Witwatersrand AMD

Parliamentary Portfolio Committee on Water & Environmental Affairs 28th June 2011

Overview of Activities by Gold Mining Companies active in the West, Central and Eastern Basins

828th June 2011John Munro – Spokesperson for the active companies

History of Witwatersrand Basins AMD

The Western Basin decants• 120 years of underground mining stopped in 1990’s• Workings filled with water - AMD decanted in 2002• Directives begin 2005• Attempts at apportionment failed 2005 to date• Active mines directed to :

– Install temporary treatment operations – Develop a long term sustainable solution

Today 6 years later – AMD remains very serious in all basins• Temporary operations continue by current companies• Mines have proposed a Long Term Solution• Central Basin is flooding->300m rise in under 2 years• Eastern Basin is flooding

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Working collaboratively towards a solution

WBEC CBEC EBEC

WBWC

Voluntary associations, sect 21 companies

Rand Uranium East Rand Proprietary Mines

Aurora ?

Mintails SA /Mogale Gold

Central Rand Gold ERGO

DRDGOLD/West Witwatersrand

Gold Mines

West Wits Mining Incorporated

WUC

The Big Picture

The impact of AMD

Unsaturated zone

Water table

Saturated zone

Ground water

Surface water

Critical environmental zone

Deep aquifer zone

Up to 40 Ml/d untreated overflow

Overview of activities by active companies• Premised that the AMD is essentially ownerless and is a legacy liability And• In light of this, on DWA direction, various companies undertook, “without

prejudice” to implement certain practical steps since 2005 :

• The Pragmatic approach:– Operate AMD partial treatment Plants, as a temporary measure– Support the development of a Sustainable Long Term Solution– Presented a Sustainable Long Term Solution to DWA and latterly the IMC- ToE– Worked extensively with Government, regulators and stakeholders on the

problem since 2005 right up to date

• The Legal Approach– Each company has however a specific unique factual and legal position too.

Companies have acted collaboratively where possible.– Extensive legal activity has proven fruitless so far.

Summary of Mining Company activities• 2002 – AMD decant commenced WB–emergency containment measures• 2004 – AMD Partial Treatment Plant commenced operations WB• 2005 – DWA issues first AMD directive• 2005 – Upgraded AMD Treatment Plant commenced operations WB• 2006/7 – Cooperative bodies formed (WBEC, CBEC etc)• 2007 – WUC mandated by WBEC/CBEC/EBEC established to develop long term solution• 2007,8,9 – WUC undertakes extensive studies, piloting and wide consultation• 2009

– DWA’s Water for Growth & Dev Document highlights WUC as “by far most attractive solution”– DWA takes lead in supporting WUC initiative– Government Task Team (GTT) provides “in principle” support for WUC– WUC submits Final scoping report- ready to submit WULA and Final EIA

• 2009 - Mining companies engage DWA at high level on advancing Long Term Solution• 2010 – Mining companies engage DWA on alternative solutions at Ministerial level• 2010 – Mining Companies again propose Long Term Solution in revised submission to address

perceived DWA objections• 2011 - Mining companies present proposals to IMC Technical Team

– Emergency measures– Long Term Solution– Mining companies engage with DWA/TCTA post release of IMC report

The Challenge remains• Large Scale AMD in the Central Wits goldfields

– “AAA priority issue” - Hon Min Sonjica - March 2010

• Legacy– The AMD is essentially ownerless– Litigation around apportionment and liabilities has been fruitless

• New Operators on the West and Central Basin– These Companies could not have created this problem– Burdening these companies with this legacy is unsustainable

– Mining companies have and will continue to work and engage constructively • Resolution is critical to the environment we share• Resolution is critical to the recovery of mining in Gauteng

• A Solution has been presented by the mining companies and WUC– Presented to Government in 2009/2010

• Economically viable and able to attract external funding – (reduces reliance on State and new mining companies)

– Rejected by DWA and in IMC report– Government now in control– Opportunity for mines contribution diminishing