11. ENVIRONMENTAL MANAGEMENT

11.22 Dormant Operation – Hlobane Colliery

The defunct colliery, situated in Northern Natal, stopped production in 1998, having operated since 1898. Limited contract mining is still being undertaken, however, this will cease at the end of 2005. Mining on three Seams was undertaken by accessing the different Seams through a series of audits excavated into the side of a steep mountain and through a series of 29 open pits located at the foot of the mountain. A number of watercourses are present around the base of the mountain, with the streams on the southern side draining into the White Umfolozi River and those on the north draining into the Pongola River. The area to the east of the mine has been extensively mined out, while the surrounding area is being utilised for cattle farming.

11.22.1 Environmental Issues

Water management: The nature of the underground mining has resulted in the propagation of extensive cracks to surface. These cracks create a preferential flow path for water into the mine, resulting in significant decant from the adits. Hlobane is in the process of sealing the cracks along the stream on the top of the mountain. The mine has predicted that this will reduce ingress into the mountain and by implication decant, by about 50%. It is not expected that any significant acidity will be produced underground, however, the decant is saline with sulfate, calcium and sodium being the major contributors. Currently, decant is not treated and discharges straight to a watercourse. Evaporation control dams have been constructed on the northern side of the mountain, however, these have insufficient capacity to handle water made, resulting in a discharge to a watercourse. The open pits have been backfilled and the surface rehabilitated, however, uncontrolled decant is evident at the pits, particularly those lower down the slopes. Existing water uses have been registered and an application for a water use licence was submitted to DWAF in 2002. To date there has been no indication from the authorities as to when the licence will be issued.

Waste disposal: Three of the four discard dumps have been rehabilitated by capping with a clay layer, followed by top-soiling and vegetating. This rehabilitation has reduced seepage, however, saline water still emanates from the dumps. Although this is not treated, Hlobane has made a provision for water treatment. The provision made is for the construction of passive treatment reactors at each location requiring treatment. The fourth dump (Gus dump) is still operational and is being utilised by the contract miner for waste disposal. This is being operated as a co-disposal facility, with coarse discard used to contain the fines. During deposition, some compaction of the coarse fraction is undertaken to limit oxygen and water ingress. At closure this dump will require clay capping, top-soiling and vegetating. It is expected that this dump will decant, also requiring treatment. SRK is of the opinion that an adequate provision has been made for the closure of the dump.

Water treatment: The mine expects to implement passive water treatment, to remove the sulfates and iron from decant water. This technology is still in the development phase (bench and small pilot scale) and has not yet been tested on a large industrial site. Therefore, there is a potential risk that treatment may not successfully be converted to the large pilot and industrial scale. Should passive water treatment not prove successful at the industrial scale, there is a risk that Hlobane could be required to implement already proven technology for water treatment. It is estimated that if this is required, the costs would be in the order of ZAR150 – 200m for the volumes required.

Closure planning and costing: A closure plan has been submitted, however, approval has not been granted by the DME. It is understood that the lack of approval is due to internal bureaucracy, rather than the DME having a material concern with the plan. Although, no approval has been given, Hlobane is currently being closed, with closure activities being undertaken over the last seven years. It is expected that closure work will be completed by 2015. Assuming that passive water treatment proves to be successful on the industrial scale, the closure provision of ZAR49m for the mine is sufficient for the work for which it has been allocated.

11.23 Dormant Operation – Durnacol Colliery

The defunct colliery, situated in Northern Natal, stopped production in 2000, having operated for 75 years. Underground mining was undertaking by accessing the different Seams through two access shafts (for men and materials) and 10 ventilation shafts. The mine is located on the Steenkoolspruit, upstream of the dam previously known as Chelmsford Dam. The land around the mine is utilised for cattle farming and crop growth.

11.23.1 Environmental Issues

Water management: Limited groundwater modelling has been undertaken around the underground workings and initial indications suggest that these workings could begin decanting after approximately 75 years (2080). This has not been confirmed and the model is currently being refined. Decant is not expected to be acid, however, it is predicted that it will be saline with sulfate, calcium and sodium being the major ions. As the model has not yet been completed, Durnacol has not formulated plans to treat a potential decant. If the underground decants, there is a risk that the mine will be required to implement treatment (cost discussed under water treatment). Durnacol has not registered its existing water uses under the NWA, nor has it submitted a water use licence application.

Waste disposal: Six of the eight discard dumps have been rehabilitated by shaping, compacting, capping, top-soiling and vegetating. As the two remaining dumps are burning, progress on rehabilitation has been slow. The mine has now discovered a means of rehabilitating the dumps while they are burning and is currently busy on Dump 7. Seepage from the dumps is expected following rehabilitation, albeit at significantly reduced volumes. This seepage is not expected to be acid, however it will be saline. The mine has made a provision for the implementation of passive treatment, once the technology has been commercially developed (see discussion for Hlobane). Should passive water treatment not prove successful at the industrial scale, Durnacol could be required to implement already proven technology for water treatment. It is estimated that if this is required, the costs would be in the order of ZAR100 – 150m for the volumes required.

Closure planning and costing: Durnacol is currently being closed, with closure activities being undertaken over the last three years, although no closure plan has yet been submitted to the DME. It is expected that closure work will be completed by 2015. Assuming that passive water treatment proves to be successful on the commercial scale, the closure provision of ZAR81m for the mine is sufficient for the work for which it has been allocated.