Branch: Finance

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CONCISE UPDATE ON ACID MINE DRAINAGE IN THE
WITWATERSRAND 17-18 April 2012
UPDATE BY Mr. MARIUS KEET
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Background / Introduction

• Inter-Ministerial Committee (IMC) on AMD first
  convened on 1 Sep 2010
• DWA and DMR DGs appointed a Team of Experts (DWA,
  DMR, CGS, CSIR, WRC, MINTEK and academic
  reviewers) to conduct a situation assessment
• Team of Experts (ToE) findings in Report Mine
  Water Management in the Witwatersrand Gold Fields
  with Special Emphasis on Acid Mine Drainage (IMC
  AMD Report) accepted by IMC
• Cabinet approved IMC AMD Report on 9 Feb 2011
• DWA tasked to implement certain recommendations
  in IMC AMD Report

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Background / Introduction

• DWA appointed TCTA as Implementing Agent on 6 Apr
  2011 to
• Install pumps for mine water extraction
• Construction of on-site treatment plants with
  option to refurbish existing plants
• Convey treated water to nearby watercourse
• Facilitate operation of pumps and treatment
  plants
• TCTA appointed PSPs to undertake Due Diligence on
  Wits AMD
• Due Diligence report finalized on 7 July 2011 -
  specified immediate and short-term solutions for
  Wits AMD

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Immediate solution

• Construction works nearing completion
• Stage 1 commissioning of treatment plant by 20
  April 2012 increase treatment capacity from 12
  to 24 ML/day
• Stage 2 commissioning by end-April 2012 achieve
  maximum capacity of 35 ML/day
• Agreements with Rand Uranium (treatment plant)
  and Mogale Gold (sludge disposal) to be finalised
  by end-April 2012

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Short-term solution

• Four (4) bids for short-term solution received by
  the TCTA
• Evaluation of bids to be finalized by 20 April
  2012
• TCTA to follow internal bid adjudication approval
  processes
• Based on current funding (R433 million), TCTA
  will recommend plausible options to DWA
• Current funding limitations may imply a phased
  (modular) implementation of short-term solution
• TCTA intend to award bid by mid-May 2012
• Construction projected to commence by end-May 2012

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Long-term feasibility study

• PSP team appointed in January 2012.
• Contract period 13 Months until 28 February 2013.
• Study objective
• Investigate and recommend a feasible long-term
  solution to the AMD problems emerging in the
  study area, in order to ensure long term water
  supply security and continuous fitness for use of
  Vaal River water.
• Study registered with National Treasurys PPP
  unit.
• Processes followed is flexible and will enable
  conventional implementation as well as
  implementation through Public Private Partnership
  or Public-Public Partnership.

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Long-term feasibility study (continue)

• Study status
• Team mobilised.
• Data collection continuous.
• Key stakeholders Identified engagement well
  advanced.
• Two Study management meetings held.
• Meetings held with key stakeholders for eg.
  Federation for Sustainable Environment,
  Universities, Rand Water, Treasury, etc.
• Study Stakeholder Committee meeting scheduled
  for early May and members invited.

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Long-term feasibility study (continue)

• Initial findings regarding Implementation
• Urgency of implementation of desalination of AMD
  is driven by the possible reduced assurance of
  supply in the Vaal River System by 2014/15
• Serious risk that Vaal River requirement will not
  be met if Conventional project implementation
  processes are followed after the completion of
  the Feasibility Study.
• Alternate Implementation methods will be needed
• ie parallel activities such as EIA, and rapid
  Procurement procedures, etc. will be required.
• Dedicated project officer unit in DWA to be
  considered to coordinate different activities
  during rapid implementation.
• Close coordination with National Treasury will be
  required for any PPP processes

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Long-term feasibility study (continue)

• First steps for Request for Proposals
• Call for registration is in the process to be
  issued in order to enable possible service
  providers to register interest in providing
  services such as
• Technology solutions,
• Funding for implementation,
• Providing Treatment processing Plant
• Providing Operations and Maintenance of AMD
  infrastructure
• Care is taken that this call for registration
  will not compromise prescribed procurement
  processes.

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Current Mine Water Status
Basin Mine water level (metres below surface) mbs Environmental critical level (ECL) (mbs) Est. date to ECL
Eastern Feb 2012588 290 Jun 2014
Central March 2012353 174 Jun-Jul 2013
Western At surface 160 ECL currently breached resulting in surface decant
ECL The highest level that mine water can be
allowed to rise in the mine void before adverse
environmental impacts can be detected