Case Study: Zinc International

Transcription

1 Case Study: Zinc International Sustainability in New Project Management Gamsberg, South Africa Sustainability in Mine Closure Lisheen, Ireland 1 July 2015 Deshnee Naidoo CEO, Zinc International

2 Introduction - Zinc International 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 Skorpion Zinc Mine Skorpion Zinc Refinery 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 MT at 8.68% Zn, 2.37% Pb and 40g/t Ag Black Mountain Mine Namibia Windhoek P C P P Cape Town Botswana South Africa Johannesburg C 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 MIC P C Zinc/Lead /Silver Mine Zinc/Lead/Silver Project Corporate presence 2

3 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 Hunt 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 engagement Ireland C P C Zinc/Lead /Silver Mine Zinc/Lead/Silver Project Corporate presence The Lisheen Mine Ore resources are now depleted and Lisheen will cease production in September 2015, however Vedanta will continue to explore for zinc in Ireland 3

4 Gamsberg Project Overview 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 One of the largest zinc deposits in the world Sediment-hosted base metal deposit hosted by iron sulphide-rich pelitic rocks and iron formation Deposit is wholly contained within a steep-sided inselberg (isolated hill or mountain) Inselberg rises 250m above the general level of the Bushmanland plain Gamsberg within Bushmanland Centre of Endemism rocky inselberg succulents (~397 succulent species; 16 endemic; 4 restricted) 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 Sustainable development challenge for Vedanta was how to develop this exciting project and protect & preserve this unique ecosystem 4

5 Sustainability in New Project Management (I) Compliance & Beyond Legislation Department Approval Minerals & Petroleum resources Act National Environmental Management Act National Environmental Management Biodiversity Act National Environmental Management: Air Quality Act National Water Act National Environmental Waste Act Department of Mineral Resources (DMR) Department of Environment & Nature Conservation (DENC) Department of Water Affairs (DWA) Department of Environment Affairs (DEA) Amendment of Environmental Management Program Report Mine Works Programme and Closure plan Social and Labour Plan Amendment Environmental Authorisation for Mine and associated infrastructure (EA) Threatened or Protected Species Regulation 23 Air Emission License (AEL) Section 21 water use licence Section 20 (b) Waste management licence for both Hazardous and Non-Hazardous Waste (Waste License) 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 rehabilitation Our aim is to go beyond regulatory compliance 5

6 Sustainability in New Project Management (II) - Environmental Impact Mitigation Alternative Location & Design of Infrastructure AVOID Pit design set back zone from ecologically sensitive area Moved waste dump locations to avoid sensitive flora IMPLEMENTED Adjusted siting of processing facilities & access roads MINIMISE 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) INCLUDED IN DESIGN Signing of Biodiversity Offset Agreement - the first of its kind in South Africa Translocation of sensitive species to be utilised for concurrent rehabilitation of Gamsberg REMEDY Approximately plants species (supervision by expert horticulturalist and regional botanical specialist) WIP Continuous health monitoring of plants to avoid stress and OFFSET mortality No Net Loss objective for residual impacts Identification & securing properties nearby with similar biodiversity features Approx Ha identified as a potential offset Management of offset properties IUCN - Independent Review Panel to monitor progress OFFSET WIP Translocation of sensitive species to Aggeneys nursery 6

7 Level of influence Sustainability in New Project Management (III) - Stakeholder Engagement Stakeholder engagement approach Rigorous engagement process to understand our stakeholders needs Stakeholders were engaged early and have supported the project Ongoing involvement Ensure needs and concerns are understood and considered Obtain feedback on alternatives National offices: DMR, DENC, DEA, DWA Minority shareholders - Exxaro Close collaboration Decision making authority Partner with on each aspect of decision Input on design Provincial offices: DMR, DENC, DEA, DWA Internal stakeholders: Board of Directors, Executive Committees, Shareholders Stakeholders kept involved, informed and consulted as appropriate Inform Provide balanced and objective information Consult Obtain feedback on alternatives and/or decisions Surrounding Communities Local Municipalities NGO s Community-based organisations Employees Level of interest 7

8 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 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 scheme Safety: We continue to strive towards Zero Harm 8

9 Sustainability in Mine Closure (I) Design for Closure 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 ceases Comprehensive Closure Plan document which has been regularly updated Lisheen Mine was granted planning permission in 1996 and also became the first mine in Ireland to be granted an Integrated Pollution Control Licence 9

10 Sustainability in Mine Closure (II) Capping of Tailings Management Facility Tailings Management Facility ( TMF ) is the most significant post closure risk and requires the maximum attention to ensure it is managed correctly 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 contamination Successful livestock trials on rehabilitated areas of TMF Strategy Maintain phreatic water in rock cap to avoid oxidation of tails 10

11 Sustainability in Mine Closure (II) Capping of TMF: Progressive Rehabilitation ?

12 Sustainability in Mine Closure (III) Outplacement of Employees 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 Training: programme 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 Grants: business 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 To date 299 employees have attended some form of outplacement training since the programme started in December

13 Conclusion Beyond Closure 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 Establishment of a Mining Services company based at Lisheen Green Energy Hub 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 Lisheen Mining Services 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 13

14 Thank you