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Green agenda – new legislation takes e ect

ADVANCING THE GREEN AGENDA

New legislation takes eff ect

By Nelendhre Moodley

In 2016 South Africa penned its signature to the Paris Agreement, which committed to reducing its greenhouse gas emissions to well below 2°C and pursuing e orts to limit it to 1.5°C. More recently, the Minerals Council South

Africa lent its weight to the Paris Climate

Change Agreement ambition of net zero greenhouse gas emissions by 2050. But exactly how well placed is South

Africa in meeting these targets? SA Mining recently caught up with the Federation for a Sustainable Environment’s (FSE) Mariette

Lie erink to chat about some of the key environmental concerns currently facing the country and the measures in place to resolve them. According to Lie erink, while South Africa has many initiatives in play to move to a low carbon economy, it remains plagued by numerous issues, including its heavy reliance on coal as an energy source. South

Africa currently sources more than 80% of its energy from fossil fuels; but according to the country’s Energy Master Plan, coal reliance is set to decline to around 43% of the energy mix by 2030. The country is also challenged as it attempts to meet its Sustainable

Development Goals (SDGs) by 2030, in particular SDG6, which targets the availability and sustainable management of water and sanitation for all. According to the World Bank’s preliminary findings on South Africa’s infrastructure needs and ability to achieve the SDG6 goal, the water e iciency target of 175 litres per capita per day was unlikely to be reached by 2030 without radical behaviour change from all users. The total cost to achieve the water and sanitation access targets varied between

R104-billion and R133bn per annum over 10 years for water services, including water resources to service the potable demand that is excluding financing costs. “Without either an increase in the water tari level, potentially impacting on a ordability, or an increased allocation from the national fiscus, South Africa will be unable to reach the SDG6 goal and its targets by 2030,” says Lie erink.

Moreover, many of the actions in the 2018 National Water and Sanitation Master Plan, which were scheduled for 2019, 2020 and 2021, have not been implemented. These actions included finding a lasting solution for the excessive sewage pollution of the Vaal River and the country’s dysfunctional waste water treatment works as well as resolving issues related to mining within strategic water source areas and critical groundwater recharge areas.

There are also many abandoned or liquidated mines that are placing massive pressure on the environment and the state.

“Furthermore, the failure by the National Nuclear Regulator to regulate and remediate radioactive mine residue areas and concerns related to the application for a new nuclear power station (Thyspunt) are also worrying since there is a conflict between the mandate of the Department of Mineral Resources and Energy, which promotes the use of nuclear power, and its mandate to regulate the industry,” says Lie erink.

Abandoned and liquidated mines in the West Rand. (Mintails)

NEW LEGISLATION

But all is not lost – the good news is that government has formalised new pieces of legislation to combat these challenges. How e ective they prove to be is yet to be seen.

Among the latest legislative developments are the National Nuclear Regulator Bill 2021 and the Dra National Mine Closure Strategy, 2021.

The National Nuclear Regulator Bill seeks to address the existing gaps in the current National Nuclear Regulator Act and strengthen the enforcement provisions of the inspectors and the occupational safety exposure risks for the air crews.

But, says Lie erink, the bill in its current form fails to address the recommendations of the South African Human Rights Commission on impacts relating to Naturally Occurring Radioactive Material (NORM) and Technologically Enhanced Naturally Occurring Radioactive Material (TENORM), the legacy of uraniferous waste (600 000 tonnes of uranium stored in 270 tailings storage facilities) within the Witwatersrand gold fields and the impacts on 1.6 million people as well as the remediation of 380 radioactive mine residue areas. “It is common knowledge that the

gold ores of the Witwatersrand contain appreciable concentrations of uranium. Mining has resulted in the dispersal of radioactive material into the environment via windblown dust, waterborne sediment and the sorption and precipitation of radioactivity from water into sediment bodies.”

To satisfactorily address the challenges related to NORM and TENORM, Liefferink advises that the National Nuclear Regulator (NNR) establishes regulations for contaminated areas/sites not under regulation (such as the Wonderfonteinspruit Catchment Area); define the roles and responsibilities among the NNR and intervening organisations; and establish a common regulatory regime for safety of remediation actions through coordination with other departments.

“Such projects must be funded and radioactive contaminated areas must be identified,” she adds.

Aside from the National Nuclear Regulator Bill, government has also inked the Draft National Mine Closure Strategy, 2021, which aims to manage the closure of mines in demarcated areas in a sustainable manner so that mines can achieve self-sustaining ecosystems after closure.

“The National Mine Closure Strategy will focus not only on rehabilitation of land but also on socioeconomic sustainability and some form of economic diversification during the current mining operations.

“The impact will be that the mining sector can align closure plans to achieve selfsustaining ecosystems after mine closure and ensure that mines do not impact negatively on adjacent mining operations. This will also help mines integrate their environmental management programme reports, social labour plans and corporate social investment objectives so as to reduce duplication of efforts and aggregate available funding for coordinated regional projects.”

Other legislation that was recently promulgated is the Draft Policy on Artisanal and Small-Scale Mining (ASM), 2021, which looks to incorporate ASM into the mainstream economy. As it stands the Mineral and Petroleum Resources Development Act (MPRDA) does not cater for the artisanal mining industry.

The ASM policy proposes that artisanal and small-scale mining co-exist with large operations through contributing agreements, equipment leasing, technical support and participation in the supply chain.

The policy also calls on government to strengthen the laws regarding criminalisation of illegal mining to deter illegal mining activities. Further to this, a trained detective unit is proposed to handle illegal miners.

According to Liefferink, the policy places pressure on mining houses to recognise the role of artisanal and small-scale mining and to provide support.

“The strengthening of laws and criminalisation of illegal mining and the establishment of a trained detective unit will assist mining companies to minimise the illegal activities of highly organised criminal syndicates which are characterised by violence, damage to mining infrastructure, vandalism and risks to the safety of mine workers.”

With regard to South Africa’s dire water situation, government recently outlined the National Water Monitoring Plan, 2021.

However, Liefferink is quick to point out that budget and human resource constraints and large data gaps pose high risks to decision making and planning.

She cites inadequate data across a number of areas including rural water quality; surface and groundwater quality; >

The ASM policy “ proposes that artisanal and smallscale mining co-exist with large operations. “ – Liefferink

© mark olalde and oxpeckers Abandoned and liquidated mines in the West Rand (Mintails).

data gaps on quantity and quality e luent discharged by municipalities; severe lack of wetland data; and insu icient estuarine monitoring data (only 23 of the 300 estuaries are being monitored by the Department of Water and Sanitation (DWS)), among others.

In order to improve the management of data and information, the National Water and Sanitation Master Plan has recommended the review and development of comprehensive and appropriate management, monitoring and reporting structures of the DWS’s data portal.

The positive news though is the revitalisation of the Green/Blue Drop Certification Programme, 2021, which requires that municipal wastewater treatment works and non-municipal wastewater treatment works register their wastewater treatment plants.

Operators of wastewater treatment works are also required to provide proof of competence of the maintenance teams and make available a risk register and wastewater risk abatement plan.

“This will go a long way to inform the broader public of water quality, promote consumer confidence and greater transparency in service delivery,” says Lie erink.

Other recent legislation that is set to positively impact the environment includes: ■ Proposed regulations pertaining to

financial provision for the mitigation and rehabilitation of environmental damage caused by reconnaissance, prospecting exploration, mining or production operations, 2021. ■ March 2020 Amendments to the MPRD

Regulations for Implementation. ■ The National Eutrophication Management

Strategy for South Africa, 2021. ■ The National Wetlands Management

Framework, 2021. ■ North West and other provinces’ Climate

Change Strategies and Climate Change Bill.

MINERS AND THE GREEN AGENDA

The Minerals Council South Africa recently announced that it was developing a Net Zero 2050 Action Plan and pathway towards achieving the goal of net zero greenhouse gas emissions.

The action plan will include an increasing share of investment in renewable energy sources (green hydrogen, solar, wind, battery storage), research, development and innovation into new technologies, among others.

In line with these targets, Eskom, Exxaro and Seriti Resources recently signed a memorandum of understanding (MOU) spelling out their intention to pursue the development of renewable energy projects to lower their carbon footprint at their operations.

The first phase of the envisaged project pipeline will see the construction of a number of solar photovoltaic facilities both on-mine and at Eskom sites.

Under the MOU, Seriti expects to achieve a reduction in CO2 emissions of up to 350 000tpa, around half of its current emissions of 700 000 tonnes of CO2 equivalent through the consumption of coalfired electricity generation.

Exxaro expects to achieve a reduction in CO2 emissions of up to 130 000tpa at its Matla coal mine, which represents a saving of 70% of the greenhouse gases with Matla at full production.

Gold and platinum producer SibanyeStillwater is also driving e orts to reduce its emissions levels and its carbon footprint. The miner has committed to carbon neutrality by 2040.

South African miner Gold Fields’ South Deep Mine is running a waste management campaign in partnership with FSE, the Gauteng Department of Agriculture and Rural Development and the Rand West Local Municipality.

The programme looks to clean up host communities and teach community members the importance of a clean environment. South Deep is now a zero e luent discharge mine, meaning that no surface water is leaving South Deep Mine – it is a closed circuit. ■

There are concerns“ related to the application for a new nuclear power station (Thyspunt). “ – Lie erink

USING MINE CLOSURE

to combat climate change

By Herman Gildenhuys, environmental consultant at Ukwazi Mining

With COP26 in full swing at the time of writing, moving away from fossil fuel towards renewables, and in particular “powering past coal”, has been high on the agenda. Before the conference, South Africa had already planned to reduce coal’s contribution to the energy mix to less than 60% by 2030.

This commitment has been further solidified through one of the latest outcomes of the summit – SA, the globe’s 12th largest carbon dioxide emitter, is set to receive $8.5-billion from the governments of the United States, United Kingdom, France and Germany to help end its reliance on coal.

All sounds great at conference, but is it achievable in practice without significant socioeconomic and political dislocation and what role (if any) should mine closure play?

As it stands, approximately 80% of the country’s electricity comes from coal, and current demand exceeds supply. For some time now, Eskom has indicated plans to shut down 8GW to 12GW of generation capacity at its ageing coal-fired power plants over the next decade. Instead of investing in new coalfired projects, the state utility has hinted at repurposing its power plants for renewable energy.

Given Eskom’s current capacity gap of 4 000MW to 6 000MW, additional electricitygenerating initiatives will have to be fast-tracked in order to keep up with South Africa’s developmental needs as well as its latest commitments. At the end of October 2021, the Department of Minerals and Energy (DME) announced the 25 winners of bid window five for the procurement of 1 600MW from onshore wind and 1 000MW from PV solar projects.

The race towards renewable energy generation is, however, not without its own environmental impacts. Renewable energy developments are land-hungry and o en create conflict between bioenergy production, biodiversity protection and agricultural productivity. Mining activities have, over several decades, created vast tracts of land in need of rehabilitation.

As such, the mining sector can contribute significantly to the transition to a greener, low-carbon economy by repurposing these areas for renewable power generation. Exxaro and Seriti, key suppliers of Eskom’s coal, have already signed an MOU with the provider that will see these companies implementing renewable energy initiatives at their respective operations.

“South Africa plans to reduce coal’s contribution to the energy mix to less than 60% by 2030. “ – Gildenhuys

RENEWED THINKING

The dra National Mine Closure Strategy, published for comment in May 2021, acknowledges that past attempts to restore post-mining ecosystems to their original, pristine states have o en not been possible, and introduces the concept of creating a fitfor-purpose condition post-closure.

The aim is to create a self-sustaining ecosystem, or an alternative sustainable post-mining land use, which ensures the development of a post-closure economy. Stipulations specifically mention renewable energy generation as a potential end land use to consider a er mine closure.

Operational mines that generate their own power using renewable sources can form a generation base that could remain in place, post mine closure, and that could also be used for the long-term treatment and pumping of mine-impacted water, if required.

Using already disturbed mine sites for “ renewable energy generation takes the pressure o greenfield development sites. “ – Gildenhuys

Maximising the re-use of mining infrastructure by leaving it in place post-mining would lower both closure costs and the capital expenditure of future developments. Water supply, accommodation and labour should readily be available, thereby minimising construction time and cost, and mitigating the loss of employment and potentially mitigating the negative socioeconomic and political risks that are inevitable when mines close.

In addition, using already disturbed mine sites for renewable energy generation would take further pressure o greenfield development sites elsewhere.

RENEWED PURPOSE

The Kidston Clean Energy Hub located in North Queensland, Australia, is a testament to the potential of renewable energy generation as an end land use. When Kidston gold mine closed in 2001, it led to large-scale job losses, negatively impacting livelihoods.

Innovative thinking, however, turned the situation around with the installation of a renewable energy hub, which has since created 900 jobs. A 50MW solar farm was built on top of a disused tailings dam, with expansion plans under way to increase the solar farm’s capacity to 320MW. When complete, the hub will also include a 250MW hydroelectric power station and a 150MW wind farm.

The two large open pits on the property were filled with water a er closure and will function as the reservoirs of the hydroelectric scheme. Reverse turbines and generators will be installed in an underground tunnel connecting the two pits, while water released from the upper reservoir to the lower reservoir will generate energy that can then be dispatched when electricity is in high demand.

During the day, water will be pumped back to the upper reservoir using power generated by the solar farm, with grid power being used at night. This process is then repeated daily, with the facility acting as a giant battery during peak periods.

There is a move away from fossil fuels towards renewables.

RENEWED SOLUTIONS

Eskom’s supply challenges, the recent rise in the threshold for self-generating facilities from 1MW to 100MW, and the rapidly declining costs of renewables have led many South African mines to consider the installation of renewable energy projects. In September 2021, the Minerals Council South Africa stated that its members were planning to invest in facilities that could generate capacity of up to about 2GW, with a value of between R30-billion and R40bn.

Solar farms are also increasingly considered a feasible post-closure land use, while underground pumped hydroelectric energy storage systems show potential at some of South Africa’s very deep gold mines.

Climate change and a low carbon economy pose both a threat and an opportunity to the mining industry. It is critical to integrate closure planning with mining studies and operations. What could be even more critical is integrating a di erent energy mix to the closure process. The implementation of sustainable renewable energy hubs on previously mined land could be an innovative gateway to a greener future.

Renewables may yet provide mining communities with a transformation dividend without the need for Karpowerships. ■

CAN SOUTH AFRICAN MINING BE TURNED AROUND?

Most revolutionary movements and their despotic leaders who take over a country generally hold onto control until that country has become so dysfunctional that there’s little le (money, assets or power) to keep the movement and its dictators in power any longer. This is when the gang and its czars are finally kicked out of o ice by a populist revolt of citizens who have had enough of the cancerous movement devouring the nation. This scenario certainly seems to have been the case in most of Africa’s 54 independent states. African countries too o en seem to have as the norm revolutionary governments and their debilitating leaders hanging on until there is almost nothing le to steal and ruin. These parties and despots don’t just fade away, and mining invariably seems to be the main target for the wretches.

Logical, because mining is generally the backbone and nucleus of these countries’ wealth and forex, so is used to enrich and keep the miscreants in power. Thus, we invariably see and experience the proverbial “race against the clock” of complete pillage and destruction of a country’s heart and lungs – the mining industry – before the despots and their

“movement” are ejected from power. This “race against the clock” refers to the speed at which these social engineers work to steal and destroy as much as they can from the mining sector (and whole nation) before their removal from government. Ghana’s gold production fell continually in the 1970s to a low 10tpa in 1987 (140tpa today). The Democratic Republic of the Congo’s (DRC) copper production fell from 550ktpa in the early 1970s to barely 35ktpa in the late 1990s. And Zambia’s high of 775ktpa of copper in 1969 was on a downward spiral for 25 years, hitting 200ktpa in 2000 (910kt in 2021). Most of Zimbabwe’s mineral production has undergone a steep descendent over the past 40 years from the Zimbabwe

African National Union-Patriotic 0

Front’s rule. And poor South

Africa’s once-world-dominant gold industry leadership continues to fall thanks to the African

National Congress’s (ANC) disastrous, racist, unconstitutional mineral industry policy and legislative diktat. South Africa’s mining industry has su ered greatly under ANC rule and their ever-increasing negative legislation and policies have strangled growth and investment in the sector. Yet hope springs eternal among those in mining. It has to. The 12 August Zambian national election, which was followed by South

Africa’s own November municipal elections, are a case in point and saw a large “kicking out” out of the decades-in-power incumbents. Why are revolutionary movements and despots allowed to hang

on until the very end? Can they never be removed before it’s all too late? Yes. They can be. It is rare, but it certainly can happen. Africa has three illustrative examples in the DRC, Zambia and Ghana. © Robert Tshabalala @ Financial Mail Back in the late 1990s, changes in the three countries’ ruling parties and in government thinking and policies brought massive positive changes in mining legislation. Nationalism and punitive ownership and operating requirements for those countries’ mines were reversed. Investorfriendly laws and policies were adopted and fairly rigorous foreign investor campaigns were Peter Major implemented. The results were astounding and coincided Mergence Corporate with the advent of the greatest commodity boom Solutions Director: Mining the world has ever known. Ghana, Zambia and the DRC benefited enormously. Production, jobs and revenue jumped. Tens of billions of dollars of foreign investments poured into the DRC and Zambia especially. DRC copper production rose from 30kt in 2000 to an estimated 1.5mt for 2021. Zambia’s copper production rose from 245kt in 2000 to an estimated 910kt in 2021. Ghana boomed too with gold production now exceeding South Africa. DRC and Zambian cobalt production rose just as dramatically, and there were huge increases in their gold and tin production too. Ironically all of this came DRC’s ‘Rise, Fall and Rise again’ copper industry about even when there was an DRC COPPER PRODUCTION 000’s TONNES Yearly 12/31/1941 – 12/31/2015 unstable, ine icient (and corrupt) 1 000 1 000 political environment in DRC and 750 750 Zambia. 500 400 500 400 Yet because of their friendly 200 Regime change 200 mining investment legislation and 150 150 policies, the billions of dollars that 100 75 100 75 flowed into the three countries 50 50 enabled many huge mines to be 40 30 Regime change 40 built and over 100 000 real jobs 45 50 55 60 65 70 75 80 85 90 95 00 05 10 15 19 and hundreds, if not thousands, of subsidiary industries to be created.

SA Gold mine industry and employment. Wiped out forever. Contrasting this exactly 180 SA COM Gold mine employment degrees is poor South Africa, who

Going back to zero.

600 000 in the same time experienced 500 000 the opposite. Countless negative mining ministers, policies and 400 000 legislation were implemented from 300 000 1999 through to 2021 and over 200 000 450 000 “real” mining jobs were 100 000 destroyed. Over 100 large mines 1900 10 20 30 40 50 60 70 80 90 2000 10 2020 and sha s were closed, vandalised and destroyed (most for good), and foreign investment in SA’s mining industry has almost completely dried up. Forever? Zambia and other African countries have shown us the way. Almost no change in legislation and policy can replace the loss of 450 000 real jobs in South Africa’s once juggernaut gold industry. Nor the majority of now closed mines and related industries – all gone forever. But positive legislative and policy changes could stem further cuts in SA’s mines and jobs. And who knows – just stopping the slide for a few years could send a signal to the world’s investment community that maybe growth could be possible once again, someday, if government made the change and actually walked some “good” talk. Long shots yes. But we continue to hope and pray! ■

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INDEX TO ADVERTISERS

AECI Mining Explosives ................................................................. OBC Air Liquide Industries ......................................................................... 24 BLC Plant Company ........................................................................ IBC Bosch Diesel Service ....................................................................... IFC Brelko Conveyor Products ................................................................... 8 Federation for a Sustainable Environment (FSE) .............................. 43 Gates SARL .......................................................................................... 7 Invincible Valves................................................................................. 13 JH Fletcher & Co ................................................................................ 35 Keller Netherlands NV .......................................................................... 3 Komatsu Mining ................................................................................... 9 KSB Pumps & Valves ......................................................................... 15 Menar Capital ....................................................................................... 5 NSDV .............................................................................................10-12 Shell Lubricant Coolant and AdBlue ................................................. 21 Vendel Equipment Sales .................................................................... 51

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