Case Study:
Zinc International
Sustainability in New Project Management – Gamsberg, South Africa
Sustainability in Mine Closure – Lisheen, Ireland
1 July 2015
Deshnee Naidoo
Introduction - Zinc International
P
C
P P
•
Black Mountain Mine is an underground operation, mining zinc, lead, silver and copper deposit•
1.7Mt ore hoisted per annum with production capacity of 90ktpa metal in concentrate (“MIC”)•
Workforce of 1300 including contractors (80% of the employees are local)•
26% owned by Exxaro Resources•
Gamsberg Project - R&R of 214mt with potential production capacity of up to 400ktpa MICSouth Africa
Namibia
•
Open pit zinc mine and refinery•
Largest integrated zinc operation in Africa•
Refinery capacity of 150 ktpa Special High Grade (“SHG”) zinc•
Workforce of 1500 (including contractors)•
Gergarub Project - R&R of 18.08 MT at 8.68% Zn, 2.37% Pb and 40g/t Ag Skorpion Zinc Mine Skorpion Zinc RefineryBlack Mountain Mine
P
Zinc/Lead /Silver Mine Zinc/Lead/Silver Project C Corporate presence Cape Town Johannesburg Windhoek C Botswana
•
Zinc International comprises the assets acquired by Vedanta in 2010•
Black Mountain Mine (“BMM”)•
The Lisheen Mine (“Lisheen”); and•
Skorpion Zinc Mine & Refinery (“Skorpion”)•
Upon acquisition Vedanta committed to:– Job preservation and creation
– Extension of the life of mine of each operation through exploration
– Substantial investments in exploration
– Commence the development of
Gamsberg within five years
•
The Lisheen Mine is the second-largest zinc mine in Europe•
Underground operation with an average mining depth of 170 m, accessed via a 1.5 km decline•
1.6 Mtpa capacity concentrator•
Produces 165,000 MT of Zinc MIC & 22,000 MT of Lead MIC – Strong safety and environmental culture– Highly skilled experienced workforce – High level of mining technical expertise – Solid financial performance over life of mine
•
Positive industrial relations/good employee engagementP
Zinc/Lead /Silver Mine Zinc/Lead/Silver Project
C Corporate presence C Ireland
The Lisheen Mine
Introduction - Zinc International (cont.)
•
Lisheen Mine was granted planning permission in 1997•
First mine in Ireland to be granted an Integrated Pollution Control Licence (“IPCL”) by the Irish EPA•
Top 15 zinc mine producer in the world in 2012 per Brook HuntGamsberg Project Overview
One of the largest zinc deposits in the world
•
Sediment-hosted base metal deposit hosted by iron sulphide-rich pelitic rocks and ironformation
•
Deposit is wholly contained within a steep-sided inselberg (isolated hill or mountain)•
Inselberg rises 250m above the general level of the Bushmanland plain– Elongated in the East-West direction, with a maximum length of 7.2km and a maximum width of 4.6km
Paradise toad Endemic Succulent Species
•
35 Global biodiversity hotspots (Conservation International, 2005)– 2.3% of Earth’s land surface, but supports more than half of the world’s endemic flora and nearly 43% of endemic fauna – Gamsberg within Bushmanland Centre of Endemism – rocky inselberg succulents (~397 succulent species; 16 endemic; 4 restricted)
Sustainability in New Project Management (I) – Compliance & Beyond
•
Integrated Environmental and Social Impact assessment (“ESIA”) as per IFC Performance standards•
Public consultation and stakeholder engagement right from planning stage and at each stage of ESIA– Regulatory authorities, municipalities, NGOs – Local farmers, communities and employees
•
Vedanta upfront commitment for ‘No Net Loss’ biodiversity project– Offsetting of residual impacts
•
Robust Environmental Management Programme (“EMPr”) and Biodiversity Action Plan (“BAP”)•
Agreement with local farmers and nearby property owners on monitoring and reporting of environmental parameters•
Developed conceptual closure plan upfront to deliver concurrent rehabilitationLegislation Department Approval
Minerals & Petroleum resources Act
Department of Mineral Resources (DMR)
Amendment of Environmental Management Program Report
Mine Works Programme and Closure plan Social and Labour Plan Amendment National Environmental Management Act Department of Environment & Nature Conservation (DENC)
Environmental Authorisation for Mine and associated infrastructure (EA)
National Environmental Management
Biodiversity Act
Threatened or Protected Species Regulation 23
National Environmental Management: Air
Quality Act Air Emission License (AEL)
National Water Act Department of Water Affairs
(DWA) Section 21 water use licence
National Environmental Waste Act
Department of Environment Affairs (DEA)
Section 20 (b) Waste management licence for both Hazardous and Non-Hazardous Waste (Waste License)
Sustainability in New Project Management (II) - Environmental Impact Mitigation
Signing of Biodiversity Offset Agreement - the first of its kind in South Africa AVOID
MINIMISE
REMEDY
OFFSET
•
Alternative Location & Design of Infrastructure– Pit design – set back zone from ecologically sensitive area
– Moved waste dump locations to avoid sensitive flora
– Adjusted siting of processing facilities & access roads
•
Fencing, demarcation and access control of sensitive areas•
High Density Polyethylene (“HDPE”) lining of tailing dam•
Separate different types of waste rock (based on leachability characteristics)•
Translocation of sensitive species to be utilised for concurrent rehabilitation of Gamsberg– Approximately 15 000 plants species (supervision by expert horticulturalist and regional botanical specialist)
– Continuous health monitoring of plants to avoid stress and mortality
•
‘No Net Loss’ objective for residual impacts•
Identification & securing properties nearby with similar biodiversity features– Approx. 40000 Ha identified as a potential offset
•
Management of offset properties•
IUCN - Independent Review Panel to monitor progress Translocation of sensitive species to Aggeneys nurseryOFFSET INCLUDED IN DESIGN WIP WIP IMPLEMENTED
Sustainability in New Project Management (III) - Stakeholder Engagement
•
Rigorous engagement process to understand ourstakeholders’ needs
– Stakeholders were engaged early and have supported the project
– Stakeholders kept involved, informed and consulted as appropriate
Ongoing involvement
•Ensure needs and concerns are understood and considered •Obtain feedback on alternatives
Close collaboration •Decision making authority
•Partner with on each aspect of decision •Input on design
Consult
•Obtain feedback on alternatives and/or decisions Inform
•Provide balanced and objective information
Level of interest
Lev
el
of
i
nfluence
• NGO’s • Community-based organisations • Employees •Surrounding Communities •Local Municipalities•National offices: DMR, DENC, DEA, DWA •Minority shareholders - Exxaro
•Provincial offices: DMR, DENC, DEA, DWA
•Internal stakeholders: Board of Directors, Executive Committees, Shareholders
Lisheen – People, Environment and Sustainable Operations
•
EIA: Lisheen Mine began in the mid 1990s. EIA was undertaken to asses the potential impact on all aspects; from the environment to the local community, along with extensive archaeological investigation•
Regulatory Permit: Lisheen Mine was granted planning permission in 1997. The first mine in Ireland to be granted an Integrated Pollution Control Licence (IPCL) by the Irish EPA•
Early Engagement: Local community was brought to visit other mines in Ireland where mining was carried out professionally without any negative impact•
Community:– Commitment given to source employees from the local community and over the life of the mine (LOM): 70-80% of employees from 25 mile radius
– Local Community Forum set up in Dec 2007 and meets on a quarterly basis
• Forum made up of various representatives from the local communities of Moyne and Templetuohy and addresses issues associated with mining e.g. TMF, Closure, Water, Post Closure activities etc.
• Many major CSR projects developed locally since commencement of Forum
• Local representatives co-opted on to Lisheen Closure Committee
• Positive engagement with open and transparent discussions at each session
•
People Management: Zero strike days since beginning; very low staff turnover (10 year average is 4% )•
Water Management: The dewatering was a significant concern for the local community addressed by top class water supply schemeSustainability in Mine Closure (I) Design for Closure
Lisheen Mine was granted planning permission in 1996 and also became the first mine in Ireland to be granted an Integrated Pollution Control Licence
•
Philosophy - ‘Before you commence you must plan for closure’•
Multidisciplinary team covering all the key aspects of closure from Environment, Employees, Social Issues and Stakeholders Engagement•
Closure Plans were costed and financial provisions put in place early– Initial Closure Restoration Aftercare Management Plan (“CRAMP”)
– Refined at 5 year intervals with the final plan being agreed within 5 years of closure
•
Communication a critical element of the closure planning– Lisheen meets quarterly with key regulator - Environmental Protection Agency (“EPA”)
– Meets every 2 months with Closure Sub Committee of Local Community Forum
– Has included closure in all communication with employees for the past 3+ years
– Invited all key stakeholders to site over two years ago (suppliers etc.) to explain our life of mine
•
Where possible - progressive closure implemented to minimise the risk and the workload when the operation ceasesComprehensive Closure Plan document which has been regularly updated
Sustainability in Mine Closure (II) – Capping of Tailings Management Facility
Strategy – Maintain phreatic water in rock cap to avoid oxidation of tails
•
Tailings Management Facility (“TMF”) is the most significant post closure risk and requires the maximum attention to ensure it is managedcorrectly
•
Strategy was to progressively rehabilitate composite engineered cap ensures no upward migration of tails or risk of oxidation– Extensive lab and field test work carried out to prove that the proposed capping process was effective
– Approval from authorities was received following review of all test work
– Limestone buffers against the risk of acid generation
•
Placement of the cap is carried out under a strict Construction Quality Assurance (CQA) process•
An comprehensive monitoring programme in place, including livestock trials, to ensure there is no metal contamination2005
2009
2014
2017 ?
•
Outplacement Programme was developed by Lisheen to assist employees transition into their new careers after the closure of Lisheen•
Stakeholder Engagement:– Lisheen engaged with the unions and various external bodies in developing a detailed programme
•
Training:– Self development reflection programme to assess one’s strengths, achievements, transferable skills, lifestyle options and future opportunities
•
In-House Support:– CV preparation, job search and interview technique, computers and IT skills and start your business
•
Grants:– Grant of €750 that could be used by employees for an external course of their choice
•
Coaching:– 14 internal coaches trained to provide one-on-one coaching to employees
Sustainability in Mine Closure (III) – Outplacement of Employees
Conclusion – Beyond Closure
Lisheen Mining Services Green Energy Hub
•
This is driven by the strong international demand for highly skilled and specialist workers in the underground mining industry•
Lisheen has a rich resource of underground mining talent•
When the mine ceases production, a number of Lisheen ex-employees could be used initially in other Vedanta operations•
There are also other consultancy and related opportunities for consideration•
Green Energy Hub attracting companies and agencies involved in energy conservation and recycling•
Concept aligned with Government strategy – specifically the Climate Action and Low Carbon Development Bill 2015•
Government support in the following areas would be beneficial in fully establishing the site and maximising its potential:– Extend Employment & Investment Incentive Scheme (“EIIS”)
– Extend definition of Relevant Trading Activity to include Green Energy Generation
– Establishment of a State-owned R&D facility dedicated to technology innovation in the areas of bio-energy and bio-refinery in line with new government’s Climate Change policy
•
High level task force established to actively pursue commercial opportunities that would potentially offer viable, long term, sustainable employment opportunities for ex-Lisheen employees and utilise existing site•
Two specific proposals have been identified at this point - further feasibility studies in progress– “Green Energy Hub”
