is perceived to have employment

opportunities. If these people can be successfully employed it will have a positive effect on economic

growth. It does however put pressure on the municipality to provide sufficient employment

opportunities. This demand for work might increase as there are a lot of people in the age group 15-

19, leaving school and joining the workforce in the near future. The employment situation might be

aggravated even more by an influx of people from Zimbabwe.

The high proportion of potentially economically active persons within the Musina Municipality

implies that there is a larger human resource base for development projects to involve the local

population and potentially a lower dependency rate due to the lower numbers of youth. Normally a

high percentage of people in this age group results in a higher childbirth figure, as is evident from

the higher amount of people in the group under the age of 5. This will result in a higher demand for

educational facilities in future. The higher than usual amount of people in the age group above 65

will increase the demand for appropriate facilities (especially healthcare) to take care of these

people.

4.4.3 Households

On average, there are 3.4 people per household in the Musina Municipality. Doppie has the highest

household size, with approximately 7 people per household in 2001.Doppie is a farm that is owned

by the Department of Agriculture, where the beneficiaries/farmers also reside on the land. Dzanani

rural area and Folorodwe have the lowest household sizes, with an average of 2 people per

household in both these areas.

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4.4.4 Education levels

The proportion of people with primary education has improved in the Musina Municipality from 23%

in 1996 to 34% in 2001. Musina rural surroundings had the highest improvement (from 23% in 1996

to 36% in 2001) in terms of the proportion of people with primary education, with Soutpansberg

Rural areas showing a 12% improvement from 23% in 1996 to 35% in 2001. Of concern however is

the increase in unschooled people in Dzanani Rural areas. This might suggest an influx of unschooled

people not being able to find employment elsewhere. This will have a negative effect on

employment and social conditions in that area. Other places that experienced improved figures in

respect of the percentage of people with primary education include Musina urban area (from 17% in

1996 to 27% in 2001), Feskraal (from 42% in 1996 to 48% in 2001) and Nancefield (from 27% in 1996

to 32% in 2001). Musina town, Dzanani Rural area and Soutpansberg rural area showed a decrease

in the level of people with secondary education, while Musina peri-urban area, Feskraal and

Nancefield showed improvements from 1996 to 2001. Overall, the levels of secondary education

remained similar to that of the Municipal average, which increased from 23% in 1996 to 34% in

2001.The proportion of people with tertiary education improved slightly from 2% to 3% in the

Musina Municipality over the aforementioned time periods. Musina SP, however, showed a large

improvement in tertiary education from 4% in 1996 to 10% in 2001. Doppie also has a far larger than

municipal average tertiary educated population, measuring at 13% in 2001. Although there is an

improvement in education levels, it is obvious that a large number of people in the district are

illiterate.

4.4.5 Employment

In general, Musina municipality has a lower unemployment rate than the province as well as the rest

of the district.

Approximately 75% of the economically active members of the municipal population are employed.

In Folorodwe, the 156 members in this area are all employed, meaning that every person of working

age has been able to secure a job and earn an income. Employment proportions are also higher than

the municipal average for Dzanani rural area (94%), Soutpansberg rural area (94%), Musina peri-

urban area (90%), Bergview East (77%) and Musina town (76%). Madimbo has the lowest

employment rate (12%), or the highest unemployment rate, with 88% of the economically active

population not being employed.

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It should be noted that 37% of the population of Madimbo has no schooling. This area also has the

second biggest household size (5 persons per household). It is thus clear that there are currently

limited employment avenues in the area. Areas that are performing below the Municipalitys

average employment proportions are Kempo Mine Compound (39%), Harper Mine Compound

(42%), Nancefield (54%) and Feskraal, with a 55% employment rate. It must also be noted that

Kempo Mine Compound, Harper Mine Compound and Nancefield are amongst the sub places with

the highest population density. The might indicate that these areas will experience a lot of social

problems.

The areas with higher unemployment rates are also noted as having higher female proportions.

These areas can thus clearly be noted as having limited existing employment avenues, so much so

that a large proportion of the male population have left the areas in search of employment

elsewhere. This will have as result many single parent households, further complicating the social

problems of these areas.

4.4.6 Sectoral economic structure

The sectoral structure of an economy is a good indicator of its diversification and dependency upon

a particular sector. The Gauteng economy is highly services-oriented. Approximately 73%of the

Gauteng economy comprises of services industries, such as trade, transportation, financial and

business services. Nevertheless, the Gauteng Province has a well-developed manufacturing industry

that contributes 18.4% to its economy.

On the other hand, the tertiary sector in the Limpopo Province is as big as its primary and secondary

sector put together. This shows a relative dependence of the Limpopo economy on the primary and

secondary industries, in particular on mining. The largest sector in the Limpopo economy is the

community and government services sector (20%), followed by the mining sector contributing 20%

to its GDP. The Local Municipalities that is part of the project area mirror the situation observed in

the Limpopo Province. The Musina is highly dependent on the mining sector, as it contributes 26.9%

to its economy. Unlike Musina, the Makhado economy is tertiary sector-oriented with the largest

service sector the Community, social and personal services sector that contributes 38.9% to its

economy. The mining industry contributes 3.4% and manufacturing 7.6% to the local economy.

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5 PUBLIC PARTICIPATION PROCESS

Naledi was appointed by LCC as an independent consultant to manage and facilitate the Public

Participation Process for the proposed Environmental Authorisation Amendment for the Vele

Colliery.

The Public Participation Process has been designed in terms of the NEMA Public Participation

Guideline and the extent of the Environmental Authorisation Amendment required.

Public participation is a process and vehicle to provide sufficient and accessible information to

registered Interested and Affected Parties (IAPs) in an objective manner to assist them to identify

issues of concern, to identify alternatives, to suggest opportunities to reduce potentially negative or

enhance potentially positive impacts, and to verify that issues and/or inputs have been captured and

addressed during the assessment process.

This chapter of the report provides an overview of the tasks undertaken for the public participation

process prior and post the release of the Draft Amendment Report. The process being implemented

is subject to the approval of the Department of Environmental Affairs (DEA) at National Level.

5.1 Interested and Affected Party Database

An IAP database was developed throughout the Public Participation for the New Order Mining Right

Application, Integrated Water Use License Process as well as the Environmental Authorisation

process. This database was utilised to establish the IAP database for this process. IAPs were

contacted to confirm their wish to remain a registered IAP and additional stakeholders were added

throughout the process if and when they requested to be registered.

A total of 297 parties are registered on the IAP database, they include parties from the following

categories:

National, Provincial and Local Government

Business and Commerce

Environmental NGOs and Consultancy companies

Research Organisations

Education Institutions

Community Based Organisation and Structures

Regional and Neighbouring Landowners

Tourism Organisations and Operators

Media

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The final IAP database is attached as ANNEX-D1.

5.2 Public Participation Notifications

As part of the Environmental Amendment Authorisation Process, notifications were sent to all

registered IAPs. A Background Information Document (BID) was utilised to provide information

regarding the amendment application, and IAPs were also made aware of the availability of the Draft

Amendment Report as well as the methods to access copies of the report. A copy of the Notification

BID is attached as ANNEX-D2.

A record of notifications via email, post and sms was kept and is attached as ANNEX-D3.

5.3 Engagement Sessions

In December 2013, CoAL embarked on a stakeholder roadshow with regulatory authorities at a

national and provincial level seeking to:

Present the PMP and its related impact on the project, authorisations, and commitments;

Determine what would be required to ensure full compliance with all authorisations; and

Ensure the alignment of the PMP and its associated activities with the prescriptions of the

authorisation.

The following Departments have been engaged:

Department of Environmental Affairs

Limpopo Department of Economic Development, Environment and Tourism

Department of Mineral Resources

Department of Water Affairs (National and Regional)

Minutes of the Authority meetings are attached as ANNEX-D4.

The original EIA Process followed a rigorous Public Participation Process and established an

Environmental Monitoring Committee (EMC) with local stakeholders. The EMC has been engaged

regarding the amendment.

The EMC was established in terms of the Environmental Authorisation granted to LCC as an oversight

committee to monitor oversight of LCCs compliance in respect of the EA and IWUL. The EMCs

mandate is to monitor oversight, and to manage potential impacts, promoting pro-active

compliance, and contribute to improved decision making and environmental practices.

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The membership of the EMC and its sub committees consist of all regulatory authorities, relevant

organs of state, municipal representatives, civil society represented by the coalition and other key

stakeholders identified during the stakeholder engagement processes. The membership is as

follows:

Department of Environmental Affairs

Limpopo Department of Economic Development, Environment and Tourism (LEDET)

Department of Water Affairs (National and Regional)

Department of Agriculture, Forestry and Fisheries

Department of Mineral Resources

Musina Local Municipality

Vhembe District Municipality

Capricorn District Municipality

Blouberg Local Municipality

South African National Parks (SANParks)

South African Heritage Resources Agency (SAHRA)

Mapungubwe National Park and World Heritage Site

Weipi Farmers Association

Save Mapungubwe Coalition

Coal of Africa Limited (CoAL) and Limpopo Coal Company

The company presented the proposed PMP to the EMC to obtain comments, listen to concerns and

understand key issue relating to the PMP. Minutes of the EMC meetings are attached as ANNEX-D5.

The company will continue to engage through these structures during the life of mine.

5.4 Availability of the Draft and Final Report

The draft Amendment to the Environmental Authorisation was made available for comments from 4

June 2014 for a period of 30 calendar days ending on 4 July 2014 at the following places:

Musina Library

Mapungubwe National Park Reception

Blouberg Municipal Satellite Office in Alldays

Jacana Environmentals cc (7 Landdros Mare Street, Polokwane)

Naledi Development (143 Sefako Makgatho Drive, Sinoville, Pretoria)

Downloaded from Coal of Africa Limited Website (www.coalofafrica.com)

A download link was also provided

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Notification of the availability of the report was also communicated to all registered Interested and

Affected Parties via email, post and sms as indicated in ANNEX-D3.

Comments have only been received from the South African Heritage Resource Agency providing

direction if graves older than 60 years are found. It should be noted that no graves are affected by

the Amendment. A copy of the comments is attached as ANNEX-D6. The lack of comments can be

assigned to the fact that the amendment to the existing Environmental Authorisation is not

extensive.

Once the final Amendment Report has been submitted to Authorities, registered IAPs will be notified

of its availability in the same manner as described above.

.

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6 SUMMARIES OF SPECIALIST STUDIES

Table 4 provides a list of specialist studies and supplementary reports which were commissioned in

2009 by LCC during the initial NOMR application process. The scopes of these environmental studies

covered the same receiving environment and are considered relevant to the current amendment

application refer to ANNEX-B for specialist declarations in this regard.

Table 4: Summary of Specialist Studies conducted in 2008 and 2009

NAME DISCIPLINE ORGANISATIONS QUALIFICATIONS

B. McLeroth Soil & Land Use Red Earth cc BSc Agriculture

G. Nel Biodiversity Dubel Environmental BSc (Hons) Wildlife Management

C. Haupt Groundwater WSM Leshika BSc (Hons) Engineering Geology

K. Sami Groundwater Modelling

WSM Leshika MSc Groundwater Hydrology

A. Vuuren Surface water WSM Leshika M Eng (Civil), PR Eng

D. Cosijn Noise Jongens Keet Associates BSc (Civil) Engineering

S. Thompson Air quality SSI-Bohlweki BSc (Hons) Environmental Science

D. van Vuuren Visual MetroGIS M (Town & Regional Planning)

T. Rorke Blasting BME Blasting Technology MSc Seismology

F. Roodt Heritage R&R Cultural Resources MSc (Archaeology)

F. Durand Palaeontology Skarab cc PhD (Palaeontology)

W. Mullins Macro-economic Conningarth Economist PhD

L. Grobbelaar Socio-economic Naledi Development Restructured (Pty) Ltd

BA (Hons) in Environment and Society

A brief summary of specialist studies relevant to the activities, which were reviewed and considered

in assessing the nature, extent, duration and significance of the consequences of the commenced

activities on the receiving environment, including cumulative impacts is provided below. It provides

an explanation of the assessment methodology, assessment of the impacts, and key findings and

conclusions.

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It should be noted that although the specialist studies were undertaken prior to the actual

implementation of activities, the actual impacts were expected to closely mirror the findings of the

specialists. Where necessary a worst case scenario was modelled and assessed to ensure

appropriate risk adverse mitigation. Mitigation actions were implemented parallel to the actual

activities to limit as far as is feasibly possible the extent of the impacts and to actively manage

cumulative effects.

6.1 Biophysical Environment

6.1.1 Air Quality (SSI-Bohlweki Environmental, 2009)

The investigation focused on key aspects of air quality assessment, including identifying and

assessing potential sources of air pollution. A dispersion modelling approach was undertaken within

the project area and surroundings, using the US-EPA approved Industrial Source Model, to assess

pollution concentrations and depositions from a wide variety of sources associated with an industrial

source complex. The input data included in the ISC-ST3 model predictions entailed pollution sources,

sensitive receptors, wind velocity and direction, ambient temperature, mixing height and

atmospheric stability class and the terrain data; adopting a worst case scenario, using South African

ambient air quality standards as a base for comparison; including the emissions of particulate matter

of less than 10 micrometers (PM10) and nuisance dust associated with all potential sources. The

potential sources of dust emission and activities which will likely have an impact on air quality are

the movement of vehicles and machinery on the unpaved access and haul roads, all activities

associated with construction on site, especially the handling of soil and overburden, transportation

of ore and coal products and emission of carbon monoxide gases from machinery.

A comparison analysis of the collected data with the SANS 1929: 2005 Daily and Annual Limits

conclude that inhalable particulates matters (PM10) for the areas adjacent to the development site

were not exceeded. However, the dust fallout limit set for the residential areas (600 mg/m/day)

were found to be relatively high and exceeded prior to the commencement of the development. The

following mitigation measures were proposed:

Ambient air quality monitoring must be undertaken to establish baseline condition and

establish a level at which the operations impact on the ambient air quality.

Dust fallout monitoring must be utilized to assess the level of nuisance dust associated with

the development and all processes.

Sampling of dust fallout should be conducted on site and the surroundings.

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Regular watering (e.g. haul roads) and application of dust suppressant (e.g. Dustex) is

recommended.

Additional monitoring should be carried on site to determine occupational exposure limits.

Vehicle speed on unpaved roads should be limited to 40 km/h.

Mitigation measures should be in place to reduce vehicle exhaust emissions.

6.1.2 Groundwater (WSM Leshika Consulting (Pty) Ltd, 2009)

The groundwater studies encompassed surface and groundwater interactions, sustainability of the

primary and secondary aquifers, the current and future water uses, potential for generation of acid

mine drainage and water pollution and potential impacts associated with abstraction, dewatering,

inflows and water supply.

The groundwater studies information was acquired in two phases a desktop study and hydro-

census. The groundwater occurrence, use and water quality was assessed. The ground proofing

phase comprised of drilling, water pumping tests, water quality sampling and drill core sampling for

acid base accounting. The results of these two phases and the geological data were considered for

the development of a numerical groundwater model. The packer drilling and testing was used to

determine the in situ permeability of different hydro-geological models. Water levels information

was then collected to determine the present status of the piezometric surface and macro-chemical

analysis for baseline water chemistry. The representative samples of diamond drilling core were

further analysed for sulphide content for use in the AMD impact determination.

The water quality of the primary aquifer is mostly saline. Abstraction is limited to the river bank

fringes and in the river channel. The water quality deteriorates rapidly after the river stops flowing

which prevents major exploitation of the water stored in the alluvium. On the other hand, the

secondary aquifer is associated with poor water quality not utilised for irrigation.

The primary aquifer water levels in the alluvial system is generally low between 0-10 mbgl, while the

secondary aquifer water levels vary considerably due to topography, layered strata and the presence

of dykes and faults. Due to low rainfall and high carbonate contents, the potential for Acid Mine

Drainage (AMD) generation is insignificant. The groundwater flow is orientated northwards towards

Limpopo River with low flow volumes due to the low recharge and low permeability. The

development will not affect the Weipe and Overvlakte aquifers. The water balance of the aquifer will

not be affected if the net river loss of 84.5 Ml/day prior to the development is not exceeded, and

abstraction is reduced by 7 Ml/day. The impact on river losses will vary over the life of the mine.

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The following mitigation measures were advanced:

The residue material must be deposited in the open pit.

Potential acid generating horizons will be placed at bottom of pit, submerged below water

table, preventing oxidation.

Rehabilitation will be concurrent with mining, minimising potential to oxidise sulphide

bearing rocks and controlling migration of high sulphate leachate.

Stockpiling and exposed residue material will be minimised by direct placement of

overburden and topsoil, thereby reducing the footprint.

Grass cover will be re-established, as soon as possible after top soiling to minimise

infiltration of water through residue material.

6.1.3 Surface Water (WSM Leshika Consulting (Pty) Ltd, 2009)

When conducting surface water studies, WSM Leshika Consulting (Pty) Ltd incorporated all

legislative requirements and best practices guidelines. The study also involved an identification and

assessment of the drainage lines, estimation of the flood peaks along the affected drainage lines and

determination of the associated flood widths.

A topographical survey was conducted to obtain data at 1 meter contour intervals. The river flow

was modelled using specialised software to determine the flood widths. In order to determine the

layout and conceptual design of adequate storm water management, the development site was

superimposed on the site map. In addition, the potential impact of project activities (including the

pipeline, the above ground storage and associated infrastructure) on surface water resources were

assessed.

The study recommended that since the site is situated within a sensitive area and in very close

proximity to the Limpopo River which is an international river, the best environmental option should

be used to mitigate potential negative impacts. The following mitigation measures were proposed:

The dirty water dams or slurry dams should be operated to remain at low levels, especially

during the rainy season.

The recycling of dirty water has been optimised within the planned system and a fully closed

dirty water system should be implemented, i.e. no discharges of dirty water to the

environment.

A filter process should be implemented within 3 years of operation, thereby eliminating the

need for dirty water dam and increasing the volume of recycled water.

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Plastic liners will be placed in all the dirty water dams, as well as the slurry (dam) facilities

and stockpile areas, thereby eliminating the potential for groundwater pollution from these

facilities.

Flood protection berm should be in place to prevent flooding during high peak flows in the

Limpopo River.

The diversion of clean storm water around the dirty water areas.

Construction of silt traps to minimise the potential sedimentation.

Regular maintenance and inspection of cut off diversion berms to ensure serviceability.

6.1.4 Noise (Jongens Keet Associates, 2009)

The investigation entailed the assessment of the noise impact descriptors, determination of the

existing noise situation and consideration for the construction and operational phase of the

development. All the assessments were conducted on a worse case or conservative basis, for

unmitigated conditions and without consideration for factors that could assist in the attenuation of

noise. It was noted that, in reality, there will be greater attenuation with distance than assessed

when there are houses, other buildings, vegetation and terrain restraints in the intervening ground

between the source and receiver point.

In assessing the noise impacts of the development, a worst case scenario was modelled, which

included, no shielding sources by buildings berms, topographical features, hard surface (no

attenuation by vegetation) and worst case scenario meteorological situation i.e. winds > 6 ms/s.

Baseline measurements and auditory observations were taken at eight main sites in order to

establish the existing ambient noise conditions of the study area. Conditions for the daytime and

evening periods at these points were ascertained. In order to complement the short-term noise

measurements in the study area, the existing 24-hour residual noise levels related to the average

daily traffic (ADT) flows on Route R572 were also calculated.

The main sources of noise in the project area are traffic on the R572 Musina-Pontdrift Road, the

servitude road, an existing mine in Zimbabwe, a pump station, agricultural (farming) activities and

hunting practices. It should be noted that pump stations and farming activities were identified as a

major sources of noise. The residual noise climate was typical of an agricultural environment and the

ambient noise levels generally did not exceed 45 dBA during the day and 35 dBA during night times.

The noise climate along site R572 degraded with regard to residential living.

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The following mitigation measures were proposed: