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Briefing on Acid Mine Drainage (AMD)

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1 Briefing on Acid Mine Drainage (AMD)
Portfolio Committee Water and Sanitation Briefing on Acid Mine Drainage (AMD) Presented by: Anil Singh (DDG: WRSSRR) Department of Water and Sanitation Date: 24 October 2018 PRESENTATION TITLE Presented by: Name Surname Directorate Date

2 Presentation overview
Background to Acid Mine Drainage (AMD) AMD in the Witwatersrand gold fields Government’s response to mitigate Witwatersrand AMD Witwatersrand AMD Project Status Challenges Parallel actions in process National AMD/ mine water management initiatives

3 Background to AMD AMD AMD largely associated with gold and coal mines
CLEAN WATER Gold/ coal ore Air AMD AMD largely associated with gold and coal mines Water + gold/ coal ore (contains naturally-occurring sulphur compounds) + air = AMD (acidic, metal-rich water with elevated sulphate salt) AMD pollutes water resources (salinity due to elevated salt and metal loads): destructive to environment and socio-economic development Salinisation of water resources by AMD recognised as single largest contributor to declining water quality [15% decline in SA’s raw water since 2000] Considered biggest threat to water security and environment Prevalent in GP (gold fields); KZN (coal fields); and NC and FS (gold/ base metals) Potential AMD of special concern in MP and LP (Waterberg coal fields considered strategic resource for local and domestic coal market)

4 First known incident of gold mine AMD surface decant
First known incident of gold mine AMD impacting natural and built environment First known incident of gold mine AMD surface decant ca. 1 September 2002, Krugersdorp, Gauteng (Western Basin) 4

5 Witwatersrand gold fields (“Basins”)
Western Basin Central Basin Eastern Basin

6 Witwatersrand Basins 45 to 80 Ml/d 80 to 110 Ml/d 20 to 50 Ml/d ~20 km
Western Basin 20 to 50 Ml/d 45 to 80 Ml/d Central Basin 80 to 110 Ml/d Eastern Basin ~80 km

7 AMD risk to the Vaal River System (VRS)
Hartbeespoort Dam Eastern Basin Western Basin Central Basin Klip Blesbok/ Suikerbos To Orange River Vaal Barrage Vaal Dam Proposed uThukela-Vaal mega-transfer augmentation scheme (KZN) LHWP-1 LHWP-2 (2024/25) 7

8 Government’s response to mitigate Witwatersrand AMD
Key risk with Witwatersrand AMD is water security in the VRS 1 Sep 2010: Inter-Ministerial Committee (IMC) on AMD Team of Experts (ToE) appointed by DWS and DMR Situation assessment – ToE Report titled: “Mine Water Management in the Witwatersrand Gold Fields with Special Emphasis on Acid Mine Drainage” (IMC AMD Report) Six recommendations for AMD mitigation Parallel Study - AMD Long-term Feasibility Report ( ) DECEMBER 2010 – RECOMMENDATIONS SANCTIONED BY IMC FEBRUARY 2011 – IMC AMD REPORT APPROVED BY CABINET

9 ToE Recommendations to the IMC
February 2011 Progress/ Status update (2018) Stop decant (Western Basin) Prevent decant (Eastern and Central Basins) Achieved/ on track Ingress control (reduce loss of clean water to mine voids) Pending work of Expert Team (DWS, DMR, WRC) AMD Treatment Short-term: Neutralisation & metal removal Long-term: Desalination for re-use Pending work of Expert Team (DWS and WRC) Improve monitoring; research and development (technology innovation) Pending pilot trial demonstration of selected technologies with WRC Other AMD sources (e.g. tailings facilities, rock dumps, low-grade facilities) Funding (Environmental levy; Waste Discharge- Charge System [WDCS]) Concept note drafted by Treasury for stakeholder consultation WDCS to be implemented

10 Project implementation
06 April 2011 – TCTA directed to implement “emergency works” (Short-term Solution) 22 April 2014 – concurrence between National Treasury and DWS to fund AMD Project off-budget using LHWP loan (R43 billion Government t Guarantee – R18 billion for AMD and R25 billion for LHWP) Cost recovery via Vaal River Tariff, environmental levy and WDCS 33 % Cost-recovery from Vaal River Tariff 67 % Cost absorbed by Government until 2018/2019; subsequently, 67% sharing between Government and mines Environmental Levy and WDCS (to be implemented) 19 May 2016 – TCTA directed to implement Long-term Solution LTS is sustainable expansion of STS – enables reclaimed AMD to be used beneficially (industry and/ or potable use) LTS has business case and augments VRS supply security (reclaimed AMD is usable and need for dilution releases curtailed)

11 Project Status: Short-term Solution
Project complete and fully operational in all 3 Basins Total Capex cost – R2.2 billion; O&M treatment (neutralisation) cost – R5/ m3 Eastern Basin Commenced May 2014 New neutralisation plant (110 ML/d) at Grootvlei No. 3 Shaft, Springs Operational since Aug 2016 Treated water released into Blesbokspruit Central Basin Commenced January 2013 New neutralisation plant (84 ML/d) at ERPM SWV Shaft, Germiston Treated water released to Klipspruit Operational since May 2014 Western Basin Commenced December 2011 Existing neutralisation plant refurbished (36 ML/d plant + 70 ML/d pump station) Treated water released to Tweelopiespruit Surface decant eradicated by August 2012

12 Western Basin STS

13 Central Basin STS (pump station)

14 (reactors and aerators)
Central Basin STS (reactors and aerators)

15 (reactors and aerators)
Central Basin STS (reactors and aerators)

16 Eastern Basin STS

17 Waste (metal-sulphate sludge) {pumped to a mine waste dump}

18 Long-term Solution Potential deficit in VRS if AMD not treated for beneficial use – could imply water restrictions in Gauteng (exacerbated in drought conditions) AMD purification (desalination) and re-use is a strategy to augment VRS VRS Yield Model confirms AMD desalination increases supply potential of the VRS Feasibility Study (July 2013) recommends expansion of STS into LTS for beneficial AMD re-use Potential off-takers for desalinated AMD identified e.g. SASOL, ERWAT, Ekurhuleni, Johannesburg Water, Rand Water and Eskom

19 Long-term Solution – Challenges
Project Status (1) Long-term Solution – Challenges March 2016 – MoF requested MoW&S to separate AMD Project funding from LHWP Loan and Government Guarantee If separated, LTS is unfunded (lacks business case) and is NOT VIABLE 14 August 2018 – MoW&S cited need for 4 Ministers (Water and Sanitation, Finance, Environmental Affairs and Mineral Resources) to deliberate the matter - intention is to shape a Cabinet Memo seeking Cabinet’s ratification on way forward 29 August 2018 – MoF indicated readiness to participate in above 28 September 2018 – NT advised that only MoF and MoW&S required to deliberate the matter Pending resolution of above, TCTA instructed to halt further work on LTS (engineering conceptual design and EIA) Review on AMD LTS implementation (independent of TCTA) imminent

20 Long-term Solution – Parallel actions
Project Status (2) Long-term Solution – Parallel actions Actions underway to address fiscus’ concerns: Obtain most-current risk of AMD on VRS Yield Model to assess water supply security and determine if LTS Must be implemented immediately, or Amenable to be deferred, or Can be implemented in phases (Process underway by DWS Planning and PSP; report due 31 March 2019) DWS and WRC leading core expert team (supported by DMR, CGS and others e.g. CSIR) for updated options analyses and current relevance of recommendations in 2013 Feasibility Report and 2010 IMC Report (5-8 year time lapse) Secure interim agreements with potential off-takers for desalinated AMD bulk water users – this will establish a revenue stream Timeous conclusion of above processes allows LTS to be accelerated should an amplified risk to the VRS water security be identified

21 National AMD/ mine water management initiatives
AMD/ mine water in other mining areas being assessed Strategies for AMD/ impacted mine water mitigation drafted – Implementation via CMAs and Provincial Offices Government Notice 704 (Regulations for Water Resources Protection in the Mining Sector) under review to include financial provisions for mitigation of latent water resources impacts (post-mining) WDCS and Environmental Levy to be implemented (invokes “polluter-pays”) Strategic Water Partners Network and National Business Foundation: Government and mining sector collaborating on sustainable mine water projects – employment stimulation, food security, enterprise development, rural development and women/ youth empowerment Mine Water Coordinating Body: Partnership between Government and MP coal mines to promote and integrate efforts between all role-players in Olifants River catchment Mine Water Policy developed (12 policy principles)

22 Mine Water Policy Aim: to be considerate of existing applicable legislation and regulations; and provide high-level direction on amalgamating an inclusive and adaptive approach for mine water management that is premised on sustainable development Integrated approaches to mine closure Apportionment of liabilities Optimum use of appropriate and cost effective technology Classification and differentiation of mines Promotion of sustainable mining development Environmental vigilance and continuous improvement Sustainable infrastructural management after mine closure Re-use of treated mine water, including AMD User commitment to waste management options Government accountability: Mine water management including AMD in derelict and ownerless mines Mine water stewardship

23 Thank you Questions?


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