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  • Governance & Sustainability
 
 
  Managing risk, issues & opportunities  
     
  SHE performance  
   
     
 

ENVIRONMENTAL MANAGEMENT

Exxaro is committed to conserving natural resources and reducing the environmental burden of pollutants to the natural environment by:
  • Complying with all applicable environmental legislation
  • Developing innovative policies and programmes for addressing environmental impacts.

One of the measures employed has been the use of a dedicated in-house environmental management specialist unit which was created as part of the SHE organisational structure to address environmental risks and impacts to enhance environmental legal compliance. This unit’s members include an airquality specialist, hydrologist, ecologist, environmental resource accountant, environmental compliance specialist, environmental impact assessment specialist and a geohydrologist.

Key risk areas and management activities
  • Water and waste management
  • Air quality and climate change
  • Biodiversity and land management
  • Rehabilitation environmental liability management.
 
     
 

Water and waste management

Exxaro’s approach to water management is guided by South African environmental legislation (National Environmental Management Act, Minerals and Petroleum Resources Management Act, National Water Management Act). It is primarily focused on sustainable use of water, pollution control and avoidance.

Exxaro’s policy is to use appropriate measures at all operations to meet the intent of the law through site-specific water management plans. Our water treatment facilities ensure that water used in our operations meets legislated quality standards for all receiving environments or discharge areas.

Exxaro is also actively participating in industry investigations that will inform the overall direction of a water-management master plan and future water treatment plant investments. These include plants treating discharged mine water to meet industrial and potable water standards. A portion of the treatment costs will be recouped from benefiting municipalities that in turn supply this water to general users.

 
 

investments. These include plants treating discharged mine water to meet industrial and potable water standards. A portion of the treatment costs will be recouped from benefiting municipalities that in turn supply this water to general users.

As Exxaro’s business activities are spread over several commodities requiring various different mining, beneficiation and disposal activities, the associated risks are diverse. The key challenges at present in this field are:
  • Post-closure water management
  • Identification, separation and management of clean and dirty water areas
  • Potential of excessive recharge to mine workings
  • Groundwater contamination from various waste sources.

To manage these risks the following actions were taken:
  • Development and communication of a dedicated integrated water management policy
  • Baseline assessments
  • Integrated water and waste management plans completed for New Clydesdale and Leeuwpan. Plans in progress for Matla, char plant and Glen Douglas. Grootegeluk, Zincor, Tshikondeni and Inyanda already have plans in place.
 
Business operation   Revised water balance 2007
Matla   In progress
Grootegeluk   In place
Arnot   No
New Clydesdale   Yes
Leeuwpan   Yes
Zincor   In place
Char plant   In progress
KZN Sands – Hillendale   No
North Block Complex – Strathrae   No
Glen Douglas   In progress
Tshikondeni   In place
Rosh Pinah   Yes
Inyanda   In place
North Block Complex – Glisa   Yes (Eerstelingsfontein)
KZN Sands – Central processing complex   No

Actual data are set out on table below.

   

Developing and updating water and salt balances at operational units is a fundamental water management tool to ensure the correct strategies and decisions throughout the integrated water and waste management plans.

 
 
 

Case study

Tshikondeni co-disposal facility

The basis of the approach used at Exxaro on integrated water and waste management at mines is the Department of Water Affairs and Forestry (DWAF) esource protection and waste management hierarchy of decision-taking. This in turn is based on a precautionary principle and sets the following order of priority for mine water and waste management decisions or actions:

  • Prevent or minimise pollution/contamination of water used by implementing necessary management measures or strategies
  • Reuse or reclaim contaminated water in cases where complete pollution prevention was not possible
  • Treat water that cannot be reused or reclaimed
  • Reuse treated water
  • Discharge or dispose of excess water.

 

Return water dam - Tshikondeni to disposal facility
 
     
 

From a conservation perspective, reuse and reclamation ensure effective and beneficial use of scarce water resources and overall environmental protection. Reuse of waste water on a mine is preferred to potentially costly treatment schemes prior to discharge of effl uent in a water resource. For example, the new tailings disposal facility at Tshikondeni mine is contained within the discard dump which is continuously raised during construction to ensure adequate containment of the tailings discharge. The discard is transported mechanically using vehicles and compacted in 150mm layers to reduce the risk of spontaneous combustion. The tailings material is pumped into the
tailings facility (containment area) via HDPE pipes from the plant in slurry form and allowed to consolidate.

The new facility was formally designed and constructed according to accepted practice and in line with the industry norm, and allowance made for an internal drainage system with effl uent return infrastructure. The design was approved by all the necessary authorities and the fi nal closure elevation of the facility was agreed. By re-using the seepage, the mine is able to reduce the intake of raw (river) water, in turn decreasing water supply stress in this area.

Air quality management

Legal compliance and natural ecosystem protection are the focus of Exxaro’s air quality management activities. Due to the nature of Exxaro’s business practices, certain activities present challenges in terms of adequate air quality management, for example, emissions generated from:
  • Blasting coal seams
  • Spontaneous combustion of discard dumps
  • Ore processing activities
  • Wind erosion of exposed operational areas
  • Vehicular dust from unpaved operational roads.
 
     
 
Figure F: Air quality management system


Figure F: Air quality management system

Air quality management activities in Exxaro aim to ensure that:

  • all business units and subsidiaries protect the environment through reasonable measures to prevent the emission of criteria air pollutants
  • the quality of ambient air in the immediate receiving environment is not adversely affected by emission of air pollutants directly from operations.

To minimise the risks posed by our mining processes, Exxaro has adopted an air quality management framework which is informed by the South African National Environmental Management Air Quality Act and guidelines recommended by the World Health Organisation. Figure F illustrates a systematic approach used by business operations to identify key risk areas in terms of air emissions.

Based on the Exxaro air quality management framework, in 2007 more than 50% of business operations completed a detailed emissions inventory and accompanying dispersion models, with 90% of business operations monitoring ambient concentration of fallout dust from mining activities. Monitoring activities at business operations, where relevant, will be expanded to include smaller particle matter suspended in air.

Actual data are presented in table below.

 
 

Case study


Grootegeluk spontaneous combustion monitoring

Exxaro has investigated the atmospheric emission from most of its operations to identify those with significant impact. Spontaneous combustion of discard dumps was identified as a significant source of air quality risk given its dual effect on both ambient air quality and climate change.

Grootegeluk was identified as the pilot site to develop the methodology tha tcan be applied across the group to quantify emissions from spontaneous combustion. A three-month monitoring campaign was initiated at Grootegeluk where data on air quality were collected to monitor pollutant concentrations near the dumps.

Given the results of the pilot study, we decided a more detailed assessment is required to determine the emission factors for spontaneous combustion. For 2008, budget has been allocated to conduct more complex emission flux measurements on known dumps at Grootegeluk. The proposed project will be a collaborative initiative between Exxaro and University of Johannesburg.

   
total energy used from electricity consumption & Total electricity usage from die
 

 

 
     
 
CARBON DIOXIDE EMISSION & CARBON DIOXIDE EMISSION
 

Climate change, energy and greenhouse gases

Exxaro recognises that a commitment to clean energy is essential to remain competitive while dealing effectively with:
  • potential energy shortages
  • climate change
  • related environmental concerns
  • rising costs of energy.
 

Exxaro commits itself to both national and international protocols aimed at encouraging countries and industries to adopt more responsible energy use programmes.

In particular, Exxaro has committed to optimising energy use by improving energy efficiency by 15% by 2015 as outlined in the national energy efficiency accord of the Department of Minerals and Energy for the industrial and mining sectors. As part of fulfilling this commitment, Exxaro has initiated an independent verification of baseline energy use, using prior-year diesel and electricity figures.

The 2007 energy consumption baseline assessment showed that the coal business commodity is the largest consumer of both electricity and diesel energy, mainly
from operational activities.

From this baseline data, it was possible to derive our greenhouse gases exposure profile from primary energy use and express the results as carbon dioxide equivalent (CO2-e). For 2007, Exxaro produced 237kt of CO2-e from primary energy use, ie the consumption of electricity and diesel. As expected, our coal business commodity accounts for the largest share of CO2-e emissions.

 
  Clean energy policy
Exxaro has established a clean energy forum that aims to reduce the company’s carbon footprint by becoming more energy efficient and by using cleaner technologies. The forum – made up of key members of senior management – has compiled a clean energy policy which states that Exxaro will:
  • improve energy efficiency by 15% within the next seven years
  • minimise energy consumption and costs
  • promote the use of energy-efficient equipment and designs
  • understand and reduce our carbon footprint
  • use and develop cleaner technologies, ie co-generation and renewable energy
  • reduce emissions and participate in the carbon trading market.

Specific timelines have been drawn up:
  • By the first quarter of 2008 we will have assessed and quantified the total carbon footprint for Exxaro
  • Within the second quarter of 2008, targets and timeframes will be in place for all business units, and activities will begin
  • By end May 2008 we will have submitted our co-generation proposal to Eskom, and can expect feedback by mid August
  • By March 2008 we will start assessing energy efficiency levels throughout the group, as well as set goals and target dates.

Our vision is to become a zero carbon footprint company and we will benchmark this footprint against other companies in South Africa and globally.

 
 

Case study

Renewable energy project in Namibia

Street lights in Tutungeni township, near Rosh Pinah, look ordinary. But their source of power is extraordinary. These lights are run off zinc air fuel cells – an affordable renewable energy technology recently developed through an Exxarosponsored research project.

The fuel cells use zinc to generate safe, environmentally friendly electricity. They can also be used to power appliances such as televisions, radios, small refrigerators and even certain computers.

Developed by the Alternative Energy Development Corporation after six years of research and development, the technology was successfully trialled in December 2006 when it was installed in 18 homes in Tutungeni.

In addition, zinc air fuel cells create opportunities for small businesses in areas off the power grid as they can be used to power cellphone batteries,sewing machines, haircutters and other small appliances. Capitalising on this, service centres are already planned for Tutungeni which will create sustainable employment for an increasing number of people. We plan to broaden the scope of this successful project by rolling it out to other operations within the group in 2008.

   
The Rosh Pinah mine in southern Namibia
 
 

Quantifying Exxaro’s carbon footprint began in 2007 using globally accepted standards such as ISO 14064-1. The exercise for our head office revealed that 80% of emissions stemmed from electricity use. Various initiatives are under way to educe our footprint and we will report on progress annually.

Actual data are presented in table below.

Biodiversity management

The focus on conserving biodiversity becomes more important as the effect of global warming starts to impact on habitats and richness of global biodiversity. The National Environmental Management: Biodiversity Act (Act 20 of 2004) mainly provides for:
  • Management and conservation of South Africa’s biodiversity
  • Protection of species and ecosystems that warrant national protection
  • Sustainable use of our indigenous biological resources.

Exxaro owned and managed land has significant biodiversity due to the wide geographical distribution of its operations (read more).

 
 
DISCARD PRODUCT VERSUS
PLACED IN FINAL POSITION & TOTAL AREA DISTURBED
VERSUS REHABILITATION
 



 

Table 1: Summary of the biomes, vegetation types and associated business unit to indicate diversity of vegetation
         
Business unit   Biome   Conservation status
(NSBAR)
Tshikondeni   Forest – azonal   Critically endangered with a conservation target of 100%
Tshikondeni   Forest – zonal and intrazonal   Conservation target of 100%
Fairbreeze   Forest – zonal and intrazonal   Least threatened with a conservation target of 43%
Arnot, North Block Complex, Strathrae and Leeuwpan   Grassland   Endangered with conservation target of 24%
Arnot, North Block Complex, Strathrae, Leeuwpan, Glen Douglas and Zincor
  Grassland   Endangered with Conservation target of 24%
Durnacol   Grassland   Vulnerable with conservation target of 23%
Glisa   Grassland   Vulnerable with conservation target of 27%
Inyanda   Grassland   Endangered with conservation target of 24%
Leeuwpan, Glen Douglas, Zincor and FerroAlloys   Grassland   Endangered with conservation target of 24%
Zincor   Grassland   Endangered with conservation target of 24%
Hlobane   Grassland   Least threatened with conservation target of 27%
Matla   Eastern Highveld grassland   Endangered
Fairbreeze   Indian Ocean coastal belt   Endangered with conservation target of 25%
Fairbreeze and Hillendale   Indian Ocean coastal belt   Vulnerable with conservation target of 25%
Tshikondeni   Savanna   Least threatened with conservation target of 19%
Central processing complex   Savanna   Endangered with conservation target of 19%
Grootegeluk   Savanna – central bushveld   Least threatened with conservation target of 19%
Tshikondeni   Savanna – Lowveld   Vulnerable with conservation target of 19%
Rosh Pinah   Succulent Karoo   Not described
Endangered – ecosystem with a high risk of extinction in the near future
Vulnerable – ecosystem that is deteriorating and will become threatened if certain factors are not addressed



 
 

An example in this case is the Gariep Centre of Plant Endemism, where Rosh Pinah operations are situated. This forms part of the succulent Karoo region, considered as one of the earth’s 25 ‘hot spots’ – geographical areas which contain the world’s greatest plant and animal diversity. This area (Gariep Centre) has the richest variety of succulents on earth.

Exxaro is committed to conserve biodiversity and reduce the environmental impacts of its operations on biodiversity.

The key risks identified to biodiversity within Exxaro are:
  • Protection, conservation, monitoring and management of red data species
  • Control, monitoring and management of alien invasive species
  • Identification, protection and management of sensitive and highly biodiverse hot-spot ecosystems, including wetlands, pans and terrestrial ecosystems.
 
     
 
The identified risks are managed by means of:
  • A dedicated biodiversity policy and strategy aligned with national legislation and international conventions
  • A wetland strategy aimed at protecting wetlands, pans and related water courses
  • Detailed baseline assessments on fauna and fl ora and associated ecosystems
  • Compilation and implementation of biodiversity action plans which focus on the protection, conservation, monitoring and management of red data species and biodiversity hot-spot areas by, among others, eradication, control and monitoring of alien invasive species.

 

   
Exxaro
                                  is committed to conserve biodiversity and reduce
                                  the environmental impacts of its operations
                                  on biodiversity
 
 

Various baseline studies on biodiversity within the business units have been compiled since 2006. Biodiversity studies were conducted at Glen Douglas, Grootegeluk, the new proposed Fairbreeze Extension C, Tshikondeni and New Clydesdale (table 2). The current approach to future developments is to include biodiversity studies prior to any development to ensure adequate impact mitigation on the biodiversity of new areas of development.

Table 2: Summary of status of biodiversity assessment per business unit

Business unit representing this vegetation type   Desktop
studies
(including PRECIS* List)
  Biodiversity baseline assessment   Biodiversity
action plan
Tshikondeni       In compilation
Fairbreeze Extensions C       In compilation
Glen Douglas       In compilation
Arnot     Planned for 2008   End 2008
Zincor     Conducted (January 2008)   March 2008
Matla     Some parts   End 2008
North Block Complex      
Leeuwpan     Certain section – rest planned for 2008   End 2008
New Clydesdale       End 2008
Inyanda   2009   2009   2009
Hillendale     Planned March 2008   End 2008
Central processing complex     Planned March 2008   End 2008
Grootegeluk     Conducted by land management in past five years  
Rosh Pinah     Planned for June 2008   End 2008
*List of plant species recorded within a specific grid and identified by the South African Biodiversity Institute Herbariums
 
     
     
     
 
Figure G: Schematic layout of mining area, different wetlands and wetland areas adopted as offset areas - CLICK IMAGES TO ENLARGE.
Figure G, map 1
 
Figure G, map 2
 
Figure G, map 3
 

 

Case study

Matla wetland management plan

The Matla wetland management project is one of the main projects based on biodiversity and biodiversity conservation. This project is unique in that the river diversion design and mining method was adopted and changed to maintain the water flow and function of the wetland to protect its biodiversity. Exxaro had an approved environmental management plan for underground shortwall mining (in limited areas) and bord-and-pillar mining in adjacent areas. An amendment to this approved plan was submitted in June 2006 for the extension of underground shortwall mining.

Concerns were raised by authorities as the proposed area of mining includes sensitive wetlands (the Blesbokspruit/Rietspruit is one of three extensive alluvial wetland systems within the Upper Olifants River catchments).

The rerouting or river diversion of the Rietspruit was required to route upslope run-off water past the high extraction area, reducing the risk of water entering the underground workings and minimising the disturbance to surface drainage lines by surface subsidence due to high extraction mining. We therefore had to reduce the impact on the functionality and biodiversity of the wetland to a minimum. This was only possible through an innovative engineering design that allowed for mining coal underground with limited impact on the surface.

 
     
 

Figure G shows the position of the 590ha wetland area that will be undermined, the 2 365ha of adopted wetland that forms part of the wetland conservation areas, the non-channelled riparian wetland and the seasonally inundated channel valley bottom floodplain with footslope wetland.

The mining method, river diversion design and various management principles were therefore compiled to ensure the protection and conservation of the wetland, and biodiversity within the wetland.

 
     
 

Case study


Grootegeluk spontaneous combustion monitoring

Exxaro has investigated the atmospheric emission from most of its operations to identify those with significant impact. Spontaneous combustion of discard dumps was identified as a significant source of air quality risk given its dual effect on both ambient air quality and climate change.

Grootegeluk was identified as the pilot site to develop the methodology tha tcan be applied across the group to quantify emissions from spontaneous combustion. A three-month monitoring campaign was initiated at Grootegeluk where data on air quality were collected to monitor pollutant concentrations near the dumps.

Given the results of the pilot study, we decided a more detailed assessment is required to determine the emission factors for spontaneous combustion. For 2008, budget has been allocated to conduct more complex emission flux measurements on known dumps at Grootegeluk. The proposed project will be a collaborative initiative between Exxaro and University of Johannesburg.

   

 
 
     
 
The Manketti Game Reserve next to



 

 

Land management

Key risks

Land management ensures mitigation or prevention of various business-related risks including:

  • Safety risks relating to physical mining legacies on previously mined areas, ie inactive sites
  • Environmental risk assessments of all inactive sites
  • Settlement of disputes arising from illegal occupation of land, invasion prohibition
  • Participating in government land claims involving Exxaro properties
  • Applying best practices in reducing land holding cost to Exxaro
  • Contract management and leases on Exxaro’s non-mining properties
  • Involvement in social responsibility projects and adherence to government’s objectives on social upliftment, wealth, land and mineral rights distribution.
 
  Land management, as an integral part of the SHE portfolio, is primarily involved with managing land under Exxaro’s control. Our approach is ‘cradle to grave’ management, encompassing acquisition, exploitation, rehabilitation and disposal of land. Land management also forms part of the integrated SHE services offered to business units including expertise, advice, monitoring all data and specialist environmental studies. The land management team performs a specialist service for Exxaro in areas including:
  • Advice on land-use options
  • Land management (including conservation of land, natural resources and ecotourism)
  • Land disposal and land reform advice
  • Active participation in ongoing management of and advice throughout the life, cycle of the mine
  • Risk mitigation – including land claims, settlement disputes and coordination of safety risks, response measures associated with land under management.

An example of Exxaro’s successful approach and responsible custodianship in managing land includes the endangered black rhino and rare cheetah in the
conservation project at Manketti Game Reserve adjacent to Grootegeluk mine.

The planned introduction of elephant into Manketti in 2008, and the synergy with the mine and local community, will transform this project into a conservation icon
and position Exxaro as the leader among responsible green mining companies.

 
 
ELECTRICITY, DIESEL, GAS CONSUMPTION AND WATER USE PER BUSINESS UNIT: 2007
<
  Business Unit   Electricity
(Gj)
  Diesel
(Gj)
  Sasol
gas
(Gj)
  Petro-
lused
(Gj)
  Total
energy
use (Gj)
  Water
(m3)
  Product(kt)   Energy
per tonne
  Electricityper tonne   Dieselper tonne   Water
per tonne
  Coal   1 816 119   1 380 903   0   13 421   3 210 442   7 746 713   40 534 259   0,08   0,04   0,03   0,19
  Arnot   202 432   113 892   0   3 125   319 448   894 620   3 704 009   0,09   0,05   0,03   0,24
  Grootegeluk   903 294   644 958   0   0   1 548 252   2 960 746   18 581 323   0,08   0,05   0,03   0,16
  Leeuwpan   74 581   346 331   0   0   420 913   516 904   2 358 998   0,18   0,03   0,15   0,22
  Matla   477 612   48 646   0   7 707   533 965   1 392 780   12 180 446   0,04   0,04   0,00   0,11
  New Clydesdale   33 133   103 137   0   0   136 270   265 170   970 549   0,14   0,03   0,11   0,27
  North Block Complex   2 820   88 315   0   0   91 134   151 450   2 262 687   0,04   0,00   0,04   0,07
  Tshikondeni   122 247   35 624   0   2 589   160 460   1 565 042   476 247   0,34   0,26   0,07   3,29
  Base metals and industrial minerals   1 852 900   145 703   0   584   1 999 187   3 844 548   1 664 507   1,20   1,11   0,09   2,31
  Glen Douglas   45 367   63 704   0   584   109 655   881 682   1 414 924   0,08   0,03   0,05   0,62
  Rosh Pinah   146 126   51 948   0   0   198 073   1 406 279   149 392   1,33   0,98   0,35   9,41
  Zincor   1 661 407   30 051   0   0   1 691 458   1 556 587   100 191   16,88   16,58   0,30   15,54
  Mineral sands   1 983 715   72 944   320 593   0   2 377 251   10 307 560   684 273   3,47   2,90   0,11   15,06
  KZN Sands   1 983 715   72 944   320 593   0   2 377 251   10 307 560   684 273   3,47   2,90   0,11   15,06
  Total   5 652 733   1 599 549   320 593   14 005   7 252 283   21 898 820   42 883 039   0,17   0,13   0,04   0,51
                                                 

*Total energy figures comprise electricity, diesel, petrol and Sasol gas.
The potable water figures reported by sites are based on invoiced amounts from suppliers. Certain sites are only measuring potable water consumption as a result of a lack of systems to collate water abstracted from underground sources. We are currently looking at how to improve our systems and controls to ensure complete and accurate collation of total water consumption data.

Reported CO2 emissions reflect burning fossil fuels and electricity consumption. CO2 emissions from processes (spontaneous combustion, flaring, etc) are not currently reported as methodologies are currently being developed and reviewed for the relevant operations.

  CO2 from electricity
purchased (tonnes)
  CO2 from diesel
(tonnes)
Business unit   MWh Tonnes   Litres Tonnes
Coal   504 477 483 289   38 011 351 102 251
Arnot   56 231 53 869   3 135 033 8 439
Grootegeluk   250 915 240 377   17 753 403 47 791
Leeuwpan   20 717 19 847   9 533 273 25 663
Matla   132 670 127 098   1 339 061 3 605
New Clydesdale   9 204 8 817   2 838 988 7 642
North Block Complex   783 750   2 430 988 6 544
Tshikondeni   33 958 32 531   980 605 2 640
Base metals and industrial minerals   514 694 493 077   3 909 449 10 524
Glen Douglas   12 602 12 073   1 753 548 4 720
Rosh Pinah   40 590 38 886   1 429 932 3 849
Zincor   461 502 442 119   827 196 2 227
Mineral sands   551 032 527 888   2 048 348 5 514
KZN Sands   551 032 527 888   2 007 885 5 405
Total   1 570 204 1 504 255   43 969 148 118 363